What You Need to Know About Sustainable Palm Oil
Palm oil is used in everything from cosmetics to food to soap. There is enormous demand for it. But it is hugely controversial because it involves the clearing of tropical rainforests to grow palm oil plantations. This has led to the loss of biodiversity and habitat for under–threat animals such as the orangutan.
But some companies are signing up to comply with a standard known as “certified sustainable” palm oil. There is a generally–agreed global standard set by the Round Table on Sustainable Palm Oil (RSPO), which is made up of oil palm growers, retailers, NGOs and manufacturers.
To become officially “sustainable”, a company pledges not to clear any primary forest, to have transparent supply chains, to check how much carbon they are emitting, to limit planting on peatlands, to treat workers fairly, and create wildlife zones.
Certification Systems
The RSPO has set up two certification systems:
- One is the certification standard that applies to all oil palm growers, thus covering the production of Certified Sustainable Palm Oil (CSPO). It is called “producer/grower certification” or Principles & Criteria (P&C) certification.
- The Supply Chain Certification System (SCCS) covers the rest of the supply chain as a means to ensure the integrity of the CSPO produced is maintained, e.g.: palm oil sold as sustainable palm oil has indeed been produced by certified plantations.
Read further on the Supply Chain Certification System in our post, All You Need to Know About Supply Chains. Both systems involve third–party certification bodies. Such rigorous certification systems considerably reduce the risk for consumers to use palm oil that is not sustainable.
RSPO Is Not the Same as CSPO
- The RSPO is an organization (Roundtable on Sustainable Palm Oil).
- CSPO is the physical oil (Certified Sustainable Palm Oil).
Some brands/companies will argue that they source their palm oil from companies which are members of the RSPO or only use palm oil produced that is sustainable.
While RSPO–member companies publicly claim that they are committed to sustainable palm oil, many are not meeting their RSPO commitments. Despite RSPO certification, all of the same destructive practices are occurring and the RSPO is failing to enforce its own minimal principles & criteria. Read further about this issue in our post, Why Sustainable Palm Oil is Problematic.
Part of the criteria to become a member of the RSPO is to make a commitment to the RSPO to eventually be 100% certified by 2015 or later. A brand can state they are members of the RSPO without actually sourcing Certified Sustainable Palm Oil, so just because RSPO are mentioned in brand statements it does not necessarily mean they are using certified palm oil.
Important Note: As of 1st September 2015 brands/companies that are not members of the RSPO are not allowed to make any claims to consumers stating that they use RSPO palm oil, source from RSPO members, use sustainable palm oil or certified palm oil.
Mass Balanced Sustainable Palm Oil
Because mass balance means a mix of oil using uncertified with certified palm oil and not traceable to the source. Brands using mass balance can claim that the palm oil used in their products supports the production of certified palm oil. Imagine filling half a glass of water from one tap and topping it up from another tap. There is no way to know which tap the water in the glass has come from, as it is mixed into one liquid.
Several leading environment charities say the rules aren’t strict enough and the sanctions aren’t strong enough. A 2018 report by the International Union for the Conservation of Nature (IUCN) stated that there is “limited evidence of the conservation effectiveness.”
The Cost of Mass Balanced Sustainable Palm Oil
The cost of mass balance sustainable palm oil will be approximately $60–$100 per metric tonne over non–certified palm oil.
Palm Oil and No Deforestation Policies
A “no deforestation” policy means that the brand or palm oil company has gone above and beyond certification with extra standards including “no peat” and “no exploitation”, brands with a no deforestation policy work with a 3rd party to engage with their suppliers to track and map their supply chain.
No deforestation or “zero deforestation” does not mean that there is absolutely zero deforestation in the supply chain, it does however mean that the company have strengthened and built upon the weaker RSPO standards to remove illegal deforestation from their supply chain.
Those with a No Deforestation or Zero Deforestation policy also means that they have made a strong commitment to ensure that if illegal activity is found to be leaking into the supply then the company will take action to cut out that supply. The companies with these policies are doing their utmost best to ensure the supply is ethical.
Finding Sustainable Palm Oil
Finding sustainable palm oil can be tricky. But there is a label. There is also a free app called Giki, recommended by the World Wildlife Fund (WWF), where you use a smartphone to scan the barcode. You can watch the full documentary, “Unmasked: Make–Up’s Big Secret” below.
About GreenPalm
GreenPalm also known as “Book & Claim”, was originally set up as a supply chain option to create market demand for RSPO certified sustainable palm oil.
GreenPalm is endorsed by the RSPO and the World Wildlife Fund and set up by AAK Palm Oil Company. It was put in place to allow manufacturers/brands time to make the transition to 100% certified sustainable palm oil, this was meant to have been until buyers could access a steady and traceable supply of certified sustainable palm oil.
GreenPalm is meant to be used as a temporary supply chain by brands, however as this system allows brands to make sustainable claims without purchasing certified palm oil, many are abused this system and using it as long term supply.
GreenPalm is not certified sustainable palm oil. Certified growers downgrade their oil to uncertified then convert to certificates that are traded on a web based transaction system, e.g.: 1 x certificate = 1 x ton of oil.
GreenPalm is a very cheap option for brands to purchase RSPO–endorsed palm oil with a claim stating it supports the production of sustainable palm oil. It is important to note that the physical oil itself is neither certified nor sustainable.
Sources:
What does RSPO Mass Balance mean? – Palsgaard
https://www.palsgaard.com/en/responsibility/responsible-products/rspo-sg-certified-emulsifiers/what-is-the-rspo/what-does-rspo-mass-balance-mean
What is Mass Balance Sourcing? | Rainforest Alliance
https://www.rainforest-alliance.org/business/certification/what-is-mass-balance-sourcing/
MOI Foods – Mass Balanced Sustainability
http://www.moifoods.com/index.php/sustainability/mass-balanced-sustainability
MOI International – Mass Balanced Sustainability
https://www.moiaust.com/index.php/sustainability/mass-balanced-sustainability
What is sustainable palm oil? – BBC News
https://www.bbc.com/news/science-environment-49553703
RSPO Supply Chains | RSPO – Roundtable on Sustainable Palm Oil
https://www.rspo.org/certification/supply-chains
Is Sustainable Palm Oil Really Sustainable?
https://www.sustainablejungle.com/sustainable-living/sustainable-palm-oil-solution/
PALM OIL SUPPLY CHAINS – PALM OIL INVESTIGATIONS
https://www.palmoilinvestigations.org/palm-oil-supply-chains.html