APP and Danone

A report published by Greenpeace states that the Asia Pulp and Paper (APP) group has cut tree species protected under both Indonesian law and the CITES convention, contributing to the deforestation of tropical habitats and the destruction of peat swamp forests. Greenpeace research indicates that a number of APP customers, including Nutricia (Danone) may be using packaging that incorporates endangered and protected plant species.

Deforestation is a critical challenge that demands action from all of us. This is why Danone group has been engaged in programs to reduce its direct and indirect impact (forest footprint) for over five years and has pursued initiatives to restore forest eco-systems. We will soon publish our global forest footprint policy which includes a “zero deforestation” component / which addresses our commitment to zero deforestation.

In addition, Danone’s purchasing policy requires full compliance with prevailing law in countries where our contracts are performed and stipulates that our suppliers must comply with the standards set out in our corporate Respect policy, particularly where social and environmental issues are concerned.

Against this backdrop, in view of the questions raised today about APP, and as a precautionary measure, Danone group has decided to suspend all purchases from this supplier wherever possible under law, until the situation has been clarified and confirmed by independent stakeholders. This suspension will apply to all group subsidiaries in all affected countries.

Danone group’s direct purchases from APP (7,500 metric tons or 1.5% of the group’s total cardboard packaging purchases) will thus be suspended by the end of June 2012Danone suppliers purchasing goods from APP will receive a letter requesting that they suspend such purchases until the situation has been clarified, and requiring them to implement an audited testing procedure to ensure that no protected wood species are used.