Why does P&G use palm oil?

Palm oil is used broadly across the consumer products industry as a high-quality, cost-effective, versatile oil that can be used in a wide variety of food, personal care and cleaning products. According to the World Wildlife Fund, palm oil is used in about 50% of all packaged food products in supermarkets today. Palm is a highly productive crop, requiring much less land use than alternatives, and can contribute to economic development and poverty alleviation in areas where it is produced. While expansion of palm production to meet increasing global demand has raised real concerns regarding deforestation, when produced and managed responsibly, palm production can have positive economic, social and environmental results.

What P&G products contain palm oil?

We use very little actual palm oil in our products, but derivatives and by-products of palm oil are found in a variety of our beauty and household care products such as detergents, shampoos, hand and body cleansers, bar soaps and color cosmetic products.

How much palm oil does P&G use?

P&G uses relatively little palm oil, but we do use a by-product of palm oil production called palm kernel oil. Our combined use of palm oil, palm kernel oil and derivatives of each is still less than 1% of worldwide production.

Where does your palm oil come from?

P&G buys its palm oil, palm kernel oil and derivatives from a variety of responsible sources. The vast majority of our palm-derived materials (less than 70%) come from Malaysia. Other sources include Indonesia and central/South America.

You have established different goals for palm oil, palm kernel oil and derivatives. Why?

Palm oil, palm kernel oil and the derivatives of each have different levels of complexity in their supply chains. P&G is steadfastly committed to overcoming this complexity by working with suppliers to drive traceability through our entire supply chain—first to supplier mills and then to the source plantations. The individual goals and timelines for palm oil, palm kernel oil and derivatives were set based on the inherent complexity of their supply chains.

P&G is committing to work with palm kernel oil suppliers and the small holders who supply them to improve practices and livelihoods to ensure no deforestation. Can you share any more details on that?

We have already begun working with industry leaders, local suppliers and academic experts on this complex issue. Our initial focus will be to work with individual palm kernel oil suppliers, small holders and regional supply chain experts to understand and address interventions needed to meet RSPO criteria and encourage use of best management practices, which can increase yields and improve livelihoods. We will have a more detailed plan with timelines developed in the next six months.

How do you define “High Conservation Value” areas?

High Conservation Value areas contain items of biological, social or cultural value that are important to conserve, including rare, threatened and endangered species and their habitat. Please visit www.hcvnetwork.org for more information.

How do you define “High Carbon Stock” forests?

There are a number of organizations currently developing and researching assessment methods to identify and assess High Carbon Stock forests in palm sourcing regions. Golden-Agri Resources, The Forest Trust and Greenpeace are currently piloting one such effort for tropical forests of Indonesia and plan additional testing and fieldwork to advance their method. We intend to stay actively engaged with the stakeholders who are working to advance the science in this area.

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