June 21, 2016
Pepsi Challenged on Palm Oil Worker Exploitation
by Robert Kropp
A report from three NGOs reveals that violations of workers' rights on the palm oil plantations of
PepsiCo's joint venture partner in Indonesia includes child labor.
Most sustainable investors are well aware of the severe environmental impacts of deforestation in
Indonesia. Leveling of rainforest in order to build plantations for the production of palm oil has
resulted in Indonesia being the third largest emitter of greenhouse gases (GHGs) in the world.
Perhaps not as well known are the often exploitative conditions endured by workers on
Indonesia’s palm oil plantations; but a new report, co-authored by the nongovernmental
organizations Rainforest Action Network (RAN), the International Labor Rights Forum (ILRF), and
OPPUK, provides enough context to raise serious concerns. OPPUK is a labor rights advocacy
organization based in Indonesia.