Palm Oil

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Palm oil—one of nature’s most sustainable crops

Palm oil, the most widely used vegetable oil in the world, is an extremely important commodity. Because palm oil plantations are highly labor intensive, the crop production also provides a livelihood to millions of people in small, tropical agricultural communities around the world.

Sustainable and traceable palm oil

Where do we stand per December 2016? Download the status here. The list of available sustainable components can be downloaded here.

Sustainable palm oil
Sustainable palm oil is palm oil which is certified by RSPO, the Roundtable for Sustainable Palm Oil. Worldwide 33% of our sourced palm oil is SG-RSPO certified and 98% of our palm oil sourced can be traced to mill level. 

Supply chain models
Oil palm products go through a multitude of production and logistical stages before being marketed to the consumer. RSPO attempts to promote greater transparency in this supply chain by identifying models. These include two approaches known as 'segregated' and 'mass balance' which have both been incorporated into IOI Loders Croklaan's supply chain. We even developed an additional model ‘mass balanced traced’. This animation visualizes the three models. Information on the individual supply chain models (Book&Claim, Mass Balance, Segregation) can also be downloaded via the RSPO factsheet-page. 

Sustainability at the plantation level

With the global population growing to an estimated 9 billion by 2050, palm oil will remain a crucial part of food production in the future. Palm is the most efficient land-use crop. Of all vegetable oils, palm oil has—by far—the highest oil-yield-per-hectare: 7-10 times higher than other vegetable oil crops.

Because of palm's benefits, palm plantations have helped thousands of farm families achieve middle-class living standards. Palm can be harvested year round, does not deplete the soil and every part of the plant can be used for oil or biomass.

Our parent company, IOI Group, has always been at the forefront of sustainability practices. The company vigorously maintains a zero-burning policy and was one of the first companies to ban the use of the herbicide paraquat. IOI Group has also developed a sustainable palm oil policy. The RSPO “principles and criteria” document further defines how palm can be grown responsibly on plantations and without compromising labor conditions or the interests of nature conservation.

We are committed to sourcing and processing traceable and certified sustainable palm oil. We are concerned by deforestation, loss of biodiversity, and the use of peat lands, all issues associated with palm oil production on plantations. We work with the RSPO, our suppliers, our customers, and NGOs to assess how we can improve on RSPO’s existing principles and criteria addressing these and other emerging issues. See our sustainable palm oil policy.

Sustainability at the palm oil mill

Palm fruits are harvested in bunches at plantations and transported to mills. A palm oil mill usually receives fruit from several plantations. The palm fruit is separated from the woody hull and fibers and the oil is pressed out, while the palm kernel goes to a palm kernel crushing plant. Every part of the palm fruit is used: palm kernel shells and the fibers of empty fruit bunches are used as biomass. At the mills of IOI Group, 98% of the energy used to create steam during the milling process is generated on-site.