Oreos, KitKats Among Other Global Brands Fueling Indonesian Forest Fires
By Hans Nicholas Jong
The makers of Oreo cookies and KitKat chocolate bars are among the companies getting some of their palm oil from producers linked to the fires that have razed large swaths of land in Indonesia, a new report says.
The fires, started mostly to clear land for planting, have burned 8,578 square kilometers (3,304 square miles) as of the end of September — an area the size of Puerto Rico. Many of the companies on whose concessions they've occurred are affiliated with groups that supply palm oil to companies like Mondelēz, Nestlé, Unilever and Procter & Gamble (P&G), according to the report published Nov. 4 by Greenpeace.
Many of the companies involved across the supply chain have made sustainability pledges that commit them to not sourcing palm oil from growers linked to deforestation and/or burning. The new findings show they've clearly fallen short, said Annisa Rahmawati, a Greenpeace Indonesia senior forest campaigner.
"Companies have created a facade of sustainability," she said. "But the reality is that they source from the very worst offenders across the board. The companies responsible for the fires and those who financially benefit from them should be held accountable for these environmental atrocities and the devastating health impacts caused by the fires."
Land burning in an oil palm concession owned by PT Agro Tumbuh Gemilang Abadi (ATGA).
Elviza Diana / Mongabay-Indonesia
The report first looks at the plantation companies with the highest number of fires on their concessions between January and September this year, the largest areas of burned land on their concessions between 2015 and 2018, and/or those that have been sanctioned for fires.
Greenpeace identified 30 such groups, 21 of which are current members of the leading certification body for ethical sourcing of the crop, the Roundtable on Sustainable Palm Oil (RSPO). The RSPO has a strict "no burning" and "no deforestation" policy for its members.
Greenpeace then looked at whether the palm oil produced by these groups was present in the supply chains of major brands and traders. It found that all 30 of the palm oil producer groups most closely linked with the fires in Indonesia trade in the global market, supplying to leading consumer goods companies.
Four household names — Mondelēz, Nestlé, Unilever and P&G — are each linked to up to 10,000 fire hotspots, as they buy from palm oil producer groups with the highest numbers of fire hotpots in 2019. Mondelēz and Nestlé, the respective producers of Oreo and KitKat, among other brands, buy from 28 of these groups. Unilever buys from at least 27, and P&G from at least 22, according to Greenpeace.
These big brands also source from companies with legal problems or that are currently under public investigation for fires. Unilever, for instance, is supplied by eight plantation companies with court actions or sanctions against them, and 20 companies whose operations have been sealed for investigation as a result of the 2019 fires, according to the report.
Major palm oil traders are also still getting some of their supply from producers linked to the burning.
Wilmar, the world's largest palm oil trader, for example, is supplied by palm oil groups responsible for more than 1,400 square kilometers (540 square miles) of burned land between 2015 and 2018 and nearly 8,000 fire hotspots in 2019 to date.
Burned area in oil palm concession owned by PT ATGA.
Elviza Diana / Mongabay-Indonesia
Greenpeace's Annisa said burning-linked palm oil was being allowed to circulate through the global supply web because of weaknesses in the respective companies' monitoring of their supplies' provenance.
Some of the consumer goods companies failed to identify palm-fruit processing mills that were on their supplier lists as belonging to producer groups that they had in fact already banned. For instance, both Nestlé and Unilever's supply chain disclosures still show supply chain links to mills owned by Salim Ivomas Pratama, a member of Indonesia's Salim Group.
In a response to Greenpeace, Nestlé said that since April 2018, following a supply chain mapping process, "several mills have been suspended or otherwise removed. This includes ten upstream supply chain companies published on our website, like the Korindo Group and Salim. This underscores our commitment to achieving deforestation-free supply chains."
Unilever said it had "suspended sourcing from six of the indirect suppliers identified in the Greenpeace tables. These are: Austindo Nusantara Jaya [ANJ]; Best Agri Plantation; Citra Borneo Indah [SSMS]; Jaya Agra Wattie; Salim Group …; Sungai Budi/Tunas Baru Lampung. These six suspended groups are no longer in our Supply Chain and will not appear in the next scheduled update to our mill list."
However, they failed to attribute Salim Ivomas Pratama mills as belonging to the Salim Group, according to the report.
Nestlé says "Salim Ivomas Pratama isn't one group with Salim Group. But they're clearly one group," Annisa said. "This is amazing because it means [the brands] aren't aware of what's happening at the level of traders and producers. So most of them don't know. They just believe what they've been told by their suppliers."
This is also happening with traders such as Cargill, Annisa said.
Cargill's grievance tracker states that as of May 2018, Indofood, an arm of the Salim Group, is no longer in its supply chain. However, Cargill's most recent supply chain disclosure reveals purchases from "Gunta Samba" mills, which are part of the Salim Group but not classified as such by Cargill.
Greenpeace identified 332 fire hotspots within the concessions associated with the Salim Group (including subsidiaries IndoAgri, Indofood and IndoGunta) between January and September this year, and 78 square kilometers (30 square miles) of burned area from 2015 to 2018. Plantation company PT Kebun Ganda Prima, which had its concessions sealed off by the Ministry of Environment and Forestry this year, is also identified by Greenpeace as belonging to the Salim Group.
The Salim Group declined to respond to Greenpeace's fire hotspot and burn scar data on the grounds that "your information and data is neither specific nor detailed," according to the report.
A patrolling team hired by oil palm company PT ATGA to douse fires in the concession.
Elviza Diana / Mongabay Indonesia
Defining Producer Groups
Exposure to producer groups with links to environmental and social violations is common among big brands, but difficult to trace, the report says.
"[A]s a result of serious transparency failings, much of this exposure is not made explicit in their public supply chain disclosures, which require painstaking analysis to reveal the full extent of the companies' links to fires, deforestation, and human exploitation," it says.
This is in part because there's still disagreement over how producer groups are defined, Annisa said, even as many consumer goods brands and traders state that their sustainability policies are intended to apply to entire producer groups.
She said the definition should extend beyond formal parent-subsidiary corporate relationships because a large segment of the plantation industry, especially in Southeast Asia, has always been controlled by complex conglomerates owned by individuals and families.
Therefore, a group definition should take into account not only common ownership but also shared financial, managerial and/or operational control, Annisa said.
"So the definition of a group isn't firm yet, it's very elastic," she said. "But it's clear that if there's shared managerial and financial control, then it's a group. We also found many companies with the same addresses. Don't we include these companies in one group? So the definition of producer group has to be revised. Otherwise, companies can evade their responsibilities repeatedly."
Smoke rises from an oil palm plantation on a peatland in Sumatra.
Rhett A. Butler / Mongabay
‘No Business on a Dead Planet’
Annisa said there was an urgent need for drastic transformation in the palm oil industry, especially as the fires in Indonesia were contributing significantly to carbon emissions and hence climate change.
According to data from the Global Fire Emissions Database (GFED), this year's fires have released an estimated 465 million tons of carbon dioxide equivalent as of Oct. 22 — almost the entire total greenhouse gas emissions of the U.K. in a year.
"If the forests are gone, we can't do anything," Annisa said. "This is what [the companies] fail to realize. We all know that there's no business on a dead planet."
Reposted with permission from our media associate Mongabay.
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This week marks the official start of fall, but longer nights and colder days can make it harder to spend time outdoors. Luckily, there are several inspiring environmental films that can be streamed at home.
1. Kiss the Ground<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="ccc5f0c92a5603e68aec39e56b0db02a"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/K3-V1j-zMZw?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p><strong>Streaming On: Netflix</strong></p><p><strong>Premiere Date: Sept. 22</strong></p><p>Between <a href="https://www.ecowatch.com/wildfires-california-washington-oregon-photos-2647585008.html" target="_self">wildfires devastating the U.S. West Coast</a> and <a href="https://www.ecowatch.com/tropical-storm-beta-landfall-2647760268.html" target="_self">storms battering the Gulf</a>, the impacts of the <a href="https://www.ecowatch.com/climate-change/" target="_self">climate crisis</a> can feel overwhelming right now. <em><a href="https://kissthegroundmovie.com/" rel="noopener noreferrer" target="_blank">Kiss the Ground</a> </em>offers an alternative to all of the bad news by focusing on solutions.</p><p>The film, directed by Josh and Rebecca Tickell and narrated by Woody Harrelson, explains how we can heal the Earth through "regenerative agriculture," farming practices that draw carbon dioxide from the atmosphere and into soil as a way to restore soil health, which in turn boosts ecosystems and food supplies.</p><p>"<em>Kiss the Ground </em>shows how feasible it is to make these changes at a grassroots level immediately and make a truly substantive impact with low cost and easy to implement solutions," Executive Producer RJ Jain said in an email. "This is why I got involved."</p>
2. Public Trust: The Fight for America's Public Lands<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="5338f7a2931e356910026e5fd76fac56"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/jsKMTAaj_wQ?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p><strong>Streaming On: YouTube</strong></p><p><strong>Premiere Date: Sept. 25, 2 p.m. EDT </strong></p><p>This <a href="https://www.patagonia.com/films/public-trust/" target="_blank">award-winning documentary</a> tells the stories of Indigenous activists, journalists, whistleblowers and historians working to protect America's <a href="https://www.ecowatch.com/tag/public-lands" target="_self">public lands</a>. The film focuses on three political struggles: the shrinking of <a href="https://www.ecowatch.com/tag/bears-ears" target="_self">Bears Ears</a> National Monument in Utah, the mining of Boundary Waters Wilderness in Minnesota and the opening of the <a href="https://www.ecowatch.com/tag/Arctic-National-Wildlife-Refuge" target="_self">Arctic National Wildlife Refuge</a> to fossil fuel exploration.</p><p><em>Public Trust</em> was directed by David Garrett Byars and produced by Jeremy Rubingh. Patagonia Films, Patagonia founder Yvon Chouinard and actor Robert Redford are executive producers. It will be <a href="https://www.youtube.com/watch?v=OGjnIG7puzY" rel="noopener noreferrer" target="_blank">released</a> on YouTube in time for <a href="https://www.ecowatch.com/national-public-lands-day-2640656776.html" target="_self">National Public Lands Day</a>.</p><p>"Our country is fortunate to have millions of acres of public lands, including National Parks, Monuments, Wildlife Refuges and Wilderness set aside for future generations," Redford said. "Sadly, these lands that belong to you and me are under unprecedented threats from the greed of big corporations, eager to weaken restrictions in the pursuit of profits. Many of our current politicians are also to blame. <em>Public Trust</em> tells the story of citizens who are fighting back. It's a much-needed wake-up call for all of us who want to preserve our unique and wild cultural heritage."</p>
3. David Attenborough: A Life on Our Planet<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="156438a30836a765d7a92982545fc334"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/B_OFZvAd05Y?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p><strong>Streaming On: Netflix</strong></p><p><strong>Premiere Date: Oct. 4</strong></p><p>Beloved nature broadcaster <a href="https://www.ecowatch.com/tag/David-Attenborough" target="_self">David Attenborough</a> has spent his career introducing viewers to the wonders of our planet. In recent years, his footage of albatrosses swallowing <a href="https://www.ecowatch.com/tag/plastics" target="_self">plastic</a> in <em>Blue Planet II</em> has been credited with <a href="https://www.ecowatch.com/2018-fighting-plastic-waste-2624606566.html" target="_self">helping to ramp up</a> the global fight against plastic pollution. Now, in this <a href="https://www.wwf.org.uk/" rel="noopener noreferrer" target="_blank">World Wildlife Fund</a> (WWF)-produced <a href="https://www.attenborough.film/" rel="noopener noreferrer" target="_blank">documentary</a>, he reflects on the defining moments of his career and the devastating changes he has witnessed.</p><p><em>David Attenborough: A Life on Our Planet,</em> which was also produced by Silverback Films and directed by Alastair Fothergill, Jonnie Hughes and Keith Scholey, features an intimate conversation between Attenborough and Sir Michael Palin as the broadcaster reflects on his life and a career that took him to every continent on Earth. In addition to streaming on Netflix, the movie will be available in select theaters starting Sept. 28.</p><p>"For decades, David has brought the natural world to the homes of audiences worldwide, but there has never been a more significant moment for him to share his own story and reflections," WWF executive producer Colin Butfield said in a <a href="https://www.wwf.org.uk/updates/david-attenborough-life-our-planet" target="_blank">statement</a>. "This film coincides with a monumental year for environmental action as world leaders make critical decisions on nature and climate. It sends a powerful message from the most inspiring and celebrated naturalist of our time."</p>
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