Action for Sustainable Derivatives Overview
The production and distribution of palm oil derivatives present significant environmental and social challenges. Corporate users of palm oil derivatives are therefore seeking solutions to accelerate compliance of their supply chain with deforestation-free and responsible sourcing principles. However, individual supply chain dynamics and overlapping comparable approaches currently lead to significant duplication of efforts.
Action for Sustainable Derivatives (ASD) is a collaborative initiative co-managed and co-facilitated by BSR and Transitions, two organizations with extensive experience and expertise in supply chain sustainability and business collaborations. It brings together companies in the cosmetics, home and personal care, and oleochemicals industries to collectively tackle supply chain issues around palm oil. ASD will facilitate the sharing of information, data, constraints, and solutions to achieve a wholescale transformation of the complex palm derivatives sector.
ASD participants aim to scale up efforts towards compliance with No Deforestation, No Peat, No Exploitation (NDPE) principles and to positively transform the palm oil industry. By harmonizing requirements, standardizing tools and methodologies, and mutualizing efforts, ASD intends to increase the transparency of the global derivatives supply chain, collectively monitor risks and activities along the supply chain, and implement collective action projects to address social and environmental issues on the ground.
- Create a global, transparent mapping of the palm derivatives supply chain
- Maximize the potential for success in reaching the 2020 NDPE target by sharing solutions
- Harmonize approaches on transparency, risk monitoring, and evaluation
- Explore opportunities for multilateral collaboration and collective action, including on pilots of tools, methodologies, and sustainable field projects
- Unite as a sector to increase external recognition of the singular complexity of the palm derivatives supply chain and to leverage influence over major upstream supply chain players
Value for front-runners in the sector:
- Accelerate transformation of the sector by leveraging existing individual strategies and action plans through the harmonization of pre-competitive approaches
- Highlight leadership position by promoting own tools and methodologies to become the norm in the sector
- Explore concrete opportunities with peers and suppliers to develop collective actions to address supply chain issues
Value for other downstream players:
- Increase leverage over major suppliers with support from peers in the sector
- Leverage existing, tried-and-tested methodologies and tools
- Provide input on the development of subsequent tools and projects
Value for direct and indirect suppliers:
- Avoid time-consuming duplication of evaluation processes or inquiries from clients
- Aggregate information and provide data only once to a dedicated and trusted independent party