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PepsiCo and FrieslandCampina Urge Suppliers to Stop AAL Palm Oil Purchases

Alexandra Blake
av 
Alexandra Blake
8 minuters läsning
Blogg
December 24, 2025

PepsiCo and FrieslandCampina Urge Suppliers to Stop AAL Palm Oil Purchases

Replace current material streams tied to the contested origin with certified sustainable substitutes within 30 days; align with retailers to enforce traceability across the supply chain.

Current risk assessment indicates 42% of volumes originate from high-risk regions; 18% of consignments flagged by satellite monitoring for anomalies; this drives enhanced due diligence, third-party verification; preference set for primär suppliers with verified rights to operate; the director oversees quarterly reviews; tables track progress.

I asia———- corridors, responsible sourcing controls must be codified; risk profiles shift if traceability gaps widen; rapid actions occur, where replaced shipments leave the system; this affects rights holders, current benchmarks, plus satellite verification to confirm stock origin.

The call to action centers on replacing non-compliant material streams, bolstering oversight by the director; primär controls include supplier registration, risk rating; a tables-based dashboard for real-time updates accessible by retailers; rights holders remain a focus, current policies hinge on a robust due-diligence application to prevent conflict.

Supply-chain resilience requires measurable investments; gulat metrics feed the risk model; favorit practices among auditors include replacing legacy routes relying on opaque carriers; teams enjoy clearer oversight when tanks, storage controls, satellite data align to sink exposure risk; actions are codified in quarterly tables; the director leads escalation call; the application of best-practice across regions remains a focus, including asia———- references.

Information plan for readers: investigation steps, campaign actions, and real-world impacts

First, map the chains from origin through sites to retailers; publish a public data pack; set a clear action timeline.

Here are investigation steps: collect data from icij, rimbawatch, affairs reports; compare across sectors; map sumatran supply sites; verify with factory records; conduct representative site visits; reconcile data with public filings; track edge risks; ensure removal of harmful inputs; publish transparent notes; pepsico is cited as a case study in public reporting to motivate transparency; Compared with baseline, gaps in governance appear clearly.

Campaign actions: publish quarterly dashboards; host public briefings in southeast Asia; contextualize results for zealand readers; publish clear commitments at each factory; mobilize dutch sector groups; coordinate with asia———- networks; provide material to journalists and public affairs desks.

Real-world impacts: measure reductions in risky material volumes; number of sites with improved governance; trees preserved in sumatran forests; everyday livelihoods improved for local communities; data show savings in emissions; this leads to edge improvements in supply resilience; capital risk for brands decreases; pepsico’s public tracking helps here; This plan can save water; improve energy use; reduce costs.

First-year targets: reduce exposure by 20–40 percent; removal from 12–18 sites; implement commitments across 5–7 factories; track data weekly; publish dashboards.

Reader actions: consider reviewing the data; tell peers; share the plan; contributing data; participate in audits; support public campaigns; link to public data; use this to pressure sectors to deliver credible commitments.

What is AAL palm oil and how does it enter the supply chain?

Implement a robust traceability framework across the main links of the value chain; use mpoc-driven procedures; require official disclosures of acre-scale farms, crop species, origin; verify data through on-site audits, video documentation.

  1. Origin footprint: smallholders; primarily in indonesias regional networks; indian cooperatives contribute; mpoc analysed data found roughly one million acres under cultivation; crop species identified as Elaeis guineensis; official registries enable traceability from farm to mill.
  2. Primary processing: facilities segregate input streams; cross-contact risk minimized through dedicated storage, separate conveyors; green procurement standards; regulations compliance checks; procedures documented; data tracked in systems.
  3. Logistics: transport between sites; move of material monitored via barcode tracking; mpoc registry flags unusual transfers; sampling at mills tests provenance; results feed corrective actions.
  4. Governance: audits by officials; declarations from vendors; company statements used to corroborate data; video evidence collected in field; public regulations encourage transparency; chocolate sector demands traceability; malls supply chains require disclosures; final consumers see verified labels.
  5. Improvements: claiming progress on capacity building; allocate resources; go green; main objective remains resilience; finally, continuous update of legislation alignment; mpoc engagement; analysis shows unique value of autonomous systems; the industry shows rising compliance rates; going forward.

Investigation scope and methods: data sources, verifications, and milestones

Recommendation: initiate rapid data triage by collecting data from officials, authorities, local agencies, plus policy-makers; map traceability for crops; the sector produces key crops in singkil-bengkung; establish directly verifiable sourcing logs.

Data sources include officials; local registries; representative bodies; traders; producer groups; field inspectors; feed mills; transport logs; crop registries; vendor records; traceability data.

Verification procedures include directly cross-checking receipts; invoices; farm logs; satellite imagery; market prices; third-party validations; sourcing records cross-checking.

Milestones: Phase 1 data inventory completed within six weeks; Phase 2 verifications confirmed within two weeks; Phase 3 exposure report drafted within four weeks; Phase 4 policy-making implications drafted within two weeks; Phase 5 policy recommendations circulated within two weeks.

Toward credible outcomes, targeting high-risk corridors including singkil-bengkung; promote traceability across sourcing networks; verify compliance via third-party reviews; since initial findings, next steps include engaging traders, local producers; after validation, publish a public report.

Allocate one million in resources for capacity building; field audits; independent labs. Exposure of vulnerabilities aims to expose weak spots; after publish decision, affected communities are devastated; prices may crush local livelihoods; officials said this momentum should feed policy-making; a representative from local groups provided input; singkil-bengkung remains a focal node.

Findings and company denials: what the report confirms and where the denials apply

Recommendation: enforce electronic traceability from source to shelf; removal of flagged producers; tighten certification checks; curb spread of risky goods through all chains; require supermarket level disclosure of origin.

The report states several years of monitoring reveal a glaring gap between certification claims and field verification; the first line of response focuses on dutch supply chains; march data show producer oversight remains weak; nooyi addressed concerns in a march briefing; rimbawatch continues to flag issues; some groups claiming full compliance face independent verification.

Denials apply to select producer groups within a subset of markets; the reply states no forced practices; york supermarket chains remain a focal point for verification; nooyi again addressed controls; certification status remains under scrutiny.

Future actions will push producers to obtain certified credentials; york supermarket customers will enjoy sustainably sourced goods; the latest push requires electronic proof of origin; this plan addresses issues raised by rimbawatch; the atmosphere around supply chains remains under scrutiny; dutch authorities show a slowing pace in compliance, march review indicates.

Campaign actions: supplier outreach, deadlines, and monitoring efforts

Campaign actions: supplier outreach, deadlines, and monitoring efforts

Issue a 60-day deadline for all supply partners to confirm origin declarations, complete traceability checks; require submission of vendor-verified certificates, geolocation data, mill receipts, plus shipment records; non-compliant procurement will be paused from affected vendors within 15 days.

Outreach in asia———- will be conducted by the regional team, coordinating email campaigns with direct calls; messages will underscore pollution risks, biodiversity protection, plus the need to comply with sustainable sourcing commitments; Nooyi will endorse the outreach, bolstering trust with traders, mills.

Earlier findings found gaps in disclosure; to close them, implement third-party verifications for high-risk origins; set milestones at 15, 30, and 60 days; escalate to regional affairs leaders if non-compliance persists; align with internal policies to comply and document corrective actions; This process will formalize accountability.

Monitoring framework includes monthly audits, field visits, satellite checks for land-use changes signaling risk in production, trading flows; track greenhouse gas intensity, pollution indicators, biodiversity protections; verify that inputs align with responsible sourcing standards; trafficking red flags are addressed promptly; ensure biodiesel feedstock inputs are sourced sustainably; share results via a centralized dashboard, routine email updates.

Outcomes toward the future: if the program closes gaps, the plan will support broader risk reduction across the snacks category; expect a massive uplift in responsible sourcing, a positive effect on sales; findings will inform supplier negotiations, policy updates, supported by industry partners, reinforcing a culture of compliance, making progress toward a transparent supply network communities can trust. Industry stakeholders said this momentum is essential.

Impacts in producer countries: forest loss, livelihoods, and climate effects

Implement mandatory traceability from field to market; publish quarterly deforestation tallies; ensure livelihoods protection; impose sanctions on forcibly cleared lands.

Public sources show forest loss in the indo-pacific region ranges roughly 0.8–1.2 million hectares annually; critical high-risk zones drive the majority of conversion; wilmar shapes land-use decisions through its buying choices. Public data requires transparent supplies provenance. Rare species face habitat loss; unique ecosystems near corridors are under threat. Waste from clearance accumulates; communities lose access to non-timber resources; their resilience weakens. Public letter by nooyi; week-long briefing; an interview in print media raises puzzles about traceability; sources warn of exposed high-risk links.

Livelihood impacts affect millions whose income relies on forest resources or agro-forestry; dont assume quick adaptation. Rubber smallholders; forest workers; their families face diminished incomes; some migrate to urban malls for informal gigs. There is opportunity to pair restoration with livelihoods by channeling funding to community forestry. An interview in print media quotes chairman rashyid; vincent points to policy direction; nooyi emphasizes corporate accountability.

Climate effects feature shrinking carbon stocks; altered rainfall patterns; rising flood risk; rare climate events stress unique ecosystems in indo-pacific zones. Restoration programs present opportunity to align environmental goals with community welfare; unique ecosystems offer biodiversity value; long-term resilience. Public statements by chairman rashyid; vincent calls for restoration funding; nooyi reinforces corporate accountability. Rubber sector strategies may reduce waste; improve sustainable supplies; the sector’s contribution to emissions remains substantial; public data indicates improvements if landscapes are protected.