REPSA and Cargill's Commitment to Sustainable Palm Oil
June 03, 2016
Cargill is working with partners to build a 100-percent traceable, transparent and sustainable global palm oil supply chain by 2020.
As a global company, Cargill works with millions of producers and suppliers across a diverse portfolio of commodities. At any given time, we recognize events in our supply chains may compromise our stated commitments. In such instances, we strive to work with suppliers to correct these issues in an effort to drive lasting, positive improvements. Cargill is proud of its proven track record of driving industry change by working with suppliers, NGOs and other partners.
In November 2015, in response to reports from Reforestadora de Palmas del Petén, S.A. (REPSA) and other organizations, Cargill changed the terms of its contract with the supplier. Under the new terms, we required REPSA to implement a transparent action plan to meet our standards for business operations. Cargill’s continued sourcing from REPSA will be contingent upon the execution of a corrective action plan with key milestones to be completed over the next six months.
Cargill is requiring REPSA to take the following actions:
- Issue a strong “zero tolerance” policy on violence and intimidation. Cargill recognizes that community members in Guatemala are strained and grappling with loss. We condemn acts of violence and actions that violate the law. REPSA must publicly release an anti-violence and intimidation policy that is effective immediately.
- Strengthen environmental and social protections. Cargill is concerned about the economic, health and environmental impacts of pollution along the La Pasión River. We expect REPSA to fully participate in the legal proceedings on this matter. To further strengthen environmental and social protections, REPSA must issue a responsible palm oil policy and action plan that comply with Cargill’s palm policy no later than June 14, 2016. The policy and action plan must include commitments to sound environmental management, human rights, labor rights, respect for communities and ongoing transparency.
- Engage local communities and civil society groups. REPSA must work to rebuild trust by creating a participatory process in partnership with local communities and civil society. As a necessary first step, they must listen and respond to feedback from local leaders on the draft palm oil policy and action plan.
- Adhere to local and national laws. Cargill has outlined its expectation that REPSA will cooperate with ongoing government investigations and take the appropriate actions based on the outcomes of legal proceedings.
Cargill has engaged with REPSA and outlined these necessary actions. We have activated our grievance process and are committed to working with partners across sectors to build a more sustainable and transparent palm industry.
Published: June 3, 2016