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Asian Agri

SUBJECT

Eyes on The Forest (EoF) published a report, ‘No One is Safe’, on 6 April 2016, highlighting that Asian Agri purchased illegal FFB grown inside Tesso Nilo National Park and government-protected areas. EoF’s report can be found here.  RGE was named alongside Asian Agri in the report.  RGE is the management service company of Asian Agri with no direct involvement in our operations.

PROGRESS

EoF requested Asian Agri provide comments on a draft of their report and offered their recommendations on dealing with such cases. Asian Agri sent a response to EoF on 2 February 2016 stating:

  1. Asian Agri had conducted an investigation and its findings showed that the supply of illegal FFB mentioned in the report occurred a year ago, between January – April 2015. During our internal verification, which took place before we were made aware of EoF’s findings, we immediately took action against suppliers who violated Asian Agri’s sourcing policy by terminating their supply contracts in June 2015.
  2. We are committed to tracing all of our FFB sources and we have developed a sourcing policy to achieve that goal. Using ART and a landscape perspective to focus our efforts on sensitive regions and high-risk suppliers, we aim to deal with problem suppliers while seeking ways to protect expansion areas and other forest and peat zones not yet developed but potentially under threat.

We are in collaboration with our stakeholders to progressively map our supply chain from independent smallholders.

Asian Agri’s emphasis is on working with our suppliers and relevant stakeholders to find practical solutions to complex supply chain issues. Our complete response can be found here.

Following the publication of their report, Asian Agri has conducted a face-to-face clarification with EoF.