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Sustainable Palm Oil

Palm oil is a raw material found in many food and non-food products. However, the rising demand for palm oil can lead to deforestation in order to make way for palm oil plantations.

This destruction of large rainforests impacts the environment, wildlife and local communities. That being said, when palm oil is produced in the right way, to high sustainability standards, it provides an efficient, versatile, and low-cost ingredient. At ALDI, we know that illegal and poorly managed palm oil production contributes to deforestation and climate change, which is why in our own-label products we use 100% certified sustainable palm oil and palm kernal oil. Find out more below.

100% certified sustainable palm oil

tractor driving through sustainable palm oil farm

100% of our own-label products containing palm oil adheres to strict standards of responsible production. We will continuously strive to increase the share of palm-based derivatives and fractions (D&F) from certified sustainable sources. Additionally, we will endeavour to use only physically certified D&F in our non-food products by 2025. Any D&F without market availability will be covered by RSPO Credits.

Since the end of 2018, 100% of ALDI private-label palm oil and palm kernel oil used in food and non-food products, is certified from sustainable sources in accordance with the guidelines laid out by the Roundtable on Sustainable Palm Oil (RSPO). This means that by respecting the RSPO criteria, we can help to reduce the negative impacts of palm oil cultivation on the environment and communities; and by promoting the growth and use of sustainable palm oil products through credible standards and engagement of stakeholders.

ALDI is a member of the Roundtable on Sustainable Palm Oil (RSPO)

ALDI South Group is an active member of the RSPO, so that we can support efforts to protect the rainforest and maintain biodiversity. The RSPO also aim to improve social conditions for people working around the world on sustainable palm oil plantations. Our suppliers, using palm oil, are required to be RSPO members and their final production facility must be RSPO certified. This ensures a full chain of custody certification and assurance. We were the first retailer in Australia to require all of our suppliers to have their supply chains checked and certified against RSPO standards.

Transparency in our labelling

When it comes to products that contain sustainable palm oil, we provide our customers with transparency. Any ALDI private-label product containing sustainable palm oil through certified supply chains, will include either of the statements below on the packaging:

  • Contributes to the Production of Sustainable Palm Oil
  • Contains Sustainable Palm Oil

Whether the product contains palm oil, palm kernel oil or a D&F that contains the word ‘palm’, one of the above statements will be easily visible.

We are working with industry bodies

ALDI South Group works with industry bodies to support the production of sustainable palm oil. ALDI South Group is a member of the following:

  • The Roundtable on Sustainable Palm Oil (RSPO)
  • The Retailer’s Palm Oil Group (RPOG)
  • (and part of) the Palm Oil Transparency Coalition (POTC)

Frequently Asked Questions

The below infographic demonstrates the palm oil supply chain process.

Image courtesy of RSPO.

Palm oil is a vegetable oil derived from the fruit of the oil palms. It can come in two forms: crude palm oil is produced by squeezing the fleshy fruit and palm kernel oil can be made by crushing the kernel, or stone inside the fruit.

Palm derivatives and fractions (D&Fs) are fractionated, refined and blended palm (kernel) oil that undergoes processing to produce different oils with unique physical and chemical properties.

Palm oil is used in food production, beauty products, cleaning products and as a biofuel. It can also be used in animal feed and toiletries, such as toothpaste and shampoo.

Oil palm trees are native to Africa but are now grown in 42 other countries that produce palm oil. Over 85% of the global supply of palm oil comes from Indonesia and Malaysia.

In a nutshell, palm oil can be considered sustainable if it is manufactured without deforestation, peat development or exploitation of workers. Palm oil that is in accordance with the guidelines laid out by industry bodies such as the Roundtable on Sustainable Palm Oil (RSPO), is certifiably sustainable.

Palm oil is in many of the products found in your local supermarket such as pizza, doughnuts, instant noodles, margarine and chocolate. Reading product labels can help you understand if palm oil has been used and whether or not it has been responsibly sourced.