SINGAPORE (Dec 13): Calling itself a “small player” in third-party palm oil sourcing, Olam International on Monday revealed its full suppliers list, ahead of a report criticising its palm operations in Gabon.

In a press release on Monday, Olam says it has been made aware of the report by US-based communications and lobbying company Waxman Strategies, working as Mighty Earth, and Gabon-based NGO Brainforest.

Olam adds that it was “disappointed to see some important factual errors, and several key misinterpretations of Olam’s policies and implementation”.

Among the criticisms in the Mighty Report that Olam takes issue with include allegations that the company is deforesting in Gabon and will not sign a no-deforestation commitment that adheres to HCSA (High Carbon Stock Approach) methodology.

Olam says it cannot sign up to the no-deforestation commitments due to the lack of available land in Gabon to get high-yielding plantations up and running. Much of Gabon’s non-forested land is infertile savannah or swamps, which makes it necessary to include some highly degraded forest lands, it adds.

“We agree with Gabon’s sovereign right to convert a tiny percentage of its least valuable forested land for agriculture, so long as it is responsibly and transparently done,” Olam says.

In addition, Olam also disagreed with Mighty Report’s allegation that its third-party sourcing of palm oil comes from companies that are environmentally destructive and causing fire and haze.

Olam says this referred to its palm trading business in Asia.

“For our third party palm sourcing, we are still a small player, accounting for only 0.4% of global palm volumes in 2016,” says Olam Co-Founder and Group CEO Sunny Verghese.

“We already expect full compliance to our Sustainable Palm Oil Policy and Supplier Code, and have absolutely zero tolerance for the burning of forests. All of our current suppliers have either signed this code or have their own codes consistent with ours,” Verghese adds.

Olam adds that it had reduced its supplier list from 48 in 2014 to 14 currently, after cutting ties with suppliers who failed to conform to its code of conduct.

Olam’s current 14 third-party palm oil suppliers are:

1. Wilmar International

2. Golden Agri-Resources

3. First Resources Limited

4. Inter-Continental Oils & Fats Pte Ltd

5. AAA Oils & Fats Pte Ltd

6. Virgoz Oils and Fats Pte Ltd

7. Sarawak Oil Palms Berhad Group Of Companies

8. Mewah Group

9. PT. Eka Dura Indonesia

10. Keck Seng (Malaysia) Berhad

11. Felda Global Ventures

12. Sime Darby Unimills B.V.

13. Intercontinental Specialty Fats Sdn Bhd

14. IOI Loders Croklaan Edible Oils

Shares of Olam International closed flat at S$2.07 on Monday.