Analysis of the impact of RSPO certification on transparency in palm oil supply chain.

In this work, we are going to discuss about the famous palm oil. We can hear lots of negative aspects of its production. We speak a lot of deforestation. Deforestation means climate warming due to greenhouse gas emissions, but it leads also to the loss of habitat for biodiversity. Indeed, several species are nowadays endangered because of that sector. Among them there are orangutans, elephants, chimpanzees, tigers but they are not the only ones. Human abuses were also discovered in these activities, such as bad work conditions, low wages, child labour… We chose to work on this subject in order to better understand these issues and really comprehend what the stakes of this industry are. Moreover, we wanted to know better about palm oil certification and in particular, RSPO certification. Indeed, this certification seems to represent some hope for all the externalities put forwards. In order to do so, we will answer the question: Does the RSPO certification have an impact on transparency in palm oil supply chain? The transparency showed by companies does not reflect their actions on the ground. Indeed, Ferrero surprised as it is the less transparent companies but, on the opposite, it became the leader towards sustainable palm oil according to WWF. Unilever and Mondelez are the only companies that do not source 100% certified oil. For these companies, this would be the first step towards sustainability. More generally, we recommend the companies to stay or become transparent about this significant topic. Moreover, it is important to stay focus on its risks management and suppliers monitoring. Palm oil also have positive aspects such as its yield which could allow to clear less forests than other crops. It is also a mean to avoid consuming trans-fat which might be damaging for the body. These are the two most significant examples but there are others. The real issue with this oil is that it is bad managed. With a good strategy and the implication of the whole sector, it could even be a way to go towards sustainability.