Procter & Gamble sets traceable palm oil deadline

Paul Snell is managing editor at Supply Management
19 April 2014

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20 April 2014 | Paul Snell

Procter & Gamble (P&G) is the latest company to commit to a fully traceable palm oil supply chain.

The FMCG company behind brands such as Fairy, Head & Shoulders and Iams said it will ensure it knows the provenance of the palm oil it sources by 31 December 2015, working with its suppliers and farmers to improve sustainability. It has also pledged there will be no deforestation in its palm oil supply chain by 2020.

Included among P&G’s commitments are that suppliers of palm oil will have to explain by December 2015 how they will make sure there is no deforestation. The company also said it will begin working with small farmers to improve their practices. In addition, the firm plans to collaborate with the wider industry, NGOs and academics to promote standards and practices for sustainable sourcing.

The company also plans to report annually on its progress toward the goal. All the palm oil it currently buys is certified by the Roundtable on Sustainable Palm Oil. The commitment goes further than this standard.

“Our aim is to develop effective long-term solutions to the complicated issue of palm oil sustainability,” said Len Sauers, vice president of global sustainability at P&G. “We are committed to driving positive change throughout the entire supply chain, not just for us, but for the industry and for the small farmers who depend on this crop.”

Other food manufacturers and retailers that have made a similar commitment in 2014 to a deforestation free palm oil supply chain include Mars, Kellogg’s, Hershey’s and Delhaize.

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