Statement of Glenn Hurowitz on Today’s Two Major Palm Oil Announcements: Unilever and Ferrero Announce Aggressive New Actions
“Taken together, today’s announcements by consumer products giants Unilever and Ferrero show an industry in transformation. All along the palm oil supply chain, savvy companies that want access to the high-value, high-margin markets are understanding that means ending dependance on deforestation-based sources. Sustainability is not just a notional good. There is an enormous opportunity for traders and growers who can outcompete by out-sustaining the competition.
“Today’s announcements coincide with a meeting of the RSPO — but both go much further than anything endorsed by that organization. At this rate, the RSPO is in danger of being a lagging indicator.”
Global consumer products leader Unilever today announced that 100% of the palm oil used in its supply chain would by fully traceable to known sources by the end of next year.
Global chocolatier and confectioner Ferrero today announced it would become a member of sustainable supply chain nonprofit TFT, and work to make sure that its supply chain has no link to deforestation by the end of 2014.
The announcement comes in the context of a meeting of the Roundtable on Sustainable Palm Oil (RSPO) currently kicking off in Indonesia. Both announcements go much further than anything endorsed by RSPO.