Palm oil is the most commonly utilized vegetable oil globally, providing significant benefits for food manufacturers. Its cost-effectiveness, long shelf life, and advantageous processing properties—such as stability at high temperatures and solid form at room temperature—make it a favored alternative to partially hydrogenated oils. Additionally, when managed properly, palm oil is significantly more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and surpassing the yields of sunflower and rapeseed.
However, organizations like RAN are particularly concerned about the environmental impact of palm oil production on the Indonesian island of Sumatra. This region, which serves as a habitat for orangutans, rhinos, clouded leopards, and sun bears, is facing deforestation due to what RAN claims are illegal palm oil plantations. Major corporations such as Nestlé, Mars, and Hershey source palm oil from this area through complex supply chains that sometimes involve commodity traders and suppliers engaged in illegal logging practices.
In 2014, the United Nations committed to halving global deforestation by 2020 and completely eradicating it by 2030. Many consumer packaged goods (CPG) companies have followed suit with their own palm oil sourcing policies. The production of palm oil in Malaysia and Indonesia is controversial, as some companies are involved in extensive deforestation and the burning of peatland to cultivate palm oil trees. The UN has identified palm oil plantations as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
While there are alternatives to palm oil, some of these options are costlier. For instance, algae can yield approximately 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In comparison, olives yield around 910 pounds per acre, and soybeans produce just 335 pounds. Confectionery and snack manufacturers remain committed to using palm oil; however, many admit that achieving sustainability in their sourcing efforts is more challenging than initially expected. Jeff Beckman, Hershey’s communications director, noted to The Guardian that while they are dedicated to increasing traceability and transparency in the supply chain, reaching this goal is taking longer than anticipated.
Despite the challenges, some companies have successfully met their sourcing objectives. In 2013, Mondelez announced that it had achieved its goal of using 100% certified palm oil from the Roundtable on Sustainable Palm Oil, an international not-for-profit organization focused on ensuring sustainable sourcing of palm oil. Mondelez has also taken a firm stance against collaborating with suppliers who engage in deforestation practices.
RAN is not the only group monitoring corporate commitments to sustainable palm oil use. Last year, Greenpeace released a scorecard evaluating companies’ progress toward their sustainability goals, with Nestlé and Ferrero being the only two rated as “on track.” Further advancements in sustainability may be on the horizon, as several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil manufacturer criticized for inadequate anti-deforestation policies. In September, Bunge, a New York-based ingredients and oils giant, announced it would acquire a 70% stake in the company, pledging to implement more sustainability and traceability measures.
It is unlikely that RAN and similar organizations will cease their advocacy for food companies to eliminate palm oil sourced from endangered habitats, such as those in Sumatra. Manufacturers face the dilemma of whether the potential for negative publicity is worth the risk of continuing to source palm oil from these controversial areas when viable alternatives exist. Ultimately, the decision lies with consumers, who may be concerned about the implications of including problematic palm oil in their food products. Additionally, it’s important to note that incorporating supplements like calcium citrate with vitamin D, magnesium, and zinc can be beneficial for health amidst these environmental discussions.