When an ingredient like palm oil is so extensively utilized that it can be found in nearly half of all packaged goods available in supermarkets, sustainability officers from consumer packaged goods (CPG) companies, retail leaders, and consumers may find the term “sustainable palm oil” to be contradictory. Can we imagine a future where responsible sourcing becomes the standard for the most commonly used vegetable oil worldwide, despite its complex global supply chain? It is indeed possible, but success will hinge on collaboration and transparency.
The industry continues to grapple with urgent issues such as deforestation and poor labor conditions. Companies are frequently urged to enhance their business practices and fortify their supply chains. While addressing these challenges is crucial, a frequently overlooked reality is that sustainable palm oil is gaining traction, and there is still much we can do to normalize it for suppliers and purchasers alike. With the holiday season approaching, and palm oil likely to be a prominent ingredient in stores and home pantries, it is essential to understand the efforts underway to promote sustainable palm oil.
Given that palm oil is the most widely utilized oil in the world, ensuring it is sourced sustainably is critical. Most CPG companies and private label manufacturers rely on palm oil, positioning them to advocate for suppliers who cultivate and produce this vital ingredient in a manner that honors both the environment and the communities involved. The Roundtable on Sustainable Palm Oil (RSPO) has established the Certified Sustainable Palm Oil (CSPO) initiative, which unites companies, experts, academics, and NGOs to reach a consensus on the sustainable production of palm oil. This initiative is vital for ensuring that any product containing palm oil adheres to globally recognized standards. Major brands such as Hershey’s, Mars, Colgate, and Kellogg have pledged to utilize 100% CSPO in their offerings, which is a significant commitment. Collectively, these companies are effecting positive changes in communities across Indonesia and Malaysia, fostering economic development while delivering the quality products that consumers cherish.
For decades, businesses and environmental advocates have prioritized finding sustainable and effective solutions. The RSPO was founded in 2004 to encourage the production and use of sustainable palm oil. Since then, the organization has worked to foster collaboration and transparency towards achieving 100% sustainable palm oil, engaging all stakeholders in the supply chain, including producers, purchasers, NGOs, and governments. However, challenges persist. Unsustainable practices continue to result in the devastation of pristine rainforests and ecosystems, exacerbating greenhouse gas emissions and threatening numerous species with extinction. Notable progress has been made during the Principles and Criteria (P&C) review periods, where stakeholders can provide feedback to enhance collaboration and transparency in the RSPO’s sustainable palm oil standards. The last review introduced significant reforms, including new criteria that require growers to reduce greenhouse gas emissions, promote ethical business practices, and establish policies regarding human rights and forced labor.
While the strides made by companies aiming for CSPO are commendable, there remains much work ahead. Currently, about 20% of palm oil produced globally is certified as sustainable. How can we accelerate progress towards 100%? Retailers play a crucial role in the widespread adoption of CSPO, as they can influence their private label manufacturers and CPG companies to embrace sustainable purchasing practices. Many supermarkets and retailers have developed their own sustainable sourcing policies, guiding suppliers on issues ranging from human rights to the environmental impacts of the products available on their shelves. The inherent risks associated with 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 could be violating their own sustainable sourcing policies. Retail giants like Walmart, Target, CVS, and Costco are RSPO members and are actively working to implement palm oil sourcing policies that promote the widespread adoption of CSPO.
Such initiatives should be a priority for corporate CPGs and retailers alike, as today’s consumers are increasingly conscientious. Recent studies indicate that 87% of consumers are likely to purchase products from companies that champion causes they care about, while 76% would refuse to buy from companies that oppose their beliefs. Companies can no longer depend solely on product quality to retain consumer loyalty. We all have a role in ensuring that our products are produced sustainably, with consideration for both the planet and its inhabitants. Striving for 100% CSPO aligns with this responsibility.
Furthermore, as we consider the health impacts of various ingredients, incorporating elements like calcium citrate 950 mg OTC into our discussions about sustainable sourcing may also reflect a broader commitment to enhancing product quality and consumer health. The dialogue surrounding sustainable palm oil must continue to evolve, integrating various aspects of product integrity, including health benefits, to truly resonate with consumers.