KUALA LUMPUR (June 28): The Roundtable on Sustainable Palm Oil (RSPO) has suspended the membership of food and drink giant Nestlé SA yesterday (June 27), following breaches of the group's statutes and code.  

In an announcement on its website, RSPO said Nestlé has failed to submit its Annual Communication on Progress (ACOP) report for 2016, and while it has submitted its ACOP report for 2017, the submission was without a time-bound plan.

“It is compulsory for members to communicate their commitment by submitting the ACOP reports annually as required under the Code of Conduct for Members 2017,” RSPO said.

Under RSPO's code of conduct, RSPO members are required to specify, in the ACOP, steps taken last year, as well as specific steps intended for the coming year and for the long term in the form of a time-bound plan of working towards producing or buying certified sustainable palm oil.

"Nestlé was given the opportunity to complete its ACOP report for 2017 through active engagement, and has declined to submit a time-bound plan," the announcement added.

Nestlé has also an unpaid overdue membership fee of €2,000, RSPO said.

Nestlé has until July 20, 2018 to fully comply and commit to the RSPO Statutes and Code of Conduct for Members 2017. RSPO will only lift the suspension once it is satisfied with Nestlé’s compliance. Failure to comply will result in Nestlé's membership with the RSPO being terminated.

As a result of this suspension, Nestlé's voting rights at RSPO General Assemblies have been revoked, and it cannot continue to be a member of any Task Forces or Working Groups in RSPO. It also cannot claim membership and use of certified sustainable palm oil (CSPO).

Meanwhile, Nestlé has a period of 30 days from the date of RSPO's letter dated June 27 to communicate its suspension to its customers, thus allowing them to seek alternatives.

“After this 30 day period, Nestlé certificates will automatically cease to be valid and trading of CSPO (certified sustainable palm oil) will no longer be available via PalmTrace,” RSPO added.