CASE STUDY

the Netherlands

Nutreco NV

APPROACH AND KEY ACHIEVEMENTS

Nutreco is committed to achieving a deforestation-free supply chain by the end of 2025. To realize this goal, we've implemented a sourcing policy specifically targeting soy and oil palm ingredients. This policy assesses the risk of deforestation based on the country of cultivation and the use of appropriate certification. Notably, our efforts have shown significant progress; in 2020, 53% of our palm purchases had a low deforestation risk, a figure that increased to 66% by 2022.

Roadblocks and solutions

One of the significant challenges we faced was the difficulty in determining whether purchased palm oil posed a low risk of deforestation. To address this, we developed a clear sourcing policy with a decision tree to guide our procurement department in making informed decisions.Furthermore, we've observed an increasing emphasis on carbon footprint and other life cycle assessment (LCA) metrics for identifying sustainable ingredients. Notably, deforestation-free palm oil often exhibits lower carbon footprints due to reduced land use change. However, there's currently no established alignment between certifications and chain of custody models that directly correlate with emission reductions that Nutreco is aware of. Addressing this gap is essential for the entire industry to ensure sustainable practices.

Action Plan for the next 5 years

We are actively pursuing RSPO certification for a portion of our business to provide RSPO certified products to customers in targeted markets. Concurrently, we continue to advocate for the use of RSPO credits throughout our operations. By 2026, our aim is for the vast majority, if not all, of our palm purchases to be sourced sustainably. This commitment underscores our dedication to promoting sustainable palm oil practices and meeting the evolving demands of our customers and markets.

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