Unilever Releases Details of Its Palm Oil Supply Chain

Unilever has released the complete list of palm oil suppliers and mills, which sees the personal care giant become one of the first industry behemoths to champion transparency in the palm oil production industry.

Unilever said it was the first consumers goods company to publish such details, having disclosed the location of more than 1,400 mills and over 300 direct suppliers of the oil used in products from snacks and soaps to cosmetics and biofuels. The $62-bn palm oil industry has been plagued by concerns about deforestation and human rights abuses in countries such as Indonesia, the world’s biggest producer.

In a statement, Mr. Marc Engel, Unilever’s Chief Supply Chain Officer, said, “Unilever believes that complete transparency is needed for radical transformation. This is a big step toward greater transparency, but we know there is more work to be done to achieve a truly sustainable palm oil industry and we will continue our efforts to make this a reality.” He hoped that the sharing of information would be the start of a new industry-wide movement towards supply chain transparency.

The move comes as the scrutiny of the industry intensifies over deforestation and human rights abuses, with Unilever stating that transparency and the ability to trace the palm oil supply is vital in tackling these issues.

Palm oil supply chains are complex as the fruit changes hands many times from farmers to agents before it reaches a mill. It is then transported via traders to refineries for further processing, when it enters a company’s supply chain.