Grupo Bimbo makes palm oil sourcing commitment

18 September 2015

Global baking company Grupo Bimbo has launched a policy to ensure responsible sourcing of palm oil.

The Mexican company said it would strengthen its commitment to build a fully traceable and responsibly sourced palm oil supply chain would protect communities, workers and the environment.

The policy includes no deforestation, no development of peatland, no exploitation of indigenous peoples, workers and local communities, and traceability. The no deforestation requirement includes the prohibition of development on both High Conservation Value areas and High Carbon Stock forests.

Suppliers must not use burning for land clearing, replanting, or other developments. Suppliers that do not meet the standards could lose their contracts, the company said. The policy covers palm oil, palm kernel oil, and any palm oil derivatives used in Grupo Bimbo products worldwide. Suppliers will be required to show traceability to the mill and to the plantation level.

Grupo Bimbo said it would map and assess its supply chain, and develop an action plan to work with suppliers and other third parties to achieve and verify full company-wide compliance. The action plan will be in place by the end of the year, and the company will report on its implementation twice a year.

“Our company will build a transparent global supply chain by mapping our palm oil supply back to the plantations of origin, and will require our suppliers to commit to producing and sourcing palm oil from companies that comply with our policies throughout their entire operations and land holding,” said chief procurement officer David Hernández.

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