Wilmar cited statistics from credible sources such as Department of Agriculture, Department of Environment and Forestry to prove that that the area of affected by the fire stated in FOEI’s report is inaccurate and overstated.
Wilmar then argued that it is irrational for them to set fires to their own plantings since these fires occurred in the three oil palm subsidiaries owned by them. They attributed the source of the fire outbreak to the carelessness of outside parties and accidental causes.
However, their reasoning proved to be rather …show more content…
This portrays an irresponsible image of the company and shows their non-compliance towards the legal regulations. Wilmar should have been honest in their reply and apologized since they are in the wrong.
Address the Environmental Challenges
The demand for palm oil has grown exponentially throughout the recent years. The main environmental impacts of palm oil expansion include deforestation, loss of biodiversity and climate change. Wilmar being the top global player in the palm oil sector (producing and trading almost half the world's palm oil), should take the lead in ensuring that their business is ran in a responsible and sustainable manner.
Wilmar should engage the various stakeholders such as non-governmental organizations, suppliers and local community in their efforts to address environmental impact.
Wilmar should establish control over their extensive supplier network and ensure that they do not carry out any environmentally-destructive activities. For instance, they should conduct yearly audits on their suppliers’ practices to ensure strict compliance to standards. Wilmar should only continue employing the suppliers’ services only if they have met the