supply chain

Buyer policy listing: Ferrero says added EUR 1/person/year cost to EU consumers for low-contaminant & sustainable palm oil


Here's a gradually expanding listing of recent buyer policy updates on palm oil. Update for Cargill, added to top of this and sequence for most recent from the top. Early updates include: Walmart on organic, MPONGOC, J&J and a listing of TFT clients, Kao and Greenpeace challenge to key India and China producers and Adelaide Zoo switch form "palm oil free" to certified frozen desserts; adds on supply-chain certification news and the Cargill-TFT link up. Interesting contrast between Krispy and Dunkin. Also a report from Forest Heroes which seeks to "saves the Sumatran Tiger." It has a "media hit" with its campaign on Kellogg's Frosties (which has a tiger mascot). Hershey joined TFT, and Greenpeace and UCS reactions added - basically with critique of lack of third party verification and strict deadline under the TFT program. Then Bunge shifted to traceability and set to avoid high risk sourcing zones. Mondelez sets out rules on online data mapping, deforestation, and labour rights.


27 Nov 2017: Ferrero says added EUR 1/person/year cost to EU consumers for low-contaminant & sustainable palm oil


Editor's note: Also interesting to chat with mill process engineer expert who wrote this: How Cancer causing substances crept into food products containing palm oil? 20/11/2017 By EnergyWise
http://rank.com.my/energywise/?p=800#sthash.INv6CAUi.dpbs 

Ferrero decided to directly obtain RSPO certified segregated palm oil, which keeps sustainable palm oil physically separated from non-sustainable palm oil and source it from certified sustainable plantations to the production line... "We also wanted a commitment from smallholders, (from whom RSPO was sourced), including (an assurance that they are) not using paraquat," he told Malaysia journalists after a talk on the food sector and sustainable palm oil policies at the European Palm Oil Conference on Thursday.... "So, the issue here is not in finding the right palm oil, because there is lot of palm oil in the market. The issue is whether the industry is ready to pay the right premium for the (RSPO) palm oil" he asked. Hence, for best practices in sustainable palm oil and low contaminants in palm oil, Ferrero pays a premium of 130 euros per tonne, which sums up to an additional 25 million euros, annually.... However, the impact of the price on the final product to the consumers is almost irrelevant, said Charrier. He said the company sourced 180,000 tonnes of palm oil or 0.3 per cent of the total global production annually. Out of which, 90 per cent came from Malaysia and the rest from other producing countries. "So, if all edible palm oil used in EU has the same premium as Ferrero, the extra cost would be 500 million euros per annum - that would go to the upstream of Malaysia and Indonesia. "Assuming this extra cost is fully passed to EU consumers, that would mean one euro per capita per year," he explained.... http://www.malaysiandigest.com/news/709575-sustainable-palm-oil-it-takes-two-to-tango-says-ferrero.html


9 Dec 2016: Can the big brand buyers really get enough sustainable product?


Confidence in secure commodity supply chains 'misplaced' By David Burrows, 08-Dec-2016 -- Confident there’s enough soy, palm oil and beef to go around and your policies can weather the risks ahead on everything from climate change and deforestation to reputation and regulation? Think again, say the authors of two new reports. .... Almost three quarters (72%) of the firms believe they will be able to access a secure and sustainable supply of forestrisk commodities going forward. But this confidence may be “misplaced” for a number of reasons, CDP warned. For example, just one in five firms is looking at risks beyond the next six years, whilst only 30% of manufacturers and retailers can trace these commodities back to the point of origin. Fewer than half (42%) have evaluated the impact of the availability or quality of the commodities on their growth strategies further than 2020.... http://www.foodnavigator.com/Market-Trends/Confidence-in-secure-commodity-supply-chains-misplaced

7 Dec 2016: Mondelez International palm supplier requirements, worries about saturated fats formulations

US food and beverage multinational Mondelez International set out new requirements on 10 November for its suppliers of palm oil. Key new provisions in its updated Palm Oil Action Plan require suppliers to:
- Map and assess the risk for all supplying mills on Global Forest Watch (an interactive on-line forest monitoring and alert system)
- Provide assurance that no deforestation occurs on their own concessions and exclude third-party suppliers who do not immediately cease deforestation
- Work with recognised third-party experts to protect labour rights
http://www.ofimagazine.com/news/mondelez-sets-new-requirements-for-palm-oil-suppliers?

Findings point to risk from saturated fats outside some reduction guidelines, Harvard-Unilever study confirms link between sat fats, heart disease & importance of reformulation By Nathan Gray+ 28-Nov-2016 -- However, it goes further than previous studies by identifying links between specific saturated fatty acids – including stearic acid, which some countries such as France do not currently include in saturated fat legislation…. “Research from us and others has shown that some dairy products (such as yoghurt) and odd-chain fatty acids circulating in the blood seem to have health benefits rather than health harms, and this requires further study.”
http://mobile.foodnavigator.com/Science/Harvard-Unilever-study-confirms-link-between-sat-fats-heart-disease-importance-of-reformulation

And back in 2013…Industry saturated fat pledge is a ‘mixed message’ and ‘bit of hype’, says obesity expert By Caroline Scott-Thomas+ 28-Oct-2013 -- A food industry pledge to reduce the saturated fat content in a range of foods is a ‘bit of hype’ and will fail to change diets unless more companies sign up, according to trustee of the National Obesity Forum Tam Fry.... The UK Department of Health’s public health minister Jane Ellison announced the pledge on Saturday, under which some of the signatory companies have pledged to remove saturated fat from their products, and others have said they would reduce saturated fat content.... “It’s hugely encouraging that companies providing almost half of the food available on the UK market have committed to this new Responsibility Deal pledge and they are leading the way to give their customers healthier products and lower fat alternatives,” Ellison said in a statement.... According to the DoH, cutting saturated fat consumption by 15% could prevent around 2,600 premature deaths a year in the UK, from conditions such as cardiovascular disease and stroke.... http://mobile.foodnavigator.com/Policy/Industry-saturated-fat-pledge-is-a-mixed-message-and-bit-of-hype-says-obesity-expert



10 July 2016: Michelin goes for Greenpeace's HCS Approach


Greenpeace France’s reaction to Michelin Zero Deforestation Commitment Press release - June 13, 2016 -- Michelin Group, world leading tyre manufacturer and first world buyer of natural rubber just published a zero deforestation procurement policy based on the methodology High Carbon Stock (HCS) Approach   http://www.greenpeace.org/africa/en/Press-Centre-Hub/Greenpeace-Michelin-Zero-Deforestation-Commitment/



13 December 2015: Hershey- TFT update, Proforest sourcing guidelines, Proforest - AAK, Vopak Vlaardingen, the first RSPO terminal worldwide. Croda and BASF. Uptake problem. Rabobank forecast. Swedish initiative.


Hershey Expands Sustainable Sourcing Efforts with New Deforestation Commitments December 03, 2015  •New Pulp and Paper Policy expands commitment to help prevent deforestation  •Palm Oil Tracing Update: Tracing to mills nearly complete and mapping to plantations ahead of schedule... “Preventing deforestation has never been more important,” said Susanna Zhu, Chief Procurement Officer at The Hershey Company. “We continue to learn more about the geography of our palm oil supply chain and are having productive conversations with suppliers about our expectations. While we’re pleased with our palm oil sustainable sourcing progress so far, we know there is more work to be done. This effort, along with our Pulp and Paper Policy, will help us continue to ensure that we’re achieving our high sustainable sourcing standards.” ...Beyond pulp and paper sourcing, Hershey’s additional efforts to reduce its impact on deforestation include the company’s ongoing work with The Forest Trust (TFT) to trace its palm oil supply chain to mills and plantations. As of the second quarter of 2015, Hershey has traced its supply chain to approximately 90 percent of all the mills where the company’s palm oil is processed. Additionally, Hershey has achieved 10 percent traceability of its palm volume to the original palm oil plantations. These results keep Hershey ahead of schedule to deliver planation-level traceability by the end of 2016.   http://www.businesswire.com/news/home/20151203005301/en/Hershey-Expands-Sustainable-Sourcing-Efforts-Deforestation-Commitments

Proforest - New guide to responsible sourcing published 04.11.2015  - Proforest publishes new practical guide to implementing responsible sourcing commitments http://www.proforest.net/en/news/new-guide-to-responsible-sourcing

Sourcing palm oil responsibly: our partnership with AAK. 21.10.2015 With Proforest's support, palm oil giant AAK has achieved 100 percent traceability of its palm oil to mill. Here, Proforest director and co-founder Neil Judd talks about the partnership, what it means to be a 'critical friend' and the Proforest approach to responsible sourcing. AAK partnered with Proforest in May 2014... http://www.proforest.net/en/news/sourcing-palm-oil-responsibly-our-partnership-with-aak-on

Vopak Vlaardingen, the first RSPO terminal worldwide 03 December 2015, Vopak Vlaardingen is the first terminal in the world to obtain RSPO certification. RSPO stands for 'Roundtable on Sustainable Palm Oil '. This organisation was created ten years ago, with the aim of developing standards for sustainable palm oil production, in order to promote and enhance the production and consumption of sustainable palm oil https://www.portofrotterdam.com/en/news-and-press-releases/vopak-vlaardingen-the-first-rspo-terminal-worldwide

Croda bags Certified Sustainable Palm Oil for its global manufacturing facilities By Simon Pitman+, 09-Nov-2015  With the growing importance on sourcing and processing sustainable palm oil, Croda has fulfilled requirements for all of its manufacturing facilities to comply with industry standards. http://www.cosmeticsdesign.com/Formulation-Science/Croda-bags-Certified-Sustainable-Palm-Oil-for-its-global-manufacturing-facilities

Low uptake of sustainable palm oil  7 November 2015... Only half of RSPO-certified palm oil finds a buyer. THERE is a sluggish uptake of sustainable palm oil, and the frequent excuse is that nobody wants to pay the premium. What is the Roundtable on Sustainable Palm Oil (RSPO) response to this?... Bek-Nielsen (who is RSPO co-chair, MPOA): People generally do not like broken promises. Growers are no exception and the growers who committed themselves to the RSPO in many instances feel short-changed. The producers have taken a leap of faith undergoing an herculean task (not without costs) to live up to the standards of sustainable palm oil set in force by a number of stakeholders, amongst them NGOs and multinationals like WWF, Conservation International and Unilever to mention a few....http://www.thestar.com.my/business/business-news/2015/11/07/low-uptake-of-sustainable-palm-oil/?style=biz


Palm oil demand growth offers opening for niche certified producers By RJ Whitehead, 05-Nov-2015 Global demand for certified sustainable palm oil will double in five years, growing from 5.3m tonnes in 2014 to 11m by 2020, predicts Rabobank. http://www.foodnavigator-asia.com/Markets/Palm-oil-demand-growth-offers-opening-for-niche-certified-producers

Swedish initiative for sustainable palm oil in chemical products by Joakim Persson / on November 1, 2015  Suppliers, manufacturers and retailers in Sweden have joined together in an initiative enabling a long-term switch to more sustainably produced, certified and traceable palm oil in both cosmetics and hygiene products such as detergents and cleaning products, reports http://scandasia.com/swedish-initiative-for-sustainable-palm-oil-in-chemical-products/

Is RSPO certification becoming irrelevant? By Niamh Michail+, 28-Oct-2015 Companies are increasingly demanding certified palm oil using criteria that are stricter than current RSPO standards – does the mean the RSPO certification is in danger of becoming irrelevant? http://www.foodnavigator.com/Policy/Is-RSPO-certification-becoming-irrelevant

BASF’s 'new palm positioning' on RSPO certification in Asia By Michelle Yeomans+, 27-Oct-2015 BASF is expanding its commitment to only source RSPO-certified sustainable raw materials with upstream traceability for palm oil and palm kernel oil fractions and edible oil esters by 2025. http://www.cosmeticsdesign-asia.com/Business-Financial/BASF-s-new-palm-positioning-on-RSPO-certification-in-Asia

PepsiCo’s palm oil pledge should not exempt Indofood, NGOs say - The global food and beverage giant recently promised to source deforestation-free palm oil, but green groups say the commitment should apply to joint venture partners that sell its branded partners. That includes Indofood, Indonesia's largest food company. by Mongabay.com  29 October 2015 http://www.eco-business.com/news/pepsicos-palm-oil-pledge-should-not-exempt-indofood-ngos-say/

A new business model for palm oil? The recent haze in Southeast Asia has sparked renewed calls for alternatives to palm oil products. In this interview, Forum for the Future founder Jonathon Porritt tells Eco-Business why the industry - which also provides thousands of livelihoods worldwide - needs a new business model, not boycotts.  By Vaidehi Shah  16 October 2015 http://www.eco-business.com/news/a-new-business-model-for-palm-oil/

19 October 2015: BASF, PepsiCo, Cargill

BASF Expands Production Capacity for Emollients and Waxes in China NewswireToday - /newswire/ - Hong Kong, Hong Kong, 2015/10/08 - BASF will expand its emollients and waxes production capacity with a new plant at its site in Jinshan, Shanghai - Care-Chemicals.BASF.com. DE000BASF111 http://www.newswiretoday.com/news/155355/

BusinessCase: Sustainability Initiatives Have Saved PepsiCo Over $375M Since 2010 September 25, 2015; The water, energy, packaging and waste-reduction initiatives have been tallied up, and PepsiCo, Inc. asserts that its environmental sustainability initiatives have saved the company more than $375 million since its goals were established in 2010. The company proudly announced this week that it also delivered double-digit net revenue and operating profit growth during the same time period, demonstrating a solid business case. The results of PepsiCo’s Performance with Purpose commitment are detailed in its 2014 Corporate Social Responsibility Report, Global Reporting Initiative (GRI) Report, and first-ever sustainability microsite, howwillwe.com. PepsiCo says the microsite is “an interactive and immersive experience” to engage users in discussion around how we will grow sustainably, thrive in a changing environment, and create opportunity. http://www.sustainablebrands.com/news_and_views/waste_not/hannah_furlong/businesscase_sustainability_initiatives_have_saved_pepsico_o

Cargill Marks Anniversary of No-Deforestation Pledge With New Forest Policy; Greenpeace Wants More September 18, 2015 by Sustainable Brands; On Wednesday, just a few days from the first anniversary of the New York Declaration on Forests (NYDF) — an international, multi-sector commitment to safeguard the world’s forests and to help tackle climate change signed by Cargill and other major multinational companies, governments, and civil society organizations at last year’s UN Climate Summit — Cargill released a new Policy on Forests. Backed by forest protection action plans for Cargill’s priority commodity supply chains, the policy sets a comprehensive approach for the company in its efforts to prevent forest loss. “Deforestation is a global issue, but a local challenge. We’re committed to working with farmers, government, business, advocacy organizations and consumers to help craft and implement solutions tailored to the diverse landscapes we seek to protect,” said Paul Conway, Cargill’s vice chairman. “Our Policy on Forests is one of the ways we are working to feed a growing population while also sustaining vital forest ecosystems for generations to come.” http://www.sustainablebrands.com/news_and_views/business_models/sustainable_brands/cargill_marks_anniversary_no-deforestation_pledge_

 

13 September 2015: Starbucks, Oregon Zoo


Starbucks and palm oil, wake up and smell the coffee  Sponsored by: RSPO By Hanna Thomas Tuesday 25 August 2015 16.31 BST; Consumer action is vital if we’re going to tackle deforestation and social exploitation in the palm oil supply chain http://www.theguardian.com/sustainable-business/2015/aug/25/starbucks-palm-oil-campaign-2015-sumofus-consumers-deforestation-commitments

Oregon Zoo to only sell food made with responsibly produced palm oil Posted:  Aug 25, 2015 4:34 AM Updated:  Aug 25, 2015 4:34 AM   By FOX 12 Staff Vivian, a Malayan sun bear, climbs a log at the Oregon Zoo. Sun bears are one of many species threatened by deforestation to make way for palm oil plantations. Photo by Michael Durham, courtesy of the Oregon Zoo.Vivian, a Malayan sun bear, climbs a log at the Oregon Zoo. Sun bears are one of many species threatened by deforestation to make way for palm oil plantations. Photo by Michael Durham, courtesy of the Oregon Zoo.
PORTLAND, OR  Read more:
http://www.kptv.com/story/29868099/oregon-zoo-to-only-sell-food-made-with-responsibly-produced-palm-oil#ixzz3lbatuHP3

7 September 2015: Clorox's commitment


Clorox Company’s New Palm Oil Commitment is a Step Forward September 3, 2015; WASHINGTON (September 3, 2015) – The Union of Concerned Scientists (UCS) today commended the Clorox Company for committing to responsibly sourcing palm oil in its supply chain by 2020; Clorox Company uses palm oil in product lines such as Burt’s Bees and Green Works, which the company markets as “natural” and environmentally friendly. “This is a win for forests,” said Lael Goodman, an analyst with UCS’s Tropical Forests and Climate Initiative. “Clorox’s competitors, including Procter & Gamble and Colgate-Palmolive, have already issued deforestation-free palm oil commitments, so it’s good to see Clorox follow their lead, especially since they market some of their products as green. ” Earlier this year, UCS scored 10 major personal care companies on their palm oil sourcing standards. http://www.ucsusa.org/news/press_release/clorox-company-new-palm-oil-commitment-is-a-step-forward-0524#.Ve2OJoywqrQ

24 August 2015: Why are companies hiding their sustainable credentials? FoodNavigator (some details)

Why are companies hiding their sustainable credentials? By Niamh Michail, 29-Jul-2015; Eco-labels make food taste better and consumers feel better about themselves. They boost a company's image and consumers are willing to pay more. And yet despite these benefits, only around half of total RSPO certified palm oil is sold as certified sustainable according to a report by the International Institute for Sustainable Development (IISD), while just 35% of cocoa certified by the Rainforest Alliance, UTZ or Fairtrade bear a certification logo. For sugar the figures are even lower – in 2012 only 16% of certified sustainable cane sugar was sold as such, said the Food Climate Research Network (FCRN ). But why would companies go to pains to certify a key ingredient and then not inform their consumers?....
  • some feature it in certain brands as upmarket and niche and up the price tag
  • supply and demand are not always in sync and in part by a lack of industry commitment in certain consumer markets to sourcing and paying - RSPO
  • Rainforest Alliance logo may only be used if the certified ingredient was a ‘core ingredient’ ... or if it made up at least 30% of the total product
  • manufacturers weren't looking to conceal the sustainability of the ingredient – but rather the presence of the ingredient itself
  • in some countries sustainability issues simply do not resonate with consumers – such as India and China
  • Elsewhere it could be the exact opposite problem – that Western consumers are suffering from eco-label fatigue
  • standardisation of sustainability will further reduce the need for companies to communicate their efforts
http://www.foodnavigator.com/Market-Trends/Why-are-companies-hiding-their-sustainable-credentials

22 August 2015:  Interest in sustainably sourced palm oil in India is minimal


Without India, you can forget about achieving a sustainable palm oil sector - All eyes are on India, the world’s largest palm oil importer, and whether companies can help shift consumers towards sustainable choices; India’s 1.2 billion citizens consume approximately 15% of the global supply of palm oil. The vast majority of the commodity (95% according to WWF figures) is used as edible oil, with the remainder added to haircare and beauty products. The country imports nearly all of its palm oil, more than two-­thirds of which is sourced from Indonesia.... At the annual World Bank conference on land and poverty held in Washington in March, Prabianto Mukti Wibowo, assistant deputy minister for forestry in Indonesia’s economic affairs ministry said: “We know that our primary customers are not concerned about deforestation.”
Unlike the boycotts and consumer awareness in Europe and the US, interest in sustainably sourced palm oil in India is minimal, putting little pressure on the domestic market to shift to more sustainable sources.
http://www.theguardian.com/sustainable-business/2015/aug/10/india-palm-oil-sustainability-deforestation-unilever-greenpeace

19 August 2015: Italian politicians defend palm oil, Why are companies hiding their sustainable credentials? FoodNavigator news. Consumer Goods Forum palm oil sourcing guidelines.

Italian politicians defend palm oil By Caroline Scott-Thomas+, 18-Aug-2015
Italian politicians have submitted two resolutions to parliament defending alm oil in the face of anti-palm oil campaigns, calling it a raw material of fundamental importance for Italian industry.
http://www.foodnavigator.com/Policy/Italian-politicians-defend-palm-oil

Why are companies hiding their sustainable credentials? By Niamh Michail+, 29-Jul-2015; A sustainable logo is known to add value to a brand – so why are so many manufacturers not showing their Fairtrade, organic or sustainable credentials?http://www.foodnavigator.com/Ingredients/Carbohydrates-and-fibres-sugar-starches/Why-are-companies-hiding-their-sustainable-credentials

The Consumer Goods Forum Publishes Palm Oil Sourcing Guidelines  Published: Tuesday, 11 August 2015 12:16  Consumer Goods Industry’s First Ever Set of Sustainable Palm Oil Sourcing Guidelines to Help Drive Implementation of ‘Zero Net Deforestation’ Resolution; PARIS, 11th August 2015 – The Consumer Goods Forum (“CGF”) today announced publication of the first-ever ‘Sustainable Palm Oil Sourcing Guidelines’ (the “Guidelines”). This publicly available document is an important step in helping the consumer goods and retail industries to achieve zero net deforestation by 2020, as outlined in the CGF’s Deforestation Resolution.... http://www.theconsumergoodsforum.com/the-consumer-goods-forum-publishes-palm-oil-sourcing-guidelines

20 June 2015: Nutella flap - Greenpeace defends position for maker which is part of POIG and apparent client of The Forest Trust (associated with Greenpeace in both)

Greenpeace says boycotting Nutella is wrong – it’s NOT destroying the planet by Lianna Brinded Jun. 18, 2015, 6:34 PM; Greenpeace says French ecology minister Segolene Royal is wrong – Nutella is not destroying the planet and a ban wouldn’t solve the world’s environmental problems.
A couple of day ago Royal went on French television network Canal+ and said that people should stop eating the popular hazelnut spread because harvesting one of its key ingredients, palm oil, leads to deforestation. But environmental activist group Greenpeace has now told news website Quartz that “a blanket boycott of this agricultural crop will not solve problems in its production.”
It also told the site that Ferrero, Nutella’s maker, is actually a supporter of the Palm Oil Innovation Group, which includes Greenpeace, other non-governmental organisations, and some palm oil producers. ..... http://www.businessinsider.my/greenpeace-no-nutella-boycott-segolene-royal-palm-oil-2015-6/#dr60qq8lz6WSXR8S.99

'Stop eating Nutella' urges French ecology minister Agence France-Presse, Paris | World | Tue, June 16 2015, 11:34 PM; France's ecology minister, Segolene Royal, has rankled the company that makes Nutella by urging the public to stop eating its irresistible chocolate hazelnut spread, saying it contributes to deforestation."We have to replant a lot of trees because there is massive deforestation that also leads to global warming. We should stop eating Nutella, for example, because it's made with palm oil," Royal said in an interview late Monday on the French television network Canal+."Oil palms have replaced trees, and therefore caused considerable damage to the environment," she explained.Nutella, she said, should be made from "other ingredients".The comments needled Ferrero, the giant Italian chocolate group that makes Nutella.Without referring to Royal directly, the company issued a statement Tuesday saying it was aware of the environmental stakes and had made commitments to source palm oil in a responsible manner.Ferrero gets nearly 80 percent of its palm oil from Malaysia. The rest of its supply comes from Papua New Guinea, Indonesia and Brazil. - See more at: http://www.thejakartapost.com/news/2015/06/16/stop-eating-nutella-urges-french-ecology-minister.html#sthash.woeyOPti.dpuf

7 June 2015: PepsiCo, Wal-Mart, others ask RSPO to strengthen standards; Europe set for 100% CSPO by 2020, segregated palm oil excludes small producers? Mondelez plan.

PepsiCo, Wal-Mart, others seek stronger palm oil standards  6/1/2015 -  by Jeff Gelski The R.S.P.O. was formed in 2004 to promote the growth and use of sustainable oil palm products through global standards and stakeholder engagement.
BOSTON — Multinational food companies and institutional investors representing more than $5 trillion in assets signed a June 1 letter seeking stronger environmental and social regulations to qualify for certification from the Roundtable on Sustainable Palm Oil.
ConAgra Foods, Inc.; Dunkin’ Brands; General Mills, Inc.; The Kellogg Co.; Mars, Inc.; PepsiCo, Inc.; and Starbucks were some of the food companies signing the letter sent to  Datuk Darrel Webber, secretary general of the Roundtable on Sustainable Palm Oil and based in Kuala Lumpur, Malaysia. Retail chains signing the letter included Albertsons-Safeway and Wal-Mart Stores, Inc. Other consumer packaged goods companies signing the letter included Colgate-Palmolive, Procter & Gamble and Johnson & Johnson Family of Consumer Cos
http://www.foodbusinessnews.net/articles/news_home/Business_News/2015/06/PepsiCo_Wal-Mart_others_seek_s.aspx?ID=%7BDB137BFC-2038-469B-BE22-EFC05F644913%7D&cck=1

European Palm Oil Industry Sets Course for 100% Certified Sustainable Palm Oil by 2020  Published: June 4, 2015 6:52 a.m. ETAMSTERDAM, Jun 04, 2015 (PR Newswire Europe via COMTEX) -- AMSTERDAM, June 4, 2015 /PRNewswire/ -- Third European RSPO roundtable: regional objectives, tougher enforcement rules and innovative sustainability standards A new drive to address palm oil's global sustainability challenges emerged at RSPO's third European Roundtable held yesterday in Amsterdam, gathering an audience of around two hundred and eighty industries, NGOs and stakeholders from palm oil producing and importing countries. While all parties agreed that RSPO certified sustainable palm oil (CSPO) is part of the answer and acknowledged the work done by RSPO so far, they did not see any room for complacency and stressed the importance of change. http://www.marketwatch.com/story/european-palm-oil-industry-sets-course-for-100-certified-sustainable-palm-oil-by-2020-2015-06-04-62035242

Could Europe’s drive to segregated palm oil exclude small producers? By Caroline Scott-Thomas+SCOTT-THOMAS, 02-Jun-2015 A European push toward segregated certified sustainable palm oil may inadvertently exclude smaller producers from the supply chain, says GreenPalm manager Bob Norman. http://www.foodnavigator.com/Policy/Could-Europe-s-drive-to-segregated-palm-oil-exclude-small-producers

Mondelez’s sustainable palm oil plan: “We want the whole supply chain to transform” By Caroline Scott-Thomas+, 01-Jun-2015 Mondelez International is on track to meet its goal of sourcing 100% traceable palm oil by the end of the year after reaching 70% traceability in 2014, says global director of sustainability Jonathan Horrell.
http://www.foodnavigator.com/Market-Trends/Mondelez-s-sustainable-palm-oil-plan-We-want-the-whole-supply-chain-to-transform

24 May 2015: Yum! Promised to Improve its Palm Oil Sourcing Policy Starting 2017, Colgate-Palmolive Releases 2014 Sustainability Report

Yum! Promised to Improve its Palm Oil Sourcing Policy Starting 2017 Byjason-seligman on May 19, 2015 The new policy sets December 2017 for putting up the latest safeguards when looking for palm oil sources. Yum!  said it will only source palm oil  from suppliers which set improvement in their carbon emission level and protect rainforests and peat terrains.  The giant fast food restaurant will implement the new roles in all its operations down to the restaurant levels. Greenpeace immediately praised the declaration, which led a crusade campaign in 2012 against the company’s paper pulp operation. Rolf Skar, Forest Campaign Director at Greenpeace USA said that Greenpeace wants Yum! to ” define more clearly terms like ‘high carbon stock forest’ and ‘best management practices’ for peat lands in order to make sure change really happens on the ground.” However, an advocacy organization called the Union of Concerned Scientists (UCS), on Wednesday gave a score card for the company, zero out of 100 rank on its palm oil policy, wanted Yum! to pledge much more that what is promising to do. http://www.investornewswire.com/yum-promised-to-improve-its-palm-oil-sourcing-starting-2017/7914/

Colgate-Palmolive Releases 2014 Sustainability Report That Details Progress on the Company’s Sustainability Strategy Submitted by: Colgate-Palmolive Company   Posted:  May 18, 2015 – 07:00 AM EST  NEW YORK, May 18 /CSRwire/ - Colgate-Palmolive has released its 2014 Sustainability Report titled, Giving the World Reasons to Smile. This annual report details Colgate’s long-standing commitments and achievements regarding sustainability and social responsibility around the world.  This year’s highlights include: • Colgate improved the sustainability profile in 72 percent of new products and the balance of its portfolio in 2014 (based on representative products evaluated against comparable Colgate products). • Colgate reduced greenhouse gas intensity by 19.7 percent and energy use intensity by 19.1 percent since 2005 and was named a U.S. EPA ENERGY STAR Partner of the Year for the fifth year in a row, with recognition for Sustained Excellence. http://www.csrwire.com/press_releases/37959-Colgate-Palmolive-Releases-2014-Sustainability-Report-That-Details-Progress-on-the-Company-s-Sustainability-Strategy


16 May 2015: Forgot to post this before, a rather dramatic and unusual even ton an app to show products containing palm oil

'You will need to watch your back': The cowardly note threatening Aussie woman's family for developing app that shows which products contain jungle-wrecking palm oil By Freya Noble for Daily Mail Australia  Published: 13:30 GMT, 24 March 2015  | Updated: 15:18 GMT, 24 March 2015. A letter was sent to Lorinda Jane threatening her and her daughter. It claimed they knew where she lived and to 'watch her back.' She is President and Founder of not-for-profit Palm Oil Investigations (POI). POI are launching an app on Wednesday evening at 7pm. It tells consumers whether a product contains palm oil; http://www.dailymail.co.uk/news/article-3009199/We-know-live-Threatening-anonymous-letter-sent-head-not-profit-just-DAY-release-organisation-s-app-tells-consumers-product-contains-palm-oil.html#ixzz3aHh1GjC9

1 May 2015: The Corporate Capture of Sustainable Development by Leslie Sklair; /khorreports-palmoil/2015/05/the-corporate-capture-of-sustainable.html

22 April 2015: McDonald's supply chain commitment - refers to NY Declaration and HCS Approach

McDonald's to axe deforestation from its global supply chain - The fast-food giant announced it will work with its suppliers to end deforestation in its global supply chain. But do the super-sized claims stack up? by Siri Srinivas Tuesday 21 April 2015 22.06 BST; Global fast-food giant McDonald’s on Tuesday pledged to end deforestation across its entire supply chain..... The announcement follows recent similar pledges by Dunkin’ Donuts, Krispy Kreme, Yum Brands and many others. But the World Wildlife Fund, which advised McDonald’s on its new commitment, said it could have big influence on other fast-food chains...... “McDonald’s brings size and scale to the debate of sustainable sourcing. Their reach is large, they are global, they work closely with the suppliers and so this outreach can only help,” said David McLaughlin, vice president of agriculture at the World Wildlife Fund. .........In an eight-point commitment, McDonald’s promises not to contribute to deforestation in areas most critical to reducing carbon in the atmosphere, known as high carbon value and high carbon stock forests. These are areas of high environmental value, including high biodiversity, as well as high value to their communities, that are often in danger of being cleared to make way for plantations. The world’s largest fast-food chain also said it would not source commodities from peatlands, or swampy areas that store a lot of carbon and can end up contributing to greenhouse gas emissions when disturbed. This commitment will affect 3,100 of its global direct suppliers as well as its more complex network of indirect suppliers, said Michele Banik-Rake, director of sustainability for McDonald’s worldwide supply chain management.......Also on Tuesday, the company released a sustainable sourcing statement outlining how it will work with suppliers to ensure that the beef, poultry, coffee, palm oil and fiber-based packaging it uses do not contribute to deforestation.
In the commitment, the company also said it would respect human rights and verify where the raw materials used to make its products come from. The company said that it will suspend or eliminate purchases from suppliers who do not meet its requirements. McDonald’s will also evaluate its progress in annual reports......In a palm oil scorecard released by the Union of Concerned Scientists earlier this month, McDonald’s fared poorly on its palm oil deforestation record, but the company, like other major brands, recognized global gaps in sustainable sourcing, said Lael Goodman, the author of the report......While McDonald’s said that its policy is effective immediately, their actual targets for zero-deforestation may be five to 15 years away. This is in line with the New York declaration on forests that it signed at the United Nation’s climate summit in September, along with other global corporations, to end deforestation due to agricultural commodities by 2020 and the loss of natural forests by 2030. Critics of the New York declaration called the 2030 target for ending deforestation and 2020 target for agricultural commodities unambitious, but others said it was worth applauding as a step in the right direction. ....The supply chain hub is sponsored by the Fairtrade Foundation. All content is editorially independent except for pieces labelled “brought to you by”. Find out more here.... http://www.theguardian.com/sustainable-business/2015/apr/21/mcdonalds-deforestation-global-supply-chain

Macdonald's Commitment on Deforestation: http://www.aboutmcdonalds.com/mcd/sustainability/sourcing/commitment-on-deforestation.html
Note: It talks of NY Declaration as well as the HCS Approach (Greenpeace-TFT-Forest Heroes and also used by Wilmar, GAR etc.)

4 April 2015: KFC, Taco Bell, Pizza Hut adopt zero deforestation policy - with HCS and better labour policies - to apply to global restaurants, with Dec 2017 target.

KFC, Taco Bell, Pizza Hut adopt zero deforestation policy for palm oil by Rhett A. Butler, mongabay.com  April 03, 2015; Yum! Brands, the company that owns KFC, Taco Bell and Pizza Hut, on Thursday announced a zero deforestation policy for its palm oil sourcing. The move came after aggressive campaigns by environmental groups that argued the chains weren't doing enough to ensure the palm oil they used to fry foods wasn't linked to human rights abuses, destruction of peatlands, and logging of rainforests. The policy sets a December 2017 target for establishing safeguards for palm oil sourcing. Yum! says it will only source from suppliers who bar plantation development in high carbon stock and high conservation value areas, like rainforests and peatlands; have disputes resolution processes in place; offer traceability to the mill level; and avoid underage workers and forced labor. The standards apply Yum!'s global fast food business, meaning it applies to all of its restaurants.Yum! has a similar set of guidelines for its paper and fiber sourcing..... The announcement was quickly welcomed by Greenpeace, which campaigned against the company's pulp and paper sourcing practices in 2012. “Yum! Brands’ new palm oil policy is a good sign it’s listening to customers around the world who want rainforest destruction taken off the menu.” said Rolf Skar, Forest Campaign Director at Greenpeace USA.  Skar added that Greenpeace still wants Yum! to "more clearly define terms like 'high carbon stock forest' and 'best management practices' for peatlands in order to make sure change really happens on the ground."... However the Union of Concerned Scientists (UCS), an advocacy group that on Wednesday released a scorecard giving Yum! a zero out of 100 rank on its palm oil policy, wanted more from the company..... http://news.mongabay.com/2015/0403-yum-brands-zero-deforestation.html#ixzz3WKZVJkHT

Zero Deforestation arrangement for Palm oil to be implemented by KFC, Taco Bell, and Pizza Hut  April 5, 2015; Yum! Brands, the organization that claims KFC, Taco Bell and Pizza Hut, on Thursday reported a zero deforestation arrangement for its palm oil sourcing. The move came after forceful battles by ecological gatherings that argued that the restaurants weren’t doing what’s needed to guarantee the palm oil they used to cook food wasn’t connected to human rights misuses, obliteration of peat lands, and logging of rainforests.... The strategy sets December 2017 as focus for creating shields for palm oil sourcing. Yum! says it will just come from suppliers who block farmstead advancement in high carbon stock and high preservation esteem ranges, in the same way as rainforests and peat lands; have debate determination forms set up; offer traceability to the plant level; and evade underage laborers and constrained work.... The benchmarks apply Yum’s! worldwide fast food business, the importance it applies to every last bit of its restaurants.
Yum! has a comparable arrangement of rules for its paper and fiber sourcing.... The declaration was immediately accepted by Greenpeace, which battled against the organization’s mash and paper sourcing practices in 2012.... http://www.esbtrib.com/2015/04/05/9032/zero-deforestation-arrangement-for-palm-oil-to-be-implemented-by-kfc-taco-bell-and-pizza-hut/

Some palm oil specialists point to the higher yield of palm oil and the larger area competitor oils use, a typical argument and rebuttal:

Attan Akmar: A pound of palm oil is produced on a tenth of the farm area required to produce the same quantity of soy oil. It's soy oil that should be discouraged especially after millions of acres
Denise Jurcyk ·  Top Commenter · Chicago, Illinois: Well said but.... that was a long time ago and it was not forest but prairie. Which is , if slowly being replanted. Rain forest has so much diversity and large mammals that are threatened with extinction , we must save . We learned our lessons and it's time to save the rainforests and it's inhabitants and the planet. Maybe you should develop agricultural methods that can greatly increase the production on land already cleared. And Stop clear cutting the rainforest !Maybe science can replace the use of palm oil !
http://news.mongabay.com/2015/0403-yum-brands-zero-deforestation.html#ixzz3WKZVJkHT

3 April 2015: ADM Commits to No-Deforestation Policy for Soybeans, Palm Oil 

ADM Commits to No-Deforestation Policy for Soybeans, Palm Oil  'By'Shruti Date Singh  12:00 AM HKT  April 1, 2015; (Bloomberg) -- Archer-Daniels-Midland Co., a global supplier of agricultural commodities, has pledged to curb deforestation that results from the farming of soybeans and palm trees.  ADM is committing to developing ways to trace crops it processes, make those supply chains transparent and protect forests globally, according to Victoria Podesta, a spokeswoman for the Chicago-based company. The policy “combines a clear commitment to no deforestation with progressive action focused on our most critical supply chains,” Podesta said Monday in an e-mailed statement.  The policy for soy production is the first for that crop, said Lucia von Reusner, an activist for Boston-based Green Century Capital Management Inc., a mutual fund manager that focuses on sustainability. Suppliers representing about 96 percent of globally traded palm oil already have adopted such measures, Green Century said in a statement Tuesday.  http://www.bloomberg.com/news/articles/2015-03-31/adm-commits-to-no-deforestation-policy-for-soybeans-palm-oil

4 February 2015: LG Household & Health Care goes RSPO Segregated / SG at Ulsan and Onsan plants

LG Household & Health Care Acquires RSPO Certification by Jeana Shin 2 February 2015
LG Household & Health Care's two factories, in Ulsan and Onsan, South Korea, have received certifications from the Roundtable on Sustainable Palm Oil (RSPO), an international certification body. This significant step elevates LG Household & Health Care to equal global companies like Unilever and Basf.... LG Household & Health Care started to build a system for producing surfactants, which use eco-friendly palm oil, from 2013 in its Ulsan and Onsan factories as the demands for RSPO-certified products increased recently in Australia, New Zealand and Europe.
It completed a system to use and manufacture the raw materials of palm oil that complies with RSPO Segregation requirements in every aspect of the process, from from raw material storage, production, product storage to shipment.... LG Household & Health Care plans to reinforce its overseas raw material business by exporting surfactant from its RSPO-certified palm oil.... http://www.businesskorea.co.kr/article/8839/rspo-certified-lg-household-health-care-acquires-rspo-certification#sthash.FFRnDOWf.dpuf

18 January 2015: PepsiCo Doritos targeted

PepsiCo Fires Back at Doritos Spoof Ad Viewed 1.5 Million Times By Duane D. Stanford  Jan 16, 2015 3:01 AM GMT+0800; PepsiCo Inc. (PEP) dismissed as a “stunt” a social-media video posted by environmental activists challenging the snack maker’s reliance on palm oil in Doritos.
The clip, which was released by SumofUs.org as a spoof of a Doritos commercial, alleges that PepsiCo’s palm-oil use destroys rain forests and kills animals. After the ad gained a following online, PepsiCo shot back yesterday, saying its policy on the ingredient is sound and the video distorts the truth. http://www.bloomberg.com/news/2015-01-15/pepsico-fires-back-at-doritos-spoof-ad-viewed-1-5-million-times.html

22 December 2014: Big buyers and producers ratchet up pledges, RAN pushes traceability

Unilever, Cargill push to green their palm oil chain; Facing growing concerns about deforestation in Asia, companies are pledging to use green palm oil; But as more sustainable oil reached the market and the technology for tracing commodities improved, Unilever, Cargill and Nestlé among strengthened their pledges in the past two years to use only green palm oil... They were joined this year by more than 20 consumer goods companies—including Kellogg, Mars, Procter & Gamble  PG   and Johnson & Johnson  —which adopted zero deforestation policies. And in September at the U.N. climate summit, more than 30 companies including McDonald’s  MCD  and Wal-Mart Stores   committed to eliminate deforestation from their supply chain by no later than 2020.... It was part of a larger pledge at the summit by governments to half deforestation by 2020 and strive to end it by 2030. If fulfilled, the measure would eliminate between 4.5 million and 8.8 billion tons of carbon dioxide each year by 2030—the equivalent to removing carbon emissions produced by one billion cars.... Along with the Indonesian Palm Oil Pledge, five producers this summer joined Cargill in signing the Sustainable Palm Oil Manifesto. The companies have signed onto a no-deforestation pledge and the establishment of a system to create a “traceable and transparent supply chain.” The companies, most of them based in Malaysia, also agreed to a moratorium on converting the most environmentally important high carbon stock forests until a study can be done to determine where those stocks are located......... Two investigations—one released in September by a coalition of environmental groups called Eyes on the Forest and another by Rainforest Action Network—illustrate the challenge ahead. The Eyes on the Forest investigation found scores of palm oil producers in Indonesia who have signed sustainability commitments caught sourcing oil palm from illegal plantations. Illegal produced palm oil from forests favored by endangered Sumatran tigers ended up in facilities of four producers as well as at ports these producers use to ship their products.... The RAN investigation implicated 40 palm oil growers operating in an Indonesia conservation area that his home to endangered orangutans as well as Sumatran tigers, rhinos and elephants. One major crude palm oil mill was caught sourcing from these growers and three large traders also sourced from them... “At the moment, there is no traceability at the plantation level in the global palm oil supply chain,” said Gemma Tillack, RAN’s agribusiness campaign director. http://fortune.com/2014/12/17/palm-oil-deforestation-unilever-cargill/

29 November 2014: Unilever and Cargill updates

Unilever to Use Only Sustainable Palm Oil in European Foods by End of Year
Company Pledges to Use Only Traceable, Sustainable Palm Oil World-Wide by 2020
http://online.wsj.com/articles/unilever-to-use-only-sustainable-palm-oil-in-european-foods-by-end-of-year-1416402241

Cargill Publishes First Palm Oil Progress; Cargill today released its first progress report on sustainable palm oil. The report lays out the company’s action plan to achieve a fully sustainable supply chain. "Sustainability has long been part of our palm ... http://wc4.net/t?r=1453&c=3870773&l=36989&ctl=4C3B20C:FCB2C9F06EB032236D766D156048A097F0CE68744B36A4D6&

3 November 2014: National buyer platforms

Norwegian Food Industry Commits to Sourcing Only Certified Sustainable Palm Oil by 2015, RSPO News, 03 October 2014; "The Norwegian Alliance for Sustainable Palm Oil has agreed criteria to promote sustainable palm oil in Norway and contribute to the prevention of deforestation. The Alliance, which consists of most major food & drink producers and retailers in Norway, has committed to using only sustainably produced and certified palm oil that meets the RSPO Principles & Criteria, by the end of 2015. As of today, the signatories include: Coop Norge AS, Findus Norge AS, Hennig-Olsen Is AS, Ica Norge AS, Mills DA, Mondelēz Norge AS, Nestlé Norge AS, Nordic Choice Hotels AS, NorgesGruppen ASA, Orkla ASA, Umoe Restaurants AS, Unilever Norge AS...They also commit that by 2018 they will either phase out palm oil or switch to segregated or traceable CSPO, and publish their progress reports annually. Norway is the eighth European country to officially launch a National Initiative, a commitment by the main industrial actors to source only certified sustainable palm oil. Similar national platforms already exist in the UK, France, Germany, Belgium, Netherlands, Sweden and Denmark...."
http://www.rspo.org/news-and-events/news/norwegian-food-industry-commits-to-sourcing-only-certified-sustainable-palm-oil-by-2015

2 November 2014: Bunge goes with traceability and signals Sarawak / high risk zone shift?

Bunge updates its palm oil sourcing policy in October 2014 for traceability. This can be differentiated from RSPO certification which was the key program As buyers face issues in implementing their near term pledges (often set for next year, 2015) for sustainable palm oil, there are shifts to extend deadlines and perhaps the more common new trend is to shift from sustainability (certification) to traceability.

The latter is now frequently associated with the TFT (Greenpeace associated) programs for customized (by supplier) trade terms for B2B dealings. In contrast, RSPO certification (part of WWF's roundtables / "market transformation" program) uses a multi-stakeholder model and its heavy NGO influence is commonly thought to have contributed to policy escalations that trouble supply-chain players with rising cost of compliance amidst a seeming glut of certificates, and perhaps more crucially the problem of it achieving inclusivity of small producers and smallholders. Hence, the competition for new programs for the palm oil sector, by other NGOs.

On NGO reactions to Bunge's move, the UCS campaign gives it a good nod (it is "impressed" and says this "will have huge implications for peatlands"), as does Forest Heroes ("it gives a clear signal to rogue actors in the palm oil industry"). Forest Heroes' Glenn Hurowitz is widely reported to have had a key role in negotiation Bunge's new policy (he says that Bunge's move is akin to a new "green revolution" to delink agriculture from deforestation). 

However the timeline for implementation has not been set. "We are currently in the process of developing an implementation plan in collaboration with suppliers and expect to release it in the coming months," a Bunge spokesperson told mongabay.com. UCS concern is likewise on the deadline and says "while it rightly prioritizes tracing palm oil from high risk areas, it does not require that all palm oil be eventually traced back to the original plantation."

UCS notes that "Bunge’s commitment is particularly important because they source much of their palm oil from Sarawak, Malaysia, a peat-rich area" and it is reports that Bunge is among the biggest buyers from Sarawak.

We're not sure yet if this represents a sign-on with The Forest Trust, a key provider of traceability programs for Wilmar, GAR and Cargill. A check today on its blog (http://between2worlds.com/) and its website (http://www.tft-forests.org/search/?cx=014285459649207030104%3Api_nr-53-oq&cof=FORID%3A10%3BNB%3A1&ie=UTF-8&sa=&q=bunge) yields no recent news on Bunge.

The key Bunge document is here: http://www.bunge.com/citizenship/bunge-palm-oil-sourcing-policy.pdf. Excerpt:

Commitments
.....Bunge immediately commits to begin building a traceable supply chain, following the principles
below, for 100 percent of the palm oil and palm derivatives it trades, processes and utilizes in
commercial and consumer products worldwide:

Forest & Biodiversity Preservation: Protection of High Conservation Value (HCV) areas as defined by Roundtable on Sustainable Palm Oil (RSPO) P&C 5.2 and 7.3 and High Carbon Stock (HCS) forests as defined by the HCS Steering Group

Reduction of GHG Emissions
  •      Protection of peat areas, regardless of depth1
  •  Application of RSPO best management practices for peat on existing plantations
  •  No burning
Labor Protections, Human Rights and Free, Prior & Informed Consent (FPIC)2
  •  Prohibition of forced and child labor, discrimination and harassment of workers
  •  Protection of freedom of association and the right to collective bargaining
  •  Respect of local and indigenous community rights and application of FPIC for land purchases and use
  •  Support of the Food and Agriculture Organization Voluntary Guidelines on the Responsible Governance of Tenure
Legal Compliance
  •  Compliance with all relevant national and local laws
Traceability
Bunge will strive for traceability to the mill level for all suppliers and, in areas of high environmental or social sensitivity, to the fresh fruit bunch level.
News links:


25 September 2014: Look out for pace of signings RSPO versus/and TFT.

And on this, notable that a new report by Forest Heroes places all TFT mega processor trader partner pledges at top of "greenest" suppliers list (TFT-Climate Advisers work with Wilmar, commonly reported as controlling half the global palm oil trade), alongside the solid niche producer already supplying full segregated and other certified oil: http://www.forestheroes.org/greentigers. The website says: Our Green Tigers report ranks palm oil companies on their adherence to forest conservation requirements -- showing which companies are slated to prosper in the new era of forest protection, and which are lagging far behind. We ranked 18 of the world's largest palm oil companies, judging them on forest protection, high carbon stock protection, peat protection, and their human rights records. The website focuses on an advocacy and a professional "grassroots advocacy and communications firm Catapult helps guide the campaign and deliver our message where it can have the biggest impact." Contacts include Glenn Hurowitz, Forest Heroes Campaign Chair / Managing Director of Climate Advisers (advisor to Wilmar alongside TFT in its 5 December 2013 commitment). Link to report: https://d3n8a8pro7vhmx.cloudfront.net/forestheroes/pages/131/attachments/original/1411386115/Green_Tigers-Forest_Heroes.pdf?1411386115. Forest Heroes has useful list of "media hits" which covers a lot of US palm oil campaigning news: http://www.forestheroes.org/news.

Report rates palm oil companies on sustainability commitments by mongabay.com; October 05, 2014; "A new report published Forest Heroes, an advocacy campaign pushing for an end to deforestation, ranks global palm oil companies on their sustainability commitments.
The Green Tigers, authored by Glen Hurowitz, reviews the recent history of environmental policies in the palm oil sector.... The report notes that most of the companies that are signees to the Sustainable Palm Oil Manifesto (SPOM), a commitment established this year, are on the yellow or red lists, while Palm Oil Innovation Group (POIG) companies are on the green list. Environmentalists have criticized SPOM as having weaker criteria than POIG, although several SPOM members just committed to a one-year moratorium on clearing of potential high carbon stock areas while they work out a definition of what constitutes forest...." http://news.mongabay.com/2014/1005-palm-oil-sustainability-rankings.html#YbvjysWgkr8SCwBM.99

Major alliances

Cargill Joins Palm-Oil Makers to Pledge Forest Protection  By Mark Drajem  Sep 23, 2014 11:30 PM GMT+0800; "Cargill Inc. joined the world’s largest makers of palm oil in a pledge to prevent deforestation and vowed to work with Indonesia, the biggest global producer, to implement policies that will protect forests. Cargill announced its action today at the United Nations summit on climate change with more than 20 producers that account for about half of all palm-oil consumption. Consumers have been pressing the makers of products such as candy and cookies using palm oil to stop clearing forests to plant new palms.... Unilever has pledged forestry protection as part of its sourcing of palm oil, the world’s most-consumed vegetable oil, used by Kellogg Co. (K) to make Pop-Tarts, Mondelez International Inc. (MDLZ) to produce Oreo cookies and Mars Inc. (MMC) to make Twix candy bars.... As part of today’s forestry pledges, Norway, the U.K., Germany and others pledged $1 billion to persuade developing countries such as Liberia and Peru to preserve their forests.
http://www.bloomberg.com/news/2014-09-23/cargill-joins-palm-oil-makers-to-pledge-forest-protection.html

Cargill and TFT join hands to advance sustainable palm oil,  September 2014: http://www.marketwatch.com/story/cargill-and-tft-join-hands-to-advance-sustainable-palm-oil-2014-09-15


Buyer policies

TFT sign up. Hershey Co. strengthens palm oil policy By TIM STUHLDREHER | Business Writer, Wednesday, September 24, 2014 12:15 pm; "The Hershey Co. said Wednesday it is taking measures to ensure that the palm oil it uses is not linked to deforestation or labor and human rights abuses.
....Back in 2011, Hershey joined the Roundtable on Sustainable Palm Oil and pledged to source all its palm oil from RSPO-certified suppliers by 2015. In December, Hershey said it had met that goal, more than a year ahead of schedule. Earlier this month, Hershey announced an expansion of Learn to Grow, a component of its cocoa sustainability initiative...." http://lancasteronline.com/business/local_business/hershey-co-strengthens-palm-oil-policy/article_63903c66-4403-11e4-ad77-001a4bcf6878.html; and Hershey policy here: http://www.thehersheycompany.com/social-responsibility/shared-goodness/pdfs/Palm_Oil_Sourcing_Policy.pdf


Hershey 'goes beyond RSPO' by Oliver Nieburg, Food Navigator US, 25 Sep 2014; "... we will go beyond RSPO-certified palm oil and achieve a truly responsible and sustainable palm oil supply chain...  the policy drawn up with (TFT)....Greenpeace previously accused Hershey... (responded positively but said) ".. it lacks the requirement of third party verification, and the necessary deadline for full compliance..." ... The Union of Concerned Scientists... added "Hershey can still improve its policy by committing to tracing all its palm oil to the plantation where it was grown"....

Krispy goes with RSPO and Dunkin with TFT. Time to make the donuts less evil - Dunkin’ Donuts cleans up its palm-oil act (and Krispy Kreme follows suit) By Nathanael Johnson 16 Sep 2014 3:16 PM; http://grist.org/food/dunkin-donuts-cleans-up-its-palm-oil-act/ (details at bottom of posting for Krispy Kreme and Dunkin is here: http://www.dunkindonuts.com/DDBlog/2014/09/dunkin_commits_to1.html#sthash.Fztw0n4h.dpbs). 

But criticism here: New Dunkin’ Brands Palm Oil Commitment Doesn’t Go Far Enough, Science Group Says Statement by the Union of Concerned Scientists' Tropical Forest and Climate Initiative. WASHINGTON, D.C. (Sep. 16, 2014) -- Dunkin’ Brands, the parent company of Dunkin’ Donuts and Baskin-Robbins, announced new commitments for sourcing deforestation-free palm oil, but is only applying them to U.S. operations, which would cover only half its stores, according to the Union of Concerned Scientists (UCS). http://www.ucsusa.org/news/press_release/new-dunkin-brand-palm-oil-0436.html

ConAgra adopts greener palm oil policy 08/14/2014) U.S. food giant ConAgra has adopted a new sourcing policy that will exclude palm oil produced at the expense of rainforests and peatlands.
Read more at http://news.mongabay.com/news-index/palm%20oil1.html#yuVARCfIBF9WMjXL.99

Eliminating palm oil from Golden North ice cream not enough to secure Adelaide Zoo deal; Thu 7 Aug 2014, 8:46am; "South Australian ice cream maker Golden North is upset Zoos SA has ditched it in favour of a deal with a multinational, despite the local company avoiding use of palm oil in its foods. Golden North marketing manager Trevor Pomery says the SA company ... Zoos SA chief executive Elaine Bensted conceded Streets ice creams contained palm oil but said other factors led to the deal. "It does have a financial benefit to the zoo and I won't shy away from that, and it is a significant component," she said. "We're a not-for-profit charity, we have a responsibility to our members and that membership responsibility does include financial sustainability. By 2020 all of the palm oil that they buy globally will come from certified sources...."
http://www.abc.net.au/news/2014-08-07/eliminating-palm-oil-golden-north-ice-cream-zoos-sa-streets-deal/5654134

Will other Asian consumer giants follow as Kao goes forest-friendly? Greenpeace challenges Asian consumer companies such as India’s Godrej and ITC and China’s Liby and Nice to make similar commitments as the Japanese beauty products maker commits to forest-friendly policy; http://www.eco-business.com/news/will-other-asian-consumer-giants-follow-kao-goes-forest-friendly/

Johnson & Johnson commits to zero deforestation for palm oil, 1 May 2014; http://news.mongabay.com/2014/0501-johnson-and-johnson-zero-deforestation.html#2KwPWAXErh3wrZ4X.99; J&J will work with The Forest Trust (TFT), an NGO that helps companies implement zero deforestation and zero conflict commitments for various commodities. TFT has recently signed similar commitments with Nestle, Indonesian palm oil giant Golden-Agri Resources, Neste Oil, Ferrero, Reckitt Benckiser, Asia Pulp & Paper, Wilmar, New Britain Palm Oil, Cerelia, Vandemoortele, Mars; Florin, and Delhaize Group, among others.

MPONGOC calls on Malaysian banks, GLCs to commit to sustainable palm oil; The Borneo Post  - 14 April 2014; KOTA KINABALU: Malaysian banks and government-mandated institutions that invest in growth sectors must commit to play a role in improving social and environmental standards in the palm oil industry. The Malaysian Palm Oil NGO Coalition (MPONGOC) ...
http://www.theborneopost.com/2014/04/14/mpongoc-calls-on-malaysian-banks-glcs-to-commit-to-sustainable-palm-oil/; specialists say that in the past Malaysia NGO campaigning on palm oil issues has seen BORA Executive Director Datuk Dr John Payne play a key role. MPONGOC has been seen on-and-off in headlines the last few months and it's well reported in news who are the key leaders.

Wal-Mart Attempts the Holy Grail: Low-Cost Organic Food; April 10, 2014; http://www.businessweek.com/articles/2014-04-10/wal-mart-attempts-the-holy-grail-low-cost-organic-food?campaign_id=DN041014; In one fell swoop, the super-retailer gets credit for being green, dives into a rapidly growing category, and creates a fantastic ideological conundrum for the anti-Walmart faction. Impressive.... Whatever global consciousness may be at work here, it’s true that organic groceries have some of the healthiest financials in the business. Safeway (SWY) recently said sales of its Open Nature brand surged 42 percent in 2013. Costco (COST) has been crowing about its trade in select organic products, such as milk and kale. “It’s a big business; it’s growing fast,” Richard Galanti, Costco’s chief financial officer, said on a recent conference call.
Of course both Wal-Mart and Target can use their scale to squeeze great deals out of farmers and suppliers—probably better deals than smaller grocery players, such as Fairway (FWM) and Sprouts Farmers Market (SFM), or even Safeway, can get......

Cargill commits to zero deforestation, but environmentalists have questions; http://news.mongabay.com/2014/0409-cargill-zero-deforestation-commitment.html;
(04/09/2014) After years of criticism from environmental groups, Cargill says it will establish policies to eliminate deforestation, peatlands conversion, and social conflict from its palm oil supply chain. But activists aren't yet sure what to make of the agribusiness giant's pledge. On Tuesday Cargill released a letter it sent to the Roundtable on Sustainable Palm Oil (RSPO), a body that sets eco-certification standards, in response to a Greenpeace Report linking it to deforestation.
Procter & Gamble think they can ignore deforestation - here's how we turn up the pressure; Greenpeace UK (blog); The companies you buy palm oil from are cutting down huge areas of rainforest - Greenpeace has photographic evidence from palm oil companies; http://www.greenpeace.org.uk/blog/forests/procter-gamble-think-they-can-ignore-deforestation-heres-how-we-turn-pressure-20140318

Procter & Gamble bows to pressure on palm oil deforestation; The Guardian,  9 April 2014; http://www.theguardian.com/environment/2014/apr/09/procter-gamble-bows-to-pressure-on-palm-oil-deforestation; Procter & Gamble has bowed to pressure from environmentalists and revealed a new, extensive no-deforestation policy in the production of its products, including demanding fully traceable palm oil from suppliers. In the wake of severe criticism by a ...
and http://www.huffingtonpost.com/2014/04/08/palm-oil-procter-gamble_n_5112715.html?utm_hp_ref=green

Indian food giant to source deforestation-free palm oil; Mongabay.com; http://news.mongabay.com/2014/0319-orkla-zero-deforestation.html; Orkla, a Nordic conglomerate that owns MTR Foods, one of India's major food companies, has established a zero deforestation policy for the palm oil it sources, reports Greenpeace... Orkla's policy commits it to full traceability and bars palm oil produced via forest and peatlands conversion by 2017. There are also provisions for workers rights and local communities.
Read: http://www.orkla.com/content/download/81608/16345118/file/Orkla%20Policy%20for%20sustainable%20palm%20oil.pdf

General Mills ramps up palm oil pledge to consider deforestation; BakeryAndSnacks.com 25 March 2014; http://www.bakeryandsnacks.com/Manufacturers/General-Mills-ramps-up-palm-oil-pledge-to-consider-deforestation; The cereal and snack titan said that while it was a, “relatively minor user of palm oil”, it remained committed to sourcing 100% of its palm oil responsibly and sustainably by 2015 - a pledge it first made in 2010. General Mills said it would continue ...

 Colgate-Palmolive Latest Company to Jump on Deforestation-Free Palm Oil ...; Union of Concerned Scientists  - ‎Mar 24, 2014‎; http://www.ucsusa.org/news/commentary/colgate-palmolive-deforestation-free-palm-oil-0405.html; BERKELEY, Calif. (March 24, 2014) - Just days after General Mills committed to sourcing deforestation-free palm oil, Colgate-Palmolive today released its palm oil sourcing policy. According to the Union of Concerned Scientists (UCS), major companies ...


Supply chain certification news

27 August: In Switzerland, Clariant announced Roundtable on Sustainable Palm Oil Mass Balance supply chain certification for its plant in Gendorf, Germany, in order to meet the increasing demand for sustainable certified palm-based ingredients from customers in the personal care and home care sectors. Gendorf is the first of Clariant’s plants to be RSPO certified and progresses its target to continuously increase the offer of certified palm based products and to have all relevant production sites certified by 2016. http://www.biofuelsdigest.com/biobased/2014/08/27/clariant-to-offer-certified-sustainable-palm-based-materials/


Details of a recent RSPO plus commitment

Krispy Kreme September 2014: http://www.krispykreme.com/about/Contact-Us - Do you use sustainable palm oil? "Krispy Kreme’s responsible palm oil sourcing efforts began in January 2014 with a commitment to only source products for its US locations from suppliers who are certified members of the Roundtable on Sustainable Palm Oil (RSPO), and those who can guarantee compliance with all sustainable palm oil production methods as defined in the RSPO guidelines. Additionally, Krispy Kreme has purchased enough GreenPalm certificates to cover 100% of its estimated usage of palm oil in the United States through the end of 2014.... Krispy Kreme is now expanding its commitment to achieve 100% responsible sourcing of palm oil. By the end of 2016, a large percentage, if not all of the brand’s palm oil usage will be sourced through some combination of RSPO certified segregated supply, RSPO mass balance mixed-source supply, and the purchase of GreenPalm certificates.... Krispy Kreme is expanding its commitment to achieve 100% responsible sourcing of palm oil. By the end of 2016, a large percentage, if not all of the brand’s palm oil usage will be sourced through some combination of RSPO certified segregated supply, RSPO mass balance mixed-source supply, and the purchase of GreenPalm certificates. All of the brand’s suppliers will be required to trace their palm oil sourcing to plantations that adhere to the principles for protecting forests (including High Carbon Stock (HCS)[1] and High Conservation Value (HCV) landscapes), peat lands of any depth, and no exploitation of communities and workers (including respecting human and worker rights and obtaining Free, Prior, and Informed Consent from communities for all development on their lands); and to comply with Roundtable on Sustainable Palm Oil (RSPO) principles and criteria. Krispy Kreme will work with its suppliers to meet these commitments as rapidly as possible, with a deadline for full compliance by the end of 2016. Suppliers who are found not in compliance will be required to submit a viable action plan for closing any identified gaps, or risk removal from the brand’s supply chain.... Krispy Kreme will provide a detailed implementation plan and progress reports on its responsible palm oil sourcing efforts through its Corporate Social Responsibility initiatives."

Dairy / dairy-free news (update 7): Fonterra requests its smallholders to limit the use of palm kernel expeller / PKE to 3 kg per animal per day. Wilmar says PKE sales to NZ are under 1% of revenue. Back news - NZ palm kernel imports picked up to 222,413 tonnes in Nov 2015

Some interesting shifts in the dairy/non-dairy sector: "Rinehart’s dairy will seek to use labeling that would allow customers to check the specific animals that produced milk used to create each package of powder." We'll start to accumulate newsy things on infant formula and other dairy/non-dairy products. Of course some palm oil is also used in infant formula and other milk replacements as the folk in specialty fats does formulation work for non-dairy alternatives. Also notable that Iran has been shifting policy to reduce dairy-free replacements with palm oil and others.

20 Feb 2016: Back news - NZ palm kernel imports picked up to 222,413 tonnes in Nov 2015


Editor's note: Indeed, Fonterra reported some 2 million tonnes of PKE under RSPO certification in 2014

NZ - Palm kernel imports jump Dec 30, 2015; Palm kernel imports picked up sharply last month, despite the efforts of Fonterra and Greenpeace to curtail its use.... Imports of the controversial livestock feed supplement, which is used extensively in the dairy industry, came to 222,413 tonnes last month, up from 138,763 tonnes in October and 178,381 tonnes in November last year, according to Statistics NZ data....  Fonterra in September launched a campaign to get farmers to pull back on using palm kernel because too much can alter the composition of milk. Greenpeace has for many years put pressure on Fonterra to stop using palm products, linked to deforestation and peat drainage.... http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11567302

4 Jan 2016: Fonterra requests its smallholders to limit the use of palm kernel expeller / PKE to 3 kg per animal per day. Wilmar says PKE sales to NZ are under 1% of revenue.


Note: Ambank briefing reports as follows, "Wilmar said that its sales of palm kernel expeller to New Zealand accounts for less than 1% of group revenue." Greenpeace's report in December 2015 raises concerns that policies for "no deforestation" by big traders has yet to work (refer to 4 Jan posting: http://khorreports-palmoil.blogspot.my/2015/10/jokowi-and-2015-haze-step-down-on.html) and it is notable too that Greenpeace's Naidoo stepped down in December 2015. Watchers will be looking out for policy shifts at Greenpeace on palm oil supply-chains, including The Forest Trust traceability schemes for the large commodity traders. 

Fight against palm snares unexpected users: New Zealand dairy farmers WELLINGTON  |  By Rebecca Howard Dec 23, 2015; The world's biggest dairy exporter, New Zealand's Fonterra, has found itself caught in the crossfire of an unexpected new controversy: a global environmental campaign against the destruction of rainforests. The South Pacific island nation, which prides itself on its green image, has become a top buyer of palm kernel expeller or PKE, a by-product of the palm oil industry, which is under attack over deforestation, choking fires and habitat destruction in Southeast Asia. ... For New Zealand dairy farmers palm kernel has been a "lifesaver" by boosting production when grass is sparse, said Chris Engel, who runs 400 cows in the Wairarapa region on the southern tip of the North Island. "It has been a fantastic supplement for farmers facing a drought and you can just ring up and get a truck load when you need it," he said.... But environmentalists say the product - what's left of the palm kernel once the oil has been extracted - contributes to the profitability of the palm industry and have called on Fonterra to stop using PKE linked to environmental damage.... Unlike in Europe and North America, New Zealand dairy cows spend their lives outdoors, eating mostly grass. But imports of PKE, a dry, gritty meal with a soapy smell, have risen 10-fold over the past decade as farming has become more intensified and the use of supplementary feed has surged to ramp up production. "A third of all PKE that's traded in the world goes to New Zealand," said Russel Norman, executive director at Greenpeace New Zealand. "New Zealand is spending over NZ$400 million ($270 million) a year on PKE and so it's a significant profit center for the palm industry."... Recently Fonterra called on its 10,500 farmer shareholders to limit the use of palm kernel to 3 kg per animal per day. Farmers say cows can need up to 6kg of the supplementary feed per day when conditions are dry.... http://www.reuters.com/article/us-fonterra-dairy-idUSKBN0U705820151224


Fonterra - Palm Kernel Expeller (PKE) webpage: PKE sold by Fonterra’s subsidiary RD1 is bought from INL, who import it from a single source, Wilmar International. Wilmar practices a “no burn” policy, respects designated conservation areas, employs wildlife protection experts, and is on target to complete RSPO certification audits for all their plantation operations by 2015. Wilmar recently announced that it no longer develops plantations on peat-land....https://www.fonterra.com/nz/en/Recycle+Bin/Sustainability/Environment/Palm+Kernel+Expeller+(PKE)

Earlier news links

  • Fonterra wants farmers to cut back on palm kernels by GERARD HUTCHING September 21 2015; Fonterra is trying to persuade farmers to use fewer palm kernel supplements because it says milk from grass-fed cows fetches a premium on world markets. The dairy giant is recommending farmers feed a maximum of 3 kilograms of palm kernels per cow per day.... The advice has been greeted warily by former Federated Farmers Waikato dairy spokesman Craig Littin."Farmers would like to see evidence for a premium. If that's what markets are demanding, then fine. If not, they should leave farmers to farm and them [processors] to process," Littin said. At $200-$230 a tonne, palm kernel was the cheapest imported feed, he said....  ... Fonterra group director co-operative affairs Miles Hurrell said consumers globally were driving a trend towards dairy products that were sourced from pasture-based milk. "We are in a unique position to make the most of this trend to enhance returns to our farmers who are already renowned for producing the best milk in the world. This recognition is a direct result of our farmers' pasture-based farming model."This gives us a key competitive advantage globally. Our milk products have an excellent reputation and we want to maintain that, and stay ahead of increasing consumer expectations.... http://www.stuff.co.nz/business/farming/agribusiness/72272820/Fonterra-wants-farmers-to-cut-back-on-palm-kernels
  • Palm kernel protest won't shift Fonterra or PM  17 Sep 2009; Both Prime Minister John Key and dairy giant Fonterra are turning a deaf ear to Greenpeace activists' demands following yesterday's dramatic protest off the Port of Tauranga. Up to 14 Greenpeace protesters boarded the Hong Kong-registered freighter East Ambition, lashing themselves to cranes and the anchor, preventing the ship from docking. They were protesting Fonterra's importation of palm kernel for use as stock feed because of its role in the destruction of rainforests, predominantly in Malaysia and Indonesia.... http://www.3news.co.nz/nznews/palm-kernel-protest-wont-shift-fonterra-or-pm-2009091707#ixzz3wGD838ab



13 Dec 2015: Fonterra and PK. Russia and Iran issues.


Fonterra to meet with Greenpeace 26 November 2015 Fonterra and Greenpeace will meet next week to discuss concerns about palm kernel expeller and major fires in Indonesia.... http://www.radionz.co.nz/news/rural/290586/fonterra-to-meet-with-greenpeace

Fonterra 'linked to rainforest destruction' 21 November 2015 Greenpeace is accusing Fonterra of being directly linked to deforestation in Indonesia through the importation of palm kernel... http://www.radionz.co.nz/news/national/290234/fonterra-'linked-to-rainforest-destruction'

On Russia and Iran issues - get in touch to find out more.


22 May 2015: infant formula shows China’s remarkable demand slows, earlier data on slowing and intense competition in instant noodles

Interesting to note the slowdown in instant noodles and now infant formula too...

Party over for infant formula firms as China’s remarkable demand slows By RJ Whitehead, 19-May-2015 The “easy money has been made” for Chinese and international infant formula companies as they prepare for the rush for powdered baby food to tail off over the next five years after a decade’s stratospheric growth. http://www.foodnavigator-asia.com/Markets/Party-over-for-infant-formula-firms-as-China-s-remarkable-demand-slows

UPDATE 1-China food giant Tingyi's sales and profit skid on slowdown, competition By Adam Jourdan Mon Mar 23, 2015 1:54am EDT  * Tingyi 2014 net profit down 2 pct, trails forecasts * Annual sales fall for first time since 1998 * Competition in market "intense" - Chairman * Analysts eye boost in 2015 from lower input prices (Adds chairman's comment, earnings details, context)
SHANGHAI, March 23 (Reuters) - China's largest food and beverage maker, Tingyi Holding Corp, said net profit slid 2 percent in 2014, falling well below estimates, as a slowing economy and fierce competition dragged sales down for the first time in almost two decades. Hong Kong-listed Tingyi, owner of the Master Kong brand and a partner with PepsiCo Inc and Starbucks Corp in China, said on Monday profit for the year fell to $400.5 million from $408.5 million a year earlier. ......Tingyi said total revenue was $10.2 billion for the year, down from $10.9 billion a year earlier, the first sales drop since 1998. The number was squeezed by a 4.5 percent drop in instant noodle sales, which accounted for 40.4 percent of revenue, and a 7.5 percent drop in beverage sales, contributing 56.7 percent of revenue. Analysts have said lower materials prices and Tingyi's advantage of scale over rivals - it commanded around a third of China's noodle market last year, according to Euromonitor - could help it soak up slowing domestic economic growth in 2015. The firm competes with Uni-President China Holdings Ltd and Want Want China Holdings Ltd, which announced an almost 10 percent drop in full-year net profit last week. http://www.reuters.com/article/2015/03/23/tingyi-results-idUSL3N0WP2T420150323

16 February 2015: Coca-Cola produces Fairlife premium milk, filtered and adjusted for 50% more protein, 30% more calcium and 50% less sugar

Got Coke? Soda maker starts selling 'premium milk' by Associated Press February 3, 2015, 4:02 PM
Coca-Cola is coming out with premium milk that has more protein and less sugar than regular milk. And it's betting people will pay twice as much for it..... The national rollout of Fairlife over the next several weeks marks Coke's entry into the milk case in the U.S. and is one way that the world's biggest beverage maker is diversifying its offerings as Americans continue turning away from soft drinks.... It also comes as people increasingly seek out some type of functional boost from their foods and drinks, whether it's more fiber, antioxidants or protein. That has left the door open for Coke to step into the milk category, where the differences between options remain relatively minimal and consumption has been declining for decades.... "It's basically the premiumization of milk," Sandy Douglas, president of Coca-Cola North America, said at an analyst conference in November. If developed properly, Douglas said, it is the type of product that "rains money.".... Fairlife, which Coca-Cola formed in partnership with dairy cooperative Select Milk Producers in 2012, says its milk goes through a filtration process that's akin to the way that skim milk is made. Filters are used to separate the various components in milk. Then more of the favorable components are added, while the less desirable ones are kept out. The result is a drink that Fairlife says is lactose free and has 50% more protein, 30% more calcium and 50% less sugar than regular milk.... The same process is used make Fairlife's Core Power, a drink marketed to athletes that has even more protein and calcium than Fairlife milk..... http://www.latimes.com/business/la-fi-coke-milk-20150203-story.html

22 Dec 2014: Palm oil free labels on infant milk cans

‘Palm Oil Free labels damaging for Malaysia’ By OOI TEE CHINGKUALA - 21 December 2014 @ 11:59 PM; THE spreading of “No Palm Oil” or “Palm Oil Free” campaign, first in Europe and now in Singapore, is potentially damaging for Malaysia, said National Association of Smallholders (Nash) of Malaysia. “It has come to this part of the world,’’ Nash secretary-general Zulkifli Mohd Nazim said, showing Business Times photographs of infant milk cans taken at a supermarket in Singapore with highly visible “Palm Oil Free’’ signages on them. He said the public is being misled into believing that saturated fats in palm oil are bad when in reality they are necessary in a balanced diet.....
http://www.nst.com.my/node/64792

14 November 2014: Gina Rinehart to produce traceable infant milk for China

China’s Hungry Infants Sought in Rinehart Formula Switch  By David Stringer and Stephen Engle  Nov 14, 2014 7:57 AM GMT+0800; "Gina Rinehart, chairwoman of Hancock Prospecting Pty. Gina Rinehart, the Australian billionaire who built her fortune on iron ore, is planning a A$500 million ($435 million) investment to supply infant formula to a Chinese market forecast to almost double over three years.... Hope Dairies Ltd., controlled by Rinehart’s closely held Hancock Prospecting Ltd., is seeking to acquire about 5,000 hectares (12,400 acres) of farmland in Queensland state and is targeting first production in the second half of 2016, according to co-investor and director Dave Garcia........A free-trade deal with China, seen boosting dairy exports, may be signed next week, Australia’s Prime Minister Tony Abbott said in a Nov. 10 interview.... The market in China for infant formula may grow to NZ$33 billion ($26 billion) by 2017 from about NZ$18 billion ($14 billion) now, according to Fonterra Co-operative Group Ltd., the world’s biggest dairy exporter.
Rinehart’s planned operation would employ about 400 people, adhere to stringent biosecurity standards and produce about 70 to 75 percent of its own milk from a herd of about 16,000 Holstein cattle, including 10,500 milkers, according to Garcia. The Van Diemen’s Land Co. has Australia’s biggest dairy operation, milking about 19,000 cows on holdings in Tasmania... China in May tightened standards on imported formula following concerns over contamination. Fonterra had exports of two products suspended for 15 months from August 2013 after a botulism scare that was later proved to have been a false alarm. In 2008, locally-made milk powder contaminated with the chemical melamine killed at least six infants in China.... Rinehart’s dairy will seek to use labeling that would allow customers to check the specific animals that produced milk used to create each package of powder, Garcia said.... Milk producers are also expanding exports, with Norco Co-operative Ltd. agreeing to more than double fresh milk sales into China and Bega Cheese Ltd. striking a distribution deal to supply UHT milk to the nation.... Expansions by domestic infant formula producers in China risk moving the market into oversupply, UBS AG analysts led by Christine Peng wrote in a June 7 note. Total consumption in China may peak in 2018, according to Macquarie Group Ltd...."
http://www.bloomberg.com/news/2014-11-13/china-s-hungry-infants-sought-in-rinehart-formula-switch.html

Singapore moves on "haze-free" products - apart from wood, paper makers, SEC plans to work with others such as palm oil industry


14 October 2015: Singapore moves on "haze-free" supply chain for wood and paper trader and makers. Supermarkets pull products.


Editor's note: APP has been in spotlight, but expects to meet pulp demand without clearing more forest, refer to write-up of independent assessment by TFT on associated Greenpeace approach: http://news.mongabay.com/2014/09/app-can-meet-projected-pulp-demand-without-clearing-more-forest/

Another 20 firms sign 'haze-free' declaration - NTUC FairPrice's staff removing Asia Pulp and Paper (APP)-related products from shelves at the supermarket chain's outlet at Nex mall in Serangoon on Oct 7, 2015.  NTUC FairPrice's staff removing Asia Pulp and Paper (APP)-related products from shelves at the supermarket chain's outlet at Nex mall in Serangoon on Oct 7, 2015. ST PHOTO: LIM YAOHUI  Published Oct 13, 2015, 5:00 am SGT Twenty more firms have declared that their products are free of raw materials from Asia Pulp and Paper (APP), which is under investigation over its connection to the haze. This brings the number of firms that have signed the Singapore Environment Council's (SEC) declaration form to 38. The latest firms to sign are those that sell wood-related products under the SEC's green label scheme. The online declaration form was sent to 210 firms in the wood-related product trade last weekend, said the SEC and the Consumers Association of Singapore in a joint statement yesterday. It was sent to    companies earlier this month, including major supermarket chain FairPrice and APP's exclusive distributor here, Universal Sovereign Trading. The move led several retail chains to pull APP products off their shelves.....SMF secretary-general Lam Joon Khoi told The Straits Times yesterday that the SEC approached the federation two weeks ago with the idea. The appeals were sent out last week and responses are trickling in. He said: "It's not something that we expect them to change overnight, but at least we have started the journey. "We really need to tighten the screws and increase the pressure to encourage firms to buy from more sustainable companies. "Some have said this will increase their costs. But my point to them is that we already pay a high price for the effects of the haze....Last month, the National Environment Agency served APP a legal notice to supply information on its subsidiaries in Singapore and in Indonesia. Six other Indonesian firms have been sent a notice asking them to take measures to  extinguish fires on their land, not to start new ones, and submit action plans on how they will prevent future fires. The sixth firm, PT Bumi Andalas Permai, was sent the notice yesterday..... http://www.straitstimes.com/singapore/another-20-firms-sign-haze-free-declaration

More firms on board for 'haze-free' declaration Oct 8, 2015, 5:00 am SGT - Jessica Lim  Consumer Correspondent - Apart from wood, paper makers, SEC plans to work with others such as palm oil industry....There are other complications, said SEC's head of eco-certification Kavickumar Muruganathan. Retailers here typically obtain the rights to sell a product from distributors, which then arrange with overseas manufacturers to import the stock. "Manufacturers might own plantations, but some strike deals with landowners on the side to use their land. Some also ask other suppliers to sell the fruit to them on an ad hoc basis if demand spikes," he said, adding that errant firms pay farmers to use their land for oil palm. On paper, the land is owned by the farmer and the firm is not implicated. There is also no map of land ownership available, making the task of pinpointing the owners of a plantation difficult. However, Nanyang Technological University's Professor Ang Peng Hwa, who co-founded the Haze Elimination Act on Team volunteer group, urged retailers to stop "putting up a smokescreen". "It is true it can be difficult. But retailers have to ask suppliers to show them certification," said Prof Ang. "Consumers also have a role to play to demand higher standards."....

http://www.straitstimes.com/singapore/environment/more-firms-on-board-for-haze-free-declaration

Haze fallout: NTUC FairPrice, Sheng Siong withdraw all APP paper products - Additionally, Cold Storage says it has suspended further purchase of APP-related products while Watsons Singapore has confirmed that it does not stock such brands as Paseo, Jolly and Nice.   UPDATED: 09 Oct 2015 21:23 http://prrt.co/sa/1?url=http://www.channelnewsasia.com/news/singapore/haze-fallout-ntuc/2175070.html

Singapore and Malaysia Wheeze as Indonesia Goodwill Hammered by Haze - The strongest El Nino in two decades may prolong the dry weather, meaning the haze could remain for some time yet  by Pooi Koon Chong  October 7, 2015 — 9:53 AM HKT http://www.bloomberg.com/news/articles/2015-10-07/singapore-and-malaysia-wheeze-as-indonesia-goodwill-hammered-by-haze

The sustainability / health debate matures? (update 6): Negative social impacts of palm oil in view by key NGOs - a call for data on social degradation; Halal standards also shows prevalence of multiple standards and customers paying for the higher costs; healthy food fight - healthier products and purer ingredients; US NBER economists find obesity linked to cheap food retailers - cheap processed and prepared foods is a feature.

Had an interesting chat with a long-time friend this morning over our morning walk. Is there going to be a secular change in trend that has so far seen a meteoric rise of the global consumer brands? In particular, the corporate results of a fast-food chain has done less well in light of health concerns and rise of more healthy competitors. We wondered about other companies - those selling fizzy beverages and junk foods as sugar, salt, oil and additives are increasingly targeted for concern. So, we browsed the Guardian website's sustainability pages to take a gander for themes. It was interesting to find a few countervailing items - notably the 2015 recommendations of The Observer's columnist on green / sustainable living (basically anti-global brands and long supply-chains) alongside several (more abundant?) rather corporate sustainability pieces (how corporates are teaming up on sustainability issues; how corporates can target human emotions in marketing their sustainability credentials, how a certification organization is accused of going too corporate; and about an NGO* stunt for the recent Lima climate talks says "Time for change").
* Some key international NGOs are working more on production changes than consumer changes; and some now work closely with corporates on certification or its like.

Are the voices against consumerism and global supply-chains in the international media getting a bit more prominent nowadays, or are we mistaken? A content analysis of this would help us to appreciate how it's trending (anyone seen anything in the public space on this?)... And we picked up earlier an article in Slate by Ruth DeFries - it is one of the more nuanced we've read on sustainability and equitable issues - it is essentially anti junk food and promotes "real food".

It's hard to imagine how the cheap and big global food supply chains and convenience foods and rise of middle income populations in emerging countries is not going to keep things rolling and growing..... but keep an eye on the maturing debate on sustainability as it talks more of / to consumers.


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18 March 2015: Negative social impacts of palm oil in view by key NGOs - a call for data on social degradation

Activists: Indonesia’s Palm Oil Industry Needs a Makeover- Observers say a highly unsustainable business model is wreaking havoc on the environment and indigenous people By Amantha Perera on 02:15 pm Mar 17, 2015; ... But when locals try to take a stand for their rights, such campaigns result in the alienation of whole communities or, worse, the criminalization of their activities.... In July 2014, a protester was shot dead by police in South Kalimantan while taking part in a protest against palm oil expansion. Another such killing was reported on Feb. 28 in Jambi, located on the east coast of the island of Sumatra. “The people who have lived off the land for generations become criminals because they want to preserve their way of life,” Setra laments.... She believes that as long as there is global demand for the oil without an accompanying international campaign to highlight the product’s impact on local people, companies are unlikely to change their mode of operation.... Others say the problem is a lack of data. Scott Poynton, founder of The Forest Trust (TFT), an international environmental NGO, tells IPS that there is inadequate information on the socio-economic impacts of oil operations.... He says the focus on deforestation — in Indonesia and elsewhere — is a result of the tireless work of NGOs dedicated to the issue, combined with “easy-to-use tools like the World Resource Institute’s Global Forest Watch,”  a mapping system that allow people to quickly and cheaply identify deforestation.... He says similar resources must be made available to those like Setra — grassroots leaders on the ground, who are able to monitor and report on social degradation caused by the palm oil sector.... According to the World Wildlife Fund in the last three-and-a-half decades Indonesia and Malaysia lost a combination of 3.5 million hectares of forest to palm oil plantations.
Statistics like these suggest that nothing short of sweeping changes will be required to put indigenous people like Setra at the center of the debate, and build a sustainable future for palm oil production. - Inter Press Service... http://thejakartaglobe.beritasatu.com/news/activists-indonesias-palm-oil-industry-needs-makeover/

14 March 2015: Halal standards also shows prevalence of multiple standards and customers paying for the higher costs

No benefit from single Halal standard, says Brazil poultry body 10-Mar-2015; No cost advantage.. He dismissed the idea that a single standard might allow poultry producers to cut costs, saying that producers simply passed on costs to their customers: "It's not a question of easy or not easy, or more costly or less costly - we just say, if you want us to do this, we will do it. If you want us to improve the Halal controls, have two supervisors instead of one, we will do it, and it will cost you."...
http://mobile.foodnavigator.com/Regions/Middle-East/No-benefit-from-single-Halal-standard-says-Brazil-poultry-body#.VQQPLZ2wqrR


11 February 2015: Healthy food fight - healthier products and purer ingredients

Healthy Food Fight: Kids, Allergies and Big Business  - Food -  Jan 30, 2015  
The Allergy Kids Foundation, and author of “The Unhealthy Truth,” discusses the fight to get food companies to produce healthier products and why overseas fare is made with purer ingredients...
http://www.bloomberg.com/news/videos/2015-01-29/healthy-food-fight-kids-allergies-and-big-business

29 January 2015: US NBER economists find obesity linked to cheap food retailers (trigger of self-control problems), rising cigarette prices, more restaurants, fewer blue-collar jobs but fitness centers and higher gas prices (it's actually falling in recent months!) might help. Again, cheap processed and prepared foods is a feature.

The Economy Is Making You Fat - Bloomberg Business; New research has connected food costs and the retail mix to the surge in U.S. obesity rates by Jeanna Smialek 3:32 PM WET January 28, 2015;
The No. 1 reason we've gained weight? Wal-Mart. To be fair, that's a massive oversimplification. People weighed more when the cost of calories decreased” that explained 36.5 percent of total BMI gains. The proliferation of supercenters and warehouse clubs was the biggest contributor to that trend, explaining 17.2 percent of weight gain.... "raising the possibility that cheap food from these retailers triggers self-control problems." Additional economic changes that make Americans pack on the pounds include rising cigarette prices, more restaurants, and fewer blue-collar jobs.
....There is Hope. And it lies in your local treadmill. Fitness-center expansion and increases in gas prices were shown to correlate with lower BMI's..... http://www.bloomberg.com/news/articles/2015-01-28/the-economy-is-making-you-fat-i5gvfsl7?cmpid=BBD012815&alcmpid=


4 January 2015: Sugar as the new tobacco... what next?

A related issue is the rising prominent talk of sugar and other ingredients in junk foods as the "new tobacco." This has benefited stevia, marketed as a natural high intensity sweetener - we bought our first stevia-sweetened cola in December 2014 (yes, in a KL supermarket - but on sale). Many soda makers have launched these such options.

Jamie Oliver: Sugar can destroy lives and should be taxed like tobacco  By  Ben Farmer 12:04PM GMT 03 Jan 2015; The campaigning television chef says sugar is "the next tobacco" and it should be taxed because of its health risks... Sugary foods risk causing a public health crisis similar to smoking and should be taxed in the same way as tobacco, Jamie Oliver has said.  The television chef said sugar was “definitely the next evil” and should be targeted because of the burden it was placing on the NHS. He said he agreed with France's decision to impose a tax on sugary drinks and believes Britain should follow.... A third of British children and two-thirds of British adults are classed as obese or overweight, while the number with diabetes has doubled in the past two decades. The two conditions are already estimated to cost Britain more than £5bn each year and that could rise tenfold by 2050.... Mr Oliver said: “I’m not passionate about taxing, but when you look at the pot of cash that isn’t getting any bigger, and if you think that 68 per cent of every case that goes through the NHS is diet-related, then yes, you need radical change.’....
http://www.telegraph.co.uk/health/11323096/Jamie-Oliver-Sugar-can-destroy-lives-and-should-be-taxed-like-tobacco.html

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3 January 2015: A strong anti-junk / real food piece and a case made for grass fed beef by a farmer

Hold the Cookies, Save the Climate; Everyone knows meat is bad for the environment. But so is an ingredient commonly found in junk food. By Ruth DeFries; This article is part of Future Tense, a partnership of Slate, New America, and Arizona State University. On Thursday, Jan. 15, Future Tense will hold an event in Washington, D.C., titled “How Will Human Ingenuity Handle a Warming Planet?” For more information and to RSVP, visit the New America website; Imagine if eating packaged cookies and crackers were as socially unacceptable as smoking a cigarette. People would sneak to the balcony to tear open packages of Oreos. Travelers would slink into designated rooms to scarf down candy bars. “No junk food” signs would adorn the halls of public buildings.... Waistlines, nutrition, and health care costs would all by improved by a junk food–free world. So would the climate, the rain forests, and the dwindling populations of wild orangutans in Southeast Asia.... The benefits of eating less red meat have already permeated the consciousnesses of those seeking a climatically responsible lifestyle. Indeed, in the United States, people on average consume less red meat than they did a few decades ago, though likely more for health than climate concerns. The consumption of processed foods, with their high content of sugar and oils, has skyrocketed in the other direction. The trend has helped fuel the obesity epidemic in the U.S. and throughout the world. But its impact on climate gets far less attention than the energy-sucking effect of hamburgers and steaks.... With land in scarce supply and demand for food climbing, the planet cannot afford to grow food that makes people sick instead of healthy.... The protests against palm oil have raised awareness about the damage that may be wrought by the world’s voracious appetite for cheap fat. They also bring up many thorny questions about the right path to a more equitable world, that has economic opportunities for all, and won’t destroy the planet in the process. Do the environmental costs of palm oil from Southeast Asia outweigh the damage from industrial farming of soybeans in the prairies of the Midwest? Should those countries with remaining stocks of rich, lush rain forests be obliged to forgo the benefits of developing their agriculture? With the push toward certification of sustainably produced palm oil, how can the millions of poor oil palm farmers afford to go through the expensive process to get certified?.... These knotty questions have no obvious answers. But one fact is clear. Whether it’s squeezed from soybeans or from the fruits of palm trees, oil in processed food is a losing proposition. It’s bad for nutrition and it wastes much-needed land that could produce healthier food. The atmosphere accumulates greenhouse gases, and waistlines pile on fat. People in the street have little control over international climate negotiations and discussions between environmental groups and companies in closed rooms. But if reasonably priced options are available, people can control what they put in their grocery baskets and feed their families.... Let’s be practical. It’s unrealistic to expect most people to consider the climate as they rip open packages of crackers made with oil. The climate crisis will not be solved by selfless solutions that benefit faraway places and future generations. It could be alleviated by solutions that align with more immediate interests. Profit and reputation are obviously among those interests, hence the corporate attention to the bottom line in taking on their sustainable palm oil pledges. For the rest of us, benefits for our health can also be a plus for climate. It’s not just saying no to a burger or rib-eye. We have to say no to the processed foods that have negative ramifications for both climate and health. Vegetable oils ubiquitous in junk food can be avoided simply by eating real food. The climate will be a winner, and so will our diets.... uth DeFries is a professor at Columbia University and author of The Big Ratchet: How Humanity Thrives in the Face of Natural Crisis, published by Basic Books. http://www.slate.com/articles/technology/future_tense/2014/12/palm_tree_oil_and_the_environment_skip_the_cookies_to_fight_climate_change.html

Essay: Actually, Raising Beef Is Good for the Planet; Despite environmentalists’ worries, cattle don’t guzzle water or cause hunger—and can help fight climate change Grasslands for cattle safeguard soil, water and land.  By Nicolette Hahn Niman  Dec. 19, 2014 6:12 p.m. ET ; People who advocate eating less beef often argue that producing it hurts the environment. Cattle, we are told, have an outsize ecological footprint: They guzzle water, trample plants and soils, and consume precious grains that should be nourishing hungry humans. Lately, critics have blamed bovine burps, flatulence and even breath for climate change.... As a longtime vegetarian and environmental lawyer, I once bought into these claims. But now, after more than a decade of living and working in the business—my husband, Bill, founded Niman Ranch but left the company in 2007, and we now have a grass-fed beef company—I’ve come to the opposite view. It isn’t just that the alarm over the environmental effects of beef are overstated. It’s that raising beef cattle, especially on grass, is an environmental gain for the planet..... http://www.wsj.com/articles/actually-raising-beef-is-good-for-the-planet-1419030738?mobile=y&mg=reno64-wsj


3 January 2015: Browsing the Guardian website on sustainability - anti-consumerism recommendations and corporate sustainability pieces

How can I go green in 2015? I’m determined to lead a more eco-friendly life in 2015. What can I do at home? If you have an ethical dilemma, email Lucy at lucy.siegle@observer.co.uk by Lucy Siegle
 Sunday 28 December 2014 06.00 GMT; Trends need not be fickle engines of pure consumerism. We have them in ethical living, too you know. 2015 is all about self-reliance. More dynamic than the downshifting trend (work fewer hours, move to the countryside, keep bees), self-reliance is about actively claiming ownership of our lives and wresting supply chains from global corporations. So from food to finance, watch out for local organisations which offer alternative ways of doing things and systems that are not reliant on the whims of big business or local government.... In 2015 there are no extra points for recycling, saving energy or using the bus, not the car – these are settled behaviours that you should be doing automatically. The kitchen and garden (or community garden or allotment), where we carry out transformative processes like composting, are at the heart of self-reliance. Take your lead from foodie trends that aim to localise parts of the food chain, wrestling them back from food corporations and their impactful supply chains.... One way to do this is by processing your own food. Get acquainted with archaic-sounding kitchen verbs: brewing, fermenting, brazing, curing.
Over the last decade I’ve watched – and occasionally tried to intervene – as clothes lovers become captive customers. Super-cheap fast fashion means disposability. Don’t buy for landfill. Fight back. DIY fashion needn’t mean knitting worthy jumpers, as Secrets of Sewing Lingerie (Kyle Books, £15.99) makes clear. The bourgeoning craft handmade movement is important for local economic relationships and capitalises on the ethical benefits of shorter supply chains.... So in 2015 avoid a monocultural existence where you devolve responsibility to a few corporate brands for your food, entertainment and technology. Instead look for the biodiversity of local organisations and alternative ways of living..... http://www.theguardian.com/environment/2014/dec/28/how-can-i-go-green-in-2015-lucy-siegle

Why rivals like PepsiCo, Coca Cola, Unilever and P&G are joining forces by Oliver Balch Thursday 23 October 2014 12.22 BST; Business competitors have realised that greater impact can be achieved by working in close alliance on big sustainability issues;  http://www.theguardian.com/sustainable-business/2014/oct/23/pepsico-coca-cola-unilever-proctor-gamble-partner-business

Why targeting 4 human emotions is key to marketing sustainability by David Hawksworth Monday 21 July 2014 16.59 BST;  By focusing on the correct human emotions, the message of sustainability could have a deeper impact... While brands have been remarkably successful at feeding universal human drives, such as the desire for adventure, power or status, sustainability has not been seeing the same success in its messaging. What sustainability needs to create the same impact is a similar level of insight into the best way to embrace the full range of human emotions. Because it's human emotion that's at the heart of what motivates us.... The latest thinking around behaviour change and sustainability as put forward by Common Cause, a think tank funded by Oxfam, Public Interest Research Centre, and WWF-UK, is that the key to encouraging sustainable living is to align it to core values. Its argument is that a less wasteful lifestyle will only be adopted if it fits closely with the identity and sense of self of the individual involved. However, the rub is that some of those values are painted as positive and conducive to a better life - often called inner-directed values, while others are portrayed as negative and undesirable, leading naturally to selfishness and greed - called outer-directed values.... Effective neuroscience identifies four basic human drives aligned to a handful of neurochemicals in the brain. These four drives each have their own useful role to play in promoting human survival and out of these have emerged the full range of human emotions:
  • Contentment - to minimise harm and probability of bodily destruction
  • Nurturance - to facilitate familial and social bonding
  • Seeking - to reward curiosity, survival abilities, achievement and excitement about achieving the desired goals e.g. food and stimulation
  • Assertiveness - to overcome restrictions on freedom of action
This insight presents a more balanced view of consumerism and how brands meet our basic needs - a new mother is not buying extra baby products because of an outer-directed motivation to demonstrate her status in the world, she is buying them because of her innate drive towards the nurturance of her child. Rather than trying to change us, brands have worked out what makes us tick. They successfully appeal to our full range of drives; our sense of freedom, home, playfulness, power or sensuality.
The Wayfinder tool demonstrates twelve strategies that show how any brand can use sustainability to build on its core story....  David Hawksworth is co-founder and creative director of Given London
The sustainable living hub is funded by Unilever. All content is editorially independent except for pieces labelled advertisement feature. Find out more here.

Soil Association has disowned 'O word', say resigning trustees by Adam Vaughan, Monday 1 December 2014 15.53 GMT ; Organisation accused of losing its focus on organic food and farming and adopting a corporate mindset... The UK’s biggest organic lobbying group has disowned its philosophical roots, is failing to support homeopathy for animals and has developed a dull and insipid image, say four trustees who have resigned over the Soil Association’s future direction.... In a scathing letter the trustees say the 68-year old charity, which certifies four-fifths of organic produce and campaigns for organic farming, has abandoned its focus on organics in an attempt to reach a wider audience.... He said that the charity had been co-opted by the power structures of big farming and the supermarkets. “They [the directorate] do not understand the difference between dialogue and appeasement.” http://www.theguardian.com/environment/2014/dec/01/soil-association-has-disowned-o-word-say-resigning-trustees

Greenpeace apologises to people of Peru over Nazca lines stunt by Dan Collyns in Lima; Thursday 11 December 2014 00.53 GMT; Culture ministry says it will press charges against activists for damage to world heritage site as UN climate talks began in Lima... Greenpeace has apologised to the people of Peru after the government accused the environmentalists of damaging ancient earth markings in the country’s coastal desert by leaving footprints in the ground during a publicity stunt meant to send a message to the UN climate talks delegates in Lima.... http://www.theguardian.com/environment/2014/dec/10/peru-press-charges-greenpeace-nazca-lines-stunt

Wilmar’s strong pledges - NGO reactions

On 5 Dec 2013, Wilmar introduced its ‘No Deforestation, No Peat, No Exploitation’ policy. This adds on many new criteria to the RSPO standard. Noteworthy additions include: (i) the non-use of peat of any depth; (ii) apparent agreement to the controversial 35 tonnes carbon per hectare ceiling (implied by the statement: “HCS will be protected. (Only) Young Scrub and Cleared/Open Land areas may be developed”); (iii) progressive greenhouse gas reductions (likely to affect palm oil waste management and the cultivation of existing peatlands); (iv) the restoration and enrichment of forest and peatlands (at what cost and on whose determination?); and on labour, Wilmar pledges on (v) no forced labour, (vi) a 60-hour work week with 1 day off (i.e. average maximum 10 hour work day inclusive of overtime), (vii) 3.8 square meters / 32 square feet of individual living space, and (viii) trade unions with collective bargaining.

These broad and strong new socio-environmental commitments will apply immediately to Wilmar’s own plantations (it has adhered to the RSPO standard, but it now needs to add numerous new criteria). Wilmar will also apply this to other companies who supply the palm oil, sugar, soy and other commodities that it trades. Thus, this pledge should have big impact, especially on palm oil where it is frequently said to control around half the world trade. Here, Wilmar can use the power of its dominant position.

Such a move by a dominant company has long been the strategic goal of NGOs pushing for strong palm oil sustainability. WWF targets 15 commodities with its “roundtables” voluntary standards program which targets the “big brands” to effect more rapid change[2]. Csrwire.com (15 Nov 2013) exaplains that “corporations can leverage their supply chain power to achieve systemic solutions to social and environmental challenges.” Power or size is a curious thing: big can be a strength as well as a risk.

Wilmar’s policy was launched just after its deal with Unilever, the #2 FMCG giant. Unilever also recently upgraded its own target to only use traceable palm oil by end 2014; together with a plan collapse its supplier roster from over 100 to under 20. Multinationals are under pressure to use “ethical” ingredients. NGO commentators note that “the commercial benefits to Wilmar of appearing to be an environmental leader are clear.” At the same time, they are watchful of how Wilmar will implement its policy.

"RSPO+9", new TFT / Climate Advisers-led policies for Wilmar include:
(i) non-use of peat land of any depth; (ii) likely 35 tonnes carbon per hectare ceiling for land development; (iii) progressive GHG reductions; (iv) restoration and enrichment of forest and peatlands (similar to RSPO HCV compensation?); (v) no forced labour, (vi) 60-hour work week with 1 day off inclusive of overtime, (vii) 3.8 square meters / 32 square feet of individual living space, (viii) trade unions and collective bargaining; (ix) grievance procedure where advisers and stakeholders have a say in banning suppliers Note: Summarised from Wilmar’s “No Deforestation, No Peat, No Exploitation Policy,”


Wilmar’s existing suppliers have until the end of 2015 to comply. Wilmar plans to semi-outsource key parts of its supplier management, notably: “Wilmar will cease to do business with any suppliers who our independent advisors (TFT and Climate Advisers) or other stakeholders find are in serious violation of this policy, and who do not take immediate remedial action to correct those violations.” It promises that a banned list of suppliers will be created.

NGOs seem interested to see how Wilmar’s new policy will affect the Ganda Group, a palm oil company closely connected to Wilmar (reports by Friends of the Earth, 2007 and Greenpeace, 22 Oct 2013). Awasmifee.potager.org (11 Dec 2013) writes that “Wilmar has a special relationship with Ganda Group, which is owned by Ganda Sitorus, the younger brother of Wilmar founder Martua Sitorus. In recent years the Ganda Group has taken over plantations which do not meet Wilmar’s previous ethical commitments to the RSPO and IFC… (e.g. Wilmar) sold its subsidiary PT Asiatic Persada to the Ganda Group.”

It appears that Wilmar is in the position of pushing rather strongly with pledges that may prove challenging to implement. Judging from the tone of NGO reactions, their scrutiny of Wilmar’s moves could remain pretty tight. Can it hit its KPIs and timelines? Will enough NGOs regard Wilmar’s move as satisfactory or will some NGOs see opportunity to bargain for more? Such shifts can attract more change-makers seeking tipping points across several tropical and other commodities.
Along with TFT and Climate Advisers, Greenpeace now sits atop palm oil sustainability (by virtue of its ground-breaking move with TFT at Golden Agri/Sinar Mas on the new high carbon stock criteria). Greenpeace views the move as “Wilmar (caving) to public pressure.” it promises that it “will be closely monitoring how Wilmar will put these words into action…” and asks “will it now immediately stop buying from companies such as the Ganda Group” (5 Dec 2013). Rainforest Action Network calls this “only the beginning” (ran.org, 5 Dec 2013).

How will other dominant players react (see page 2)? While it looks like they may need to rely on the same imaginative independent advisers (TFT and Climate Advisers lead Wilmar), it is possible that at the industry level there is need to hedge risk via some “home grown” national, regional or multilateral programs. If there is perceived or actual weakness in negotiation strategies and tactics - industry and companies can become “soft targets.” Indeed, some professionals worry that marketing is making the call rather than science. If so, we would not be surprised to see stringent interpretation and implementation of Wilmar’s pledges and/or even more criteria added in years to come. But only time will tell.

[2] Jason Clay explains WWF’s 15 commodity-big brands strategy in this video: http://www.ted.com/talks/jason_clay_how_big_brands_can_save_biodiversity.html

This is an article from Khor Reports' Palm Oil Newsletter #6, Jan/Feb 2014.