POIG members among those leading the way of WWF Palm Oil Buyer Scorecard 2020

Ferrero and L’Oreal, POIG members assessed by the Scorecard ranked first and second respectively under the manufacturing sector, setting benchmarks in supply chain innovations for companies to follow.

WWF’s palm oil scorecard reveals that most brands are falling short when it comes to supporting sustainable palm oil production and tackling tropical deforestation. In the recently released Palm Oil Buyer Scorecard, no company has attained the top score in WWF’s new assessment, which reviews what global brands are doing to reduce adverse impacts caused by the unsustainable sourcing of the most popular vegetable oil from vulnerable tropical habitats.

Despite many long-standing commitments by brands and industry coalitions to eliminate the destruction of nature, including deforestation, from their palm oil supply chains, the scorecard shows that most companies still have a long way to go before they can prove to consumers that they are delivering on these promises. Meanwhile, only one company, the consumer goods manufacturer Ferrero, has scored over 20 points (out of the maximum 22), sending an encouraging signal to the rest of the industry that sustainable and deforestation-free palm oil is achievable. The remaining POIG members that were assessed, including Danone and Barry Callebaut, all scored well above the overall average of the manufacturing sector.

In this fifth edition of a decade-long series, the new WWF’s Palm Oil Buyers Scorecard examines 173 major retailers, consumer goods manufacturers and food service companies from the US, Canada, Europe, Australia, Singapore, Indonesia and Malaysia.  As we enter 2020 and a new decade, the Scorecard has reset the bar for companies with the expectation that they take commensurate, accelerated action in response to the planet’s escalating environmental and climate challenges.

Expanding on its previous Scorecards, WWF measured not only how companies performed on basic steps such as using 100% sustainable palm oil in their own supply chains, but also additional actions that prove a company is truly acting responsibly. This includes actions to protect and positively benefit smallholders, communities and biodiversity on the ground in the landscapes most at risk from irresponsible palm oil expansion.

“Given the challenges faced by our planet today, coupled with the devastating effect that unsustainable palm oil has had, companies need to do more than simply reduce their own supply chain risk,” said WWF Palm Oil Lead Elizabeth Clarke. “It is essential that companies take action, and in this Scorecard WWF recognises the importance of action-orientated platforms such as POIG and the willingness of its members to support sustainable palm oil.”

POIG members recently agreed to a new set of indicators for its Retailers & Manufacturers members that sets stringent requirements for the procurement of sustainable and responsible palm oil. They have come together to help find solutions to the challenges the palm oil industry is facing and to contribute to the transformation of the way palm oil is produced.

“Already in 2015, we were one of the first companies to source 100% certified as segregated palm oil. Moving forward, we recognized the need to support projects which go beyond certification to broaden sustainability standards in the industry. We very much appreciate that our efforts are being recognized by WWF, who is a very important stakeholder in driving the sustainability of the whole palm oil sector,” said a Ferrero spokesperson. “This a great encouragement to continue our journey.”