Sourcing 100 Percent Sustainable Palm Oil: A Status Report

Palm oil is a widely used ingredient in food manufacturing, including products that reach households across Australia. It can support efficient land use when produced responsibly, yet poor practices may contribute to deforestation, habitat loss, labour concerns and greenhouse gas emissions. For Fresh Del Monte Produce, responsible palm oil procurement is part of a wider approach to protecting ecosystems, supporting communities and strengthening ethical supply chains.

Our goal is to source 100 percent sustainable palm oil across relevant operations and products. This status report describes how that commitment is being implemented, what evidence is required before progress can be counted, and why certification, traceability and supplier engagement all matter. The goal remains an active, phased commitment rather than a claim of completion until every applicable volume can be verified against our standard.

Defining Sustainable Palm Oil

Sustainable palm oil means more than purchasing an ingredient carrying a sustainability label. It involves understanding where palm oil is produced, which companies handle it, how plantations are managed and whether workers and communities are treated fairly. Our sourcing approach considers recognised certification systems, supplier policies, traceability information, grievance processes and evidence of responsible land management.

The scope includes palm oil and palm-derived ingredients used in relevant products, packaging applications or manufacturing processes where Fresh Del Monte has purchasing influence. Depending on the formulation, these materials may include crude palm oil, refined palm oil, palm kernel oil and derivatives. Mapping these categories is essential because a product may contain a derivative that is not immediately visible in a simple ingredient review.

For Australian consumers, this work is relevant in supermarkets and food-service channels from Sydney and Melbourne to Brisbane and Perth. Palm-derived ingredients can occur in packaged snacks, bakery items, confectionery, sauces and other everyday goods. Clear supplier records help connect a product purchased in an Australian market with the agricultural and processing practices behind it.

Measuring Progress With Evidence

Our status is assessed through a chain of evidence rather than a single annual percentage. Procurement records establish the volume purchased, supplier declarations identify the source and certification documents provide an additional level of assurance. These records must be matched carefully so that certified, segregated or otherwise verified material is not counted more than once.

Traceability is a central measure. A stronger result shows a clear path from the mill to the plantation or smallholder group, supported by current documentation and credible checks. Where full traceability is still developing, suppliers are expected to provide a time-bound plan, disclose known risks and demonstrate movement towards stronger verification. This makes progress visible without presenting partial coverage as full achievement.

Verification also considers the performance of suppliers and refiners. Reviews may examine deforestation and conversion risks, labour standards, legal compliance, grievance handling and the protection of high-conservation-value areas. Independent assurance, supplier audits and recognised certification can each contribute to the assessment, while none should replace careful evaluation of the full supply chain.

Our broader environmental work supports this process. Investment in landscape protection and emergency readiness reflects the principle that responsible sourcing must sit alongside active stewardship; this includes fire response investment in regions exposed to wildfire. That perspective is particularly meaningful in Australia, where fire seasons affect communities, freight routes and agricultural planning across New South Wales and Victoria.

Moving From Policy to Procurement

A public policy sets direction, but purchasing decisions determine whether the commitment has practical effect. Fresh Del Monte’s implementation therefore links sustainability expectations to supplier onboarding, contract discussions, ingredient specifications and periodic performance reviews. Suppliers are expected to understand the requirements before volumes are counted towards the goal.

Where a supplier cannot immediately provide fully verified material, engagement focuses on a documented improvement pathway. This may involve joining a recognised certification programme, improving mill and plantation mapping, strengthening labour safeguards or addressing specific environmental findings. Continued business relationships depend on credible progress and responsible conduct, rather than on assurances that cannot be supported by records.

Quality and sustainability controls also meet in the manufacturing environment. Ingredient identity, batch records and packaging information need to remain accurate as materials move through production. Systems used to inspect and reject packaging or product defects, such as those discussed in blister-line inspections, illustrate the importance of controlled processes, although palm oil verification requires additional supply-chain evidence beyond factory-line checks.

For Australian operations and customers, dependable controls help maintain consistency across imported and locally distributed goods. They also support responsible communication in a market where shoppers increasingly look for understandable information about sourcing, environmental impacts and ethical production rather than broad claims with no supporting detail.

Partnering With Producers and Communities

The people who grow and process palm oil are central to the outcome. Smallholders may face limited access to finance, training, formal land documentation, agronomic advice and reliable markets. A sourcing programme that demands compliance without addressing these conditions can exclude smaller producers without solving underlying risks.

Our approach includes supplier engagement and support for initiatives that improve producer resilience and income. Fair purchasing practices, training, access to better farm management and practical assistance with certification can help smallholders participate in responsible supply chains. Details on this model are reflected in our work supporting smallholder farmers through fair trade premiums.

Community considerations also include land rights, worker welfare, safe working conditions and access to grievance channels. Effective systems should allow concerns to be raised without retaliation and should provide a route for investigation and remedy. These expectations apply across international supply chains, while local context determines how communities, workers and producers experience each risk.

Evidence used to assess supplier performance

• Current certification and chain-of-custody records
• Mill, refinery and plantation traceability data
• Environmental and labour risk assessments
• Corrective-action plans with defined milestones

Signals of a stronger sourcing pathway

• More verified volumes in the purchasing system
• Better visibility beyond the first-tier supplier
• Documented responses to grievances and findings
• Practical support for smallholder participation

Australia’s market adds its own considerations. Consumers often compare sustainability claims while shopping at major retailers in Melbourne or Sydney, and local councils apply different rules for kerbside recycling and packaging disposal. Responsible palm oil sourcing cannot resolve every issue associated with food production, but accurate information helps customers distinguish a defined commitment from an unsubstantiated environmental message.

Reporting Progress Transparently

The most credible status report explains both achievement and remaining work. We will continue to assess the proportion of relevant palm oil and palm-derived ingredients covered by recognised sustainable sourcing mechanisms, alongside the quality of traceability and supplier verification. Reporting should make clear which volumes are fully verified, which are covered through controlled or supported mechanisms, and which still require further action.

This approach recognises that supply chains change. Suppliers may merge, processing routes may shift, certification status may expire and new risks may emerge through land-use change or labour conditions. Regular review is therefore necessary, especially when products are reformulated or new markets are added. A single past certificate cannot demonstrate current performance indefinitely.

Progress also depends on collaboration with producers, processors, certification bodies, customers and civil society organisations. Fresh Del Monte will use supplier dialogue and review findings to strengthen implementation, while maintaining a clear distinction between commitments, activities and verified results. The objective is a sourcing system that can withstand scrutiny from customers in Australia and stakeholders across the regions where palm oil is produced.

The next reporting cycle will update the covered volume, certification status, traceability level and outstanding supplier actions for each relevant palm-oil category, with the procurement team beginning that review against current purchase records.