Sustainable palm oil
BASF is dedicated to transforming the market for certified sustainable oil palm products. We have been an active supporter of the Roundtable on Sustainable Palm Oil (RSPO) since 2004 and promote the physical transformation of the industry. Palm oil, palm kernel oil and their respective derivatives are valuable raw materials for home and personal care ingredients.
Year-to-date progress
Since 2011, BASF has been pursuing the goal of sourcing palm oil and palm kernel oil from certified sustainable sources. Since that time, BASF has deliberately sourced more certified palm and palm kernel oil than the market demanded. This long-term commitment served the goal of actively supporting the transformation to more sustainable supply chains. However, this practice could not be continued in the last years. The continuing tense economic and geopolitical conditions affecting the chemical industry worldwide, and in Europe in particular, as well as the limited availability of RSPO-certified palm kernel oil, meant that we were unable to fully achieve our self-imposed target of 100% certified purchasing. In 2025, the proportion of certified volumes was 79.2% (2024: 98.1%). At the same time, we were able to trace 97.7% of our palm-based raw material volume back to the oil mill (2024: 96.7%) – a significant contribution to greater transparency and risk management in the supply chain.
We have adjusted our goal of sourcing only fully certified key derivatives of palm oil and palm kernel oil from 2025 onwards due to limited market availability and are now aiming for full certification of these intermediate products by 2030. RSPO remains our preferred certification standard. Alternatives will only be considered if they meet comparable requirements for environmental and forest protection as well as labor and human rights. Achieving our goals continues to depend on the availability of certified raw materials and their economic feasibility. Regardless of this, BASF remains committed to further increasing the proportion of certified raw materials and to continuously developing sustainability standards in the supply chain together with partners.
Our Challenge
Palm oil and palm kernel oil are very versatile vegetable oils, and oil palm trees produce higher yields per hectare than any other oilseed. These facts, combined with relatively low production costs, explain why these vegetable oils are so popular.
However, the palm oil supply chain is complex, with challenges related to the environment, human rights, economics in developing countries and international trade.
Over the past years, our focus has been on certified sustainable palm kernel oil. We have used our certified supply chains to improve traceability.
Unlike certified palm oil, the availability of certified sustainable palm kernel oil is still limited.
That is why we at BASF support market transformation through certification. For us, certification is the key to sustainable palm cultivation. The RSPO certification process is currently the world’s most transparent and effective initiative to improve the entire palm oil sector. It provides the necessary infrastructure to monitor the market transformation in a transparent way. However, holistic progress requires the collaboration of all partners in the value chain.
Our Palm Commitment
We are passionate about ensuring that our products are made from sustainably sourced raw materials. We have made progress on our journey to sustainable oil palm products: We actively support the use of palm and palm kernel oil from sources certified by the Roundtable on Sustainable Palm Oil (RSPO). In 2015, we renewed and expanded the BASF Palm Commitment. With the BASF Palm Sourcing Policy, we have published a purchasing guideline for palm oil products that includes forest conservation requirement regarding the high carbon stock and peatland (as defined by the High Carbon Stock Approach). Additionally we have incorporated requirements for a “Free, Prior Inforemd Consent” (FPI) as well as labour and human rights into our Palm Sourcing Policy.We drive the traceability of our oils back to the mill level and support smallholder farmers.
Due to the insufficient availability of RSPO-certified palm kernel oil, it is foreseeable that we will not be able to achieve our previous target for 2025. We are therefore adjusting our target of sourcing the main palm oil and palm kernel oil derivatives as 100% RSPO-certified products from 2025 to 2030.
According to our plans we intend to
- since 2020 – source 100% certified sustainable palm and palm kernel oil
- by 2030– expand these commitment to the significant intermediates based on palm oil and palm kernel oil. These include fractions as well as primary oleochemical derivatives plus vegetable oil esters.
RSPO remains a preferred certification standard. In cases, where alternatives are considered, they must demonstrate equivalent rigor focus on environmental protection, labor rights, and human rights.
The Palm Commitment will remain subject to availability and economic feasibility.
Check out our progress at rspo.org
Smallholder engagement as an integral part of sustainable palm oil production: Smallholder project partnerships allow BASF to support these farmers while increasing the availability of sustainably produced palm oil, e.g. by providing ongoing training and technical support to implement and maintain sustainable palm oil practices, and to promote a sustainable palm oil supply chain that is deforestation-free and competitive in the global market, while increasing the social and economic benefits for farmers.
