We recognise that to achieve ‘no deforestation’ we must work with all agents in the supply chain, from plantation owners, processors and suppliers all the way to the consumer. Our Guideline asks our suppliers to source oil from plantations that:
- Are legally compliant
- Respect the “free, prior and informed consent” of local and indigenous communities
- Respect high conservation values (HCVs).
- Protect peat lands
- Protect high carbon stock forests, and
- Respect all other RSPO principles and criteria.
By making explicit provisions for the protection of peat lands and high carbon stock forests that provide valuable carbon storage, we go beyond the Roundtable on Sustainable Palm Oil (RSPO) requirements to give more emphasis to the issue of deforestation, which is a leading cause of the loss of biodiversity and increased CO2 emissions. So far we are the only major food company to have taken such a step.
We support the RSPO as the industry-wide instrument to promote sustainable palm oil production. We use the RSPO as a means to verify compliance of our palm oil purchases against most of our RSG requirements (all except our additional requirements on peatlands and high carbon stock forests that we verify separately).
We have committed to purchasing palm oil solely from certified sustainable sources by 2015. We have made strong progress towards that goal. In 2011, 54% of our palm oil volumes were certified sustainable palm oil. By the end of 2012, we purchased 80% certified sustainable palm oil, out of which 13% is traceable RSPO certified palm oil, and 67% is from GreenPalm certificates. By 2013, all of our palm oil was RSPO certified sustainable.
Implementing the Palm Oil Responsible Sourcing Guideline
To ensure the palm oil we source is not associated with deforestation, we must know where it comes from. So we work with our suppliers to build traceability and carry out field assessments against our RSG requirements.
We accept RSPO certification as verification of compliance, except for peatland and high carbon forest, which must be independently verified. In addition, we accept traceable oil from smallholders and growers that are not yet compliant but have an action plan and timeline in place for meeting our RSG requirements.
We recognise that during an interim period, until traceability becomes feasible for all supply chains, including for complex blends of palm-based derivatives, GreenPalm certificates have a role to play in supporting producers of certified sustainable palm oil.
Since we began working on palm oil traceability in 2010, we have directly engaged with suppliers responsible for 80% of our palm oil volume (410’000 Metric Tons).
By September 2013:
- 45% of our volume can be traced back at least to the mill in the country of origin.
- 13% of our volume is Responsibly Sourced, meaning traceable to plantation, RSG assessed, compliant or engaged in continuous improvement.
- 5% of our volume is fully compliant, meaning traceable to plantation level and fully compliant against our Responsible Sourcing Guideline requirements.
- By September 2013, 100% of our palm oil was RSPO certified (Including 16% RSPO segregated and an estimated 84% in the form of GreenPalm certificates).
Full details on our progress: Autumn 2013 Palm Oil Progress Report (pdf, 925 Kb).
The traditional soya supply chain is characterised by a high degree of complexity. Traceability information back to the region of origin, and ultimately to the grower, is often not readily available. Yet soya is a key commodity in our journey of eliminating deforestation from our supply chains and we apply the same process as for palm oil and paper and board: we map our supply chains back to the origin and we assess and develop our suppliers against our RSG requirements.
In 2011, we partnered with Conservation International, a global environmental non-profit organisation, to develop category-specific requirements (pdf, 2 Mb). The soya requirements were finalised in 2012, and are now being used to implement our commitment to no-deforestation and forest stewardship in the field of soya sourcing.
As the first stage of implementing the RSG in 2012, we embarked on a project with the support of Proforest to map our current soy supply chains in Brazil and Argentina. The information gathered highlights critical control points along the soya supply chain that we need to manage together with our suppliers to establish transparency back to the origin of cultivation. This will allow for the assessment of our soya producers supply chains against our RSG in 2013, with a view to eliminating any occurrence of deforestation or loss of high conservation values. This assessment forms the basis for developing and launching RSG action plans with all our key soya suppliers in Brazil and Argentina in 2013.
Paper and paper board
In 2010, as part of our commitment to no-deforestation and forest stewardship, we launched a partnership with The Forest Trust for the responsible sourcing of paper & board.
Our Responsible Sourcing Guideline requirements for paper and board (pdf, 2 Mb) are designed to ensure that the products we buy come from fibre sources that have not led to deforestation or loss of high conservation values. They also address the environmental performance of paper mills.
In 2011, we started mapping and assessing the supply chains of more than 260 suppliers in the priority countries of Brazil, China, Europe, India, Indonesia, Malaysia and USA. These supply chain maps enable us to assess potential sustainability risks and prioritise individual fibre sources or mills for improvement.
We are pleased to report that, in 2012, the countries we operate within Europe delivered a breakthrough in engaging 100% of its paper and board suppliers and to assess their performance at both the forest level and the mill level. This is a significant step towards eliminating unwanted fibre sources from our supply chains. We developed a Supplier RSG scorecard, consisting of both a fibre traceability database and a paper mill environmental performance database that is being used for more than 180 of our paper supply chains to define RSG action plans.
Deforestation Guides for Commodity Sourcing
In partnership with the non-governmental organisation Conservation International, we have developed guides to track and illustrate areas at greatest risk of deforestation.
|Argentina (pdf, 372 Kb)
||Bolivia (pdf, 380 Kb)
||Brazil (pdf, 485 Kb)
|Cambodia (pdf, 375 Kb)
||Cameroon (pdf, 355 Kb)
||Colombia (pdf, 467 Kb)
|Democratic Republic of
Congo (pdf, 377 Kb)
|Ecuador (pdf, 56 Kb)
||Ethiopia (pdf, 367 Kb)
|Ghana (pdf, 355 Kb)
||Honduras (pdf, 368 Kb)
||Indonesia (pdf, 388 Kb)
|Mexico (pdf, 383 Kb)
||Myanmar (pdf, 391 Kb)
||Nigeria (pdf, 381 Kb)
|Papua New Guinea (pdf, 370 Kb)
||Paraguay (pdf, 369 Kb)
||Peru (pdf, 359 Kb)
|Venezuela (pdf, 379 Kb)
||Zimbabwe (pdf, 425 Kb)