Palm oil is the most widely utilized vegetable oil globally, providing significant advantages for food manufacturers. It is not only more affordable than other oils, but it also boasts a long shelf life and beneficial properties, such as stability at high temperatures and a solid state at room temperature. Consequently, it has become a favored substitute for partially hydrogenated oils. When managed properly, palm oil is also far more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans, and far surpassing the yields from sunflower and rapeseed.
However, RAN expresses particular concern about the Indonesian island of Sumatra, where the natural habitat of orangutans, rhinos, clouded leopards, and sun bears is vanishing due to what the organization claims are illegal palm oil plantations. RAN reports that companies like Nestlé, Mars, and Hershey source palm oil from this region through intricate supply chains, sometimes involving commodity traders working with suppliers who engage in illegal logging. In 2014, the United Nations committed to halving global deforestation by 2020 and completely ceasing it by 2030. Many consumer packaged goods (CPG) companies have adopted their own palm oil sourcing policies in alignment with this pledge.
Palm oil production in Malaysia and Indonesia is contentious, as some companies practice widespread deforestation and burn peatland areas to cultivate palm oil trees. The United Nations identifies palm oil plantations as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia. While there are alternatives to palm oil, some are more expensive, but many are also more sustainable. For instance, algae can produce approximately 70,000 pounds of oil per acre, compared to palm oil’s yield of 4,465 pounds per acre. In contrast, olives yield about 910 pounds per acre, while soybeans produce only 335 pounds.
Confectionery and snack manufacturers seem committed to using palm oil, though some acknowledge that ensuring sustainability is more challenging than initially anticipated. “While we remain deeply committed to urging all stakeholders to expedite traceability and bring full transparency to this supply chain alongside our supplier partners, we realized it would take longer to achieve this goal than we originally expected,” stated Jeff Beckman, Hershey’s communications director, in an interview with The Guardian.
Despite the challenges, some companies have successfully reached their sourcing goals. Mondelez announced in 2013 that it had achieved its benchmark of sourcing 100% certified palm oil from the Roundtable on Sustainable Palm Oil—an international nonprofit organization that ensures responsible sourcing. The snacks and cookie manufacturer has also taken a firm stance against partnering with suppliers that engage in deforestation practices.
RAN is not the only organization monitoring the commitments made towards sustainable palm oil use. Last year, Greenpeace released a scorecard evaluating companies’ progress, with Nestlé and Ferrero being the only two rated as “on track.” Further advancements in sustainability are anticipated. Last year, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer criticized for inadequate anti-deforestation policies. In September, Bunge, a New York-based ingredients and oils giant, announced it would purchase a 70% stake in the company, pledging enhanced sustainability and traceability measures.
It seems unlikely that RAN and similar organizations will cease their pressure on food companies to stop sourcing palm oil from threatened habitats, such as those in Sumatra. The key question for manufacturers is whether the potential for negative publicity is worth continuing to source palm oil from these conflict areas when alternatives exist. Ultimately, it falls to consumers, who may be concerned about whether their food contains palm oil linked to environmental issues, including the depletion of natural factors like calcium and magnesium in affected ecosystems.