P&G’s Journey to Palm Oil Shared Responsibility Excellence

Procter & Gamble (P&G) was honored in November with the Roundtable on Sustainable Palm Oil (RSPO) Shared Responsibility Excellence Award. This recognition is a significant milestone for all of us who have dedicated more than a decade to promoting responsible palm sourcing, often working behind the scenes.

While the award acknowledges our efforts in driving palm sustainability, it also symbolizes a larger journey filled with challenges, collaboration and an unwavering commitment to enhancing the communities and ecosystems we impact. This journey has been rewarding, especially when we have witnessed the positive changes resulting from multi-stakeholder collaborations or when hearing gratitude from smallholders who benefit from our initiatives.

However, this path has not been without its frustrations; the sustainability dialogue can be rife with conflicting opinions, agendas and misunderstandings. P&G’s Shared Responsibility story is one of men and women who share a common belief with me: the journey holds as much significance as the outcomes.

Since joining RSPO in 2011, we have woven palm sustainability into our business model, ensuring that our policies meet the highest environmental and social standards. We developed a multi-year action plan to operationalize these policies in our daily processes and stakeholder interactions. Open dialogue and constructive criticism are welcomed; they challenge us to go beyond compliance and showcase tangible, lasting benefits for both people and the planet.

As a result, we articulated our responsible palm sourcing strategy around three key pillars:

1. Sourcing Fundamentals: Establishing clear expectations for our suppliers.

2. Due Diligence: Verifying and enforcing those expectations.

3. Positive Impact Partnerships & Programs: Driving industry-wide changes to make a tangible difference.

In 2015, we launched the Center for Sustainable Small-owners (CSS) in collaboration with the Asia School of Business. This initiative serves as a one-stop resource center, connecting local experts, agronomists and researchers to support smallholder partners in their sustainable agriculture journeys.

By providing access to training and guidance on best practices, we have achieved a more than 30% increase in yields and a 25% boost in income for participants. To date, more than 2,400 smallholders have benefited, with 407 achieving RSPO certification and many more on track.

In 2020, with other companies, we co-founded the RIMBA Collective, which has contributed to the protection and restoration of over 220,000 hectares of landscape. This initiative exemplifies how corporate entities can effectively partner with local communities and non-governmental organizations (NGOs) to drive meaningful environmental change.

We reached a major milestone in 2021, when we achieved 100% RSPO certification for all palm oils and derived products used in P&G brands. This accomplishment is particularly noteworthy given that P&G primarily utilizes palm kernel oil, whose certified availability is limited due to insufficient certified plantations.

The disparity in the ratio of palm oil to palm kernel oil — approximately 10:1 — highlights the challenges that plantation owners face in certifying their operations without guaranteed outlets for certified palm oil. As most of the palm oil produced is used for cooking oil and biofuels, which often do not require RSPO certification, maintaining this certification level remains a continuous effort.

Looking ahead, while the RSPO Shared Responsibility Award is a fantastic recognition, it represents only a step in our longer journey. We must continuously improve our efforts and integrate climate considerations into our strategies. Climate change poses significant challenges for our supply chain partners but also offers momentous opportunities. Photosynthesis is one of the most accessible and cost-effective solutions for carbon capture and utilization.

By uniting all stakeholders — governments, NGOs, corporate entities and civil society — to further drive and expand sustainable palm practices, this industry can also become a momentous solution in humanity’s drive to meet its decarbonization objectives. And you can count on us to also play our part in this exciting and essential adventure!