the production and trade of palm oil have significant environmental and social implications. unsustainable palm oil production exacerbates global climate change. developing countries, which often lack resources to address climate change issues adequately, bear the brunt of its impacts.

by advocating for sustainability certification programs, we uphold the ethical imperative to minimize harm, promote justice, and act as responsible global citizens.

unsustainable palm oil production poses significant ethical challenges and has far-reaching consequences that affect the environment, society, and global responsibility. palm oil, widely used in food, cosmetics, and biofuels industries, has become a highly profitable commodity, driving extensive expansion of plantations. this trend is corroborated by sources such as “oil palm in indonesia” authored by john d. watts and silvia irawan in 2018. however, the rapid growth of the palm oil industry has come at a grave cost.

one of the primary ethical concerns of unsustainable palm oil production lies in its severe environmental impact. palm oil is not only bad for the climate — as their forest habitat is cleared, endangered species such as the orangutan, borneo elephant and sumatran tiger are being pushed closer to extinction. this loss of biodiversity raises moral questions about our responsibility to protect and preserve other living beings on earth.

according to efeca briefing note, deforestation for palm oil also contributes significantly to greenhouse gas emissions, exacerbating climate change and its associated moral risks. the degradation of peatlands, often cleared for palm oil cultivation, releases large quantities of carbon dioxide into the atmosphere, accelerating global warming. the adverse effects of climate change disproportionately affect vulnerable communities in developing countries, which often lack the resources and adaptive capacity to cope with the consequences. 

the palm oil industry’s expansion creates economic disparities, particularly when small-scale farmers are pushed out by large plantation companies, leading to monopolization. small farmers may be forced to adopt unsustainable practices to compete or find alternative livelihoods, exacerbating environmental and social issues. the unequal distribution of benefits and profits within the industry raises questions about justice and equitable development.

the lack of transparency in palm oil supply chains allows for unsustainable practices to persist without proper scrutiny. following the investigation of the rainforest action network  a big number of palm oil-producing companies source from suppliers engaged in illegal and environmentally damaging activities, such as land grabbing, deforestation, and peatland drainage, and human rights violations. this lack of accountability in supply chains hinders efforts to trace the origin of palm oil products and makes it challenging for consumers and stakeholders to make informed decisions based on ethical considerations. consumers who want to make ethical choices may find it difficult to identify products that are genuinely sustainable and produced with respect for the environment and human rights.

as rainforest rescue states, in 2021, approximately 66.7 million acres of rainforest had been cleared for palm oil production globally. according to rainforest rescue, “forests and human settlements have been destroyed and replaced by “green deserts” containing virtually no biodiversity on an area the size of new zealand.”

palm oil plantations often replace diverse and ecologically valuable forests, leading to a significant loss of biodiversity, while the use of pesticides and fertilizers in palm oil production lead to soil and water pollution. obligatory sustainable certification programs can help protect biodiversity by promoting the adoption of practices that preserve existing forests, conserve wildlife habitats, and promote reforestation efforts. 

besides, unsustainable palm oil production is a significant contributor to greenhouse gas emissions, exacerbating climate change because clearing forests releases vast amounts of carbon dioxide into the atmosphere due to draining peatlands.

what is more, palm oil cultivation requires significant amounts of water, leading to water scarcity and contamination, and generates considerable waste.

multiple sources, for example, international labour rights forum report serious violations of workers’ rights in palm oil production, including forced labor, child labor, harassment, violence against human rights defenders, and discrimination against women. safe and fair working conditions are lacking, emphasizing the necessity of sustainable certification programs to address these issues.

many smallholders in the supply chain are subject to untransparent agreements that burden them with unexpected debts and unfair remuneration for their products. for instance, nestlé purchases palm oil from mills in sabah state, malaysia, as swiss ngo solidar suisse reported. the report highlighted ruthless exploitation and forced labor on the oil palm plantations, where a significant portion of the workforce, approximately 840,000 people, are illegal immigrants from indonesia, including up to 200,000 children, earning wages below the world bank’s extreme poverty line.

as the forest people programme funded by the uk government states, in indonesia, about half of the palm oil labor force is women. palm oil companies contribute to discrimination and violence against women by failing to prevent sexual violence by their employees. they also contribute to other rights violations that disproportionately affect women.

smallholders and indigenous populations who have inhabited and protected the forest for generations are often brutally driven from their land. human rights violations are everyday occurrences, even on supposedly “sustainable” and “organic” plantations. for example, forest people programme funded by the uk government concluded that in 2010, the indonesian government’s national land bureau reported that it had recorded 4,000 land conflicts across the archipelago in the palm oil sector. according to forest people program, “in liberia, it is estimated that 40% of the population reside inside concessions for rubber, oil palm, forestry, and the extractive sector.” nestlé buys palm oil from exportadora del atlantico in honduras. the palm oil mill in the aguan valley has been implicated in a violent land conflict, with accusations of involvement in the killings of at least 140 people. 

companies frequently violate the cultural rights of indigenous peoples by destroying sacred sites, cultural artifacts, or monuments, causing the loss of intangible cultural heritage, and preventing communities from practicing traditional livelihoods.

in conclusion, implementing and enforcing obligatory sustainable certification programs for palm oil production is crucial to mitigate the moral risks associated with climate change, addressing environmental protection, workers’ rights, and social responsibility, and promoting a more sustainable and equitable global trade market.

certification programs will promote responsible business practices that benefit communities, promote social well-being, and contribute to inclusive development. furthermore, certification programs should encourage transparency and accountability in corporate practices. companies are required to disclose their social and environmental performance, fostering trust and enabling consumers to make informed choices.

first, let’s take a look at nutella’s ingredients. there are only seven ingredients in the hazelnut spread, all of which are relatively well-known, which makes consumers feel confident they are making a completely natural and healthy choice by avoiding myriad artificial enhancers and sweeteners that often are found in snack foods today.

of course, the first ingredient of nutella is sugar. listed second is palm oil, followed by hazelnuts, cocoa, milk, lecithin (soy) and vanillin.

the most controversial ingredient in that list is the palm oil. since ingredients are listed on labels in order of quantity, as nutella’s second ingredient, palm oil is a large component of the hazelnut spread’s recipe.

palm oil is extracted from the palm fruit, which grows on the african oil palm tree. it’s popular as a food ingredient due to its natural properties and versatility: it has a neutral odor and taste, is semi-solid at room temperature, and gives products a creamy, smooth texture.

this is especially important for confectionary products like nutella, because using palm oil avoids the use of the hydrogenation process, which creates unhealthy trans fats in products. palm oil is also the most efficient oil, producing about 3.7 tons per hectare (or roughly 2.5 acres), whereas oil from soybeans, sunflowers, or rapeseeds produce much less. that 3.7 tons is equal to about 7,400 pounds – the equivalent weight of about two and a half toyota prius 4-door hatchbacks.

all of this means that palm oil is frequently a hidden, yet substantial component in modern consumers’ lives. according to rainforest action network, palm oil is found in about half of packaged products in our grocery stores. it can be found in foods ranging from ice cream to instant noodles and from donuts to potato chips.

of course palm oil is not just used in food. it’s also found in multiple cosmetic products, such as lipstick and soaps.

as a result of its popularity, worldwide demand for palm oil is skyrocketing. this demand is convincing farmers in tropical climates – most notably indonesia and malaysia, where about 85% of the world’s palm oil is cultivated – to cut down rainforests and create palm oil plantations instead.

not only does the destruction of rainforests release carbon dioxide emissions, but native peoples are being displaced for such plantations, and once functioning, these plantations are known to violate their workers’ human rights. to top it off, the biodiversity of these forests are being compromised, and orangutans and other species are becoming increasingly endangered from such vast deforestation.  

ferrero corporation produces nutella along with a variety of other products such as kinder treats, tic tacs, and ferrero rocher chocolates. the company has been widely criticized for using palm oil in products, which continues to fuel the demand for palm oil plantations. in 2015, france’s minister of the environment made a bold statement, declaring that consumers should stop eating nutella if they want to help save the rainforest.

the ferrero group responded by claiming it sources about 170,000 metric tons of palm oil annually, representing a mere 0.3 percent of the world’s 60 million metric tons of palm oil production (casey). due to such widespread criticism, ferrero group has been taking actions in many different ways to assure its customers the corporation is acting sustainably and responsibly.

as a first step, in 2005, ferrero group joined roundtable on sustainable palm oil (rspo). rspo is a non-profit organization uniting seven stakeholders from the palm oil industry to ensure certified palm oil is environmentally and socially sustainable. in 2013, ferrero group stated that all nutella products contain 100% segregated rspo certified palm oil, and are traceable back to the plantation and production line (“only sustainable traceable certified palm oil for ferrero”). ferrero group also launched its 10-point palm oil charter in 2013, yet another commitment to consumers that the palm oil used in nutella does not contribute to deforestation, species extinction, greenhouse gas emissions, or human rights violations.

in order to implement the charter and to remain transparent about the process, ferrero group partnered with ngos, one being the forest trust, which will monitor and publicly report the company’s performance every six months.

in 2015, ferrero group became a member of the palm oil innovation group (poig), which builds upon rspo’s original commitments and standards. ferrero group is not only contributing to these polycentric efforts but the corporation is also becoming more transparent.

nutella’s website contains significant information regarding palm oil: what it is, how palm oil is harvested, environmental allegations against the company, and frequently asked questions about the crucial ingredient.

the website also contains key numbers. ferrero group claims to have 99.5% traceability to the plantations and countries from which their palm oil comes. this number is more realistic than the 2013 claim of supposedly knowing where 100% of ferrero group’s palm oil is from. additionally, the palm oil producing countries are listed: peninsula malaysia produces 75.87% of total volumes, papua new guinea produces 18.17%, insular malaysia produces 3.67%, brazil produces 1.2%, indonesia produces 0.91%, guatemala produces 0.1%, and the solomon islands produce 0.08%. finally, ferrero group also launched the “fer-way project” in 2014, which supports the development of a corporate circular economy model.

ferrero group is clearly working to make the company appear to be sustainable and environmentally and socially conscious at the very least. in fact, greenpeace actually came to the company’s defense after the french minister of the environment called for consumers to boycott nutella products.

however, there is no easy answer in this situation. there are certainly improvements that could be made when it comes to the sustainability of the palm oil industry, which ferrero group seems to be leading. roundtable groups may be hosted, but they are not the perfect solution.

groups like rspo involve many different stakeholders and since all regulations must be passed via consensus, the actual standards for certification are set low in order to keep all stakeholders on board. but large corporations like ferrero hold the power to change the status quo of palm oil.

so, where does the consumer go from here? there’s no perfect solution or easy answer. but consumers hold a significant amount of power in today’s day in age. completely avoiding palm oil is not only practically impossible but could also be considered unsustainable as so many people depend on the industry for an income.

perhaps a better response is to be aware of how many products palm oil is found in and attempt to minimize the use of such products, if possible. when purchasing products that contain palm oil, ensure the products is made by a company that is certified sustainable as a member of rspo or another similar roundtable.

vote with your dollar to show corporations that sustainability is a not a choice, but mandatory. this does not mean you need to swear off nutella, but perhaps minimize how often you do indulge in the sweet snack, only saving it for special occasions. maybe mom always knew best.