UPDATE: Golden Agri Response To Palm Oil Grievance Body 'Acceptable'
October 29 2010 - 3:17AM
Dow Jones News
A grievance panel of the Roundtable on Sustainable Palm Oil said
Friday that a response by plantation operator Golden Agri-Resources
Ltd. (E5H.SG) and its units to environmental concerns is
"acceptable."
Golden Agri's efforts to comply with RSPO standards could help
the company's efforts to win back major palm oil buyers, such as
global food giants Nestle SA (NSRGY) and Unilever NV (UN) and
U.S.-based fast food chain Burger King Holdings Inc. (BKC), that
suspended sourcing of palm oil from a Golden Agri unit in response
to claims that the company is involved in deforestation.
Golden Agri-Resources and its units, Indonesia-based PT Sinar
Mas Agro Resources & Technology (SMAR.JK) and PT Ivo Mas
Tunggal, have submitted detailed plans for compliance with the
sustainability body, and the grievance panel will monitor progress
on agreed action plans on a quarterly basis, the RSPO and Golden
Agri said Friday in a joint statement.
"The panel has evaluated the companies' responses, and considers
them acceptable at this stage of the grievance procedure,"
according to the statement. "An initial progress report (is)
scheduled to be received on Jan. 15, 2011."
Golden Agri, which currently isn't a member of the RSPO, has
been asked to submit a full application for membership by Nov. 8,
it said. Golden Agri's two units are already members of the RSPO, a
consortium of palm producers, environmental groups and food
companies.
Unilever suspended purchases of palm oil from PT Smart in
December following claims of deforestation by Greenpeace. The food
giant's palm oil requirements accounted for 3% of Smart's total
annual palm oil sales of around US$1 billion. Nestle followed suit
in March while Burger King was the latest company to cut purchases
in September.
Executives at Unilever, Nestle and Burger King couldn't
immediately be contacted for a comment Friday.
Responding to Golden Agri's compliance plan, Indonesia-based
Bustar Maitar, Southeast Asia forest campaigner at Greenpeace,
said: "Greenpeace will be continuing to press Sinar Mas to
implement standards which are strong enough to protect natural
forests, biodiversity and the global climate."
"RSPO standards alone do not provide that assurance at this
time," Maitar said in an email.
"Working closely with the RSPO to implement the action plan
agreed by all parties further demonstrates our commitment towards
sustainable palm oil production and to achieving RSPO certification
for our plantations and mills," Peter Heng, managing director of
communications and sustainability at Golden Agri, said in an
email.
-By Gaurav Raghuvanshi and Shie-Lynn Lim; Dow Jones Newswires;
+65 64154 154; gaurav.raghuvanshi@dowjones.com