Towards transparency for a clearer picture of the palm-oil supply chain

HAVING pumped in billions of dollars into the economies of countries such as Malaysia and Indonesia, the palm oil industry will be worth an estimated US$88 billion by 2022. An extremely versatile ingredient, palm oil is found in consumer products ranging from chocolate to cosmetics.

On the flipside, the economically lucrative industry has been blighted by issues of deforestation, climate change, human-rights abuse and invasion of community spaces over the past years. With a recent report by Amnesty International highlighting the plight of child workers toiling under dangerous conditions in the fields, the call for greater transparency and traceability within the supply chains has gathered significant momentum.

Consumers and companies must understand where products are being sourced from in order to comprehend the potential impact. This allows companies to identify and prioritise areas of high environmental and social risk and allocate resources to minimise risk in these areas.