Indonesia Orangutan Habitat Cleared for ‘Carbon-Neutral’ Packaging Supply Chain, Investigation Finds

Large areas of Indonesian rainforest that serve as habitat for endangered orangutans have been cleared for industrial plantations linked to the supply chain of a “carbon-neutral” packaging producer, according to an investigation by AFP and The Gecko Project .

The investigation found that pulp and paper company Asia Symbol sourced material from an Indonesian mill supplied by plantations responsible for clearing nearly 30,000 hectares of forest in Borneo between 2016 and 2024. The cleared land includes critical habitat for Bornean orangutans, a critically endangered species.

The plantations, operating with government permits, supply timber to the Phoenix Resources International (PRI) mill, which in turn provides pulp to Asia Symbol’s facilities in China. The company produces packaging marketed as “carbon-neutral,” including materials used by Haleon for products such as ibuprofen packaging.

Following the findings, Haleon said it would cut ties with Asia Symbol, citing concerns over deforestation risks in the supply chain .

Asia Symbol, part of the Royal Golden Eagle (RGE) group, maintains it has a no-deforestation policy and does not source wood from natural forests. However, the investigation traced timber from industrial forest plantations to its supply chain, raising questions about oversight and traceability. The company said supply chain complexity presents “real due diligence challenges” .

The environmental and social impacts have been significant. Local communities in Central Kalimantan reported increased flooding, loss of wildlife, and reduced access to farmland and livelihoods. Forest loss has also heightened ecological risks in one of the world’s most biodiverse regions.

While the deforestation is legal under Indonesian regulations, environmental groups argue it undermines sustainability claims tied to carbon-neutral products. Critics described such claims as “greenwashing,” pointing to continued forest clearance despite corporate commitments to deforestation-free sourcing .

The case underscores ongoing challenges in verifying sustainability claims in global packaging supply chains, particularly in regions facing competing pressures between economic development and forest conservation.