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Press Release
Düsseldorf, October 14, 2008
Pioneering work: Henkel initiates trading with palm kernel oil certificates
Henkel contributes to protecting the rain forests
Committing to sustainable development and corporate social responsibility includes tackling
the issue of where the raw materials for production originate and how they themselves are
produced. Palm kernel oil, a renewable raw material used in the manufacture of surfactants
(surface-active substances used in laundry and home care and also cosmetic products) is a
case in point. Together with independent partners, Henkel has helped to achieve recognition of
certificates for sustainable palm kernel oil as issued for official trading by the ‘Roundtable for
Sustainable Palm Oil’ – and bought the certificates for the new Terra Activ cleaners. The
certificates serve to confirm sustainable palm cultivation in the countries of origin and
contribute to protecting the rain forests. The process for trading these certificates, known as
‘Book & Claim’, functions in a manner similar to that applied to eco-electricity.
Düsseldorf – “We are proud to have been instrumental in establishing the first trading platform for
sustainable palm kernel oil certificates,” commented a delighted Christian-Andre Weinberger,
Corporate Senior Vice President and Global Chief Marketing Officer in the Laundry & Home Care
business sector. “Together with a number of independent partners, Henkel has helped pioneer the
establishment of the Book & Claim system, leading to the opening up of new markets for sustainable
palm kernel oil. This scheme has the potential to quickly create new and significant incentives for
sustainable palm kernel oil development by all market participants,” Weinberger continued. “Our vision
is that all palm oil and palm kernel oil will eventually originate from sustainable production systems.”
For decades, Henkel has been committed to sustainable development and corporate social
responsibility, and that includes pursuing sustainability in raw materials production. Henkel’s aim is to
make a significant contribution to ensuring that the cycle that begins with the cultivation of these
renewable raw materials is thoroughly sustainable throughout the entire value chain, with responsible
usage and ecologically sound disposal.
Around 35 percent of the surfactants used in the laundry and home care products and cosmetics
produced by Henkel are based on renewable raw materials. The commodities involved primarily take
the form of palm kernel oil and coconut oil. Although Henkel uses less than one percent of worldwide
palm oil and palm kernel oil production indirectly through its consumption of surfactants, since 2003
the company has been involved in the Roundtable on Sustainable Palm Oil or ‘RSPO’. This was
created in 2002/03 on the initiative of, among others, the WWF, with the purpose of promoting and
monitoring sustainable palm oil and palm kernel oil production. In particular, Henkel supports a
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marketing model for sustainable palm oil and palm kernel oil: the Book & Claim system. This scheme
separates the certificates from the physical product flows. A well-known example for such a
certification system is that applied to eco-electricity, which is traded in Germany on the basis of similar
criteria. Only those plantations that satisfy the strict requirements laid down by the RSPO – which
includes the non-felling of rain forests – qualify to receive the associated certificates.
In order to promote and establish the Book & Claim system for palm kernel oil, Henkel has, as the first
company in the world, now purchased such palm kernel oil certificates for its newly introduced brand
Terra Activ, a product that has been on the market since October 1. Terra Activ cleaners offer top
performance and are manufactured from substances that satisfy strict criteria with respect to the
environment. The share of the ingredients based on renewable raw materials is in excess of 70
percent. Consequently, Henkel has set a new standard in combining excellence with environmental
compatibility. ‘Performance based on Sustainability’ is the name of the strategy behind this approach.
“Our focus in adopting this strategy is on integrating the strengths and capabilities of our brands with
responsibility for people and the environment,” explains Weinberger. “We see enormous potential in
this combination of performance plus sustainability for driving forward the development of innovative
products and more intelligent solutions. The benefits for our consumers derive from the fact that, in
their purchasing decisions, they are able to choose not only the best-performing product but also the
more sustainable option. This is further underlined by Henkel throughout the world with our ‘Quality
and Responsibility’ logo, which appears on all our laundry and home care products.”
Further comprehensive information concerning Henkel’s activities in the field of sustainability and
corporate social responsibility, plus all the rankings and ratings, can be found under
www.henkel.com/sustainability.
For more than 130 years, Henkel has been a leader with brands and technologies that make people's
lives easier, better and more beautiful. Henkel operates in three business areas – Home Care,
Personal Care, and Adhesive Technologies – and is ranked among the Fortune Global 500
companies. More than 60 percent of Henkel’s sales are in fast-moving consumer goods, while the
industrial business accounts for almost 40 percent of the company’s total sales. In fiscal 2007, Henkel
generated sales of 13,074 million euros and operating profit of 1,344 million euros. Our more than
55,000 employees worldwide are dedicated to fulfilling our corporate claim, "A Brand like a Friend,"
and ensuring that people in more than 125 countries can trust in brands and technologies from
Henkel.
Contact
Lars Witteck
Tel. +49 211 797 - 2606
Fax +49 211 798 - 4040
Dr. Ute Krupp
Tel. +49 211 797 - 5641
Fax +49 211 798 - 4040
Henkel AG & Co. KGaA
Head of Corporate Communications
Ernst Primosch, Corporate Vice President
Further photos and material available at http://www.henkel.com/press, [email protected]
Henkel AG & Co. KGaA, Corporate Communications
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Annex
What are palm oil and palm kernel oil?
There are three products that can be extracted from harvested palm oil fruits: palm oil, palm kernel oil
and palm kernel meal. A large proportion, around 80 percent, of worldwide production of palm oil is
used in the food industry as an important source of vegetable fat, for example for margarine and
confectioneries. Palm oil is also suitable for the manufacture of biofuels. Consequently, oil palms also
supply a renewable raw material as an alternative to petrochemical products. Palm kernel oil is
extracted as a by-product from the kernels of the oil fruits. Unlike palm oil, it is only suitable for a
limited range of applications in the food segment. Its primary use is in the oleochemical industry where
surfactants (surface-active and wash-active substances) are extracted from palm kernel oil for the
manufacture of detergents, household cleaners and cosmetic products. In 2007, the world market for
palm oil and palm kernel oil amounted to around 42.4 million metric tons.
What is the Roundtable on Sustainable Palm Oil (RSPO)?
The Roundtable on Sustainable Palm Oil was established on the initiative of, among others, the World
Wide Fund for Nature (WWF) and certain interested representatives of trade and industry in order to
find suitable means of encouraging the sustainable production of palm oil and to counter the
destructive exploitation of the rainforests and the disappearance of wetlands, particularly in Indonesia.
Initially (in 2002), it took the form of an informal collaborative arrangement between certain
companies, a trade association and the WWF. Today, the initiative boasts over 340 members
including palm oil producers, FMCG manufacturers, retailers, banks, investors and also nongovernmental organizations (NGOs). The RSPO was officially established in Kuala Lumpur, Malaysia,
in August 2003. This inaugural meeting attracted 200 participants from 16 different countries, among
them a Henkel delegate. The RSPO’s head office is in Zurich and the secretariat is located in Kuala
Lumpur. The members meet once a year for a roundtable meeting, with group meetings taking place
on a more frequent basis. In 2007, Henkel participated in the fifth meeting of the RSPO (RT5) in Kuala
Lumpur, Malaysia. To reaffirm and visibly underscore its commitment, Henkel became an official
member of the Roundtable on Sustainable Palm Oil in April 2008.
What is the Book & Claim system?
The Book & Claim system is a trading model based on certificates which represent a certain quantity
of palm and palm kernel oil produced by sustainable methods. The certificates in this case are traded
separately from the physical product flows. A well-known example of such a certificate-based scheme
is that applied to eco-electricity which, in Germany, is traded on the basis of similar criteria. The
system is relatively simple: a trading platform has been established for the buying and selling of palm
oil produced according to sustainability criteria. This platform is operated by the company GreenPalm.
The producers of palm oil register with the GreenPalm trading platform, indicating how much of their
palm or palm kernel oil certified by RSPO auditors they wish to sell. The certificates issued on the
basis of this registration can then be traded in the marketplace. The price is negotiated on the basis of
supply and demand by the producers and purchasers. Purchasers of the certificates are able to verify
through their purchase that a quantity of sustainable palm or palm kernel oil corresponding to the
certificates has flowed into the supply chain. Hence this certificate-based arrangement generates
financial incentives for small producers not involved in international trade to place their production on a
sustainable footing. Henkel is of the view that the Book & Claim system currently offers the best
means for supporting sustainable palm and palm kernel oil development, on condition that the process
is clearly structured, transparent and properly monitored.
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