Tuesday, March 23, 2010

Nestle & Neste Oil Supplier IOI Group Accused of "Intentional Fraud" and Illegal Deforestation

Following work done by Greenpeace to expose the illegal deforestation perpetrated by Indonesian palm oil giant Sinar Mas, Friends of the Earth has released a report on Malaysian palm oil giant IOI Group, accusing it of illegal deforestation and "intentional fraud." This report follows major press coverage of Nestle's decision to drop Sinar Mas from its supply chain because of mounting evidence that the latter is engaging in irresponsible destruction of high conservation value rainforest.

IOI is a major supplier of palm oil. Amongst its high profile clients are Nestle, the world's largest consumer foods group known for its global brands such as Kit Kat, and Neste Oil, a leading oil refining and marketing company which recently built a major biofuels refinery in Singapore.

IOI expanded its operations to Indonesia in 2007 in order to meet the increasing demand. The company bought over 150,000 hectares of new concessions on Borneo and it is on these concessions that IOI is accused of illegally clearing rainforest, peat land and habitat of the endangered orangutans. IOI is also a palm oil intermediary in the sourcing of palm oil from other producers to meet the demand of its customers.

As a palm oil plantation developer and producer, IOI is accused of

"No approved environmental impact assessments ... Fraudulent statements ... Unauthorised plantation development in forestland ... Encroachment in forested land ... Fires on IOI concessions in Ketapang ... Land conflicts in the making"

As a palm oil trader, IOI is part of the "chain of destruction" from environmentally destructive palm oil producers to food products retailers:

(click image for full size picture)

Indeed, the pressure is mounting on the palm oil industry to put a halt to its corporate social hypocrisy. Two of the largest palm oil producers have been "Caught Red Handed" and it is time for the destruction to stop.

No comments: