27 Oct 2009 --- Nestlé has announced its commitment to using only Certified Sustainable Palm Oil (CSPO) by 2015, when sufficient quantities are expected to be available.  This follows a detailed review of Nestlé’s palm oil supply chain. Under its policy on Environmental Sustainability, Nestlé has pledged to give preference to suppliers who strive to improve the efficiency and sustainability of their operations and use of resources.

Nestlé does not use crude palm oil nor has any direct links to the palm oil plantations. The Company uses palm kernel oil for some of its confectionery and dairy products, but it is not a major raw material used.  Nestlé also buys processed palm oil and processed oil mixes which often comes from multiple sources.  Nestlé continues to work with suppliers to investigate the traceability of all possible sources of any palm oil used.

Over the last few years, Nestlé has been closely associated with the Roundtable on Sustainable Palm Oil (RSPO), an international non–profit association founded in 2004 to promote the growth and use of sustainable palm oil.  Nestlé has now applied for full corporate membership of the RSPO, strengthening its efforts to find an effective multi–stakeholder solution to combat the environmental threat caused by the planting of palm oil plantations in South East Asia.

Indonesia and Malaysia produce almost 90% of global supply of palm oil, and in total, global production is about 42 million metric tonnes.  Nestlé uses 0.7% of the global supply (320,000 metric tonnes).

Palm oil, which is used in producing household items such as soap and detergent, and even for animal feeding and energy generation, is also used as a material from which biofuels are produced.  Nestlé has repeatedly spoken out against the production of such fuels from materials used for food.

The news came as Marks & Spencer (M&S) became the world’s first retailer to purchase GreenPalm certificates to cover its entire palm oil usage.

The certificates will cover the palm oil used in almost 1,000 M&S food, beauty and home products each year, with the money spent on certificates supporting manufacturers in the production of certified sustainable palm oil.

The move is a critical first step as part of M&S’ Plan A commitment to only use certified sustainable palm oil in all of its products by 2015, and to send a clear signal of demand to the market.

Richard Gillies, Director of Plan A says: “Sustainable palm oil production is central to our commitment to protect the world’s resources so that we can reduce the impact of CO2 emissions linked to deforestation.

“In order to encourage real change within the palm oil industry, we have to take a joined-up approach. That’s why alongside our commitment to the RSPO, we’ve been working with WWF in the Heart of Borneo to rehabilitate over 120 acres of forest. It forms an important wildlife corridor which will connect two previously split areas of the forest to allow animals, namely orangu-tans, to roam freely.

Paul Willgoss, M&S Head of Food Technology, says: “Over the last two years we’ve been using alternatives to palm oil wherever possible, for example rapeseed oil as a healthier alternative in our coated fish range, which includes fish fingers.

“Where palm oil can’t be replaced as an ingredient, we will only use certified sustainable palm oil. By early 2010 we will have the UK’s widest selection of certified sustainable palm oil products, with a range of nine items including cookies, oatcakes and roast potatoes*.”

Adam Harrison, Senior Policy Officer for Food & Agriculture at WWF-UK, said: “WWF welcomes M&S’ decision to purchase GreenPalm certificates for 100% of its palm oil usage. It is vitally important that all retailers and manufacturers show by their actions that they want to eliminate the negative impacts of our demand for palm oil. By supporting sustainable production in this way M&S have demonstrated just the sort of action that WWF wants to see others take now that certified sustainable palm oil is available for all to buy.”

Sandra Charity, Head of Forest Programmes at WWF-UK, said: “By sourcing sustainable palm oil and supporting grassroots initiatives, corporations like M&S are helping to conserve tropical rainforests such as those in Borneo, home to the last surviving orang-utans, which currently has one of the highest deforestation rates in the world. Only half of the original forest is left. Thanks to M&S’ support, in addition to the wildlife corridor which has already been created, by 2011 a further 247 acres of damaged rainforest in the Heart of Borneo will be restored. Vital new activities to monitor and protect the local orang-utan population will also be implemented. This represents a significant contribution to helping endangered species in the area survive”.

The GreenPalm ‘Book and Claim’ (B&C) system provides tradable certificates for Roundtable on Sustainable Palm Oil (RSPO) certified sustainable palm oil to palm oil users. Producers can then offer these certificates on a web-based transaction system to retailers and manufacturers who choose to support the production of certified sustainable palm oil and or their derivatives.

By the start of 2010 M&S will be using certified sustainable palm oil in:

• Cookie Selection Carton 500g
• Cookie Selection ‘Tram’ Tin 500g
• Oatcakes 200g
• Fresh Chips 450g
• Parmentier Potatoes 400g
• Maris Piper Crispy Potato Wedges 400g
• Potato Rosti 300g
• Roasting Potatoes 450g
• Parsnips for Roasting 300g