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Nestlé Says It Will Drop Palm Oil Supplier Accused of Abuses

  • Astra Agro Lestari faced previous similar allegations
  • Consumer-goods companies are under pressure to drop suppliers
Nestle SA Products Ahead Of Earnings
Photographer: Stefan Wermuth/Bloomberg
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Nestlé SA has pledged to cut ties with an Indonesian palm oil supplier accused of land-rights abuses and environmental harm.

The Swiss company instructed its direct vendors to ensure that palm oil from three entities linked to Astra Agro Lestari Tbk doesn’t enter its supply chain in the future, according to a letter sent to nonprofit Friends of the Earth and seen by Bloomberg. In the document, dated Sept. 28, Nestlé said it expects to complete the process by the end of the year.