How Nestlé and Grupo Palmas are working towards responsible growth in palm oil industry in Peru

02/23/2021

‘The Case for Engagement’ is our new documentary about how Nestlé and Peru’s largest palm oil producer, Grupo Palmas, are working to uphold Nestlé’s 'No Deforestation' commitment while finding ways for the palm oil industry to grow responsibly. In 2015, Nestle learned that Grupo Palmas, was planning to expand its oil palm plantations by clearing thousands of hectares of rain forest in the Peruvian Amazon. This case tested Nestlé’s policy commitment and its approach to cleaning up global supply chains of destructive practices. Should Nestlé stop buying from Grupo Palmas? And would dropping its supplier be effective in stopping the deforestation?

Could Nestlé leverage its commercial relationship and help Grupo Palmas to chart a new way forward that didn’t involve clearing forest?

The stakes were high for both Nestlé and Grupo Palmas, and the potential impact for the Amazon was enormous. Reconciling interests and achieving real change in global supply chains is challenging. This video gives a rare glimpse at how people in the leadership of very different companies grapple with risks and uncertainty, and ultimately set in motion new company practices and a new opportunity for conservation that could help shift a country’s approach to palm oil development.