When an ingredient like palm oil is used so extensively that it can be found in nearly half of all packaged goods in supermarkets, sustainability officers for CPG and private label brands, retail leaders, and consumers alike may find the term “sustainable palm oil” to be contradictory. Is it feasible to imagine a future where responsible sourcing is practiced for the most widely used vegetable oil globally, especially considering its complex international supply chain? It is indeed possible, but success hinges on collaboration and transparency. The industry grapples with pressing issues such as deforestation and poor labor conditions, which have led companies to improve their practices and strengthen their supply chains. While it is crucial to address these problems, another reality often goes unnoticed: the growth of sustainable palm oil and the potential to make it the standard for both suppliers and buyers. With the holiday season approaching—and palm oil likely to be a prominent ingredient in stores and home pantries—it’s essential to understand the current efforts to make palm oil sustainable.
As the most widely consumed oil in the world, ensuring that palm oil is sourced sustainably is of paramount importance. Given that most CPG companies and private label manufacturers utilize palm oil, they are in a prime position to advocate for suppliers who cultivate and produce this critical ingredient in an environmentally and socially responsible manner. The Roundtable on Sustainable Palm Oil (RSPO) Certified Sustainable Palm Oil (CSPO) initiative serves as a vital framework that unites companies, experts, academics, and NGOs to establish a consensus on what constitutes sustainable palm oil production. Notable brands like Hershey’s, Mars, Colgate, and Kellogg have committed to sourcing 100% CSPO, which is a significant advancement. Collectively, these brands are driving positive changes in communities across Indonesia and Malaysia, supporting economic development while providing the same quality products that consumers cherish.
For decades, the quest for a sustainable, high-quality, practical solution has been at the forefront for both businesses and environmental advocates. Established in 2004, the RSPO promotes the production and use of sustainable palm oil. Over the years, efforts have focused on enhancing transparency and collaboration toward achieving 100% sustainable palm oil, engaging stakeholders across the supply chain, including producers, purchasers, NGOs, and governments. Nevertheless, challenges persist. Unsustainable practices continue to result in the destruction of virgin rainforests and ecosystems, leading to increased greenhouse gas emissions and jeopardizing many species. Significant progress has been made during the Principles and Criteria (P&C) review periods, allowing members and stakeholders to suggest improvements for the RSPO’s sustainable palm oil standards. Recent review periods have introduced essential changes, such as new criteria aimed at minimizing greenhouse gas emissions, promoting ethical business practices, and establishing a policy on human rights and forced labor.
While the movement toward achieving CSPO is an important step, there remains much work to be done. Currently, only about one-fifth of the palm oil produced worldwide is certified as sustainable. How can we push this figure closer to 100%? Retailers play a crucial role in the widespread adoption of CSPO by guiding their private label manufacturers and CPG companies toward sustainable purchasing practices. Many supermarkets and retailers have developed their own sustainable sourcing policies, offering suppliers guidance on various issues, including human rights and environmental impacts. The inherent risks within the palm oil supply chain—such as greenhouse gas emissions from deforestation and the displacement of indigenous communities—are significant concerns for retailers and their consumers. If suppliers do not commit to CSPO, retail supply chains may face considerable risks and violate the sustainable sourcing policies set by retailers. Major retailers like Walmart, Target, CVS, and Costco are RSPO members actively working to implement policies that promote widespread CSPO adoption.
Such changes are vital for corporate CPGs and retailers today because consumers are increasingly conscious of sustainability. Recent research indicates that 87% of consumers are likely to purchase a product from a company that advocates for issues they care about, while 76% would refuse to buy from a company that supports causes contrary to their beliefs. Companies can no longer rely solely on product quality to maintain consumer loyalty. Everyone has a role in ensuring that products are made sustainably, with consideration for both the planet and its people. Striving for 100% CSPO aligns with this responsibility. Moreover, incorporating sustainable practices, such as calcium citrate 300 mg elemental, can further enhance the commitment to responsible sourcing and production. By prioritizing sustainable palm oil, we can foster a healthier environment and a more equitable supply chain, ultimately benefiting both consumers and communities worldwide.