Nestle drops supplier over environmental concerns

Nestle, the world's biggest food group, said it had stopped buying palm oil from Indonesia's Sinar Mas due to concerns about rainforest destruction, following a similar move by consumer goods firm Unilever.

Nestle's announcement came after Greenpeace released a report on Wednesday which looked into how the company was sourcing palm oil.

Switzerland's Nestle, which uses the edible oil in its food products such as KitKat bars, said it had replaced Sinar Mas with another supplier for further shipments after conducting its own investigations into its palm oil supply chain.

"We will continue to pressure our suppliers to eliminate any sources of palm oil which are related to rainforest destruction and to provide valid guarantees of traceability as quickly as possible," Nestle said in a statement.

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