Eleven manufacturing sites are now approved to supply Certified Sustainable Palm Oil (CSPO) derivatives in line with Roundtable on Sustainable Palm Oil (RSPO) guidelines.
Responsibly addressing the social and environmental issues associated with Palm Oil (PO) and Palm Kernel Oil (PKO) is a priority for us at Croda, as it is for many of our customers and consumers around the world.
The majority of PO/PKO we consume are derivatives that are sourced via a complex supply chain which historically did not lend itself to sustainable certification. Nonetheless, in 2010, we were perhaps the first ingredient suppliers to support Sustainable Palm Oil via the Book & Claim process by developing our own methodology to provide our customers with the data needed to purchase GreenPalm certificates. The RSPO Derivatives Working Group, of which we are members, later gained approval for a methodology that aligns to ours.
We have since made important progressive steps within the physical supply chain of CSPO derivatives. In November 2012, our Singapore manufacturing site was certified to handle PO/PKO derivatives via the audited Mass Balance system, whereby a specific volume of sustainable PO/PKO enters the supply chain and is traced throughout.
In August 2013, a second manufacturing site, Rawcliffe Bridge in the UK, was successfully audited for Mass Balance and our Mill Hall and Atlas Point sites in North America followed later in the year, allowing us to considerably extend our CSPO product portfolio. In April 2014, Croda Iberica in Spain became the fifth site certified to handle PO/PKO derivatives via the audited Mass Balance system, and Thane in India and Campinas in Brazil followed later in the year. In 2015, our sites in Gouda, the Netherlands, Leek and Hull in the UK, and Chocques in France were also certified.
We have met our corporate target to have RSPO certification of all our relevant supply chains by the end of 2015 and we are working towards all of our PO supply chains being certified by 2017.
The RSPO have commended Croda's progressive approach towards CSPO.
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In some applications derivatives such as certain fatty acids can be derived interchangeably from other oils, there are well known established cases such as caprylic/capric and lauric derivatives coming from coconut or PKO.
Actively trying to further substitute PO/PKO derivatives in the manufacture of ingredients, while it may have superficial marketing appeal, is undesirable for a number of reasons: