* Says replaces Sinar Mas with another supplier
* Follows similar move by Unilever
* Greenpeace releases report on Nestle suppliers' practices
By Catherine Hornby
AMSTERDAM, March 17 Nestle NESN.VX, the
world's biggest food group, said it had stopped buying palm oil
from Indonesia's Sinar Mas due to concerns about rainforest
destruction, following a similar move by consumer goods firm
Nestle's announcement came after Greenpeace released a
report on Wednesday which looked into how the company was
sourcing palm oil.
Switzerland's Nestle, which uses the edible oil in its food
products such as KitKat bars, said it had replaced Sinar Mas
with another supplier for further shipments after conducting its
own investigations into its palm oil supply chain.
"We will continue to pressure our suppliers to eliminate any
sources of palm oil which are related to rainforest destruction
and to provide valid guarantees of traceability as quickly as
possible," Nestle said in a statement.
It added that it had only bought from Sinar Mas for
manufacturing in Indonesia, and no palm oil bought from Sinar
Mas had been used by Nestle for manufacturing in any other
Environmentalist group Greenpeace highlighted the practices
of Nestle's suppliers' and their impact on rainforests,
peatlands and the habitat of endangered orangutans in their
report on Wednesday.
Anglo-Dutch Unilever (ULVR.L) (UNc.AS), the world's largest
user of palm oil, said in December it had suspended purchases
from Sinar Mas on similar concerns. [ID:nGEE5BA0Z3]
Greenpeace alleges that Sinar Mas, Indonesia's biggest palm
oil producer and the second biggest in the world, has been
responsible for widespread deforestation and peatland clearance,
practices which release vast amounts of carbon dioxide.
Sinar Mas was not immediately available for comment on
Wednesday. It has previously denied that its activities are
damaging for the environment and in December it invited Unilever
to inspect its operations. [ID:nJAK445723]
Nestle has said it aims to only use palm oil that is
certified as sustainable by 2015.
(Reporting by Catherine Hornby; editing by James Jukwey)