New Britain cultivates and harvests palm fruit on its own land and contracts with small farms in Papua New Guinea and the Solomon Islands. The company then processes and refines the oil for its customers. As the demand for palm oil as a raw material in food and non-food items has increased over the last decade, the environmental and social impacts of growing palm have garnered attention, specifically deforestation and violation of human rights. New Britain recognizes the environmental and social impacts palm oil can have. The company has exceeded industry best practice of achieving Roundtable on Sustainable Palm Oil (RSPO) certification by partnering with other palm producers and leading environmental non-profits in the creation of the Palm Oil Innovation Group. The new organization aims to build upon RSPO’s standards to break the link between palm oil and deforestation along with other human, land, and labor violations. Additionally, the company adheres to the Precautionary Principle for all new plantation developments and has a progressive Forest Policy. The company utilizes integrated pest management techniques and works to limit the quantity of chemical inputs applied to its plantations.
New Britain’s commitments to environmental and social standards allow its customers to establish a competitive advantage by purchasing palm oil from a leader in traceable, responsibly grown palm oil. The company has undertaken a carbon footprint assessment for the majority of its operations, but Portfolio 21 has asked the company to establish a group-wide carbon reduction goal.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/13 and may not reflect current opinions or subsequent events.