Palm Oil Sector Falls Behind on Deforestation Commitments Ahead of COP30
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A new report reveals the palm oil industry is significantly lagging in its pledges to halt deforestation, raising concerns as global leaders prepare to address sustainable agri-food systems at the COP30 UN Climate Change Conference in Brazil this November.
The findings, released by the Zoological Society of London (ZSL) through its annual SPOTT assessment, highlight a critical lack of transparency and stalled progress within the sector. Only half of palm oil companies are publicly monitoring deforestation, despite the ingredient being a major driver of forest loss worldwide.
Transparency Gaps Undermine Progress
The SPOTT assessment, which evaluated 100 leading palm oil producers, processors, and traders, paints a concerning picture. While commitments to end deforestation have increased over the past decade, implementation remains weak. According to the report, a mere 51% of assessed companies publicly share evidence of their deforestation monitoring efforts.
This lack of transparency is particularly troubling as the European Union’s Deforestation Regulation (EUDR) – a landmark law aimed at combating deforestation linked to products sold within the EU – comes into effect. Questions remain about how companies will adhere to the EUDR’s stricter rules, and many suppliers currently lack the demonstrable proof needed to assure buyers and investors that their operations are not contributing to forest destruction.
Slowing Momentum and Traceability Challenges
Progress toward zero-deforestation commitments has slowed in recent years. In 2017, 29 out of 50 companies assessed had pledged to end deforestation. Today, 54 out of 82 companies have made similar commitments, indicating a deceleration in momentum.
The ZSL is now urging palm oil businesses to accelerate their efforts, emphasizing significant “traceability gaps” within the industry. The assessment found that only 18% of companies can fully trace their supplies back to the plantation of origin, hindering their ability to effectively monitor and mitigate deforestation risks within their supply chains.
Palm Oil’s Complex Role in Deforestation and Sustainability
Agriculture is responsible for over 90% of global tropical deforestation, with palm oil identified as a significant contributor. The policies and practices of major palm oil companies, which control the majority of global volumes, are therefore crucial in setting the standard for the entire sector.
“Up to 40% of supermarket products contain palm oil, meaning this ingredient is part of our everyday lives, yet unsustainable practices put everyone at risk,” stated Imogen Fanning, a sustainable business advisor at ZSL who led the assessment. “By supporting sustainable palm oil production and instead protecting the world’s forests, investors and consumers alike are helping create a more secure future.”
Fanning further emphasized the interconnectedness of forest health and the palm oil industry, noting that “protecting our planet’s tropical forests is about securing a future that benefits people, businesses, and wildlife alike. Palm oil plantations need stable climates to grow, but the unsustainable loss of carbon-storing trees and peatlands accelerates climate change and drives more extreme weather — putting the entire industry at risk, eroding supply-chain resilience, undermining livelihoods, and threatening food security.”
Certification and Consumer Action
Companies can demonstrate their commitment to combating deforestation by participating in globally recognized certification programs, such as the Roundtable on Sustainable Palm Oil (RSPO). Consumers can also play a role by utilizing tools like the PalmOil Scan App to identify products containing RSPO Certified Sustainable Palm Oil.
“Our goal is to support suppliers and buyers to create a sustainable future for both their businesses and the planet,” Fanning added. “That future depends on resilient supply chains that protect the people and wildlife that underpin them — and that all begins with greater transparency around company practices, giving buyers and investors the insight they need to make responsible, informed decisions.”
Interestingly, a recent study by Wageningen University & Research in the Netherlands indicated that, despite its environmental concerns, palm oil outperforms soybean and rapeseed oils in terms of efficiency and overall sustainability metrics. This highlights the potential for palm oil to be part of a sustainable solution, provided significant improvements are made in deforestation monitoring and supply chain transparency.
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