Boston, MA 04/09/2014 (wallstreetpr) – Bowing to the incessant protests by the environmentalist organization Greenpeace, the FMCG Company, The Procter & Gamble Company (NYSE:PG) has decided to adopt a policy of no deforestation in sourcing its palm oil products. There had been a spate of protests against the multi nation earlier this year with the findings that the suppliers of palm oil are destroying the rainforests to cultivate the palms. It has pledged to ensure that the new and extensive deforestation policy is followed to the letter and there is no slacking or shirking the responsibility towards the environment. It also pledges to ensure traceability right to the supplier mills.
Instigating Circumstance
The incidents that paved the way for this kind of situation are the reports that Greenpeace released about the rainforest destruction using illegal means. The lands that were deforested were the natural habitats of many endangered animals, and it has severely affected the ecological balance of the areas due to it. The palm oil sourced from Indonesia seems to be the biggest reason for deforestation in that country. The report found that less than 10% of the total palm oil sourced by the company for its products; Head & Shoulders Shampoo and Gillette shaving gel are responsibly and sustainably sourced.
Corrective Measures
The Procter & Gamble Company (NYSE:PG) has decided to adopt a “no-deforestation policy” for its palm-oil supply system wherein it will make sure that the suppliers are sustainably harvesting the crop. The new policy sets the goals for a Roundtable on Sustainable Palm Oil (RSPO) which will be responsible for attaining a 100% sustainably sourced palm oil supply by 2015. It has decided to inculcate the policy throughout the chain by ensuring the traceability of the oil to the supplier mills. Also, it involves educating and training the small farmers to ensure implementation at the grass root level. The Procter & Gamble Company (NYSE:PG) is trading close to $81.70.
