Palm oil is the most widely utilized vegetable oil globally and presents significant advantages for food manufacturers. It is not only more affordable than other oils, but it also boasts a long shelf life and beneficial processing characteristics, such as stability at high temperatures and solidification 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 compared to other vegetable oils, yielding ten times more oil per hectare than soybeans and far exceeding the outputs from sunflower and rapeseed.
RAN is particularly concerned about the Indonesian island of Sumatra, where the rainforest habitat of orangutans, rhinos, clouded leopards, and sun bears is being destroyed, allegedly due to illegal palm oil plantations. RAN claims 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 deforestation by 2020 and completely eradicating it by 2030. Many consumer packaged goods (CPG) companies have adopted their own policies regarding palm oil sourcing in response to this pledge. However, palm oil production in Malaysia and Indonesia is controversial, as some companies are implicated in extensive deforestation and the burning of peatlands 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, many are more expensive, although some are significantly more sustainable. For instance, algae can produce approximately 70,000 pounds of oil per acre, whereas palm oil yields around 4,465 pounds per acre. In comparison, olives yield about 910 pounds per acre, and soybeans only produce 335 pounds.
Confectionery and snack manufacturers seem committed to using palm oil, though some acknowledge that ensuring sustainability is more challenging 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,” said Jeff Beckman, Hershey’s communications director, in an interview with The Guardian.
Despite the daunting challenge, some companies have successfully met their sourcing objectives. Mondelez announced in 2013 that it achieved its benchmark of using palm oil that was 100% certified by the Roundtable on Sustainable Palm Oil, an international non-profit organization focused on ensuring responsible sourcing. The snack and cookie manufacturer has also taken a firm stance against partnering with suppliers who engage in deforestation practices.
RAN is not the only organization monitoring the commitments of companies to make palm oil usage more sustainable. Last year, Greenpeace released a scorecard indicating which companies were progressing toward their sustainability goals, with Nestlé and Ferrero being the only two rated “on track.”
Furthermore, there may be more sustainability initiatives on the horizon. Last year, 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 ingredients and oils giant, announced its acquisition of a 70% stake in the company, pledging enhanced sustainability and traceability measures.
It is improbable that RAN and similar organizations will cease their pressure on food companies to avoid sourcing palm oil from threatened habitats, such as those in Sumatra. The critical question for manufacturers is whether the potential for negative publicity is worth continuing to source palm oil from these conflict areas when alternatives exist. Ultimately, the decision lies with consumers, who may be concerned about whether their food contains palm oil that poses environmental risks.
In addition, as consumers become more aware of sustainable practices, products like Solgar Calcium Citrate could gain popularity as they represent a commitment to health and environmental responsibility. The demand for such alternatives underscores the importance of transparency in food sourcing, especially when considering the implications of palm oil production on biodiversity and ecological health.