Home Consumer Goods PepsiCo suspends sourcing from Indonesian company over abuse allegations

PepsiCo suspends sourcing from Indonesian company over abuse allegations

Purchase-headquartered PepsiCo (NASDAQ:PEP) has requested its supply chain partners to suspend doing business with the Indonesian conglomerate Astra Agro Lestari (AAL), which has been accused of environmental and human rights abuses.

According to a report in Supply Chain Drive, the International Federation for Human Rights asked several major consumer goods providers to cease doing business with AAL, claiming that company plays a “sustained role in forcibly grabbing communities’ land, contributing to environmental destruction, negatively impacting communities’ livelihoods, and criminalizing land and environmental human rights defenders.”

In a statement, PepsiCo said that it was reviewing the complaints regarding AAL, which provides the Indonesian palm oil used by PepsiCo in its packaged food business

“While PepsiCo does not source directly from AAL, we are engaging with suppliers who continue to source from them and have asked that they suspend the mills identified as being potentially linked to the grievance and underlying allegations,” the company said.

Photo by Tony Webster / Flickr Creative Commons

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Phil Hall's writing for Westfair Communications has earned multiple awards from the Connecticut Press Club and the Connecticut Society of Professional Journalists. He is a former United Nations-based reporter for Fairchild Broadcast News and the author of 11 books (including the new release "100 Years of Wall Street Crooks," published by Bicep Books). He is also the host of the SoundCloud podcast "The Online Movie Show," host of the WAPJ-FM talk show "Nutmeg Chatter" and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill's Congress Blog, Profit Confidential, The MReport and StockNews.com. Outside of journalism, he is also a horror movie actor - usually playing the creepy villain who gets badly killed at the end of each film.


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