In the announcement, PepsiCo said that it will not buy any palm oil sourced from land that was cleared since the end of 2015, in a bid to protect forest habitats and the wildlife that lives within them like tigers and orangutans.
Today, palm oil is the most widely used edible oil in the world and is a common ingredient in many PepsiCo food products.
In 2017, the American multinational said it purchased around 450,000 metric tonnes (MT) of palm oil globally, of which 5,000 MT was comprised of palm kernel oil.
However, because of palm oil's complex supply chain, only a small percentage of the palm oil used to make these products can verifiably come from an approved sustainable resource.
As such, many stakeholders, like PepsiCo, have made significant efforts to improve sustainable palm oil production.
The announcement builds on PepsiCo’s 2017 Palm Oil Progress Report, in which the company said that 50% of its palm oil supply is on track to be certified sustainable by the Roundtable on Sustainable Palm Oil (RSPO) by the end of 2018.
The global food and beverage company also said that traceability to mill in PepsiCo’s’ supply chain increased to 94% at the end of 2017.
In its newly released report, Global Policy on Sustainable Palm Oil, PepsiCo reiterated its aim to make its supply chain free of deforestation, peat development and exploitation (NDPE) by the end of 2020.
“Our latest Progress Report and expanded policy reinforce our commitment to transparency regarding palm oil as we make progress towards our 2020 goals,” Rob Meyers, Sustainability Director at PepsiCo said.
“They reinforce PepsiCo’s multi-year commitment to playing our part, alongside our peers, partners and producers, in the long-term transformation of the palm oil industry.”