Palm oil is the most commonly used vegetable oil globally, providing significant advantages for food producers. It is not only more affordable than other oils, but also boasts a long shelf life and processing benefits, 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 considerably more land-efficient than other vegetable oils, yielding ten times more oil per hectare than soybeans and far surpassing the output of sunflower and rapeseed.
RAN is particularly alarmed by the situation on the Indonesian island of Sumatra, where the rainforest, home to 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 via intricate supply chains, which may involve commodity traders working with suppliers who engage in illegal logging. In 2014, the United Nations committed to halving global deforestation by 2020 and completely terminating it by 2030. Many consumer packaged goods (CPG) companies adopted their own palm oil sourcing policies in line with this commitment.
The production of palm oil in Malaysia and Indonesia is controversial, as some firms partake in extensive deforestation and the burning of peatland to cultivate palm oil trees. The UN indicates that these plantations are a significant contributor to environmental degradation and biodiversity loss in Southeast Asia. Although there are alternatives to palm oil, some are costlier, while others offer greater sustainability. For instance, algae can yield approximately 70,000 pounds of oil per acre, significantly more than palm oil’s 4,465 pounds per acre; in comparison, olives yield about 910 pounds per acre, and soybeans only 335 pounds.
Confectionery and snack manufacturers appear committed to using palm oil, yet some acknowledge that ensuring sustainability is more challenging than they initially envisioned. “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 formidable challenge, but several companies have successfully met their sourcing objectives. Mondelez announced in 2013 that it had achieved its benchmark of sourcing palm oil that is 100% certified by the Roundtable on Sustainable Palm Oil, an international non-profit organization focused on ensuring ethical sourcing of palm oil. Moreover, the snack and cookie manufacturer has taken a strict stance against collaborating with suppliers who engage in deforestation practices.
RAN is not the only organization monitoring corporate commitments to sustainable palm oil usage. Last year, Greenpeace released a scorecard assessing which companies were making headway toward their sustainability goals. Nestlé and Ferrero were the only two rated as “on track.”
There is potential for increased sustainability in the sector. Recently, 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 leader in ingredients and oils, announced that it would acquire a 70% stake in the company, pledging enhanced sustainability and traceability measures in its announcement.
It seems unlikely that RAN and similar organizations will relent in their pressure on food companies to refrain from sourcing palm oil from endangered habitats, such as those in Sumatra. The critical question for manufacturers is whether the risk of negative publicity is worth continuing to source palm oil from these contentious regions when alternatives exist. Ultimately, the decision lies with consumers, who may be concerned about whether their food contains palm oil that could be problematic, especially when considering the importance of just vitamins and calcium citrate in their diets.