News

Cargill suspends IOI business

27 Jul 2016

Cargill has announced that it will suspend business with IOI by not entering into any new purchase contracts until IOI Group can meet its requirements and comply with the company’s sustainable palm oil policy.

Cargill has announced that it recognizes that IOI Group has taken steps to address concerns raised by the Roundtable on Sustainable Palm Oil (RSPO) and civil society, saying that its leadership has actively engaged IOI Group’s management to push the company to take urgent action.

IOI Group has yet to deliver a responsible sourcing policy or a detailed sustainability implementation plan to meet its requirements, Cargill said. Cargill will suspend business by not entering into any new purchase contracts until IOI Group can meet its requirements and comply with the company’s sustainable palm oil policy.

Cargill said that it calls on IOI Group to take further action to resolve the charges that resulted in its RSPO suspension and address longstanding environmental and social grievances. Cargill notes that it continues to monitor IOI Group’s progress and will reassess its business relationship as the supplier demonstrates a commitment to sustainable practices.

Cargill says it is committed to working across its supply chain to ensure a sustainable palm industry. At any given time, the company said it recognizes that events in its supply chains may compromise its stated commitments, and hold itself and its suppliers accountable in an effort to drive lasting, positive improvements.