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Nestlé reviews palm oil supply chain

Following a detailed review of Nestlé's palm oil supply chain, the company announced on Tuesday 27 October 2009, its commitment to using only Certified Sustainable Palm Oil (CSPO) by 2015, when sufficient quantities are expected to be available. Under its policy on environmental sustainability, it has pledged to give preference to suppliers who strive to improve the efficiency and sustainability of their operations and use of resources.

Over the last few years, it has been closely associated with the Roundtable on Sustainable Palm Oil (RSPO), an international non-profit association founded in 2004 to promote the growth and use of sustainable palm oil. It has now applied for full corporate membership of the RSPO, strengthening its efforts to find an effective multi-stakeholder solution to combat the environmental threat caused by the planting of palm oil plantations in South East Asia.

Indonesia and Malaysia produce almost 90% of global supply of palm oil, and in total, global production is about 42 million metric tonnes. The company uses 0.7% of the global supply (320,000 metric tonnes).

Palm oil, which is used in producing household items such as soap and detergent, and even for animal feeding and energy generation, is also used as a material for biofuels. The company has repeatedly spoken out against the production of such fuels from materials used for food.

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