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Manufacturers in 2009
L'Oréal
Manufacturers
France
Some
5
Unilever
Manufacturers
Netherlands
Some
5
Mondelēz
Manufacturers
USA
Some
4
United Biscuits
Manufacturers
United Kingdom
ND
4
Premier Foods
Manufacturers
United Kingdom
ND
3
Young's
Manufacturers
United Kingdom
ND
3
Arla
Manufacturers
Denmark
ND
1
Reckitt Benckiser
Manufacturers
United Kingdom
ND
1
ABF
Manufacturers
United Kingdom
NR
0
Brioche Pasquier
Manufacturers
France
NR
0
Danone
Manufacturers
France
ND
0
Nestlé
Manufacturers
Switzerland
ND
0
Raisio
Manufacturers
Finland
ND
0
Warburtons
Manufacturers
United Kingdom
ND
0
Sector
  • Leading the way
  • Well on the path
  • Middle of the pack
  • Lagging behind
  • non-respondent

How did
do?

How did Manufacturers do?

108

companies assessed, 80 responded

93

are RSPO members

82

are buying certified sustainable palm oil

33

are buying 100% RSPO certified sustainable palm oil

Consumer goods manufacturers represent the majority sector in the scorecard, comprising 62% of the assessed companies. 74% of the manufacturers we contacted responded to our questionnaire, a response rate in line with the other sectors.

The average score for all manufacturers was 11.9, which is aligned with the average score of the other sectors. Leading the pack in the manufacturing sector are Ferrero, L'Oréal, Bahlsen, Mars and Friesland Campina, which all score over 17 points.

Of the 16 points available under the “own supply chain” section of the scorecard, respondent manufacturers scored just over half (nine) points on average. In relation to commitments to purchase 100% RSPO CSPO, manufacturers performed below average. Only 70% of the assessed CGMs having commitments to source 100% CSPO while only 63% have commitments to source 100% CSPO by 2020.

The CGM companies in the Scorecard claim they use a total of 8,075,206 tonnes of palm oil, which is a massive 90% the total volume of palm oil captured by the Scorecard. Similarly, 84% of the total 5,211,341 tonnes of CSPO captured under the scorecard are purchased by this sector. 76% of the manufacturers assessed in the scorecard declared that they use some RSPO, but only 38% use 100% RSPO CSPO. This rate of 100% CSPO usage by manufacturers is far lower than that of the retailers and food service companies and represents a drop since our 2016 scorecard which had revealed that 42% of manufacturers were using 100% RSPO CSPO. Conversely, the other sectors reported an increase in RSPO CSPO usage relative to 2016. Given the volume of palm oil captured by the manufacturing sector, this is a very disappointing finding. Some manufacturers anecdotally commented that their investment has been strategically switched to on-the-ground actions with their suppliers, which may in turn have affected supply chain investment choices particularly for physical, segregated volumes.

In more encouraging news, manufacturers are the top performers in taking action to secure their own supply chains with 32% of operators requiring suppliers to have a zero-deforestation policies (versus the Scorecard average of 27%). CGMs also outperform the average on traceability, with 35% requiring traceability of their palm oil supply chain to at least mills. Meanwhile, out of the 18 scorecard companies that require traceability to plantations, 16 of those are from the manufacturing sector. This could reflect the sector’s closer relationship with the production and trade end of the supply chain, and thus ability to effect positive change on-the-ground.

Manufacturers scored in line with the scorecard average related to actions “beyond their own supply chain” with 36% of those in the scorecard claiming to have taken some actions in that regard. The manufacturing sector has the highest proportion of RSPO membership in the scorecard, with 93 of the 141 scorecard CGMs (86%) being RSPO members. Additionally, 25% of the CGMs are members of some other action-oriented platform, slightly below the scorecard average. Manufacturers followed the average again in terms of those investing in on-the-ground initiatives with just under a third reporting doing so

HOW ARE COMPANIES PERFORMING AS A WHOLE?
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