To drive improved transparency within the palm oil industry as a whole, we have collaborated with our partners from CORE (Daemeter & Proforest) and developed a Traceability to Plantations (TTP) approach specifically for palm oil based waste and residue raw materials, such as PFAD. Our aim has been to develop a common approach to tracing palm oil-based waste and residues and to develop a common definition and shared understanding of the concept for all the actors in the industry.
Our Risk-calibrated Approach (RCA) towards TTP prioritizes gathering more data from suppliers sourcing raw material in higher risk areas, such as those in close proximity to forests, uncultivated peat, and protected areas.
Since 2018, we have engaged more than 20 palm oil suppliers to introduce the approach with an intention to start implementing it together. The progress we have made in developing traceability for our PFAD supply chain all the way to palm oil plantations is largely based on this work. Today, as of end 2019, we have successfully mapped 99.5% and 71% of the PFAD that we buy back to mills and plantations respectively.
Building industry-wide acceptance for the approach has potential to significantly improve the overall transparency of palm oil supply chains, particularly those that are primarily serving industries and do not have legal traceability requirements similar to those in the biofuels sector. A commonly shared approach is key to enabling and speeding up coherent efforts towards improved traceability within the palm oil sector as a whole.
See our PFAD traceability dashboard for more on the progress we have made.