PepsiCo has said it is “confident” it will meet the sustainability commitments laid out in its Palm Oil Action Plan.
Publishing its first progress report on its Palm Oil Action Plan, launched last October, the company highlighted progress against its target to establish total traceability for the palm oil it uses to the mill level by the end of 2016. It reported that as of July 2016, around 72% of the palm oil forecasted to be used for the year has been traced to the mill of origin.
Speaking to just-food, Andrew Aulisi, senior director, global environmental policy at PepsiCo, said he was confident the 2016 target would be met.
PepsiCo has also committed to ensure that all its direct suppliers become members of the Roundtable on Sustainable Palm Oil (RSPO) by the end of the year. According to the report, by the end of Q2 2016, approximately 91% of PepsiCo’s direct suppliers had signed up to the RSPO, accounting for approximately 96% of its forecasted direct palm oil volumes.
PepsiCo increased its use of mass balance physically certified palm oil in 2015 to 8% of volumes from 5% in 2014, as it bids to push physically certified palm oil to 100% of its requirements by the end of 2020. Aulisi also said he was confident its 2020 target for physically certified palm oil would be achieved. In addition, PepsiCo said it had begun work on a Chain of Custody Certification for palm oil, including a pilot market exercise this year.
“The continued implementation of policies, ongoing engagement and constructive discussion with our business partners and JVs remain important components of our proactive palm oil strategy,” the report stated. “We are encouraged by the progress we’ve made but recognise that further work is needed. We continue to expand or enhance our policies and commitments over time as science evolves, supply chains mature and tools, practices and processes improve.”