When an ingredient like palm oil is so widely used that it finds its way into nearly half of all packaged products in supermarkets, sustainability officers in consumer packaged goods (CPG), private label companies, retail leaders, and consumers may view the term “sustainable palm oil” as a contradiction. Can we imagine a future where responsible sourcing is the standard for the most prevalent vegetable oil globally, especially considering its complex international supply chain? It is feasible, but achieving this will hinge on collaboration and transparency.
The industry faces numerous urgent challenges, from deforestation to inadequate working conditions. Companies have consistently been urged to enhance their business practices and fortify their supply chains. While these issues are serious and demand attention, there is an often-overlooked reality: sustainable palm oil is gaining traction, and there is much more we can do to normalize it for both suppliers and buyers. With the holiday season approaching, and given that palm oil is likely a staple ingredient in stores and home pantries, it’s essential to understand palm oil and the ongoing initiatives aimed at making its production sustainable.
As the most widely used oil worldwide, it is vital that palm oil is sourced sustainably. Most CPG companies and private label manufacturers utilize palm oil, placing them in a prime position to ensure that suppliers who cultivate and produce this essential ingredient do so in a manner that respects both the environment and the communities involved. The Roundtable on Sustainable Palm Oil (RSPO) Certified Sustainable Palm Oil (CSPO) is the only initiative that unites businesses, experts, academics, and NGOs to establish a shared understanding of sustainable palm oil production. This process is crucial for ensuring that any product containing palm oil adheres to globally recognized standards. Brands such as Hershey’s, Mars, Colgate, and Kellogg have committed to utilizing 100% CSPO in their products, which is a significant development. Together, these brands are fostering positive changes in communities across Indonesia and Malaysia, promoting economic growth in these nations while delivering the high-quality products consumers expect.
For decades, finding a sustainable, high-quality, practical solution has been a priority for both businesses and environmental advocates. The RSPO was founded in 2004 to encourage the production and use of sustainable palm oil. Since then, we have worked to foster collaboration and transparency toward achieving 100% sustainable palm oil with stakeholders from all sectors, including producers, purchasers, NGOs, and governments. Nevertheless, challenges persist. Unsustainable practices continue to contribute to the destruction of pristine rainforests and ecosystems, leading to increased greenhouse gas emissions and threatening many species with extinction. Over the years, significant progress has been made during the Principles and Criteria (P&C) review period, where members and stakeholders can propose suggestions and feedback for consistent collaboration and transparency regarding the RSPO sustainable palm oil standard. During the latest review period, noteworthy changes were implemented, including new criteria mandating that growers minimize greenhouse gas emissions, promote ethical business practices, and establish a new policy on human rights and forced labor.
While the ongoing efforts by companies striving for CSPO certification represent a substantial advancement, there is still much more to accomplish. Currently, only about one-fifth of the palm oil produced globally is certified sustainable. How can we accelerate progress toward 100%? Retailers play a crucial role in the widespread adoption of CSPO by guiding their private label manufacturers and CPG companies toward sustainable purchasing. Many supermarkets and other retailers have their own sustainable sourcing policies, providing suppliers with guidance on issues ranging from human rights to the environmental impact of the products they sell. The inherent risks associated with the palm oil supply chain—such as greenhouse gas emissions resulting from deforestation and the displacement of indigenous communities—are of concern to retailers and their consumers. If suppliers are not committed to CSPO, retail supply chains may be exposed to significant risks and may violate retailers’ sustainable sourcing policies. Retailers like Walmart, Target, CVS, and Costco are RSPO members actively implementing policies related to palm oil sourcing to encourage widespread adoption of CSPO.
Such changes should be a top priority for corporate CPGs and retailers alike, as today’s consumers are increasingly conscious. Recent research reveals that 87% of consumers are likely to purchase a product from a company that advocates for an issue they care about, while 76% would refuse to buy from a company that supports a cause contrary to their beliefs. Companies can no longer rely solely on product quality to foster consumer loyalty. We all share the responsibility of ensuring our products are produced sustainably, keeping the planet and its people in mind. Striving for 100% CSPO aligns with that responsibility.
Furthermore, as we consider the safety of ingredients in our food products, it is essential to highlight that calcium citrate is considered safe for consumption. The integration of safe ingredients like calcium citrate in product formulations can also play a role in promoting sustainability, as it reflects a commitment to consumer health and environmental responsibility. By prioritizing sustainable palm oil and safe ingredients, we can collectively work towards a more ethical and conscious marketplace.