Nestle has pledged to only use sustainably-sourced palm oil by 2015.

Greenpeace has praised Nestlé after the company announced it was to stop using products that come from rainforest destruction – such as the use of palm oil in its KitKat chocolate bars.

Palm oil is used in a variety of products, such as chocolate, cosmetics and toothpaste. The vast plantations needed to cultivate it are steadily encroaching into Indonesia’s rainforests and the habitats of already-endangered orang-utans.

This, according to Greenpeace, has led to Indonesia having one of the fastest rates of forest destruction, and becoming the third largest greenhouse gas producer in the world. The environmental organisation had launched a two-month campaign against Nestlé, urging consumers to put pressure on the company not to use products from rainforest destruction.

Pat Venditti, Greenpeace International Forest Campaign Head, said: “We are delighted that Nestlé plans to give orang-utans a break and we call on other international retailers, such as Carrefour and Wal-mart, to do the same. Since the beginning of our campaign, hundreds of thousands of people have contacted Nestlé to say that they will not buy products linked to rainforest destruction.”

In a statement, Nestlé said: “[We] view destruction of tropical rainforests and peatlands as one of the most serious environmental issues facing us today.  At the recent Annual General Meeting our Chairman Peter Brabeck-Letmathe reinforced this position and repeated our support for a moratorium on the destruction of rainforests.

“He invited all concerned parties, including Greenpeace, to join this initiative. We are taking concrete actions to make this commitment a reality.”

These actions include not using companies in its supply chain that “own or manage high risk plantations or farms linked to deforestation”, such as one of Indonesia’s biggest palm oil and pulp suppliers, Sinar Mas, if it fails to meet Nestlé’s new criteria.

It has also pledged to only use sustainably-sourced palm oil by 2015, and has announced a partnership with non-profit deforestation organisation The Forest Trust (TFT). Scott Poynton, TFT’s Executive Director, said: “For the first time ever, a global company is saying that it doesn’t want its products to have a deforestation footprint, and it is taking action to live up to its words.

“The impact of Nestlé’s announcement is huge because the company is so important globally. Nestlé does not use a huge volume of palm oil or pulp and paper compared to other companies. The focus for the first time is on products, and if Nestlé’s decision inspires other companies to engage in the same process, we can stop wringing our hands about carbon baselines and forest carbon markets.”

Nestlé only buys 0.7% of world palm oil production, and Greenpeace is keen to see other companies – and the Indonesian government – take action too. Bustar Maitar, Greenpeace South East Asia Forest Team Leader, said: “The Indonesian government must also take tough action against deforestation. It must protect our country’s carbon rich peatland and rainforests as well as the reputation of the palm oil and paper industries by establishing a moratorium on forest destruction and full peatland protection.

“In order to make this happen Greenpeace will continue to pressure both the Indonesian government and the palm oil and paper industries that are causing biodiversity and climate devastation.”