26 October 2009 - Nestlé has today announced its commitment to using only Certified Sustainable Palm Oil (CSPO) by 2015, when sufficient quantities are expected to be available.
This follows a detailed review of Nestlé's palm oil supply chain. Under its policy on Environmental Sustainability, Nestlé has pledged to give preference to suppliers who strive to improve the efficiency and sustainability of their operations and use of resources.
The Company uses palm kernel oil for some of its confectionery and dairy products, but it is not a major raw material used. It also buys processed palm oil and processed oil mixes which often comes from multiple sources. However, Nestlé does not use crude palm oil nor has any direct links to the palm oil plantations and continues to work with suppliers to investigate the traceability of all possible sources of any palm oil used.
Over the last few years, Nestlé has been closely associated with the Roundtable on Sustainable Palm Oil (RSPO), an international non-profit association founded in 2004 to promote the growth and use of sustainable palm oil. Nestlé has now applied for full corporate membership of the RSPO, strengthening its efforts to find an effective multi-stakeholder solution to combat the environmental threat caused by the planting of palm oil plantations in South East Asia.
Indonesia and Malaysia produce almost 90% of global supply of palm oil, and in total, global production is about 42 million metric tonnes. Nestlé uses 0.7% of the global supply (320,000 metric tonnes).
Palm oil, which is used in producing household items such as soap and detergent, and even for animal feeding and energy generation, is also used as a material from which biofuels are produced. Nestlé has repeatedly spoken out against the production of such fuels from materials used for food.