ESG Enforcement Tracker

Key facts:

FGV Holdings is one of the biggest palm oil producers in the world.  Following a year-long investigation, in September 2020, CBP issued a withhold release order (WRO) against FGV, its subsidiaries and joint ventures, barring any shipments from Malaysia containing palm oil and palm oil products. WROs are authorised by section 1307 of the Tariff Act 1930. It was alleged that FGV Holdings’ operations revealed the presence of all 11 of the International Labour Organisation’s indicators of forced labour. This includes the isolation of workers (many were stationed on remote sites without internet access), the restriction of their movement, physical and sexual violence, retention of identity documents, abusive working and living conditions, and excessive working hours.

Following the order, Nural Ahamed, a human rights expert hired by FGV, put together a team of experts to overturn the ban. The company needed to demonstrate worldwide compliance with International Labour Organisation standards, to overturn the ban.

FGV hired human rights and legal experts to assist with overturning the ban. Legal counsel advised that as a first step, a “baseline” assessment of working conditions was needed across the business. The scope of the company presented challenges; FGV employed around 35,000 workers, and many of the sites were remote and placed across Malaysia, making them difficult to get to and inspect. The next phase was a remediation plan to address the company’s recruitment procedures, worker housing facilities, and strengthen grievance redress and union protocols.

The company reimbursed “recruitment fees” to thousands of workers, both past and present.

In June 2024, FGV Holdings asked CBP to reconsider their decision. The company’s submissions outlined the efforts made to remedy previous ethical and legal breaches (including bank statements, worker information, and narrative statements outlining their risk across the business).  After 20 months, US customs reached a decision and lifted the WRO. In January 2026, US customs released a statement about their decision, stating that they do not modify WROs until “the agency has evidence demonstrating that the producer of subject merchandise no longer produces, manufactures or mines the subject goods using forced labor”.