Lexi Webster
Palm oil is the most widely consumed vegetable oil globally, with half of all packaged products containing it. While it is mostly produced in Indonesia and Malaysia, it is also used in Australian grocery products and food services. The WWF has been working with influential companies in the palm oil supply chain to lead markets away from sources linked to deforestation, habitat loss, and social conflict. Many major Australian businesses have committed to converting to sustainable palm oil, but significant work remains to be done.
| Characteristics | Values |
|---|---|
| Global production | Indonesia and Malaysia produce 86% of the world's palm oil |
| Global demand | Set to skyrocket due to the growing global population and wealth |
| Australian demand | Palm oil is found in around 50% of packaged foods |
| Australian consumers | Many Australians are unaware of the presence of palm oil in products |
| Australian businesses | Many major Australian businesses have made commitments to convert to using sustainable palm oil |
| Australian government | A group of Ministers in the Ministerial Forum on Food Regulation will decide on the introduction of mandatory palm oil labelling |
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What You'll Learn
Palm oil in Australian products
Palm oil is the most widely consumed vegetable oil globally, and half of all packaged products contain it. It is present in ice cream, instant noodles, shampoo, lipstick, and other products. As the global population increases and becomes wealthier, the demand for palm oil is expected to soar.
Indonesia and Malaysia produce 86% of the world's palm oil, with 90% of the world's oil palm trees grown on a few islands in Malaysia and Indonesia. These islands contain some of the greatest biodiversity on Earth. The production of palm oil has led to the destruction of rich, green rainforests and the loss of habitats for several endangered species like orangutans, elephants, rhinos, and tigers. It has also been associated with robbing Indigenous Peoples of their land and livelihoods.
Palm oil is present in Australian grocery products and food services. Many Australians are unaware that palm oil is often listed as 'vegetable oil' on product labels. This lack of transparency makes it difficult for consumers to make informed choices and may unknowingly contribute to environmental destruction.
To address these concerns, organizations like WWF-Australia and Zoos Victoria are advocating for mandatory labelling of palm oil on products. WWF-Australia has also been working with companies along the palm oil supply chain to promote sustainable practices and increase the supply of Certified Sustainable Palm Oil (CSPO) in the Australian market. Some Australian businesses have made commitments to convert to using sustainable palm oil, but significant work remains to be done to fulfill these promises.
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Environmental impact
Palm oil is the most widely consumed vegetable oil globally, and half of all packaged products contain it. Indonesia and Malaysia produce 86% of the world's palm oil, and it is crucial to their economies. However, the environmental impact of palm oil production in these countries has been devastating.
The clearing of land for palm oil plantations has destroyed vast swathes of rich, green rainforest, threatening the habitats of several endangered species like orangutans, elephants, rhinos, and tigers. The draining and conversion of tropical peat forests in Indonesia are particularly damaging as these forests store more carbon per hectare than any other ecosystem in the world. Forest fires used during clearing release sequestered carbon dioxide into the atmosphere, contributing to climate change and greenhouse gas emissions.
Palm oil plantations are expanding more rapidly than almost any other agricultural commodity, and this expansion is directly linked to deforestation and habitat loss. The biggest impact of unsustainable palm oil production is the large-scale devastation of tropical forests, which can lead to significant soil erosion and water pollution. The indiscriminate application of pesticides and fertilisers can further pollute surface and groundwater sources.
In Australia, the use of palm oil in grocery products and food services remains a contentious issue for consumers and environmental advocacy groups due to the negative environmental impacts of palm oil cultivation. Some Australian businesses have committed to converting to sustainable palm oil, and there are opportunities for the Australian industry to collaborate with Indonesia, Malaysia, and other palm oil-producing countries in the region. Greenpeace Australia Pacific is also actively working to stop the sourcing of unethical "dirty palm oil" to protect the homes of indigenous peoples and endangered species.
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Unsustainable production
Palm oil is the most widely consumed vegetable oil globally, and half of all packaged products contain it. As the global population increases, the demand for palm oil is set to increase. Indonesia and Malaysia produce 86% of the world's palm oil, and it is crucial to their economies. However, the production of palm oil has led to the destruction of vast swathes of rich, green rainforests.
In Indonesia, forest fires during clearing release sequestered carbon dioxide into the atmosphere, contributing to climate change. Indonesia's high deforestation rate has made it the third-largest global emitter of greenhouse gases. The draining and conversion of tropical peat forests in Indonesia are particularly damaging as these forests store more carbon per hectare than any other ecosystem in the world.
The biggest impact of unsustainable palm oil production is the large-scale devastation of tropical forests, which has led to widespread habitat loss for endangered species like Asian rhinos, elephants, tigers, and orangutans. This has also resulted in significant soil erosion and greater human-wildlife conflict as large animals are squeezed out of their habitats. Even protected areas, such as the Tesso Nilo National Park in Sumatra, have been overrun by illegal palm oil plantings.
Palm oil production has also been associated with robbing Indigenous Peoples of their land and livelihoods. The creation of roads for palm oil plantations has also provided easy access to poachers and endangered animal smugglers, further threatening species such as Orangutans.
In response to these issues, organizations like WWF and Greenpeace are working to promote sustainable palm oil production and encourage companies to source palm oil from sustainable suppliers. WWF produces a Palm Oil Scorecard every two years to benchmark companies' commitments and progress toward procuring sustainable palm oil. Greenpeace has successfully persuaded global companies such as Mars, Unilever, and Nestlé to commit to stopping the use of unsustainable palm oil.
To ensure responsible consumption, consumers can check for the Roundtable on Sustainable Palm Oil (RSPO) label or the Green Palm label, which supports the transition to certified palm oil.
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Certified Sustainable Palm Oil
The Roundtable on Sustainable Palm Oil (RSPO) is a global initiative with the goal of making sustainable palm oil the norm. RSPO standards for oil palm plantations and their supply chains ensure that palm oil production is environmentally and socially sustainable. Producers can claim that they produce, use and/or sell sustainable palm oil if they are RSPO-certified. The RSPO has developed a set of environmental and social criteria for the production of CSPO to minimize negative impacts from palm oil plantations and their supply chains. The RSPO Principles and Criteria for the Production of Sustainable Palm Oil (RSPO P&C) provide a framework for palm oil growers and millers to implement sustainable production practices. The RSPO Supply Chain Certification Standard (RSPO SCCS) is a series of auditable requirements used by organizations in the palm oil supply chain to demonstrate control of RSPO-certified palm oil products. This standard provides supply chain integrity back to the palm oil producers by preventing the mixing of palm oil with non-sustainable oil palm products.
WWF Australia works with influential companies along the palm oil supply chain to encourage the use of CSPO. They produce a Palm Oil Scorecard every two years to benchmark companies' progress towards procuring sustainable palm oil.
The Jane Goodall Institute Australia has joined other NGOs in the region as a signatory of the Responsible Palm Oil Network. The institute aims to break the link between palm oil production and deforestation, climate pollution, and human rights abuses by educating consumers and those involved in the supply chain.
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Palm oil labelling
Palm oil is the most widely consumed vegetable oil on the planet, and half of all packaged products contain it. It is grown in the tropics, and its production has destroyed vast swathes of rich, green rainforest. The biggest impact of unsustainable palm oil production is the large-scale devastation of tropical forests, causing widespread habitat loss for endangered species and significant soil erosion.
Palm oil is in around 50% of supermarket foods, but Australian law does not require it to be labelled as an ingredient. Under current regulations, palm oil or its derivatives can be labelled on food packaging ingredient lists using generic terms like 'vegetable oil' or 'vegetable emulsifier'. The Australian Heart Foundation includes palm oil on its list of unhealthy fats. The World Health Organization believes there is convincing evidence that palmitic acid (found in palm oil) contributes to an increase in the risk of cardiovascular disease. The Australian Dietary Guidelines identify palm oil as one of the saturated fat-heavy foods that should be replaced with alternatives.
Many Australians are unaware of the hidden fats and oils in supermarket products and may be unknowingly contributing to environmental destruction and putting their health at risk. Mandatory palm oil labelling will put pressure on companies to start using sustainably-produced palm oil. It will help consumers make informed decisions, give companies an incentive to source sustainable palm oil, and encourage companies already using sustainable palm oil to promote this.
WWF produces a Palm Oil Scorecard every two years, which benchmarks companies' commitments and progress toward procuring sustainable palm oil. The Roundtable on Sustainable Palm Oil (RSPO) is proving an effective mechanism to engage major stakeholders across the value chain in the pursuit of more sustainable production of palm oil.
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Frequently asked questions
No, palm oil is not made in Australia. Indonesia and Malaysia produce 86% of the world's palm oil.
Palm oil is the most widely consumed vegetable oil on the planet. It is found in around 50% of all packaged products, from ice cream and instant noodles to shampoo and lipstick.
Palm oil is linked to rapid biodiversity loss, air, soil, and water pollution, soil erosion, and the destruction of rainforest habitats when produced unsustainably. It has also been associated with robbing Indigenous People of their land and livelihoods.
Efforts are being made to increase the supply of sustainable palm oil, also known as Certified Sustainable Palm Oil (CSPO), in the Australian market. Mandatory palm oil labelling will put pressure on companies to use sustainably-produced palm oil.
