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Global Firms Back Plan To Certify 'Green' Palm Oil

Unilever, Johnson & Johnson, Nestlé and H.J. Heinz are supporting a plan to certify that the palm oil they use in everything from margarine to cosmetics doesn't accelerate the destruction of tropical rainforests. The companies have joined a consortium of 200 oil producers, commercial buyers and environmental groups to improve the industry's image and avert a consumer backlash.

Under pressure from retailers and environmental groups, U.S. and European consumer goods and food companies have been leading the push for higher standards in the palm-oil industry. To improve palm oil's tarnished image, the Malaysia-based Roundtable on Sustainable Palm Oil--as the industry consortium is known--plans to introduce a system soon to certify palm-oil operations that meet strict environmental criteria.

Environmental groups fear destruction will accelerate as the price of crude palm oil--called "green gold" by some producers--hits records. Almost 90% of all palm oil is produced in Indonesia and Malaysia, which have seen widespread deforestation.

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Read the whole story at The Wall Street Journal »

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