The voice of impact
ESG / CSR
Industries
Greenly solutions
US
US
How Bad is the Palm Oil Industry For the Environment?
Level
The palm oil industry, which produces palm kernel oil and crude palm oil, has played a big role in our global economy, but as of recently – our newfound environmental and social challenges have raised concerns if this worldwide economically beneficial industry and palm oil produced is good for the environment moving forward.
Often found in everyday products and helping to provide millions of jobs, the palm oil industry is continuing to grow – but should it?
In this article, we’ll explain what the palm oil industry is, the pros and cons of the industry, why the palm oil industry is bad for the environment, and potential alternatives to the use of palm oil.
What is the palm oil industry?
The palm oil industry refers to the production and distribution of palm oil, or an edible vegetable oil – often used in products for everyday consumption like pantry food items, toiletries, cleaning products, and even biofuels.
Palm oil is predominantly used in food as a preservative in pantry items such as peanut butter, noodles, chocolate or other baked goods – but is also used in other household products like shampoo, soap, body or hand lotions, and toothpaste.
“ More often than not, palm oil is not a necessity in these everyday household items – as the palm industry can pose health risks to humans in addition to proving detrimental for the planet and current social predicaments. ”
Close
The palm oil industry works by:
- Preparing Palm Oil to Be Produced – The majority of palm oil trees are planted in regions with year-round warm climates – such as Southeast Asian countries like Malaysia and Indonesia. In fact, Malaysia produced 18.45 million tonnes of palm oil in 2022 alone.
- Production in the Palm Industry – Once the palm oil trees are planted, the fruits can be harvested and processed into palm oil – and the palm oil can then be placed into everyday household products such as pantry foods and cosmetics, like cooking oil or canola oil in place of olive oil.
- Distribution – Palm oil isn’t usually distributed in its whole form, but rather concealed into various products used everyday – such as packaged bread or in your favorite cosmetics.
💡 If you’re trying to avoid palm oil products when shopping, be sure to try and read the labels carefully – as palm oil can often be disguised under different names such as palm fruit oil, palm kernel oil, vegetable oil, sodium kernelate, and more.
What are the pros and cons of the palm oil industry?
The palm oil industry is controversial seeing as there are several pros and cons to the palm industry – with some of the benefits including being able to provide numerous jobs and prolong the shelf-life of various products, but the consequences include the environmental damage caused by the industry.
“ Palm oil is beneficial in the sense that it can help to boost the economy and extend the life of your everyday household products, but it may come at a cost – as the palm oil industry has an impact on the planet and potentially our health. ”
Close
The palm oil industry is essential for global trade and helping to boost the economies for countries with lower incomes – but the cons of the palm oil industry are beginning to raise concerns and cause stakeholders to reconsider if the potential setbacks in the long-term are worth the benefits palm oil provides.
Palm oil benefits
Some of the pros of the palm oil industry include:
- Preserving the shelf-life of household products
- Providing millions of jobs
- Helping to boost the economy in countries such as Malaysia, Indonesia, and Columbia
- Red palm oil provides a great source of vitamin E & additional antioxidants
Palm oil consequences
However, some of the consequences of the palm oil industry include:
- Harming biodiversity and air quality
- Enabling unfair working conditions and social injustices
- Compromising current progress on the fight against climate change
- Oil palm plantations and palm oil cultivation
The table below will further depict the pros and cons of palm oil: