Many ingredients that are essential to produce cosmetic products, such as emulsifiers and surfactants, are extracted from mineral or vegetable oils, including palm (kernel) oil. As a global skin care company, we do not purchase palm (kernel) oil directly but use derivatives (further processed substances based on palm (kernel) oil). Oil palms can provide comparatively high oil yields per hectare compared to several other vegetable oil crops.
We work with suppliers and industry initiatives on activities related to the sourcing, traceability, and processing of palm-based raw materials. At Beiersdorf, we support sourcing approaches and industry initiatives that aim to reduce deforestation risks and promote more sustainable palm (kernel) oil production. Our annual requirement is around 41,000 tonnes, equivalent to 0.05% of the annual global production of palm (kernel) oil (source: United States Department of Agriculture 2025).
Our Palm Sustainability Roadmap guides our activities related to palm (kernel) oil based raw material sourcing, supply chain transparency, and our landscape project in Malaysia, one of our key sourcing countries. Through these activities, we work to increase transparency in our supply chain and support initiatives intended to strengthen responsible agricultural practices and local livelihoods.
In recent years we made progress in switching to RSPO-certified palm-based materials. As early as 2011 we began to base our palm (kernel) oil procurement practices on the RSPO Supply Chain Certification Standard (SCCS) established by the Roundtable on Sustainable Palm Oil (RSPO).
Since the end of 2020, 100% of the volumes of palm (kernel) oil and derivatives used for the production of our products have been covered by RSPO-certified sourcing through the Mass Balance supply chain model. Under the Mass Balance model, certified and non-certified materials may be physically mixed during processing and transport, while equivalent certified volumes are tracked and verified through the supply chain. Compliance with applicable RSPO supply chain requirements is independently audited and verified.
Only a good understanding of our supply chain helps us implement our sustainability criteria and respond to emerging challenges. Transparency is an important element of this approach. We work with our suppliers on activities related to the traceability of palm (kernel) oil-based raw materials. As part of the “Action for Sustainable Derivatives“ (ASD) initiative, each year we assess the traceability information for relevant t palm (kernel) oil-based raw materials at refineries, mills and plantations. The aim is to increase transparency in palm supply chains, identify areas requiring further attention, and support selected projects in key sourcing regions. Our largest raw material suppliers (Tier 1) are integrated into the project, meaning we already know the origin of 99.6% of our purchasing volume for palm based raw materials. The majority of our palm based raw materials originate from Indonesia (66%), including Sumatra and Borneo, and Malaysia (30%). Other sourcing regions include, among others, Colombia and Thailand (4%).
In cooperation with the World Wide Fund for Nature (WWF) we are supporting a palm project in Malaysia. The project focuses on environmental measures and activities intended to support improvements in the working and living conditions of participating farmers with small and medium-sized oil palm plantations.
Together with WWF we are promoting sustainable development through a landscape project in the Malaysian region of Tabin, in Sabah on the island of Borneo. The aim of the program is to promote sustainable palm oil production and contribute to reducing deforestation risks.
To achieve this, by 2030 smallholder and mid-sized palm oil farmers with a total area of 15,000 hectares are targeted to be certified according to the internationally recognized RSPO standard.
Additionally, we are working with WWF to protect wildlife habitats in Tabin as this region is home to many endangered species. The aim is to stabilize the populations of endangered species such as the rare Borneo elephant and the orangutan over the next years.
Beiersdorf is closely involved in both the RSPO and the Forum for Sustainable Palm Oil(FONAP) in order to promote an end-to-end sustainable palm (kernel) oil economy.
The RSPO Principles define a responsible minimum industry standard, while FONAP promotes environmental and community-related considerations through additional certification criteria.
