Greenpeace's damning report on Malaysian palm oil supplier IOI, just one month after its membership of the Roundtable on Sustainable Palm Oil (RSPO) was renewed, could be damaging for the certifier, according to one sustainability consultant.
Greenpeace activists are blocking palm oil imports from Malaysian trader IOI at Rotterdam harbour in protest at the firm's involvement in forest destruction, peatland fires and use of child labour.
IOI took just four months to regain its certification by the Roundtable on Sustainable Palm Oil (RSPO), but convincing major customers to take it back could take much longer, according to experts and NGOs.
Cargill has suspended new business with IOI and called on the palm oil supplier to “take further action to resolve the charges that resulted in its RSPO suspension and address longstanding environmental and social grievances”.
The damage caused by IOI’s deforestation and peatland drainage is “far greater” than that detailed in the complaint that led to the Roundtable on Sustainable Palm Oil suspending the supplier back in April, says Greenpeace.
Palm oil supplier IOI Corporation Berhad has ditched plans to sue the Roundtable on Sustainable Palm Oil (RSPO), saying it has “engaged” with customers, NGOs and the RSPO to resolve the matter.
There were more twists and turns this week in the controversy surrounding the IOI group, which was suspended by the Roundtable on Sustainable Palm Oil (RSPO) last month.
Four of the world’s biggest food companies have moved swiftly to cease trading with Malaysian firm IOI after it fell foul of sustainable palm oil rules, but NGOs say it’s too little too late.