On the one hand, Wilmar has taken several steps to improve its sourcing and increase traceability and transparency in its supply chains. In December 2013, it announced a comprehensive NDPE policy that required its suppliers to immediately cease any development of High Conservation Value and High Carbon Stock areas and of peat, regardless of depth. Then, in January 2014, Wilmar took a major step towards making its supply chain transparent to the public by becoming the first trader to establish an online dashboard showing information about all the company’s palm oil suppliers in Indonesia and Malaysia. Finally, Wilmar’s policy applies to all the commodities in which it trades. Wilmar has partnered with The Forest Trust to implement its policy.
On the other hand, Kencana Agri has recently engaged in deforestation in Sulawesi. Previously, in June 2018, Greenpeace and Chain Reaction Research both published reports linking Wilmar’s executives to ongoing deforestation via direct and material financial relationships. More recently, Wilmar has purchased palm oil from Peputra Group, whose plantations have cleared land for development.
In 2014, Wilmar endorsed the New York Declaration on Forests.