7.11.2016 Press release

The NGO Finnwatch published a follow-up report today in which it reviews the development of working conditions and human rights in the Malesian IOI Group’s palm oil plantations. The follow-up report is a continuation for a report made in 2014 that concerned the palm oil purchases of Finnish companies. The report is a review of the development in the farms and among others the solutions of Paulig Group.

Within Paulig Group we are committed to working for sustainable sourcing and developing our supply chain with respect to human rights and the environment. That is why we think it is very important that Finnwatch has done these reports and brought up its findings. We feel that a sustainable supply chain is a common goal for us.

Certified palm oil is used in Snack Food division’s Poco Loco products that are produced in Belgium and sold mainly in Central Europe. In the report “Laws of the Jungle” that was published in 2014 Finnwatch brought forward shortcomings that the representatives of the organization had noticed in the plantations of the division’s Malaysian palm oil supplier IOI Group. Snack Food division took the matter seriously and asked for a possibility to audit the farms that they had purchased palm oil from. Despite several requests this was not allowed. As this is against Paulig Group’s responsible sourcing principles, it was decided to end cooperation with the company in question in 2015.

What is the future of palm oil in Paulig Group?

The usage of palm oil in our products decreases year by year. Alongside the sustainability related topics also nutritional viewpoints, such as the quality of fat, are considered within Paulig Group. We aim to find solutions that make our products as delicious and healthy as possible – without compromising on quality or sustainability.

Since the beginning of 2016 the World Foods & Flavouring division has only used sunflower and rapeseed oil mix in their Santa Maria products. This has been done first and foremost with the health aspect in mind as consumers are wishing for products with less saturated fats.

For the same reason Snack Food division has during the last years increasingly shifted to using sunflower oil instead of palm oil. Today over a half of Poco Loco products are produced using sunflower oil. The goal is that almost 75% of used oils are sunflower and rapeseed oils in 2017. Paulig Group’s Snack Food division uses only certified palm oil in its products.

Paulig Group is a member of the Roundtable for Sustainable Palm Oil (RSPO). RSPO is the world's leading certification system for palm oil that founded on the base of co-operation between WWF, companies and producer organizations in 2004.

More information

Leena Miettinen, Corporate Responsibility Manager, Paulig Group, tel. +358 40 562 7302

7.11.2016