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Indonesian palm oil producers make sustainability progress

March 10, 2016

Indonesian palm oil producers make sustainability progress

posted by Andrew Allen

Two of Indonesia’s largest palm oil producers have taken major steps towards promoting sustainability in their supply chains.

The world’s second largest palm oil producer, Golden Agri-Resources (GAR), has mapped its supply chain to 489 individual mills in Indonesia.

The company said it now knows the location and other details of all mills which supply crude palm oil and palm kernels to its processing facilities in eight different locations in Indonesia.

In 2014 GAR extended its sustainability policy to its entire supply chain.

“We see a clear industry trend where buyers want more information on the impact of the palm oil they purchase,” said Paul Hickman, head of global vegetable oils and oilseeds, trading at the Singapore-based company.

“If we can trace the oil back to its source we can engage more effectively with the suppliers and share what we have learned in our own operations to help them improve their environmental and social practices.”

Read more at Chartered Institute of Procurement & Supply.

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