Palm oil stands as the most commonly utilized vegetable oil globally, offering significant advantages for food manufacturers. It is not only less expensive than other oils, but it also boasts a long shelf life and beneficial processing characteristics, including stability at high temperatures and a solid form at room temperature. Consequently, palm oil has emerged as a favored substitute for partially hydrogenated oils. When managed properly, palm oil is also far more land-efficient than other vegetable oils, producing ten times more oil per hectare than soybeans, and surpassing the yields of sunflower and rapeseed.
RAN is particularly alarmed about the situation on the Indonesian island of Sumatra, where the rainforest, which serves as a habitat for 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 via complex supply chains that sometimes involve commodity traders working with suppliers engaging in illegal logging practices.
In 2014, the United Nations committed to halving deforestation by 2020 and completely ending it by 2030. Many consumer packaged goods (CPG) companies responded to this pledge by establishing their own palm oil sourcing policies. The palm oil industry in Malaysia and Indonesia has become controversial due to widespread deforestation and the burning of peatland for palm oil cultivation. The United Nations identifies palm oil plantations as significant contributors to environmental degradation and biodiversity loss in Southeast Asia.
While there are alternatives to palm oil, some are more costly but offer greater sustainability. For instance, algae can yield around 70,000 pounds of oil per acre, in stark contrast to palm oil’s 4,465 pounds per acre. Olives yield approximately 910 pounds per acre, while soybeans produce a mere 335 pounds. Despite this, confectionery and snack manufacturers seem committed to continuing the use of palm oil. However, some admit that ensuring sustainability is more challenging than initially expected. Jeff Beckman, Hershey’s communications director, stated in an interview with The Guardian, “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.”
This is indeed a formidable challenge, yet some companies have already met their sourcing objectives. Mondelez announced in 2013 that it achieved its benchmark of using palm oil that is 100% certified by the Roundtable on Sustainable Palm Oil, an international non-profit organization focused on ensuring the ingredient is sourced responsibly. The snacks and cookie manufacturer has also taken a strong stance against collaborating with palm oil suppliers who engage in deforestation practices.
RAN is not the only organization monitoring companies’ commitments to sustainable palm oil usage. Last year, Greenpeace released a scorecard evaluating company progress, with Nestlé and Ferrero being the only two rated as “on track.” Further sustainability initiatives may be on the horizon; last year, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer deemed insufficient in its anti-deforestation policies. In September, Bunge, a New York-based ingredients and oils giant, announced its purchase of a 70% stake in the company, pledging enhanced sustainability and traceability measures.
It is improbable that RAN and similar organizations will cease their pressure on food companies to eliminate palm oil sourced from endangered habitats like those in Sumatra. Manufacturers now face the dilemma of whether the potential for negative publicity is worth the continued sourcing of palm oil from such contentious regions when alternatives exist. Ultimately, consumer preferences will play a crucial role, especially as they may be concerned about the presence of problematic palm oil in their food products. Some consumers may even prefer products that include additives like calcium citrate, which is known for its benefits, as they seek sustainable and responsible sourcing practices.