POLICIES
Palm Oil
Besso Distribution Ltd
1. Scope and Applicability
This policy applies to all Besso Distribution Ltd-branded food and non-food products globally that contain palm oil or palm-derived ingredients.
Effective Date: 1 June 2025
Review Cycle: Annually, with updates published as needed to reflect progress or industry changes.
Effective Date: 1 June 2025
Review Cycle: Annually, with updates published as needed to reflect progress or industry changes.
2. Certification Commitment
Besso Distribution Ltd is committed to sourcing 100% RSPO-certified palm oil and palm kernel oil for all applicable products.
We recognize four RSPO-certified supply chain models and aim to advance toward greater traceability over time:
- Book & Claim (GreenPalm): The simplest model, allowing purchase of certificates to support sustainable production without requiring physical traceability.
- Mass Balance: A system where certified and non-certified palm oil can be mixed at various points, but the overall volume remains controlled and monitored.
- Segregated: Only certified palm oil is used and kept separate throughout the supply chain.
- Identity Preserved: The most transparent model, where certified palm oil can be traced back to a specific certified source.
Transition Goal:
By December 2026, a minimum of 50% of palm oil volumes used in our products will be sourced through Mass Balance, Segregated, or Identity Preserved supply chains.
By December 2026, a minimum of 50% of palm oil volumes used in our products will be sourced through Mass Balance, Segregated, or Identity Preserved supply chains.
3. Use of Alternative Oils
We recognize that sustainable palm oil alternatives may be viable in certain contexts. We will consider substituting palm oil with sunflower, rapeseed, or other oils based on:
- Functionality and performance in product formulation
- Cost implications
- Comparative carbon footprint and environmental impact
Pilot reformulations and product trials will be conducted by Q4 2025 to assess feasibility and ensure product quality is maintained.
4. Supplier Engagement & Verification
Suppliers must:
- Provide annual third-party audit reports confirming compliance with RSPO standards
- Complete self-assessment forms annually
- Cooperate with random on-site verifications where required
Non-compliance will result in a corrective action plan with defined timelines. Failure to comply may lead to contract suspension or termination.
5. Transparency and Reporting
Besso Distribution Ltd will publish annual progress reports, including:
- The percentage of palm oil volumes by RSPO certification model
- Any shifts toward alternative oils
- Key milestones and challenges
We will also explore launching a public-facing dashboard or CSR report summary to increase stakeholder visibility into our progress.
6. Community and Smallholder Support
We are committed to supporting the inclusion of smallholder farmers in sustainable supply chains. This includes:
- Funding or co-funding training programs and certification support
- Offering fair pricing and long-term purchasing contracts
- Respecting local communities’ land rights and ensuring that our supply chain does not contribute to deforestation or exploitation
Policy Summary Statement (Illustrative)
“Effective 1 June 2025, all Besso Distribution Ltd-branded products globally will use 100% RSPO-certified palm and palm kernel oil. We are committed to transitioning at least 50% of these volumes to more traceable supply chain models—Mass Balance, Segregated, or Identity Preserved—by the end of 2026. Suppliers are required to submit annual third-party audit documentation, and non-compliance will result in corrective measures or potential contract termination. Where feasible, we will assess alternative oils based on functionality, cost, and environmental impact, with reformulation pilots completed by Q4 2025. Besso Distribution Ltd also supports smallholders through training, fair pricing, and long-term partnerships.”