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Consumer Goods Companies Find It Difficult To Source Sustainably Produced Palm Oil

June 19, 2012: 03:29 AM EST
Manufacturers that use palm oil in their food products and soaps find it difficult to source sustainably produced palm oil. Palm oil industry, which is estimated to be worth $50 billion in annual trading, has been burdened with environment-unfriendly practices, such as deforestation. For example, conversion of forest land in Malaysia and Indonesia in the early 2000s had released more greenhouse gases than the whole of China's transport sector in 2007, according to a study published in the US Proceedings of the National Academy of Sciences. So far, the GreenPalm certificate program has supported buyers' efforts to purchase sustainably produced palm oil; however, governments need to play a leadership role in the drive for sustainability in the sector.
Louise Lucas, "Palm oil: Long and tortuous route to unsullied supply chains", Financial Times, June 19, 2012, © The Financial Times Limited
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