The way to conversion free (Deforestation Free) Palm Oil Supply Chains 2023
We are making a significant effort to implement and improve sustainability standards along the supply chain of renewable feedstocks. At Evonik, we have already established clear procurement strategies and risk management systems for our critical raw materials, such as conflict minerals, and renewable raw materials, such as palm oil.
We have therefore come together with our customers to define responsible sourcing criteria for supply chains all the way to the plantation level. We carry out ongoing supplier evaluations and promote those suppliers who best meet our targets of responsible sourcing, traceability and ecological compliance. These include:
- Traceability of palm oil derivatives to plantations or mills.
- Compliance with the laws of the country of operation. Suppliers must confirm their legal compliance along the supply chain with a focus on anti-corruption and land-tenure rights.
- Expanding palm plantations must ensure conservation and restoration of High Conservation- and Carbon Stock areas and peatlands.
- Renouncement to peat clearance for new plantations and the adoption of a responsible maintenance system of peatland in existing plantation.
- Compliance and informed consent from indigenous peoples and local communities regarding new plantations, focusing on land-grabbing procedures and ILO rights of workers.
- Suppliers of palm-based products must either be a member of the RSPO or comply with the sourcing rules set by the RSPO (RSPO principles & criteria 2018) and validated by external partners.
In addition to these supply chain criteria, we’ve also adopted the following self-imposed commitments:
- To improve the social and educational level of small-holders and make a positive contribution to the livelihood of underprivileged people associated with palm oil production.
- To economically integrate indigenous peoples and communities.
- To improve processes and feedstock efficiency.
- To implement innovative forest and peatland management systems.
And by 2023, we want to be exclusively using traceable and sustainable edible oil esters and primary derivatives of palm oil.
We know the challenges of responsible sourcing, but meeting these challenges is not something we can achieve on our own. It’s yet another reason why we joined in 2019 the Action for Sustainable Derivatives (ASD) as founding member within Transitions and BSR.
In line with our annual supply chain investigation Evonik´s Transparency Scores for the volumes in scope of the investigation (97% of the total volumes) are the following:
- 97,3 % traceable up to refineries1 (integrating crushing facilities)
- 96,7 % traceable up to mills1
- 30,1 % traceable up to plantations
Further details on mills entering Evonik´s supply chain 2021 can be downloaded here:
Because for us, transparency is the major component for responsible sourcing. And it is only when we have completely achieved this, that ecological and social efforts will be able to go hand in hand into the future.
1 integrating crushing facilities