Nestle, Mars, Mondelez & Hershey’s Using Illegal Conflict Palm Oil

Halloween Candymakers Including Nestle, Mars, Mondelez and Hersheys Caught Red-Handed Using Illegal Conflict Palm Oil Grown in ‘Orangutan Capital of the World’

Nestle Mars Mondelez

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Undercover field investigations expose major chocolate brands Nestle, Mars, Mondelez and Hershey’s violating own policies by continuing to source from lowland rainforests of Indonesia’s Leuser Ecosystem

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San Francisco - Just weeks after a major undercover field investigation by Rainforest Action Network (RAN) exposed global food brands as sourcing illegally grown palm oil from within Indonesia’s nationally protected Rawa Singkil Wildlife Reserve, RAN is releasing fresh evidence of deforestation in the region connected to many of the same brands, this time through yet another supplier. The new investigation, released today, shows that a company named PT Laot Bangko, a palm oil supplier to brands including major Halloween candymakers Nestle, Mars, Mondelez and Hersheys, has continued to destroy forests in the globally important lowland rainforests of Indonesia’s Leuser Ecosystem until at least as recently as August 2019. This is despite the fact that each of these companies has publicly committed to No Deforestation No Peatland No Exploitation (NDPE) policies to prevent exactly this sort of violation.

Nestle, Mars, Mondelez and Hershey's respond

“This Halloween, Nestle, Mars, Mondelez and Hershey's can not give any guarantees that their Halloween candies are not driving the destruction of the last lowland rainforests of the Leuser Ecosystem,” said Robin Averbeck from Rainforest Action Network (RAN). “Some of the world’s last habitat for critically endangered Sumatran orangutans is being cleared to produce Conflict Palm Oil, and these brands are buying it.”

Nestle, Mars, Mondelez and Hershey's have each responded to the initial scandal but have failed to immediately suspend sourcing from the rogue palm oil mills the report exposed. Just this past week, tens of thousands of concerned consumers have contacted the companies demanding they publicly cut ties to illegal Conflict Palm Oil and stop all sourcing connected to rainforest destruction in the ecologically rich Leuser Ecosystem.

Campaigners say the response from Nestle, the world’s largest foodmaker, stands out from the other chocolate giants, Mars, Mondelez and Hershey's, as those companies lack explicit commitments to protect the Leuser Ecosystem from deforestation for palm oil and adequate deforestation monitoring systems.

"Nestle's commitment to prioritize the Leuser Ecosystem as a priority ecosystem for its forest protection strategy is a welcome move,” said RAN’s Averbeck. “But it is urgent that Nestle immediately stop sourcing from rogue mills connected to the destruction of Indonesia’s rainforests, and intervene to halt any deforestation identified via its monitoring system."

Impact on orangutans

This area of wet, lowland rainforest has been dubbed the ‘orangutan capital of the world,’ as it is home to the highest population densities of critically endangered orangutans anywhere. This includes a culturally distinct subpopulation of a few thousand individuals which demonstrate social structures and tool-using behaviors unique from all other orangutan populations. The Singkil-Bengkung region also contains some of the best remaining breeding habitat for critically endangered Sumatran rhinos, elephants and tigers.

The health of the Leuser Ecosystem’s Singkil-Bengkung landscape — comprised of the Rawa Singkil Wildlife Reserve, the Kluet peatland and the connecting lowland rainforests — is internationally significant because of its expanses of ancient, deep, carbon-rich peatlands, which are among the most valuable and effective natural carbon sinks on earth. Conversely, when drained and cleared as documented here, these peat soils transform into carbon bombs that emit catastrophic levels of pollution into the atmosphere for years on end.



About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver