Palm and Palm Kernel Oil Derivatives
Innospec recognize that palm products are a valuable natural resource sourced from high-yielding and land-efficient plantations. Increasing demand for palm oil and palm kernel oil has led to the rapid expansion of palm oil plantations, which in turn has had an adverse effect on the environment and the local communities living in these areas.
Relatively small volumes of palm and palm kernel oil derivatives are used in some of our product ranges. However, as an active participant in the palm oil supply chain and an ordinary member of RSPO (Round Table on Sustainable Palm Oil) since 2013, Innospec understand the importance of our role in encouraging the transition to more sustainable practices.
We continue to work with our suppliers to ensure that all the palm-based materials we procure will be from sustainable sources that comply with our Principles for Sustainable Palm and Palm Oil Derivatives Sourcing, as outlined in our Sustainable Sourcing of Palm and Palm Kernel Oil Derivatives Policy:
Details of our action plan, timeline and progress against meeting these policy commitments can be found in our annual progress report.
- RSPO Mass Balance Supply Chain Certificate
To enable us to achieve our commitment, all applicable Innospec manufacturing sites are RSPO mass balance (MB) supply chain certified and as such we are able to offer our customers RSPO MB versions of our products on request.
Our RSPO mass balance supply chain certificate is available below:
- Increased Transparency
In 2018, we began work to increase the transparency and understanding of our palm-based raw material supply chain. We engaged the support of an independent, third-party company to research and map the origins of palm-based materials in our supply chain. Using a methodology that is endorsed by a number of external stakeholders, rating agencies and coalitions, we analyzed our 2017 palm and palm kernel derivatives raw material volumes. Following the analysis, we achieved 99% transparency at refinery level and 95% at mill level connected to our palm derivatives supply chain. We also completed a risk assessment* of the deforestation, social and regulatory risks at geographical level (provinces, districts and mills).
Increasing the transparency of our supply chain helps us to highlight any differences and potential opportunities for improvement between our commitments and those of our suppliers. The program will help us to develop a roadmap towards deforestation-free and responsible sourcing of palm-based raw materials.
2017-2020 Transparency Results:
In 2019, we committed to conducting the transparency and risk-mapping exercise on an annual basis. In 2018, following a large acquisition, we doubled the volume of palm oil and palm kernel oil derivatives handled from almost 16,000 metric tonnes in 2017 to 37,500. We also increased the number of suppliers by 50% when compared to 2017. This led to the introduction of a number of new suppliers, yet to engage in the transparency process. As a result, our transparency results for 2018 volumes at the mill and plantation levels were lower than the previous year.
We again worked with our direct and indirect suppliers in 2020, to evaluate our 2019 palm volumes. Improved transparency levels at the mill level to 94% and at the plantation level to 16%, were achieved when compared to 2018 palm volume results. However, there was a slight decrease from 99% for 2018 volumes to 98% for 2019 volumes at the refinery level. This decrease was due to the volumes associated with one non-transparent direct supplier, representing just 0.6% of the total 2019 volume. We also updated our risk assessment at geographical level based on 2019 volumes. Overall, the transparency results achieved for 2019 volumes indicated a high level of transparency.
In 2020, we will continue to work with our direct and indirect suppliers to achieve our target of full transparency at mill level for 2020 volumes.
Access our public supplier list of palm oil and palm oil derivatives. Please click here:
Access our public list of mills potentially connected to our palm supply chain. Please click here:
- Action for Sustainable Derivatives
In 2020, Innospec joined the collaborative initiative; Action for Sustainable Derivatives (ASD) which aims to develop a harmonized approach to supply chain transparency, risk monitoring and evaluation.
The initiative is co-facilitated by Business for Social Responsibility (BSR) and Transitions, two organizations with expertise in the field of supply chain sustainability.
ASD brings together a number of likeminded companies to collectively standardize the tools and methodologies used to accelerate the compliance of their supply chain with deforestation-free and responsible sourcing principles. The initiative aims to create global, transparent mapping of the palm derivatives supply chain, and to harmonize approaches on transparency, risk monitoring and evaluation.
- Palm Supply Grievance Procedure
Innospec’s Palm Grievance Policy provides a clear process for the identification, investigation and resolution of external grievances concerning the implementation of Innospec’s Sustainable Sourcing of Palm and Palm Kernel Oil Derivatives policy. We aim to provide a clear, appropriate and prompt response to any applicable grievance raised.