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Consumer groups slam greenwashing in sustainable palm oil marketing

Consumer groups Palm Oil Investigations of Australia (POI) and Palm Oil Consumers Action (POCA) of the United States issued a joint statement against the green-washing that is prevalent among Western brands that use palm oil in their products.

The problem, as they see it, includes confusing wording and suggestive statements used by companies that try to reassure their customers that the palm supply they use is sustainable. The main issue lies with the Roundtable on Sustainable Palm Oil (RSPO) approval of a paper scheme for sustainable palm oil called Greenpalm certificates.

Oil Palm Concession
How to Make a Palm Oil Plantation: Complete Deforestation, photo courtesy of Hayden, Flickr Creative Commons

Greenpalm certificates — a program operated by Book & Claim, UK — was a scheme created when the RSPO was first established in 2004 by member company AarhusKarlshamn Group (AAK) as an option to support the production of sustainable palm oil. At the time, it made sense for palm oil users to buy into the scheme to show their support of sustainable palm oil.

In the eight years since the RSPO was formed, some of its members have taken great strides to work according to the organization’s principles and criteria to produce environmentally-sustainable palm oil. Producers including New Britain Palm Oil (NBPOL), Agropalma, Musim Mas, and Sime Darby have consistently met those standards, which are some of the toughest for vegetable oil production.

Some of the same producers have been quoted in recent months that the usefulness of Greenpalm Certificates is past its time. Nick Thompson, CEO of NBPOL, was especially critical of Greenpalm certificates in a statement made to Palm Oil Consumers Action group:

“Although we understand the theory behind Greenpalm certificate trading, we have always thought that because the associated claim is so weak, the value to any buyer would be correspondingly low and therefore represent too little incentive to the growers. This is exactly what has been happening and they now pretty much represent the price you pay for doing nothing and turning a blind eye! The value of certificates is pathetically low and the fact that such a massive percentage of Greenpalm certificates are being redeemed by a very small number of companies illustrates their lack of franchise in the market.”

Most participants are now realizing that mass balance is a much better way to go in that it allows critical players in a supply chain to understand just how close they are to being fully segregated. This means that when they get close to a tipping point (where the majority of the oil is actually certified sustainable palm oil, or CSPO), then it’s actually much easier for the supply chain to become fully segregated at very low cost. The costs of any segregation, then, really only apply when they have effectively become very small.

By contrast, in the opinions of POI and POCA, rather than encouraging this process, Greenpalm certificates just get in the way of traceable, efficient, and sustainable supply chains evolving. According to these organizations, Greenpalm is now an obstacle to a more sustainable industry rather than an aide.

Multinational brands, however, have been quick to jump on the opportunity to divert criticism with the use of this cheap alternative to physical sustainable palm oil. Costing approximately $3 per ton for palm oil or $20 per ton for palm kernel oil, it’s a cheap marketing alternative to physical sustainable palm oil, which runs at many times that cost depending on the product.

The consumer groups have challenged several brands before on their claims to be “sourcing sustainable palm oil” with the use of Greenpalm certificates.

Corporations including Unilever, Kellogg, and Avon products clearly state on their websites that they are “sourcing sustainable palm oil” through the use of these certificates.

“To me, its green-washing, plain and simple,” said LeAnn Fox from POCA. “ How can they claim to be sourcing sustainable palm oil when Greenpalm’s own website makes it very clear they can only claim to be supporting sustainable palm oil?”

Jaffa race - Cadbury palm oil protesters
Cadbury Palm Oil Protesters, photo courtesy of Samuel Mann, Flickr Creative Commons

The key difference between what the consumers are seeing and the reality are simply the words supporting and the brands’ use of the word sourcing to replace the former in public communications, which makes their statements look like intentional misinformation meant to confuse consumers.

The confusion can been seen in how American zoos are approaching the palm oil issue. Cheyenne Mountain Zoo, previously very critical of anything to do with palm oil, introduced a new app to identify the best choices for brands using palm oil. Unfortunately, these lists contain mostly brands that use Greenpalm certificates. The Philadelphia Zoo, on the other hand, has been harsh on the certificates in their blog:

“The main issue is that, while companies are paying for the sustainable certificates, they are not actually addressing their own palm oil supply chains or creating a demand for sustainable palm oil that is traceable to the source,” the zoo stated. “We have to be careful that GreenPalm [sic] certificates don’t become a way to relieve companies of accountability.”

Lorinda Jane from POI in Australia added further, “If the RSPO is serious about becoming a credible label for sustainable palm oil, they have to drop Greenpalm certificates, which most consumers consider a greenwash that does not address the serious problems in palm oil production.”

The RSPO would be wise to listen to consumers’ concerns. Uptake of their CSPO product has stagnated at 50 percent, and this has led to discontent among its members.

The Indonesian Palm Oil Association (GAPKI) cancelled its membership with the RSPO in 2011, stating in a thinly veiled criticism of the RSPO’s reputation and credibility that, “the Indonesian palm oil industries can move forward and will have a better image in the eyes of the world” without involvement in the program.

Their counterpart in Malaysia, the Malaysian Palm Oil Board (MPOA), has made similar statements, as rumors whirl around the creation of Malaysia’s own sustainable label under Malaysian Sustainable Palm Oil (MSPO) and whether their members would be better off leaving the RSPO, as well.

Outspoken Director of the Malaysian Palm Oil Council Yusof Basiron went a step further by saying, “It’s pointless to produce more palm oil certified by the Roundtable for Sustainable Palm Oil (RSPO) if it could not even gain access into France.”

Even their environmental founder, the World Wide Fund for Nature (WWF), has been critical of what the RSPO actually means today and issued a scathing remark in its appraisal of the RSPO’s certified products: “It is unfortunately no longer possible for producers or users of palm oil to ensure that they are acting responsibly simply by producing or using Certified Sustainable Palm Oil.”

In a move that was widely seen as lack of confidence in the RSPO, the WWF has joined a new group of palm oil producers, Palm Oil Innovation Group, whose members are showing their frustration with the slow progress at the RSPO.

“The matter is quite simple,” said LeAnn Fox from POCA. “If we look at other certification bodies like the organic label or fair trade label, when you buy something that is organic or fairly traded, that’s what it is. No one else has offsets like the RSPO where brands could say we couldn’t find organic product so here’s a conventional one and the offset we bought to make it organic.”

Lorinda Jane from POI Australia states:

“Brands are taking advantage of the cheaper Greenpalm option and using it for long term supply, rather than making the vital switch to certified sustainable palm oil. When brands do not demand CSPO and rely instead on Greenpalm, then palm oil companies are not going to produce it; it’s that simple. Consumers are losing faith: The RSPO name is being used as nothing more than a marketing tool, no one knows if a brand is using certified palm oil or not, and it’s an absolute joke and a mess. RSPO needs to cease endorsing Greenpalm and cut ties if it’s going to gain any kind of credibility for their certification process. The RSPO is currently doing themselves a great disservice, and Australian consumers are wising up to it. We have not come across a single Australian brand that has not used the RSPO name in their palm oil greenwashing statements, yet we have only so far found a handful of brands that are in fact using certified palm oil.”

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  1. Luis Lopez
    September 29, 2015, 11:04 am

    Great article! very interesting!

  2. Simon
    August 28, 2013, 6:57 am
  3. Simon
    August 28, 2013, 6:55 am

    For 2011 certificate purchases onwards, all retailers are audited automatically via an approved RSPO CB. Those members who have redeemed more than 500 certificates automatically qualified for an audit, of course again the only certifying bodies that are allowed to carry out the audit are those who are on the RSPO approved list. In 2011 90% of certificates that were purchased & redeemed were audited against, the remaining 10% were either not redeemed or did not qualify for an audit.

  4. Vojtěch Bárta
    Prague, Czech republic
    August 19, 2013, 9:01 am

    Millions of European consumers are also losing their faith in unsustainable palm oil, GMOs, chemistry in foods etc. We want to grow our own food, and / or buy local, organic and fairly sourced food. Boycott dirty corporations! Greetings from Europe!

  5. christine olle
    August 11, 2013, 1:41 pm

    It is totally irresponsible for companies to clear cut rainforests, burn it, and cause the extinction of critically endangered plants and animals not to mention child labor and displacing indigenous people. These ecosystems have survived for millions of years, but humans can destroy them in less than a lifetime. The world needs to take note of this and DEMAND that palm oil be stopped – OH and they are headed to Africa – this world is in big trouble – why do a few humans get to decide what lives and dies all in the name of greed – i am ashamed of the human race……….

  6. Kieran Neville
    August 11, 2013, 5:28 am

    In addition to everything said so far, has anybody asked how many of these companies ever get independently audited that the Greenpalm certificates they buy actually matches the palm oil they use? I’ve heard nobody ever gets audited at all !
    The whole thing is a scam and just a means to do nothing different. Perhaps they should be called GREENWASH CERTIFICATES !!!!

  7. douglas scown
    August 9, 2013, 10:22 pm

    Good article.

  8. Jen Geddes-Davies
    August 9, 2013, 5:49 pm

    I refuse to buy any product containing palm oil or derivatives…………..and I will spread the word as much as I can.

  9. Marianne Robey
    August 9, 2013, 3:38 pm

    We have to stop accepting, as truth, what these mass- producing, self-serving companies are telling us. It doesn’t matter how much cotton wool they wrap around their claims… this article tells us that WE MUST FIND OUT THE TRUTH FOR OURSELVES. Thanks

  10. Donna Hita
    August 9, 2013, 7:32 am

    Great article – the more people are informed, about the disgrace that is the misleading claim by big companies that they source sustainable palm oil so are therefore not culpible when it comes to the destruction of the rainforests, the better we are able to choose to buy alternate brands.
    Most people don’t like what is going on but they don’t know how they can make a difference. We must name & shame companies & stop buying products that contribute to this catastrophy.

  11. Lisa Braden
    August 9, 2013, 1:27 am

    Excellent article, fantastic that people are finally waking up to the mockery that is RSPO & Greenpalm certification. Lucinda & her group at POI are doing a marvelous job of educating consumers (of which I am one) on brands that can/cannot prove their credibility regarding Palm Oil sourcing. It’s good to see them being acknowledged for their tireless work. Again, excellent article :)

  12. Cath Hill
    August 9, 2013, 12:46 am

    Great article that explains very clearly the sham of Green Palm and RPSO. Appalling case of greenwashing.

  13. Yurika Bereux
    August 9, 2013, 12:29 am

    Green washing and consumers need to insist on companies using CSPO

  14. Tanya
    August 9, 2013, 12:23 am

    thank u for brining this to a wider audience , people need to know the truth !!

  15. Annie Pearce
    August 8, 2013, 11:19 pm

    As consumers we have the right to choose and be given appropriate information to do just that. Australia has pathetic labelling laws and business takes advantage by plain misinformation. Organic should mean organic, sustainable, earth friendly, non-toxic, “free from”, these are simply marketing tools and certainly not truthful.

  16. poppy maclean
    canberra australia
    August 8, 2013, 10:42 pm

    so sick and tired of watching homo sapiens destroy the planet in the name of “economic development” – we are a stupid species to be sure – only have to look at that first photograph to realise it.

    i now boycott everything i know has palm oil in it – from cosmetics to detergent, noodles, crackers, soup and back again – and i urge my friends on FB, Twitter and blog readers to do the same

    ignorance is no excuse – the owners of the industries who are wreaking this destruction know full well what they are doing –

    thank you for publishing this article

  17. Cassie Wardle
    August 8, 2013, 10:16 pm

    This is absolute greenwashing, and I think consumers are sick of companies assuming they can get away with things like this.

  18. Nanette Zikan
    Sydney Australia
    August 8, 2013, 10:06 pm

    Will only purchase products with no palm oil or CSPO

  19. Robyn
    August 8, 2013, 9:53 pm

    When you look at the number of businesses that use Palm Oil and the number of products that contain Palm Oil, there is no way that they can all claim that their Palm Oil is either from a sustainable source, or that their certification is valid.
    It is a green wash and the horrible thing is, finding alternatives that don’t contain Palm. Even brands one would expect to have good green and clean potential use Palm Oil in their manufacture. The Australian organisation mentioned above has published a comprehensive list of the names Palm Oil and its derivatives really are.
    And while the debate goes on, rain forests in Borneo are being destroyed and the wildlife habitat gone forever.

  20. Gina
    August 8, 2013, 9:47 pm

    Go Lorinda and LeAnn! I can’t thank you enough for the amazing work you’re doing to help consumers make informed choices and for making global brands take responsibility for damage they’re doing. GreenPalm Certificates are not sustainable nor were they ever meant to be a long term solution the time for action and change is now.

  21. Shaun Tinnion
    August 8, 2013, 9:36 pm

    I find the whole issue confusing. And that is exactly how big corporations would like to keep it. I am going to continue to boycott anything with Palm oil in it until the large organisation are transparent and make it easy for me to choose their product with a clear conscience.

  22. bev
    August 8, 2013, 9:36 pm

    I concur. greenpalm + greenwashing + greeen smoke screen – again someone is getting richer while the earth gets poorer –
    the only truly certified PO is 100% segregated, traceable CSPO, nothing else should ever be acceptable.

  23. Patty Shenker
    Los Angeles, Ca. USA
    August 8, 2013, 9:34 pm

    Great article & move by these two organizations. I also suggest you watch YouTube’s The Sustainability Lie, as it shows the problem quite clearly in 7 minutes. I have been to Borneo & seen the deforestation and met many of the incredible orphaned orangutans & i tell you this is a global tragedy, not just for theirs & other wild species but for all of us as we will not be able to live here either! Wake up, World!

  24. spikey riddoch
    tasmania australia
    August 8, 2013, 9:32 pm

    Blatant widespread greenwash
    The predictable result of economy driven ‘democracy’
    Misinforming and disinforming consumers should be a serious criminal offence.
    Shame most politicians and lawmakers are mere marionettes for mentally ill profiteers.
    Perhaps one day they will realise their artficial gene sweeteners were not worth the destruction of priceless things.

  25. Vanessa
    August 8, 2013, 9:30 pm

    Has anyone lodged a complaint to the ACCC or similar for misleading and deceptive conduct? Million dollar fines and the resulting bad PR might get the attention of these companies

  26. Nancy Tormay
    August 8, 2013, 12:17 pm

    Green washing

  27. Robert Hii
    August 8, 2013, 12:09 pm

    Sounds like greenwashing pure and simple.

    If Greenpalm itself would only allow the claim to “support” sustainable palm oil, then why are these brands claiming to be “sourcing” sustainable palm oil through Greenpalm??