Bosnia & Herzegovina
The Former Yugoslav Republic of Macedonia
Palm Oil (PO) is an important, versatile and highly efficient vegetable oil that is used as a raw material by both food and non-food industries. In some regions of the world, the rapid expansion of PO production has threatened environmentally sensitive areas of tropical forests and peat lands and has resulted in incidents where the rights of independent smallholder farmers and indigenous peoples have been infringed.
While we do not use a large amount of palm oil, we do use a byproduct called palm kernel oil (PKO). We are committed to ensuring that our sourcing of palm oil, palm kernel oil and derivatives does not contribute to deforestation and respects the rights of workers and indigenous peoples. We are members of the Roundtable on Sustainable Palm Oil (RSPO) and support their standards to drive responsible palm practices across the industry. In addition, we have established a robust approach to ensuring the responsible sourcing of PO, PKO and its derivatives via a three-pillar program:
P&G is committed to ensuring our suppliers meet RSPO Principles and Criteria (P&C) and have the necessary policies and procedures in place to ensure:
If we find a supplier is violating any of the above requirements, and if that supplier does not acknowledge and resolve the concern, P&G will suspend or eliminate palm oil purchases from that supplier. A supplier would need to have a documented action plan and demonstrate meaningful progress to be considered for reinstating supply agreements.
P&G has successfully met all our initial palm oil goals. These include:
We are proud of our progress on Palm Oil and our intent is to move to 100% RSPO SG Palm Oil by the end of 2018. Our ability to achieve that may be influenced by broader market dynamics and supply availability, but we have already engaged with our suppliers on plans to achieve this goal. This is consistent with our belief that it is the demand for palm oil that is driving forest conversion and peat land pressures and the greatest impacts can be achieved by industry placing a disproportionate focus on driving sustainable palm oil production practices across all categories and regions that use palm oil.
Have questions about Palm Oil? Read through our FAQs.
* As a member of HCSA Steering Group, we support the HCS definition and application of the HCS assessment methodology outlined in the HCS Approach Toolkit 2.0 to implement our supply chain policy.