November 16, 2018

Unending peat exploitation linked to three TFT members

( - Nestlé remains one of the global kings of deforestation and peat destruction given that its palm oil supply chain still consists of suppliers which continue to source from companies eradicating Indonesia’s forests and exploiting its peatlands.

One example of ongoing evidence pointing to the destructiveness of Nestlé’s palm oil supply chain are its indirect suppliers, in this case ADM and Bunge, which are still sourcing palm oil from Mulia Sawit Agro Lestari (MSAL), a palm oil supplier that persists in exploiting peatlands for its palm oil plantation expansion. 

A subsidiary of MSAL, PT Persada Era Agro Kencana (PEAK), has been found to still be clearing and draining peat forests in Central Kalimantan’s Katingan regency, which according to IUCN data form the habitat of the critically-endangered Bornean orangutan.

A previous report by (Oct 17) disclosed that the MSAL company carried out new peat development from June to October this year, and has resumed this practice in another location in its concession.

The spatial team uncovered this evidence using the following Planet Explorer images (Sep-Nov 2018) which show the new peat development by the MSAL company in the other concession location.

Ongoing failures from TFT members

Nestlé, ADM and Bunge are members of The Forest Trust (TFT), all of which have failed to apply best practices in cleaning up their palm oil supply chains.

TFT, which often claims to have an unrivaled business transformation approach, has also often revealed itself to be a mere spectator to the relentless deforestation and peat exploitation associated with its members. 

In fact, the business transformation boasted by TFT has simply served to provide Nestlé with a carte blanche to continue profiting from a supply chain tainted by deforestation and peat exploitation, in this case through ADM and Bunge. 

The operations of the three TFT members, which are also members of the RSPO, clearly confirm that whether palm oil supply chains are direct or indirect in nature, they in no way reflect efforts to end their links with deforestation and peat destruction.

Furthermore, Unilever and PepsiCo, which are not TFT members but are part of the RSPO, also still retain supply chains tied to ongoing peat exploitation by the MSAL company.