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La Fabril's Membership Suspended Due to Community Issues
La Fabril's Membership Suspended Due to Community Issues
News Jun 27, 2022

Suspension of La Fabril's Earthworm Membership

2-minute read

La Fabril has been an Earthworm Foundation (EF) member since February 2017. Since the beginning of the membership, EF has worked with La Fabril on the sustainability of its own operations as well as those of its supply chain.

Earthworm recognises the effort La Fabril has made in developing and implementing its sustainability policy including actions taken towards and monitoring no deforestation, putting in place grievances mechanisms, engaging suppliers, and supporting smallholders to strengthen sustainable practices. Nevertheless, in recent months, a difference in approach has emerged in how to deal with a conflict involving Energy Palma, a company under the La Fabril group, and a neighbouring community.

In 2021, Earthworm became aware of a lawsuit that Energy Palma had launched against community leaders in 2020, with litigation ongoing to this day. Earthworm repeatedly advised the company to initiate an extrajudicial mediation process aimed at creating a space for dialogue and conflict resolution.

Considering that the lawsuit is still active and the extrajudicial mediation process hasn’t been initiated, Earthworm has informed La Fabril that its membership is suspended, effective immediately. Membership may be reinstated if Energy Palma commits to taking immediate action on this specific case and managing relations with the community in a way that generates mutually beneficial solutions.

Earthworm keeps open the possibility of supporting the company on its path towards sustainability, as long as La Fabril publicly agrees to a time-bound action plan to remedy this issue within 30 days of the suspension coming into effect and starts a transparent, participatory, accessible and equitable dialogue process; one that allows for sustainable and mutually beneficial solutions with the communities in conflict.

Versión en Español

La Fabril es miembro de Earthworm Foundation (EF) desde febrero de 2017. Desde el inicio de la membresía, Earthworm ha trabajado con La Fabril en la sostenibilidad de sus operaciones propias, así como las de su cadena de suministro.

Earthworm reconoce el esfuerzo que ha realizado La Fabril en el desarrollo e implementación de su política de sostenibilidad, incluidas las acciones realizadas y el monitoreo de no deforestación, la implementación de mecanismos de quejas, el trabajo con sus proveedores y el apoyo a los pequeños agricultores para fortalecer las prácticas sostenibles. Sin embargo, en los últimos meses ha surgido una diferencia de enfoque en la forma de enfrentar un conflicto que involucra a Energy & Palma, empresa del grupo La Fabril, y una comunidad vecina.

En 2021, Earthworm tomó conocimiento de una demanda que Energy & Palma había iniciado el 2020 contra líderes comunitarios, con litigios en curso que se mantienen hasta el día de hoy. Earthworm aconsejó reiteradamente a la empresa que iniciara un proceso de mediación extrajudicial con el objetivo de generar un espacio de diálogo y de resolución de conflictos.

Teniendo en cuenta que la demanda sigue activa y no se ha iniciado el proceso de mediación extrajudicial, Earthworm ha informado a La Fabril que se suspende su membresía con efecto inmediato. La membresía puede ser restablecida si Energy & Palma se compromete a tomar medidas inmediatas en este caso específico y gestionar las relaciones con la comunidad de manera que genere soluciones mutuamente beneficiosas.

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