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Kellogg backs sustainable palm oil production with new funding initiative

FBR Staff Writer Published 07 March 2011

Kellogg Company said that it is providing financial support to sustainable palm oil production by purchasing GreenPalm certificates covering 100% of its global palm oil use. The company plans to purchase sustainable palm oil once a segregated palm oil supply is available that is financially and logistically possible.

In the meantime, the North American food company is helping to reduce deforestation from palm oil production through its support of GreenPalm certificates.

According to GreenPalm estimates, only 6% of the current global supply of palm oil is sustainably grown.

The Roundtable on Sustainable Palm Oil (RSPO) continues to work toward the development of a consistent and sufficient supply of segregated, sustainably grown palm oil.

However, it is currently not available outside of Europe and the form of palm oil Kellogg uses in Europe is not available in a segregated, sustainable supply.

Kellogg Company chief sustainability officer Celeste Clark said while palm oil is a very small percentage of the company's total ingredients, as a socially responsible company, concerns about the sustainable production of palm oil are clearly on its radar screen.

"We intend to continue this commitment until we are able to purchase a segregated supply of sustainably grown palm oil," Clark said.

Kellogg is also encouraging its blended palm oil suppliers to continue to step up the percentage of sustainable palm oil in the supplies they purchase, as the available supply increases, and supporting the Consumer Goods Forum pledge to help achieve zero net deforestation by 2020.