Estée Lauder completes sustainable palm oil farming program ahead of new EU law

14 Mar 2024 --- Estée Lauder Companies (ELC) and other “leading” organizations officially completed Project Lampung this month. The collaborative initiative focused on the sustainability of the palm oil supply chain.

Palm oil collection faces criticism for contributing to deforestation, exploiting workers and releasing harmful gasses into the environment. 

According to the World Wildlife Fund, forest loss coupled with the conversion of carbon-rich peat soils throws millions of tons of GHG into the atmosphere and contributes to climate change. 

It says a palm oil mill generates 2.5 metric tons of effluent for every metric ton of palm oil it produces with direct release of the effluent potentially causing freshwater pollution, affecting downstream biodiversity and people. The organization also believes the palm oil industry exploits workers and involves child labor.

Other organizations involved in Project Lampung include BASF, one of ELC’s long-term ingredient suppliers, RSPO, Business Watch Indonesia and the Indonesian Agency for Agricultural Extension.

Sustainable farming
ELC’s program aimed to strengthen the sustainability of the palm oil supply chain and support smallholder farmers in the Lampung province of Indonesia.

The initiative provided technical education and training for 1,003 independent smallholder farmers. It helped 313 of them receive the official Roundtable on Sustainable Palm Oil (RSPO) certification — making them the first such group in the Way Kanan Regency of Lampung to do so.

ELC finishes its sustainable palm oil farming program amid discussions in the EU on deforestation.Launched in 2018 and originally intended to take three years, the program was extended to accommodate shifting priorities for smallholder farmers to support their needs during the COVID-19 pandemic. Plans for in-person training and engagement were postponed until groups could safely gather, so the local team “worked to build trusting relationships with the farmers” and initiated Farmer Field School training in January 2022.

One farmer says: “The RSPO principles have been excellent for preserving our environment, keeping our soil healthy, and helping our plants to thrive, resulting in healthy yields.”

Before Project Lampung’s launch, smallholders in Way Kanan had limited exposure to sustainable palm oil production practices, and the cooperative did not have a strategic focus in supporting smallholders.

ELC says that through a continuous education program, the farmers improved their knowledge of sustainable production, including learning about good agricultural practices and best management practices that help protect the environment.

Palm oil without deforestation
As part of the project and in partnership with local organizations, Social and Environmental Impact Assessments were also conducted, mapping farmers’ fields to verify that no deforestation or land conversion had occurred.

To support direct market access for smallholders, ELC also announced the purchase of 220 RSPO credits from these newly certified farmers in the Lampung region. The purchase also supports the company’s commitment to responsibly sourcing palm-based ingredients. Since 2015, 100% of the palm-based ingredients sourced by ELC are said to be certified under one of RSPO’s certification types.

At the end of this year, the EU will enact Deforestation Regulations (EUDR), ensuring that seven commodity products — including palm oil — will no longer be sold in the EU if sourced from areas affected by deforestation or forest degradation practices.

Fighting for responsible palm oil
Through ELC’s Charitable Foundation (ELCCF), it is also a founding member of the Action for Sustainable Derivatives (ASD) Impact Fund, a collaborative initiative that gives direct support to on-the-ground projects addressing underlying issues influencing responsible practices in priority palm production landscapes.

With ELCCF and other donor support, ASD has continued to help expand the Kaleka Mosaik Initiative, a program focused on finding ways to sustainably restore the landscape and drive economic growth in two of the largest palm-producing districts in Central Kalimantan, Indonesia.

By Sabine Waldeck