Nestle is reportedly removing Astra Agro Lestari (AAL), an Indonesian palm oil producer, from its list of suppliers. The decision comes after the latter was accused of many rights abuse.
Nestle SA vowed to sever its ties with AAL that allegedly abused land rights and caused harm to the environment. With the accusations that the palm oil maker is facing, the Swiss consumer goods and food company is under pressure to ditch the Indonesian company as one of its suppliers.
According to Bloomberg, Nestle told its direct vendors to make sure that palm oil from three sources that have connections with Astra Agro Lestari Tbk will never be part of its supply chain in the future. This information was sent to the non-profit Friends of the Earth through a letter that was also seen by the publication.
The document was said to be dated Sept. 28, and since it will require some time to fully get rid of AAL from its supply chain, Nestle said it expects to complete the process before 2023. Astra International Tbk did not immediately respond to a request for comments regarding Nestle’s statements and decision.
“We take these allegations against Astra Agro Lestari very seriously,” part of the letter that was signed by Nestle’s head of sustainable sourcing, Benjamin Ware, reads. “We have been closely following the situation and these three subsidiaries in question have been on our grievance list for several months.”
The KitKat chocolate maker’s spokesman said it is currently working with fellow companies, local governments, and non-governmental organizations as part of its plan dedicated to sustainable livelihoods, conservation, and commodity production. The company added it is also forming a new independent third-party grievance system to focus on and review complaints.
Meanwhile, Danone, Procter & Gamble Co. have also agreed to drop AAL after the organizations advocating for the protection of the environment also sent them a letter asking them to cut ties with Astra Agro Lestari.
“Nestle and other multibillion-dollar consumer giants, who for years have pledged to protect forests and respect human rights cannot simply walk away from these abuses,” Friends of the Earth International said in a statement. “These companies now have a monumental opportunity to ensure grievances are redressed, conflicts are resolved, and justice is delivered to communities on the frontlines of violent extraction and the climate crisis.”


Sanofi’s Efdoralprin Alfa Gains EMA Orphan Status for Rare Lung Disease
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices
Trump Administration Reviews Nvidia H200 Chip Sales to China, Marking Major Shift in U.S. AI Export Policy
Nike Shares Slide as Margins Fall Again Amid China Slump and Costly Turnaround
Delta Air Lines President Glen Hauenstein to Retire, Leaving Legacy of Premium Strategy
Asian Markets Rebound as Tech Rally Lifts Wall Street, Investors Brace for BOJ Rate Hike
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey
Maersk Vessel Successfully Transits Red Sea After Nearly Two Years Amid Ongoing Security Concerns
Union-Aligned Investors Question Amazon, Walmart and Alphabet on Trump Immigration Policies
noyb Files GDPR Complaints Against TikTok, Grindr, and AppsFlyer Over Alleged Illegal Data Tracking.
Citi Appoints Ryan Ellis as Head of Markets Sales for Australia and New Zealand
Blackstone Leads $400 Million Funding Round in Cyera at $9 Billion Valuation
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data
Oil Prices Rebound as Trump Orders Blockade of Sanctioned Venezuelan Tankers
Canada Signals Delay in US Tariff Deal as Talks Shift to USMCA Review
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 



