P&G Commits to ‘No Deforestation’ in its Palm Oil Supply Chain by 2020

(3BL Media/Justmeans) – Procter & Gamble Co. announced its commitment to source sustainable palm oil for all its products. The company has pledged to work with palm oil suppliers and farmers in Indonesia to ensure that rainforests that are home to endangered species are not destroyed. P&G will require its suppliers to submit plans that spell out the steps they will take to ensure no deforestation in the supply chain for their mills by 2020.

P&G uses palm oil in brands such as Head & Shoulders shampoo, Gillette shaving gel and Olay skin care products. The company was the target of a high profile protest by the environmental advocacy group Greenpeace recently, which wanted it to take strong measures to ensure that its palm oil is not purchased from plantations that clear-cut forests.

P&G’s positive response to the protests has now been applauded by Greenpeace. P&G said in a statement that its commitment to no deforestation in its palm supply chain is unequivocal. Palm oil sustainability is a complicated issue and the company is working to develop effective long-term solutions to it. Apart from driving positive change across its supply chain, P&G is also committed to making the same efforts for the entire industry and for the small farmers who depend on this crop.

The company has pledged to work with suppliers, non-governmental organizations, academic experts and other stakeholders to promote consistent industry standards and practices for sustainable palm oil sourcing. According to Greenpeace, clearing of rainforests to cultivate palm trees is not only pushing animals closer to extinction but also speeding climate change. Therefore, it had called on P&G to suspend trade with any producer involved in deforestation.

P&G’s new commitment includes establishment of ways to trace palm oil and palm kernel oil to supplier mills by the end of 2015. It will also begin investing in and working with small farmers who produce palm kernel oil, with a goal to improve their practices to ensure no deforestation across the supply chain by 2020. The company will also report annually on the progress toward achieving these new goals.

Source: Biz Journals

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