Sustainable. Palm Oil. Derivatives. Innovation you can build on TM
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- Tyrone Houston
- 6 years ago
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1 Sustainable Palm Oil Derivatives
2 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
3 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 Source: Altenergymag.com Soy oil, the second most produced oil after palm, is less than a tenth as efficient
4 Palm Oil vs. Palm Kernel Oil Palm Oil (PO) PO is derived from the palm fruits flesh Palm Kernel Oil (PKO) PKO is derived from the palm fruits kernel ~53 million tonnes per year ~6 million tonnes per year Primarily used in the food and biodiesel industries Used industrially in oleochemical and cosmetic applications
5 Palm Oil Usage Over 80% of Palm Oil produced is used in the food industry, ranging from margarine, cereals and crisps to sweets and baked goods Global Palm Oil % Split of Total Usage The remaining 20% is divided between biodiesel, industrial applications and the oleochemical industry. The Cosmetic Industry uses <1% of the worlds palm oil 20% 80% Food Industry Biodiesel and Oleochemicals Industry
6 Palm Oil Usage 70% of cosmetic products contain palm derivatives
7 Palm Oil as a Value Multiplier Palm Oil $800MT Converted to Cosmetic Ingredient $3000MT Value added $60000MT More value is added to PO/PKO in cosmetics than any other industry. x 75 Original Cost
8 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.
9 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.
10 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
11 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.
12 Certified Sustainable Palm Oil (CSPO) Aspirational for the future. Impractical for the complex derivatives in Personal Care today A firm step in the right direction Mass Balance will drive the industry towards true sustainability by consuming volume of CSPO IP Segregated Mass Balance Book and Claim Increase in Cost and Complexity
13 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 100 Ton Conventional Plantation Transporter Refiner Consumer X Ton X Ton X Ton 100 Ton
14 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 CSPO Consumer 100 Ton Conventional Plantation X Ton X Ton Transporter X Ton Refiner 100 Ton Consumer X Ton Sustainable material is monitored across the supply chain
15 Croda s Progress and Aspirations 2006 Joined RSPO 2011 Reported progress against Sustainable Palm targets 2013 key UK & US sites RSPO certified % RSPO certification of Supply Chain 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 2017 Only handle/supply RSPO certified palm oil products
16 Global Supply Chain Singapore Rawcliffe Bridge Mill Hall Atlas Point Mevisa (Coming Soon) Brazil (Coming Soon)
17 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
18 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
19 Demonstrate your Proactive Commitment Switching to the SP version does not involve any change to the ingredient specification, manufacturing process or quality so no reapproval 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.
20 Product Range Available Now! Sorbitan Esters SPAN Ethoxylated Sorbitan Esters TWEEN Sarcosinates CRODASINIC Ethoxylated Fatty Alcohols BRIJ Emollient Esters CRODAMOL Ethoxylated Fatty Acids MYRJ Fatty Alcohols CRODACOL Polyol Esters CITHROL Emulsifying Waxes ARLACEL POLAWAX CROMUL Emollient Ethers ARLAMOL PROCETYL Specialities CRODAPEARL INCROMINE INCROQUAT CRODAFOS
21 Switching to SP Ingredients
22 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 Derivatives
23 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 Derivatives
24 Additional Information To order free samples, click here. To contact us, Links to the presentation slides and the event recording will be ed to all attendees. Recordings of past events and information about upcoming events are listed on our website here. Sustainable Palm Oil Derivatives
25 Sustainable Palm Oil Derivatives Thank you
RSPO. PALMEX THAILAND. 8-9 September 2011 Sustainable Palm oil and the Environment
www.rspo.org PALMEX THAILAND 8-9 September 2011 Sustainable Palm oil and the Environment By: Salahudin Yaacob, Technical Director on behalf of Darrel Webber, Secretary General of RSPO CONTENT Palm oil
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