Produced by Dutch not-for-profit organization, the Centre for Research on Multinational Corporations (SOMO), the report focuses on a case study of sugar production at Illovo Sugar Malawi, a subsidiary of AB Sugar, which it says unearths details of labour rights violations as well as a land grab.
AB Sugar is itself a subsidiary of UK-headquartered Associated British Foods. It said the report, entitled Bittersweet – Sustainability Issues in the Sugar Cane Supply Chain, used data from inappropriate sources and was based on a series of inaccuracies.
But at a time when sugar production and consumption is increasing globally and awareness of health concerns linked to excessive sugar consumption are rising, there is less awareness of the “often problematic socio-economic and environmental conditions associated with sugar cane production”, the report says.
From an employment point of view, the report highlights issues such as forced labour, child labour, lack of job security, low wages, and health and safety problems. As for environmental impacts, it talks about loss of animal habitats and biodiversity, pollution of land and water as well as land grabs.
In response to the report, AB Sugar put out the following statement: “With limited detail, SOMO has attempted to use Illovo Sugar Malawi (ISML) as a case study to gain publicity at the expense of accuracy. ISML is not, and has never been, involved in ‘land grabs’.
SOMO's advice to companies that use sugar:
Commit to sourcing sustainably certified sugar cane
Investigate human rights and environmental impacts in your supply chains
Identify sugar cane plantations and mills at the origin of your supply chain.
Verify compliance with your policies
Launch targeted and coordinated engagements with different stakeholders in producing and importing countries to mitigate.
Support sugar cane producing companies that have a good human right and environmental record
Publish the names of the sugar producers you use for public examination
“It is therefore regrettable that our leading approach to land has not been recognised nor our internationally acclaimed land guidelines. It is also regrettable that ISML’s significant contribution to the livelihoods and economies of the Malawian communities has been ignored.”
On its website AB Sugar Ltd said that it continues to review and develop its approach to environmental and social challenges: “Of particular note is the work undertaken over the last year by Illovo to protect land rights in Africa. It has a zero tolerance to land grabs and has introduced specific guidelines to help its employees and suppliers to conduct business in compliance with local legislative frameworks and internationally accepted best practice standards.”
The report’s summary says that buyers are seldom interested in knowing the source of the sugar they source.
But a spokesperson for the UK industry group, the Food and Drink Federation (FDF), said: “The report highlights that companies are taking action to ensure their responsible sourcing of sugar. Actions taken include company buyers encouraging refiners to implement a policy to import sugar from audited suppliers.”
In its conclusion, the report states that at most 4.5% of global sugar cane product is sustainability certified. In response to this figure, AB Sugar said it was puzzled as to how the authors had got to that number and therefore could not comment.
But the FDF spokesperson said: “We expect to see the percentage of sustainably certified sugar cane production to grow in coming years, but this growth will need to be driven by those major cane consuming markets listed in the report, with support from EU refiners and end users.”
SOMO's report can be downloaded for free here.