Record number of companies 'offsetting' palm kernel oil

By Chris BARKER

- Last updated on GMT

Record number of companies 'offsetting' palm kernel oil
Record numbers of palm kernel oil producers are offsetting their production by supporting sustainable growers, according to certification company Green Palm.

The firm records that the number of companies producing the oil and applying for certification has gone from 80,000 in 2010 to almost 500,000 this year. Palm kernel oil is the variety most often used in cosmetics and personal care products.

In addition, Green Palm sold record numbers of sustainable palm oil and palm kernel oil certificates in October and November of this year.

Bob Norman, general manager of Green Palm, commented to CosmeticsDesign-Asia.com: “It’s the supply chain complexity which is providing a barrier to the cosmetics industry producing sustainable oil directly.”

“As a result, many choose to support RSPO certified growers by becoming certified.”

The rise of offsetting

Apart from a sixfold yearly rise in palm kernel oil offsetting, the company records that 416,852 certificates, of which a record 125,781 were for PKO, were sold on GreenPalm’s trading system in October.

The company works by allowing palm oil manufacturers to register a percentage of their production as being sustainable. They are awarded certificates for every tonne of 'green' oil produced in this way, which are then sold to manufacturers and retailers, thus supporting the manufacture of sustainable palm oil.   

Norman commented: “A lot of brands have commitments which they really want to honour which are set for 2015, hence the increase in use of this oil.”

In a press release, he also said: “our figures to date illustrate the fact that manufacturers and retailers are taking palm sustainability seriously and are keen to support growers directly.”

Sustainable palm oil a rising trend in cosmetics

Sustainable palm oil is becoming increasingly common in cosmetic products, and has been adopted by major companies such as Johnson & Johnson, Unilver and Oriflame, GreenPalm executive Simon Christmas told CosmeticsDesign.com earlier this year.

In an interview with the publication, he commented: “the presence of palm oil and palm kernel oil is often less obvious in cosmetics than in many other products, because its fatty acids are often used to create other ingredients, such as cetyl alcohol, isopropyl myristate or PEG-20 palmitate.”

Kernel oil is especially popular for cosmetic and personal care products thanks to being cheaper than comparable ingredients like coconut oil and shea butter.  

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