Latest news with #NDPE
Euractiv
22-07-2025
- Business
- Euractiv
Can palm oil go net zero? Inside the push to cut climate impact
Palm oil is one of the most ubiquitous substances in the goods we consume, found in everything from chocolate to cosmetics. It's in nearly 50% of the packaged products we see in supermarkets, and it's also used in animal feed and as a biofuel in many parts of the world. The reason is that it's an extremely versatile oil with numerous properties and functions. It is semi-solid at room temperature, making it suitable for use in food, and it's resistant to oxidation, which can extend the shelf life of products. It's also odourless and colourless, so it doesn't alter the look or smell of food products. It would therefore be very difficult to replace with another ingredient. But palm oil has long been linked to deforestation, fires and greenhouse gas emissions. The forest loss, together with the conversion of carbon-rich peat soils, has caused millions of tonnes of greenhouse gases to escape into the atmosphere. Still, could there be a way to reap the benefits of palm oil without contributing to climate change? Today, producing countries, major brands, and local farmers are betting that new technology and rules can rewrite that story - and even push palm oil toward net-zero emissions. The biggest challenge is stopping indirect land use change (ILUC), the hidden climate cost when forests are cleared elsewhere to make room for crops that have been displaced by palm oil cultivation. For Indonesia and Malaysia, the two biggest producers of palm oil, these efforts have been particularly important. 'In Malaysia, palm oil is produced in accordance with sustainable principles and criteria under the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which has been implemented on a mandatory basis from January 2020,' says Dr. Ahmad Parveez Ghulam Kadir, Director-General of the Malaysian Palm Oil Board. 'The MPSO certification has a deforestation cut-off date of 31 December 2019, which strengthened the requirements for new planting.' Satellite eyes in the sky Over the past two decades, pressure from consumers and regulators has motivated palm oil giants to clean up their supply chains. At the heart of this effort is traceability - proving exactly where each tonne of palm oil comes from. Multinational companies like Unilever, Ferrero, Nestlé, and Kao now monitor vast plantations with high-resolution satellite imagery and AI detection tools. Ferrero, for example, has tracked 100% of its palm oil to the plantation level since 2016 and uses Starling satellite monitoring to flag forest loss in real time. Unilever's NDPE (No Deforestation, No Peat, No Exploitation) dashboard tracks 20 million hectares globally. Meanwhile, producing countries are tightening the rules. Indonesia has launched its e-STDB traceability platform, which requires farmers and companies to register their palm plantations on a national blockchain-based database. Malaysia is developing the National Oil Palm Traceability System, to establish full traceability across the supply chain. 'This system is anchored by the Sawit Intelligent Management System (SIMS) for traceability data and will be integrated with GeoSawit and e-MSPO, two important platforms that support geospatial mapping and sustainability certification, respectively,' says Ahmad Parveez. He said, 'The integrated approach enables the tracking of the origin of palm products along the supply chain from the plantation and smallholders. The traceability system is crucial in the context of sustainability and climate commitments, including monitoring, management and reporting of emissions, among others.' These advances are being supercharged by technology. New satellite monitoring systems - like Earthqualizer, and Global Forest Watch - use AI to spot illegal land clearing, even under cloud cover. This surveillance is giving companies and governments near real-time alerts when new plantations appear on high-carbon peatlands or primary forests. Changes on the ground Palm oil emissions don't just come from clearing forests, but also from methane leaking from palm oil mills. Malaysia's Sustainable Palm Oil Roadmap encourages mills to capture methane and turn it into biogas, cutting emissions by nearly 40% per tonne of crude palm oil, according to a 2023 industry report. Meanwhile, projects like PALMSTEP in Central Kalimantan, funded by the European Union, help smallholder farmers get certified and access digital tools for traceability and regenerative farming, reducing the pressure to expand into forests. Palm oil mills emit methane from wastewater and CO₂ from energy use. Methane-capture biogas systems, together with switching to renewable energy, can reduce mill CO₂e intensity by around 40%, according to experts. Energy-efficient mills coupled with zero-burning policies can also help combat both direct emissions and ILUC pressures. 'The cooperation among countries in Southeast Asia has continued to ensure conservation of forest and biodiversity as well as reduce impact on the environment and contribute to climate action,' says Parveez. 'One of the examples is the Heart of Borneo, a trilateral cooperation between Brunei, Indonesia and Malaysia covering an area of over 20 million hectares that help to strengthen the world's resilience to climate change by conserving carbon sinks and creating a huge green lung for the world, and at the same time protecting the livelihoods of the forest dependent communities.' He noted that in addition, Malaysia has the Central Forest Spine initiative that covers 5.3 million hectares in Peninsular Malaysia as part of the conservation efforts at the national level. Is it working? So far, there has been progress, but not as much as campaigners would have liked to see. The NGO WWF has said that it is better to stick with palm oil rather than alternatives like soybeans, coconut or sunflower oil because they require between four to ten times more land. But they say that while progress is being made on reducing palm oil's climate and environmental impact, change isn't coming fast enough. Studies show deforestation rates linked to palm oil have fallen in Indonesia and Malaysia since the destructive haze years of 2015, when fires raged across peatlands, releasing over 500 million tonnes of CO₂. The World Resources Institute reports that palm-related deforestation dropped by more than 40% between 2012 and 2022, thanks in part to corporate 'zero deforestation' pledges and tighter land laws. 'Palm oil presents a positive example of decoupling commodity production from deforestation,' says Anita Neville, Chief Sustainability and Communications Officer at the Singapore-based palm oil company Golden Agri-Resources. Neville remarked that forest loss linked to palm oil production in Indonesia, the world's largest palm oil producer, fell by more than 90% from its peak in 2012 to 2022, while palm oil production continued to increase. But scientists warn that indirect land use change remains a threat if demand keeps rising. If plantations expand into untouched forests or displace other crops to new frontiers, the climate gains vanish. The Roundtable on Sustainable Palm Oil (RSPO), formed in 2004, has been working to ensure that climate gains are maintained. RSPO has production standards for growers that set best practices for producing and sourcing palm oil, and it has the buy-in of most of the global industry. Companies can certify their products with the RSPO label to demonstrate to consumers they are part of these efforts. Nearly 20% of global palm oil is RSPO-certified. The world's top palm oil producers have big climate promises. Indonesia aims for net-zero emissions by 2060, while Malaysia wants to get there by 2050, leaning heavily on transforming its palm sector. Major buyers like Unilever, Nestlé, and Ferrero have pledged to buy 100% sustainably sourced palm oil within the next two years. Still, critics argue that global demand and enforcement gaps could undermine these ambitions. [Edited By Brian Maguire | Euractiv's Advocacy Lab ]
Mid East Info
24-06-2025
- Business
- Mid East Info
IFFCO Group Releases Third ESG Report, Accelerates Progress Toward 2030 Sustainability Goals - Middle East Business News and Information
30% of UAE fleet now operates on biofuels (B7), supporting transport decarbonization and Net Zero 2050 targets Water intensity reduced by 8% across 23 facilities, highlighting the integration of conservation into daily manufacturing On-site renewable energy generation more than doubled, reaching 5,140 MWh Transportation-related carbon footprint reduced to 7%, down from 11% in 2021 Palm oil traceability to plantation reached 93.6%, a 9.6 percentage point year-on-year increase, underscoring supply chain transparency and alignment with NDPE standards DUBAI, UAE, June 2025: IFFCO Group, the leading FMCG multinational company headquartered in the UAE, released its third annual Environmental, Social and Governance (ESG) Report, marking a significant year of progress across operations, sourcing and packaging. The 2024 report reflects IFFCO Group's transition from planning to delivery, backed by the launch of its Sustainability Strategy 2030. The strategy introduces 9 ESG programmes aligned with best global frameworks, including Climate targets in line with the Science Based Targets Initiative (SBTi) standards. Each programme is supported by three and six-year roadmaps, KPI's, and financial commitments, to ensure delivery and clear accountability across business functions. Key highlights from the 2024 ESG Report include: IFFCO more than doubled on-site renewable energy generation in 2024, reaching 5,140 MWh, enough to power approximately 480 UAE homes for a full year. The Group also achieved an 8% reduction in water intensity, reinforcing its focus on operational sustainability. IFFCO deepened its internal ESG integration by embedding sustainability-linked KPIs into the performance metrics of over 900 employees, a 13% increase from the previous year, reaffirming a Group-wide culture of ownership and accountability. IFFCO Group launched its Consumer Packaging Roadmap 2030, targeting reductions in virgin plastic use, launching packaging with recycled PET, and further adoption of renewable and recyclable packaging solutions across its product portfolio. Transportation-related carbon footprint fell to 7% share in total carbon footprint, down from 11% in 2021. This was achieved through logistics optimization and the conversion of 30% of the UAE fleet to biofuels B7, aligning with the UAE's Net Zero 2050 targets. Palm oil traceability to the plantation level reached 93.6%, a 9.6 percentage point increase from 2023, highlighting the Group's commitment to ethical sourcing and compliance with NDPE (No Deforestation, No Peat, No Exploitation) standards. Speaking on the significance of these milestones, Rizwan Ahmed, Executive Director at IFFCO Group, noted: 'At IFFCO Group, sustainability is a powerful driver of innovation, growth, and long-term value. It is not a side agenda; it is the foundation upon which we are building the future of responsible food manufacturing. The release of our 2024 ESG Report marks a decisive shift from ambition to action, guided by our Sustainability Strategy 2030. This strategy is more than a roadmap; it is a commitment to performance, accountability, and transformation. By embedding ESG principles across our operations, investing in renewable energy, and reimagining packaging and sourcing, we are shaping a future-ready organisation that aligns with the UAE's Net Zero vision and global climate goals.' Our progress is a testament to our conviction that long-term value is created by acting with purpose, delivering operational excellence while doing what's right for people, the planet, and future generations.' IFFCO's latest milestones reflect the Group's view of sustainability as a lever for long-term growth, efficiency, and trust. By transforming how it manufactures, sources, and delivers its products, IFFCO is positioning itself as a future-ready FMCG leader, embedding ESG strategies to drive innovation and value. 'In 2024, we translated bold ambition into tangible action,' said Dina Epifanova, Group Head of Sustainability. 'This was a year of purposeful effort, advancing smarter sourcing, strengthening traceability, and embedding sustainability across every layer of our operations. We are building a resilient foundation for long-term impact, one that creates shared value for our business, empowers our partners, and uplifts the communities we serve.' The Group remains an active participant in the broader sustainability ecosystem, working collaboratively with partners and stakeholders to shape the future of responsible food manufacturing. About IFFCO Group: Established in 1975, IFFCO is a leading multinational FMCG group headquartered in the UAE. Its leading FMCG brands, including London Dairy, Tiffany, Noor, Rahma, Al Baker, Hayat and Savannah, and a portfolio of industry solutions and services enrich the lives of millions of consumers and customers globally. The company has 95 operations in 50 Countries, supported by around 15,000 employees, and its 80+ brands are available in over 100 countries.
