Direct supplier grievances under review

As a global company, Cargill works with millions of producers and suppliers across a diverse portfolio of commodities. Cargill is proud of its proven track record of driving industry change by working with suppliers, NGOs and other partners.

At any given time, we recognize events in our supply chain may compromise our stated commitments. In such instances, we strive to work with suppliers to correct these issues in an effort to drive lasting, positive improvements. If a supplier remains non-compliant or is unwilling to cooperate, we will reconsider our relationship.

Below is an overview of direct supplier grievances currently under review and the actions Cargill is taking to ensure a more sustainable palm industry. 
 

Date Logged Subject Issue Under Review Actions Cargill Has Taken to Date Status
September 11, 2018 Industrias Chiqibul NGO accusation of:
  • Labor rights violation
  • Cargill received a grievance report by CONDEG on labor violations in Chiqibul’s operations.
  • Cargill officially submitted a letter to Chiqibul requesting for clarifications on the allegations.
  • Cargill received Chiquibul’s clarifications and have followed-up with request for evidence and verification (August 24, 2018)
  • We are now working with Chiquibul to identify suitable third-parties to conduct the required verification procedures and develop an action plan. (September 9, 2018)
Developing action plan
January 22, 2018 Felda Global Ventures

Public accusation of:

  • Deforestation of HCS forest in Asian Plantations Limited's Grand Performance concession.
  • Cargill reached out to FGV on the allegations. 
  • FGV committed to a stop-work order in Grand Performance while an independent assessment to identify HCS area will be conducted. FGV will exclude any HCS area if identified. Please refer to FGV's official statement for further information. (February 1, 2018)
  • FGV adopts the HCSA. This commitment was made as part of a wider set of updates to FGV's sustainability policy. Further details on this update is available here. (April 9, 2018)
Ongoing verification
April 18, 2017 Felda Global Ventures

Public accusation of:

  • Development on peat in PT Temila Agro Abadi
  • Cargill has reached out to FGV on allegations of HCV clearance in their Indoneisan subsidiary, PT TAA. Felda is appointing a third-party assessor to verify the allegations. Read more here. (May 2, 2017)
  • FGV committed to a stop-work order since April 22, 2017. Based on Cargill's last engagement with FGV on July 6, the stop-work order is still in place pending a board decision in August on FGV's Kalimantan operations.
  • FGV has enhanced their Sustainability Policy to reflect "No Peat" development for all new planting irregardless of depth and when land was acquired. FGV has also committed to rehabilitating the peat lands that were previously cleared in PT TAA. Read more here. Cargill will be meeting FGV in September to discuss these actions in further detail. (August 29, 2017)
  • FGV is engaging various stakeholders as part of preparing its action plan to address these issues. FGV will share their action plan with Cargill following which time-bound milestones will be developed.
  • Please refer to FGV's update on their "Kalimantan Peat Restoration Master Plan". Cargill will monitor FGV's implementation of the action plan to ensure timely execution. (January 12, 2018)
Implementation of action plan
February 8, 2017 Wilmar

RSPO Complaint Case:

  • Community land conflict in PT Permata Hijau Pasaman
  • Cargill engaged Wilmar on the progress of the RSPO case and the agreed action plan. Due to the agreed MoU between parties, external communication can only be made by RSPO and facilitator. As such, please refer to the RSPO complaints tracker for details. Wilmar has provided Cargill with the status of activities and is committed to complying with decisions made through the RSPO complaints system.
Monitoring implementation of action plan
November, 2016 Wilmar

Public accusation of:

  • Labor rights exploitation in Wilmar subsidiaries - PT Perkebunan Milano and PT Daya Labuhan Indah
  • Read more here.
  • Cargill engaged Wilmar on the reports and requested for Wilmar to share detailed action plans relating to the allegations. Cargill acknowledges Wilmar's detailed response through its grievance log and collaboration with BSR to assess the linked concessions. Wilmar has committed to transparently report all findings and action plans in relation to the allegations. Cargill will hold Wilmar accountable to its commitments.
  • Wilmar has partnered with Verite to help develop and implement a comprehensive labour programme
  • Wilmar's action plan can be found here.
Monitoring implementation of action plan
October, 2016 Prosper Group

Media report:

  • Deforestation by Bewani Oil Palms in PNG, alleged to be associated with Prosper Group (Malaysia)

Cargill has on several occasions raised the concern of alleged association of Prosper to Bewani Oil Palms in PNG. Prosper denies any form of association, stating that Bewani is an investment by its minority shareholder with no commercial links to the Group. We have requested for written acknowledgment that Prosper is not commercially linked to Bewani and Prosper will not market any of Bewani's products.

Ongoing engagement
July, 2016 IOI Group

RSPO Complaint Case:

  • Community land conflict at IOI Pelita
  • IOI is engaged through the RSPO Complaints System and is committed to working through an implementation plan that is agreed with the community. The company is publicly providing updates on its grievance log. Additional updates can also be found on the RSPO complaints tracker.
  • IOI received conditional endorsement from RSPO Complaints Panel on the resolution plan. A resolution plan socialization visit was conducted in July together with NGO and RSPO representatives. Please refer to IOI's statement for further details.
Monitoring implementation of action plan

April 17, 2016

Felda Global Ventures Alerted by FGV that their Indonesian subsidiary PT Citra Niaga Perkasa, encountered HCV land clearing.
  • FGV engaged Aksenta, a certified HCV assessor, to reassess the area for any remediation/compensation process.
  • Met FGV on July 22nd, 2016 to get clarification on the matter and was informed Aksenta’s ground investigation demonstrates clearance of area was carried out by contractors under local community pressure without knowledge of the plantation manager.
  • Cargill is monitoring FGV's ongoing RSPO compensation procedure and mediation process with local community. Updates on FGV's progress can be found here.
  • FGV commits to rehabilitating the peat lands that were previously cleared in PT CNP. Read more here. Cargill will be meeting FGV in September to discuss these actions in further detail. (August 29, 2017)
  • FGV is engaging various stakeholders as part of preparing its action plan to address these issues. FGV will share their action plan with Cargill following which time-bound milestones will be developed.
  • Please refer to FGV's update on their "Kalimantan Peat Restoration Master Plan". Cargill will monitor FGV's implementation of the action plan to ensure timely execution. (January 12, 2018)
Implementation of action plan
December 14, 2015 Reforestadora de Palmas del Petén, S.A. (REPSA) Public accusations of:
  • Human rights violations
  • Environmental degradation
Investigation by local government agencies into possible legal violations
 
  • Changed the terms of our contract with the supplier with a contingency clause for improving standards. (December 15, 2015)
  • Declared that continued sourcing will be dependent upon monitoring and implementation of an action plan. (May 11, 2016)
  • Issued a full statement on REPSA here. (June 3, 2016)
  • Regular monitoring of REPSA’s  implementation plans continue. REPSA’s first progress update can be found here.
  • Convened 90-day milestone meeting with REPSA management to review progress on action plan (September 2016)
  • Required REPSA to expedite improvements to drinking water purification system available to field workers to be complete by October 2016.
  • Collaborated with stakeholders to get REPSA to agree to participate in a community dialogue and consensus-building process to mitigate social conflict with stakeholders.
  • As part of policy review and community input process, collaborated with REPSA and third parties to add FPIC principles to REPSA’s policy.
  • Helped REPSA identify resources to conduct a labor audit of operations, and refine terms of reference, to be commenced by end of 2016.
  • Scheduled next milestone meeting with REPSA management set for December.
  • For further updates on Cargill's ongoing engagements with REPSA, please refer here
  • Cargill is monitoring REPSA's progress across the following outcomes:
    • Engaging CONDEG (grievance raiser) to reach a mutually-agreed upon resolution to the 2015 kidnapping incident
    • Reach a credible, mutually-agreed upon resolution to the November 2016 allegations of intimidation
    • Develop a Year 2 Action Plan that incorporates stakeholder input and has active stakeholder buy-in and support
    • Develop a detailed participatory roadmap, in consultation with local stakeholders, for advancing a broad stakeholder engagement process.
  • Update on REPSA (Friday, November 24, 2017)

    Effective immediately, Cargill is suspending business with Guatemalan palm oil supplier Reforestadora de Palmas del Petén, S.A (REPSA). The suspension is a result of REPSA’s failure to meet requirements associated with Cargill’s sustainable palm oil policy.

    In August 2017, Cargill called on REPSA to meet four critical milestones in response to environmental and social grievances raised by a coalition of international and Guatemalan NGOs. REPSA had to demonstrate meaningful progress in order to continue its sourcing relationship with Cargill. The deadline for REPSA to meet the milestones was October 31, 2017.

    Although REPSA made encouraging progress with the parties that raised these grievances and was actively seeking to foster trust with local communities and activists, it fell short on several key expectations.

    As a result, Cargill is suspending business with REPSA. We will not enter into any new purchase contracts until REPSA can meet the requirements of our sustainable palm oil policy.

    Cargill has agreed to reassess our business relationship with REPSA if the supplier demonstrates a renewed commitment to achieving our required sustainability milestones.

  • Cargill affirms our commitment to uphold the principles of our Statement on Human Rights across our supply chain and we hold our suppliers accountable to respect and protect people and human rights. We also expect all our suppliers to act in good faith while engaged in our grievance procedure. We will not tolerate any form of retaliation towards internal or external stakeholders such as employees, local communities and activists, including retaliation resulting from decisions undertaken by Cargill through our grievance procedure. Actions of such nature will lead to the termination of business relationship. (December 20, 2017)

Suspended
December 14, 2015 Felda Global Ventures Public accusations of:
  • Human trafficking
  • Labor violations
  • Received allegations of labor abuses on palm plantations. (July 26, 2015)
  • Initiated direct contact with FGV.  (July 27, 2015)
  • Endorsed RSPO’s independent investigation conducted by Accreditation Services International. (September 14, 2015)
  • Engaged with FGV senior management on the formation of a Sustainability Response Team and partnership with a third-party auditor. (November 2015)
  • Informed by FGV on withdrawal of all upstream RSPO certification on May 3rd 2016.
  • Met with FGV on June 9, 2016 to advance progress on outstanding issues.
  • Met with FGV on July 22nd, 2016 to get updates on action plan progress. Implementation plans addressing grievances are underway. Updates on FGV's progress can be found here.
  • Shared with FGV on Cargill’s experience developing and managing a grievance process (October 21st, 2016).
  • Regular monthly meetings continue to take place to share updates and feedback.
  • Cargill is working with FGV to develop a set of time-bound milestones that will address remaining issues (December 14, 2016).
  • Participated in FGV's ‘Oil Palm Labor Workshop’ which aimed to develop recommendations on recruitment fees, passport retention and child labor. More details can be found here.
  • Cargill is monitoring FGV's progress in the following areas:
    • Passport retention
    • Developing a grievance procedure
    • Developing a social management system. More details can be found here.
  • FGV has developed a draft action plan covering their entire operations on five focus areas: forced/bonded labor, ethical recruitment, employment contract, wages (minimum wage), safety & health around institutional strengthening, policy commitment, due diligence and stakeholder engagement. FGV has also partnered with SUHAKAM, the Human Rights Commission of Malaysia, to implement, monitor and verify their action plan. Cargill will be reviewing FGV’s action plan once NGO consultations have been completed. (July 2017)
  • FGV releases its progress update on its Social Compliance and Human Rights (SCHR) Initiatives. (October 2017)
  • FGV provides a detailed update on its SCHR action plan with associated timelines. (April 9, 2018)
Monitoring implementation of action plan

 

 

 


Last updated: October 2018

`