Engagement
Report - Sustainable
Palm Oil Procurement

In August 2017, we initiated engagements pertaining to environmental and social issues on procurement of sustainable palm oil. Palm oil is the most commonly used vegetable oil in the world, particularly as a raw material in numerous food products, detergents and other household items, and cosmetics. However, palm oil underlies many problems in the major producer countries of Malaysia and Indonesia, particularly in terms of deforestation accompanying development of palm plantations, child and forced labor, and conflicts with indigenous peoples of the nations. Japan also has many companies that handle palm oil-based products and accordingly are involved in the palm oil supply chain. Meanwhile, in comparison with companies in Europe and the United States, we believe there is still substantial room for improvement among companies in Japan on palm oil related issue. We support the target companies related to the palm oil supply chain to understand “sustainable palm oil” procurement and to formulate their procurement policies.

Process of engagements

The following diagram shows the engagement milestones and progress of the target companies.

Progress breakdown on palm oil by supply chain

The progress of the 63 engagement target companies based on supply chain classification shows that average achievements tend to be higher for upstream companies.