Golden Agri-Resources Ltd. (E5H.SG), a unit of the Sinar Mas Group, Monday joined the Roundtable of Sustainable Palm Oil, after coming under fire last year for not following sustainable plantation practices.

The move is seen as a bid by the Sinar Mas group, which also owns Jakarta-listed PT Sinar Mas Agro Resources and Technology Tbk (SMAR.JK), to clean up its image after deforestation charges by Greenpeace forced global consumer and food companies NestleN.V (NESN.VX), and Unilever Plc. (ULVR.LN) to stop sourcing palm oil from Smart.

Environmental group Greenpeace in a series of reports last year claimed that the firm cleared rain forests and drained peatlands for developing oil palm plantations.

Golden Agri, in a joint statement with the RSPO, said it "is committed to taking a leadership role and will work with multi-stakeholders to find solutions toward sustainable palm oil production."

"The company is committed to complying with the national laws and regulations and the RSPO principles and criteria," Golden Agri said.

Formed in 2004, the RSPO is formed by consumers, environmental groups, and planters to promote sustainable plantation practices via stringent certification processes.

"The RSPO will continue to work together with Golden Agri, Smart... to ensure that the companies continue to stay on track for the planned certification of all plantations by December 2015," it said.

-By Shie-Lynn Lim and Andreas Ismar, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com

 
 
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