Wilmar International Explained

Wilmar International Limited
Native Name:豐益國際
Type:Public
Traded As:
Foundation: in Singapore
Founders:William Kuok Khoon Hong
Martua Sitorus
Key People:Kuok Khoon Hong (Chairman and CEO)
Industry:Food processing
Products:Palm oil, protein meal, consumer pack edible oils, sugar, specialty fats, oleochemicals and biodiesel
Revenue:US$73.40 billion
Revenue Year:2022
Net Income:US$2.42 billion
Net Income Year:2022
Assets:US$60.4 billion
Assets Year:2022
Equity:US$19.9 billion
Equity Year:2022
Num Employees:about 100,000
Num Employees Year:2020
Subsid:Unity Foods
Yihai Kerry
Footnotes:Data from 2022 Annual Report[1]

Wilmar International Limited [2] [3] is a Singaporean food processing and investment holding company with more than 300 subsidiary companies.[4] Founded in 1991, it is one of Asia's leading agribusiness groups alongside the COFCO Group. It ranks amongst the largest listed companies by market capitalisation on the Singapore Exchange (SGX), being the second largest as of September 2010.[5] It was ranked 211th in the Fortune Global 500 list in 2020.[6] It was ranked 3rd in the World's Most Admired Company (Food Production) by Fortune in 2019.[7]

Wilmar International business activities include oil palm cultivation, edible oils refining, oilseeds crushing, consumer pack edible oils processing and merchandising, specialty fats, oleochemicals, and biodiesel manufacturing, grains processing and merchandising, and sugar milling and refining. In 2021, Wilmar placed 2nd on FoodTalks' Global Top 30 Specialty Oil Companies list.[8] It has over 500 manufacturing plants and an extensive distribution network covering China, Indonesia, India and some 50 other countries. The group employs a multinational workforce of more than 100,000 people.

Wilmar's merchandising and processing segment encompasses merchandising of palm oil and laurics-related products, operations of palm oil processing and refinery plants and crushing, further processing and refining of a range of edible oils, oilseeds, grains and soybean. Its consumer products include edible oils, rice, flour and noodles in China, Indonesia, Vietnam and India. Its plantation and palm oil mills segment engages in oil palm cultivation and milling.

Wilmar has come under criticism for its exploitation of child labour and slave labour, as well as unsafe working conditions on its plantations amidst other worker mistreatment incidents. The company has also been exposed for its environmentally degrading practices, and forced displacement of poor populations, amongst other unethical behaviours.

Business profile

Unilever is one of the main customers of Wilmar. Unilever and Wilmar are members of the Roundtable on Sustainable Palm Oil (RSPO) which brings together retailers, producers and NGOs like Oxfam and WWF.[9]

Palm oil

Palm oil, extracted from palm fruit pulp, is Wilmar's main product. Palm oil is the most widely used edible oil, and there are 42 million acres under cultivation worldwide. Commercial production has helped many communities in Africa and South-east Asia tackle local poverty. However, environmentalists have been concerned that such widespread cultivation has led to deforestation and air pollution, and is a threat to endangered species. In 2013, Wilmar changed its approach and endorsed sustainability principles, and now encourages their suppliers and customers to do likewise.

History

Wilmar was founded by Kuok Khoon Hong and Martua Sitorus on 1 April, 1991[10] and commenced operations as a palm oil trading company.

Forbes named Kuok the twelfth richest person in Singapore in 2021[11] and Martua is the twelfth richest person in Indonesia.[12]

1999
2003
2004
2005
2006
2007
2008
2010
2011
2012
2013
2015
2018
2020

Ethical issues

In 2004, Friends of the Earth Netherlands performed a review of Wilmar's palm oil operations in Sumatra Riau as undertaken by PT Jatim Jaya Perkasa. Wilmar had 20,800 hectares of land there and the operation was financed by the Dutch Rabobank and the International Finance Corporation. Satellite photos proved that in 2004, the plantations were on sea shore peat rain forests, the depth of the peat being four meters, whereas such land is actually protected under Indonesian law. Nevertheless, in 1997 Wilmar received permission to plant there despite it being peat land. According to locals, the plantation endangers the Sumatran tiger population that inhabits the area, and this became a point of conflict with Wilmar in 2004. Soon after, Wilmar sold PT Jatim Jaya Perkasa and joined the WWF Palm Oil Association.

According to Friends of the Earth Netherlands, Wilmar International starts forest fires and violates the rights of local populations.[26] In July 2007, Friends of the Earth and two local environmental organizations criticized Wilmar's illegal forest felling in Kalimantan, in Indonesia.[9] As a result of this campaign against Wilmar's projects in Sambas, West Kalimantan, the company agreed to implement a number of new measures and policies.[27]

In July 2013, a report published by the WWF which documented that Wilmar (as well as the Indonesian company Asian Agri) were purchasing palm oil fruit which was grown illegally in Tesso Nilo National Park, Sumatra.[28] According to the Roundtable on Sustainable Palm Oil, both Wilmar and Asian Agri took immediate action to stop this illegal sourcing.[29]

In October 2015, Wilmar and Sinarmas, reportedly involved with the case of forest fires in Indonesia that led to the island of Sumatra and Kalimantan burn and cause catastrophic smog[30]

In 2018, a Greenpeace International report asserted that Wilmar International is "the biggest and dirtiest palm oil trader in the world"[31]

In 2020, global campaign organisation Mighty Earth reported that Wilmar International was involved in cutting down of natural forests inside an oil palm concession in Indonesia's easternmost region of Papua, but Wilmar's investigation concluded that the deforestation is smaller than alleged and done by smallholder farmers.[32]

Uganda

According to Friends of the Earth, Wilmar and Bidco Africa through Bidco Uganda, have been involved in long running dispute over land with local communities.[33]

According to The Guardian in March 2015, the land grab issue has plagued the community of Kalangala for a number of years. In July 2011, residents awoke to "find yellow machines churning up her land and razing the crops she had grown in a bid to make way for palm oil plantations."[34] Bidco Africa and Wilmar have made no recorded statement on these matters. Again according to Friends of the Earth International, the projects implications include: Forced displacement, poor labour standards, deforestation, and insecurity amongst other.[35] The community have now taken the conglomerate to court.[33] [36]

In February 2016, the United Nations Development Programme (UNDP) received a petition from the Bugala Farmers Association in Uganda related to UNDP's association with Bidco Africa Ltd.[37] A complaint was also received by the UNDP's Stakeholder Response Mechanism (SRM) and Social and Environmental Compliance Unit (SECU).[38] In May 2016, UNDP visited Kalangala to further investigate the issues surrounding the matter.[39] In November 2016, the UNDP faulted a decision inviting Bidco Ltd into partnership with the United Nations Development Programme's Business Call to Action in Uganda.[40]

Human right violations in 2016

On 30 November 2016, Amnesty International published a report into working conditions on the Wilmar International plantations and refineries in Indonesia. It alleged human rights abuses, including "forced labour, low pay, exposure to toxic chemicals and discrimination against women".[41] According to Amnesty International, Wilmar International profited from 8- to 14-year-old child labour and forced labour. Some workers were extorted, threatened or not paid for work. Some workers suffered severe injuries from exposure to herbicides containing paraquat. Wilmar customers include FAMSA, ADM, Colgate-Palmolive, Elevance, Kellogg's, Nestlé, Procter & Gamble, Reckitt Benckiser and Unilever. Wilmar palm oil may be used in popular products like Magnum ice-cream, Colgate toothpaste, Dove (toiletries), Knorr soup, KitKat, Pantene shampoo, Ariel, and Pot Noodle.[42]

NDPE Initiatives

On 5 December 2013, Wilmar committed to a No Deforestation, No Peat & No Exploitation Policy (NDPE policy)[43] for both its own operations and third party suppliers.[44] It promised to stop buying from suppliers who cleared forest, drained peat land, or exploited locals.[45] This was lauded as a transformational step towards responsible and sustainable palm oil development.[46] Preliminary analysis estimated that Wilmar's commitment would eliminate more than 1.5Gt CO2 emissions in total between 2016 and 2020.

Recognition / Awards

In 2015, Wilmar won the Special Recognition Award at the Singapore Apex CSR Awards 2015 organised by the Global Compact Network Singapore, Singapore Business Federation and The Business Times. It was hailed for being the first major palm oil player to step up to ensure its supply chain is de-linked from any forest destruction and human rights abuse.[47]

External links

Notes and References

  1. Web site: Annual Report 2022 . Wilmar International . 30 April 2023.
  2. Web site: WILMAR INTERNATIONAL LTD (WIL:Singapore Exchange): Company Description - Businessweek. investing.businessweek.com. 30 May 2016. https://web.archive.org/web/20121006054250/http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=WIL:SP. 6 October 2012. dead.

  3. Web site: Wilmar International Limited,「丰益国际」 . The Kuok Group . 13 September 2020.
  4. Web site: Annual Report 2020 . Wilmar International . 16 October 2021.
  5. News: Wilmar's Harvest . . 9 August 2010.
  6. Web site: Fortune Global 500 . subscription . 16 October 2021.
  7. Web site: Fortune World's Most Admired Companies . subscription . 30 May 2019.
  8. Web site: Fu. Rice. 2021-05-26. 2021年全球特种油脂企业30强. 2022-01-24. FoodTalks. zh.
  9. News: Losing land to palm oil in Kalimantan . BBC News . Painter . James . 3 August 2007 . 16 October 2021.
  10. Web site: History & Milestones . 16 October 2021 . Wilmar International.
  11. #12 Kuok Khoon Hong & family . Forbes . 10 August 2021 . 16 October 2021.
  12. #12 Martua Sitorus . Forbes . 16 October 2021 . 16 October 2021.
  13. Web site: 24 November 2020. Adani Wilmar completes 20 years of Fortune brand; to set up new plants across businesses. 10 March 2021. The Financial Express. en-US.
  14. Web site: palmnewsdetail . dead . https://web.archive.org/web/20160803062803/http://palmnews.mpob.gov.my/palmnewsdetails/palmnewsdetail.php?idnews=3031 . 3 August 2016 . 30 May 2016 . Malaysian Palm Oil Board.
  15. Web site: Green Rankings 2012: Global Companies. The Daily Beast.
  16. Web site: Aftenposten: Oljefondet kvittet seg med "verdens verste selskap" (in Norwegian) . aftenposten.no. 30 May 2016.
  17. Web site: Sindre Heyerdahl, E24. "OLJEFONDETS GIGANTTAP PÅ AKTIV FORVALTNING: Mener Gjedrem bløffer om investeringene" (in Norwegian). . Heyerdahl. Sindre. 11 March 2009 . e24.no. 30 May 2016.
  18. Web site: Our History Goodman Fielder . 2022-12-29 . goodmanfielder.com . en-US.
  19. Web site: Raising the bar on palm oil: Wilmar using satellites to track deforestation, Corbion signs up to sustainable network.
  20. Web site: Tracking sustainable palm oil: Unilever uses geospatial analytics for "sophisticated" deforestation crackdown.
  21. Web site: 5 May 2020. Top palm oil producer Wilmar drops out of climate change group ASEAN Today. 4 January 2022. www.aseantoday.com. en-US.
  22. Web site: Wilmar debuts on Dow Jones Sustainability Index.
  23. Web site: Watchdogs lament palm oil giant Wilmar's exit from forest conservation alliance. 8 April 2020. Mongabay Environmental News.
  24. Web site: Wilmar inks sustainability-linked loan. www.world-grain.com.
  25. Web site: 'PZ committed to boost economy'. 14 August 2020.
  26. Web site: World's biggest palm oil trader shamed | Friends of the Earth Europe | Company involved in forest fires, deforestation and illegal activities . foeeurope.org. 30 May 2016. April 30, 2022. https://web.archive.org/web/20220430122358/https://friendsoftheearth.eu/press-release/worlds-biggest-palm-oil-trader-shamed/.
  27. Web site: Communities force Wilmar to address bad practices. Down To Earth. 31 December 2014.
  28. Web site: REPORT: Palming off a National Park: Tracking Illegal Palm Oil Fruit in Riau, Sumatra. World Wildlife Fund. 31 December 2014. December 31, 2014. https://web.archive.org/web/20141231104458/http://wwf.panda.org/about_our_earth/about_forests/?209261/REPORT-Palming-off-a-National-Park-Tracking-Illegal-Palm-Oil-Fruit-in-Riau-Sumatra.
  29. Web site: STATEMENT FROM THE RSPO ON THE IMPORTANCE OF TRANSPARENT AND RESPONSIBLE SOURCING OF FRESH FRUIT BUNCHES . Roundtable On Sustainable Palm Oil. 31 July 2013. 31 December 2014.
  30. Web site: Perusahaan Grup Wilmar dan Sinar Mas Paling Banyak Menyumbang Titik Api. 11 November 2015.
  31. Web site: Oreo maker linked to destruction of orangutan habitat for palm oil in Indonesia. 13 November 2018 . Greenpeace.org . 16 November 2018 .
  32. Web site: Palm oil giant Wilmar unfazed as watchdogs cry foul over Papua deforestation. 8 December 2020. Mongabay Environmental News.
  33. Web site: FOEI. Ugandan oil palm conglomerate taken to court over land-grab claims. Foei.org (FOEI). 26 February 2016. 19 February 2015.
  34. Web site: Ugandan farmers take on palm oil giants over land grab claims. Alon . Mwesigwa. The Guardian. 3 March 2015. 26 February 2016.
  35. Web site: Palm oil landgrab in Uganda: Wilmar International's violations in Kalangala Island. 26 February 2016. FOEI. Libcloud.s3.amazonaws.com. https://web.archive.org/web/20160304102200/http://libcloud.s3.amazonaws.com/93/7b/3/3078/Issue_Brief_5_-_Wilmar_in_Uganda.pdf. 4 March 2016. dead.
  36. The Land Grab – Uganda's farmers battle with palm oil producers. https://ghostarchive.org/varchive/youtube/20211221/w21NJGbtBuQ . 21 December 2021 . live. 12 July 2015. YouTube.
  37. Web site: Statement concerning UNDP, Business Call to Action and Bidco Africa Ltd..
  38. Web site: Social and Environmental Compliance Unit - Case Registry. info.undp.org.
  39. Web site: UNDP to Investigate Rights Violations at BIDCO. NBS TV Uganda. 29 May 2016. YouTube.
  40. Web site: Bidco is not fit to join UNDP's project – UN. dead. https://web.archive.org/web/20161119144140/https://www.the-star.co.ke/news/2016/11/18/bidco-is-not-fi-t-to-join-undps-project-un_c1457644. 19 November 2016. The Star.
  41. Web site: Human rights abuses in your shopping basket. www.amnesty.org. 30 November 2016. April 30, 2022. https://web.archive.org/web/20220430121952/https://www.amnesty.org/en/latest/news/2016/11/sustainable-palm-oil-abuse-exposed/.
  42. https://www.amnesty.org/en/documents/asa21/5184/2016/en/ THE GREAT PALM OIL SCANDAL: LABOUR ABUSES BEHIND BIG BRAND NAMES
  43. Web site: No Deforestation, No Peat & No Exploitation Policy . 5 December 2013 . Wilmar International . 16 October 2021.
  44. Web site: 5 December 2013 . TFT and Climate Advisers Welcome Wilmar's Transformative Policies to Protect Forests and People | Climate Advisers . Climate Advisers . climateadvisers.com . 30 May 2016.
  45. Web site: 48 hours that changed the future of rainforests . Johnson . Nathanael . 2 April 2015 . Grist Magazine, Inc. . grist.org . 30 May 2016.
  46. News: Wilmar's 'no deforestation' commitment could revolutionise the way food is grown . Poynton . Scott . The Guardian . 29 January 2014 . 30 May 2016.
  47. Web site: Singapore businesses mark 10 years of CSR push | News | Eco-Business | Asia Pacific. eco-business.com. 30 May 2016.

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