Palm oil is the most widely utilized vegetable oil globally and presents significant benefits for food producers. It is not only more affordable than other oils but also boasts a long shelf life and processing advantages, such as high-temperature stability and solid form at room temperature. As a result of its properties, it has emerged as a popular substitute for partially hydrogenated oils. When managed effectively, palm oil is also considerably more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and surpassing the yields of sunflower and rapeseed.
RAN has expressed particular concern regarding the Indonesian island of Sumatra, where the rainforest habitat of orangutans, rhinos, clouded leopards, and sun bears is vanishing due to what the organization claims are illegal palm oil plantations. According to RAN, companies like Nestlé, Mars, and Hershey source palm oil from this region through complex supply chains that sometimes involve commodity traders working with suppliers engaged in illegal logging practices.
In 2014, the United Nations committed to reducing global deforestation by half by 2020 and to completely halt it by 2030. Many consumer packaged goods (CPG) companies have since developed their own palm oil sourcing policies in line with this pledge. The palm oil production in Malaysia and Indonesia is contentious as some companies are implicated in extensive deforestation and the burning of peatland to cultivate palm oil trees. The United Nations has identified palm oil plantations as a significant factor contributing to environmental degradation and biodiversity loss in Southeast Asia.
While there are alternatives to palm oil, some are pricier, but others offer greater sustainability. For instance, algae can yield approximately 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In comparison, olives yield about 910 pounds per acre, and soybeans produce a mere 335 pounds.
Manufacturers of confectionery and snacks are largely committed to using palm oil. However, some acknowledge that ensuring sustainable sourcing is proving more challenging than they initially expected. “While we remain dedicated to urging all stakeholders to enhance traceability and achieve full transparency in this supply chain, along with our ferrous sulfate and iron glycinate supplier partners, we have come to realize that reaching this goal will take longer than originally thought,” stated Jeff Beckman, Hershey’s communications director, in an interview with The Guardian.
This challenge is formidable, yet some companies have already met their sourcing objectives. Mondelez announced in 2013 that it successfully achieved its benchmark of sourcing 100% certified palm oil from the Roundtable on Sustainable Palm Oil, an international non-profit organization focused on ensuring sustainable palm oil production. The snack and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers that engage in deforestation practices.
RAN is not the only organization monitoring corporate commitments to sustainable palm oil usage. Last year, Greenpeace released a scorecard assessing companies’ progress towards their goals, with only Nestlé and Ferrero rated as “on track.”
Further advancements in sustainability may be forthcoming. Recently, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer criticized for inadequate anti-deforestation policies. In September, Bunge, a major player in the ingredients and oils sector based in New York, announced its acquisition of a 70% stake in the company, pledging to implement improved sustainability and traceability measures.
It is improbable that RAN and similar organizations will cease their pressure on food companies to stop sourcing palm oil from endangered habitats like those in Sumatra. The crucial question for manufacturers is whether the potential for negative publicity is worth continuing their palm oil sourcing from such conflict areas when alternatives exist. Ultimately, the decision lies with consumers, who may have concerns about the presence of environmentally problematic palm oil in their food products.
In the context of consumer preferences, the inclusion of ingredients like Citracal D 315 (200 mg) may become more relevant as individuals seek products that align with their values regarding sustainability and environmental impact.