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Feature in Inc. Magazine

Palm Oil and Environmental Responsibility

How companies can balance palm oil’s everyday benefits with ecologic issues.

By: Fred Elabed

April 14, 2025

Reading Time: 5 mins

Palm oil is one of the world’s most widely used vegetable oils and found in nearly 50 percent of all packaged products, according to the World Wildlife Fund. It plays a vital role in foods, baked goods, and personal care items, and is even a key component in biofuels and various industrial applications. Its versatility, affordability, and high yield have solidified its place as a staple of modern life, driving significant global demand and emphasizing the urgent need for sustainable production practices to mitigate its environmental impact.

How to drive sustainability in the palm oil industry
Companies and organizations are working together to address the environmental effects of palm oil production through sustainable practices, conservation efforts, and industry-wide commitments. The Roundtable on Sustainable Palm Oil (RSPO) is a global nonprofit organization promoting the production and use of sustainable palm oil. The RSPO brings together stakeholders across the palm oil supply chain, including producers, processors, manufacturers, retailers, and financial institutions. RSPO sets rigorous standards for sustainable palm oil production, covering environmental protection, labor rights, and ethical business practices. For a product to be considered Certified Sustainable Palm Oil, producers must adhere to these standards, assuring consumers and businesses of the product’s sustainability.

With more than 3 million smallholders and small-scale farmers making a living from palm oil, the RSPO provides training and offers resources to help them meet certification standards. Through its RSPO Smallholder Support Fund (RSSF), the RSPO provides financial assistance to help family farms cover the costs of certification, which can be a significant barrier for those with limited resources. Certification enables smallholders to access premium markets and earn better prices for sustainably produced palm oil.

RSPO’s mission has led to significant positive impacts, including protecting workers’ rights, reducing greenhouse gas emissions, better waste management, and improved compliance with regulatory requirements, striking a balance between meeting global demand for palm oil and preserving vital ecosystems for future generations.

What can we do to help?
Business owners and manufacturers can take several steps towards responsibly sourcing palm oil and reducing environmental and social impact. The first and most crucial step is committing to producing products with Certified Sustainable Palm Oil by sourcing from RSPO-certified suppliers. These certifications will ensure that the palm oil is traceable to sustainable plantations. Another way to help is by engaging with transparent and ethical suppliers that adhere to no deforestation, no peat, no exploitation (NDPE) policies. Supporting suppliers that work with smallholder farmers using fair trade practices can also make a huge impact. When possible, consider reformulating products to use less palm oil or explore sustainable alternatives like certified organic palm oil or palm oil from agroforestry systems. Finally, advocating for industry-wide changes can make a huge impact. Join coalitions like RSPO, Palm Oil Transparency Coalition, or Consumer Goods Forum and work with nonprofit organizations to improve sustainability standards globally. Palm oil is undeniably one of the most essential and versatile ingredients found in countless products we rely on daily. Its efficiency and affordability make it a necessary resource for global industries. However, its environmental impact cannot be ignored. Addressing deforestation, habitat destruction, and carbon emissions associated with its production is crucial to ensuring a sustainable future. By making conscious choices and advocating for sustainable practices, companies and individuals can significantly reduce the environmental effects of palm oil production.

Lab Alley is now RSPO Certified, joining a global partnership dedicated to responsible palm oil sourcing. This certification reflects our commitment to sustainability, protecting biodiversity, and ensuring ethical labor practices. For more information about Lab Alley and its products, please visit LabAlley.com.

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Fred Elabed

Fred Elabed

Co-founder & CEO
Holly Elabed

Holly Elabed

Co-founder & CVO
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