It’s often said that 12 months is a long time in politics. The same could be said of sustainable palm oil.

A year ago, we were still talking about the need for British businesses to buy into sustainable palm. Now the UK is at the forefront of what’s starting to look like a revolution. Real progress is being made, with major organisations such as Procter & Gamble showing commitment to the sustainable use of palm.

Though this is to be welcomed, operators in food and personal care that rely on palm and its derivatives must ensure they don’t just allow this to happen around them. With the clock ticking for firms to show commitment to responsibly sourced palm oil, it’s no exaggeration to say that those who fail to prepare will suffer commercial consequences.

UK retailers must commit to sourcing 100% sustainable palm oil in own-brand products by the close of 2015. Many are already pushing suppliers to get audits booked now so they can buy products certified to the RSPO standard - the only globally recognised standard that guarantees sustainability of palm oil.

“Companies will find it difficult to trade without certification”

Similarly, the UK government has a procurement guideline that states that any palm oil purchased has to be sustainable by the end of next year. As such, those in foodservice and personal care are only going to find themselves pushed more and more for appropriate certification.

With momentum gaining rapidly, however, there is a distinct possibility of a shortage in the supply of RSPO-certified palm oil. When manufacturers and suppliers HAVE to start buying it, the supply may be limited, at least in the short term.

There are two main reasons for this. Firstly, the biofuel industry is now interested in sustainable palm oil. All EU member states have an obligation to meet a 10% renewable energy target by 2020 and since April 2013, the RSPO RED Supply Chain certificate has been EU Renewable Energy Directive-approved. This means renewable diesel produced from RSPO RED certified palm oil counts towards emission reductions, making it an attractive commodity.

Add to this that palm is trading fairly cheaply compared with diesel, and it’s no surprise that major fuel companies represent significant competition for supplies.

Secondly, palm oil suppliers tend to sell contracts in advance, booking out sales of future sustainable palm on the basis of current availability. Their predictions of limited future stock may mean it becomes a reality. If you, or your supply chain, aren’t engaging with palm oil suppliers in the next six to 12 months, then you could find yourselves in a very difficult situation.

Companies will soon find it very difficult to trade without certification, not only nationally but internationally. By far the biggest consequence will be finding yourself excluded from the supply chain of all big UK retailers.

One of the issues raised in the past surrounding certification was the cost, but now the value of certification far outweighs the expense. Fortunately, RSPO certification isn’t particularly difficult or expensive.

So become certified, and the sooner the better.

Andy Green is sustainability sales manager at BM TRADA

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