palm oil in the oleochemical sector - efeca · oleochemical derivatives such as surfactants,...

InfoBriefing#2

PreparedforPartnershipsforForestsAugust2018

www.efeca.com

Palm Oil in the Oleochemical Sector

Efeca 1 PalmOilintheOleochemicalSector

1.IntroductionThis briefing note explores the use of palm oil and certified sustainable palm oil in theoleochemicalindustry.Itdescribestheoleochemicalssupplychain,marketstructureandsomeofthekeymarketdynamics,before looking inmoredetailat theCSPOpoliciesofmanyof thekeyplayers.ThisanalysisshedssomelightonthecurrentstateofawarenessandactionintheindustryonsourcingCSPO,andallowsustoassesswhereassistanceisneeded.OleochemicalmanufacturersintheUKusepalmoilandpalmkerneloilandtheirderivativestocreateingredientsforpersonalcareandcleaningproducts.Thisnoteoutlinesthecomplexitiesin the derivatives supply chain, explains why sustainable palm-based derivatives have beendifficult to source in thepast, andprovidesanoverviewofwhatmanufacturers are currentlydoingtomanufactureoleochemicals,cleaningproductsandpersonalcareproductsmadewithsustainableandtraceablepalmoilandpalmkerneloil.

2.TheOleochemicalSupplyChainPalm oil and palm kernel oil are complex commodities because of the demand for a largenumber of fractions and derivatives of the oils. The supply chains for these derivatives aremulti-layered and complex. Although traceability is improving, the derivatives can bechallengingtosourceassustainable.Palm-based oleochemicals have a diverse range of applications. Over the past decade, manyEuropeanmanufacturersandtradersshiftedtowardstheuseofpalm-derivedoleochemicals(asopposed to petrochemicals or other plant based oleochemicals), due to the versatility inapplication and high yield rates of palm, as well as the increase in the number of plants inSoutheastAsiawithaccesstopalmfeedstocks.Theenvironmentalandsocialrepercussionsofthisshiftinusage,andtheparallelsignificantincreaseinoilpalmplantationsinSoutheastAsia,have been dramatic, leading to deforestation, climate change, habitat loss, and disruptions tolocalcommunities.

Palm-BasedOleochemicals-HowtheyaremadeandwhattheyareusedforAlloils and fatsarebasedoncarbonchains linked togetherbyaglycerolbackbone to formaTriglycerideorTriacylglycerol(TAG)molecule.Thecharacteristics(andpotentialapplications)ofanoilor fat,suchas itsviscosityorresistancetohightemperatures,aredeterminedbythetype and length of chain attached to the glycerol backbone. When these chains are split,oleochemicalsarecreated,withfurtherpotentialusesandapplications.Palm-based oleochemicals are produced from refined palm oil, palm stearin that has beenproduced from fractionatedpalmoil, refinedpalmkerneloil, crudepalmkerneloil, andpalmfattyaciddistillate.Thereare fivebasicoleochemicals: fattyacids, fattyalcohols, fattymethylester,fattyamines,andglycerine.Thesesubstancesareusedincleaningproductslikelaundrydetergents,andpersonalcareproductslikeshampoos,toothpaste,soaps,lotions,andcosmetics.Theyoftenrepresent the ‘chassis’orstructural ingredients in theseproducts,andsomakeupthebulkoftheformulations.


Oleochemicalderivatives.RSPO,2017.For example, fatty alcohols and fatty acids from palm and palm kernel oil are used tomakesurfactants,whicharethebasisofalmostallproductsusedforpersonalcleansing,laundering,dishwashingandhouseholdcleaning.Cleansingsurfactants,alsoknownasprimarydetergents,are chemicals that reduce the surface tension of water and solubilise fats, so the water canquicklywetasurfaceandsoilcanbeloosenedandremoved.Inthepersonalcaresector,palm-derived oleochemicals are used as surfactants (used in lotions), emollients (used inmoisturisers), and humectants (also used in moisturisers), as well as a viscosity modifier,conditioningagentandantioxidant.

Palm-BasedOleochemicalConsumptionWorldwideSplittingoilandfatmoleculestocreateoleochemicalscanbedonewithanytypeofoil.Intermsof vegetable oils, palm oil and palm kernel oil represent the largest oleochemical feedstocks,with72milliontonnesproducedperyearglobally.1Afargreateramountofpalmoilisproducedthanpalmkerneloil,duetothefactthat1tonneofpalmkerneloilequatestoabout10tonnesofpalmoil,intermsoffeedstock.Palm-basedoleochemicals are inhighdemandbecauseof thewide rangeof applications thatarepossiblewithpalmandpalmkerneloilduetotheirversatileanddurablechemicalprofiles.Theavailabilityandcompetitivepricingofpalmoilhasalsodriventhedemandforpalmoil,asglobalpopulationgrows.

1OilWorld,2017.2RSPO,2017.3https://www.proforest.net/en/files/mapping-palm-oil-supply-chains-report.pdf/view


Asdemonstratedintheabovediagramsonthemostcommonpalmapplications,70%ofglobalpalmkerneloil consumptionand8%ofglobalpalmoil consumption isused foroleochemicalmanufacture.Expressedadifferentway,3%ofthetotalworldproductionofpalmoilandpalmkernel isused for themanufactureofhomecareproducts (mainly in the formofderivatives)and2%ofworldproductionisusedgloballyfortheproductionofcosmetics.2

Palm-BasedOleochemicalConsumptionintheUKIn2009Proforestpublishedareport3estimatingtheuseofpalmoil,palmkerneloilandpalm

2RSPO,2017.3https://www.proforest.net/en/files/mapping-palm-oil-supply-chains-report.pdf/view


derived ingredients in theUK.Unfortunately, this is themostup todate reporton thesector,and new analysis is now required to fully understand use in theUK. Cleaning, personal care,cosmeticsandindustrialuseswereestimatedtoconsumeabout10%oftheUKtotal,mostlyintheformofoleochemicalderivatives.Becausetheextenttowhichpalmbasedoleochemicalsareconsumedbythesesectorsisnotfullytrackedandtheoriginalfeedstockoftheoleochemicalsisnotalwaysknown(butexpected tobepalmkerneloil inmostcases), thisestimateshouldbetreatedwithcaution.Nevertheless,itshowshowprevalentpalm-basedoleochemicalsare.Furthermore,becausesomeoleochemicalsarederivedfromfractionsofpalmandpalmkerneloil,thisamountrepresentsfarlargeramountsoffeedstockoil.Whenpalmoilandpalmkerneloilisfractionatedandseparatedintoliquidpalmoleinandsolidpalmstearin,itisdonesoataratioof4:1.Thismeansthatoleochemicalscreatedfrompalmoleinrequire4timestheamountoffeedstocktocreate.

UKSupplyChainThe below figures show the supply chains for the cleaning products and personal careindustries in the UK. The oleochemical ingredients used in their manufacture come fromoleochemicalmanufacturers,whichsourcestock fromrefineries, in theEU,UKandSEAsiaorimportcrudepalmoilandpalmkerneloildirectly. Thelargestoleochemicalmanufacturersinterms of volume are based in Germany, and the largest refineries in the EU are based in theNetherlands. TheUK has several oleochemicalmanufacturers aswell, listed below in Section3.1,whichwillsourceoilandderivativesfromUK,EUandAsianrefineries.Oleochemicalmanufacturers source feedstockandoleochemicalderivatives, and thenprocessthemintovariousprimaryandsecondaryingredients.Eachofthesewillrequireseparatetanks,andmachinerymustbe flushed for eachprocess.Certified IPor SG feedstockandderivativeswillalsorequireseparatetanks(andshippingtankers),addingtocapitalandrunningcosts.Fig1.StructureoftheUKCleaningProductsSupplyChain,includingkeyplayers4

4https://www.proforest.net/en/files/mapping-palm-oil-supply-chains-report.pdf/view


Fig2.StructureoftheUKPersonalCareProductsSupplyChain,includingkeyplayers5

3.SourcingCSPOandCSPKOOleochemicalsAs noted in the RSPO ACOP submissions of many of the companies profiled below, manymanufacturers face difficulties in finding suppliers with certified oleochemical ingredients.Oleochemicalderivativessuchassurfactants,glycerineandemulsifierscanbedifficulttosourcefromsustainablesources,duetotherestraintsofthesupplychain.Thisisbecausepalmkerneloil,thefeedstockforthemajorityofoleochemicalmanufacture,hasamorecomplexsupplybasethanpalmoil.Thekernelsareoftensenttocrushingfacilities(asopposedtoprocessedbythepalm oil mills that produce palm oil from the palm oil fruit) where they can bemixed withuncertifiedpalmkernel.Atpresent,onlysomeofthesefacilitiesareRSPOcertified.Becausethecertified sustainable cost premiummust apply to the original feedstock and then be carriedfrom derivative to derivative to create the oleochemical, the impetus for mills to becomecertifiedisnotalwayspresent.Furthermore, theoleochemicals canvaryandbe replacedbyotherplant-basedoleochemicals(i.e.fromcoconut)orpetrochemicals,dependingonmarketprice.Thisaddstothecomplexityoftracking.In terms of driving demand for sustainable oleochemicals, there are several challenges. First,due to the complexity of the supply chain, and the small volumes of a diverse range ofsustainableoleochemicalderivativesthatmustbehandledinseparatetanksetc.,thepremiumsonsustainableoleochemicalscanbequitehigh,andvaried.Buyersmaybereluctanttopaythispremium because they fear that customers will be unwilling to pay premiums on finishedproducts.Becausemostcustomersdonotknowwhatoleochemicalsare,orarenotawarewhicholeochemicalslistedinhomecareorpersonalproductsarederivedfrompalmoil,thereisalackofdemandforcertifiedingredientsaswell.

5https://www.proforest.net/en/files/mapping-palm-oil-supply-chains-report.pdf/view


Finally,thesupplyofSegregated(SG)andIdentityPreserved(IP)CSPOandCSPKOderivativesisquitevulnerable todisruptiondue to itssmall size. Forexample,a tanker transporting thebulk of Europe’s SG derivatives supply recently suffered contamination issues, meaning thatcompanieswithcommitmentstobuySGthatyearwereunabletoaccessthesupply.Formanycompanies,usingMBCSPOandCSPKOderivativesismorereliableandisthepreferredoptionasthesupplychaindevelops.

Whatcanbedone?Severalmajorindustryplayershavebegunworkingwiththeirsuppliersandmanufacturerstoidentity the sources and encourage sustainable production, with some even establishingvertically integrated supply chains that can source segregated material for oleochemicalproduction.Unileverrecentlymappedtheirentirepalmoilsupplychain,andthendisclosedtheinformationontheir300suppliersand1,400millspublicly,inordertoincreasetransparencyintheindustryandimprovesustainablepractices.6Together with users and manufacturers, the RSPO has also founded a derivatives workinggroup, which has created a methodology for calculating oleochemical derivatives.7 Thismethodologyisbasedonaseriesofconversionchartsforeachderivative,sothatvolumescanbeusedtocalculatehowmuchparentoilwasusedtomakethederivative,makingiteasiertocertifyderivatives.In terms of the public sector, the Government implemented a Government Buying Standard(GBS)forfoodandcateringin2012,whichincludedarequirementaboutsourcingsustainablepalmoil, palmkernel oil andderivatives toRSPOor equivalent certification.All cleaning andpersonal care products bought by central government were required to meet sustainabilityrequirementsby2015,whichhascreatedsomechangeamongGovernmentcontracts.UptakeoftheFoodandCateringGovernmentBuyingStandardvariesacrosscentralGovernmentintheUKhowever. It is not mandatory for two of the biggest food service public sectors: health andeducation. It is also not mandatory for overseas defence operations. Efeca is currentlyundertakingastudytoascertainhowsuccessful implementationoftheGBShasbeenforpalmoil.

3.1CompanyProfilesThe below tables outline what steps key UK cleaning product manufacturers, personal careproduct manufacturers and oleochemical manufacturers are taking towards sourcing 100%sustainableandfullytraceablepalm-basedderivatives.Asthecompanyprofilesillustrate,levelsof certified palm oil use among UK cleaning product manufacturers, personal care productmanufacturersandoleochemicalmanufacturersaregenerallyquitehigh.Manyoleochemicalmanufacturersandcleaningproduct/personalcareproductmanufacturersintheUKalsohavecommitmentstosourcephysicallytraceablepalmoilandpalmkerneloilinthenearfuture.Astraceabilitycontinuestoimprove,manyarealreadyworkingwithsupplierstosourceproductsmadewithmassbalanceorsegregatedcertifiedsustainablepalmoil.

6https://www.unilever.com/news/news-and-features/Feature-article/2018/we-take-a-radical-step-on-palm-oil-supply-chain-transparency.html7http://www.rspo.org/file/RSPO_Rules_as_approved_by_RSPO_EB_July_2013_1.pdf


OleochemicalManufacturersandProcessorsCompany Description CSPOPolicy8 RSPO

Member/RSPOACOP9

WWFScorecard10

Croda11

Suppliesnaturallyderivedspecialitychemicalstoawiderangeofindustries.Hassales,technicalandmanufacturingfacilitiesthroughoutEurope,theAmericas,AsiaandtheFarEastandannualsalesofover£1billion.

Have12RSPOSupplyChainCertifiedplantsinallregionsinwhichtheyoperate,whichhandle>99%oftheirtotalPO/PKOderivativesvolume.HaveestablishedaprogrammetoconvertfinishedingredientsbasedonPO/PKOderivativestoMBandSG.Reporteda63%increaseinCSPOsalesvolumesin2017comparedto2015.12

CurrentRSPOmember.SubmittedACOPreports2010-16

n/a

BASF13

Offersabroadrangeofingredientsforhygiene,personalcare,homecare,industrial&institutionalcleaning,andtechnicalapplications.Oneofthelargestprocessorsofpalmproductsworldwide.

Offerssince2012arangeofMBandselectedSGbasedPOandPKObasedingredientsforthepersonalcareindustryglobally.Manufacturescertifiedingredientsat20locationsaroundtheworldforthecosmetic,detergentandcleaningagentindustries.14ShifteditsPersonalCareportfolioandwillofferpalm-basedspecialtiesforthecosmeticsindustryexclusivelyascertifiedsustainableMBin2018–covering330products.15 In2017,thecompanywasabletotracealmost80%ofitsoveralloilpalmexposureofmorethanhalfamillionmetrictons.TargettosourceonlyRSPO-certifiedsustainablepalmkerneloilby2020.


2017ScorecardinGermany–38%RSPO16

CremerOleoDivision17

Coreactivitiesincludetheworldwidesourcingofnaturallyderivedoleochemicalrawmaterials,processing,warehousingand

AchievedRSPOSupplyChainCertification(SCC)in2011(whichappliesgloballytotheiroperations)andsuppliesarangeofRSPOcertifiedpalmoilderivatives.TodayoffersalmostallPOorPKO-basedproductswithMBcertification.



8Acronymsareasfollows:MassBalance(MB),Segregated(SG),IdentityPreserved(IP),andBookandClaim(B&C).9ACOP2017reportshavenotyetbeenpublished.10Themostrecentscorecardisfrom2016.11http://www.croda.com/home.aspx?d=content&s=1&r=1173&p=820612https://rspo.org/file/acop2016/submissions/croda%20international%20plc-ACOP2016.pdf13http://www.care-chemicals.basf.com/press-center/news-detail?id=6e46e4d2-7e71-48ae-9523-6f5409b339a114https://www.basf.com/en/company/news-and-media/news-releases/2017/06/p-17-248.html15https://www.basf.com/en/company/news-and-media/news-releases/2018/04/p-18-177.html16https://mobil.wwf.de/fileadmin/fm-wwf/Publikationen-PDF/WWF-Palm-Oil-Scorecard-2017.pdf17https://www.rspo.org/members/247/cremer-oleo-gmbh-amp-co-kg


supplyingcustomerswithproducts.HeadquarteredinHamburg.OpenedaUKmanufacturingsiteatGraysinEssexin2017.

SomeproductsalreadymeettherequirementsofIPandSGqualitystandards18Aimtoprovide100%RSPOproductsby2020.19

Stepan21 Globalmanufacturerofspecialtyandintermediatechemicalsusedinconsumerproductsandindustrialapplications.OneproductionsiteinUK.

HaveachievedRSPOsupplychaincertificationfornearly80%ofrelevantsites,includingallU.S.andEuropeansitesthathandlepalmoilandpalmkerneloil,andsitesinthePhilippinesandBrazil.CertifiedunderMBandcanworkwithcustomersanddistributorstooffercertifiedproducts.Target2020forusing100%certifiedPKOandderivatives.22


n/a

Meade-King,RobinsonandCo.Ltd.23

Privatelyownedchemicaldistributioncompanyprovidingdistributionandstoragesolutions.

Target2019forfullRSPOcertificationforallSC.2024forhandling100%RSPOmaterial.24Noownbrand.UKdistributerofPalmOleo’sPALMERAfattyacid.Palmera(ownedbyKLKOleo)canprovideMBorSGoil.


n/a

Innospec Globalspecialtychemicalcompany,withafocusonoilfieldchemicals,personalcare,fragranceingredients,homecareandagrochemicals.OnemanufacturingsiteforpersonalcareinUK.

AllmanufacturingfacilitiesprocessingPO/PKOderivativeshavebeenRSPOMBSupplyChaincertifiedsince2015.Target2020forusing100%certifiedPKOandderivatives.25


n/a

Nimac PrivatelyownedspecialitychemicalsdistributorinUK.

NoenvironmentalorCSPOpolicy.26

n/a n/a

20https://mobil.wwf.de/fileadmin/fm-wwf/Publikationen-PDF/WWF-Palm-Oil-Scorecard-2017.pdf18https://www.cremeroleo.de/en/qualitaet/RSPO.php19https://rspo.org/file/acop2016/submissions/cremer%20oleo%20gmbh%20co.%20kg-ACOP2016.pdf21http://www.stepan.com/why-stepan/reducing-our-impact.aspx22https://www.stepan.com/Contact-Us/Locations.aspx23http://www.rspo.org/members/2845/Meade-King-Robinson-and-Co.-Ltd24https://rspo.org/file/acop2016/submissions/meade-king%20robinson%20and%20co.%20ltd.-ACOP2016.pdf25https://www.rspo.org/file/acop2017/submissions/innospec%20inc.-ACOP2017.pdf26http://www.nimacltd.co.uk/environment


CleaningProductManufacturersCompany Description CSPOPolicy RSPO

Member/RSPOACOP

WWFScorecard

P&G27 Leadingconsumerproductmanufacturer,ownerofmultipleconsumerbrands.127,000employeesworkingin80countriesworldwide.ThreemanufacturingsitesintheUK.

100%certifiedPOandPKOderivativesviaGreenPalmCertificatesandMBsinceFY13/14.SinceJanuary2016,majorityofderivativeshasbeenMBcertified.Willsource100%SGpalmoilandby2018vs.earlierplanof2020andbuyMBtocoverthevolumewhichisnotSGcertified28


7outof9points.29

ReckittBenckiser30

Leadingmanufacturerofhouseholdcleaningandhealth&personalcareproducts.Employ23,000people,withsalesin180countriesandmorethan40manufacturingfacilitiesworldwide.HQinUK.

BoughtGreenPalmcertificatestocoverallpalmpurchasesfor2014and2015.In2016,decidedtosupportTFT’snewsmallholderfarmerprogrammes,andonlypartiallycoveredpalmoilvolumeswithGreenPalmcertificates.Targetfor100%physicalRSPOby202031


9outof9onWWFscorecard.32

RobertMcBride33

LeadingproviderofPrivateLabelHouseholdandPersonalcareproductstoretailersthroughoutEuropeandbeyond.

HavepurchasedGreenPalmcertificatessince2014.AdoptedaMBapproachin2013forsomecustomersandwillcontinuetopurchaseGreenPalmcertificateswhereMBcannotbeobtained.Targetfor100%RSPOcertifiedand100%physicalby2025.HavealreadyimplementedasystemtoidentifywherePO/PKOisusedasderivativesiningredientsatsomemanufacturingfacilitiesandin2015startedaprojecttostandardisethisprocessacrossthegroupwithaimtocompletein2017.FollowingthesuccessfulRSPOaccreditationoffourmanufacturingfacilitatesplantoexpanduponthenumberoffacilitiesaccreditedinlinewithcustomerrequirements.34


n/a

27http://www.pg.com/en_US/sustainability/policies_practices/palmoil.shtml28https://www.rspo.org/file/acop2016/submissions/p%20g-ACOP2016.pdf29https://palmoilscorecard.panda.org/check-the-scores/manufacturers30https://www.rb.com/responsibility/sourcing/31https://rspo.org/file/acop2016/submissions/reckitt%20benckiser%20plc-ACOP2016.pdf32http://palmoilscorecard.panda.org/check-the-scores/manufacturers/reckitt-benckiser33http://www.mcbride.co.uk/our-responsibilities/reports34https://rspo.org/file/acop2016/submissions/mcbride%20plc-ACOP2016.pdf


SCJohnson35

Oneoftheworld'sleadingmanufacturersofhouseholdcleaningproductsandproductsforhomestorage,haircare,pestcontrolandshoecare.OneproductionsiteUK.BasedintheUSA.

Announcedin2011thattheywillbuyonlyCSPOby2015.SourceamixofMBandB&C.Haveplacednon-sustainablepalmoilontheirrestricted-use-materiallistfornewusesandareworkingtoeliminatetheuseofnon-sustainablepalmoilinSCJohnsonproductsgloballyasnewreformulationsoccur.Targetfor100%RSPOown-brandby2020.Targetfor100%physicalRSPOown-brandby2020.36


n/a

Unilever Anglo-Dutchmanufacturerofbrandedfast-movingconsumergoods.HeadOfficesinLondonandRotterdam.Operationsinover100countriesandsellsproductsinover150countries.ManufacturingsitesandresearchfacilitiesinUK.

From2012-2015,allvolumeswerecoveredbyacombinationofRSPOSGandMBoilsandGreenPalmcertificates.Bytheendof2014,70%ofthepalmoilinsupplychainwastraceabletoknownmills.BytheendofMarch2015,allpalmoilboughtdirectlyforitsEuropeanFoodsbusinesswastraceabletocertifiedplantations.RevealedentirePOandPKOsupplychainincludingmillsin2018.Targetforpurchasing100%physicalRSPOby2019.37


9outof9score.38

PersonalCareProductManufacturersCompany Description CSPOPolicy RSPO

Member/RSPOACOP

WWFScorecard

Beiersdorf39 Globalskincaremanufacturer.HQinGermany.OnesiteintheUK.

In2014,100%ofPOandPKOderivativespurchasedwerecoveredbyGreenPalmcertificates.40In2016wereawardedtheRSPOMulti-SiteSCCScertificate.By2020,BeiersdorfintendstoswitchtoSGoratleastMBPKOandcorrespondingderivatives.



Colgate-Palmolive42

Leadingglobalconsumerproductscompany,focusedonOralCare,PersonalCare,HomeCareandPetNutrition.Sells

In2009,committedtopurchasingPOandPKOexclusivelyfromRSPOmembersandestablishedatargetdateof2015forpurchasing100%CSPO.In2016didnotreach100%

CurrentRSPOmember.SubmittedACOPreports

9outof9score.44

35http://scjohnson.com/en/commitment/supplychaintransparency/netzero_deforestation.aspx36https://rspo.org/file/acop2015/submissions/sc%20johnson%20and%20son,%20inc-ACOP2015.pdf37https://www.rspo.org/file/acop2016/submissions/unilever-ACOP2016.pdf38http://palmoilscorecard.panda.org/check-the-scores/manufacturers/unilever39http://www.beiersdorf.com/sustainability/products/raw-materials40https://www.rspo.org/file/acop2016/submissions/beiersdorf%20ag-ACOP2016.pdf41https://mobil.wwf.de/fileadmin/fm-wwf/Publikationen-PDF/WWF-Palm-Oil-Scorecard-2017.pdf42https://www.colgatepalmolive.com/en-us/core-values/sustainability


productsinover200countries.NoUKmanufacturingsitebutmajorimporteroffinishedgoods.

RSPOcertifiedduetolackofavailabilityofPKOcertificates.Expecttobuy100%physicalRSPOby2020.AsofApril2017,83%ofPOandPKOisphysicalRSPO.43

2011-16

P&G Seeabove Unilever Seeabove L’Oreal45 Cosmeticscompany

withaportfolioof34internationalbrands,soldin140countries.NoUKmanufacturingsitebutmajorimporteroffinishedgoods.

Since2010,directpurchasesofPOhavebeenpurchasedaccordingtotheRSPOSGmodel.Since2012,GreenPalmcertificateshavebeenpurchasedtocoverPOderivatives.Since2013,havebeencoveringmorePO/PKOneedsundertheRSPOMBmodeltoreacharound34.4%in2016.Targetfor100%physicalRSPOby2020.46


8outof9points.47

PZCussons48

Marketanddistributeleadingbrandsacrossarangeofcategoriesincludingsoaps,skincare,haircare,babycare,detergents,dishwashing,medicaments,foodandnutritionandelectricalgoods.HQinUK,oneproductionsiteUK.

HaveissuedthePZPalmOilPromise,whichincludesacommitmenttotraceabilityworkingtogetherwiththeirjointventurepartnerWilmarInternational(butnotargetdate).Inthemeantime,procuredGreenPalmcertificatestohelpoffsetthePOusedintheirUK,AustralianandPolishsoapproducts.Targetfor100%RSPOinownbrandproducts,and100%physicalRSPOinownbrandproductsby2023.49


n/a

4.NextStepsIn summary, many of the key players in the oleochemical sector have set clear timelines toachievecertifiedsustainablephysicalflowsforthehomeandpersonalcareindustry,withmanycompanies committing to source 100% physical RSPO certified materials in the near future.Companies appear to be overcoming difficulties in sourcing and supplying certifiedmaterial,oftenbeginningwithMassBalanceoilsasanentrypoint.ManyretailershaveCSPOtargets inline with the Consumer Goods Forum Sustainable Palm Sourcing Guidelines (published in2015),whichishelpingtodrivemomentum.Itshouldbenotedthoughthatonly19%ofglobal

44http://palmoilscorecard.panda.org/check-the-scores/manufacturers/colgate-palmolive43https://rspo.org/file/acop2016/submissions/colgate-palmolive%20company-ACOP2016.pdf45http://www.forumpalmoel.org/fileadmin/user_uploads/NEWS/L_Oreal.pdf46https://www.rspo.org/file/acop2016/submissions/l%20oreal-ACOP2016.pdf47http://palmoilscorecard.panda.org/check-the-scores/manufacturers/loreal48http://www.pzcussons.com/en_int/csr/environment-palm-oil49https://rspo.org/file/acop2016/submissions/pz%20cussons%20plc-ACOP2016.pdf


palm oil production is RSPO certified.50 Therefore, continuing to drive demand for certifiedoleochemicalingredientsisimportantinincreasingcertifiedsupplyoverall.Someretailersmayrequiremoresimple informationontheavailabilityofsustainableoptionsfrommanufacturers, inorder todriveuptake.To incentivise further sustainable consumptionbyconsumers,retailerscanalsoprovideclearlabellingonproducts.AstheUKnearstheAmsterdamCommitment2020deadlinefor100%sustainablesourcingofdeforestation commodities, it is important to continue todrive change in the sector, andalsocelebratethesuccessesofmanyofthekeyplayersinthisarea.

50https://rspo.org/about/impacts

palm oil in the oleochemical sector - efeca · oleochemical derivatives such as surfactants,...

Documents