While global companies like PepsiCo and McDonald's are pledging to work towards acquiring 100% of their palm oil supplies from sustainable sources, companies in the areas where the most palm oil is produced seem to be far less focused on that goal. Some cite cost and a lack of demand from consumers as factors keeping them from pursuing a sustainable palm oil strategy, according to WWF Malaysia.
A new Palm Oil Buyers' Scorecard from WWF surveyed companies - all of them household brands - headquartered in Singapore and Malaysia on their palm oil sustainability commitments. Only 16 of the 47 companies surveyed disclosed any information, and just two of those have announced commitments to sourcing 100% certified sustainable palm oil, writes the Guardian. These two companies, Denis Asia Pacific and Wildlife Reserves Singapore Group, have committed to 100% sustainable sourcing by 2018 and 2022 respectively.
Denis Asia Pacific, which uses certified sustainable palm oil across all its Ayam Brand food products containing palm oil as an ingredient, was the overall top scorer. While the brand's total consumption of palm oil is limited, it is possible to make sustainable choices even when manufacturing in smaller volumes, said Ayam Brand managing director. "We see this business decision paying off in employee satisfaction, brand value and business opportunities in Europe, US and Australia where sustainable palm oil has become a market entry criteria.”
Half of those who responded have taken no steps at all in terms of sourcing palm oil sustainably.
The shortage of responses makes it difficult for WWF Malaysia to gauge "how well the market is moving along and how much help it needs in raising awareness and understanding what we need to do," says Denise Westerhout, head of the organization's sustainable markets program.
But some respondents made it clear that the challenges they face can be significant, saying they lacked the internal capacity and expertise, and that the issue of cost - combined with a lack of demand from consumers - keeps them from pursuing a certified sustainable palm oil strategy.
