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Allegations Of Forest Destruction Against Company That Supplies Neste With Palm Oil
calendar11-04-2011 | linkHelsingin Sanomat | Share This Post:

11/04/2011 (Helsingin Sanomat) - The Roundtable on Sustainable Palm Oil (RSPO) organisation has suspended the granting of new certificates to the Malaysian company IOI, which is an important supplier of palm oil for the Finnish Neste Oil. The palm oil is used by Neste to produce biological diesel fuel.

The purpose of the RSPO’s certificates is to certify that palm oil is produced in a manner that does not harm people or nature.
     
RSPO announced on its website that IOI has been accused of misdeeds such as illegal destruction of forests and the draining of wetlands that are important habitats for endangered species. The company also has some land disputes with local residents.

Reuter’s news agency reports that the accusations are linked with IOI’s expansion of its palm plantations in Malaysia on the island of Borneo in Sarawak State.

RSPO gave IOI until May 2nd to respond to the allegations. If the response does not satisfy RSPO, the group could take more severe action. The organisation warned that it could restrict the right of IOI to use the RSPO certificate. It was not stated specifically if the restriction on the use of the certificate would apply only to new plantations, or would it also affect the old ones.
     
RSPO is an organisation that promotes environmentally friendly palm oil production, and it has as members palm oil producers, users, and various civic organisations.

IOI says that it is working with RSPO to find an acceptable solution. It also said that the part of its production which has already been certified is so extensive that there will be enough certified palm oil for its customers.

IOI also says that false accusations have been made against it.
     
Neste Oil’s Security and Environment Director Simo Honkanen says that Neste Oil is keeping track of developments. “When RSPO decides on the matter, we will draw our own conclusions. It is very good that these kinds of matters are made public.”

“We use only palm oil that is produced in a sustainable manner. Our suppliers need to have a certificate or a certification programme”, Honkanen says, adding that Neste will not buy palm oil from plantations that are involved in the present dispute.