PepsiCo, the palm oil that takes away the lands of the indigenous people in Peru

According to an investigation that reconstructed the multinational’s supply chain, it emerged that at least 15 products, including Doritos, Cheetos and Gatorade, should contain Peruvian palm oil

The American snacks and drinks giant, PepsiCo used palm oil from indigenous lands in Peru, devastated by deforestation. This is what was revealed by the Bureau of Investigative Journalism, Mongabay and the Peruvian newspaper Ojo Públic, who carried out an investigation with the support of the Pulitzer Center’s Rainforest Investigations Network, according to which, for at least three years, PepsiCo’s Peruvian suppliers sourced palm oil from deforested lands in eastern Peru. Tracing PepsiCo’s supply chain, we discover that the multinational purchases, through a company in Mexico, Peruvian palm oil, processed in a Mexican refinery that sources its supplies from the Peruvian consortium, Sol de Palma, which shares storage facilities with Ocho Sur, a US company known for environmental and human rights abuses. As various batches of palm oil are mixed in storage facilities, it is very likely that PepsiCo products contain Ocho Sur oil despite not being purchased directly by the company.

Today, Ocho Sur is the second largest palm oil company in Peru and, in the last decade, it has more than doubled production in the country. This increase produced a forest loss of 170 square km and, as satellite analyzes by the Center for Climate Crime Analysis (CCCA) show, part of this deforestation has occurred on the lands of Ocho Sur in the last three years. These lands have been the scene of battles for recognition claimed by the indigenous Shipibo-Konibo community of Santa Clara de Uchunya, which should be protected by the Peruvian state, as ordered in 2020 by the Inter-American Commission on Human Rights.

Neither Ocho Sur nor the liquidated companies whose assets it acquired had obtained the necessary environmental permit for their plantations and over the years they have been sanctioned repeatedly by the Peruvian Ministry of Agriculture without ever interrupting their activity. In this regard, Ocho Sur said that he had requested certification for a long time, but had not received a response from the Ministry of Agriculture. Earlier this year, Peru’s Congress approved a change to its forestry and wildlife law, easing requirements for deforestation in “agricultural exclusion areas” and pardoning historic offenses.

According to the CCCA analysis, PepsiCo produces at least 15 products that contain Peruvian palm oil refined in Mexico – including Doritos, Cheetos and Gatorade. The multinational has committed to making 100% of its palm oil supply deforestation-free by the end of 2022 and said it has initiated an investigation, among its direct suppliers, to assess whether any action is necessary against Ocho Sur which in any case (they specify) is not their direct supplier.

Ocho Sur said it could not be held responsible for the actions of the companies whose assets it acquired and that it had no financial or legal connections to any of those companies. It also claims to fully respect all obligations relating to the rights of indigenous peoples and does not allow deforestation in its supply chain.
Also Oleomex, owner of the Mexican refinery that supplies PepsiCo, washes its hands of it claiming that the oil they supply to the customer meets all sustainability standards as it is an RSPO certified oil (Roundtable on Sustainable Palm Oil, the most used sustainability certification scheme in the industry, which Ocho Sur does not adhere to). However, he added that the supply contracts with Ocho Sur were negotiated through a third party and he agreed to suspend those contracts until the complaints raised in the investigation are resolved. The ruling by the Peruvian judges is awaited.