Supply Chain: Palm

Toward a more sustainable supply chain for palm oil

As part of our overarching commitment to sustainable agriculture, ADM works to help create a more sustainable supply chain for palm oil—a key ingredient in consumer products ranging from cookies and crackers to cosmetics, renewable fuels and pharmaceuticals.

Our belief

ADM believes that all participants in the palm oil supply chain have obligations to promote good stewardship of the world’s cropland and to respect:

  • biodiversity and the environment, by refraining from expanding cropland into sensitive animal habitats and high-conservation-value forest land, and
  • human rights, by maintaining labor standards that prohibit worker exploitation and discrimination, and by helping to ensure that the land used for oil palm does not diminish tribes’ legal or customary rights without their free, prior and informed consent.

ADM will not knowingly source or purchase palm oil from illegally cleared land or palm oil that does not comply with local laws and regulations. Suppliers must agree to meet the Roundtable on Sustainable Palm Oil Principles and Criteria. If ADM or the RSPO finds that a supplier is not meeting its obligations under the RSPO Principles and Criteria, and if that supplier does not demonstrate a good-faith effort to address the issue in a timely manner, ADM will take appropriate action, up to and including exclusion of that supplier from new direct contracts.


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