Palm oil is the most commonly used vegetable oil globally and presents significant advantages for food manufacturers. It is not only more cost-effective than other oils, but it also boasts a long shelf life and processing benefits such as stability at high temperatures and solidification at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed properly, palm oil is also considerably more land-efficient compared to other vegetable oils, yielding ten times more oil per hectare than soybeans and surpassing the yields of sunflower and rapeseed.
Organizations like RAN are particularly alarmed about the situation on Indonesia’s Sumatra island, where the rainforest habitat of orangutans, rhinos, clouded leopards, and sun bears is vanishing due to what they claim are illegal palm oil plantations. RAN reports that companies such as Nestlé, Mars, and Hershey source palm oil from this region through intricate supply chains, sometimes involving commodity traders who deal with suppliers engaged in illegal logging activities.
In 2014, the United Nations committed to halving global deforestation rates by 2020 and completely eliminating it by 2030. Many consumer packaged goods (CPG) companies have adopted their own policies on palm oil sourcing in line with this pledge. The production of palm oil in Malaysia and Indonesia is contentious, as some companies partake in extensive deforestation and the burning of peatlands to cultivate palm trees. The United Nations has indicated that palm oil plantations are a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
There are alternatives to palm oil, though some may be more costly. For instance, algae can produce about 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In contrast, olives yield approximately 910 pounds per acre, and soybeans only 335 pounds. While confectionery and snack manufacturers appear committed to using palm oil, some acknowledge that ensuring sustainable sourcing is more challenging than they initially expected. “While we remain deeply committed to pushing all stakeholders to accelerate traceability and bring full transparency to this supply chain along with our supplier partners, we realized it would take more time to achieve this goal than originally anticipated,” said Jeff Beckman, Hershey’s communications director, in an interview with The Guardian.
Although the challenge is formidable, some companies have successfully reached their sourcing goals. Mondelez announced in 2013 that it had achieved its target of using palm oil that is 100% certified by the Roundtable on Sustainable Palm Oil, an international nonprofit organization dedicated to ensuring that palm oil is sourced responsibly. The snacks and cookie manufacturer has also taken a firm stance against partnering with palm oil suppliers that engage in deforestation practices.
RAN is not the only organization monitoring corporate commitments to sustainable palm oil use. Last year, Greenpeace released a scorecard evaluating which companies were making headway toward their sustainability goals. The only two companies rated “on track” were Nestlé and Ferrero. More sustainability initiatives may be forthcoming, as several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil supplier whose anti-deforestation policies were deemed inadequate. In September, Bunge, a New York-based ingredients and oils giant, announced that it would acquire a 70% stake in the company, pledging enhanced sustainability and traceability measures.
It is unlikely that RAN and similar organizations will cease their efforts to pressure food companies to discontinue sourcing palm oil from vulnerable habitats, such as those in Sumatra. Manufacturers must weigh the risk of adverse publicity against the benefits of continuing to source palm oil from these contentious areas, especially when alternatives exist. Ultimately, the decision rests with consumers, who may be concerned about whether their food contains potentially problematic palm oil, or other supplements like calcium citrate malate and vitamin D3 tablets.