PALM OIL BUYERS SCORECARD - MEASURING THE PROGRESS OF PALM OIL BUYERS As we enter a new decade, are companies finally committed to sustainable ...
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PALM OIL BUYERS MEASURING THE PROGRESS
OF PALM OIL BUYERS
SCORECARD
JANUARY 2020 EDITION: SUMMARY
As we enter a new decade, are companies
finally committed to sustainable palm oil
that respects both people and nature?
Contents
PALM OIL BUYERS SCORECARD: SUMMARY 2
How we measured company performance 3
No excuses: Being pro-environment and pro-people 3
How did companies perform? 3
A new decade: What can be done? 7
PALM OIL: AN INTRODUCTION 9
A wonder crop? 9
Palm oil is here to stay 10
Social and environmental impacts 11
Are there really no substitutes for palm oil? 13
Sustainable palm oil – an achievable reality or an oxymoron? 14
HOW DID WE ASSESS COMPANIES? 17
What were the scoring criteria? 19
ANALYSIS 23
How are companies performing as a whole? 23
What sets the market leaders apart from the laggards? 23
How are companies performing on fundamental action areas? 23
How are companies progressing toward segregated CSPO? 24
HOW DID COMPANIES PERFORM OVERALL? 25
How did the individual sectors and companies
perform overall? 27
WWF DISCLAIMER
How did the retailers perform? 30
WWF is one of the world’s largest and most The information captured in this PDF reflects data
How did the manufacturers perform? 36
respected independent conservation organizations on the scorecard as of 17 January 2020. Please refer
with a mission to stop the degradation of the earth’s to the online scorecard for the most up-to-date data. How did the food service companies perform? 38
natural environment and to build a future in which
humans live in harmony with nature. To compile the scorecard, we asked all the RECOMMENDATIONS 39
panda.org companies to complete a questionnaire. We used
What should companies do? 39
panda.org/palm_oil information that companies provided directly to us,
What should consumers do? 40
on their websites or in their annual reports to RSPO.
We have verified this information where possible, What should governments do? 40
THE WWF PALM OIL BUYERS SCORECARD but have relied on the companies to be transparent, What should the finance sector do? 41
The scorecard assesses manufacturer, food service truthful and accurate in their reporting. WWF
provider and retailer commitments and actions for urges users of the Scorecard to check the data and
ALL EYES ON 2020 AND A NEW DECADE 43
sustainable palm oil and helps build a culture of share any errors found with both WWF and the
relevant company.
BIBLIOGRAPHY 45
transparency around palm oil use.
palmoilscorecard.panda.org/
PALM OIL BUYERS
SCORECARD: SUMMARY
The WWF Palm Oil Buyers Scorecard shows that while some
companies are leading the way to promote sustainability
TEN YEARS AFTER THE FIRST SCORECARD, along and beyond their palm oil supply chains, many others
AND AS WE ENTER A NEW DECADE, are lagging behind, having done little or nothing at all – or
THIS FIFTH SCORECARD REVEALS THAT hiding from responsibility completely.
THERE IS STILL MUCH MORE THAT CAN Palm oil is the world’s most traded vegetable oil, widely used as a cooking oil
AND SHOULD BE DONE TO SUPPORT A and in the manufacturing of many products. But irresponsible production
DEFORESTATION- AND CONVERSION-FREE
can cause deforestation and peatland degradation, leading to the loss of vital
habitats, unique biodiversity and key ecosystem functions, while generating
PALM OIL INDUSTRY. large amounts of greenhouse gas (GHG) emissions and violating the rights
of indigenous people and local communities. Given the immediate urgency
of the issues facing the planet, companies must step up to act immediately to
MUCH MORE MUST BE DONE TO SUPPORT
stop illegal and irresponsible practices and ensure that palm oil is produced
sustainably.
Since the last scorecard was published in 2016, there has been an encouraging
A SUSTAINABLE, DEFORESTATION-FREE
increase in the number of companies joining the Roundtable on Sustainable
Palm Oil (RSPO) as well as committing to source 100% sustainable palm oil.
However, the speed of uptake in commitments and their implementation falls
short of what is needed to counteract the damage caused by irresponsible
PALM OIL INDUSTRY
production. Oil palm expansion within the last 10 years has been far greater
than that of the previous decade – Asia alone added nearly 4 million hectares
of plantations between 2010 and 2017, accounting for nearly 90% of global
expansion during this period. The events of 2019 show that the pervasive
burning of both dryland forests and peatlands for palm oil expansion continues.
Many companies are still not doing enough to support the transition towards a
sustainable palm oil industry. To match the urgency and the actions available
to the most responsible companies, in this scorecard companies were asked
a broader range of questions about the actions they are taking within and
beyond their own supply chains to purchase and support sustainable palm oil.
© WWF-UK
With 2020 already upon us, not one of the companies that pledged to achieve
a deforestation- and conversion-free supply chain has achieved full marks in
the scorecard. Hence, this year’s WWF Palm Oil Buyers Scorecard serves as a
powerful indicator of how far companies still need to go to meet their targets.
1 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 2
HOW WE MEASURED COMPANIES CAN TAKE A RANGE
COMPANY PERFORMANCE OF ACTIONS TO SUPPORT
This edition of the scorecard assessed 173 retailers, NO EXCUSES: BEING PRO- SUSTAINABLE PALM OIL
manufacturers and food service companies from
ENVIRONMENT AND PRO-PEOPLE
© Juergen Freund
Australia, Belgium, Canada, Denmark, Finland,
France, Germany, Indonesia, Ireland, Italy, Actions from companies need to be pro-environment
Malaysia, Netherlands, Poland, Portugal, Singapore, and pro-people, and move beyond minimizing
Sweden, Switzerland, the United Kingdom (UK) and risk of exposure to deforestation within the supply
the United States (USA). chain. There are many actions that companies can
take, and this year’s scorecard has selected some of
The scorecard looks at the basic actions that the core commitments WWF expects to see from
companies can and should be taking to show companies sourcing palm oil, whilst recognizing that
commitment and support for a responsible palm oil more can and should be done.
industry. These include:
Help is on hand for responsible companies. Since The vast majority of companies are also aligning Failure to implement is inexcusable given the
• Join the RSPO and other action-oriented the last scorecard in 2016, more guidance and advice themselves towards sustainable sourcing immediate availability of CSPO credits as a
sustainable palm oil platforms, such as the Palm has emerged. This includes the Accountability expectations – 131 out of 173 companies assessed temporary backstop during the transition of
Oil Innovation Group (POIG). Framework1, a set of common norms and guidance told us that they had some sort of public supply chains to physical CSPO. Twenty-two of 173
• Make an ambitious time-bound commitment to for establishing, implementing and demonstrating commitment to use RSPO CSPO. Fewer, however, companies using CSPO have gone all the way in
only purchase 100% RSPO Certified Sustainable progress on ethical supply chain commitments in the have made commitments which compel immediate sourcing identity preserved or segregated CSPO and
Palm Oil (CSPO) and ideally POIG-verified oil, agriculture and forestry sectors. and meaningful action, as only 117 companies should be commended for doing so.
which ensures it meets the most responsible had committed to use 100 per cent CSPO by
production standards. The questions in this scorecard align with this 2020. The Consumer Goods Forum (CGF), a The report highlights companies that are
• Increase uptake of RSPO CSPO, transition to Framework, and companies are encouraged to refer group representing many of the biggest and most demonstrating global responsibility and
physical supply chains with segregated (SG) to the Framework for guidance on their pathway to influential global companies, has committed to commitment to sustainability and are utilizing CSPO
or identity preserved (IP) oil and support sustainability. achieve zero net deforestation by 2020. Yet this across their entire global operations. Ninety-three
independent smallholders (IS) through the commitment does not appear to have translated in out of 173 companies are ensuring CSPO is used in
purchase of IS credits. to individual company commitments for palm oil. all operating markets. The remaining companies are
• Ensure commitments and actions cover the Of the 53 CGF members featured in the scorecard, inconsistently applying policies to selective operating
entire corporate group, apply to all countries HOW DID COMPANIES only 44 had a public commitment to source 100% countries.
where the group operates and covers all the PERFORM? RSPO CSPO by 2020 or earlier, revealing a lack of
types of palm oil that they use. alignment between collective and individual efforts. The scorecard also revealed that very few companies
• Understand the supply chain with traceability The scorecard reveals that while some companies are Furthermore, only 41 members covered 75% or more are extending their influence over their supply chain
to the palm oil mill and, where necessary, making commendable progress on sustainable palm of their palm oil purchases with CSPO. by holding their suppliers accountable. Only 50 out
plantation level. oil, others, including brands whose products we of 173 companies require their suppliers to have
• Expect suppliers to have a commitment to consume daily, are doing little or nothing at all. While most companies have taken actions to traceability at least to the palm oil mill, and only 46
natural habitat conversion-free (including implement their sustainable sourcing policies, out of 173 require a deforestation-free policy. Fewer
deforestation-free) palm oil. Encouragingly, RSPO membership is becoming the 33% are falling short of fully implementing their still, 14, hit the benchmark requiring the policy to be
• Support on-the-ground action in palm oil norm. Of the 173 companies in the scorecard, all commitments. While 135 companies reported that conversion-free, protecting all natural ecosystems
producing landscapes, such as conservation and but 32 are RSPO members – a sign that the RSPO they had purchased some CSPO, only 72 of the 117 inclusive of forests.
restoration projects and smallholder farmer has been instrumental in getting the industry to be who said they would only purchase CSPO by 2020
sustainability. more open and more involved in finding practical have fulfilled their pledge. Whilst the supply chain
solutions. A further 47 companies were involved data used in the scorecard is from 2018, this shortfall
We also asked companies to support policy action to in other action-oriented platforms such as the is an alarming sign, and one that the scorecard will
tackle deforestation and conversion, and undertake POIG. But simply joining the RSPO isn’t enough – monitor. Overall, the results are disappointing as
public communication and outreach on sustainable companies also need to commit to taking action, and all companies in established sustainability markets
palm oil. then deliver on their commitments. should have 100 per cent certified sustainable palm
oil supply chains.
3 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 4
41 OUT OF 173 COMPANIES DID NOT
EVEN RESPOND TO OUR REQUESTS
FOR INFORMATION, SUGGESTING
A LACK OF WILLINGNESS FOR
TRANSPARENCY AND ENGAGEMENT
ON SUSTAINABILITY
The scorecard reviewed global citizenship,
recognizing actions companies are taking beyond
their supply chain. Encouragingly, 64 companies are
taking such steps, with 48 undertaking investments
in on-the-ground interventions in palm oil producing
landscapes. This sends a strong signal to the palm
oil industry and to governments that companies
are committed not just to removing deforestation
from their supply chains, but also to ensuring the
sustainability of the industry.
Whilst no company scored full marks, a company
that deserves commendation is Ferrero, the only
company to score more than 20 out of 22. EDEKA,
Kaufland Stiftung, L’Oréal and IKEA all score more
than 19. These companies have ensured that only
certified sustainable and traceable palm oil is used in
their supply chains and have gone further to ensure
deforestation- and conversion-free supply chains
while supporting on-the-ground investments to
promote sustainability of the industry.
© WWF-Malaysia / Mazidi Abd Ghani
Despite this promising trend, a worrying finding
of the scorecard is the lack of transparency of
some companies. Forty-one out of 173 companies
either wrote back to state that they were unwilling
to provide information or did not respond to our
requests at all. This signals a lack of commitment
to ensuring the sustainability of the industry.
The absence of information also makes it difficult
to accurately assess the demand for certified
sustainable palm oil and subsequently convince
producers that there is demand for palm oil that is
produced according to the standards of the RSPO.
5 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 6
A NEW DECADE: in the form of the Accountability Framework and traded palm oil consumed in Asia. The availability manufacturers (such as favourite household
WHAT CAN BE DONE? a number of tools that are available to implement of several supply chain options, the ready supply of brands) and food service providers (such as
commitments. Even so, whilst the scorecard reveals CSPO, and the emergence of high quality guidance restaurants and hotels) use RSPO CSPO in
There is an urgent need to stop conversion of forest that some companies are clearly making progress and support tools for responsible actions, means everything they sell – not just their own brands
and other natural ecosystems and to end wildlife and showing the way as we enter a new decade, that there are no longer any excuses for not making – and commit to sustainable, deforestation- and
loss and the abuse of human rights in palm oil many others are far behind. time-bound commitments to sustainable supply conversion-free palm oil.
production. It is now 2020, and time is running chains and for supporting sustainable production.
out to take action before irrecoverable losses occur. Companies headquartered in well-established
Rather than switch to alternative oils, which could sustainability markets, such as Europe and North Whilst palm oil is often perceived as an “invisible
cause even greater environmental and social impacts America, should have by now eliminated all palm ingredient” in countless products, consumers can
than unsustainable palm oil, responsible companies oil within their supply chains that continues to also show their support by demanding sustainable
should make commitments and take actions that contribute towards deforestation and conversion palm oil. Consumers can:
are pro-environment, pro-people and support of other natural ecosystems. Although companies
sustainable palm oil. The questions asked in the located in emergent sustainability markets – namely • Purchase products from companies that have
scorecard are key actions that responsible companies Indonesia, Malaysia and Singapore – may have committed to purchasing only RSPO CSPO.
can and should be taking, and more comprehensive only just started this journey, it is paramount that • Look out for the RSPO trademark on products.
guidance and support for companies now exists they take urgent action, with over half of the world’s • Demand that retailers (such as supermarkets),
© WWF / Richard Stonehouse
7 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 8
PALM OIL: Increase in global palm oil production (2015-2019)
447
AN INTRODUCTION
500
400
300
264
A valuable commodity
that doesn’t have to be destructive 200
59 65 71 74
100
A WONDER CROP? 0 (MT) 76
Million metric
tonnes
2015 2016 2017 2018 2019 2050
From margarine to lipstick, biscuits to candles, 60% of the vegetable oil traded each year. Source: USDA, 2019
chocolate to laundry detergent, palm oil is found in Palm oil is not only extremely versatile – it’s also
an incredible range of everyday household products. very productive, with a yield far greater than that of
Manufacturers prefer it as it blends well with other other vegetable oils, from a far smaller land area. The
oils and can be processed to form products of industry has also helped to create a huge number of PALM OIL IS HERE TO STAY
varying consistencies and characteristics. Beyond jobs, and is an important contribution to many local
PALM OIL IS NOT ONLY EXTREMELY
To help feed the world’s ever-growing population,
the food industry and in household products, palm and national economies.
as well as the increased affluence of emerging
oil is increasingly used as a biofuel in vehicles and as
animal feed. The problems associated with palm oil are therefore
economies like China and India, global demand VERSATILE – IT’S ALSO VERY
not with the crop itself, but with the way it is
for palm oil is forecast to increase from 76 million
tonnes in 20192 to 264–447 million tonnes by
PRODUCTIVE. THE INDUSTRY CREATES
Palm oil’s wide range of uses and relative
affordability has thus earned it the title of the world’s
produced. There is a choice: it can be produced
responsibly, with no deforestation and no conversion
20503. Consequently, palm oil development is now A HUGE NUMBER OF JOBS AND IS AN
most consumed and traded vegetable oil, making up of natural ecosystems. In order for this “sustainable
increasing in Central and Eastern parts of Indonesia,
IMPORTANT CONTRIBUTOR TO MANY
Papua New Guinea, Central and West Africa and
40% of global vegetable oil consumption and over palm oil” to become the norm, companies
purchasing palm oil must support it.
Central and South America. LOCAL AND NATIONAL ECONOMIES.
Palm oil is the world’s most produced, consumed
and traded vegetable oil
41%
40% >60%
OF GLOBAL VEGETABLE OF GLOBAL VEGETABLE OIL OF GLOBAL VEGETABLE
© James Morgan
OIL PRODUCTION CONSUMPTION OIL TRADE EACH YEAR
(Source: USDA, January 2020)
9 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 10
IRRESPONSIBLE PALM OIL PRODUCTION
HAS LED TO WIDESPREAD DESTRUCTION
OF RAINFORESTS AND WILDLIFE LOSS,
AND HAS OFTEN COME AT THE EXPENSE
© naturepl.com / Anup Shah / WWF
OF THE WELL-BEING OF LOCAL COMMUNITIES.
The conversion of forests and peatland to palm babies being at risk of being born prematurely and
oil plantations releases large quantities of carbon with low birth weights, millions of children are
SOCIAL AND dioxide that, in turn, accelerates climate change. expected to miss school, resulting in lifelong physical
ENVIRONMENTAL IMPACTS The industry practice of draining and converting and cognitive damage6.
has led to widespread destruction of rainforests, peatland forests is especially damaging to climate
The predicted growth in demand causing the loss of habitats of threatened and mitigation efforts, as these “carbon sinks” store more The expansion of oil palm production areas has also
for palm oil has raised concern endangered species including orangutans, carbon per unit area than any other ecosystem in often been at the expense of the rights and interests
that the scenario for potential elephants and tigers. In addition, the conversion the world. Fires used to clear forest have created of local communities and indigenous peoples7,8.
biodiversity loss and carbon from forests to oil palm plantations can also air pollution across Southeast Asia on numerous This often takes the form of land grabs, forced
emissions attributed to palm oil negatively impact adjacent habitats through occasions. The 2015 Indonesian fires contributed displacement, harassment, criminalization and the
production will mirror those that have fragmentation, edge effects and pollution, roughly 1.75 billion metric tons of carbon dioxide loss of land that would otherwise have been used for
already been experienced to date. which can also result in a dramatic reduction equivalent (CO2e) to global emissions5. This is food, medicine and provision of other local services9.
Oil palms grow best in low-lying, hot, in both biodiversity4 and ecosystem services. almost equal to Indonesia’s annual economy-wide Conflicts arising from the employment conditions
wet, tropical areas, which coincides with Irresponsible expansion has also threatened emissions. The United Nations warned that forest of plantation workers and discrimination against
the range of more than two-thirds of the world’s freshwater ecosystems and caused soil and air fires in Indonesia were putting nearly 10 million smallholders have also cast shadows on the sector10.
biodiversity. Clearing for oil palm plantations pollution. children at risk from air pollution. In addition to
11 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 12
ARE THERE REALLY NO means that it is not always possible to switch it for that new plantings do not cause deforestation and
SUBSTITUTES FOR PALM OIL?
an alternative without compromising the product instead protect and maintain both High Carbon
4,420
quality. For companies to be responsible, in the long Stock (HCS) and High Conservation Value (HCV)
The projections of increased global demand for term it is better to work with the palm oil industry areas, among many other commitments12. Today the
vegetable oil and what this means for land use are (and other vegetable oil sectors) to shift them to organization has more than 4,400 members from
alarming, and there needs to be a careful assessment sustainability rather than to try to boycott the use of around the world. By August 2019, nearly 15 million
on global vegetable oil reliance in general. However, their products. tonnes of CSPO was being produced each year –
about 19% of global production13.
switching between vegetable oils is not a long- RSPO members
19%
term solution to the challenges faced. Oil palm is
by far the most productive vegetable oil presently REPLACING PALM OIL WITH OTHER However, certification on its own cannot solve all
produced at an industrial scale, producing about TYPES OF VEGETABLE OIL WOULD the environmental and social problems caused by
irresponsible palm oil production. For palm oil to
41% of all vegetable oil (such as sunflower, soybean
or rapeseed oil) on just over 10% of all the land used MEAN THAT LARGER AMOUNTS OF be truly sustainable, it needs to be grounded in a
to produce oil crops11. Hence, replacing palm oil with LAND WOULD NEED TO BE USED, of global palm-oil supportive and enabling policy framework, with
responsible land use planning and a sustainable
RISKING THE CONVERSION OF MORE
other types of vegetable oil would mean that much
production is RSPO landscape approach.
larger amounts of land would need to be used. This
could unintentionally displace the effects of both FORESTS INTO AGRICULTURAL LAND. certified
deforestation and habitat conversion to other parts For this to be a reality, companies can and should
SUSTAINABLE PALM OIL - AN ACHIEVABLE
of the world. Moreover, the properties of palm oil cover 100% of their palm oil purchasing with RSPO
CSPO; commit and take action to ensure that their
REALITY OR AN OXYMORON? supply chains are free from deforestation and
Land use of oil crops relative to yield When palm oil is produced, traded and consumed
conversion of natural ecosystems, free from peatland
degradation and free from exploitation; and take
responsibly, this is commonly referred to as
Oil palm produces 41% of all
actions to support a sustainable industry. They
“sustainable”. It is possible for the palm oil industry
should participate in action-oriented sustainability
to be sustainable by halting conversion of natural
vegetable oil (such as sunflower,
initiatives and strive to invest projects on the ground
ecosystems including forests, protecting and
such as supporting smallholders to adopt responsible
restoring landscapes, and ensuring production
soybean and rapeseed oil) on
practices and implementing conservation and
59%
benefits both people and nature. How?
reforestation in affected production areas. It is
just 10% of all the land used to
important that those purchasing palm oil, and those
Other WWF believes that one of the most important ways
who have benefited from the production of palm oil,
vegetable oil is for companies to join the RSPO and for those who
produce oil crops
embrace their ‘shared responsibility’ for ensuring the
produce palm oil to follow the RSPO standard and
41%
industry is sustainable.
guidance.
Companies should also use the Accountability
Palm oil WWF co-founded the RSPO in 2004 to bring the
Framework (AFi) as a reference for best practice.
whole palm oil industry – from growers, through
Additionally, companies need to collaborate
to traders, refiners, manufacturers and retailers
and share best practices – not just keep them to
– together with NGOs and the finance sector to
themselves. They also need to support government
collaborate to make palm oil more sustainable.
policies that enable sustainable production and
RSPO certification is the easiest way for companies
100% sustainable imports. For more information on
in the global palm oil industry, whatever their size or
the vital role of governance, see page 40.
resources, to show that they are acting responsibly.
WWF strongly urges the industry to produce RSPO-
certified sustainable palm oil – and retailers and
90% 10% brands to buy it. In 2018, the RSPO strengthened
its Principles and Criteria (P&C) to include the
Other vegetable oil plantations (such as sunflower, soybean or rapeseed oil) Palm oil plantations prohibition of new plantings on peat, a ban on the
Source: USDA, January 2020 use of fire within RSPO certified units, a requirement
13 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 14
PALM OIL DOESN’T HAVE TO BE
DESTRUCTIVE - IT CAN BE GROWN
RESPONSIBLY, PROTECTING NATURE
AND BENEFITING PEOPLE
© WWF-Malaysia / Mazidi Abd Ghani
15 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 16DENMARK
HOW DID
SWITZERLAND
SWEDEN
GERMANY
POLAND
WE ASSESS THE NETHERLANDS
BELGIUM
FINLAND
COMPANIES? FRANCE
UNITED KINGDOM
CANADA
The scorecard assesses 173 companies on the USA IRELAND
commitments they have made, and the actions they
have taken, to:
PORTUGAL ITALY
• ensure their supply chains are sustainable and
free from the conversion of natural ecosystems
including forests, and
• support a responsible and sustainable palm oil
industry beyond their own supply chain SINGAPORE
This includes actions such as joining the RSPO and
MALAYSIA
action-oriented industry sustainability platforms;
INDONESIA
sourcing RSPO CSPO; taking responsibility for markets, the scoring system
sustainability at the group level and for all global made allowances for the
operations; commiting suppliers to deforestation- transition to a physical
and conversion-free sourcing and a supply chain supply chain model by
that is traceable to known source; and investing in awarding points for any AUSTRALIA
sustainability actions on-the-ground in palm oil supply chain model including
producing landscapes. RSPO Book and Claim “credits”.
The scorecard looks at some of the basic actions
that companies can and should be taking to show THE SCORECARD ASSESSES
commitment and support for a responsible,
conversion- and deforestation-free palm oil
industry. The list of questions we have used in this 1. COMPANY COMMITMENTS
scorecard is inclusive but not exhaustive, with a AND ACTIONS TAKEN TO
focus on deforestation- and conversion-free. Further
guidance on commitments and actions can be found ENSURE THEIR OWN PALM OIL
in the Accountability Framework. With no company SUPPLY CHAIN IS SUSTAINABLE AND FREE
Companies were assessed using data collected by and sent to all companies. Companies were asked
FROM DEFORESTATION AND NATURAL
scoring full marks, there is room for improvement
for all in 2020. the RSPO, submitted by its member companies to provide supporting evidence for other relevant
ECOSYSTEM CONVERSION through its 2019 Annual Communication of Progress information that they might include and were
The scorecard includes companies headquartered (ACOP) process that covers CSPO purchases made expected to be transparent, truthful and accurate in
in Asian markets – namely Indonesia, Malaysia and in 2018. A questionnaire was pre-populated with their reporting.
Singapore – which are considered to be emergent 2. COMPLEMENTARY ACTIONS TAKEN information from the RSPO ACOP (where available),
sustainability markets where demand and action
TO PROMOTE SUSTAINABILITY BEYOND RSPO membership records and company websites,
on sustainability has to date been very low. In
order to support “first movers” in these emergent THE COMPANY’S OWN SUPPLY CHAIN
17 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 18WHAT WERE THE SCORING CRITERIA?
All 173 companies were scored out of a possible total of 22 points, based on the performance indicators TOTAL OF 22 POINTS:
below. The first 16 points relate to actions the company has taken in relation to its own supply chain, and the 16 POINTS FOR OWN SUPPLY CHAIN,
remaining six points relate to actions that support sustainable palm oil beyond the company’s own supply
chain.
6 POINTS FOR BEYOND OWN SUPPLY CHAINS
OWN SUPPLY CHAIN TOTAL 16 POINTS
3
0.5 points for making a public commitment to buy only CSPO
Commitments to buying RSPO certified sustainable palm oil (CSPO) 0.5 points for making a commitment to achieve this by 2020 or earlier
[1 point in total]
Purchasing RSPO CSPO is the simplest action a company can take
0.25 points if commitment covers each type of palm oil:
towards cleaning its own supply chain and incentivizing more sustainable (a) Crude and refined palm oil (CPO) (b) Palm kernel oil (PKO) (c) Palm kernel
production. There is still not enough demand to meet the supply of CSPO. expeller (PKE) (d) Palm oil derivatives (POD)
Companies should be 100% RSPO certified for all palm oil purchased and [1 point in total] (if only 1-3 of these 4 categories are applicable the score is weighted)
for the entire group (inclusive of subsidiaries, affiliates, joint ventures and POINTS 1 point if commitment applies to all countries in which a company operates,
majority holdings). or (if applicable) to the entire corporate group
For crude and refined palm oil (CPO) and palm kernel oil (PKO):
How much CSPO companies actually use for each type of palm oil SEGREGATED (SG) OIL + IDENTITY PRESERVED (IP) OIL
(CPO, PKO, POD) + INDEPENDENT SMALLHOLDER CREDITS
1 point for >0-24.9%
2 points for 25-74.9%
Shifting supply chains14 to physical supplies of CSPO brings greater
2.5 points for 75-99.9%
transparency to that supply chain and it requires companies along the supply 3 points for 100%
chain to build a relationship with suppliers. Segregated and identity
10
MASS BALANCE (MB) OIL BOOK & CLAIM (CREDITS)
preserved CSPO also allow brands to show that the actual palm oil they use
0.25 points for >0-49.9% 0 points
in their products is from sustainable sources. Therefore physical supply chain 0.5 points for 50-99.9%
models are awarded more points than Book & Claim, with an exception for 1.5 points for 100%
purchasing Independent Smallholder credits to support smallholders who
may be unable or may struggle to connect to physical supply chains, and for For palm oil derivatives (POD):
companies headquartered in Asia where markets for sustainability are less
SEGREGATED (SG) OIL + IDENTITY PRESERVED (IP) OIL
mature. + INDEPENDENT SMALLHOLDER CREDITS
1 point for >0-24.9%
Some types of palm oil (such as complex derivatives or palm oil that is POINTS 2 points for 25-74.9%
2.5 points for 75-99.9%
produced by independent smallholders) are more difficult to source from
3 points for 100%
physical supplies of CSPO. This is a reason why there remains a need to have a
Book & Claim system. The Book & Claim system is also valuable to ‘kick start’
MASS BALANCE (MB) OIL BOOK & CLAIM (CREDITS)
transformation by making it easy and cheap for brands to support growers that 0.25 points for >0-49.9% 0 points for >0-49.9%
are RSPO certified. For derivatives (POD), we therefore use a scoring system 0.5 points for 50-99.9% 0.25 points for 50-99.9%
that is more lenient towards Mass Balance and more inclusive of Book & Claim. 1.75 points for 100% 1.25 points for 100%
For companies headquartered in Asia, For all companies:
Total is calculated by:
irrespective of supply chain model:
Total supply chain model score * (3 types of palm / number of palm oil types used)
+1 bonus point for 100% RSPO CSPO coverage of all palm oil, if applicable For each type of palm oil: +1 point if 100% of all purchased palm
-1 transparency penalty for reporting percentages and not volumes, if applicable 1 point for >0-24.9% oil is certified, by any supply chain
2 points for 25-74.9% system
2.5 points for 75-99.9% -1 point if the company only reported
3 points for 100% percentages and not quantities
19 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 201
OWN SUPPLY CHAIN *Continued
Scope to which the quantities of CSPO relate 0 points if only some of the countries in which a company
or (if applicable) group operates
Multi-national companies and groups have an obligation to ensure that they 0.5 points if a group exists but the scope only relates to all countries
in which the company operates
act on their sustainability commitments wherever they use palm oil.
1 point if the scope relates to all countries in which the group (or company,
POINT if not part of a group) operates
1
Whether or not suppliers are expected to have a no deforestation, 0.5 points if supplier commitment is deforestation-free but does not meet the
no conversion commitment Accountability Framework definition for conversion*-free
1 point if supplier commitment is deforestation- and conversion-free
Companies serious about ensuring supply chain sustainability must extend *Conversion is a change of a natural ecosystem to another land use or profound
their commitments to their suppliers. In so doing, they also build greater change in a natural ecosystem’s species composition, structure or function.
Deforestation is one form of conversion (the conversion of natural forests).
influence for sustainability over their own supply chain and beyond.
POINT
1
Whether or not suppliers are required to purchase only palm oil
that is traceable
Whilst traceability alone does not guarantee sustainability, by 1 point if suppliers are required to be traceable to mills or plantation
understanding their own supply chain, companies can confirm whether it
is sustainable and/or provide influence and support to this end, and can
extend support for sustainability beyond their own supply chain.
POINT
2
BEYOND OWN SUPPLY CHAIN TOTAL 6 POINTS
Membership of action-oriented sustainable palm oil platforms 1 point for being an RSPO member
These “platforms” need to be complementary to the RSPO and go beyond 1 point for being a member of the POIG or other* action-oriented sustainable palm
oil platforms
just membership and commitments for a company’s own supply chain, by
requiring company participation with demonstrable action intended to *For example: Acceptable groups include, but are not limited to, RSPO committees
reach beyond their own supply chains to support a responsible, sustainable and working groups, the Palm Oil Transparency Coalition (POTC), and the High
4
palm oil industry POINTS Carbon Stock Approach (HCSA).
On-the-ground investment in palm oil producing landscapes with
pro-sustainability measures 4 points for any of the following actions:
Companies should move their commitments beyond mitigation of (a) supporting smallholder producers
deforestation and sustainability risk, to an approach that addresses past, (b) protecting and restoring forests
(c) supporting landscape/jurisdiction approaches
current and potential future deforestation and conversion caused by
(d) conservation projects
perverse market signals, and promotes sustainable production. POINTS
21 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 22ANALYSIS
Transparency
A worrying finding of the scorecard is the lack of Supplier Accountability
transparency of some companies. About a quarter
of the companies we contacted did not even engage
The scorecard also revealed that less than a third of
companies are extending their influence over their
ONLY 58% OF THE 9 MILLION TONNES
HOW ARE COMPANIES PERFORMING with us to provide information for the scorecard. supply chain by holding their suppliers accountable. OF PALM OIL DECLARED CUMULATIVELY
AS A WHOLE? Formal public commitments and transparency creates Forty-six of the 173 assessed companies require a BY THE COMPANIES IS CERTIFIED, AND
accountability for companies and provides them with deforestation-free policy of their suppliers. Even
At the start of 2020, the deadline year by which the impetus needed to examine their supply chains fewer – 14 – required the policy to be conversion- APPROXIMATELY HALF OF THE COMPANIES
many companies pledged for their supply chains and put in place actions and policies that promote the free, protecting all natural ecosystems inclusive COMMITTED TO 100% RSPO CSPO BY 2020
HAD ACHIEVED THIS IN 2018.
to be deforestation-free, this scorecard reveals that sustainability of the palm oil industry as a whole. It of forests. Only 50 out of the assessed companies
while some companies are making commendable also allows customers and other stakeholders to see require traceability at least to the palm oil mill, and
progress on sustainable palm oil, others – including how well companies are doing and to understand how only 18 companies are tracing their palm oil to both
brands whose products we consume daily – are quickly the industry is progressing. the mill and plantation.
doing little or nothing or at all.
Commitments to Sustainable Palm Oil
Only three-quarters of companies had a public
Beyond Supply Chain Investments
Over a quarter of companies are undertaking
HOW ARE COMPANIES PROGRESSING
WHAT SETS THE MARKET LEADERS commitment to source 100% RSPO CSPO; this is investments in on-the-ground actions in palm TOWARD SEGREGATED CSPO?
APART FROM THE LAGGARDS? a basic commitment that all can take to motivate
producers to move towards sustainable methods
oil producing landscapes, and over a quarter are
involved in action-oriented platforms (besides
Beyond this pessimistic story there are companies
that are progressing well on the journey to
Whilst no company scored full marks, companies of production. This year is a crunch year by which RSPO membership alone) to support a responsible sustainable palm oil.
that deserve commendation include Ferrero, many have committed to be deforestation-free, industry. It is encouraging that these companies
EDEKA, Kaufland, L’Oréal and IKEA as the only yet disappointingly only two-thirds of companies are starting to take actions beyond their own supply Commendably, a total of 14 companies including
companies to score 19 or more out of 22. These committed to 2020 as their deadline to be 100% chain to share responsibility for a sustainable Bahlsen and Migros have proven that it is possible
market leaders at the top of the scorecard rankings certified. industry, and an example that other companies can to source 100% RSPO segregated (SG) CSPO for all
have placed sustainable palm oil at the top of their follow. their purchasing of CPO.
business agenda, by making and following through Uptake of Sustainable Palm Oil
on public commitments to embed sustainable palm Despite 10 years of asking companies to buy RSPO Our analysis of the scores also found that there was
oil in their supply chains, as well as investing time CSPO, and whilst there has been commendable Over the past three scorecards, the total very little variation in average scores across large
and resources beyond their own supply chain to progress made by many, overall it is highly reported volume that is RSPO CSPO and small palm oil buyers. Companies purchasing
support a responsible industry. disappointing that many companies are still not 100% for assessed companies has increased less than a thousand tonnes of palm oil displayed
covered for all their purchases. In our review of 2018 steadily from 29% (2013) to 39% (2016) average scores of 12, with Ayam Brand the highest
At the other end of the scale, the scorecard revealed purchasing data for this scorecard, less than half of to 58% (this scorecard): an encouraging ranking at 15.5 points. This is comparable to some of
a large number of companies that have done little companies declared that 100% of palm oil purchases albeit slow uptake trend. Nevertheless, the largest palm oil purchasers, those buying greater
or nothing at all to ensure the sustainability of their are RSPO certified. The lack of urgency to set a target there needs to be a large concerted than 1 million tonnes, who achieved average scores
own supply chain or to promote sustainability within date by 2020 is reflected by the modest uptake of effort by companies if they are to of 14, including Unilever, the top scorer for the
the palm oil industry. RSPO CSPO. For instance, just 58% of the 9 million achieve 100% RSPO CSPO by 2020. category with a score of 14.75.
tonnes of palm oil declared cumulatively by the
companies is certified.
HOW ARE COMPANIES PERFORMING
ON FUNDAMENTAL ACTION AREAS? RSPO Membership
Of the 173 companies, all but 32 are RSPO members.
Whilst the average score for scorecard respondents While this is a key indicator that the RSPO has been
was 12.6 points out of 22, encouragingly companies instrumental in getting the industry to be more open,
were found to be taking actions both in their own 50 companies did not submit their ACOP report – a
supply chain and beyond their own supply chain, basic RSPO membership requirement – and are
developing the overall industry for sustainable palm thus still lacking transparency in their efforts to
oil. On average, companies who responded scored progress towards 100% RSPO CSPO and support the
9.3 out of 16 for their own supply chain and 2.7 out wider vision of the RSPO and its members to “make
of 6 for actions beyond their own supply chain. sustainable palm oil the norm”.
23 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 24HOW DID COMPANIES 27% 46 companies require their suppliers to
have a deforestation-free policy
PERFORM OVERALL? 132 8% 14 companies also require the
policy to be conversion-free
companies
41 companies did not respond responded
131
companies are
commited to
10%
100% RSPO
CSPO
117 18 companies require
traceability to mills and
companies plantations
have a target to
29%
achieve this by
173
2020 or earlier
11
Food Service
108
Manufacturers
54
Retailers
50 companies
require traceability
to mills
294,368 MT 8,075,206 MT 577,254 MT
Total PO Total PO Total PO
96%
Usage
282,203 MT 54% Usage
4,388,721 MT 94%
Usage
540,417 MT
28%
RSPO CSPO RSPO CSPO RSPO CSPO
Usage Usage Usage COMPANIES
Score distribution: Total PO used by supply chain model:
48 companies are investing in
on-the-ground actions in palm
9 %
Leading the Way 16.3% 41.8% oil producing regions
Segregated/ Uncertified
27%
Identity Preserved (3,735,487MT)
12% Well on the Path (1,462,120MT)
0.3%
39% Middle of the Pack Independent
Smallholder
47 companies are members of
action-oriented sustainability
Certificates platforms (excl. RSPO
17% Lagging Behind (30,112MT) membership)
27.2% 14.3%
24% Non-respondent Mass Balance
(2,435,380MT)
Book & Claim
(1,283,729MT) 82%
141 companies
are RSPO members
25 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 26HOW DID THE INDIVIDUAL SECTORS *Continued
AND COMPANIES PERFORM OVERALL?
Retailers Score Table
27 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 28*Continued *Continued
LEADING THE WAY WELL ON THE PATH MIDDLE OF THE PACK LAGGING BEHIND NON-RESPONDENT
HOW DID THE RETAILERS PERFORM?
54 45 41 44 31
companies responded are RSPO are buying are buying
assessed members certified 100% certified
sustainable sustainable
palm oil palm oil
Retailers made up 31% of all those assessed under Perhaps unsurprisingly, given the large number of
the scorecard with a response rate of 83% which suppliers managed by retailers, only seven retailers
was the highest of any sector. The average score required suppliers to have a zero deforestation
for all retailers that participated in the survey was policy. This was by far the worst performing sector
12.9 with retailers scoring higher overall than other of all with only 13% meeting this requirement
sectors. The top retailers, all scoring over 18 points, compared to the average of 27%. The retail
were EDEKA, Kaufland, IKEA, Marks and Spencer sector performed similarly poorly with requiring
and ALDI South. Of the 16 points available under traceability, with 15% requiring traceability to mills,
the own supply chain section, respondent retailers and none requiring traceability to plantations.
scored an average of ten points. Retailers again However, the fact that some of the retailers have
outperformed other sectors with commitments made these commitments is an encouraging example
to purchase 100% RSPO CSPO with 85% having that others in the sector can follow.
commitments and 80% having 2020 commitments.
Retailers scored above average in terms of their
A total of 577,254 tonnes of palm oil has been actions beyond their own supply chain with 44% of
captured by the scorecard that is attributable to those assessed claiming to have taken some actions.
the retail sector, representing just 6% of the total 76% of retailers were members of the RSPO and 35%
captured under the scorecard. In line with overall were members of some other platform, again in line
trends, retailers did not perform as well in meeting with overall averages. Retailers also followed the
their commitments; 80% of retailers declared that average in terms of those investing in on-the-ground
they were using some RSPO CSPO but only just over initiatives with just under a third reporting that they
half of those with a commitment were using 100% do so.
RSPO CSPO.
29 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 30*Continued
Manufacturers Score Table
Ireland
31 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 32*Continued *Continued 33 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 34
*Continued
HOW DID THE MANUFACTURERS PERFORM?
108 80 93 82 41
companies responded are RSPO are buying are buying
assessed members certified 100% certified
sustainable sustainable
palm oil palm oil
Consumer goods manufacturers (CGM) represent in RSPO CSPO usage relative to 2016. Given the
the majority sector in the scorecard, comprising volume of palm oil captured by the manufacturing
62% of the assessed companies. 74% of the sector, this is a very disappointing finding. Some
manufacturers we contacted responded to our manufacturers anecdotally commented that their
questionnaire, a response rate in line with the other investment has been strategically switched to
sectors. on-the-ground actions with their suppliers, which
may in turn have affected supply chain investment
The average score for all manufacturers was 11.9, choices particularly for physical, segregated
which is aligned with the average score of the other volumes.
sectors. Leading the pack in the manufacturing
sector are Ferrero, L’Oréal, Bahlsen, Mars and In more encouraging news, manufacturers are the
FrieslandCampina, which all scored over 17 points. top performers in taking action to secure their own
supply chains with 32% of companies requiring
Of the 16 points available under the “own supply suppliers to have zero deforestation policies
chain” section of the scorecard, respondent (versus the scorecard average of 27%). CGMs also
manufacturers scored nine points on average. In outperform the average on traceability, with 35%
relation to commitments to purchase 100% RSPO requiring traceability of their palm oil supply chain
CSPO, manufacturers performed below average. to at least mills. Meanwhile, out of the 18 scorecard
Only 70% of the assessed CGMs have commitments companies that require traceability to plantations,
to source 100% CSPO while only 63% have 16 of those are from the manufacturing sector. This
commitments to source 100% CSPO by 2020. could reflect the sector’s closer relationship with
the production and trade end of the supply chain,
The CGM companies in the scorecard claimed they and thus their ability to effect positive change
use a total of 8,075,206 tonnes of palm oil, which on-the-ground. Manufacturers scored in line with
is 90% of the total volume of palm oil captured by the scorecard average related to actions “beyond
the scorecard. Similarly, 84% of the total 5,211,341 their own supply chain” with 36% of those in the
tonnes of CSPO captured under the scorecard were scorecard claiming to have taken some actions
purchased by this sector. 76% of the manufacturers in that regard. The manufacturing sector has the
assessed in the scorecard declared that they use highest proportion of RSPO membership in the
some RSPO, but only 38% use 100% RSPO CSPO. scorecard, with 93 of the 108 scorecard CGMs (86%)
This rate of 100% CSPO usage by manufacturers being RSPO members. Additionally, 25% of the
is far lower than that of the retailers and food CGMs are members of some other action-oriented
service companies and represents a drop since platform, slightly below the scorecard average.
TAT HUI FOODS PTE LTD Singapore our 2016 scorecard which had revealed that 42% Manufacturers followed the average again in terms
of manufacturers were using 100% RSPO CSPO. of those investing in on-the-ground initiatives with
Ziaja Poland Conversely, the other sectors reported an increase just under a third reporting doing so.
LEADING THE WAY WELL ON THE PATH MIDDLE OF THE PACK LAGGING BEHIND NON-RESPONDENT
35 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 36HOW DID THE FOOD SERVICE COMPANIES PERFORM?
Food Services Score Table
11 7 7 9 6
companies responded are RSPO are buying are buying
assessed members certified 100% certified
sustainable sustainable
palm oil palm oil
Food service companies represent just 6% of all the CSPO for their palm oil supply chains. While this
companies in the scorecard and comprise just eleven is an overall disappointing finding that is in line
companies in total. Less than two-thirds of the food with other sectors, it should be noted that this
service companies responded to our questionnaire, represents a significant step forward by the food
which is the lowest response rate of the three sectors service sector since 2016, when our scorecard
assessed. revealed that only 25% were fully covering their
purchases with sustainable palm oil. However, there
With an average score of 9 for respondent are questions regarding how accurately this sector –
companies (7.3 if including non-respondents), the and to a certain extent all the sectors – have been at
food service companies scored the lowest of the quantifying their actual dependence on palm oil via
sectors and is the only sector to pick up less than their declared volumes.
half of the points available. McDonald’s leads the
food service companies with a score of 13.75, placing Only four of the food service companies assessed
it in the middle of the pack in terms of rankings. in the scorecard require their suppliers to have a
Yum! Brands and Sodexo trail further behind the zero deforestation policy. The food service sector
pack as the next two highest scoring food service performed similarly poorly in the area of traceability.
companies. Restaurant Brands International only Of the 11 companies included in the sector, only four
scored 3 points, and – whilst classified as a retailer companies require traceability to mills and only two
in the scorecard, it is worth mentioning alongside require traceability to plantations.
LEADING THE WAY WELL ON THE PATH MIDDLE OF THE PACK LAGGING BEHIND NON-RESPONDENT this sector as they are a large operator of fast food
restaurants including Burger King and Tim Hortons. Food service companies scored poorly compared
to others in terms of their commitments to taking
Of the 16 points available under the “own supply action “beyond their own supply chains” with only
chain” scoring section, respondent food service one of those assessed claiming to have done so. The
companies scored an average of eight points. Over average score for respondent food service companies
three quarters of the food service companies have in this section was 1.4 compared to the overall
commitments to source 100% RSPO CSPO, and over average of 2.7. Two-thirds of food service companies
half have commitments to source 100% CSPO by are members of the RSPO, but only one, Yum!
2020. Brands, is a member of another action-oriented
platform or is investing in on-the-ground initiatives.
Food service companies assessed in the scorecard
claim to use 294,368 tonnes of palm oil - this
represents just 3% of the total palm oil usage
captured under the scorecard. In relation to the
proportion of this palm oil that is certified, 82%
of food service companies declared that they were
using some RSPO CSPO. Meanwhile, 55% of
companies say they have achieved 100% RSPO
37 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 38RECOMMENDATIONS • Ensure commitments and actions cover the
entire corporate group, apply to all countries
WHAT SHOULD CONSUMERS DO?
Customer advocacy is the best way to instigate
• Adhere to Organisation for Economic Co-
operation and Development (OECD) agriculture
where the group operates and cover all the types long-term change. Brands care about what their guidance
WHAT SHOULD COMPANIES DO?
of palm oil that they use customers think, so we need to ask what they source
and where they source from to make sure they • Be an active advocate globally for deforestation-
All companies that use palm products must ensure • Participate in other action-oriented initiatives commit to credibly certified sustainable palm that and conversion-free commodities, as one
that their own supply chain is sustainable and and platforms for sustainable palm oil that doesn’t cause deforestation or conversion, or harm element to implement the Paris Agreement on
free from deforestation and conversion of natural complement the RSPO. Cooperate and share wildlife or communities. You can: Climate Change, the Sustainable Development
ecosystems. They also have a responsibility and a information and ideas to speed up progress for Goals and the Convention on Biological
role to play in supporting a responsible, sustainable all • Use this scorecard to see how well your favourite Diversity (CBD)
industry that is free from deforestation and supermarkets, manufacturers and food service
conversion. Companies need to transition from • Support on-the-ground action in palm oil companies are doing on palm oil • Work together with the industry to forge
simply de-risking their own supply chain, towards a producing landscapes, such as conservation national alliances and draft country-level
pro-environment pro-people approach. and forest restoration projects and smallholder • Contact the brands through their social media initiatives towards CSPO commitments that
farmer sustainability channels and ask them to make commitments, prevent deforestation and ecosystem conversion
Companies should: join RSPO and purchase 100% physical certified
• Support policy action in producer and consumer sustainable palm oil
• Join the RSPO and actively contribute to its countries to tackle deforestation and conversion What should governments in consumer
vision of making sustainable palm oil the norm and to create and enforce legislation requiring • Share the scorecard on social media countries do?
legal and sustainable palm oil production
• Make an ambitious public time-bound • Undertake public communication and outreach • Add your voice to the 2020 voice of the planet • Make laws and policies that will mean that only
commitment to buy only RSPO CSPO and ideally on sustainable palm oil calling for urgent action and make a palm oil independently verified sustainable palm oil –
POIG-verified oil pledge that meets the standard set by RSPO, POIG,
• Use the Accountability Framework to ensure ISCC and/or Rainforest Alliance – is entering
• Increase uptake of RSPO CSPO including adherence to the above their markets by 2020 at the latest
transitioning to physical supply chains with
segregated (SG) or identity preserved (IP) oil • Voice support for a global push for a New Deal
WHAT SHOULD GOVERNMENTS DO? • Review policies, subsidies and overseas
and supporting independent smallholders (IS) for Nature and People in 2020. Companies Governments have an important role to play in development aid to promote sustainable palm
through the purchase of IS credits can promote it by communicating relevant halting deforestation, both in producer countries oil and remove harmful incentives that may
commitments and actions they are undertaking and consumer countries. promote irresponsible or even illegal palm oil
• Source only from suppliers that adopt and in relevant fora and by joining Business for
implement a deforestation- and conversion-free Nature and engaging in its events What should governments in producer • Establish public procurement policies that
policy countries do? require consumer goods companies and retailers
to buy identity preserved certified palm oil,
• Understand the supply chain, requiring
suppliers to have traceability to the palm oil mill
THE SUPPLY OF CSPO HAS GROWN • Create laws and policies that will end
deforestation and ecosystem conversion and
which can be traced back to the mill – and,
where necessary, the plantation – to monitor
– and where necessary the plantation level – to BY OVER 20% SINCE THE LAST SCORECARD ensure the sustainability of the palm oil industry and manage environmental and social risk, and
monitor and manage environmental and social
risk
WAS PUBLISHED IN 2016, MEANING THAT • Support public-private partnerships aimed at
set ambitious targets for doing so
THERE ARE CERTIFIED SUSTAINABLE OPTIONS ending deforestation and ecosystem conversion • Be more active in advocating for deforestation-
• Ensure transparency by reporting on palm
AVAILABLE FOR ANY COMPANY. HENCE, and conversion- free supply chains (following on
oil sources and usage, as well as progress and • Sign and implement the New York Declaration EU work on Deforestation Free Supply Chains,
actions at least annually THERE IS NO EXCUSE FOR ANY BRAND on Forests the Amsterdam Declaration and New York
TO NOT BE USING 100% CSPO TODAY. Declaration on Forests)
39 WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY WWF-PALM OIL BUYERS SCORECARD -JANUARY 2020 EDITION: SUMMARY 40You can also read
