As one of the world’s leading food and beverage companies, a steady, sustainable supply of crops is central to our business. We will continue to work with our suppliers, peers, civil society, and others directly and through partnerships by: Combined Circular to Pioneer Foods Shareholders, Advertising and Marketing to Children and School Sales, Public Political Engagement, Political Activities and Contribution Guidelines, Endorsement of Multistakeholder Principles and Initiatives, Roundtable on Sustainable Palm Oil (RSPO) Manual on Best Management Practices for Management and Rehabilitation of Natural Vegetation Associated with Oil Palm Cultivation on Peat. In the intervening years, RAN said, PepsiCo remained silent and refused to take any concrete action. Based on our Traceability to Plantation Protocol, 31 suppliers representing 41% of our volume reported traceability to plantation. Greenpeace says palm oil-fueled deforestation remains rampant in countries like Indonesia and Malaysia because global consumer brands like Unilever, Nestlé and PepsiCo continue to buy from rogue . They’re just getting started, Indonesian farmers refuse to budge for train line through karst landscape, UNESCO calls for closure of road running through World Heritage park in Papua, Indonesia’s Gorontalo road runs into forest, swerves environmental checks. Instead, it identified the perpetrators as residents of a nearby village, Kuala Seumayam, and a palm oil company called CV Sawit Mandiri, which it said had occupied parts of the concession. These will evolve over time as targets are met and as our understanding of the issues and how to tackle them develops. RAN’s Lierley acknowledged the encroachment problem, but said it did not absolve SPS II and PepsiCo of any responsibility. The objective of the group was to support members in developing and implementing approaches to sustainable landscapes. In 2018, PepsiCo also participated in the revision of the 2013 principles and criteria (P&C’s) which strengthened the RSPO Standards including on smallholder inclusion. PALM OIL AND RAINFORESTS. Approximately 20% of our volume came from high risk geographies. Production, Protection, Inclusion in Aceh Tamiang. PepsiCo has knowingly stayed in business with the Salim Group, a company tied to reckless palm oil producers responsible for the destruction of nearly 10,000 hectares of Borneo's pristine peat forests--an . "PepsiCo has repeatedly stated that we are absolutely committed to 100 percent sustainable palm oil in 2015 and to zero deforestation in our activities and sourcing," the company said last year after an advocacy organization released an ad slamming Doritos, a PepsiCo subsidiary, for its lax palm oil policy. Our annual volume, based on 2020 data, is approximately 1.25 million metric tons, with 90 percent of our total volume being certified to one of the following standards in 2020: CERFLOR, CSA, FSC, PEFC, or SFI. That willingness to take action on the part of PepsiCo comes nearly four years after RAN began reporting on the alleged deforestation inside SPS II’s concession in 2014. Traceability in certain supply chains can be challenging, however, as the suppliers we procure from may source the commodities from multiple other suppliers and producers. For our latest report, we have moved to an online format to reduce duplication and allow for regular updates to our approach and programs. A focus on forest management standards. Together they develop, adopt, and disseminate new tools and advance new “pre-competitive” mechanisms to accelerate private sector learning on responsible land rights practices. Others question the likelihood of outsiders carrying out much of the deforestation inside the concession, citing the presence of heavy machinery in the cleared areas. PepsiCo continues its attempts to greenwash its links to deforestation and human rights abuses with the announcement of pet projects but the fact is the company continues to cut costs by sourcing Conflict Palm Oil to make its products. • Assuming a leadership role in developing industry-wide approaches to deforestation monitoring and responses, It is used primarily in our snack food manufacturing because of its wide availability and shelf stability. In 2019, PepsiCo, joined other major companies including Wilmar, Colgate Palmolive, Nestlé, Procter & Gamble, and Nestlé and to work with BSR on a program to protect the rights of children living in oil palm plantations. We also implemented a training program in both English and Spanish and maintain a helpdesk. In 2019, the partners made significant progress, including the development of a draft five-year plan for coalition support to the landscape. The program’s objectives are as follows: Of the approximately 7,000 oil palm producers in Mexico, 95% of palm oil groves are less than 30 hectares and represents approximately 85% of national fruit production. A statement on the role and expectations of satellite monitoring in identifying and addressing non-compliances in our supply chain. Indonesia is the largest producer and exporter of palm oil globally. The program will run through 2020 and includes developing a Child Protection and Safeguarding Implementation Manual, as well as a series of capacity-building workshops for palm oil producers. PepsiCo Focus of Major New Palm Oil Campaign by Rainforest Action Network, Union of Concerned Scientists, Others. PepsiCo uses palm oil primarily in snack manufacturing in Asia and other markets. For more information, please see our Statement on Working Together to Preserve the Leuser Ecosystem. Demand for palm oil is also expanding, with the edible demand now complemented by added demand from biodiesel producers. The Oil Palm is the definitive reference work on this important crop. The TFA is a multi-stakeholder partnership platform, initiated to support the implementation of private-sector commitments to remove their deforestation from their palm oil, beef, soy, and pulp and paper supply chains. A report released by Rainforest Action Network (RAN) in April 2017, titled " Profits over People and the Planet, Not 'Performance with Purpose'; Exposing PepsiCo's Real Agenda, " revealed PepsiCo's connections to Conflict Palm Oil suppliers, which are driving deforestation, climate emissions, and human and labor rights abuses across . Over the past century, powerful food and beverage companies have enjoyed unprecedented commercial success. The Arbor Day Foundation provides a wide variety of opportunities for partners to engage in tree planting. The purpose of the Group is to expand and leverage private sector action to secure community land rights. The farms enable the demonstration of the positive impact of sustainable agricultural practices, including nutrient management, productivity, quality, and livelihoods. "These updates to our policy and approach reflect our ongoing determination to have a positive impact through additional actions that contribute to a sustainable palm oil . In the United States, however, very little palm oil is used because we rely on other edible oil crops that are widely grown in North America. To help address this challenge, and with an ambition to further expand the existing capacity-building component of the Smallholders Program, nine demo farms were launched in 2019. In February 2018, PepsiCo committed to participate in Oxfam’s FAIR Company-Community Partnerships project in Indonesia. Years of forest clearing and fires have ravaged SPS II’s concession, leaving it with only 30 percent of its original 130 square kilometers (50 square miles) of intact forest cover as of April this year. We engage our direct suppliers who source from the companies at the center of the complaint to: At the end of 2019, a total of 18 grievances were registered in our system, including legacy grievances. Our approach is set out here. They refuse to see the destruction palm oil is having on our planet and for the people and animals within it. Add this to PepsiCo's conflict palm oil file: we've released a report that ties the snack food giant to massive-scale deforestation in Indonesia, home to our precious orangutans. We work with suppliers throughout our value chain through commercial relationships, collaborative initiatives, and specific programs with our direct suppliers. Found insideThe deforestation-free movement (or zero-deforestation ) has emerged recently in a context of lower state control, globalization and pressure on corporations by nongovernmental organizations (NGOs) through consumer awareness campaigns, ... At the supplier level, we are engaging with Oleofinos, PepsiCo’s main supplier, to improve transparency and traceability of Oleofinos palm. FAIR is an acronym that stands for 1) Freedom of choice; 2) Accountability; 3) Improvement of benefits; and 4) Respect for rights. PepsiCo has repeatedly stated that we are absolutely committed to 100 percent sustainable palm oil in 2015 and to zero deforestation in our activities and sourcing. Palm oil suppliers to the world's largest brands, including Unilever, Nestlé, Colgate-Palmolive and Mondelez, have destroyed an area of rainforest almost twice the size of Singapore in less than three years, according to the report. Our strategy articulates our specific role and the actions we intend to take in our own supply chain and to catalyze wider change. The new palm oil commitment opens by stating "PepsiCo is committed to doing business the right way and to realizing zero deforestation and respect for human rights in all our company-owned and -operated activities and global supply chains." Having about the same legal knowledge as an average PepsiCo customer, which is to say practically . "Instead, it has repeatedly attempted to spin misleading information and take half-steps. During 2019, significant progress was made on the first two phases and in November 2019, PepsiCo and Cargill hosted a meeting where the companies agreed to move forward with the IRF as a tool to comprehensively report on progress across the supply base. Since our last palm oil report, we have continued to participate and invest in positive impact programs, including: PepsiCo is a founding member of the Coalition for Sustainable Livelihoods (CSL). Jul 7, 2021 Palm oil: TotalEnergies washes itself so green. It is part of an annual reporting cycle, which also includes Annual Communication of Progress to the RSPO. PepsiCo's stipulation that its palm oil suppliers and business partners should have no link to deforestation since the end of 2015 could be retrospectively checked through satellite monitoring . We assess risks in our supply chain and the palm oil industry more generally to identify geographic areas and issues that have the highest likelihood of incidence of noncompliance. Thousands of concerned consumers are emailing, tweeting, and Facebooking PepsiCo's CEO, Indra Nooyi, to respond to the question: "Deforestation from palm oil is a leading driver of climate change. Ensure an efficient, inclusive, and collaborative supply chain; Secure sustainable palm oil through increased implementation of best agricultural practices; Improve the quality of life for producers and protect their land rights, while also preserving forests and biodiversity; and. Tools were developed on the allocation process, including guidance on creating and communicating volume profiles. Engaging with civil society through formal meetings and ongoing dialogue, contributing to our updated policy, grievance review, and our approach to independent verification. In 2019, PepsiCo joined other major palm oil producers and buyers to support and fund the development of a new, publicly available radar-based forest monitoring system known as Radar Alerts for Detecting Deforestation (RADD). "It applies to all palm and palm kernel oil that we use globally and covers our entire supply chain, from direct suppliers to production sources at the group . PepsiCo procures milk primarily in support of our Russian dairy business, and it is sources in-country from a broad network consisting of hundreds of dairy farmers. In Riau, PepsiCo is one of seven companies that are working together on a landscape program for sustainable palm oil in the districts of Siak and Pelalawan. Plantations built on deforested land have allegedly been used to supply palm oil to scores of household brands that also include McDonald's, Mars, Kellogg's and Procter & Gamble, according to . Will ‘ropeless’ fishing gear be seaworthy in time to save endangered whales? Working with Proforest (and organizations with expertise in managing natural resources sustainably). The coalition will focus on systemic change underpinned by the two pillars of its theory of change – supply chain management and integrated land use approach – developed with significant input from both supply chain companies and other stakeholders. 100% of our Tier 1 suppliers’ mill traceability data has been independently verified. With this information, producers can quickly mobilize follow-up actions on the ground and work to improve the sustainability of commodity supply chains. As the global palm oil industry was fast approaching a tipping point it was high time PepsiCo worked to realize zero deforestation in its operations and supply chain. Higher performing suppliers (in the top 25%) were approached to partner with us on industry leading protocols and practices, such as traceability to mill verification and NDPE policy compliance through participation in the NDPE IRF (see Risk Management section for more details). Greenpeace investigation claims palm oil supplier to major brands behind further deforestation April 2018 Pepsi cuts off Indonesian palm oil supplier over labor, sustainability concerns March 2018 Unilever lays bare palm oil supply chain in rare industry move February 2018 PepsiCo: trashing rainforests for 450,000 tons of palm oil a year . Broad coalition identifies PepsiCo as key laggard still purchasing large quantities of palm oil tied to deforestation, human rights abuses and climate pollution; public encouraged to take action on YEARS…. They say Vale wants their land, ‘Carving up my country’: Land clearing reignites fracking debate in Western Australia, They safeguarded nature, but now Malaysia’s Mah Meri face eviction for an eco-resort, The Kichwa woman fighting drug traffickers and loggers in the Peruvian Amazon, Rights groups demand end to Cambodia’s persecution of green activists, With Indigenous rights at stake in Brasília, a territory is attacked in Paraty, Brazil’s Bolsonaro vowed to work with Indigenous people. Our most significant influence on the protection of forests is through our sourcing of paper- and wood-based products and raw agricultural materials, particularly palm oil. Found insideThis groundbreaking work of first-rate journalism compels us to examine the connections between the choices we make at the grocery store and a planet under siege. In 2020, roughly 54% of our paper volume was from recycled sources, and we estimate that about 4% of our supply came from non-certified virgin fiber. From 2001 to 2018, over 9 million hectares of natural forest were lost. In 2020, our global purchase of palm oil was approximately 451,100 metric tons (MT). See. In 2020, we will continue to address existing and new grievances, as well as complete the review of our grievance process to ensure it is meeting its objectives, as outlined below.