Policy and Commitments on Sustainable Palm Oil
We commit to a transparent, traceable and sustainable palm oil supply chain.
Download the Policy (PDF):
In summary, Cargill will:
- Protect high conservation value (HCV) areas, high carbon stock (HCS) forests and peatlands regardless of depth.
- Respect and upholds the rights of workers, indigenous peoples and local communities.
- Enable smallholders to become successful businesspeople, improving their livelihoods through responsible production, maximizing yields and improving quality.
- Uphold high standards of transparency through reporting of traceability, timebound implementation plans, resolving grievances and achieving third party verified policy compliance.
Cargill Policy on Sustainable Palm Oil
We believe forests and farms must coexist as both are crucial to life on the planet. Forests provide food, water, fuel, medicine and livelihoods to billions of people, while providing vital habitat, regulating the climate and storing carbon for the wider environment. Agriculture is essential to the livelihoods of billions of people and to food security for all.
Palm oil plays a critical role in feeding and supporting the livelihoods of millions. Demand for edible oils will continue to grow as the world population is predicted to reach 10 billion by 2050.
Palm oil is the most viable option to meet this demand. It is the highest yielding edible oil crop, using less land, energy, fertilizer and pesticides than other vegetable oils for every ton produced. Our Policy on Sustainable Palm Oil (Palm Policy) allows for both sustainability values and agricultural development to simultaneously thrive.
Cargill’s commitments to producing and sourcing palm oil in an ethical, environmentally sustainable and socially responsible manner are embodied in our responsible production requirements that aim to deliver palm oil that is produced in accordance with “No Deforestation, No Peat and No Exploitation” (NDPE) practices.
Cargill commits to a transparent, traceable and sustainable palm oil supply chain that:
- Protects high conservation value (HCV) areas, high carbon stock (HCS) forests and peatlands regardless of depth.
- Respects and upholds the rights of workers, indigenous peoples and local communities.
- Enables smallholders to become successful businesspeople, improving their livelihoods through responsible production, maximizing yields and improving quality.
- Upholds high standards of transparency through reporting of traceability, timebound implementation plans, resolving grievances and achieving third party verified policy compliance.
Conservation and Responsible Management of Peat:
- Commit to and require all suppliers to not develop on peat, defined as soil containing greater than 65% organic matter, regardless of depth.
- Commit to the standards set out in the RSPO Manual on Best Management Practices (BMPs) for existing oil palm cultivation on peat and Protocol for Oil Palm Independent Smallholders for Sustainable and Responsible Management of Peat Areas (2017).
- Work with experts in developing and implementing guidelines and models for conservation, rehabilitation or alternative uses in areas unsuitable for development.
- Work to protect critical peat domes and forests within our sourcing regions facing threats of developments through the adoption of landscape approaches and in partnership with producers, governments and communities.
Recognize and uphold the rights of the communities and workers in line with international human rights principles and local applicable law:
We participate in the UN Global Compact and take guidance from the UN Guiding Principles on Business and Human Rights and the International Labor Organization Fundamental Principles and Rights at Work. These frameworks call on us to engage in due diligence and take action to remedy issues where identified in our workplaces, supply chains and extended communities.
- Prohibit the use of human trafficking, illegal, abusive, forced or child labor (1) within our operations anywhere in the world and work with our suppliers to prevent and address such practices across the supply chain. In cases where exploitative practices are identified, we will determine remedial actions to ensure appropriate, timely and transparent responses.
- Respect and protect human rights including rights of all workers regardless of age, ethnicity, gender, language, local customs, physical ability, race, socio-economic status, religion, sexual orientation, gender identity and expression, contract status or migration.
- In line with RSPO standards conduct a living wage assessment, initially in our palm plantation operations, based on credible methodologies with the goal of ensuring workers have access to decent living wages.
- We work directly and in partnership with our suppliers to support smallholders and communities to identify and manage HCS, HCV and customary areas.
Planning, reporting and transparency:
- We will publish regular reports, including an annual report, on key metrics, time-bound implementation plans, progress and impacts
- We will work with parties to resolve complaints and conflicts relating to non-compliance of this Palm Policy through an open, accessible, transparent and consultative process. Cargill’s Palm Grievance Procedure provides a structured and timely approach to ensure external stakeholder grievances are constructively engaged and clear milestones are developed towards resolution of non-compliances. We regularly review our grievance process and commit to continuous improvement of our procedure.
- We will work with credible independent third parties to verify compliance of our suppliers with this Palm Policy, and to audit and evaluate the implementation and performance of this Policy across our supply chain.
Cargill’s commitment to building a transparent, traceable and sustainable palm oil supply chain is effective immediately. We continue to actively work with suppliers and establish Standard Operating Procedures to raise awareness and build capacity to guide implementation of this Policy. We expect all suppliers to transparently demonstrate progress against this Palm Policy. Where gaps are identified, we will transparently implement our grievance procedure to ensure compliance.