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BASF releases fifth Palm Progress Report

On July 15th, 2021 BASF launched the fifth edition of its Palm Progress Report featuring figures for 2020.

Palm kernel oil is one of BASF’s key renewable raw materials and its primary derivatives which are mainly used to produce ingredients for the cosmetics, detergent and cleaner industries, as well as in human nutrition. Palm oil remains the most widely consumed vegetable oil in the world, found in half of all packaged products. In the decade from 2003 to 2013, global demand for palm oil more than doubled and since then has continued to rise.

What are the main points in the progress report for 2020?

  • From 2020, BASF sources all palm (kernel) oils exclusively from RSPO-certified sustainable sources
  • By 2025, BASF’s commitment to certified sourcing includes key palm oil and palm kernel oil-based intermediates
  • BASF’s portfolio for palm-based surfactants with RSPO certification continues to grow

In the past year, BASF has reached an important milestone on the road to sustainable palm oil. The company has committed to source palm (kernel) oils exclusively from RSPO-certified sustainable sources since then. In 2020, BASF purchased 227,213 metric tons of RSPO-certified sustainable palm (kernel) oil. This corresponds to 100 percent of the total volume purchased. In addition, BASF made further progress in developing transparent supply chains: almost 95 percent of the global oil palm footprint – a total of 441,107 metric tons – could be traced back to the oil mill.

What is RSPO-certified sustainable palm oil?

RSPO – The Roundtable on Sustainable Palm Oil is a not-for-profit that unites stakeholders from the seven sectors of the palm oil industry: oil palm producers, processors or traders, consumer goods manufacturers, retailers, banks/investors, and environmental and social non-governmental organizations (NGOs), to develop and implement global standards for sustainable palm oil.

The RSPO has developed a set of environmental and social criteria with which companies must comply in order to produce Certified Sustainable Palm Oil (CSPO). When they are properly applied, these criteria can help to minimize the negative impact of palm oil cultivation on the environment and communities in palm oil-producing regions.

The RSPO certification process is currently the most transparent and effective initiative globally to improve the entire palm oil sector. It provides the necessary infrastructure to monitor the market transformation in a transparent manner. BASF actively supports the Roundtable on Sustainable Palm Oil and has been working to foster the physical transformation of the industry.

BASF is now fully focused on the other part of its 2015 commitment: to also include the commitment of certified sourcing to those significant intermediates which are based on palm oil and palm kernel oil by 2025, e.g. fatty alcohols and fatty acids.

Read the most recent Palm Progress Report here or download the pdf here!