Our Policy on Responsible and Sustainable Sourcing of Palm Oils
At Colgate-Palmolive Company (Colgate) we support a vision for a future without deforestation. This commitment is grounded in our core values of caring, global teamwork
Colgate-Palmolive is committed to sourcing responsible palm oil, palm kernel oil (PKO) and palm oil derivatives that do not contribute to deforestation.
By 2020 Colgate-Palmolive will source palm oil, PKO and their derivatives that are responsibly and sustainably produced and from sources that can be traced from plantation to product.
This policy applies to the sources of all Colgate-Palmolive's operations, subsidiaries
Our suppliers will be expected to apply this policy
As we strive for zero deforestation in our operations and activities, we will partner with stakeholders and our suppliers to build a transparent global supply chain that meets the following criteria:
- No deforestation of High Carbon Stock (HCS) forest
- No deforestation of High Conservation Value (HCV) areas
- No use of fire for land clearance
- No new development on peat lands, regardless of depth
- Reduction of Greenhouse Gas Emissions
- No exploitation of people or local communities
1. No Deforestation of High Carbon Stock Forests or High Conservation Value Areas
High Carbon Stock Forests
High Carbon Stock forests encompass primary forests as well as High, Medium, Low Density and Regenerating forests. Young Scrub, Cleared/Open Land areas, existing plantations or
High Conservation Value Areas
High Conservation Value areas are lands that have particularly high environmental and social significance, with attributes such as
2. No Use of Fire for Land Clearance
Colgate-Palmolive will source from suppliers who prohibit
3. No New Development on Peatlands, Regardless of Depth
Colgate-Palmolive will not accept
4. Reduction of Greenhouse Gas Emissions
Suppliers will be expected to work continuously to reduce greenhouse gas emissions and pollutant emissions from existing mills and
5. No Exploitation of People or Local Communities
Human and Labor Rights
Guided by the UN Declaration on Human Rights, under a policy of no exploitation, Colgate-Palmolive requires its suppliers at all tiers to commit
Land Tenure Rights
Colgate-Palmolive suppliers will respect the legal or customary land-tenure and use rights of indigenous and local communities, as well as their rights to give or withhold their free, prior and informed consent for operations affecting their land or resources.
Colgate-Palmolive suppliers will resolve complaints and conflicts through a mutually agreed upon and transparently documented system that is implemented and accepted by all relevant parties.
Colgate-Palmolive commits to
As the next step on our journey toward responsible and sustainable sourcing of palm oils, we will strive to meet the following goals:
- Work with suppliers and external expert organizations to identify potential social or environmental risk in our supply chain and to address those risks through transformation actions
- Achieve full traceability of our palm oil, palm kernel oil and palm oil derivatives supply chains back to the first refineries, mills and to the plantation by year-end 2020
- Purchase increasing volumes of physical certified sustainable palm oil and palm kernel oil each year with a goal to source 100% by year-end 2017
- Purchase increasing volumes of physical certified sustainable palm oil derivatives
- Communicate the expectation that suppliers publish concession maps
- Measure suppliers’ conformance
We will review and update our milestones and transformation plans, as well as report on our progress twice per year.
We will take a step-wise approach to verification. As an interim measure, Colgate-Palmolive will strive to procure only palm oil, PKO and palm oil derivatives certified by the Roundtable on Sustainable Palm Oil (RSPO) or equivalent standard. We will give preference to physically certified oils.
We recognize that our policy sets requirements above the RSPO Principles and Criteria and will use various independent verification systems to determine if suppliers are progressing towards full conformance with our policy.
We will give preference to suppliers whose palm oil, PKO and palm oil derivatives have been verified by an independent third party against a standard that meets the expectation in our policy.
Working with Our Suppliers
Suppliers of palm oil, PKO and palm oil derivatives are expected to meet the requirements of this policy. Suppliers are evaluated against our policy expectations. If a supplier is not able to meet expectations outlined in our policy, we will work with them to develop an action plan with time-bound commitments.
If a supplier is unable or unwilling to take the necessary actions to conform to the expectations outlined in our policy, Colgate-Palmolive may terminate the business relationship with the supplier. For example, Colgate-Palmolive may terminate our business relationship with suppliers who choose not to create action plans or fail to meet time-bound commitments and/or suppliers who are suspended from RSPO or equivalent organizations.
We recognize that transparency supports transformation. We will expect RSPO suppliers to publish concession maps where legally permissible and will encourage suppliers to publicly disclose their refiner and mill sources.
Colgate-Palmolive's largest suppliers for palm oil and palm kernel oil and mills
We will report on progress toward our goals twice a year – in our annual Sustainability Report, as well as a semi-annual report, both to be published on the Colgate-Palmolive Sustainability website. In addition, Colgate-Palmolive discloses progress on responsible and sustainable sourcing of palm oil via RSPO Annual Communication of Progress, the World Wildlife Fund Palm Oil Buyers Scorecard and the CDP Forest disclosure.
Colgate-Palmolive recognizes that we alone cannot transform the palm oil supply chain. We are partnering with others to accelerate the pace of change.
Colgate-Palmolive has signed on to remove commodity-driven deforestation from our supply chain through the We Mean Business Take Action Platform. We have also publicly supported the Indonesian government’s policy to protect intact and restore degraded peatlands.
We will continue to support similar reforms and improvements in government and land use management to achieve lasting solutions to deforestation.
We are working in partnership with The Forest Trust (TFT) in order to map our supply chain, assess risk, prioritize regions and suppliers for targeted engagement and contribute to transformation on the ground.
We are a member of the RSPO, a member of the Tropical Forest Alliance and a member of the Consumer Goods Forum Palm Oil Working Group.
Colgate-Palmolive has recognized the need for a strategy to source responsibly produced palm oil since
- Developed a cross-commodity Policy on No Deforestation, highlighting palm oil as one of four commodities to target for implementation (March 2014)
- Communicated our policy to our direct suppliers (ongoing)
- Began palm oil membership with The Forest Trust to map our supply chain, engage our suppliers and drive transformation in the supply chain (May 2015)
- Identified all palm oil derivatives in our supply chain (2015)
- Requested information on traceability to the mill level from 100 percent of our direct suppliers of palm oil, palm kernel oil
- Engaged direct suppliers of palm oil and palm kernel oil to encourage increased transparency and holding suppliers accountable to time-bound action plans to transform their supply chain (ongoing)
- Issued a commodity-specific Policy on Responsible and Sustainable Sourcing of Palm Oils (July 2016)
- Incorporated sustainability and responsible sourcing requirements in the supplier selection criteria and process
- Discontinued relations with certain suppliers who are not making adequate progress toward our policy commitments (ongoing)(1)
- Committed to
procure100 percent certified palm oil and palm kernel oil (ongoing)
- Included palm oil suppliers in our Supplier Responsible Sourcing Assessment program (ongoing)
(1) Colgate-Palmolive sourced a very small quantity of materials from IOI. We will not consider sourcing materials from IOI until they regain RSPO certification and develop an action plan with time-bound commitments that
We have engaged 100 percent of our direct suppliers of palm oil and PKO to understand the source of their supply, down to the mill level. By tracing palm oil back to known mills, we can better understand social and environmental practices at the plantations and smallholder farms the mill sources
The percentages in Table 1 below reflect the percentage of palm oil and PKO for each purchasing market that can be traced back to the origin mill. Being able to identify the mill sources for our palm supply allows us to prioritize upstream suppliers for engagement based on associated risk. It also allows us to seek further information and respond if concerns arise against stakeholders within our supply chain.
Table 1 Colgate Global Traceability to the Mill
||Palm Kernel Oil
|Europe, Middle East, and Africa
In partnership with The Forest
- First importer: the company (usually a refiner/trader) that has imported palm oil/palm products from a producing country to the country of ingredient manufacturing
- First refiner: Refiner in the country of production that sources crude palm oil or palm kernel oil directly from mills or from aggregators like crushers, traders or dealers
- Mill: the first major aggregation point for fresh fruit bunches after having been harvested
- Plantation: the farms, estates, smallholder operations, etc. where the oil palm is planted and fresh fruit bunches are harvested
As indicated above Colgate-Palmolive will strive to procure only palm oil, PKO and palm oil derivatives certified by the RSPO or equivalent standard. For
|Palm Oil & Palm Kernel Oil
||Palm Oil Derivatives
|Certified Oils (% by weight)
|GreenPalm Certificates (% by weight)