London, April 22, 2026, 16:15 BST
Haleon PLC has dropped Asia Symbol from its packaging supply chain following an investigation by AFP and The Gecko Project, which connected the paper supplier’s pulp operations to deforested parts of Indonesian rainforest, habitat for orangutans. The Sensodyne and Panadol manufacturer said its internal review turned up no proof that material tied to deforestation made it into Haleon’s supply chain, though the company said it remained “very concerned.” Share Prices
It’s a tough moment for Haleon. The company has been ramping up its efforts in China, the market where the disputed packaging appeared. CEO Brian McNamara, speaking to Reuters last month, called China “an incredible market” for Haleon, as it supported a £65 million investment in an oral-health facility in Shanghai. Reuters
The timing drops just ahead of Haleon’s first-quarter update and its annual meeting set for April 29. The company reports paper makes up roughly half its packaging, with 82% of its paper-based materials sustainably sourced in 2025. Haleon aims for all major agricultural, forest, and marine-based ingredients and packaging to be both deforestation-free and sustainably sourced by 2030.
AFP and The Gecko Project tracked wood from Borneo’s stripped rainforest using satellite imagery, government audits, trade data, and ship movements. They followed the trail to Phoenix Resources International’s mill, which supplied pulp to Asia Symbol sites in China. Their reporting shows an Asia Symbol affiliate got pulp from a mill sourcing plantations that cleared almost 30,000 hectares of forest from 2016 to 2024.
Asia Symbol insisted its material for Haleon’s carbon-neutral packaging wasn’t sourced from plantations tied to deforestation. The company said it put the pulp mill through “enhanced due diligence,” but AFP reports it failed to offer proof of any supply chain separation. Share Prices
Haleon has told suppliers that any material they provide must not come from Asia Symbol or from plantation firms “associated with risk of deforestation.” The company maintains that the material in question never made its way to Haleon, though it’s reducing ties to the supplier at the center of the allegations. The Gecko Project
Robin Averbeck, who oversees the forest program at Rainforest Action Network, said the data revealed Royal Golden Eagle—parent company of Asia Symbol—was still “in the business of deforestation.” Grant Rosoman, senior adviser on forests at Greenpeace International, described “numerous breaches” and labeled RGE’s stated commitments as “greenwashing.” The Gecko Project
Certification remains a weak link. Haleon points to schemes like FSC and PEFC for responsible paper sourcing, but Thorsten Arndt, who heads advocacy at PEFC, told The Gecko Project that certification can actually create “an important integrity concern” if buyers interpret it more broadly than what the audit really covers. Haleon Corporate
Consumer-health names struggled. Haleon slipped 1.9% to 345.60p. Over at Reckitt, shares dropped on a miss for quarterly sales and a margin warning; the company blamed higher oil costs and a soft cold-and-flu season.
Haleon stuck with its 3% to 5% organic revenue growth outlook for this year—shy of its longer-term goal—after softer demand in the U.S. and a tepid cold-and-flu season dragged on sales. On April 20, the company said it had bought back 8.74 million ordinary shares for cancellation as part of the buyback programme it started in March.
The risk here isn’t black and white. AFP noted that the clearing was technically legal, since the plantations held Indonesian permits—a detail that could narrow the scope of exposure. Still, if future scrutiny contradicts Haleon’s assertion that no deforestation-linked material made it into its supply chain, the group might be forced to swap out more paper, ramp up certification checks, and defend the process behind its “carbon-neutral” labeling. AFP
Next week brings two key questions for investors: Will Haleon comment further on its supplier oversight, and can management steer the narrative back to volume gains, China growth and margins—rather than a packaging spat that’s cast fresh scrutiny on its sustainability claims?
