Palm Oil Giant Wilmar promises to improve practices after complaints
Friends of the Earth: ‘The ultimate proof will be the practices on the ground’ - After a joint complaint by Friends of the Earth and Indonesian Non Governmental Organisations (NGO’s), palm oil giant Wilmar International has admitted violating its own policies on plantation development in Sambas, Indonesia. Wilmar has announced measures to improve its sustainability performance. Friends of the Earth welcomes this step from Wilmar, but will continue to monitor Wilmar closely. ‘The ultimate proof will be the practices on the ground and Wilmar’s interaction with local communities’, says Anne van Schaik, from Friends of the Earth Netherlands (Milieudefensie).
In a reaction made public today, Wilmar admits its shortcomings in three cases in Sambas, where policies concerning land acquisition, compensation matters and environmental impact assessments were violated. Wilmar says it regrets that land clearing and planting activities took place based on irregularly issued plantation operating permits. Milieudefensie is disappointed that Wilmar does not acknowledge its role in illegal logging.
In a report by Milieudefensie and Indonesian partners in July 2007, three Wilmar plantations in Sambas, West Kalimantan,(1) had been found to be involved in land right conflicts, working without approved environmental impact assessments, lacking due consultation with local communities and being involved in deforestation and forest fires.(2) With the findings of the report, Milieudefensie approached palm oil buyers and financiers of Wilmar International, and started the first procedure at the newly established grievance panel from the RSPO.
Concerning grievances of affected communities in Sambas, Wilmar says it will abide by a mediation process from the Compliance, Advisory and Ombudsman Office (CAO) of the International Finance Corporation, one of Wilmars financers, to find a resolution acceptable to all parties. The IFC has send its ombudsman to Sambas following a complaint letter from several local and international NGO’s to the IFC.(3)
To address the problems, Wilmar says it has set up a committee, regional sustainability departments and audit- and monitoring procedures to make sure the principles and criteria on sustainable palm oil as defined by the RSPO will be adhered to down to operational level. Special measures would be taken to protect biodiversity and high conservation value forests. According to Wilmar, no plantation development will take place without free, prior and informed consent of local communities.
Wilmar is one of the biggest players in the palm oil sector worldwide, with a land bank of 573.000 hectares and far ranging plans to become a major supplier of palm oil for the upcoming biodiesel market. Two-thirds (370 000 ha) of its land bank held in Indonesia has yet to be cleared and planted. Friends of the Earth is concerned about these expansion plans. Anne van Schaik: ‘We are determined to prevent further deforestation, peat land degradation and displacement of indigenous peoples for the expansion of monoculture oil palm plantations’.
Source: http://www.insnet.org/ins_headlines.rxml?id=6058&photo=
