Palm oil is one of the world’s most widely used vegetable oils, found in everything from food products to cosmetics to biofuels. Its versatility and cost-effectiveness have made it a controversial staple in global supply chains—specifically regarding whether or not sustainable palm oil is possible.

There’s no denying the unsustainable level of growth of the palm oil industry. Between 1970 and 2020, palm oil production saw a 40-fold increase, from 2 million tons to 80 million tons in just 50 years.

This expansion has been linked to deforestation, loss of biodiversity, and direct threat to over 200 species due to habitat loss, leading to a growing call for more sustainable practices within the industry.

But going palm oil free isn’t necessarily the solution either. Rather, it’s a band-aid to a big issue that can only be solved if we can achieve a genuinely ethical and sustainable palm oil industry. So can we?

Contents: The Ethical Palm Oil Debate

  1. The Roundtable On Sustainable Palm Oil (RSPO) Jump to section
  2. Arguments For Sustainable Palm Oil Jump to section
  3. Is Certified Palm Oil A Solution? Jump to section

The Roundtable On Sustainable Palm Oil (RSPO)

Image by kjorgen ( sustainable-palm-oil)

In 2004, in an effort to curb the devasting impact of palm oil, various stakeholders in the palm oil industry (growers, producers, retailers, manufacturers, traders, and NGOs) formed a voluntary not-for-profit association called the “Roundtable on Sustainable Palm Oil” (RSPO). The RSPO’s stated objective is to promote the growth and use of sustainable palm oil products through global standards and stakeholder engagement.

To achieve this, the RSPO established a set of global principles and criteria, including transparency, compliance with local laws and regulations, environmental responsibility, and conservation of natural resources. Growers are then audited by independent bodies against these criteria and if found to be compliant they can then certify their palm oil plantations as RSPO certified, allowing them and the companies who purchase their palm oil produce to use the RSPO logo.

Problem solved? Sadly, no…

Unfortunately, there is still a long way to go before we have a truly sustainable palm oil industry, yet boycotting the crop altogether isn’t necessarily the answer either.

Arguments For Sustainable Palm Oil

Image by slpu9945 ( sustainable-palm-oil)
Palm Oil Is Really No Worse Than Other Vegetable Oils

Palm oil expansion may be devasting, but palm oil isn’t the only crop to blame. In fact, it’s the expansion of ALL oil crops (soybean, corn, sunflower seed, canola, etc), which cumulatively take up 322 million hectares worldwide—which, for reference, is about the size of India. Seed oils, on the whole, are so pervasive that they now make up 30% of the entire average caloric intake of people in the US and UK.

Therefore, simply substituting palm oil with other vegetable oils is an inadequate solution.

Especially considering palm oil is the most efficient oilseed crop in terms of land use, producing four times more oil per hectare than sunflowers, over six times more than soybeans, and nine times more than olives. All told, palm plantations produce about 36% of all vegetable oil on less than 9% of the land allocated to oil crops.

Switching to these less efficient crops would require expanding agricultural land, which could lead to even greater deforestation, biodiversity loss, and increased carbon emissions. This land expansion would likely occur in the same tropical regions, exacerbating environmental and social issues. Furthermore, these alternative crops typically require more water and fertilizers, which would add additional strain on natural resources and potentially harm local ecosystems.

The Palm Oil Industry Creates Jobs

The palm oil industry is a significant economic driver in many producing countries, such as Indonesia, Malaysia, and Nigeria. It employs millions of smallholder farmers and workers, helping to alleviate poverty in rural areas.

For many communities, palm oil cultivation is a vital source of income, and ceasing or drastically reducing production could lead to widespread unemployment and economic instability.

The RSPO emphasizes that sustainable palm oil production can continue to support livelihoods while minimizing environmental impact. The industry’s growth must be managed in a way that balances economic benefits with the need to protect forests and respect human rights.

Palm Oil Isn’t Going Anywhere

The entrenched economic importance of palm oil means it is unlikely to be fully replaced. After all, it’s in half the products we buy. Despite the controversy surrounding palm oil, its demand remains robust, particularly in Asia and the Middle East, where it is a staple ingredient in food products, cosmetics, and biofuels.

While the Western world has driven demand for sustainable palm oil and the protection of tropical rainforests, the global market’s dynamics mean that even if Western consumers reduced their palm oil consumption, the overall demand would not diminish significantly.

Yet without the incentive provided by Western markets for sustainably produced palm oil, there is a risk that producers might revert to unsustainable practices. This could lead to a regression to the pre-2004 era, before the establishment of the RSPO, when the palm oil industry was largely unregulated.

Is Certified Palm Oil A Solution?

Image by slpu9945 ( sustainable-palm-oil)

Critics argue that many corporate sustainability pledges, such as Unilever’s commitment to achieving 100% sustainable palm oil by 2030, may fall short of their ambitious goals. However, these initiatives still represent steps toward more responsible production practices.

The reality is that, in the current global economy, sustainable palm oil is likely the most realistic approach to mitigating the industry’s negative impacts. Completely boycotting palm oil may lead to unintended consequences, such as increased demand for less efficient oil crops or a shift to less regulated markets, further harming the environment.

There is no simple solution to the complex issues surrounding palm oil production. While sustainable palm oil is part of the answer, it is not a panacea—nor is boycotting palm oil.

The current answer lies somewhere in the middle. As consumers, the best choice we can currently make is to reduce our reliance on palm oil (and all oil crops, if possible), thereby reducing the overall demand for palm oil. This can include opting for some foods and cosmetics free of palm oil, like palm oil free shampoo. For example, choosing peanut butter made with just peanuts, without added palm oil to make it ‘no-stir,’ not only tastes better but is much healthier for you and the world at large.

That said, we’re not suggesting you cut it out entirely, but when you do choose products with palm oil, choose those from brands that source their palm oil from RSPO-certified sources. This sends a clear message to the industry that unsustainable practices are unacceptable. Continued pressure on companies to improve their sourcing practices can help to drive the industry toward more sustainable outcomes.