Bunge – Green Tigers Index Rankings

SCORE

27

Bunge is a large global agricultural trader based in White Plains, New York that buys and sells significant volumes of palm oil. The company has purchased almost half of its palm oil from a single supplier, Sarawak Oil Palm Berhad (SOP). SOP has cleared extensive areas of peatland forests in Malaysia’s Sarawak state, one of the most carbon-dense ecosystems in the world. SOP has worked with other Sarawak producers to undermine enforcement of Wilmar’s No Deforestation policy, contributing to Sarawak’s status as the epicenter of peatland clearance in the world. The state cleared an incredible one-third of its peatlands between 2005 and 2010 alone, with SOP at the center of these activities.

In October 2014, Bunge announced a zero-deforestation policy for its palm oil supply chain. The policy does not address the use of hazardous pesticides, such as those banned by the Rotterdam Convention and paraquat, and it does not make any commitments to address mill effluent, a globally significant source of methane pollution. Bunge continues to buy significant volumes of palm oil from Sarawak, which has yet to address the serious issues associated with palm oil expansion in the state. However, Bunge has committed to end its partnership with suppliers that are out of compliance with its new policy.

POLICY

1.A

The company has a forest policy for soy produced, traded or processed that applies to its global operations including all subsidiaries and joint ventures. The company also requires its suppliers to follow the policy.

YES

1.B

The policy excludes the sourcing of  raw materials or products originating from natural forests including both primary and secondary forests.

NO

1.C

The policy specifically excludes the sourcing of raw materials or products originating from High conservation Value (HCV) areas.

NO

1.D

The soy policy explicitly requires the company to comply with the Brazilian soy moratorium.

YES

1.E

The company specifically commits to not sourcing from other sensitive land area such as savannahs (for instance the Brazilian Cerrado).

NO

1.F

In Brazil  the company commits to only buy from farms enrolled in the Rural Environmental Registry (CAR).

NO

1.G

The company has pledged to use (or uses) a third party for compliance verification of its policy.

NO

1.H

The company has developed and published a non-compliance procedure that outlines thresholds for the suspension and/or cancellation of contracts with suppliers in breach of the policy.

NO

1.I

The company has committed to developing a traceability system that allows of soy back to the farm of origin.

NO

1.J

The company specifically commits (and requires its suppliers to do so) to respect the rights of Indigenous and local communities to give or withhold their Free, Prior and Informed Consent (FPIC) to development on their lands.

YES

1.K

The company has programs that support farmers or small holders  in its supply chain with support that goes beyond purely financial considerations and the soy supply chain but addresses longer term development.

YES

1.L

The company has programs that support farmers or small holders  in its supply chain with support that goes beyond purely financial considerations and the soy supply chain but addresses longer term development

NO

IMPLEMENTATION & TRANSPARENCY

2.A

Date by which the company aims to achieve full traceability to farms for its entire supply chain.

NO

2.B

The company or the relevant third party publishes detailed processes and results of the policy verification assessments.

NO

2.C

The company has established and published an accessible and transparent grievance and dispute resolution mechanism.

NO

2.D

The company reports on its progress towards meeting its policy goals at least annually against measurable indicators.

HALF

2.E

The company makes names or locations of the farms or silos in its supply chain public.

NO

3.A

Points are deducted for the following (occurring since January 1, 2015). There is public evidence that since January 1, 2015 the company has in its own operations not met criteria 1.C, or  1.E  (or uses soy from protected areas). Or the company has sourced from suppliers that have not met these criteria. Or the company had its RTRS   (or other certification) license revoked or suspended since that date. Or there is evidence of significant workers rights violations or social conflicts

NO

See all of the rankings of major palm oil and soy companies on their adherence to forest conservation requirements on the Green Tiger and Green Jaguar index.