Unilever and PT Perkebunan Nusantara (PTPN) reach agreement to accelerate production of sustainable palm oil in Indonesia
Davos, Switzerland – Unilever and Indonesian government-owned palm oil plantation company PT Perkebunan Nusantara (PTPN) signed a Memorandum of Understanding (MoU) to work together in Indonesia to support local mills and smallholder farmers to produce palm oil according to the standards of no deforestation, no development on peat and no exploitation of people and communities (NDPE). This produce-protect partnership will help farmers to increase their yields and improve their livelihoods.
As part of the partnership, PTPN will provide Unilever access to its mills and its supplying farmer base. Unilever will support the mills and farmers to obtain sustainability certification through a combination of dedicated resources, funding and technical expertise. This will ensure smallholder farmers are better positioned to enter the palm oil supply chain – they will be able to increase their productivity while producing palm oil to the right standards to protect people and planet.
Marc Engel, Chief Supply Chain Officer at Unilever: “Unilever’s ambition is to make sustainable palm oil mainstream. We have been working really hard to make this a reality and we have been evolving our approach over the years. We are involved in various partnerships to help smallholder farmers improve their yields while protecting the environment and local communities. The MoU with PTPN is the first time we can apply the produce-protect model at scale – our partnership will have a positive impact in Indonesia from an environmental, social and economic perspective which makes it unique to the industry.”
PTPN is government-owned and a large player in the Indonesian palm oil industry working with an extensive network of smallholder farmers. The MoU with Unilever is an important incentive for smallholder farmers to adopt sustainable agricultural and business practices as it supports the business case for sustainable palm oil as well as gives them access to the necessary training and skills to make the switch.
“As a Holding Company, PTPN III manages ± 61% of its area as oil palm plantations divided in 10 subsidiaries, some of which are already certified as sustainable. We are committed to continuing sustainable palm oil management” said Erwan Pelawi, Operating Managing Director PTPN III Holding Company. “Palm oil from smallholders also enters our supply chain through PTPN Group's palm oil mills. Therefore, being able to source from certified smallholder farmers gives us the ability to produce quality and sustainable palm oil products. The MoU with Unilever is expected to improve the quality of how smallholder farmers manage palm oil cultivation and will also accelerate the process of sustainable palm oil certification which will in turn provide better benefits for the welfare of oil palm farmers in Indonesia”.
100 Victoria Embankment
London EC4Y 0DY
+44 (0) 7825 049 151
This announcement may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vision’, or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Unilever Group (the “Group”). They are not historical facts, nor are they guarantees of future performance.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: Unilever's global brands not meeting consumer preferences; Unilever's ability to innovate and remain competitive; Unilever's investment choices in its portfolio management; inability to find sustainable solutions to support long-term growth; customer relationships; the recruitment and retention of talented employees; disruptions in our supply chain; the cost of raw materials and commodities; the production of safe and high quality products; secure and reliable IT infrastructure; successful execution of acquisitions, divestitures and business transformation projects; economic and political risks and natural disasters; the effect of climate change on Unilever's business; financial risks; failure to meet high and ethical standards; and managing regulatory, tax and legal matters. These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including in the Annual Report on Form 20-F 2016 and the Unilever Annual Report and Accounts 2016.