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.”


Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals
Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch
CK Hutchison Launches Arbitration After Panama Court Revokes Canal Port Licences
SpaceX Pushes for Early Stock Index Inclusion Ahead of Potential Record-Breaking IPO
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
Hims & Hers Halts Compounded Semaglutide Pill After FDA Warning
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock
SpaceX Prioritizes Moon Mission Before Mars as Starship Development Accelerates
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil 



