Grupo Bimbo, the Mexico-based bakery giant, has outlined fresh plans to source palm oil "responsibly".
The company has set out new requirements that include no deforestation, no development of peatland and traceability.
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Chief procurement officer David Hernández said: "Our company will build a transparent global supply chain by mapping our palm oil supply back to the plantations of origin, and will require our suppliers to commit to producing and sourcing palm oil from companies that comply with our policies throughout their entire operations and land holding."
The no deforestation requirement includes the prohibition of development on both high conservation value and high carbon stock forests. Furthermore, suppliers will not use burning for land clearing, replanting, or other development, Bimbo said. Suppliers that do not meet the standards could face losing their contracts with the company.
Bimbo said it will have an "action plan" in place by the end of the year and will report on its implementation twice a year. The company will work with suppliers and other third parties to achieve and verify full company-wide compliance.
"This new policy enhances our company's long standing environmental and social commitments which have continued to strengthen and evolve over the years," chairman and CEO Daniel Servitje added.
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By GlobalData
