International food companies, Unilever, Mars, Kellogg’s and Nestlé have ceased trading with Malaysia’ IOI Group because its sustainability certification for palm oil has been suspended.
The sustainability certifying body, the RoundTable on Sustainable Palm Oil (RSPO) had suspended its certification because of environmental concerns following a complaint by a consultancy, Aidenvironment.
The RSPO warned its members in early April that there could be disruption to palm oil supplies because of the suspension. But this week the Financial Times (May 26, 2016) reported that major food companies had stopped buying palm oil from IOI, one of Malaysia’s largest suppliers. The RSPO hopes that IOI will be able to address the environmental concerns identified and seek a renewed certificate.