Doing Good in the Controversial Palm Oil Industry
One year ago, I submitted my Master Thesis on the strategic impact of sustainability certifications in the palm oil industry.
Together with my thesis partner, we studied how DAABON, a Colombian sustainable agriculture leader, went above and beyond compliance as first-movers in becoming Roundtable on Sustainable Palm Oil (RSPO) NEXT-certified.
Palm oil is the most consumed vegetable oil globally and can be found in 25–50% of supermarket goods. In recent years, the industry has proliferated to meet increasing the demand for its derived products. This development has raised concerns about environmental and social malpractice in the industry such as deforestation and the use of forced migrant labour.
With a growing global population, global food systems need to be rethought and undergo a sustainability transformation. As the most efficiently produced vegetable oil crop, sustainable production of palm oil is critical to secure future food supply. And we are on the way in Europe — the European market imported 86% RSPO-certified sustainable palm oil last year.
Palm oil is an example of a broader globalisation trend in the agri-food sector, where a transformation is happening in national regulations, local production, and supply chains leading to an increased global embedment built around transnational networks and global governance.
The RSPO NEXT certification was just one phase in DAABON’s innovative consolidation of sustainability and strategy. Through strategic sustainability, DAABON has managed to not only carve out a competitive advantage but also vertically integrated its supply chain, thereby limiting exposure to shocks, ensuring end-to-end traceability, and mitigating risks.
