Palm oil in top brands’ products linked to rainforest destruction in Papua New Guinea, investigation finds
Global Witness investigation finds slew of big brands and global financiers are directly or indirectly linked to human rights abuses and destruction of critical carbon sinks in Papua New Guinea
Leading consumer goods brands stand accused of driving deforestation of climate-critical rainforests and fuelling human rights abuses, after a major investigation revealed how top firms work with companies in Papua New Guinea that rely on child labour, bribery, and destructive environmental practices.
The two-year investigation by Global Witness assessed the activity of three Papua New Guinea palm oil operations, which trade with high profile consumer goods firms such as Kellogg’s, Nestle, Colgate, Danone, Hershey’s, PZ Cussons, and Reckitt Benckiser.
In addition to revealing a litany of human rights abuses at the East New Britain Resources Group, the Rimbunan Hijau Group, and Bewani Oil Palm Plantations Ltd, the investigation found all three companies were involved in the destruction of tropical rainforests that provide a vital defence against climate change and are a hotbed for biodiversity.
Bosses from the major logging and palm oil firms were captured on tape telling undercover reporters they use child labour, had paid officials to evade tax, and assault locals suspected of opposing palm oil plantations.
The report reveals that two of the three companies have received direct and indirect funding from international investors, including Maybank, OCBC Bank, BlackRock, the California Public Employees’ Retirement System, the Norwegian Pension Fund, and Robeco Institutional Asset Management B.V, while the palm oil and its by-products was sold on to a raft of major brands in the ‘Global North’.
Lela Stanley, senior investigator at Global Witness, said the investigation highlighted how governments and financial institutions were prioritising the interests of a small number of firms over the wellbeing of the planet and their communities.
“Papua New Guinean communities have managed and protected their forests sustainably for countless generations,” she said. “This investigation shows they are being sold out by their own government and global financial institutions in favour of a small number of highly destructive companies, with devastating human rights and environmental consequences.”
Papua New Guinea has the planet’s third largest remaining rainforests, after the Amazon and the Congo. The tropical forest is among the most biodiverse in the world and provides a lifeline to rural communities, but it is under major threat by the country’s expanding palm oil industry. The national government is aiming to drive a 10-fold expansion in palm oil cultivation to 1.5 million hectares by 2030, up from 150,000 hectares in 2016.
Global Witness today called on the government of Papua New Guinea to immediately investigate the companies implicated in the report and mandate all palm oil operations meet industry best practices with regards to ecosystem protection and avoided deforestation, community and human rights, and transparent business dealings.
Stanley stressed the revelations proved that a voluntary approach to tackling environmental and human rights abuses in global supply chains is not working.
“This investigation is yet further confirmation that the global financial system is broken – the business-as-usual, voluntary approach of past years has led us into climate crisis,” she said. “Firms like BlackRock talk a big game on their commitment tackling climate change and protecting human rights, yet our revelations show its money is ultimately financing the destruction of climate-critical forests, the use of child labour, and other human rights abuses.”
Global Witness has called on the businesses, banks, and investors named in the report to work with communities affected by the human rights abuses and environmental destruction in Papua New Guina, arguing the firms needed to provide “redress and remedy for their role in contributing to and legitimising abuses”.
The NGO also said foreign governments – including the UK government – needed to introduce new rules that require businesses and financiers to identify, mitigate, and report on deforestation and forest-related human rights risks and impacts in their supply chains and financing.
“It is increasingly urgent that governments legislate to prevent supply chains and global financiers bankrolling deforestation and human rights abuses,” Stanley said.
BusinessGreen reached out to BlackRock and all the consumer goods firms implicated by the findings.
A spokesperson from Kellogg’s said the allegations in the report were “very concerning” and stressed that East New Britain Group had never been one of its direct suppliers.
“When we first learned of these grievances in July, we immediately contacted three of our suppliers who indirectly purchased from ENB and they have all confirmed ENB is no longer in their supply chain,” the spokesperson said. “If we receive a valid complaint, we take immediate action to verify and then follow our publicly available Grievance Procedure, if warranted.
“Kellogg is committed to working with our suppliers to support the production of sustainable palm oil from sources that are environmentally appropriate, socially beneficial and economically viable. Anything less is not acceptable.”
