Palm Oil Sustainable Innovation you can build on TM Derivatives
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Palm Oil Palm oil is produced from the oil palm
tree (Elaeis guineensis) which grows in tropical regions. World production estimated at 53 million tonnes in 2012: Malaysia and Indonesia 87% Thailand 3% Columbia 2% Nigeria 2% ~21 other countries (6% combined)
It is a highly versatile vegetable oil and
widely used across packaged supermarket products today
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Palm Oil – The Most Efficient Oil Palm oil is an highly
efficient producer of oil per hectare of cultivated land
Coconut, the second most efficient crop after palm, produces less than half as much oil per hectare
Soy oil, the second most
produced oil after palm, is less than a tenth as efficient
Source: Altenergymag.com
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Palm Oil vs. Palm Kernel Oil Palm Oil (PO) PO is derived from the palm
fruits flesh
~53 million tonnes per year
Primarily used in the food and biodiesel industries
Palm Kernel Oil (PKO) PKO is derived from the palm
fruits kernel
~6 million tonnes per year
Used industrially in oleochemical and cosmetic applications
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Palm Oil Usage
80%
20%
2012 Global Palm Oil % Split of Total Usage
Food Industry
Biodiesel andOleochemicalsIndustry
Over 80% of Palm Oil produced is used in the food industry, ranging from margarine, cereals and crisps to sweets and baked goods.
The remaining 20% is divided between biodiesel, industrial applications and the oleochemical industry.
The Cosmetic Industry uses <1% of the worlds palm oil
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Palm Oil Usage
70% of cosmetic products
contain palm derivatives
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Palm Oil as a Value Multiplier
Palm Oil $800MT
Cosmetic Ingredient $3000MT
Value added $60000MT
Converted to
x 75 Original Cost
More value is added to PO/PKO in cosmetics than any other industry.
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Why Support Sustainable Palm Oil? Millions of people depend on palm oil
1 million workers 3 million smallholders Many million households
Social issues in palm cultivation
Displacement of indigenous people Workers rights and conditions
Environment
Forest, peatland conversion Climate change Biodiversity loss Palm Oil is the most efficient oil crop
- trying to move away from it is environmentally wrong thinking.
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Palm Oil Usage
We believe it is OUR RESPONSIBILITY as an industry to ensure that we only use Sustainable Palm derivatives.
RSPO was formed in 2004 to work with the palm oil (PO) and palm kernel oil (PKO) industry
‘Promoting the production and use of sustainable palm oil for People, Planet and Prosperity.’
The RSPO is a non-profit organization comprising oil palm growers,
palm oil processors and traders, consumer goods manufacturers, environmental NGOs, social NGOs, banks/investors and retailers.
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Poll Question #1
How involved is your organization with Sustainable Palm? Not at all involved Concerned about the issues around Palm Oil production Developing a plan to support Sustainable Palm Active member of RSPO
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Croda’s Commitment Sustainable palm oil and derivatives is a matter explicitly included in Croda’s sustainability strategy. Since 2011, we have reported progress against targets that support our objective ”to fully support sustainable palm oil (PO) and palm kernel oil (PKO) and to keep working with the industry to secure a sustainable source of derivatives” In 2012, we met a key milestone when our Singapore site was RSPO Supply Chain Certified to handle PO/PKO Sustainable raw material via Mass Balance.
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Segregated
Mass Balance
Book and Claim
IP
Certified Sustainable Palm Oil (CSPO)
A firm step in the right direction Mass Balance will drive the industry towards true sustainability
Aspirational for the future. Impractical for the complex derivatives in Personal Care today
Increase in Cost and Complexity
A firm step in the right direction Mass Balance will drive the industry towards true sustainability by consuming volume of CSPO
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Book and Claim The Book and Claim system allows CSPO millers and their supply
base to issue certificates for each ton of oil they grow and process, which can then be purchased by the end user for the equivalent volume of oil that goes into their product. Advantages: Connects CSPO producers to end users of palm oil,
without the involvement of the entire supply chain. Disadvantages: Administrative only. No audit. Delivered physical palm
oil is not likely to be the CSPO produced by a certified plantation, small holder or miller
RSPO Certified Plantation
Conventional Plantation
100 Ton
X Ton
X Ton
X Ton
100 Ton
Transporter Refiner Consumer
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Mass Balance The Mass Balance supply chain allows CSPO and non-CSPO to
be mixed through the supply chain but administratively monitors the mass of CSPO produced and sold. Advantages:
Actively encourages support for growers to produce CSPO and move towards a segregated supply chain system.
Fully auditable & ensures that no Sustainable oil is left unsold Creates pull towards segregated product
RSPO Certified Plantation
Conventional Plantation
100 Ton
X Ton
X Ton
100 Ton
X Ton
Transporter Refiner
CSPO Consumer
Consumer X
Ton
Sustainable material is monitored across the supply chain
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Croda’s Progress and Aspirations
2006 Joined RSPO
2010 Adopted Book and Claim practices
2012 Singapore becomes Croda’s first site to be RSPO Supply Chain Certified
2014 Audits in place for remaining European and LATAM manufacturing facilities
2011 Reported progress against Sustainable Palm targets
2013 key UK & US sites RSPO certified
2015 100% RSPO certification of Supply Chain
2017 Only ‘handle/supply’ RSPO certified palm oil products
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Global Supply Chain
Singapore Rawcliffe Bridge Mill Hall Atlas Point Mevisa (Coming Soon) Brazil (Coming Soon)
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Croda Commendation
“RSPO commends Croda's efforts in moving towards sourcing for physical Certified Sustainable Palm Oil. We acknowledge the complexity of the palm oil supply chain, especially when it involves the palm oil and palm kernel oil derivatives market. Thus, Croda's initiatives are indeed an affirmative step towards the right direction, playing a significant role in the collective efforts to transform markets and make sustainable palm oil the norm.”
Darrel Webber, RSPO Secretary General
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Poll Question #2
How does your company plan to communicate their commitment to Sustainable Palm? No external promotion Corporate PR & advertising only Make a claim on finished packaging Promote as part of our companies sustainability goals
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Switching to the SP version does not involve any change to the ingredient specification, manufacturing process or quality so no re-approval is required.
SP POLAWAX NF MBAL-PA-(MH)
“SP” = Sustainable Palm origin “MBAL”= system by which SP is supported (Mass Balance)
By purchasing Mass Balance certified products, “contributes to the production of certified sustainable palm oil” may be claimed on relevant finished goods packaging.
Demonstrate your Proactive Commitment
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Product Range Available Now! Sorbitan Esters SPAN™ Ethoxylated Sorbitan Esters TWEEN™
Sarcosinates CRODASINIC™ Ethoxylated Fatty Alcohols BRIJ™
Polyol Esters CITHROL™
Ethoxylated Fatty Acids MYRJ™
Emulsifying Waxes ARLACEL™ POLAWAX™ CROMUL™
CRODAPEARL™
Fatty Alcohols
CRODAFOS™
Emollient Esters CRODAMOL™
INCROQUAT™
INCROMINE™
CRODACOL™
Emollient Ethers ARLAMOL™ PROCETYL™
Specialities
Sustainable Palm
Oil D
erivatives
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Summary Palm Oil is the most efficient oil crop & environmentally
sound
Personal Care ingredients are complex- RSPO Supply Chain Certification by Mass Balance is the key
Mass Balance serves to ensure that sustainable volume is drawn into the supply chain for the manufacture of Personal Care consumer products
Mass Balance is a very important step beyond “Book & Claim” physically involves the processing of sustainable
palm derivatives ensures Sustainable Oil is not left unsold
Sustainable Palm
Oil D
erivatives
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Summary Segregated, Identity Preserved traceable Palm Oil
derivatives will only develop in Personal Care with the transition through Mass Balance
Certified Sustainable Palm based ingredients provide the mechanism for the Personal Care industry to make a step change, meeting consumer expectations and developing the pathway to full traceability
A wide range of RSPO Supply Chain Certified Sustainable Palm based ingredients are available globally from Croda sites in Singapore, UK and USA
Croda is taking a leading position in the industry with Sustainable Palm Ingredients
Sustainable Palm
Oil D
erivatives
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Additional Information
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