Throughout the course of the first membership year, Clorox and TFT worked together, with Clorox suppliers, to achieve traceability to the key milestones of first importer and origin refiner. In its June 2017 progress update, Clorox reported 73% traceability to first importer for its derivatives supply and 66% traceability to origin refiner. These achievements represent significant progress toward Clorox’s September 2017 goal for traceability to first importer and its December 2017 goal for traceability to origin refiner and mill.
Clorox also sources a small amount of ingredients containing palm kernel oil. For this portion of its supply, Clorox has achieved 76% traceability to the mill level.
With this amount of traceability, Clorox can begin to take stock of the commitments and practices of companies in its supply chain and contribute to transformation initiatives on the ground. Clorox has already begun to assess the commitments of its direct suppliers. In those cases where a supplier does not have a commitment, Clorox will work with that supplier to identify and address barriers to developing and implementing a responsible sourcing commitment and practice aligned with Clorox’s.
Going forward, TFT will continue to support Clorox in its traceability work to achieve its September and December traceability goals and to extend its company values throughout its supply chain, starting with commitment engagement with its direct suppliers. Other next steps will include Clorox supporting TFT transformation initiatives in Indonesia
How we work with Clorox on Palm Oil
For the first year of Clorox membership, TFT and Clorox focused on mapping Clorox’s palm derivatives supply to the first importer, and further upstream where possible.
“First importer” is TFT’s term for a company that purchases palm-based products from within countries of palm production (e.g. Indonesia or Malaysia), and imports the products into countries downstream in the supply chain for use by manufacturers or brands. These first importers are usually traders and/or refiners, and there are only a relative handful of companies that play this role. As such, they represent an important leverage point in the supply chain, and can provide downstream customers a significant amount of information about the source of the palm product supply.
Given the complexity of the derivatives supply chain, the first importer is an important milestone on the way to mapping to the mill or plantation level. With visibility into the first importers in its supply chain, Clorox is able to better understand not only the sources of its palm derivatives but also the commitments and practices of key players who can influence how the palm is produced.
TFT will help Clorox understand these companies’ palm sourcing commitments and whether or not they are robust enough to provide Clorox assurance that their supply is actively moving toward more responsible practices. TFT will also help Clorox identify opportunities for it to contribute directly to transformation activities in its supply chain that can have a positive impact within the industry.