Palm oil giant drops lawsuit against RSPO

13-Jun-2016 - Last updated on 13-Jun-2016 at 14:32 GMT

IOI Group, one of the largest palm oil producers in the world, has dropped a lawsuit it had previously brought against the sustainability body known as the Roundtable on Sustainable Palm Oil.

The lawsuit followed the RSPO’s suspension of IOI’s certification in April, following complaints of deforestation and community conflict. IOI claimed it had been “unfairly affected” by the decision - Unilever cancelled its contract with the company - and sued the RSPO in response.

Malaysia-based IOI says it is now withdrawing the lawsuit, having reached an ‘action plan’ that it says will bring it in line with RSPO accreditation by the end of this year.

RSPO is an international environmental body which has been working to improve the sustainability of the global palm oil supply chain since 2004.

Withdrawn

IOI announced its withdrawal of the lawsuit with a statement that outlined the action plan it has drawn up, saying it has been collaborating with various bodies to work out how to bring its practices in line with RSPO standards.

“Since the filing of the challenge proceeding, IOI has engaged with many of our stakeholders such as customers, NGOs and RSPO to resolve this matter,” the company confirmed.

The lawsuit withdrawal is expected to be formalised with a conciliatory hearing before the Justice of Peace today, 14 June.

Sustainability: too valuable

Stepping down from the threat of legal action suggests IOI is conscious of the huge global demand for compliance when it comes to palm oil sustainability, from consumers and consumer goods brands alike, and is unwilling to risk any further damage to its brand identity on this front.

Indeed, IOI states that its decision to take up the action plan rather than continue with the lawsuit “affirms our commitment and support towards the sustainability principles and the work of RSPO.”