Golden Agri probes palm oil mills linked to deforestation
The Star Online (01/10/2019) - KUALA LUMPUR: Golden Agri-Resources Ltd. is investigating two palm oil mills in Indonesia after a report from an environmental watchdog showed it may be sourcing palm fruit that’s illegally grown in a forest reserve.
Report from Rainforest Action Network shows some companies, including Golden Agri, are buying palm oil from mills that source fruit from illegally cleared rainforests within the protected Rawa Singkil Wildlife Reserve in Indonesia.
Golden Agri is seeking response to allegations from both mills and sending grievance teams to conduct on-site verification, says Anita Neville, senior vice president of group corporate communications.
Pending result of probe, GAR reserves right to take further action against the suppliers including suspension, Neville says in email.
Company currently procures from seven mills located near Rawa Singkil Wildlife Reserve; company says it’s working with these mills to implement time-bound traceability measures.
Golden Agri is world’s second-largest palm oil producer, with total planted area of 499,000 hectares in Indonesia. – Bloomberg