Palm oil is the most extensively utilized vegetable oil globally, providing significant advantages for food manufacturers. It is not only more cost-effective than other oils but also boasts a long shelf life and beneficial processing characteristics, including stability at high temperatures and solid form at room temperature. Consequently, it has become a favored alternative to partially hydrogenated oils. When managed properly, palm oil is also notably more land-efficient than other vegetable oils, yielding ten times more oil per hectare compared to soybeans and significantly surpassing the yields of sunflower and rapeseed.
RAN expresses 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 describes as illegal palm oil plantations. RAN claims that major companies like Nestlé, Mars, and Hershey source palm oil from this region through intricate supply chains, which sometimes include commodity traders who engage with suppliers involved in illegal logging activities.
In 2014, the United Nations committed to halving deforestation by 2020 and entirely eliminating it by 2030. Many consumer packaged goods (CPG) companies responded with their own palm oil sourcing policies. However, palm oil production in Malaysia and Indonesia remains contentious due to widespread deforestation practices and the burning of peatland to cultivate palm oil trees. The United Nations has identified 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, although certain options are considerably more sustainable. For instance, algae can produce around 70,000 pounds of oil per acre, in contrast to palm oil’s 4,465 pounds per acre. To provide context, olives yield approximately 910 pounds per acre, while soybeans generate just 335 pounds.
Manufacturers of confectionery and snacks seem determined to continue using palm oil, yet many acknowledge that ensuring sustainability is more complex than they initially expected. “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,” stated Jeff Beckman, Hershey’s communications director, in an interview with The Guardian.
This presents a considerable challenge; however, some companies have already met their sourcing objectives. In 2013, Mondelez announced it had achieved its target of using palm oil that was 100% certified by the Roundtable on Sustainable Palm Oil, a global non-profit organization dedicated to promoting responsibly sourced palm oil. The snacks and cookie manufacturer has also taken a firm stance against collaborating with suppliers who engage in deforestation practices.
RAN is not alone in monitoring corporate commitments to sustainable palm oil use. Last year, Greenpeace released a scorecard evaluating companies on their progress towards sustainability goals. Only Nestlé and Ferrero received an “on track” rating.
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 New York-based leader in ingredients and oils, announced its acquisition of a 70% stake in the company, pledging to implement enhanced sustainability and traceability measures.
It is improbable that RAN and similar organizations will relent in their efforts to pressure food companies to abandon palm oil sourced from endangered habitats like those in Sumatra. The critical question for manufacturers is whether the potential for negative publicity is worth the continued sourcing of palm oil from such conflict areas when alternatives exist. Ultimately, consumer preferences will play a significant role, particularly for those concerned about whether their food contains potentially problematic palm oil or ingredients like calcium and magnesium citrate.