From a sustainability perspective, there are a number of concerns surrounding cultivation and production of palm oil.
Palm oil is a high-yielding crop and one of the most traded vegetable oils worldwide. It is a common ingredient in a variety of consumer goods. Approximately 90 per cent of the total global palm oil production comes from Malaysia and Indonesia and produced right, can be an important source for income and economic development in these areas. However, there are a number of environmental and social concerns associated with using palm oil, e.g. deforestation in environmentally sensitive areas having an impact on the entire eco system.
The long-term negative effects of palm oil production is of great concern to Cloetta and we are determined to find a sustainable way forward, securing the rainforests for generations to come. This means that Cloetta in its palm oil policy declares a commitment to no deforestation by implementing new ways of working with all its suppliers of compounds containing palm oil.
Palm oil is present in small amounts in some of Cloetta’s products, but Cloetta does not buy palm oil itself but compounds that, to a varied extent, contains derivatives of palm oil. This means that Cloetta only uses less than 0.003 per cent of the global palm oil production.
All palm oil acquired (via the compounds) by Cloetta is covered by GreenPalm certificates in accordance with the Roundtable on Sustainable Palm Oil (RSPO). This means that for each tonne of palm oil that is used in production, Cloetta pays a premium to palm oil producers that work according to the RSPO standard. Today, the RSPO is the most widely supported method of achieving sustainable standards for palm oil production. However, Cloetta realises that this standard is not enough and will therefore continue the collaboration with RSPO to make it stronger – especially in terms of protecting the rainforests from deforestation.
In Cloetta’s policy for Palm Oil we will go beyond the RSPO-standard which means that at the latest in 2015, Cloetta´s suppliers must have a 100 per cent traceable pipeline back to known mill. No later than 2020 the same traceability pipeline shall go back to known plantation.
Cloetta will also only buy compounds from suppliers who can verify that palm oil plantations in origin countries comply with local laws and guarantee a sustainable production according to the requirements of the new policy. No later than 2017, Cloetta´s suppliers must be able to verify that plantations operate according to the requirements of Cloetta’s policy. Cloetta will not allow palm oil development in primary Forest, Peatlands, High Conservation Value Areas, High Carbon Stock Forests and Areas where burning has been used in plantation operations.