Sustaining Rainforests Through Smarter Choices: Sustainable Palm Oil, India, and Consumers

Rainforests are often referred to as the lungs of the planet, absorbing carbon dioxide, releasing oxygen, regulating climate, and supporting some of the most diverse ecosystems on earth. They are home to about half of all the living animal and plant species on the planet and they play a critical role in maintaining global ecological balance. Yet, they continue to be destroyed at an alarming rate.

One of the regions most affected by this loss is Southeast Asia, where activities such as logging, infrastructure development, and the expansion of agricultural plantations are causing deforestation of rainforests. Among these, the palm oil industry in Indonesia and Malaysia is linked to the depletion of the region’s rainforests. Together, these two countries produce nearly 85 percent of the global palm oil supply.

Palm oil is one of the most widely used vegetable oils in the world. Found in approximately 50% of packaged consumer goods, its popularity is largely due to its high yield and versatility. However, its environmental impact continues to raise significant concerns.

To make way for palm oil plantations, vast stretches of tropical rainforest in Indonesia’s Sumatra and Borneo regions have been cleared. These forests, rich in biodiversity, are home to critically endangered species such as orangutans, Sumatran tigers, Bornean elephants and more. Between 2001 and 2022, Indonesia lost over 28 million hectares of tree cover, a significant portion of which was linked to commodity-driven deforestation. In 2023, deforestation linked to palm oil hit alarming highs in some orangutan habitats in Sumatra.

Beyond biodiversity loss, deforestation for palm oil cultivation releases massive amounts of carbon dioxide into the atmosphere, exacerbating climate change and increasing the frequency of climate-related disasters.

While these forests may be located thousands of miles away, their connection to the lives of Indian consumers is much closer than it appears. India is currently the largest importer and second-largest consumer of palm oil in the world, with Indonesia and Malaysia being the main suppliers. Palm oil is a major component of our edible oil basket, and its applications extend well beyond food, into personal care products, cosmetics, and industrial goods.

Its popularity in India is largely due to cost-effectiveness, high productivity, and versatility. However, with this scale of consumption comes responsibility. As one of the biggest demand centers, India plays a significant role in influencing how palm oil is sourced globally, and how Indian consumers can influence its consumption. High demand from India and other key markets has been a factor in the continued expansion of palm oil plantations, often at the cost of forested landscapes.

This presents India with both an opportunity and a responsibility, to lead the demand for sustainably produced palm oil. By choosing sustainability, Indian companies, policymakers, and consumers can significantly influence upstream practices, encouraging the adoption of deforestation-free supply chains and socially responsible production systems.

To address India’s heavy reliance on palm oil imports and boost domestic palm oil production, the Government launched the National Mission on Edible Oils – Oil Palm (NMEO-OP) in 2021. As per the Operational Guidelines of the Mission, oil palm cultivation will be undertaken primarily on farmers’ fields and barren lands and will not involve deforestation or the use of forest land. This gives India a unique opportunity to ensure that domestic palm oil production is not linked to forest loss. At the same time, it presents a strong case for embedding sustainability principles into the domestic oil palm cultivation practices from the beginning.

Recognising both the urgency to address these challenges and the opportunity to drive a lasting change, Centre for Responsible Business (CRB) has been actively involved in promoting responsible sourcing across agro-based supply chains, including palm oil. In September 2018, the Sustainable Palm Oil Coalition for India (I-SPOC) –  the first and only platform of its kind in the country – to promote the uptake of sustainable palm oil. This multi-stakeholder coalition was established by four founding organisations: CRB, Roundtable on Sustainable Palm Oil (RSPO), Rainforest Alliance, and WWF-India.

I-SPOC works with a vision to support sustainable sourcing, trade, and consumption of palm oil and its derivatives in India. The coalition brings together diverse actors from across the palm oil value chain, including industry leaders, retailers, producers, financial institutions, refiners, civil society organisations, and academia. Today, I-SPOC comprises over 40 prominent industry members, all committed to integrating sustainability into their sourcing and operational practices.

The multi-stakeholder platform has been actively engaging with stakeholders to ensure that the environmental and social safeguards are not compromised in pursuit of self-sufficiency. Learn more about ISPOC here.

On this World Rainforest Day, let us acknowledge that conserving rainforests is not just a matter of protecting distant ecosystems – it is equally about making conscious, informed choices in our everyday lives and across supply chains. India, as a major player in the global palm oil value chain, holds both the influence and the responsibility to drive the market toward sustainability.

Through initiatives like I-SPOC, CRB continues its efforts to embed sustainability into the core of Indian business practices. Collaboration, accountability, and a sense of shared responsibility are essential. As consumers, businesses, and citizens, the choices we make today will shape the future of our forests. As zoologist and anthropologist Jane Goodall said, “Every individual matters. Every individual has a role to play. Every individual makes a difference”.