Palm oil tree

Palm Oil

Our Approach

Palm oil is used as a raw material in many food and non-food products, such as biscuits, detergents, candles and spreads. Palm oil has the highest yield compared to rapeseed, sunflower, or coconut oil, and is the most versatile and efficient oil with regard to consistency and durability. Despite these positive characteristics it is frequently criticised for causing deforestation of large areas of rainforest to make way for palm oil plantations.

In order to ensure sustainable palm oil production, we have been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2011. The RSPO’s standard covers deforestation and further environmental impacts, as well as social aspects such as land rights and labour standards.

We use sustainable RSPO-certified palm oil for 100% of our own label food and non-food products. Our engagement plan for palm is complemented by active memberships in several multi-stakeholder initiatives and a strategic approach to smallholder farmers.

Our Actions

Certification

The ALDI SOUTH Group wants the consumer to be able to rely on the sustainability of their purchasing decisions - a sustainable product of high quality to a good price should be the norm.

This is why we use 100% RSPO-certified palm oil in all our own label food and non-food products. RSPO-certification ensures that palm oil used for ALDI products is produced in an environmental friendly and social responsible way. Palm oil producers are certified through strict verification of the production process in line with the RSPO Principles & CriteriaIn order to ensure that the palm used for our products has been produced sustainably, we rely on the RSPO Chain of Custody Standards. Each part of our supply chain needs to be certified and certified volumes are audited by an independent third party.

In order to better understand the complexity of a palm supply chain, it is displayed in a simplified way in the following graphic:

Palm oil supply chain

For commodities with complex supply chains, such as palm, it is important to carefully choose the most efficient tools to create impact on the ground: For palm, we collaborate pre-competitively with other businesses via the Palm Oil Transparency Coalition. POTC is formed of businesses collaborating in a pre-competitive coalition to remove deforestation and exploitation from the palm oil production sector.

We aim to achieve this by using a robust engagement and evaluation process for measuring the progress of the major First Importers of palm oil into international markets.

Supply Chain

Supporting smallholders

Approximately 40% of the globally traded palm oil is produced by smallholders. Certification requirements often represent a barrier for smallholders to participate in global supply chains. The main reasons are the administrative burden and cost linked to certification. Based on this knowledge, we developed an approach to include smallholders in the scope of our commitment:

  1. We purchase and accept RSPO Independent Smallholder Credits to support their work directly.
    Trading RSPO Credits provides smallholders direct access to the RSPO premium for growing sustainable palm oil. Smallholders do not always have access to a certified mill, and so Independent Smallholder Credits are the only possibility for smallholders to benefit from an RSPO premium for growing certified palm. 
    Via our E-Learning, we inform suppliers about these framework conditions and encourage them to engage with smallholders. Also in exchange with actors further up the supplier chain, such as traders, we underline the importance of integrating smallholder farmers in sustainable global palm supply chains.
  2. We participate in the RSPO Smallholder Standing Committee as a retailers’ representative. In this way, the availability of RSPO Independent Smallholder (I.S.) Credits can be increased.
    The aim is to empower smallholder farmers within the RSPO and engage in a platform that makes the palm oil market more sustainable. One of the major achievements of this group so far was the development of a smallholder palm oil standard. In this way, the availability of RSPO Independent Smallholder (I.S.) Credits can be increased.
  3. We initiated a smallholder project in Côte d'Ivoire in order to pave the way for a sustainable cultivation of palm oil, focussing on the protection of native forests and environmentally sound cultivation methods.

Visits & Assessments

As part of our engagement, we regularly visit and assess production sites together with our business partners in our food and non-food supply chains.

World map visits and assessments

Stakeholder Dialogue & Capacity Building

We believe the best way to protect the people and the environment is through joint initiatives and partnerships. For this reason, we engage in various multi-stakeholder initiatives and projects on the ground.

Our Goal & Performance

Our Goal: All palm (kernel) oil and palm (kernel) oil-based derivatives and fractions used in our own-brand products are certified.

100%

of certified palm (kernel) oil in our own-brand products (since 2018)

Sustainable Development Goals

12 Responsible consumption and production 13 Climate action 15 Life on land 17 Partnerships for the goals

UNGC

Human Rights

Principle 1

Support and respect the protection of human rights

Principle 2

Not complicit in human rights abuses

Labour

Principle 3

Uphold freedom of association and recognition of right to collective bargaining

Principle 4

Elimination of forced and compulsory labour

Principle 5

Abolition of child labour

Principle 6

Elimination of discrimination in respect of employment and occupation

Environment

Principle 7

Precautionary approach to environmental challenges

Principle 8

Promote environmental responsibility

Principle 9

Development and diffusion of environmentally friendly technologies

GRI references

GRI 103: Management approach 2016

Global Reporting Initiative 103-1 Global Reporting Initiative 103-2 Global Reporting Initiative 103-3