The bar graphs below show how much of the companies total use of palm products is made up of the different supply chain options.
Each of the four RSPO approved supply chain options to source CSPO has a role to play in transforming the industry.
The book and claim system is valuable to ‘kickstart’ transformation by making it easy and cheap for brands to support growers that are RSPO-certified. However, shifting supply chains to physical supplies of CSPO is important because it brings greater transparency to that supply chain, and because consumers can have the assurance that the actual oil in their products is indeed sustainable.
The mass balance option is a stepping stone between book and claim and fully segregated CSPO.
This is why WWF asks brands to move towards using mass balance and eventually segregated and identity preserved CSPO and away from relying on book & claim.
In markets where mass balance, segregated and even identity preserved CSPO is increasingly available (like Europe) brands must increase their use of these options.
Only three companies used 100% segregated CSPO in 2015 – Arnott’s, Danone and Ferrero. Danone and Ferrero are relatively large users of palm oil – so it’s a credit to them both that they have put in the effort to shift their sourcing to segregated supplies.
In contrast, alongside 28 companies that did not bother to respond to WWF or the RSPO, there were 13 that did report but failed to disclose whether they used CSPO, or told us that they were not using any CSPO at all.
Of the 97 brands that reported using CSPO many are still either using very low proportions of CSPO or still relying too heavily on the book and claim system. Sixteen brands told us they were using 100 per cent CSPO – but still at least three-quarters of that was book and claim. The 16 companies are:
ABF, Avon, Axfood, Colgate-Palmolive, ConAgra Foods, Estée Lauder, Karl Fazer, Krispy Kreme Doughnuts, McDonald’s, Oriflame, PepsiCo, Reckitt Benckiser, Seiyu, Sodexo, Restaurant Brands International and Unilever.
Getting to 100% CSPO shows that these brands are committed to making sure that they are supporting sustainable producers – but now these brands need to focus on shifting to segregated sources of CSPO and show that they also support the trade in physical sustainable palm oil.