  {"id":8521,"date":"2016-11-03T21:12:58","date_gmt":"2016-11-04T01:12:58","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/put-down-that-cookie-youre-causing-climate-change\/"},"modified":"2016-11-03T21:12:58","modified_gmt":"2016-11-04T01:12:58","slug":"put-down-that-cookie-youre-contributing-to-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/put-down-that-cookie-youre-contributing-to-climate-change\/","title":{"rendered":"Put down that cookie, you\u2019re contributing to climate change"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Let\u2019s talk about palm oil.\u00a0<\/strong>Palm oil is a <em><strong>cheap-to-produce<\/strong><\/em>, relatively healthy, highly prevalent but rarely discussed ingredient found in anything from lipsticks and lotions to cookies.\u00a0With global palm oil consumption\u00a0exceeding 64 million metric tons per year, palm oil deforestation is one of the leading contributors to greenhouse gas emissions. In fact,\u00a0tropical deforestation is one of the driving factors in rapidly progressing climate change, accounting for ~10% of total global warming. [1]<\/p>\n<figure style=\"width: 383px\" class=\"wp-caption alignright\"><a href=\"http:\/\/assets.climatecentral.org\/images\/made\/11-14-14-ensia-deforestatio_500_307_s_c1_c_c.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"http:\/\/assets.climatecentral.org\/images\/made\/11-14-14-ensia-deforestatio_500_307_s_c1_c_c.jpg\" alt=\"Fires associated with clearing land for oil palm plantations in the Indonesian province of Riau release massive amounts of carbon into the atmosphere and spread health-harming haze across the landscape. Credit: climatecentral.org\/Wakx\/flickr\" width=\"383\" height=\"235\" \/><\/a><figcaption class=\"wp-caption-text\">Fires associated with clearing land for oil palm plantations Credit: climatecentral.org\/Wakx\/flickr [2]<\/figcaption><\/figure>\n<p style=\"text-align: justify\"><strong>Where does it come from and why do we care?<\/strong> Over 80% of the world\u2019s Palm Oil supply is produced in Indonesia and Malaysia, home to rich biodiversity and rainforests that are classified as high carbon stock (HCS) forests. [2]<\/p>\n<p style=\"text-align: justify\">Deforestation for palm oil production most frequently occurs through a process of burning peat (thick layers of decayed vegetation coating the forest floor), which releases extremely high levels of carbon dioxide \u2013 one hectare of burned peatland can release up to 6,000 metric tons of C02<strong><em>.<\/em><\/strong> These emissions are damaging to the ozone and result in notoriously high air pollution in neighboring cities, not to mention the rampant destruction and displacement of native wildlife and biodiversity. [2]<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Why does Unilever care about climate change? <\/strong>Unilever purchases ~3% of global palm oil production (~1.5 million tons annually), making it the world\u2019s top consumer of palm oil. Accordingly, they have been at the <a href=\"https:\/\/www.unilever.com\/Images\/unilever-palm-oil-position-paper-may-2016_tcm244-481753_en.pdf\">forefront of corporate responsibility<\/a> and commitment to sustainability. In 2004, Unilever helped found the Roundtable on Sustainable Palm Oil (RSPO), a not-for-profit initiative that is taking an active role in shaping global standards for the production of sustainable palm oil. Beginning in 2009 Unilever publicly committed to sustainably sourcing their palm oil. They set a target to be totally RSPO certified by 2015 and achieved that 3 years ahead of schedule. [3] However, A RSPO-certified processor of palm oil can source materials from multiple plantations without confirming the sustainability of the supply <strong>[for more info on RSPO supply chains, <a href=\"http:\/\/www.rspo.org\/certification\/supply-chains\">read here<\/a>].<\/strong> [4]<\/p>\n<p><span style=\"text-decoration: underline\"><strong>How palm oil makes its way from a plantation in Indonesia to your cookie:<\/strong><\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-9226\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture1-14-300x253.png\" alt=\"picture1\" width=\"600\" height=\"506\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture1-14-300x253.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture1-14-768x648.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture1-14-600x506.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture1-14.png 975w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<p style=\"text-align: justify\"><strong>What\u2019s left to be done? <\/strong>Unilever\u2019s progress is admirable, but like many large corporations the majority of their RSPO-certified palm oil is backed by something called GreenPalm Certificates. Referring back to the supply chain of palm oil, the issue of deforestation stems from the original farmer, but is traded upstream through manufacturers, processors, and distributors before hitting the shelf in the form of a Unilever product. While Unilever is admirably able to vouch for the sustainability of 19% of their oil, this means that the remaining 81% covered by GreenPalm certificates is untraceable and is likely a product of deforestation. [3]<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture4-4.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-9294 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture4-4-300x103.png\" alt=\"picture4\" width=\"810\" height=\"278\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture4-4-300x103.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture4-4-768x265.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture4-4-1024x353.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture4-4-600x207.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture4-4.png 1560w\" sizes=\"auto, (max-width: 810px) 100vw, 810px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Given that consumer awareness of the issue is relatively low, and upstream partners in the supply chain have little stake in the traceability of their palm oil, the burden falls on the consumer goods companies to help stoke sufficient demand to warrant a change in the supply chain.<\/p>\n<p style=\"text-align: justify\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-9227 alignright\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture2-4-300x127.png\" alt=\"picture2\" width=\"490\" height=\"207\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture2-4-300x127.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture2-4-768x326.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture2-4-600x255.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture2-4.png 975w\" sizes=\"auto, (max-width: 490px) 100vw, 490px\" \/><\/p>\n<p style=\"text-align: justify\">In its efforts to achieve 100% identity-preserved palm oil by 2020, Unilever\u2019s approach has been to go directly to the supply countries and build their own facilities.<\/p>\n<p style=\"text-align: justify\">In 2015 Unilever invested 130 million Euros to build and staff an independent production facility in North Sumatra. By partnering with local smallholders (small, independent plantations) to improve yields in a sustainable manner, Unilever is simultaneously taking control of their own supply chain process and helping mitigate impacts of global warming. [3]<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Risks ahead: <\/strong><\/p>\n<ul>\n<li style=\"text-align: justify\">Consumers don\u2019t care enough about the sustainability of their products to tolerate price increases. In this case, either Unilever will need to absorb the extra costs or forego their efforts to stem deforestation.<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong>Do more!<br \/>\n<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify\">While the recent 130 million euro investment in supply chain traceability seems admirable, compared to Unilever\u2019s consolidated net profit of ~$5.3 billion they probably have some room to increase investment.<\/li>\n<li style=\"text-align: justify\">Enforce more stringent certification standards for RSPO members<\/li>\n<li style=\"text-align: justify\">Consider eliminating the GreenPalm program \u2013 it was a good way to start off, but is it really effective in the long term? (read more <a href=\"http:\/\/www.greenpeace.de\/files\/publications\/rspo-certifying-destruction.pdf\">here<\/a>)<\/li>\n<\/ul>\n<p><strong>word count: 790<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Sources:<\/p>\n<p>[1] Statista 2016: Consumption of vegetable oils worldwide from 2012\/13 to 2016\/2017, by oil type (in million metric tons).<\/p>\n<p>&lt;https:\/\/www.statista.com\/statistics\/263937\/vegetable-oils-global-consumption\/&gt;<\/p>\n<p>[2] Kodas, Michael. (2014, November 16). Palm Oil Production Poses Problems for the Climate.<\/p>\n<p>&lt;<a href=\"http:\/\/www.climatecentral.org\/news\/palm-oil-production-climate-18338\">http:\/\/www.climatecentral.org\/news\/palm-oil-production-climate-18338<\/a>&gt;<\/p>\n<p>[3] <em>Unilever Sustainable Palm Oil Sourcing Policy \u2013 2016<\/em>.<\/p>\n<p>&lt;<a href=\"https:\/\/www.unilever.com\/Images\/unilever-palm-oil-policy-2016_tcm244-479933_en.pdf\">https:\/\/www.unilever.com\/Images\/unilever-palm-oil-policy-2016_tcm244-479933_en.pdf<\/a>&gt;<\/p>\n<p>[4] Roundtable on Sustainable Palm Oil (RSPO). 2016. <em>RSPO Supply Chain Systems Overview. <\/em><\/p>\n<p>&lt;<a href=\"http:\/\/www.rspo.org\/files\/docs\/rspo_fact_sheets_systems.pdf\">http:\/\/www.rspo.org\/files\/docs\/rspo_fact_sheets_systems.pdf<\/a>&gt;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What Unilever talks about when it talks about palm oil<\/p>\n","protected":false},"author":2259,"featured_media":9332,"comment_status":"open","ping_status":"closed","template":"","categories":[1218,63,690,1275,1437,17,44,14,1102],"class_list":["post-8521","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-climate-change","category-consumer-goods","category-consumer-products","category-deforestation","category-palm-oil","category-supply-chain","category-supply-chain-management","category-sustainability","category-unilever"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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