Wilmar International Ltd (WLIL.SI), the world's largest palm oil processor, could take longer than expected to convince small suppliers to comply with its push to be greener, its chief sustainability officer said.

Wilmar's "No Deforestation, No Peat, No Exploitation" policy was lauded when announced in December as a step toward a more sustainable industry. But small oil palm plantations in Malaysia and Indonesia fear the policy prevents them expanding into land Wilmar deems environmentally unsuitable.

"It is extremely difficult to first of all convince smallholders to come onboard," Jeremy Goon said at the Reuters Global Climate Change Summit. "The first time we went to meet them, no one showed up."

The Singaporean company processes nearly half of the world's palm oil for use in products ranging from biofuel to cooking oil to cosmetics. But practices at plantations such as clearing land through burning have depleted forests and caused smoke haze across Southeast Asia.

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