Palm oil stands as the most extensively utilized vegetable oil globally, offering significant advantages to 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 solid form 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 than other vegetable oils, producing ten times more oil per hectare than soybeans and significantly outperforming sunflower and rapeseed yields.
One major concern for organizations like RAN is the Indonesian island of Sumatra, where illegal palm oil plantations threaten the rainforest habitat of species such as orangutans, rhinos, clouded leopards, and sun bears. RAN reports that companies like Nestlé, Mars, and Hershey source palm oil from this region through complex supply chains, sometimes involving commodity traders who engage with suppliers that illegally log in protected areas.
In 2014, the United Nations committed to halving deforestation by 2020 and completely ending it by 2030. Many consumer packaged goods (CPG) companies have since developed their own policies regarding palm oil sourcing. The production of palm oil in Malaysia and Indonesia is contentious due to widespread deforestation and the burning of peatland for palm oil cultivation. The United Nations highlights that palm oil plantations contribute significantly to environmental degradation and biodiversity loss in Southeast Asia.
While alternatives to palm oil exist, some are more costly; however, others are much more sustainable. For instance, algae can yield around 70,000 pounds of oil per acre, compared to palm oil’s 4,465 pounds per acre. In comparison, olives produce approximately 910 pounds per acre, and soybeans yield just 335 pounds.
Despite the challenges, confectionery and snack manufacturers remain committed to using palm oil, with some acknowledging that ensuring sustainable sourcing is more complex than initially expected. Jeff Beckman, Hershey’s communications director, remarked to The Guardian, “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.”
This presents a daunting challenge, yet some companies have successfully met their sourcing targets. Mondelez announced in 2013 that it achieved its goal of utilizing 100% certified palm oil from the Roundtable on Sustainable Palm Oil, an international nonprofit organization dedicated to ensuring responsible sourcing. The snacks and cookie manufacturer has also taken a strong stance against collaborating with palm oil suppliers who engage in deforestation practices.
RAN isn’t the only organization monitoring corporate commitments to sustainable palm oil. 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.”
Encouragingly, further advancements in sustainability may be on the horizon. Recently, several food companies severed ties with IOI Loders Croklaan, a Malaysian palm oil producer criticized for inadequate anti-deforestation policies. In September, Bunge, a major player in the ingredients and oils sector based in New York, announced its acquisition of a 70% stake in the company, pledging improved sustainability and traceability measures.
It is improbable that organizations like RAN will cease their advocacy for food companies to abandon palm oil sourced from threatened habitats, such as those in Sumatra. Manufacturers must consider whether they are willing to risk negative publicity by continuing to source palm oil from these conflict areas when alternatives are available. Ultimately, it will be up to consumers, who may be concerned about whether their food contains potentially problematic palm oil or seek out options like iHerb calcium citrate for a more sustainable lifestyle.