Carrefour drops products from Indonesia's APP

Wed Jul 7, 2010 1:07pm GMT

* Suspends sourcing of APP products until further notice

* Cites sustainability concerns

* Indonesia's APP calls allegations "ridiculous"

By Sunanda Creagh

JAKARTA, July 7 - French retail giant Carrefour (CARR.PA: Quote) said on Wednesday it will stop buying certain products from Indonesian paper firm Asia Pulp and Paper (APP), citing concerns over environmental sustainability.

The decision came a day after Greenpeace aired fresh accusations that APP -- owned by the Sinar Mas group -- was planning to destroy Indonesian rainforest and called on retailers including Carrefour to stop buying its products. [ID:nJAK226637].

APP has rejected the allegations as "ridiculous".

Preservation of rainforest and peatlands is seen as crucial to putting a brake on climate change because they trap vast amounts of greenhouse gases.   Continued...

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