Regarding abuses related to the $88 billion palm oil industry, Rachel Barre, who is L'Oreal's sustainable sourcing manager, acknowledged her company is far removed from the plantation level. And one palm oil industry observer noted it is impossible to delink one company's supplies from the continued deforestation of the industry as a whole.
Since, along with plantations, small farmers produce 40% of the world's palm oil, abuses at the source of this raw material are widespread. Polluting smoke from the fires used to clear palm oil plantations in Indonesia and Malaysia spreads far beyond local areas and deforestation robs the world of endangered wildlife.
In lengthy supply lines, problems associated with land acquisition, working conditions, pay, pollution, and deforestation are found where plantations, logging, mines, and textile factories source the food and goods sold to consumers thousands of miles away. Indonesia represents a good example. President Joko Widodo presides over a country of 13,000 islands. He is winning public support for a construction boom in needed roads, railways, bridges, airports, and power plants that the previous government of Suharto failed to address. Yet, projects are hindered by laws and regulatory agencies associated with each project, skilled labor shortages, land acquisition in heavily populated areas, lack of private investment necessitating growing public debt, and lax worker safety requirements.
Pressured by distant retailers to cut costs and speed up delivery, the clothing manufacturers in China, India, and Indonesia that work with viscose/rayon fibers become major polluters. On one hand, the silk alternative is heralded as a sustainable option, because it is made from the fast-growing, soft wood of beech, pine, and eucalyptus trees. But the process of turning wood pulp into viscose requires sodium hydroxide, sulfuric acid, and carbon disulphide, a chemical linked to heart disease, birth defects, mental health problems, and cancer. Air and wastewater exposed to these chemicals harm factory workers, local residents, and fish.
What can be done?
1. Organizations, such as the Roundtable on Sustainable Palm Oil, Palm Oil Innovation Group, Forest Stewardship Council, Proforest, Fair Trade Federation, and Sustainable Apparel Coalition, assemble experts to monitor industry conditions, devise best practices, and develop certification programs. Some organizations create logos consumers can use to identify responsible producers.
2. When governments are approached to grant large scale land concessions, they are in a position to require plantation owners to obtain (without manipulation by offering jobs before the concession is granted) consent from local communities, to assure protection of traditional rights to land that is owned, occupied, or used to produce food needed by the local population, and to agree to penalties for violating stipulated working conditions and environmental protections.
Olam International's palm oil operation in Gabon offers some insight. The company holds a government lease on land for 15 years. Although those who wanted to farm outside the concession could continue to do so, 95% of the local population took jobs with Olam. The company invests $1.6 million a month in community healthcare and development. Yet it took pressure from environmental groups to cause Olam to announce even a one year moratorium on deforestation.
3. Before they suffer bad publicity, companies at the end of supply chains need to realize consumers are becoming better informed about the dangers associated with certain products and industry practices. The need to end pressure on suppliers who cut corners to meet demands and to designate someone to root out untrustworthy intermediaries suppliers may hire to avoid responsibilities is likely to grow. Touting a palm-oil free product became a contested, competitive selling claim in a Belgian court. The supermarket chain, Delhaize, advertised its Choco spread was better for the planet and health than Ferrero's Nutella, a spread that contains palm oil, Although Ferrero successfully argued against Delhaize's claim, the case showed how some marketers have begun to recognize consumers are growing wiser about everything involved with the food they eat and the products they use.
4. With technical, financial, and other support from governments, private sources, and non-profit organizations, more small scale entrepreneurs need opportunities to enter supply chains.
5. To ensure their survival, critically endangered and endangered wildlife, such as gorillas, chimpanzees, bonobos/pygmy chimpanzees, saolas, and orangutan, often need the protection of "no-go zones" and wildlife corridors in concession territories. Palm oil plantations in Cameroon and the Republic of the Congo, for example, already have destroyed chimpanzee and gorilla habitats. Company and government wardens and scientists need to prevent poaching and to monitor animal health in land concessions.
Of course, abuses can be avoided by shortening or controlling supply lines. The missionary nuns who grow and sell tomatoes to their local communities in Africa short circuit the supply chain (See the earlier post, "Celebrate Uplifting Efforts to Promote Self Reliance in Africa."). The nonprofit organization, serrv (serrv.org), finds artisans and farmers in areas of great poverty in countries such as Ghana and South Africa, helps them with marketing suggestions to make their goods more attractive in developed countries, and sells these products through catalogs and the retail stores they own.
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