The RSPO’s suspension of IOI in April has forced even laggard companies to take a closer look at the ‘carbon bombs’ in their supply chains

The recent suspension of Malaysian palm producer IOI by the Roundtable on Sustainable Palm Oil (RSPO) after satellite pictures showed it had been involved in deforestation has intensified the debate over the scrutiny of palm supply chains. Even the fast moving consumer goods companies that have been least proactive on this issue have begun to “take their heads out of the sand”, as one NGO observer put it.

This will intensify after this month’s news that Swiss-based PanEco, which runs the Sumatran Orangutan Conservation Programme in Indonesia, quit the RSPO, the first NGO to do so. PanEco said RSPO has failed to rein in an industry tainted by environmental destruction and human rights abuses

To understand why FMCGs are under increasing pressure to evolve more meaningful goals around palm oil it is useful to look at the history. Palm oil seemed like a godsend when fast-moving consumer goods (FMCG) companies started using it en masse just over a decade ago. Consumers were clamouring for a substitute for dreaded trans fats, which were thought to play a role in coronary disease and were present in many snack foods. Palm oil, squeezed from bright orange, fast-growing palm fruit, was trans-fat free yet...

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RSPO  Palm Oil  supply chains  sustainability  FMCG  environmental destruction  Human rights  carbon bombs  GreenPalm  Greenpeace  deforestation  transparency  traceability 

The Sustainable Supply Chain Summit 2016

October 2016, London

Over 150 leading supply chain, sustainability and sourcing professionals will meet to share insights and practical tips to address key issues such as; human rights, environmental management, lifecycle assessments, supplier partnerships and more

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