QUESTION TIME
uestiontime
This month’s question: Is the food and drink industry's ambition of sourcing 100 per cent sustainable palm oil by 2015 realistic? And what actions will need to be taken to achieve this aim?
Made from the fruit of the oil palm, palm oil has over the past 15 years seen a dramatic increase in demand, with over 50 million tonnes being produced in 2012. Its popularity is largely down to its versatility, as well as its relative inexpense and high yield. It is now found in a wide variety of FMCG goods from biscuits and cereals to soaps and laundry detergents. However, this vast expansion in use has not come without cost. The oil palm grows only in tropical climates, and the dramatic increase in demand has led to large areas of deforestation in Indonesia, resulting in serious ecological repercussions. To combat this, the Roundtable on Sustainable Palm Oil (RSPO) was set up with the goal of transforming the market into one of sustainability for “People, Planet, and Prosperity”. The organisation brings together conservation groups, as well as palm oil firms in a
commitment to ensure palm oil only comes from sustainable sources. For further information please visit
www.rspo.org
ANDREW KYUK DIRECTOR, SUSTAINABILITY, FDF
Building a secure and
sustainable food supply chain is not only fundamental to the success of individual businesses, but also to meeting our customers’ needs to provide a wide range of safe, nutritious and affordable food. As the world's most used vegetable oil, palm oil is a vital ingredient in the production of many F&D products. With global consumption rising, the food and drink industry recognises the need to take steps to source their palm oil more sustainably to reduce the negative impacts associated with palm oil production.
Many UK food and drink manufacturers are active members of the Roundtable on Sustainable Palm Oil (RSPO) and have in place longstanding commitments to use only certified sustainable palm oil (CSPO) by the end of 2015, bought via RSPO-approved trading systems. Leading manufacturers have already made substantial progress towards achieving their commitments. For example, Unilever reached its target of using 100% certified sustainable
manufacturers including Associated British Foods (ABF) which has built on the good performance of subsidiaries such as Allied Bakeries and the Jordans and Ryvita Company and now has in place a group- wide commitment to the responsible sourcing of palm oil. Notwithstanding this excellent progress, there are however, still some barriers to overcome. While segregated, CSPO is available for those using refined palm oil, the majority of palm oil consumed is actually in the form of
derivatives, fractions or blends as well as in other ingredients which themselves contain palm oil. Sustainable supplies of these products are not always available or are often limited.
Smaller manufacturers face particular challenges and may not be aware that the ingredients they use in manufacturing have been produced using palm oil. Certified sustainable options of specialist ingredients are often not available from suppliers. It is also vitally important that all sectors involved in the palm oil supply chain, including those outside the food and drink sector such as cosmetics and pharmaceuticals recognise the need to work together. That is
“It is vitally important that all sectors in the supply chain recognise the need to work together.”
palm oil three years ahead of schedule and has subsequently set a revised target of
purchasing all of its palm oil from traceable sources by 2020. The WWF’s Palm Oil Buyers’ Scorecard also highlights good progress by other F&D
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FMCGNews.co.uk
why the Food and Drink Federation (FDF) recently signed up to a national statement pledging to work collaboratively with other industries towards the stated ambition of sourcing 100% sustainable palm oil by 2015. As part of the pledge, FDF
committed to work with its members to raise awareness and recently developed a simple guide; Sustainable Sourcing: Five Steps Towards Managing Supply Chain Risk, which sets out a step-by-step process to help food and drink
manufacturing businesses of all sizes to manage their supply chains more sustainably. With the global food system coming under increasing pressure from the impacts of climate change, population increase, a growing demand for limited resources and changing diets, it makes perfect sense to build a more resilient supply chain and safeguard the natural resources on which future production depends. We look forward to working with all sectors for a more joined-up and collaborative approach to achieve this ambition.
ANDY WORRALL, GENERAL MANAGER, NEW BRITAIN OILS
Last year, the Department for Environment, Food and Rural Affairs issued a national statement concerning sustainable palm oil. It placed renewed pressure on the food industry to source 100% of its palm oil ingredients from certified sustainable sources by 2015. Many of the UK’s leading retailers have already pledged to meet this, but unless using sustainable palm oil becomes a requirement for everyone in the supply chain, there is a good chance this target will not be met.
It has consistently been the case that only 50% of RSPO (Roundtable on Sustainable Palm
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