What progress has been made in sustainable palm oil production since the last report?

Palm oil is used in half of consumer products. Palm oil is a versatile product with properties such as shelf life, odorless, color, temperature and heat resistance. It is an important ingredient in confectionery.

No wonder palm oil has grown so much over the last 50 years.

Between 1970 and 2020, global palm oil production increased 40-fold, from 2 million to 80 million tonnes. The majority of farms are located in Malaysia and Indonesia.

Although it is a very efficient crop, providing 40 % of all the world's vegetable oils on just 6 % of land used for oilseed crops, its high rates of deforestation and human rights violations have been linked to habitat destruction such as orangutans and pygmy elephants.

Environmentalists aren't the only ones paying attention. The issue is also important for consumers. For example, in the UK, 41% of buyers consider palm oil to be the least environmentally friendly vegetable oil. Many are looking for products without palm oil.

Responsible palm oil sourcing

In 2004, the Roundtable on Sustainable Palm Oil was established to enable the certification of responsibly produced palm oils.

Ferrero is a global chocolate company behind brands like Ferrero Rocher and Kinder, as well as Thorntons. He published his most recent efforts in sustainable palm oil production last month, including his own. Ferrero Palm Oil Charter,The company placed second in the certification category, which is a notch above the norm. WWF Palm Oil Buyers Dashboard 2024The report rates global palm oil companies based on their support of sustainable palm oils.

Ferrero is committed to sourcing Roundtable on Sustainable Palm Oil certified palm oil that can be traced back to the plantation, a Ferrero spokeswoman said.

Ferrero Malaysia has developed a number of sustainable practices, such as local sustainability projects and partnerships, research and other forms of collaboration. Ferrero is part of this effort and since 2021 has been participating in a pilot research project on plant biodiversity and natural production methods.

A Ferrero spokesperson says the project, which has developed over the past year, includes the creation of a nature solutions kit, based on the growing program with smallholders.

The chocolate giant has undertaken numerous projects to combat deforestation. Ferrero spokesperson: “Our palm oil sourcing areas cover more than 1.6 million hectares and are constantly monitored by Starling satellites in collaboration with the Earthworm Foundation to detect any deforestation. » Ferrero, in this regard, is an active supporter of European regulation on deforestation(EUDR). »

Ferrero is also taking steps to improve working conditions at palm oil mills. The Ferrero spokesperson says that by combining Ferrero products with those of the newly acquired companies in the latest list of mills, which covers the period from January 2023 to June 2023 -. 95.7 % of RSPO certified segregated palm oil was obtained

Deforestation is still linked to it

Oil palm plantations accounted for almost a quarter (23 % of Indonesia's total deforestation) between 2001 and 2016. Ferrero made a significant contribution. to the reduction of deforestation over the last 15 years, it is now 15 %, compared to 40 % when it peaked in 2008/2009

Daniela Montalto is Forests Campaigner at Greenpeace UK. She says some candy companies have done this. was more successful than others

Lack of transparency remains a problem in the confectionery industry. Montalto says the palm oil sector is known for its dishonesty and opacity. As a result, some are still linked to deforestation within their supply chain.

Manufacturers of sustainable products must do their due diligence.

The quantity of sustainable palm oil has stagnated at 20 % in recent years. The concept of Certified Sustainable Palm Oil (CSPO), based on the RSPO certification system, has been criticized for its flaws and ethical issues.

The Roundtable on Sustainable Palm Oil certification system has been weakened and diluted by the industry, and it is no longer fit for purpose, Montalto says.

The senior manager of Greenpeace's Forests campaign, using the UK as an illustration, confirms the lack of safeguards to stop the UK financing or importing palm oil. They can cause damage to forests, peatlands and critical native lands, as well as the habitats of threatened species such as orangutans.

Montalto says manufacturers who want to manufacture sustainably must do their due diligence to eliminate deforestation within their supply chain. Most had promised to remove it by 2020, but have failed to keep their promises.