Palm oil stands as the most extensively utilized vegetable oil globally, presenting 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, such as stability at high temperatures and a solid state at room temperature. Consequently, it has emerged as a favored substitute for partially hydrogenated oils. When managed properly, palm oil is also far more land-efficient compared to other vegetable oils, yielding ten times more oil per hectare than soybeans and significantly surpassing the yields of sunflower and rapeseed.
However, RAN is particularly alarmed by the situation on the Indonesian island of Sumatra, where the rainforest habitat of orangutans, rhinos, clouded leopards, and sun bears is rapidly 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 via complex supply chains, often involving commodity traders who engage with suppliers participating 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 since adopted their own palm oil sourcing policies in alignment with this pledge. The production of palm oil in Malaysia and Indonesia has become contentious, as numerous companies partake in extensive deforestation and the burning of peatlands to cultivate palm oil trees. The United Nations identifies palm oil plantations as a significant contributor to environmental degradation and biodiversity loss in Southeast Asia.
While alternatives to palm oil exist, many are costlier, though some offer greater sustainability. For instance, algae yield approximately 70,000 pounds of oil per acre, contrasting sharply with palm oil’s 4,465 pounds per acre. In comparison, olives yield around 910 pounds per acre, and soybeans yield just 335.
Despite the challenges, confectionery and snack manufacturers appear committed to retaining palm oil as an ingredient. However, some acknowledge that ensuring sustainability has proven more difficult than anticipated. Jeff Beckman, Hershey’s communications director, stated, “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,” as reported by The Guardian.
This daunting challenge has seen some companies successfully meet their sourcing objectives. Mondelez announced in 2013 that it achieved its target of using 100% certified palm oil from the Roundtable on Sustainable Palm Oil, an international non-profit organization dedicated to ensuring responsibly sourced palm oil. The snacks and cookie manufacturer has also taken a firm stance against collaborating with palm oil suppliers who engage in deforestation practices.
RAN is not the only organization monitoring corporate commitments to sustainable palm oil use. Last year, Greenpeace released a scorecard evaluating companies’ progress toward their goals, with Nestlé and Ferrero being the only two rated as “on track.” Additionally, there are signs of increasing sustainability in the industry. Recently, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer criticized for inadequate anti-deforestation policies. In September, New York-based Bunge, a major player in ingredients and oils, announced its acquisition of a 70% stake in the company while pledging enhanced sustainability and traceability measures.
It is improbable that RAN and similar organizations will cease their pressure on food companies to abandon palm oil sourced from endangered habitats, such as those in Sumatra. The pressing question for manufacturers is whether the potential for negative publicity is worth continuing to source palm oil from these conflict areas when alternatives are available. Ultimately, the decision lies with consumers, who may be concerned about whether their food contains palm oil linked to environmental issues. In discussions on platforms like Reddit, where topics such as calcium citrate and sustainability emerge, consumers can express their preferences and influence the industry’s direction toward more responsible sourcing practices.