April 12, 2017
BASF launched its first Palm Progress Report. As one of the leading global processors, BASF is presenting its roadmap for sustainable palm, its collaboration along the value chain and the progress it is making in driving physical transformation in oleoderivatives.
One of BASF’s key renewable raw materials is palm kernel oil and its primary derivatives which are mainly used for the production of ingredients for the cosmetics, detergents and cleaners industries, as well as in human nutrition. In 2016, BASF expanded its purchasing volumes by about 32,000 tons to 158,000 metric tons, and nearly doubled the sales of certified products based on palm kernel oil. BASF had an overall oil palm exposure of 508,000 metric tons in 2016.
“BASF has made good progress on its way to achieving sustainable palm products and we believe sustainable palm is possible. A reliable certification system and maximum transparency are key steps towards protecting high carbon stock forests”, says Jan-Peter Sander, Senior Vice President BASF Personal Care Europe, at the in-cosmetics tradeshow in London. “This allows us to help our customers fulfill the obligations they took to achieve sustainable palm-based products, and participate actively in shaping the market as it evolves”, Sander says.
BASF’s first Palm Progress Report states the dilemma in oil palm plantation development and the palm footprint, and outlines market developments and the achievements on the way to making the BASF palm commitment, which was extended in 2015. Gebze in Turkey is now the latest of 19 certified sites in four regions. BASF thereby further expanded its network in 2016 and has increased its range of products in the personal care industry to more than 120 ingredients certified as “Mass Balance”.
For the human nutrition market BASF received RSPO certification in 2016 based on the supply chain module “Mass Balance” for a selection of its health ingredients portfolio in the Ludwigshafen site. Other BASF sites are planned to follow in 2017. Since 2016, selected food performance ingredients are offered as “Segregated”.
Moreover, the BASF Palm Progress Report features its Palm Commitment and Palm Sourcing Policy, which was first published in 2016, as well as its approach to include smallholder farmers. BASF became a member of the Roundtable on Sustainable Palm Oil in 2004 and belongs to the High Carbon Stock Steering Group, in order to drive additional forest conservation requirements forward.
At the in-cosmetics tradeshow in London, BASF held its second Palm Dialog. This provided an opportunity for personal care ingredient suppliers and cosmetic manufacturers to exchange recent trends and developments in the oleo-chemical industry and engage in discussion with experts. The BASF Palm Dialog and webinars on palm-based oleoderivatives are important elements when collaborating with stakeholders along the value chain.