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till the fires burn. In Sumatra slash and This industry needs palm oil. And despite burn forest clearance is at a six-year high [ASEAN]. Neighbouring Borneo is burn- concerted efforts to make production Sing too, sending a pall of smoke into the region’s skies and destroying the lands more sustainable, slash & burn rainforest of its indigenous people and wildlife, contributing to the deaths of an estimated 6,000 orangutans a year. clearance is still growing to meet rising Booming demand for a lucrative cash crop is fanning the flames, members of the Roundtable on Sustainable demand. What can we all do? Palm Oil (RSPO) were told last month at its 10th annual summit in Singapore. The jungles are being cleared to make way for the world’s highest yielding vegetable oil Rob Brown crop, Elaeis Guineensis – source of palm oil, an ingre- dient that’s found in half of all grocery goods, from bread to body lotion. Our industry is clearly accountable. Despite progress by the RSPO in developing a market for certified sus- tainable palm oil since 2008 – in the year to September, the body says annual capacity was up to 7.1 million tonnes (representing 14% of total global palm oil pro- duction) – a damning 49.8% of this has not found a market [RSPO, 9 m/e 30 September, 2012]. “We need to do a lot better,” concedes RSPO secretary general Darrel Webber. “The moment of truth for us will be 2015 [the date many RSPO members have set for The switching to 100% certified sustainable palm oil use]. “The moment of truth will be 2015: if we don’t burning reach a tipping point by then, the window of opportunity may close” question Darrel Webber, RSPO secretary general If we don’t reach a tipping point in terms of uptake of certified sustainable palm oil use by then, the window of opportunity may close.” So why is uptake slow? Who’s doing the most – and the least – to address the situation? And, with global demand for palm oil expected to double to 100 million tonnes by 2050, what can be done to secure a sustain- able future for the industry... and orangutans? Leaked figures from a report compiled by the RSPO show progress in the UK is reasonably encouraging. Several British supermarkets and manufacturers – led by Asda and United Biscuits respectively – have set industry-leading targets and, in some cases, hit them ahead of schedule. Others are lagging far behind. Aldi and Lidl (a new RSPO member) have so far made no disclosures about their palm oil use and have set no target dates for when they will switch over to certified palm oil in their own label operations. Morrisons is also trailing its peers when it comes to using more certified oil. Just 27% of the 16,834 tonnes the retailer’s own label suppliers use is certified sustainable. Meanwhile Asda, Sainsbury’s and Tesco have switched to 100%, 96% and 77% sus- tainable oil respectively. “As an RSPO member, Morrisons has been working with suppliers for some time on a stepped approach

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to use fully segregated palm oil from a certified sys- “Readers have to look at this as a journey,” he says. tem,” says a Morrisons spokesman. “This phased “In essence we’re in our first year of this. Last year was HOW GROCERY STACKS UP approach allows suppliers to manage the process and all about analysing the situation and communicat- Retailers costs, change their suppliers where necessary and ing to our buyers. Another thing Walmart has done is palm oil use % certified certified 2011 wwf 100% use ensure they are compliant with the appropriate certi- develop a directory that gives our suppliers the infor- Company name (mt) palm oil use palm oil type score Deadline fication regime. We have made steady progress towards mation they need to source sustainable palm oil. That’s Asda* 16,083 100 GP, MB, SG 9 2012 our well publicised target for full segregation by 2015.” unique to UK retailers.” M&S* 8,000 100 GP, SG 9 2015 But progress isn’t quick enough, claim critics. There The Co-op Group* 4,856 100 GP, MB, SG 9 2011 are ample supplies of segregated certified oil – kept The developing world Waitrose* 2,200 100 GP, MB, SG 9 2012 apart from conventional oil at every step in the supply If sustainable palm oil is still proving a tough sell in the Sainsbury’s* 13,357 96 GP, MB, SG 8 2014 chain, and the only way a company can claim the oil in west, it’s even tougher in the developing world. Growth Tesco* 32,795 77 GP, MB, SG 8 2015 its products is untainted. Yet here in the UK, many are in economies like China and India, the world’s two Boots* 539 73 GP, SG 9 2014 dragging their heels in adopting it, they say. biggest palm oil markets, helped triple annual global Morrisons* 16,834 27 GP, MB, SG 8 2015 Even those that appear to be leading the pack come production of palm oil to 46.7 million tonnes between The Body Shop* <1k 75 –100 SG 9 2011 under fire. One soap manufacturer says several British 1995 and 2010 [MVO]. These markets – combined with Aldi* ND ND ND 1.5 ND supermarkets – including Asda, Tesco and Morrisons – growing demand from the biofuel industry – will con- Lidl* ND ND ND 0 ND have so far not switched to segregated palm oil in their tinue to drive demand. Unless these markets switch to own-label soap lines, despite supplies being available. sustainable oil, the forests will continue to burn. Manufacturers A bar of soap can comprise up to 75% palm oil, mak- Under the circumstances, change sounds unlikely. PALM OIL USE % certified Supply chain 2011 wwf 100% USE ing this a key area where progress can be made, says “Many of the people in these countries still live on the Company name (mt) palm oil use options score DEADLINE the manufacturer. poverty line – they are looking for the cheapest way United Biscuits 58,021 100 GP, MB, SG 9 2010 “These supermarkets are talking the talk but not of putting food on the table for their families,” says Burton’s 11,411 100 GP, SG 9 2010 walking the walk,” says the source. “There’s a clear Jeremy Goon, head of sustainability at palm oil pro- Warburtons 1,016 100 GP, MB 9 2015 disconnect between their CSR statements and what palm oil facts cessor Wilmar International. “They are not going to Allied Bakeries (ABF) 973 100 GP, MB, SG 9 2014 they’re doing in practice. They say they’ll use certified pay a premium for sustainable oil. That’s just not going Unilever 1,300,000 68 GP, SG 8 2012 palm oil ‘wherever possible’ – the caveat is, if it doesn’t ●●There’s no viable to happen.” Kraft 247,464 61 GP, MB, SG – 2015 cost them more. It does: it’s about 2p a bar more. Even alternative to palm Not without the help of governments, says Jan Kees H J Heinz 8,461 42 GP, SG 8 2013 though segregated palm oil is available, they have oil, the most efficient Vis, Unilever’s global director for sustainable sourcing Assoc. British Foods 42,138 21 GP, MB, SG 6.5 2015 decided not to use it because of the effect it will have oilseed crop in the and RSPO president. That means lobbying policymak- Premier Foods <50k 75 –100 GP, SG 9 2015 on profits.” world: it’s reckoned ers to lower trade tariffs for certified sustainable palm Findus Group <10k 75 –100 GP, SG 9 2015 The charge isn’t denied at the supermarkets. “There that replacing palm oil. “We’re doing exactly that,” says Vis. “In order to Ginsters <10k 75 –100 GP, SG 8.5 2012 is an element of truth to that,” says a senior source at oil with alternatives transform the markets you need help from the govern- Iglo Group <1k 75 –100 GP 9 2011 one of the big four. “We are more focused on food at the would require at least of palm oil, initially promised to use 100% sustainable ments of India and China. We would only need to shave Jordans & Ryvita (ABF) <1k 75 –100 SG 9 2012 moment. It’s a case of manpower – it’s a complicated 10 times more land for oil by 2015, through a combination of Green Palm cer- off a tiny proportion off the trade tariff to make certified Northern Foods <50k 50–75 GP, MB, SG 3.5 2012 process and we are dealing with a whole pile of food production. tificates and segregation. In April it had a change of palm oil economic in these markets.” Nestlé >100k 25–50 GP, SG 8 2015 manufacturers. Our strategy is to focus on food to start ●●Demand is expected heart, putting back its target to 2020, purportedly to The lobbying is taking place closer to home too, as Dairy Crest <50k 0–25 GP 7 2015 with and then swing around to using segregated palm to double to 100 million make a more wholesale commitment to using 100% the RSPO fights to make certified palm oil more attrac- Kerry Group <50k 0–25 MB 7 2015 oil in personal care later on.” tonnes by 2050. segregated oil. It also pledged to be offsetting all of its tive to more price-sensitive businesses, such as the Reckitt Benckiser <100k ND ND 5 2015 The same charge is also levelled at suppliers: while ●●With yields of up to conventional oil use with Green Palm credits by the end discounters that have so far shown little commitment Notes: Companies in the grey panels feature leaked 2012 RSPO figures. Where these were not Associated British Foods achieved 100% segregated 10 tonnes per hectare of this year, a target Unilever says it is on course to hit. to the organisation’s cause. “In Europe it [tariff relax- available we used figures from the WWF Palm Oil Buyers’ Scorecard 2011. * Own-label palm-oil use. Key: GP: Green Palm certificates; MB: mass balance oil; SG: segregated oil; ND: not disclosed sustainable use in 2010 for its Jordans and Ryvita opera- possible, sustainable However, a source at a leading palm oil producer says ation] would have to happen at an EU level,” adds tions, and Allied Bakeries is also progressing, the vol- oil production should multinationals like Unilever could have hit these tar- Vis. “Individual members of the RSPO are talking to umes involved here are a drop in the ocean versus the appeal to growers as gets sooner, by buying available Green Palm credits. “It Brussels. There are also nominal commitments from Products 42,138 tonnes it uses across its retail and manufacturing much as suppliers. is laudable that Unilever has set a target of 100% segre- the British government.” operations. The RSPO’s leaked figures for 2012 suggest ●●There are three gated palm oil by 2020 and wants to be completely cov- But without better communication the RSPO’s efforts Associated British Foods (ABF) is still struggling, with options for companies ered by Green Palm credits by the end of the year,” says may fall on deaf ears. Currently public recognition just 21% of the palm oil it uses a year certified sustain- looking to switch to the source. “But why haven’t they done this sooner? of the issue is dismal, a YouGov survey carried out able. An ABF source says this is down to supply chain sustainable palm The credits are available, after all.” exclusively for The Grocer has revealed, with only 3% complexity and the variety of markets and sectors the oil: segregated is And while Asda is making great progress – all of of UK consumers recognising the RSPO trademark, manufacturing and retail giant operates in. the most expensive, the 16,083 tonnes of palm oil Asda uses is sustain- which was launched in 2010 with the aim of increasing And it’s not the only one that’s struggling to make the but guarantees it is able (27.6% is segregated; 4% is mass balance; the demand for sustainable palm oil [see overleaf]. Margarine Soap Baked goods transition: all the big volume palm oil players, includ- untainted; mass- remainder is offset with Green Palm credits), globally “Use of the RSPO trademark would undoubtedly Palm oil content can Up to 75% of soap can The industry has made ing Unilever, Nestlé and Reckitt Benckiser are moving balance mixes certified it’s another story: Walmart gets through 84,000 tonnes help raise awareness among consumers – we support vary from 10% (low consist of palm oil important steps towards quite slowly. and conventional under of palm oil a year and currently just 18% of that is certi- its use in general because that means it can be inde- fat spreads) up to as derivatives. As personal ensuring the palm oil RSPO supervision; and fied sustainable, through a combination of Green Palm pendently verified, is underpinned by a robust supply much as 50% (baking care sales grow in content of products like Missed opportunities offset, which accounts credits, mass balance and segregated. chain accreditation and ultimately offers consumers margarine), say industry developing markets, Jan biscuits and bread is But there are interim steps – purchasing Green Palm for 72% of all certified The retail giant says it is on track to hit its target of the opportunity to make properly informed decisions insiders. “You can’t Kees Vis says Unilever certified sustainable, certificates to offset conventional oil use and using so- oil sales, in which Green 100% segregated palm oil use globally by 2015. But the about palm oil,” says a spokesman for New Britain Palm be more precise on is offsetting its demand with players like Allied called mass balance oil, a combination of certified and Palm certificates can be same criticism levelled against Unilever can be made Oil, a vertically integrated supplier and the operator of content – manufacturers by cutting the palm Bakeries, Warburtons uncertified oil – companies could be making now to traded for $2 each plus of Walmart: why is it not offsetting the conventional the UK’s only segregated palm oil mill. “As your num- will vary it depending oil content of its food and United Biscuits all support sustainable means of production in the mean- a further $2 brokerage oil it needs as it works towards its goal? Julian Walker- bers suggest, the end consumer is hardly engaged in on prices, switching products: “That’s why making strong progress. time. And again, even industry leaders in the switcho- and admin fee. All of the Palin, Asda’s head of corporate sustainability, says the this process because palm oil is so commonly labelled to alternatives when the volume we use at However, the palm oil ver to sustainable palm oil are missing opportunities. certificate value goes to switchover to sustainable oil, which involves in-depth as ‘vegetable oil’. That should change in 2014 as new they become more Unilever – 1.4 million content of such products For example, Unilever, the world’s biggest single user certified palm growers. auditing, is a complex process. labelling rules come in to effect. Perhaps greater economic,” says one. tonnes – is fairly flat.” is relatively low.

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which of these logos do you recognise? “If the industry doesn’t palm oil: flash points act it will be almost Society Orangutan / Sumatran Jones Craig Credit entirely responsible for the extinction of the orangutan” Michelle Desilets, Orangutan Land Trust

grower members are certified ‘sustainable’. He adds Assured Rainforest Marine Certified that it would be incorrect to portray palm growers as Fairtrade Food Standards Alliance Stewardship Council Sustainable Palm Oil struggling, cash-strapped farmers. “This is probably the only crop that smallholders can make any serious money from – you will hardly ever see a poor smallholder, relatively speaking,” he says. 86% 48% 38% 11% 3% “The premium is the icing on the cake for them. The real benefits for the plantation guys come from better efficiency, better relations with their neighbours and Palm oil is a hidden ingredient. It the experts at influencing consumers. fewer disruptions to production. The smart operators seems some in the industry want to Consumer goods brands aren’t using know that the premium is not the only issue.” keep it that way. Just 13 companies the logo because they’re afraid it Better management of plantations, a subject on have applied for a licence to use will be seen as a mark of sin instead which the RSPO provides advice, can certainly pay div- the on-pack trademark the RSPO of a badge of honour. We need more idends for growers. The difference between yields can launched in 2010 to increase public bravery. It’s pathetic.” vary wildly and while issues like soil type play a part awareness of sustainable palm oil. Sainsbury’s has designed its own here, better management is also a significant factor. It shows. A YouGov poll for The Grocer logo to denote products that contain Trials have shown that yields of up to 12 tonnes a found just 3% of UK consumers segregated oil or support the RSPO hectare are possible. The hope is that by increasing recognise the logo. And only 26% through the use of credits. But few the productivity of existing plantations, the need for say it is likely to have a bearing on brands – retailers and suppliers – look further forest clearances would be reduced. “Perhaps whether they would buy a product. likely to adopt the trademark any we should invest more in yield improvement if we have That’s the lowest score of the five time soon however. Unilever certainly to expand production,” says Vis. “But if we have to on-pack logos featured in our poll. won’t, says Jan Kees Vis: “Palm oil expand into landscapes, why not expand into land RSPO secretary general Darrel Webber is just one of many ingredients we that’s already been deforested?” is clear on who’s to blame. “We want use. We might end up with five or 10 It’s a question that’s brought the RSPO to impasse as The RSPO is not immune to controversy. There are several cases in which our members to communicate this,” trademarks on the back of our packs. the body’s disparate stakeholders – growers, proces- members of the organisation have been accused of flouting the RSPO’s rules. he says. “They make people buy stuff Who’s going to understand or read sors, manufacturers, retailers and NGOs – thrash out Critics say that if the RSPO is to maintain its legitimacy it needs to be seen to they don’t need every day – they’re them?” a new set of principles and criteria, which should have be coming down hard on violations. been agreed in October. The deadline has since been extended to next March. Aceh Tamiang Jambi Long Teran Karan Extinction PT Sisirau PT Asiatic Persada IOI Corporation use of the RSPO logo will be seen then.” It’s a point manufacturers acknowledge too. “Only a But previously deforested land is not necessarily This orangutan (above) Unilever got caught IOI, one of Malaysia's Few businesses are shouting about their reliance on “Brands aren’t small part of the [$25 premium certified palm oil car- empty, as RSPO member PT Sisirau was reminded is one of seven starving up in the backlash biggest palm oil palm oil either (just 13 companies have applied for a ries] is going to the plantation,” says Edwin Reigman, earlier this year when it discovered seven orangutans primates rescued from against supplier producers, stands licence to use the RSPO trademark so far). And given using the R&D manager at FrieslandCampina. “Most of it – living on scrubland on its 3,000-hectare plantation Sisirau’s plantation Asiatic Persada after it accused of ignoring the negative associations stirred up by campaigns like RSPO logo maybe 90% – is spent on logistics. In principle that’s in Aceh Tamiang (see right). Workers subsequently in northern Sumatra, bulldozed the homes the ancestral rights of Greenpeace’s infamous 2010 ‘orangutan finger’ Kit Kat a waste of money.” removed the few remaining trees the primates were liv- says the Sumatran of 80 people to prepare local people to land in ads, it is hardly surprising. because they And while many UK manufacturers are prepared ing in before they were rescued, says NGO Sumatran Orangutan Society land for plantation. Sarawak. The RSPO are afraid it to pay the premium, because it’s often absorbed by Orangutan Society, which is calling for the company (SOS). The RSPO is now NGO Rainforest Rescue is investigating and Bloated middlemen weekly fluctuations in market prices – others suggest to be suspended from the body. investigating allegations says Asiatic breached mediating negotiations Some of these associations even extend to the RSPO will be seen as the waste of time and money has led to a lack of engage- Fellow NGO the Orangutan Land Trust is backing that the company’s evictees’ human rights between the grower and itself. One senior figure from an RSPO member com- a mark of sin. ment among growers, who currently represent just 15% the calls. “Latest figures, which are eight years old, workers destroyed the in forcibly moving them local people. Secretary pany claims the body has become bloated with con- of the RSPO’s 1,088 members. “How can we say we’re suggest there are 60,000 orangutans left in the wild,” orangutans’ habitat, from the land. Unilever general Darrel Webber sultants and advisors. It’s pathetic” sustainable when the number is so low?” asks Simon says executive director Michelle Desilets. “Conversion leading to their disagrees. “There are at rejects claims that it “The extra money generated is going into the hands Darrel Webber, RSPO Siburat, PPB Oil Palms’ group sustainability controller, of orangutan habitat is contributing to an estimated starvation. It says it is least four sides to this has gone lightly on the of consultants – the real value doesn’t flow down to the secretary general adding that Sarawak – the Malaysian part of Borneo, 3,000 deaths a year. Another 3,000 are attributed to now awaiting a formal story,” says Jan Kees Vis. company because of its producers at all,” says the source, pointing to the recent on course to produce 3 million tonnes of crude palm oil orangutans being killed by humans brought into closer response from the “There’s also the side standing in the RSPO as accreditation of four Thai palm-growing smallholders, this year – only has four grower members. contact with them as plantations spread. If the palm oil company. The primates of illegal occupation of a founder. “Try us,” he the first of their kind to be certified ‘sustainable’. “The Webber rejects suggestions that a lack of financial industry doesn’t act it will be almost entirely responsi- have since been released land, the stealing of fruit says. “We've suspended RSPO spent $3m on certifying those smallholders. The incentive is preventing greater grower engagement, ble for the extinction of the orangutan.” back into the wild by the and the migration of bigger companies than majority of that went on consultants.” however, despite the fact only a quarter of the RSPO’s By extension, so will we all. SOS and partners. villagers.” IOI before.”

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