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CSR strategy, Engineering and responsible sourcing Major Companies Unite for Collective Action on Sustainable Palm Derivatives
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19 November 2019

Leading global beauty and home and personal care brands as well as oleochemicals firms, announced today the launch of Action for Sustainable Derivatives (ASD), a cross-industry initiative to spur action for sustainable production and sourcing of palm oil and palm kernel oil This new collaboration is based on a recognition that, while companies are increasingly seeking to accelerate compliance with deforestation-free and responsible sourcing principles, individual supply chain dynamics and overlapping comparable approaches have led to significant duplication of efforts in this area. Spurred by the expertise acquired by L’Oréal and Transitions, who have been working together over the past five years to build a responsible palm oil and palm kernel oil derivatives supply chain, ASD is being launched with the objective of sharing this knowledge and the methodologies developed with other industry members. It brings together a broad range of actors to scale up efforts towards compliance with No Deforestation, No Peat, No Exploitation principles and to positively transform the palm oil industry. Jane Tousco, Head of Sustainable Sourcing at Transitions, said: “Our experience in supporting corporates in implementing their action plans for sustainable sourcing led us to the observation that many organizations in the sector are implementing comparable approaches that are not harmonized despite a similar end goal. Such individual dynamics that create duplication in the market constitute a limiting factor to reach the global NDPE target. ASD represents a wonderful opportunity for derivatives buyers, and more specifically palm, to work in a pre-competitive approach for implementing concrete solutions to overcome the singular complexities of their supply chain and address the issues together.” By harmonizing requirements, standardizing tools and methodologies, and mutualizing transparency, risk monitoring, and evaluation efforts, ASD will create a level playing field for brands and their direct suppliers and will reduce the burden on upstream supply chain players. The initiative will notably result in experimentation of operational solutions to secure a responsible supply chain, including, for instance, supporting sustainable field projects and/or landscape initiatives in an off-take approach. ASD is a pre-competitive collaboration co-managed and co-facilitated by BSR and Transitions, organizations with extensive experience and expertise in supply chain sustainability and business collaborations. Organizations interested in receiving more information on the initiative and the conditions for participation can contact ASD by writing to asd@bsr.org. Tara Norton, Managing Director at BSR, said: "BSR is pleased to work in partnership with Transitions to support a leading group of companies as they take action to increase the transparency of the global palm derivatives supply chain, to collectively monitor risks and activities all along the supply chain, and to identify and advance collective action projects to address social and environmental issues in the field. We believe that Action for Sustainable Derivatives (ASD) can make a tangible difference, and we look forward to its development."  
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