Palm oil is used in a broad array of common consumer goods, especially foods, soaps and cosmetics. We use palm oil in some of our cookie doughs, for example. Most palm oil is grown and produced in Southeast Asia, and the rapid expansion of palm oil production has been associated with the destruction of tropical forests in that region. We are a very minor user of palm oil – buying about 0.1 percent of the global supply annually – but as a socially responsible company we are deeply concerned about its environmental impacts.
Since 2008 Kellogg has taken active steps to source sustainably grown palm oil and to help to end the deforestation associated with palm oil cultivation. In fact, all of the palm oil we use today is 100 percent sustainably sourced through a combination of GreenPalm certificates, mass balance and segregated, sustainably grown supply. Also, 100 percent of the palm oil we use comes from suppliers who are members of the Roundtable on Sustainable Palm Oil (RSPO), a multi-stakeholder organization working worldwide to ensure that palm oil production is economically viable, environmentally appropriate and socially beneficial.
- In Europe, we began using a segregated supply of sustainably grown palm oil in the summer of 2012. By the end of 2013, we expect that at least 90 percent of the palm oil we use in Europe in our snack products, aside from Pringles®, will be segregated sustainably grown. The palm oil we use in Pringles® in Europe is sourced through the mass balance system, which combines sustainably grown and conventional palm oil.
- In other markets where neither a segregated or mass balance supply are sufficient or feasible, we continue to help growers fund the transition to sustainably grown palm oil by purchasing GreenPalm certificates to cover 100 percent of our current palm oil use, as we have done since 2010. (See sidebar.)
We have been members of the RSPO, and have purchased palm oil only from other RSPO members, since 2009. With the RSPO and other stakeholders, we continue to explore solutions to this global issue and to encourage our mass balance suppliers to continue to increase their percentage of sustainable palm oil as the available supply increases. We also require, through our Supplier Code of Conduct, our vendor partners to commit to reducing their impact on the environment.
We are a member of the Consumer Goods Forum (CGF) and support the CGF’s pledge to help achieve zero net deforestation by 2020, as discussed in the Our Commitments section of this report. Our purchasing policies relating to palm oil help us to meet this commitment.
About GreenPalm Certificates
GreenPalm is a certificate trading program that serves as the official broker of the RSPO for trade in sustainable palm certificates. It works like this: Any time an RSPO-certified manufacturer produces one metric tonne of sustainably grown palm oil, they can sell one certificate through GreenPalm’s trading system. In that way the producers receive a financial benefit for growing sustainable palm oil, giving them an incentive to grow more (and giving other growers incentive to do the same). By buying enough GreenPalm certificates to cover the current equivalent amount of palm oil we use, Kellogg is supporting the production of that amount of sustainable palm oil, even though in most regions it is not segregated in the marketplace for us to purchase directly.
Currently, Kellogg’s Pop-Tarts®, as well as Girl Scout cookies made by our subsidiary Little Brownie Bakers, include the GreenPalm logo on their packaging.