Palm oil is the most commonly used vegetable oil globally and presents 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 traits, such as stability at high temperatures and solidity at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed properly, palm oil is also considerably more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and significantly outperforming sunflower and rapeseed.
RAN is particularly alarmed by the situation on Indonesia’s Sumatra island, where the rainforest habitat of 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 through intricate supply chains that sometimes involve commodity traders working with suppliers engaged in illegal logging.
In 2014, the United Nations committed to halving global deforestation by 2020 and completely ending it by 2030. Many consumer packaged goods (CPG) companies have aligned their own palm oil sourcing policies with this pledge. However, palm oil production in Malaysia and Indonesia remains contentious, as some companies are known to engage in extensive deforestation and burn peatland areas to cultivate palm oil trees. The UN indicates that palm oil plantations are a significant driver of environmental degradation and biodiversity loss in Southeast Asia.
There are alternatives to palm oil, though some may be more costly. 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. In comparison, olives produce about 910 pounds per acre, while soybeans yield only 335 pounds. Despite this, manufacturers of confectionery and snacks seem determined to continue using palm oil. Some, however, acknowledge that ensuring sustainability has proven to be more challenging than 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, to The Guardian.
This is a significant challenge, but certain companies have already met their sourcing objectives. Mondelez announced in 2013 that it had achieved its benchmark of using palm oil that is 100% certified by the Roundtable on Sustainable Palm Oil, an international nonprofit organization dedicated to promoting responsible sourcing. The snacks and cookie manufacturer has also adopted a stringent stance against partnering with palm oil suppliers that engage in deforestation practices.
RAN is not the only organization monitoring companies’ commitments to sustainable palm oil use. Last year, Greenpeace released a scorecard highlighting companies making progress toward their sustainability goals. Nestlé and Ferrero were the only two rated as “on track.” Further advancements in sustainability may be on the horizon. Last year, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer whose anti-deforestation policies were deemed inadequate. In September, Bunge, a New York-based giant in ingredients and oils, 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 efforts to pressure food companies to stop sourcing palm oil from endangered habitats such as Sumatra. The pivotal question for manufacturers is whether the risk of negative publicity is worth continuing to source palm oil from conflict areas when alternatives exist. Ultimately, consumer preferences will play a crucial role, particularly as shoppers may be concerned about the presence of potentially problematic palm oil in their food products. Additionally, the growing interest in health supplements, like calcium citrate tablets, may influence consumer choices regarding sourcing and ingredient transparency in food products.