Publications
Publications
- March 2016 (Revised June 2016)
- HBS Case Collection
Gotong Royong: Toward Sustainable Palm Oil
By: Rebecca Henderson, Hann-Shuin Yew and Monica Baraldi
Abstract
In late 2015, Jeff Seabright, chief sustainability officer at Unilever, had to report to Unilever CEO Paul Polman on the effort to transform palm oil cultivation. Historically, palm oil was produced using unsustainable methods that included burning large tracts of forest land, which destroyed wildlife habitats, displaced native populations, and emitted greenhouse gases into the atmosphere. Global demand for palm oil was increasing, which made the situation worse. Unilever was the largest single buyer of palm oil, purchasing about 3% of global production, and had been an active promoter of sustainable palm oil production. In 2015, 60% of globally traded palm oil was covered by sustainability commitments, up from 5% in 2008, but there was more to be done. Palm oil-driven deforestation and different kinds of social issues continued across the world, especially in Indonesia and Malaysia, which produced 80% of palm oil. The case discusses the sustainability strategy implemented by Unilever across time with regards to palm oil, together with the efforts implemented by other organizations such as the Consumer Goods Forum, the Roundtable on Sustainable Palm Oil, social and environmental NGOs, Unilever’s competitors, and the local governments in Southeast Asia. What more could Unilever do to advance the diffusion of sustainable palm oil?
Keywords
Sustainability; Environment; Industry Self-regulation; Corporate Image; Corporate Strategy; Indonesia; Malaysia
Citation
Henderson, Rebecca, Hann-Shuin Yew, and Monica Baraldi. "Gotong Royong: Toward Sustainable Palm Oil." Harvard Business School Case 316-124, March 2016. (Revised June 2016.)