The Oil and Fats Congress 2021 (OFIC 2021) is having its annual conference, this time going virtual. The first day yesterday proved highly informative, and many interesting points made throughout:
The presentation by Professor Loh Teck Peng of Nanyang Technological University explored whether it was possible to create a fully green, biocompatible synthetic material. Research by Professor Loh’s team has shown that it is entirely possible to create an “aqueous media” using “practical and green chemical process” which generates less waste.
During the Sustainability and Climate Change Modules:
Dr Gary Theseira, a senior research officer with the Forest Research Institute Malaysia (FRIM), recommended that sustainability policies should be approached from a more resource-based perspective. To that end, he emphasised the importance of a comprehensive census of resources to dispel the narrative that the palm oil industry is a land and labour hungry sector frequently associated with indirect land use change (ILUC).
Dr Alain Rival of the French Agricultural Research Centre for International Development (CIRAD) pointed out that while oil palm plantations have the advantage of high oil yields and wide agronomic plasticity, it has poor climatic resilience; this is due to factors including large-scale monoculture and risky geographic concentration, i.e. 90% of global palm oil is concentrated around the Malacca Straits. It is thus prudent if research were to pay more attention to the climatic resilience of palm oil.
Sime Darby Oils (SDO) Managing Director Mr Mohd Haris Mohd Arshad believes that evolving global opinions on sustainability points to several indications: (1) sustainability sourcing will be mainstream; (2) ultra transparent supply chains; (3) higher climate change urgency; (4) clearer expectations on human rights protection and remedies, including labour rights; (5) a shift from voluntary to regulatory-based compliance; and (6) increasing investor pressure on sustainability sourcing, e.g. BlackRock CEO’s annual letter to CEOs.
Dr Denis Murphy of University of South Wales presented an interesting observation: the Covid-19 pandemic has increased demand in the personal care sector. This provides an opportunity for companies to address environmental concerns associated with palm oil consumption. There is also rising negative attention directed at the palm oil industry in general, this time most likely fuelled by more recent labour allegations against several palm oil companies.