Responsibly Sourced Palm Oil

We use palm oil as an ingredient in a number of Nestlé products. To address sustainability challenges in our palm oil supply chains, we start by understanding where the palm oil comes from and how it is produced. We buy from processing companies that source palm oil in Malaysia, Indonesia, Latin America and West Africa. And we work with expert organizations and the industry to continually improve environmental and social practices.

Our Progress Toward Sustainable Palm Oil Production

No Deforestation and Landscapes (Forest Positive Strategy)

In Malaysia, our dedicated efforts in sourcing palm oil sustainably enabled us to achieve the following milestones in 2023, which we continue to uphold:

• 100% of our palm oil and palm oil-based products are RSPO-certified
• 100% of the palm oil we source is from deforestation-free lands

As part of Nestlé’s global pledge to eliminate deforestation from our supply chains, we continuously monitor and address deforestation risks in collaboration with our suppliers. Since 2019, we have leveraged Starling, a global satellite monitoring tool co-developed with Airbus and Earthworm Foundation, to track forest loss. Our findings and actions are recorded in our Palm Oil Transparency Dashboard report.

Our Forest Positive strategy extends beyond our direct supply chain to address deforestation on a wider scale. As a co-funder of the Southern Central Forest Spine (SCFS) Landscape initiative, launched by Earthworm Foundation in 2021, we actively support a collaborative project that unites the government, businesses and civil society organisations. This includes a three-year partnership between Earthworm Foundation and the Malaysian Palm Oil Board, as well as a multi-stakeholder programme aimed at mitigating Human-Elephant Conflict (HEC) in Johor.

Forest and Peat Conservation and Restoration

Building on the successful completion of our Kinabatangan Rileaf Project in 2020, which achieved the planting of one million trees to aid reforestation and peatland conservation, we expanded our efforts with Project RELeaf. This initiative aims to plant three million trees in Malaysia by 2025. This is aimed at creating wildlife corridors to mitigate human-animal conflicts and restoring riparian zones and forest ecosystems.

While the early stages of Project RELeaf were impacted by the COVID-19 pandemic, we are now progressing steadily towards our goal. As of end-2024, we have successfully planted 2.17 million trees, bringing us closer to achieving our target by the end of 2025.

In addition to Project RELeaf, we actively support the Rimba Collective, a 30-year multi-stakeholder initiative that seeks to protect and restore 500,000 hectares of forest in key palm oil sourcing regions. This initiative not only safeguards critical ecosystems but also benefits 32,000 people living in forest-dependent communities across Southeast Asia.

The Rimba Collective operates under a financial model that links funding to procurement volumes, ensuring sufficient resources for the project’s long-term success. In line with Nestlé’s strategy, these funds are directed into a Special Purpose Vehicle, securing sustainable financing for continued environmental and social impact.

Smallholder Inclusion

Smallholder farmers are at the heart of the palm oil supply chain and empowering them with right knowledge and resources are crucial for long-term sustainability. We are committed to enhancing their livelihoods while helping them adopt responsible agricultural practices. Through the SCFS Landscape Initiative, we provide support to Earthworm Foundation in their efforts to assist smallholders in improving farm productivity, reducing operational costs, increasing income diversification and support for MSPO certification. This initiative benefitted 669 smallholders, equipping them with the necessary tools to make their farming operations more sustainable and profitable.

Additionally, we support Earthworm Foundation’s landscape project in Sabah, where efforts are being made to address the challenges smallholders face due to HEC caused by habitat loss. This includes conducting community awareness programs with smallholders, implementing patrols, collecting data, and supporting elephant relocation efforts. To further strengthen these initiatives, the HEC mitigation committee comprising members from the Sabah Wildlife Department, smallholders, plantations, and local NGOs works to establish wildlife corridors. In 2024, an HEC awareness and elephant patrolling training session was conducted with the Kinabatangan Wildlife Department, with participation from smallholders. Furthermore, an HEC patrolling standard operating procedure is being finalised for community volunteers in Sabah to enhance coordination and effectiveness.

Protecting Human Rights 

To support vulnerable communities within the palm oil supply chain, we introduced the 2021-2025 Labour Rights Action Plan for Palm Oil in April 2021. This plan provides a structured approach to working with suppliers, creating strategies that address human rights concerns identified in their risk assessments. Additionally, we collaborate with partners to implement effective solutions and closely track supplier progress.

In 2022, Nestlé launched the Palm Oil Human Rights Fund, managed by Winrock International. Through this initiative, we have collaborated with organisations such as Verité, Earthworm Foundation, and Embode to strengthen the due diligence processes of our palm oil suppliers. In 2023, we expanded our efforts to suppliers in Malaysia, Indonesia, and Nigeria, conducting comprehensive assessments at mills, refineries, and plantations to identify areas for improvement. These assessments led to the development of corrective action plans, complemented by training and capacity-building initiatives to help suppliers enhance their operations.