CASE STUDY

USA

P&G

APPROACH AND KEY ACHIEVEMENTS

P&G recognizes benefits of palm oil (land-efficiency/versatility) but, unless managed sustainably, there can be environmental and social concerns. In 2023 we published our renewed P&G Forest-Commodities-Policy (including NDPE expectations). Our work focuses on 3 pillars:

  • Sourcing Fundamentals – supply chain traceability (98% to Mill); transparency (public mill/ supplier lists) and achieving 100% RSPO preference for our brands.
  • Compliance Monitoring – satellite monitoring enables continual compliance assurance and when needed rapid, robust investigation and stakeholder engagement.
  • Partnering - Force-for-Good – engaging in sector wide solution forums (e.g. RSPO, POCG, HCSA) and partnering on nature and social programs e.g. WWF, RIMBA Collective.

Learn More: P&G ESG-Palm-Oil

Roadblocks and solutions

Our challenges are ones shared across the sector, but especially by purchasers of palm kernel oils. Demand for palm kernel oil continues to grow but the pace is not matched by growth in RSPO certified production volumes. Traceability is a growing focus (enabling governance and stakeholder engagement) but going beyond palm oil mills to farms presents a unique challenge, especially for more complex PKO supply chains. It will require identification of shared industry solutions. Smallholder sustainability and inclusion needs on-going focus, with solutions enabled by participation and access to sustainable best practice and technology, delivering positively for people and the planet.

Action Plan for the next 5 years

  • Partnership – shared challenges, need shared solutions. We will continue our work with industry (e.g. POCG, HCSA), and expert (e.g. RSPO, WWF) organisations.
  • Jurisdictional Scale – development of a pilot JA in Johor Malaysia (with WWF and RSPO) to scale availability of sustainable oils, establish consistent due diligence and shared accountability for best-practices across multi-stakeholder communities.
  • Smallholders – continue expanding our program, for inclusion that lifts up communities and protects nature, through access to best agricultural practice solutions, RSPO RISS certification etc.
  • Force-for-Good – supporting partnership programs that seek to achieve better outcomes for communities and nature e.g. RIMBA Collective, WWF Malaysia Tiger.

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Germany

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Germany

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Poland

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USA

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