Consumer interest in the environmental issues surrounding palm oil production is growing rapidly.
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Sustainable options for derivatives and blends are being developed, but as the market stands today, in many cases it is not commercially viable to use these. Find out more here on palm oil derivatives. Similarly, sustainable palm kernel oil is available, but currently at high cost.
Cost and complexity
Full segregation of certified sustainable palm products, adhering to RSPO criteria, requires every party at every step of the supply chain to be RSPO certified, from the producer and the refiner to the freighters and the buyer.
It can also be commercially impractical. For example, where palm oil is used as an ingredient, it is often in the solid form of stearin, particularly in confectionery, pastries, margarines and soap. To create one tonne of certified sustainable stearin, it takes five tonnes of certified sustainable palm. The refiner must then find a market for the remaining certified sustainable olein, either bearing the cost or passing it on to the customer.
A solution for today
Until fully segregated certified sustainable palm is available in all forms, manufacturers need a solution now, to make a genuine financial commitment to supporting its production.
GreenPalm is currently the most commercially viable and straightforward option for supporting sustainable palm oil production. Manufacturers can offset their use of palm products, in any form, by paying a producer for an equivalent amount produced sustainably.
This gives producers an incentive to work sustainably and allows people whose livelihoods depend on palm oil production to continue making a living. The system works – and is prompting increasing numbers of producers to follow suit.