US food and drink company PepsiCo has announced that it will implement stringent rules on the use of palm oil in its products.

Under its new global policy on sustainable palm oil, it also intends to stop partnering with firms linked to deforestation.

Manufacturers use palm oil in many food products, including margarine and breakfast cereals. Those familiar with the industry believe the company to be a major international buyer of palm oil.

The new policy forms part of the company’s commitment to safeguarding and restoring peatlands.

The increasing production of palm oil to match its widespread use as edible oil causes deforestation on a large scale.

PepsiCo has committed to refusing to buy palm oil from suppliers involved in deforestation in the past four years.

The company will also implement initiatives to stop human rights violations among palm oil plantation workers.

An investigation by the Rainforest Action Network (RAN) in 2019 found that palm oil derived from an illegal plantation in Indonesia had entered into the supply chains of major brands, such as PepsiCo.

The company’s global policy on sustainable palm oil applies to its subsidiaries, joint ventures (JVs) and brands across the world.

RAN’s agribusiness campaign director Robin Averbeck reportedly said that, although several consumer goods firms have made similar commitments to their palm oil suppliers, PepsiCo has extended its policy to its business partners as well.