EPOA Impact Report 2015

IMPACT REPORT European Palm Oil Alliance

2015 “Broadening the palm oil alliance and building a willing coalition in Europe”

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Working with key national industry organisations and local alliances in Europe, the European Palm Oil Alliance (EPOA) has built a strong commitment for creating a balanced and objective view on the nutritional and sustainability aspects of palm oil. In 2015 EPOA broadened the alliance and increased the impact of the debate in Europe.

A Platform for Debate

EPOA was initiated in 2013 to create a platform to rebalance palm oil related issues and established a solid working base in 2014. In 2015 EPOA improved its effectiveness by including sustainability in its objectives and working more closely together with stakeholders and important organisations, both at a European and at a national level.

EPOA supported the establishment of new national industry alliances across Europe. These alliances provide clear leadership in the effort to rebalance the palm oil debate and monitor the use of certified sustainable palm oil. As a result, the debate is becoming more balanced and stakeholders throughout the supply chain are more cooperative. The outreach to sustainable trade and partner organisations and national initiatives established a trusted and cooperative relationship on which EPOA could build.

Italy •

Installation Italian Union for Sustainable Palm Oil

•

Successful media briefing

•

Campaign: ‘Let’s talk about palm oil’

•

EPOC 2015 Milan

•

Media coverage EPOC

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European Sustainable Palm Oil Initiatives •

Belgium - Belgian Alliance Sustainable Palm Oil

•

Denmark - Danish Initiative for Sustainable Palm Oil

•

France - French Alliance Sustainable Palm Oil

•

Germany - German Forum Sustainable Palm Oil

•

Italy - Itailian Union for Sustainable Palm Oil

•

The Netherlands - Dutch Task Force for Sustainable Palm Oil

•

Norway - Norwegian Alliance for Sustainable Palm Oil

•

Sweden - Swedish Initiative on Sustainable Palm Oil

•

United Kingdom - UK Statement on sustainable production of palm oil

In 2015 EPOA focused on local engagement in France, Italy, Germany and Denmark and helped to set up new alliances in e.g. Spain. Several key retailers were engaged in discussions to better understand their issues and policies around the use of sustainable palm oil. By increasing engagement with partners and allies, defining a coordinated approach in Europe and training members, partners and allies, EPOA is amplifying its outreach and effectiveness. By organising the annual well-received European Industry Meeting it has strengthened its relationship with our partners and allies.

On the commitment and monitoring regarding sustainable palm oil, EPOA works closely together with IDH and RSPO.

Impact Report - 2015

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RSPO As the global standard for sustainable palm oil, RSPO has played a key role as the broker of an agreement on the key criteria to produce and certify sustainable palm oil. RSPO has also worked to support increased uptake of CSPO right down the supply chain. Since 2011 RSPO has supported initiatives in European countries who have made commitments to source 100% CSPO by, at the latest, 2015 or 2016. RSPO is also supporting and catalysing activities in other EU states to reach a target of 100% CSPO in Europe by 2020. With CSPO market penetration targets for Malaysia and Indonesia of 50%, India 30% and Indonesia 10%, the RSPO is extending its outreach work to the other large consumer markets.

In Europe and worldwide, RSPO is working to inform and educate businesses and consumers about CSPO in order that they demand that the palm oil they source or that is present in their products be produced sustainably. In Europe, for example, RSPO organises an annual conference to inform the market about the latest developments on the supply-side of sustainable palm oil whilst also allowing the exchange of best practice from business and NGOs active in the demand-side of the supply chain.

The RSPO has also embarked on a pro-active communication strategy. As a result online mentions increased by 106% for sustainable palm oil and 88% for RSPO over the first 10 months of the campaign and perceptions of and responses to RSPO continue to improve.

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The RSPO has adopted new communication and claims guidelines prohibiting the use of no palm oil labelling in relation to sustainability of palm oil. They will actively inform the new guidelines to their members and are also

Impact Report - 2015

structurally changing the entry audit to include a screening on no palm oil claims. RSPO will act on formal complaints from RSPO members as well as from non-RSPO members, regarding the use of no palm oil labelling by its members.

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In order to re-balance the debate in Europe, EPOA enriched its knowledge base, empowered its members, partners and allies, engaged with friend and foe and built resistance against attacks on palm oil. This was possible through the creating of a wide variety of communication tools and their translation in the languages of the EPOA priority countries.

Through its website, printed materials and presentations at various meetings EPOA was a vibrant presence in the industry, recognised and known as a reliable interlocutor and source of information. EPOA was invited to speak at several conferences, such as NutrEvent in Lille, Oilseeds Conference in Barcelona, Euro Fed Lipid in Florence and the EU and Global Value Chains high-level conference in Amsterdam.

PALM OIL AND PALM KERNEL OIL IN EUROPE Main Trade Flows

PALM OIL USE IN THE EU

EACH FRUIT CONTAINS

GROWING IN BUNCHES ON PALM OIL

30-35% OIL

BEST PRACTICES

Germany

GLOBAL SOURCE

TREES

PALM OIL BALANCE

WHERE DOES IT COME FROM? 2,500 REGIONS AROUND THE EQUATOR

Indonesia

Spain

RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS - COMMITMENT

AFFECTED BY GROWERS AND MILLS -

TO CONTINUOUS IMPROVEMENT IN KEY AREAS OF ACTIVITY.

59229

6521

World Production Palm Oil in 1000 tonnes

World Production 500 Palm Kernel Oil 0 in 1000 tonnes

2002

2006

2010

PALM KERNEL OIL BALANCE

UK

0

Germany

Italy

Sweden

Austria

Romania

Belgium-Luxembourg

Portugal

Italy

Poland

UK

Spain

France

Reference year: 2014 Source: Oil World Annual 2015 All volumes are in thousand metric tonnes

The Netherlands Spain

European Palm Oil Import

EUROPE

100 The Netherlands Spain

Legend

PALM OIL

WILL CONTINUE TO BE THE MOST FAVOURABLE OF ALL VEGETABLE OILS IN

300

200

Italy

Hungary

0

2014

Total Import

Domestic Use

Matured Area in 1000 ha

Germany

80 40

Facts and Figures on Trade Flows and Sustainability

Other

16472

1,000

160 120

Italy

400

Malaysia 2,000 Thailand

1,500 ALL OF THE WORLDS PALM FRUIT GROWS HERE

INTRA EU EXPORT PALM OIL GERMANY

1,281 1,756

Sweden

IN THE WORLD

PALM OIL AND PALM KERNEL OIL IN EUROPE

Belgium-Luxembourg

50%

The Netherlands

50%

unsaturated fatty acids

0

UK

Palm Oil 8,000 Palm Kernel Oil 7,000 6,000 5,000 4,000 saturated 3,000 fatty acids 2,000 PALM OIL1,000 IS THE MAIN 0 OF NATURAL SOLID 1990 FAT 1994 1998

COMING FROM PALM FRUIT

50

Germany

150 100

1,191

PALM OIL

Other

Papua New Guinea

0

Malaysia

100

Indonesia

200

WHAT IS PALM OIL?

PRINCIPLES OF THE ROUNDTABLE ON SUSTAINABLE PALM OIL COMMITMENT TO TRANSPARENCY - COMPLIANCE WITH APPLICABLE LAWS & REGULATIONS - COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY - USE

BY GROWERS OF APPROPRIATE AND MILLERS - ENVIRONMENTAL RESPONSIBILITY AND CONSERVATION OF NATURAL RESOURCES AND BIODIVERSITY - RESPONSIBLE CONSIDERATION OF EMPLOYEES, AND OF INDIVIDUALS AND COMMUNITIES

200

2,378 The Netherlands

3RD USER OF

EU PALM OIL AND PALM KERNEL OIL IMPORT

SUSTAINABLE PRODUCTION

250

UK

PALM KERNEL OIL EXPORT TO THE EU THE EU IS THE 300

INTRA EU EXPORT PALM OIL THE NETHERLANDS

515

3,220

Poland

4,141

Denmark

Bioenergy applications

Food, feed and other

Other

Papua New Guinea

Thailand

Malaysia

4,000 3,000 2,000 1,000 0

Indonesia

PALM OIL EXPORT TO THE EU

UK

Intra European Palm Oil Export EU: the European Union (28)

WHY IS PALM OIL SO POPULAR?

20%

• VERSATILITY • FUNCTIONAL BENEFITS • WIDESPREAD AVAILABILITY • EFFICIENT

OF PALM OIL GLOBALLY IS CERTIFIED BY THE RSPO

CURRENT NATIONAL INITIATIVES OR COMMITMENTS ON SUSTAINABLE PALM OIL

• •

OIL PALMS ONLY USE 6% OF THE GLOBAL CULTIVATED LAND DEDICATED TO VEGETABLE OIL PRODUCTION, WHILE IT IS DELIVERING 32% OF THE TOTAL VEGETABLE OILS VOLUME

HOW IS IT USED?

TOWARDS 100% SUSTAINABLE PALM OIL IN EUROPE BY 2020

FOOD

FEED

NON-FOOD

BIOENERGY APPLICATIONS

BROUGHT TO YOU BY:

Support

The success of European programmes run by EPOA and the Dutch Task Force on Sustainable Palm Oil across Europe have attracted further funding from IDH (the Sustainable Trade Initiative) and the Dutch Government for 2015. The Dutch Government will also use the IDH financially support via MVO to increase European uptake of sustainable palm oil between 2016 and 2018. This will complement the work of EPOA in supporting the national initiatives in its communication. EU member state governments are lining up to support 100% Certified Sustainable Palm Oil. The Dutch Government took the Dutch EU-presidency in the first half of 2016 as a springboard to align EU governments as well as the European Commission and to support national initiatives to increase the uptake of sustainable palm oil. The commitment enshrined in “The Amsterdam Declaration in Support of a Fully Sustainable Palm Oil Supply Chain by 2020” is supported by the governments of UK, Denmark, France, Germany and the Netherlands, as well as the following organizations:

THE MOST WIDELY USED VEGETABLE OIL

© 2015

The Palm Oil Story

FACT OR FICTION?

l l l l

l l l l

• • • •

Palm oil offers a good balance between the nutritional composition and the taste and texture of a product.

Sourced from palm fruit, palm oil is a natural and versatile ingredient, offering a variety of functional benefits.

Lately, controversy exists over the use of palm oil, both regarding health, and in terms of its environmental impact.

Is this justified?

FACT:

sunflower oil and rapeseed oil are high in unsaturated fatty acids.

PUFA

Palm oil

NOT DESIRED • Filling is running out • No match with shell

Indonesia & Malaysia provide

THE PALM OIL STORY Each palm fruit contains 30-35% oil

Separation of Palm Oil (fractionation)

Excellent mouth feel

PALM OIL

SEPARATING OLEIN

LIQUID at room temperature NO STRUCTURE

3

FICTION:

FACT:

Products labelled as palm oil free are healthier than food products containing palm oil.

Substituting palm oil with other fats may have unfavorable effects.

NO PALM OIL

PALM OIL

No cultivation in primary forests Low pesticides usage

Education for boys and girls

growth

+25%

Replacing palm oil in food products or diets with fats higher in SAFA will not make a product more healthy.

STEARIN

SOLID at room temperature

PROVIDES STRUCTURE

PALM OIL: A VALUABLE INGREDIENT FOR CHOCOLATE

fish haricot verts + margarine potatoes

We need fat every day

x million tons

proteins

6.7

8.7

4.8

Environmental and social responsibility for future generations

oil (tons) per hectare

A

Daily intake recommended

by WHO

fats

E

D K

2011 2012

2013

carbohydrates

• fat-soluble vitamins • nervous tissue • hormones • building block cells

• energy • insulation • skin • hair

creating a balanced view on palm oil and food | www.palmoilandfood.eu | info@palmoilalliance.eu

For scientific references:

hamburger salad + dressing french fries

hamburger salad + dressing french fries

FICTION:

Using products labelled as palm oil free is better for the environment and for the local population.

3.7

5

Highest Yield 0.7

Palm

PART OF A HEALTHY DIET

Gaining Government 2020

at ROOM TEMPERATURE

• •

0.6

FICTION:

smallholders

FACT:

Simply replacing palm oil with other types of vegetable oil would create similar - if not even larger - environmental and social problems.

4

The oil palm tree is the most efficient oil crop in terms of land use. It has the highest yield compared to other oil crops. Replacing palm oil with other types of vegetable oil (such as sunflower, soybean, or rapeseed oil) means that much larger amounts of land would need to be used.

0.4

The best solution is to ensure you buy products that contain sustainable palm oil, certified by the Round Table on Sustainable Palm Oil (RSPO).

FACT:

The palm oil plantation industry is dominated by few large enterprises.

large scale plantations

• • •

EPOA ensures there is a scientific basis for its communication on the sustainability, functional and nutrition aspects of palm oil. Key messages are checked with the Scientific Advisory Panel or experts in the field.

In November 2015 EPOA organised a scientific expert meeting on the relationship between saturated dietary fats and the risk of coronary heart disease and stroke, to better understand the latest scientific progress made in this field. Communication about the outcome aims to reduce confusion on this topic among stakeholders and in the media. The proceedings will be published in a peerreviewed journal in 2016 and communicated at EU and International scientific conferences.

The relation between nutrients and health should be considered within the whole diet and not in terms of single nutrients.

Soy

saturated fatty acids

x

Annual sustainable production

18

when HEATED

50%

alternative to trans fat

SUSTAINABLE PRODUCTION 68

LIQUID SEMI SOLID

50%

unsaturated fatty acids

Use in food dates back 10,000 years

Rape

Soy

Fruit is harvested every 10 days

Sunflower

0.4

54

European Palm Oil Alliance

FAT/OIL

Data sources: Oil World 2013 | www.rspo.org

0.6

Canola

Palm

A palm tree produces 40 kg of oil every year

From the fruit of a palm tree

0.7

Sunflower

RSPO certified palm

oil (tons) per hectare

Highest Yield

now

COCOA POWDER MILK POWDER

Replacement of palm oil with other fats and oils has both favourable and unfavourable health effects (Fattore 2014).

NUTRITIONAL BALANCE

3.7

1997

SUGAR

Long shelf life

Excellent cooking properties

of the world production

WORLD DEMAND PALM OIL

x million tons

Smooth creamy texture

Crispness & crunch

85%

Palm fruit grows best around the equator

Palm oil is a good replacement for partially hydrogenated fat containing unhealthy fatty acids.

From a tropical climate

A HIGHLY EFFICIENT CROP 5.0

Neutral taste & smell

2

Dietary advisory bodies recommend moderate consumption of foods high in saturated fats, replacing SAFA with PUFA, and avoiding trans fatty acids (TFA).

A VERSATILE INGREDIENT

THE MOST WIDELY USED VEGETABLE OIL IN THE WORLD!

Rapeseed oil

FACT: There is no indication that consumption of palm oil in a balanced diet is related to any specific health concern.

What is a praline filling?

Palm oil creates jobs: 1 worker per 8ha

SAFA

Palm oil is often used as an ingredient and mixed with other vegetable oils. Together they determine the fatty acid composition of a food.

FICTION: Palm oil increases the risk of cardiovascular diseases.

• White appearance

STIMULATES LOCAL ECONOMIES

Olive oil

• Shiny surface

Sunflower oil

50% saturated fatty acids

Lard

MUFA

50% unsaturated fatty acids

Tallow

• Firm structure

1

Palm oil

• Good mouthfeel

Let’s get the facts right.

FICTION:

Palm oil is a mix of saturated and Palm oil is unhealthy because unsaturated fatty acids. of its content of saturated Coconut, dairy butter and cocoa butter contain higher fatty acids. amounts of saturated fatty acids than palm oil. Olive oil,

Dairy butter

European Palm Oil Alliance

PURPOSE

Cocoa butter

Requirements of fillings

Facts and Figures

Coconut oil

PALM OIL IN CHOCOLATE FILLINGS

THE PALM OIL STORY

Belgian Alliance Sustainable Palm Oil CAOBISCO, the Association of Chocolate, Biscuit and Confectionery Industries of Europe Danish Food and Drink Federation Initiative Dutch Alliance Sustainable Palm Oil German Forum Sustainable Palm Oil FEDIOL, European Vegetable Oil and Proteinmeal Industry Federation French Alliance Sustainable Palm Oil Food and Drink Federation - UK Statement on Sustainable Palm Oil signatory IMACE, European Margarine Association Italian Union for Sustainable Palm Oil Swedish Initiative for Sustainable Palm Oil

Deploying Scientific Knowledge

Over 40% of palm oil is produced by smallholders.

Oil palm trees are growing on both large-scale plantations and small-scale family farms.

In most palm oil-producing countries, palm oil trade has the potential to contribute significantly to poverty reduction and economic growth.

Palm oil production creates jobs: 1 worker per 8 ha

Creating a balanced view on palm oil and food www.palmoilandfood.eu

Click on the images to view the full version.

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Impact Report - 2015

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Nutella in the Hot Seat

EPOA assisted the French Alliance and took a coordinating international role in addressing the issue of a proposed Nutella ban. An emotional plea from SÊgolène Royal, minister of Environment in France - to boycott Nutella because it contains palm oil, created a massive public reaction of all stakeholders, NGOs and (Italian) politicians.

The main response was that the emotional statement was not fact based and counterproductive to sustainable palm oil production.

becoming members of national initiatives, underlining their willingness to start working together and stop boycotting palm oil.

Extending Membership Membership of Indonesia in 2016 will build up credibility of EPOA in Europe. With the broadening and strengthening of the alliance, EPOA will play a more active role in managing issues.

After publishing the statement on the EPOA website, WWF and Greenpeace stated publicly that the only alternative to palm oil is sustainable palm oil. Addressing the issue publicly helped change some of the negative sentiment around palm oil, specifically in Italy.

European Palm Oil Conference, Milan 2015

After organising a successful EPOC in Brussels in 2014, EPOA organised the third European Palm oil Conference in Milan, co-hosted by the freshly-installed Italian Union for Sustainable Palm Oil. The conference informed new players in the debate on existing fact-based information and provided more in-depth scientific data and new insights. It also provided an excellent networking and communication opportunity for the newly established Italian Initiative. After the widely covered media event organised by EPOA and RSPO in July, the EPOC conference and its discussion points were mentioned in several Italian media.

No Palm Oil Labelling

The negative consumer perception of palm oil seemed to level in France at the end of 2015, and the number of no palm oil labels in France, Belgium as well as Norway and now also in Italy show a less increase. After the petition

by Il Fatto Alimentare in Italy, retailers have started to reformulate their products without palm oil. Outreach to major retailers or retail organisations has led to some retailers refraining from using no palm oil labels or even Click on the image to view the full version.

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Impact Report - 2015

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A good example is E.Leclerc, a major retailer in France, becoming a full member of the French Alliance on sustainable palm oil. In 2016, a specific EPOA task force on no palm oil labelling will engage further with retailers, work on the legalisation of ‘free from’ claims and work to reduce the number of products carrying a no palm oil label.

Lessons Learned

The work of most national initiatives is a response to the issues or concerns of stakeholders. The fact that more no palm oil labels are appearing strengthens the Alliance’s conviction that the debate needs more active intervention.

The good news is that the increase seems to be levelling.

While starting form a negative place, media issues such as a ‘Nutella ban’ have provided the opportunity to re-tell the palm oil story and share key messages and there was a massive supportive response from stakeholders and partners.

Trend in number of no palm oil labels France & Belgium 800 700 600 500 400 300 200 100

2012

2013

2014

2015

Total RSPO Member

Belgium •

Brochure in HP waiting room

•

BASP-event sustainable palm oil

France

•

Successful media briefings

•

Tackling proposed Nutella ban

•

Formal support of charter by DETIC

•

Attenuated increase in no palm oil labels

•

Successful workshop on sustainable palm oil at

Explaining the full palm oil story from a sustainability and nutrition perspective enables EPOA and its partners to engage with key critical stakeholders such as WWF and Greenpeace. Focusing the work of the alliance in targeted working groups, adding more people to the team, training members, partners and allies and developing a coordinated issues management strategy in Europe, will help manage and contain potential issues related to palm oil and food. More effort will be needed to manage the response to explosive non fact-based media issues in countries where the debate is emerging as happened in Italy in 2015.

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Convergences •

New members Alliance

All in All

EPOA built on its material and extended its sciencebased content in 2015 and will continue to do so in 2016.

Actions against no palm oil labelling will remain high on the EPOA agenda for the next year. With the broadening and strengthening of the alliance, EPOA is able to play an even more active role in managing issues, lining up partner organisations and activating NGOs and governments to rebalance the debate on palm oil and food in Europe.

Impact Report - 2015

The European Palm Oil Alliance was founded to create a platform for palm oil-related issues and discussions.

Steering Committee: • Frans Claassen, Chair EPOA, Managing Director MVO - The Netherlands Oils and Fats Industry • Robert Horster, Trading Director Cargill • Loek Favre, COO IOI Loders Croklaan • Dr. Kalyana Sundram, Deputy CEO MPOC / Uthaya Kumar, MPOC Europe • Remond van Dorland, General Manager Wilmar Europe • Jonathan Pennefather, General Manager Sime Darby Unimills • Alberto Zanelli, General Manager Unigra •

Margot Logman, Programme Manager EPOA

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â&#x20AC;&#x153;Broadening the palm oil alliance and building a willing coalition in Europeâ&#x20AC;?

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