Promoting Sustainable Palm Oil for Green Supply Chain

Supporting Ecological Conservation

The 2020 China Sustainable Palm Oil Supply Chain Forum and the 4th RSPO China Forum, supported by HSBC China and some other companies and organisations, was successfully held in Suzhou to support ecological conservation and encourage purchase and consumption of sustainable palm oil among more Chinese companies and consumers.

Co-hosted by the Roundtable on Sustainable Palm Oil (RSPO), China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-products, and WWF Beijing Office, the forum featured constructive discussions on sustainable palm oil sourcing and its impact on the green supply chain. By promoting the use of sustainable palm oil among businesses, the forum aims to contribute to green transformation of the country's palm oil market so as to achieve the goal of protecting the ecological environment and making the earth greener.

“As the world's second largest importer of palm oil, China plays an important role in driving a global shift towards sustainable palm oil. HSBC is committed to popularizing the concept of sustainable palm oil adoption in China by maintaining communication and collaboration with NGOs, trade associations, businesses and consumers. We believe that with joint efforts of all sectors of society, purchasing and consuming sustainable palm oil will become a new normal in China." said Ying Wang, Head of Corporate Sustainability, HSBC Bank (China) Limited

Palm oil is now the second most consumed vegetable oil in the country after soybean oil. It is widely present in everyday products such as ice cream, chocolate, cookies, skin care products and hair shampoo. However, the growing demand for palm oil and its unsustainable production has led to excessive deforestation, endangering the ecosystem and the survival of wildlife.

According to the WWF, an average size of 460 soccer fields of forest and peatland were used every day globally to plant palm trees for palm oil in the decade between 2005 and 2015 alone. The destruction of tropical rainforests due to palm cultivation has resulted in the gradual loss of habitat for many species of wildlife.

In order to reduce environmental hazards, some organisations jointly launched the China Sustainable Palm Oil Alliance in 2018 with the objective of promoting growth and production of sustainable palm oil products in ways that do not harm the natural environment. As a founding member of the alliance, HSBC China is working with over 50 key players across the palm oil value chain to promote wider adoption of sustainable palm oil in the business community and contribute to the management and development of green supply chain in China. In addition to providing support to the Forum for three consecutive years, the bank has also partnered with NGOs to conduct a number of awareness campaigns to help Chinese consumers understand the benefits of using sustainable palm oil.