Nestlé did not explain in detail the reasons behind its decision, but AAL has been criticised by environmental groups for alleged land grabbing and human rights abuses.
Nestlé does not buy palm oil directly from AAL but receives the product via suppliers.
On Saturday, Nestlé confirmed to Keystone-SDA the details of an earlier Reuters report. In a statement, the Swiss company said it has instructed its suppliers to “take the necessary steps to ensure that palm oil from three AAL companies no longer enters our indirect supply chain.”
The Swiss company said that by the end of 2021, 91% of its palm oil was classified as deforestation-free and 71% as sustainably produced. If a supplier fails to correct identified problems, “we take decisive action.”
“Nestlé and other consumer giants now have a monumental opportunity to ensure grievances are redressed, conflicts are resolved, and justice is delivered to communities,” the environmental NGO Friends of the Earth told Reuters.
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