Mulia Sawit Group – Persada Era Agro Kencana (PEAK) – popup

Date Progress
October 2018 04 October 2018:

Chain Reaction Research published an article which listed Mulia Sawit Group as the top 10 deforester in 2018.

30 October 2018:

Mighty Earth RRR9 discovered through satellite imagery that a subsidiary of Mulia Sawit Group, Persada Era Agro Kencana (PEAK), cleared peat forest and developed the land for Palm Oil in Katingan district, Central Kalimantan.

November 2018 20 November 2020:

Mighty Earth RRR10 alleged that a total of 383 hectares of peat were cleared in PEAK concession between 27 August – 31 October 2018.

December 2018

19 December 2018:

Mighty Earth RRR11 alleged that PEAK developed 200 hectares of peat between 25 September – 01 December 2018. PEAK also developed 189 hectares of peat forest between 31 October – 05 December 2018.

Following an internal review, we have applied ‘Controlled Purchase’ on Mulia Sawit Group and currently have one final long-term contract to be reviewed.
January 2019 Mighty Earth RRR12 reported that PEAK developed a total of 189 hectares of peat forest between 05 December 2018 – 07 January 2019.
February 2019 We met with Mulia Sawit’s management and addressed the allegations of the supplier having planted and developed in peat areas.

Mulia Sawit clarified that PEAK had carried out a peat assessment in 2011 and another HCV assessment in 2016 before cultivating the area. The HCV assessment showed that the total HCV area was 1,126 hectares and that PEAK concession does not fall within the peat moratorium area (PIPIB XIV) set by Indonesia’s Ministry of Environment and Forestry.

After in-depth discussions, we have requested that while verification of the allegations (to be completed within 90 working days) are underway, Mulia Sawit will need to impose a moratorium by the first week of March. Failing which, we will review our business dealings with Mulia Sawit until a credible working action plan is in place.

March 2019 We followed up with Mulia Sawit on our recent engagement concerning their planting and development in peat. Unfortunately, Mulia Sawit is unable to commit to an immediate moratorium. Therefore, in line with our controlled purchase protocol, we have stopped purchase from Mulia with immediate effect. We will continue to engage with Mulia in the hope to bring them back to our supply chain after they improve their sustainability practices.

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