From a sustainability perspective, there are a number of problems surrounding cultivation and production of palm oil and palm kernel oil.
Palm oil is a high-yield crop that is one of the most traded vegetable oils in the world. Malaysia and Indonesia account for around 90 per cent of total global palm oil production, and if cultivated in a sustainable manner it can be an important source of income and economic development in these countries.However, there are a number of environmental and social challenges associated with production of palm oil, such as deforestation in environmentally sensitive areas, that have a negative impact on the entire ecosystem.
Due to the urgency of combating the longterm negative effects of palm oil production, Cloetta has decided to formulate a sustainable plan that contributes to preserving the rainforests for future generations. Consequently, in its palm oil policy Cloetta declares a commitment to not contribute to destruction of rainforest. Some of Cloetta’s products contain small amounts of palm oil. However, Cloetta does not buy pure palm oil but only oils and fats that contain derivatives of palm oil to a varying extent.
All palm oil (part of the content in an oil or fat) that was purchased by Cloetta in 2016 is covered by GreenPalm certificates in accordance with the Roundtable on Sustainable Palm Oil (RSPO). Purchases of Green-Palm certificates in 2016 have not yet been audited. This will take place in the spring of 2017. 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, RSPO is the most widely supported method for achieving sustainable palm oil production.
Cloetta’s palm oil policy – from 2017 and onwards
At the end of 2016 Cloetta decided to update its palm oil policy. One central part of the new policy is an ambition to improve traceability back to known mills and plantations. In order to maximise traceability, Cloetta will change over to 100% RSPO-segregated volumes in 2017. Unlike GreenPalm certificates, after implementation Cloetta will be able to guarantee that only RSPO-certified palm oil is found physically in Cloetta’s products. At the same time, Cloetta will know which mills, and related plantations, the palm oil comes from.
Furthermore, Cloetta’s palm oil policy goes beyond that which is currently required in the RSPO standard. By the end of 2017, Cloetta’s suppliers must accept Cloetta’s requirement not to permit palm oil extraction in primary forest, peatlands, areas with protected forest or areas where slash and burn farming is used in plantation operation. In 2016 a decision was made to replace the amount of palm oil that is found in Cloetta’s glaze. Confectioner’s glaze is used in most of Cloetta’s products to create a shiny and protective surface that prevents the products from sticking together, for example in a bag.
This means that the great majority of Cloetta’s products will be free from palm oil by the end of 2017. The reason for this decision is that at present is difficult to achieve a traceable pipeline back to the mills and plantations for the small amount of palm oil contained in the glaze.