Supply Chain Digital (13/08/2026) - RSPO’s 2026 Impact Report tracks sustainable palm oil sourcing, with 20% of global production certified and manufacturers & retailers increasing compliance

Supply chain actors across manufacturing and retail are adopting certified sustainable palm oil at rates that could reshape tropical commodity flows.

According to the Roundtable on Sustainable Palm Oil (RSPO), 20% of global palm oil production now carries certification.

The RSPO 2026 Impact Report documents how voluntary standards are affecting procurement patterns and land management across producer regions.

Certified sustainable supply has expanded to protect more than 551,000 hectares of carbon-rich forests and high-conservation ecosystems.

Certification networks expand across supply chains

The RSPO operates with approximately 6,300 voluntary members across three categories.

Ordinary members include organisations with direct supply chain involvement and associated NGOs, banks or investors.

Associate members purchase less than 500 tonnes of palm oil and palm oil products per year.

Affiliate members are organisations or individuals not directly involved in the palm oil supply chain.

According to the report, downstream actors show responsible sourcing target compliance past 56%.

Certified facilities have surpassed 7,500 globally and trademark licenses now span 94 countries.

This distribution could make tracing certified sustainable palm oil ingredients easier for manufacturers.

Downstream compliance rates rise

Under the RSPO Shared Responsibility framework, manufacturers and retailers are making progress on uptake targets.

Manufacturers show compliance rates of 61% and retailers have reached nearly 70% compliance.

These rates apply to actors purchasing certified sustainable palm oil through the RSPO system.

The framework requires downstream companies to set time-bound targets for certified material use.

Compliance is measured against these self-declared commitments.

More than 551,000 hectares of High Conservation Value, High Carbon Stock and vital peatland areas have been protected from land conversion under RSPO standards.

This area is nearly eight times the size of Singapore.

"The data and information presented in this 2026 RSPO Impact Report make a compelling case: sustainable palm oil is working and the results are clearer than ever," says Joseph D'Cruz, CEO of RSPO, in the report.

Regulatory pressure affects sourcing decisions

Joseph notes that regulatory frameworks are raising requirements on deforestation, due diligence and supply chain transparency. Investors and fund managers are scrutinising environmental and social governance with greater rigour.

"Consumers are asking harder questions about the origins of the products they use," says Joseph.

"These shifts are not a threat to RSPO; rather, they validate the need for systems like ours that provide credible, transparent and well-governed impact."

Proactive monitoring has reduced environmental hazards in certified areas. According to the report, certified concessions account for only 1.38% of regional fire hotspots in Southeast Asia.

Mechanisms like the New Planting Procedure and zero-deforestation mandates are preserving biodiversity corridors. These protocols aim to stabilise ecosystem services while allowing production to continue.

Emissions reductions in processing operations

Climate accountability has become a focus for certified producers. Companies are quantifying and cutting GHG emissions across agricultural operations.

Through strict land-clearing protocols and improved Palm Oil Mill Effluent handling, certified operations avoid nearly 2.98m tonnes of CO₂e emissions annually. This is equivalent to removing almost 700,000 vehicles from the road.

Processing facilities are deploying methane capture technologies and solar installations. These measures reduce Scope 1 and Scope 2 emissions while providing downstream partners with lower-carbon raw materials.

More than 660,000 direct workers operate within certified facilities protected by enforceable labour and human rights standards. The standards ensure fair compensation and safe working environments.

These protocols aim to stabilise ecosystem services while allowing production to continue.

Emissions reductions in processing operations

Climate accountability has become a focus for certified producers. Companies are quantifying and cutting GHG emissions across agricultural operations.

Through strict land-clearing protocols and improved Palm Oil Mill Effluent handling, certified operations avoid nearly 2.98 million tonnes of CO₂e emissions annually. 

This is equivalent to removing almost 700,000 vehicles from the road.

Processing facilities are deploying methane capture technologies and solar installations. 

These measures reduce Scope 1 and Scope 2 emissions while providing downstream partners with lower-carbon raw materials.

More than 660,000 direct workers operate within certified facilities protected by enforceable labour and human rights standards. 

The standards ensure fair compensation and safe working environments.

"The data proves that rigorous sustainability standards deliver verifiable impact on the ground," Yen Hun Sung, Director Standards and Sustainability at RSPO, tells Sustainability Magazine. "From forest conservation to economic workshops for women, RSPO Members are showing that sustainable palm oil production can actively safeguard ecosystems, mitigate climate change and uplift communities."

Smallholder integration through credit trading

Independent smallholder inclusion is advancing through direct credit trading models. According to the report, these models generated US$7.9m in direct financial benefits for smallholder groups in 2025 alone.

More than 17,000 smallholders have received targeted training programmes. The sector is fostering rural economies that align local agricultural livelihoods with global sustainability standards.

Smallholder integration allows independent producers to sell certified credits directly to buyers. This mechanism provides financial incentives for compliance with RSPO standards.

The training programmes cover farm management, certification requirements and safety protocols. Smallholder participation rates vary by region and producer network.

SD Guthrie Berhad's decarbonisation programme

SD Guthrie Berhad has established a net zero roadmap validated by the Science Based Targets initiative. The company aims for carbon neutrality across Scope 1 and 2 emissions by 2030 and net zero emissions by 2050.

The majority of emissions originate from POME. SD Guthrie is accelerating its renewables programme by deploying methane capture through 47 biogas plants across mill operations by 2030.

The company protects or restores more than 51,000 hectares of land. It has set aside 400 hectares of peat plantations in East Malaysia for restoration and is expanding reforestation efforts across non-productive areas.

Smallholder integration allows independent producers to sell certified credits directly to buyers. 

This mechanism provides financial incentives for compliance with RSPO standards.

The training programmes cover farm management, certification requirements and safety protocols. 

Smallholder participation rates vary by region and producer network.

SD Guthrie Berhad's decarbonisation programme

SD Guthrie Berhad has established a net zero roadmap validated by the Science Based Targets initiative. 

The company aims for carbon neutrality across Scope 1 and 2 emissions by 2030 and net zero emissions by 2050.

The majority of emissions originate from POME. 

SD Guthrie is accelerating its renewables programme by deploying methane capture through 47 biogas plants across mill operations by 2030.

The company protects or restores more than 51,000 hectares of land. It has set aside 400 hectares of peat plantations in East Malaysia for restoration and is expanding reforestation efforts across non-productive areas.

"Regenerative agriculture is part of our 'Beyond Zero' sustainability framework, guiding how we manage soil health, biodiversity and water systems across our operations," Rashyid Redza Anwarudin, Chief Sustainability Officer at SD Guthrie Berhad, tells Sustainability Magazine.

"Through initiatives like our landscape-level sustainability partnership with WWF-Malaysia, we are working to move beyond simply reducing our footprint toward actively restoring the ecosystems we depend on," says Rashyid. "Reports like RSPO's Impact Report are a valuable way for the industry to track that progress collectively, not just individually."

Scope 3 engagement and labour remediation

Scope 3 emissions pose supply chain challenges for palm oil producers. SD Guthrie actively engages its value chain to ensure compliance.

The company achieved an 89% deforestation-free palm-based feedstock rate in FY2025. This rate applies to material sourced from third-party suppliers.

SD Guthrie has taken steps to address forced labour allegations. The company dedicated MYR82.02m (US$20.1m) to reimburse recruitment fees to workers.

It has established worker-elected dialogue platforms and implemented automated systems to track working hours. These measures aim to improve labour conditions and supply chain transparency.

Read more at https://supplychaindigital.com/news/rspo-2026-report-tracks-sustainable-palm-oil-supply-chains