In 2024, the urgency to combat climate change peaks.
The palm oil industry, a major player, demands swift action. The 2024 Palm Oil Buyers Scorecard by WWF reveals a sobering truth: palm oil buyers are yet to step up to the challenge, leaving the fate of our planet hanging in the balance. The Scorecard is our wake-up call, emphasising the need for bold, transformative measures for a sustainable future.
285 KEY PALM OIL BUYERS APPROACHED IN 2024
With an average score of 0 out of 24 , companies in the 2024 scorecard serve as a stark reminder of the substantial progress yet to unfold. Not a single company achieves a perfect score, underlining the immense journey ahead.
- Biofuel
- Feed
- Food
- Non-food
- Retailers
- Australia
- Austria
- Belgium
- Cameroon
- Canada
- Denmark
- Finland
- France
- Germany
- India
- Indonesia
- Ireland
- Italy
- Mexico
- Poland
- Portugal
- Singapore
- South Africa
- South Korea
- Sweden
- Switzerland
- Turkey
- USA
- United Kingdom
- the Netherlands
- Africas
- Americas
- Asia and Australia
- Europe and UK
Total palm oil volume purchased
10,108,788 MT
16.96%
Segregated / Identity Preserved
1.70%
Independent Smallholders Credits
31.76%
Mass Balance
11.73%
Book & Claim
39.65%
Non-certified
Non-respondent
Lagging behind
Middle of the pack
Well on path
Leading the way
KEY FINDINGS
While a handful of companies have taken commendable strides in eliminating deforestation, conversion, and human rights abuses from their palm oil supply chains, the industry as a whole is at a pivotal juncture. It demands more than isolated efforts; it requires a seismic shift. Every palm oil buyer must rise to the occasion, transcending current boundaries to deliver transformative impact at a scale and pace that our planet urgently needs.
RECOMMENDATIONS
Building a sustainable palm oil industry, one that reveres forests, preserves natural ecosystems, upholds human rights, and tackles climate change head-on, demands resolute and collaborative efforts from every stakeholder.
From companies and financiers to policymakers and consumers, it's a collective responsibility to usher in bold changes along the global palm oil supply chain. Together, we can create a future where sustainability isn't just a goal but a shared reality.
Each one of us holds a vital role in steering away from unsustainable palm oil. Let's actively shoulder our responsibility—make informed choices, demand transparency, and support sustainable practices. Your role matters—let's embrace it.
METHODOLOGY
The Palm Oil Buyers Scorecard isn't just a tool; it's your compass for transformation.
It serves as a practical tool for companies using palm oil in their products as It provides a clear roadmap for identifying areas of improvement in policies, operations, and sustainability efforts.This isn't just about assessment; it's about empowerment. The Scorecard allows you to not only benchmark against peers but also showcases your journey of progress over time.
Use PalmOil Scan, developed by the World Association of Zoos and Aquariums (WAZA) in collaboration with top conservation-minded zoos around the world, to check if the product you are about to purchase is from a company committed to sourcing sustainable palm oil. PalmOil Scan is currently supported in the United States, Canada, United Kingdom, Australia, New Zealand and Singapore (coming soon!). Visit https://wazapalmoil.org/palmoil-scan for more information and to download the app.
DOWNLOAD THE FULL REPORT
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The WWF Global Palm Oil team would like to acknowledge the support provided by the Climate Solutions Partnership, a collaboration between WWF, HSBC and World Resources Institute, and WWF International and WWF Germany for their valuable contributions.
ABOUT PALM OIL
PALM OIL
A versatile and widely used oil, powering industries and households globally
Palm oil’s wide range of uses and relative affordability have earned it the title of the world’s most consumed and traded vegetable oil.
EVERY PART OF THE OIL PALM PLANT CAN BE USED
Palm oil is an edible vegetable oil that comes from the fruit of oil palm trees. To extract the oil, palm fruits are pressed in mills. Two types of oil can be produced: crude palm oil (CPO) comes from squeezing the fruit’s flesh, while palm kernel oil (PKO) can be extracted by crushing the kernel in the middle of the fruit.
Embracing sustainable practices is crucial to preserve the delicate balance between palm oil production and environmental conservation.
Global demand for palm oil is forecast to increase exponentially in the near future. Companies play a key role in making this happen. By adopting eco-friendly practices, they can ensure palm oil production benefits nature and the communities it sustains
264-447 million my by 2050
PALM OIL IS EVERYWHERE
If you consume chocolates, instant noodles, vegetable oil; purchase household items such as soaps, detergents, cosmetics. Then without necessarily knowing it, we all consume palm oil on a daily basis. Palm oil is an extremely versatile oil that has many different properties which make it very useful for a variety of products.
- It has a smooth and creamy texture, making it ideal for blending and processing to form products of varying consistencies and characteristics;
- It is odourless, tasteless and colourless, meaning it doesn’t alter the smell, taste or look of products;
- It maintains its properties even under high temperatures, making it ideal for cooking and frying;
- It is resistant to oxidation and so can act as a natural preservative, giving products a longer shelf-life.
THE IMPACT OF PALM OIL
Palm oil makes a substantial contribution to economies and livelihoods across the tropics, particularly in Southeast Asia. But the rapid expansion of oil palm plantations to meet global demand has also resulted in a range of devastating impacts for people, nature and our climate
WHY YOU SHOULD CARE ABOUT PALM OIL?
WHY DON’T WE SIMPLY REPLACE PALM OIL
Palm oil's remarkable productivity, surpassing other vegetable oils, is a critical factor. While considering alternatives might seem like a solution, the reality is that replacing palm oil could exacerbate environmental and social challenges. The efficiency of palm oil production means that replacing it with other oils may demand four to ten times more land, posing a greater threat to nature and wildlife.
Beyond its agricultural impact, the palm oil industry plays a significant role in job creation, particularly supporting rural communities where palm oil is a lifeline. Shifting away from this commodity could have substantial consequences, especially for the 40% of global palm oil production contributed by smallholder farmers. Striking a balance that ensures sustainability while supporting livelihoods is key.
land required to produce 1 tonne of major oils
Source: Meijaard, E. et al. (2018). Oil palm and biodiversity.
A situation analysis by the IUCN Oil Palm Task Force.
Palm oil demand is projected to increase in the near future. This growth could cause more environmental and social problems, not only in Southeast Asia but also in places like Africa, Latin America and Papua New Guinea.
But here's the good news: As consumers we have a CHOICE!
Palm oil production is expected to increase by four to six times in the near future, jumping from 73.8 million MT in 2020 to 264-447 million MT by 2050
GLOBAL PALM OIL PRODUCTION
Source: United States Department of Agriculture Foreign Agricultural
Service (2020). Production, Supply and Distribution database.
Palm can be produced sustainably and responsibly, without deforestation and the conversion of natural ecosystems, benefitting both communities and the environment.
But, seizing this opportunity requires urgent action to hold the palm oil industry accountable and steer it towards sustainability. Companies purchasing palm oil must swiftly embrace and support the production and utilisation of sustainable palm oil. Together, we can make a significant impact.
ARE BRANDS COMMITED TO A RESPONSIBLE PALM OIL FUTURE?
CHECK THE BRAND’S SCORES
WWF is also working with partners like Be Slavery Free to make the cocoa industry more sustainable and responsible. The Chocolate Scorecard assesses the actions of companies that represent 85% of the world’s cocoa production, and shows which are the best picks, working to improve and which ones are falling short.