Representing a significant milestone for the Chinese market, the very first shipment of Roundtable on Sustainable Palm Oil (RSPO) Identity Preserved (IP) Certified Sustainable Palm Oil (CSPO) arrived at the Port of Shanghai, China on November 26, 2024. This pioneering effort was spearheaded by Inner Mongolia Yili Industrial Group (Yili Group), Asia’s leading dairy brand and one of the top five globally, in partnership with Yihai Kerry Arawana Holdings Co., Ltd (Yihai Kerry), the largest palm oil trader in China under the RSPO group membership of Wilmar.
A total of 750 tonnes of Certified Sustainable Palm Oil (CSPO), certified under the Identity Preserved (IP) supply chain model, marks the initial batch of Yili Group’s palm oil procurement for 2024-2025.
The IP model ensures that certified palm oil is kept separate from conventional supplies throughout the supply chain, guaranteeing its traceability and sustainability.
This delivery is particularly notable as it follows the certification of Shanghai Kerry Food Industries (under Wilmar) in August 2024, making it the first site in China to obtain RSPO-IP certification.
Crucial food ingredient
Palm oil is a crucial ingredient in Yili’s ice cream production. The company consumed 35,000 tonnes in 2023, of which 360 tonnes (1.03 percent) were RSPO-certified under the Mass Balance (MB) model.
This latest development signifies Yili Group’s drive to expand its use of RSPO-IP-certified palm oil and underscores the Group’s commitment to a deforestation-free supply chain by 2030.
We are very proud of this milestone achievement, not just for Yili Group but also for the Chinese market as it represents a major step in realizing China’s commitment to sustainability. By sourcing RSPO Certified sustainable palm oil, Yili is demonstrating our dedication to responsible sourcing and combating deforestation within our supply chains, said the spokesperson from Yili Group.
Yili’s 2023 Sustainability Report outlines its goal to increase RSPO-IP Certified palm oil by 50 tonnes annually, with a target of purchasing 650 tonnes by 2030.
Yili has also committed to eliminating deforestation in its palm oil, soy, and pulp and paper supply chains by 2030.
As China’s leading palm oil trader, Yihai Kerry is dedicated to setting an example of best practices. With RSPO IP Certification achieved, we are opening the door to stronger partnerships with industry leaders in pursuit of shared sustainability goals, said Zhang Daopeng, Manager of Public Affairs Department from Yihai Kerry.
Increasing uptake of RSPO-certified palm oil
According to RSPO, the arrival of this shipment signals a positive step forward for China in increasing its uptake of RSPO-certified palm oil.
The growing commitment among Chinese companies to sustainability is clear, and this development is expected to accelerate the demand for sustainable palm oil in the Chinese market.
China is the world’s second-largest palm oil importer. Currently, RSPO has over 440 members in China, reflecting a steady increase in engagement across the industry.
The commitments to sourcing CSPO products into China also featured prominently at the recently concluded Roundtable Conference on Sustainable Palm Oil (RT2024) in Bangkok, Thailand.
Yili Group signed an additional sustainable sourcing agreement with Yihai Kerry, demonstrating its ambition to build a global green value chain for palm oil and enhanced partnership.
The arrival of the first RSPO-IP Certified shipment in China is a significant step forward in advancing China’s sustainability agenda. It reflects the growing leadership and commitment of companies like Yili Group and Yihai Kerry in supporting a responsible and equitable palm oil supply chain. RSPO remains dedicated to working alongside Chinese enterprises as they take bold steps towards achieving their sustainability goals, said Joseph D’Cruz, CEO of RSPO, praising the milestone.
This historic shipment demonstrates the collective efforts of industry leaders to align with China’s evolving sustainability priorities, marking the beginning of a new chapter for sustainable palm oil in the country.
