We recently gave kudos to Nestle U.K. for a plan to source the chocolate in Kit Kat bars from fair-trade suppliers. That wasn't enough for Greenpeace U.K., which attacked the candy maker this week for sourcing palm oil from Sinar Mas--a company responsible for massive rainforest destruction in Indonesia. In typical fashion, Greenpeace heckled Nestle headquarters with posters leaflets, and orangutans hanging off the side of the building. And guess what? Nestle actually took action.
The company announced that it won't use Sinar Mas for any further shipments. In a statement, Nestle emphasized, "We will continue to pressure our suppliers to eliminate any sources of palm oil which are related to rainforest destruction and to provide valid guarantees of traceability as quickly as possible."
The news spells trouble for Sinar Mas, which has already lost business from Unilever--the world's largest consumer of palm oil--over sustainability concerns. Sinar Mas is still Indonesia's biggest palm oil producer, but unless it cleans up its act, a greener company could easily take over the title.