CHICAGO: The world's two largest consumer goods companies, Nestle and Procter & Gamble , told Reuters this week that they will fall short of their goals to only source key ingredients that do not contribute to deforestation by 2020.
Separately, Procter & Gamble - whose Tide detergent and Olay skincare products use palm oil - says on its website that it aims"to establish zero deforestation in our supply chain by 2020." But on Sunday, a Procter & Gamble spokesman confirmed to Reuters that it would not meet the deforestation goal by 2020.
Nestle and P&G, respectively the world's biggest packaged goods companies by market capitalization, made these pledges in 2010 at the urging of the Consumer Goods Forum, an industry trade group.Hundreds of companies made zero deforestation pledges by 2020, according to the CGF. Ignacio Gavilan, the director of sustainability of CGF, told Reuters its member companies had underestimated increasing demand for consumer goods and lax government forest regulations.