Palm Oil - The Facts Explained
Written by Wildlife & Welfare Project Manager Coral Lutteridge
What is Palm Oil?
Palm oil is one of the most widely used vegetable oils in the world. It is derived from the fruit of oil palm trees, which are native to West Africa but are now grown extensively in Asia, Africa, and South America.
Palm oil is versatile and has many uses, from cooking oil and margarine to soap and cosmetics, and is found in an estimated 50% of packaged foods in supermarkets. However, despite its usefulness, there are growing concerns about the environmental and social impacts of palm oil production.
Deforestation
Palm oil production is a major driver of deforestation, particularly in Southeast Asia, where vast areas of the world’s most biodiverse forests have been cleared to make way for oil palm plantations. Habitats of many already endangered species have been destroyed, such as the Orangutan, pygmy elephant, and Sumatran rhino.
Deforestation not only destroys wildlife habitat, but it also contributes to climate change by releasing carbon dioxide into the atmosphere. Furthermore, palm oil production is responsible for significant greenhouse gas emissions due to land-use change, fertiliser use, and transportation.
In addition to deforestation, palm oil production has other environmental impacts. It requires large amounts of water and fertiliser, which can lead to soil erosion, water pollution, and other environmental problems. The use of pesticides and herbicides also poses risks to human health and the environment.
Social Impact
Palm oil production also has a significant social impact. Many small farmers and indigenous communities are displaced by large-scale plantations, which can lead to land conflicts and human rights issues. There are also concerns about labour practices in the palm oil industry, including the use of forced and child labour.
Palm oil production can have a negative impact on local communities’ health and well-being. The burning of forests to clear land for plantations releases hazardous pollutants into the air, leading to respiratory problems and other health issues. The use of pesticides and herbicides also poses risks to human health.
Fact:
In Indonesia and Malaysia together, approximately 4.5 million people earn a living from palm oil.
Sustainability Efforts
The good news is that palm oil can be produced sustainably. This transition towards sustainable palm oil production involves a collective responsibility among companies, governments, and consumers.
The Roundtable on Sustainable Palm Oil (RSPO) was established in 2004 and is a certification program that promotes sustainable palm oil production. The RSPO sets standards for environmental and social responsibility, and certified producers must meet these standards to be eligible for the RSPO label.
The RSPO establishes production standards for palm oil growers that outline optimal practices for both production and sourcing. With widespread industry support, the RSPO urges companies to:
Implement strong policies to eliminate deforestation, conversion of natural ecosystems (like peatlands), and human rights violations from their supply chains
Purchase and utilise RSPO-certified palm oil throughout their global operations
Maintain transparency in their palm oil sourcing and usage by identifying their suppliers and the sources of their products.
Other initiatives, such as the Palm Oil Innovation Group (POIG), aim to go beyond the RSPO standards and promote even more sustainable practices. The POIG includes companies, NGOs, and social and environmental groups working together to create a more sustainable palm oil industry.
Is the Answer to Boycott Palm Oil?
The short answer is, no. Palm oil is highly efficient, delivering greater oil yield per land area than any other comparable vegetable oil crop. Despite occupying just under 6% of the land dedicated to vegetable oil production, palm oil alone satisfies 40% of global demand for vegetable oils. Shifting to alternative oils like soybean, coconut, or sunflower would require 4-10 times more land, threatening other habitats, species, and communities - leading to even further environmental and social harm. In addition, boycotting palm oil also ignores the livelihoods of the small-scale farmers that rely on its production and their main source of income.
Instead, we must demand action to tackle the issue of unsustainable production and make systematic changes to progress towards a resolution.
Fact:
Oil palm requires the least amount of land (5.5%) compared to other oilseed crops, but produces the highest output (32%) globally. It uses less than half the land of other oil crops to produce the same amount of oil.
Conclusion
Palm oil is a versatile and important commodity, but its production has significant environmental and social impacts. To address these concerns, it is essential to promote sustainable palm oil practices and support initiatives that prioritise environmental and social responsibility. As consumers, we can also play a role by choosing products made with sustainable palm oil and supporting companies that prioritise sustainability in their supply chains.
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