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Orkla stops purchases from palm oil supplier

Orkla is committed to preserving rainforests and other natural forests with high conservation value, and we impose strict requirements on our suppliers of raw materials to avoid that the Group’s products contribute to deforestation. Orkla is a member of the multi-stakeholder initiative RSPO, and supports the organisation’s work to promote sustainable palm oil production.

IOI Group, the parent company of one of our suppliers, is involved in a complaint case involving deforestation and other serious issues. The case has been dealt with by the RSPO, which has decided to suspend the IOI Group’s certification. Despite the fact that Orkla has not received palm oil from the mills covered by the complaint, we regard it as serious. The issues covered by the complaint represent a violation of our policy for sustainable palm oil, and we have started a process to end our purchasing collaboration with the IOI Group. At the same time, we hope that the IOI Group will rapidly implement measures to improve the issues covered by the complaint and, more generally, establish a high standard for sustainable production.