Palm oil has excellent technological properties, making it a highly suitable ingredient in the food industry, replacing the use of trans fats. It is highly productive and requires less land than any other crop to produce oil. Growing palm oil has been a source of economic growth for many countries such as Indonesia and Malaysia, offering employment opportunities for communities.
With the rapid expansion of the palm oil industry, the environmental and social challenges associated with the industry have become evident. There has been a lively discussion and concerns among consumers and other stakeholders regarding the sustainability of palm oil production.
The use of palm oil is not harmful, and what makes a difference is the way palm oil is produced. When produced irresponsibly, clearing excessive amounts of land for palm oil plantations can lead to rain forests, destroy habitats for endangered species, accelerate climate change, and cause social problems through loss of land and livelihoods.
Responsible and transparent sourcing of palm oil can be supported by following the Roundtable on Sustainable Palm Oil (RSPO) requirements, a global, multi-stakeholder initiative on sustainable palm oil established to tackle the challenges related to palm oil production. About 20% of the global palm oil production is RSPO certified.
Fazer Group's commitment to responsible palm oil
Most of the palm oil used by Fazer is in vegetable oil mixtures. We use palm oil-based fats to produce some coffee breads, biscuits, and in some confectionery fillings.
All palm oil used by Fazer is certified sustainable palm oil. Fazer is committed to using only RSPO certified palm oil. Our ambition is to use only Segregated palm oil by 2024. This statement covers Fazer Group, including all countries and product categories.
Until Segregated palm oil is available in all markets, Mass balance palm oil can be used combined with Book and Claim method supporting Independent Smallholders.
Fazer will conduct 3rd party RSPO supply chain audits for each production site using palm oil. Fazer Confectionery and Fazer Bakery Finland have been audited and received their RSPO supply chain certificates.
Fazer is constantly putting R&D efforts to develop sustainable and healthy food products. In the future, Fazer will investigate ways to increase the use of fats, oils and other ingredients with better environmental footprint and nutritional quality than palm oil.
Fazer renewed its commitment to sustainable palm oil in 2021, while the original commitment from 2014 expired in 2020.