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Orkla's policy for sustainable palm oil

Orkla's policy for sustainable palm oil

In 2014 Orkla signed the UN initiated New York Declaration on Forests. Our goal is that our supply chains will be deforestation-free no later than in 2020, for palm oil already in 2017.

Palm oil is the most traded vegetable oil worldwide, and is used as an ingredient in a variety of consumer goods. Approximately 87% of the world production comes from Indonesia and Malaysia, where the expansion of production has led to clearing of rainforest.

Deforestation has a negative effect on biodiversity in forests, and leads to extensive greenhouse gas emissions, which in turn contribute to climate change worldwide. The clearance of rainforest has also had negative consequences for indigenous peoples living in these forests.

Orkla is committed to preserving the rainforest and other forests with high conservation value, and has for many years worked actively to achieve this.

- There are both environmental and nutritional challenges associated with the production of palm oil, and Orkla has a two-pillar approach. We replace palm oil with alternatives that are better from a nutritional perspective and support the development of certified, sustainable palm oil. We work towards achieving a traceable supply chain, where palm oil is sustainably produced, says VP Corporate Responsibility Ellen Behrens in Orkla.

Between 2008 and 2015, the Nordic companies in Orkla Foods and Orkla Confectionery & Snacks reduced the consumption of palm oil by about 90%. The vast majority of foods, biscuits, snacks and sweets produced by Orkla for the Nordic grocery market is now without palm oil. For Orkla’s branded consumer goods companies as a whole, the reduction was about 70% (Orkla Foods, Orkla Confectionery & Snacks and Orkla Care).

- We are also committed to ensuring that the palm oil we buy is sustainably produced. We will achieve this through strict supplier requirements and by collaborating with suppliers who work systematically to achieve sustainable production. In addition, we are members of the certification organization RSPO, and we are increasing our purchases of RSPO-certified palm oil, says Behrens.