Food retailers must prioritise third-party verification when using responsibly sourced palm oil. This follows the announcement of the European Union’s ‘Green Deal’ in December of 2022.
The emphasis is a new law effort for the union to actively fight contributing to deforestation or forest degradation through the production and consumption of certain products on the European market.
While the text is yet to be formally enforced, companies are encouraged to adhere, and within 18 months of the law being formalised, they will need to comply.
Compliance requires companies to commit and conduct strict due diligence if they export or place palm oil, timber, or any products derived from either in the European market.
“The continued presence of deforestation in key supply chains is a huge concern and has raised the need to increase and improve policies and procedures. As such, the new EU legislation is a positive step in the right direction,” shared Jay Weldon, Business Development Manager at BM TRADA (Timber Research And Development Association).
Due to the complexities of food and commodities supply chains across multiple countries, the European Union’s goal will likely require a global effort. Weldon explained that stakeholders must work together to prioritise sustainable sourcing and production.
Palm oil has had a long-standing negative link with public perception due to its unsustainable sourcing practices, which have devasted the biodiversity in countries where it is grown. However, the use of the product has significantly increased over recent years, partly due to the difficulties of the global oil supply chain. In 2022 alone, two of the world’s largest sunflower oil exporters ceased production due to geopolitical complications. Consequently, suppliers switched from sunflower oil to palm oil.
“Where palm oil is used, having impartial third-party certification in place to prove that a business is playing its part of using a sustainably sourced product is paramount [is important].”
Weldon stated the increasing global concern for damage caused by food and goods produced is the driving force behind the new law. Transparency and credibility become vital for developing sustainable supply chains. Weldon described this process as one where, in every stage of the product cycle, it can be evaluated in terms of its economic, social, and environmental impacts.
When the global vegetable oil supply chain is considered, finding a palm oil alternative is not attainable with the current political climate surrounding other oils. Therefore, the union has prioritised ethical sourcing practices instead.
“Having third-party verification proves that a supply chain operates ethically and ensures traceability of products, ultimately showing customers, stakeholders and the broader public that products will stand up to scrutiny.”
Weldon revealed that sustainable palm oil sourcing must include consumer education regarding its use. He stated that consumers actively avoid all products containing palm oil due to the oil’s negative reputation and lack of consumer knowledge about responsible palm oil sourcing. The Roundtable on Sustainable Oil (RSPO) logo has been created to help consumers quickly and easily locate ethically sourced palm oil products.
