Palm oil is derived from the fruit of the African oil palm tree (Elaeis guineensis). There are two types of palm oil: crude palm oil or the extract from the fruit pulp, and palm kernel oil or the extract from its seed. Crude palm oil is primarily used for cooking, while palm kernel oil is used for non-edible purposes because it remains semi-solid at room temperature. Both oils are colourless, odourless, and relatively tasteless which is why they are staple ingredients in kitchens and consumer goods.
Palm oil production also plays a crucial role in supporting rural communities. Compared to other oil crops like sunflower, rapeseed, or soybean, oil palm trees have a higher yield per hectare. This generates employment and economic opportunities for over one million workers, three million smallholders, and countless households globally.
Palm oil is versatile. It is a part of our daily lives, from many of the foods we eat, especially packaged foods, to consumer goods. Beyond enhancing the texture and durability of consumer goods, it plays a vital role in industries like pharmaceuticals and biofuels, contributing significantly to global trade and employment.
Peel back the label and see which everyday items contain palm oil
India is the largest importer and second-largest consumer of palm oil. Its significant import reliance on Indonesia and Malaysia has led to extensive deforestation, posing serious environmental ramifications such as habitat loss for endangered species, soil erosion, and heightened greenhouse gas emissions. Given this substantial impact, India must spearhead efforts to adopt sustainable palm oil practices, not only domestically but also on a global scale. This transformation is crucial in mitigating deforestation and preserving habitats, while also influencing and driving sustainable practices worldwide.
The Government of India, through the National Mission on Edible Oils – Oil Palm (NMEO-OP), aims to increase domestic production of palm oil by 2025-26 to meet a part of the nation’s requirements.
When palm oil is produced sustainably, it's a win-win-win situation. Firstly, it can safeguard our invaluable forests and the wildlife inhabiting them. Secondly, it can ensure fair treatment and improved livelihoods for millions of people. And thirdly, it can increase accountability, transparency, and traceability along the palm oil value chain.
Certification organisations like the Roundtable on Sustainable Palm Oil (RSPO) are crucial in promoting and validating sustainable palm oil practices. Companies that adhere to RSPO’s stringent standards can earn certification, demonstrating their commitment to sustainability.
Big companies adopting sustainable palm oil can set an example for others, creating a ripple effect that can transform entire industries. And guess what? We all play a part, too! By demanding sustainably sourced products and looking for certifications, we're nudging companies in the right direction. It's a small lifestyle change that can make a huge impact around the world.
WWF-India is promoting the uptake of sustainable palm oil in India by adopting a multi-pronged approach and encouraging concerted action among stakeholders, including producers, refiners/traders, consumer goods manufacturers, governments, policymakers, consumers, civil society organisations, and NGOs in bringing about this transition in the Indian industry.
One of the key initiatives in this regard is the Sustainable Palm Oil Coalition for India (I-SPOC). Established in 2018 by the Centre for Responsible Business (CRB), Roundtable on Sustainable Palm Oil (RSPO), Rainforest Alliance (RA), and WWF-India, this coalition brings together diverse stakeholders in the palm oil industry to promote sustainable practices. I-SPOC works to address the challenges of sustainable palm oil production and takes into account the unique characteristics of the sector in India. It focusses on areas like policy, trade linkages, domestic production, and consumer awareness.
The path to sustainable palm oil can be paved with collaboration, transparency, and a commitment to responsible practices. As sustainability becomes increasingly important, companies around the world, including Indian multinationals, are embracing sustainable practices as a core part of their business operations. This shift towards sustainability is driven by the recognition that environmental and social responsibility are not just add-ons, but essential components of long-term success.
To address the environmental impacts of unsustainable palm oil production, companies can adopt solutions such as acquiring sustainability certifications, and becoming a part of industry roundtables and coalitions for sustainable palm oil. These measures help promote positive environmental and social practices in palm oil-producing regions, protecting people, habitats, and wildlife.
