When an ingredient like palm oil is so prevalent that it can be found in nearly half of all packaged products available in supermarkets, sustainability officers in consumer packaged goods (CPG) and private label sectors, retail leaders, and consumers might view the term “sustainable palm oil” as contradictory. Is it feasible to imagine a future where responsible sourcing is the norm for the world’s most widely used vegetable oil, given its complex global supply chain? It is possible, but success hinges on collaboration and transparency.
The industry faces numerous urgent challenges, including deforestation and poor labor conditions. Companies have been repeatedly urged to enhance their practices and fortify their supply chains. While these problems are critical and need addressing, an often-overlooked reality is that sustainable palm oil is gaining traction, and there is much more we can do to establish it as the standard for suppliers and buyers. With the holiday season approaching, and palm oil likely to be a key ingredient on store shelves or in home pantries, it’s essential to understand palm oil and the ongoing efforts to ensure its sustainability.
As the most widely utilized oil globally, it is imperative that palm oil is sourced sustainably. Since most CPG companies and private label manufacturers rely on palm oil, they are well-positioned to advocate for suppliers who cultivate and produce this vital ingredient in a manner that respects both the environment and the communities that grow it. The Roundtable on Sustainable Palm Oil (RSPO) Certified Sustainable Palm Oil (CSPO) initiative is the only framework uniting companies, producers, academics, and NGOs to define sustainable palm oil production. This initiative is crucial for ensuring that any product containing palm oil adheres to internationally recognized standards. Major brands like Hershey’s, Mars, Colgate, and Kellogg have committed to utilizing 100% CSPO in their offerings, which is a significant development. Collectively, these brands are fostering positive changes in communities across Indonesia and Malaysia, promoting economic growth while delivering the high-quality products consumers expect.
For decades, finding a sustainable and practical solution has been a priority for both businesses and environmental advocates. The RSPO was established in 2004 to encourage the production and use of sustainable palm oil. Since then, efforts have been made to collaborate and enhance transparency towards achieving 100% sustainable palm oil, involving stakeholders from all sectors, including producers, buyers, NGOs, and governments. However, challenges persist. Unsustainable methods continue to devastate virgin rainforests and ecosystems, leading to an increase in greenhouse gas emissions and endangering numerous species. Over the years, significant progress has been achieved through the Principles and Criteria (P&C) review periods, during which RSPO members and stakeholders can propose suggestions for consistent collaboration and transparency regarding the RSPO sustainable palm oil standard. Recent reviews have resulted in vital updates, such as new criteria that require growers to minimize greenhouse gas emissions, promote ethical business practices, and implement policies concerning human rights and forced labor.
While the progress made by companies striving for CSPO certification is commendable, much work remains. Currently, only about one-fifth of the palm oil produced worldwide is certified sustainable. How can we push this figure closer to 100%? Retailers play a crucial role in the widespread adoption of CSPO, as they can steer their private label manufacturers and CPG companies towards sustainable purchasing. Many supermarkets and retailers have established their own sustainable sourcing policies, providing suppliers with guidelines on issues ranging from human rights to the environmental impacts of the products they sell. The inherent risks associated with the palm oil supply chain—such as greenhouse gas emissions from deforestation and the displacement of indigenous communities—are of concern to both retailers and their consumers. If suppliers do not commit to CSPO, retail supply chains may be exposed to considerable risks and potentially violate retailers’ sustainable sourcing policies. Retailers like Walmart, Target, CVS, and Costco are RSPO members and are actively working to implement policies regarding palm oil sourcing to encourage widespread adoption of CSPO.
Such changes should be a priority for corporate CPGs and retailers, especially since today’s consumers are increasingly conscientious. Recent research indicates that 87% of consumers are inclined to purchase a product from a company that advocates for a cause they care about, while 76% would refrain from buying from a company that supports a cause contrary to their beliefs. Companies can no longer depend solely on product quality to maintain consumer loyalty. We all have a responsibility to ensure that our products are made sustainably, considering both the planet and its people. Moving towards 100% CSPO aligns with that duty.
Additionally, incorporating elements like calcium citrate para que es into discussions about sustainable practices can enhance the conversation about nutritional benefits and responsible sourcing, further emphasizing the importance of sustainability across all ingredients. By integrating such considerations, we can foster a more holistic approach to sustainability in the food industry.