May 17, 2020

P&G Sets new sustainability goal: No deforestation in Its Palm Supply Chain by 2020

Consumer Goods
deforestation
Len Sauers
Proctor & Gamble
Admin
2 min
The consumer goods giant aims to wipe out deforestation within the next 6 years.
The Procter & Gamble Company has announced an advancement in its global sustainability goals, declaring a commitment to no deforestation in its palm...

The Procter & Gamble Company has announced an advancement in its global sustainability goals, declaring a commitment to no deforestation in its palm oil supply chain by improving practices with all its suppliers, including small local farmers, to ensure protection of forests.

Len Sauers, P&G Vice President of Global Sustainability, said: “P&G’s commitment to no deforestation in its palm supply chain is unequivocal.

“Our aim is to develop effective long-term solutions to the complicated issue of palm oil sustainability. We are committed to driving positive change throughout the entire supply chain, not just for us, but for the industry and for the small farmers who depend on this crop,”

Already 100% of P&G’s purchased palm oil is certified by Roundtable for Sustainable Palm Oil (RSPO) standards. P&G is a member of the RSPO and supports the criteria it has established for sustainable palm oil. The new goals go beyond RSPO certification with the objective of developing reliable, effective and lasting sustainable practices by all palm suppliers.

P&G’s new goals call for ensuring no deforestation in its entire palm supply chain. Specific commitments include:

1. Establish traceability of palm oil and palm kernel oil to supplier mills by December 31, 2015.

2. Ensuring no deforestation in the palm supply chain to plantations by 2020.

  • For palm oil, require suppliers to submit plans by December 31, 2015 that demonstrate how they will ensure no deforestation in the supply chain for their mills by 2020.
  • For palm kernel oil, begin investing in and working with small farmers, with the aim of improving their practices to ensure no deforestation in the supply chain by 2020.

3. Working with suppliers, industry peers, NGOs, academic experts and other stakeholders to promote consistent industry standards and practices for sustainable palm oil sourcing.

4. Continuing to support universal human rights as outlined in P&G’s existing Sustainability Guideline for Suppliers, and to support the rights of indigenous people.

5. Reporting annually on progress toward achieving these goals.

“These goals go beyond our current commitments. P&G will continue to work with each of our suppliers, and we will invest in and work directly with small local farmers, where much of our supply comes from, to improve their production practices,” added Len Sauers. “This is the most complicated aspect of the palm supply chain, where P&G believes we can make a significant and lasting impact.”
Proctor & Gamble serves approximately 4.8 billion people around the world and includes operations in approximately 70 countries worldwide. Please visit http://www.pg.com for the latest news on its brand.

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Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

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