Our palm oil transparency dashboard

has allowed us to monitor our entire palm oil supply chain using satellite imagery. This follows successful pilots in Malaysia, Ecuador, Mexico, and Nigeria.

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This work is part of our commitment to achieving deforestation-free commodities by 2020 and is changing the way we manage deforestation risks in our palm oil supply chains.

Here we're sharing our progress and the challenges involved. We welcome suggestions on how to improve our approach. If you have any comments, please email [email protected].

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We are committed to fight deforestation from the top

Watch Magdi Batato, Head of Operations Nestlé S.A. and Laurent Freixe, Zone Americas ?

What is Starling teaching us about deforestation?

Starling is helping us to understand the complex deforestation patterns around palm oil producing areas: where deforestation occurs, what drives deforestation and who is involved. We use this information to identify deforestation cases and risks, and to prioritise actions within our supply chain.

The table below provides some information on the deforestation trends we are observing around the mills we supply from. The number and area of deforestation alerts reflect all deforestation within 50 km of mills in the Nestlé supply chain.

Deforestation observed may be linked to other industries, including other agricultural crops, mining and urban development, or for palm oil that doesn’t enter our supply chain.

We use the alerts to investigate deforestation cases in our supply chain and take action where they are verified. As engagement with our suppliers progresses, we will be able to provide more information on the links between deforestation and our supply chain.

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  • Province Number of mills within Nestlé's supply chain Cumulated number of deforestation alerts within 50?km of the mills Cumulated deforested area since 31 Dec 2015 within 50?km of the mills (hectares) Number of Tier 1 suppliers operating mills
    Banten 1 2,441 4,268 1
    Sulawesi?Tenggara 1 1,636 4,515 14
    Lampung 17 611 1,440 24
    Kalimantan?Selatan 36 103,331 462,627 33
    Bangka?Belitung 16 14,820 37,138 35
    Jambi 70 35,451 173,856 45
    Sulawesi?Selatan 0 0 0 0
    Sulawesi Barat 7 22,349 52,136 19
    Kalimantan Tengah 83 150,686 645,338 53
    Sumatera Barat 34 38,720 106,023 35
    Sumatera Utara 183 66,791 167,498 49
    Kalimantan Barat 81 335,169 899,720 47
    Jawa?Barat 1 577 852 1
    Bengkulu 27 30,356 83,305 42
    Sumatera?Selatan 74 35,807 135,576 50
    Aceh 38 33,759 99,725 34
    Jawa Timur 0 0 0 0
    Sulawesi Tengah 6 14,188 35,197 21
    Riau 215 89,192 311,758 48
    Papua 3 1,993 9,828 20
    Kalimantan?Timur 70 102,141 450,111 34
    Kalimantan Utara 9 12,978 54,322 21
  • Province Number of mills within Nestlé's supply chain Cumulated number of deforestation alerts within 50?km of the mills Cumulated deforested area since 31 Dec 2015 within 50?km of the mills (hectares) Number of Tier 1 suppliers operating mills
    Sabah 132 128,164 484,721 35
    Perak 46 21,172 76,206 39
    Kedah 6 4,200 25,493 37
    Penang 3 1451 6282 17
    Negeri?Sembilan 17 3,725 18,252 38
    Terengganu 13 10,470 48,836 34
    Sarawak 74 181,027 723,178 37
    Pahang 71 66,843 553,656 38
    Johor 66 11,734 102,026 39
    Kelantan 11 13466 85278 34
    Selangor 19 5,589 19,265 34
    Melaka 3 180 778 33
NOTE: In some cases, the numbers provided (alerts and area) may be greater than the actual number due to the same deforestation alerts occurring within 50?km of multiple mills. Starling system upgrades are planned to calculate the accurate number by region, in addition to mill proximity.

Our Starling journey

Starling is helping us gain a better understanding of the deforestation risks around our palm oil supply chain. As we act on this knowledge we want to share our journey with you.

Our palm oil supplier engagement process

Click to enlarge
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Engaging our suppliers

We use the data provided by Starling to engage our suppliers on deforestation risks. This graphic illustrates our engagement process.

Our palm oil supplier engagement process

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Our 2018 palm oil grievances

Our palm oil grievance management process is designed to track and manage allegations raised about violations of the Nestlé Responsible Sourcing Standard (pdf, 2Mb) and Corporate Business Principles in our palm oil supply chains. Grievances can be raised through site assessments, direct reporting to Nestlé, or via our independent grievance mechanism, Tell Us. In future we will include the deforestation alerts received through Starling connected to our palm oil supply chain.

In 2018, we suspended ten companies from our supply chain as a result of our grievance management process. The remainder are under investigation or have an action plan and are being monitored.

Grievances raised in 2018

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Country Number of cases raised
Indonesia 43
Malaysia 12
Liberia 2
Peru 2
Total 57*

*5 grievances about direct suppliers, 52 grievances about upstream suppliers
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Area of grievance

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Area of grievance

  • Deforestation 56%
    Peatlands 18%
    Labor and Human Rights 9%
    Community and land conflict 13%
    Business ethics 4%

Our progress

We are making progress towards achieving our no deforestation commitment.

To date 60% of our palm oil is verified as deforestation-free. This was achieved through a combination of tools:

  • Traceability to plantations classified as no or low risk of deforestation
  • Verification on the ground through High Carbon Stock and High Carbon Value assessments by our partner Earthworm or traceability to RSPO segregated certified origins
  • Starling satellite monitoring
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We continue to work on identifying and addressing any risks in our remaining supply chains to fulfil our commitment. The full rollout of Starling is helping us to accelerate this in our palm oil supply chains.

Read more about our progress in relation to other raw materials linked to deforestation (pdf, 300 Kb)

60% of our palm oil is verified as deforestation-free

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Nestlé Global Palm Oil Deforestation Status: 60%

  • Traceability to plantations classified as no or low-risk of deforestation 8%
    Verified on the ground * 49%
    Verified through Satellite monitoring 3%
    Not verified 40%


    * Through High Carbon Stock and High Carbon Value assessments by our partner Earthworm or traceability to RSPO segregated certified origins

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