SIME Darby Plantation Bhd (SDP) has refuted the claims of a recent Reuters article that major palm oil buyers are seeking to block the company from their global supply chain.
The article entitled Buyers Shun Major Malaysian Palm Oil Producers after Forced Labour Allegations linked the drastic action to a move by the US Customs and Border Protection (CBP) to ban imports from SDP and FGV Holdings Bhd– two of the world’s biggest palm oil producers – last year over the alleged use of forced labour during production.
On the contrary, SDP said its major customers have expressed support and are working closely with the plantation firm to better understand the substance of the allegations that have been made against it.
“Many of our customers have committed to sustainable sourcing and thus truly appreciate and understand our efforts to ensure our operations are managed well, sustainably and responsibly,” SDP pointed out in a media statement.
Moreover, SDP said it remains committed to addressing the withhold release order (WRO) issued by the US Customs and Border Protection (CBP).
“In the absence of useful information from the original complainant to assist us, we have already conducted internal assessments of our entire Malaysian operations,” the company noted. “Our findings do not reveal any systemic issues in our operations.”
Nevertheless, SDP reiterated that it will also engage independent assessors to ensure that the company leaves no stone unturned in its quest to secure a completely safe and nurturing environment for all its workers regardless of their gender or nationality.
“Meanwhile, we have maintained regular engagements with all our customers to ensure they are updated and appraised of all developments,” added SDP.
Among others, the said Reuters article cited chocolate maker Hershey as saying that its North American suppliers have removed all Sime Darby volumes in compliance with the US order.
Elsewhere, the article said some buyers including Nestle, Unilever and Hershey had suspended FGV since 2018 after industry watchdog Roundtable on Sustainable Palm Oil (RSPO) found “exploitative” labour practices in the company. – Feb 11, 2021
