More than 98% of BASF’s sourced palm kernel oil now RSPO-certified

In addition, almost 97% of the company’s care chemicals division’s total palm oil exposure of 390,591 tonnes was traceable to the oil mill level, BASF said.

“We source 81.7% of our traceable raw material from 10 provinces in Indonesia and Malaysia and have relationships with a total of 44 provinces in the two countries, corresponding to 92% of our traceable raw material supply,” said the third edition of the division’s Responsible Sourcing Report (RSR) report, published on 31 March.

In addition, the company said it had again achieved full traceability for certified sustainable palm kernel oil (CSPKO) sourced from 380 RSPO-certified oil mills.

Looking ahead at the outlook for the CSPKO market, BASF said current forecasts indicated the sector would remain tight until 2030.

“Sustained demand exceeds supply capacity and requires a comprehensive reassessment of sourcing strategies. In addition, the upcoming European Deforestation Regulation (EUDR) is expected to exacerbate existing supply constraints,” the report said. “The anticipated regulatory framework is likely to result in a shortage of materials suitable for supply to the European market.”

The RSR report provides an update on the care chemicals division’s progress in sustainable sourcing and production of renewable based materials in 2024.

Last year, BASF entered into a strategic partnership with the non-profit organisation Solidaridad and Fedepalma, the association representing the interests of more than 6,700 oil palm growers and mills in Colombia.

The aim of the collaboration was to increase the production of palm oil and palm kernel oil in Colombia through the adoption of the APSColombia protocol and the RSPO standard, which emphasised sustainable practices.

BASF said it continued to source Rainforest Alliance (RA) certified coconut oil and offered RA-certified ingredients to personal care customers. The company sources 69% of its coconut oil production from the Philippines and Indonesia, which supply 40% and 29% of the total respectively.

For castor oil, BASF said the focus in 2024 remained on the Pragati project, which aimed to improve farmers’ working conditions, create awareness about sustainable agriculture and increase yields through more efficient farming.

By 2024, approximately 100,000 tonnes of certified castor oil seeds had been produced as part of the programme, a significant increase over the previous year’s total of 74,500 tonnes, the company said.

Since the start of the programme, 8,000 farmers had been certified with more than 9,000ha farmed according to the Sustainable Castor Caring Environment & Social Standard (SuCCESS) code during the 2023/24 crop cycle.

In the 2023/2024 crop cycle, SuCCESS-certified farmers had achieved 57% higher yields than figures published by the local government for the region, BASF said.

Now in its third phase (2023-2026), the company said the programme had expanded its focus on supporting more women to participate in castor farming.

Tags: Roundtable on Sustainable Palm Oil, Colombia, Indonesia, BASF, Malaysia, yields, palm oil, palm kernel oil, RSPO