Palm oil – sustainable palm oil in high demand

Globally, palm oil is the most produced and consumed vegetable oil, accounting for 30 percent of the world’s vegetable oil production. The oil palm has the highest yield of all oil crops – six to ten times more than other oil seed crops.

However, palm oil production has raised serious concerns relating to deforestation and the elimination of endangered animals, to name two. As a consequence, the Roundtable on Sustainable Palm Oil (RSPO) was established in 2003. AAK is one of the founding members and continues to be very engaged in the RSPO, and its Board.

However, RSPO is not perfect. Many are of the opinion that plantation expansions raise concerns with regards to environmental and social issues. AAK shares these views and has consequently adjusted its palm oil policy with additional requirements that build upon RSPO Principles & Criteria. Palm oil traceability to origin is key to these requirements as a means to be able to assess if the requirements are met.

Based on the RSPO requirements combined with the additional requirements in our policy, we expect our palm oil supply base to become fully sustainable.

In June 2014 we saw the need to launch a policy specifically focusing on our commitment towards obtaining a fully sustainable palm oil supply chain. During our move towards a fully sustainable palm oil supply chain we have overcome many challenges and achieved significant progress towards our objectives.

In January 2017 we updated our palm oil policy.

The main changes are:

  • Traceability to plantation: AAK will achieve full traceability to plantation as soon as practically feasible with an ambition of achieving this goal in 2018/19 while still regularly communicating on progress.
  • New commitment to support smallholders: during our journey towards a fully sustainable supply chain, we have recognized that the many smallholders that constitute a significant proportion of the palm oil production need special focus. Smallholder inclusion in the supply chain is a key issue which is why we in our revised policy have included a new commitment to support smallholders.

Our updated palm oil policy is available at this website.

Link to RSPO

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