How we work with Danone on Palm Oil
We are partnering with Danone to help them implement their palm oil policy. We are particularly involved with the Nature Division (sustainability) within Danone as well as Early Life Nutrition Division (ELN).
The work has been divided into two phases; A first phase of transparency and a second phase of transformation.
In cooperation with ELN and their suppliers, we completed phase one of the project which consisted of producing a detailed map of all supply sources back to mill. The initial schedule for completing this task was end 2015 so we have succeeded in reaching it a year ahead of schedule.
We desk-assessed the palm oil sources on environmental and social criteria that make up Danone’s definition of responsibly produced palm oil. Priority supply chains have been designated following the desk assessment.
Three level of priority have been defined:
- High Priority: where doubts exist about millers that potentially have not followed Danone’s policy principles in their operations;
- Low Priority: where millers were estimated by TFT as representing a low occurrence of not being aligned with Danone’s policy for their operations;
- Indirect Risks: when suppliers could be at risk due to millers that are not linked to Danone supply chain but could have practices not consistent with Danone’s policy.
From there, we engaged the phase two work – transformation – by engaging in discussion with players of the priority supply chains, to make a move towards better practices. Danone wants to support growers that are genuinely committed to better practices; if there is no progress, they will look for different sources able to meet the requirements.
At the end of this transformation phase, all palm oil used by Danone will be totally free of deforestation impacts and offer a robust traceability system attesting to this.
Danone is committed to publish annually their progress towards their policy. We will continue to help them to report on their results.
In 2016, we will continue working actively with Danone teams on the two phases: transparency and transformation.
- Danone aims at maintaining the mapping and updating it yearly. We are collecting mill data once a year and updating the desk assessment.
- If Danone is looking to engage with new suppliers, they are automatically engaged on mapping and assessment of their palm oil sources, prior to any commercial relationship.
- In 2016, we will start the work of mapping the palm oil sources from mills to plantations.
→ Maintain 100% traceability back to mill.
→ 80% traceable back to plantation (except from new suppliers if any).
- TFT will translate the Danone policy into a concrete procedure for a supplier to follow in order to progress towards Danone criteria.
- Following the desk assessment, and where the supplier stands versus the procedure, a specific agenda will be written for each supplier and presented to them. A regular follow up on progress will be put in place (via physical meetings or conference calls).
- The focus in 2016 is to particularly engage with supply chains designated as high priority i.e. where some doubts were present about millers potentially not following in their operations the Danone’s requirements.
→ No more high priority supply chains (except from new suppliers if any).
- Plantation data will be collected as part of transparency with the aim of using it in order for Danone to be able to monitor deforestation using satellite tools.
- In 2016, TFT will work to propose to Danone a tool which will be able to monitor No Deforestation.
→ Procedure for no deforestation monitoring defined.
After completion of those targets, we will define a new timeline for reaching Danone’s goal of eliminating all deforestation impacts.
We will also support Danone in communicating its palm oil results annually.