We support, both, the industry’s physical transformation and the market’s transformation to certified sustainable palm oil products. A multi-stakeholder approach is at the core of our initiative for sustainable management of palm oil and palm kernel oil. Through partnerships, projects and dialog, we engage with key players and we are expanding our contribution to sustainable practices in the palm oil industry.
Henkel is a committed founding member of the Forum for Sustainable Palm Oil (FONAP) in Germany and is a member of various working groups dedicated to palm (kernel) oil sustainable sourcing. Through these engagements with other companies, NGOs, associations and political bodies we advocate for finding ways to increase the proportion of sustainably produced palm (kernel) oil, and improving existing standards and certifications.
In November 2019, Henkel joined the cross-industry initiative Action for Sustainable Derivatives (ASD) as a founding member, together with other leading consumer goods manufacturers and companies in the oleochemicals industries.The primary objective of the initiative is to generate more transparency in the complex value chain for palm derivatives. Activities include assessing identified risks, promotion of the sustainable production and procurement of palm (kernel) oil derivatives, and sharing best practices and solutions that can comprehensively transform the complex palm oil derivatives sector. One of several initiatives we joined in 2022 was the effort by ASD to develop an enhanced monitoring approach for the proactive detection and tracking of abuses and noncompliance with zero net deforestation requirement. Additionally, we collaborate in the harmonization of requirements, tools and criteria to create fair conditions for competition among companies and with their direct suppliers.. After three years working together, we have achieved collective transparency for 1.03 million tons of palm-based materials – almost a 25 percent increase of the volume compared to the previous year. This represents around 1.4 percent of the global palm production and 11 percent of the global palm-based oleochemicals market.
We are also actively involved in the Roundtable on Sustainable Palm Oil (RSPO). The RSPO standard includes compliance with human rights along the entire supply chain, in addition to addressing environmental issues. In May 2022, our Global Supply Chain organization was again successfully certified in line with the RSPO’s supply chain standard.
We have partnered with Solidaridad on initiatives in Ghana, Honduras, Indonesia, Colombia, Mexico, Nicaragua and Nigeria since 2013. Our projects’ focus is on improving palm oil smallholders’ livelihoods, incomes and resilience, simultaneously making a positive contribution to the environment and climate. Many of our projects were successfully completed in 2020 and 2021. In 2022, we were engaged in projects in Colombia, Indonesia, and Nigeria. Building on the very good collaboration with Solidaridad, we have developed specific plans for the next few years to expand the commitment further.