(ROSP, 25.Nov.2024) — The very first shipment of RSPO Certified Sustainable Palm Oil (CSPO) arrived at the Shanghai port today. This pioneering effort was spearheaded by Inner Mongolia Yili Industrial Group, Asia’s leading dairy brand and one of the top five globally, in partnership with Yihai Kerry Arawana Holdings Co., Ltd, the largest palm oil trader in China under the RSPO group membership of Wilmar.
A total of 750 tonnes of Certified Sustainable Palm Oil, certified under the Identity Preserved (IP) supply chain model, marks the initial batch of Yili’s palm oil procurement for 2024-2025. The IP model ensures that certified palm oil is kept separate from conventional supplies throughout the supply chain, guaranteeing its traceability and sustainability. This delivery is particularly notable as it follows the Aug. 2024 certification of Shanghai Kerry Food Industries (under Wilmar), making it the first site in China to obtain RSPO-IP certification.
Palm oil is a crucial ingredient in Yili’s ice cream production, with the company having consumed 35,000 tonnes in 2023, of which 360 tonnes (1.03%) were RSPO-certified under the Mass Balance (MB) model. This latest development signifies Yili’s drive to expand its use of RSPO-IP certified palm oil and underscores the group’s commitment to a deforestation-free supply chain by 2030.
Yili’s 2023 Sustainability Report outlines its goal to increase RSPO-IP Certified palm oil by 50 tonnes annually, with a target of purchasing 650 tonnes by 2030. Yili has also committed to eliminating deforestation in its palm oil, soy, and pulp and paper supply chains by 2030.
Driving China’s Uptake of Certified Sustainable Palm Oil
The arrival of this shipment signals a positive step forward for China in increasing its uptake of RSPO Certified palm oil. The growing commitment among Chinese companies to sustainability is clear, and this development is expected to accelerate demand for sustainable palm oil in the Chinese market.
China is the world’s second-largest palm oil importer. Currently, RSPO has over 440 members in China, reflecting a steady increase in engagement across the industry. The commitments to sourcing CSPO products into China also featured prominently at the recently concluded RT2024. Yili Group signed an additional sustainable sourcing agreement with Yihai Kerry, demonstrating its ambition to build a global green value chain for palm oil and enhanced partnership.
This historic shipment demonstrates the collective efforts of industry leaders to align with China’s evolving sustainability priorities, marking the beginning of a new chapter for sustainable palm oil in the country.
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