Wilmar International Ltd plans to cut ties with Indonesian suppliers that clear land with illegal fires after blazes engulfed Singapore in a record haze. Wilmar, which bans burning on its own plantations, relies on third parties for more than 90% of the crude palm oil for its refineries.
- While Indonesia and Malaysia ban burning to clear or manage acreage, 17 timber concession and 10 palm oil plantations had land affected by fires in Indonesia, according to June 24 data from the non-government World Resources Institute (WRI).
- Wilmar dealt with some of the companies identified by WRI on the assurance they did not burn, the company said in an e-mailed response to Bloomberg News.
- "Should they be found to be involved in burning to clear land for cultivation, we will stop doing business with them," Wilmar said. The firm's buying policy states suppliers must comply with all local and national laws and regulations. (Bloomberg)