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SD Guthrie chief calls out ‘no palm oil’ hypocrisy, urges true partnership among RSPO members | News | Eco-Business


He questioned the sincerity of brands that claim to be allies in sustainability yet perpetuated anti-palm oil sentiment through their labelling and advertising, when delivering his special remarks at RSPO’s annual roundtable conference, RT2025, in Kuala Lumpur last week.

“There are brands that sit with us at the same table, that claim to believe in sustainable palm oil – yet proudly sell products that say, ‘No Palm Oil’,” he said. He presented a slide that showed Western brands with “palm oil free” claims, including Kendamil Organic toddler milk, Ovaltine, and The Greek Kitchen spread. “What message does that send to consumers? What does it say about partnership?”

Helmy urged companies to align their actions with their membership commitments, saying that genuine partnership requires consistency and courage.

“If we are truly partners, then our advocacy must match our membership. Our words must match our actions,” he said, emphasising that genuine commitment to Certified Sustainable Palm Oil (CSPO) means defending it openly and without apology.

The palm oil industry has long been under intense global scrutiny, accused of driving deforestation and biodiversity loss despite significant improvements in recent years.

Producers in Malaysia and Indonesia, which together supply around 85 per cent of the world’s palm oil, have implemented stricter sustainability standards such as satellite monitoring to improve traceability, no deforestation, no peat and no exploitation (NDPE) policies, and smallholder inclusion to address stakeholder scrutiny, particularly in Western markets.

Helmy criticised what he described as “double standards” in global sustainability policies, where palm oil-producing nations face tougher scrutiny than industries or countries with worse environmental records.

He pointed to declining deforestation rates in Malaysia and Indonesia; over 60 per cent lower than peak levels according to data from Global Forest Watch (GFW) [Global Forest Watch is run by WRI], as evidence of real progress that continues to be overlooked.

“Applying a more stringent standard on a poor or developing country is economic apartheid,” Helmy said, referencing the EU Deforestation Regulation (EUDR). “The hypocrisy needs to stop.”

His comments come a month after deforestation for palm oil production was found in SD Guthrie’s supply chain in Sarawak following on-ground investigations in December 2024 and September 2025. The company confirmed that sourced palm oil linked to forest clearance, but said it has taken remedial steps with its supplier.

Palm oil-linked deforestation in Indonesia increased last year for the first time in a decade in 2024, according to GFW data.

“Colonial thinking”

Helmy said that while fossil fuel use is often justified under “energy security,” sustainable palm oil continues to be unfairly targeted in the name of deforestation. SD Guthrie has claimed to be the world’s largest producer of sustainable palm oil.

“Over the past three decades, while palm oil was painted as one of the great environmental villains, fossil fuel producers, whose emissions are the largest cause of climate change, often escaped equivalent moral outrage,” he said, noting that such double standards not only distort global policy discussions but also undermine the efforts of producing nations that have made to improve sustainability.

Helmy argued that deforestation must be viewed alongside economic realities in developing nations, saying that poorer countries should not be punished for pursuing growth.

“The only equitable and ethical solutions for poorer countries are to allow them to use their natural resources, even if that means losing some forest, to stimulate economic activity,” he said.

“Every rich country with less than 50 per cent forest cover needs to step up and start planting or start paying underdeveloped nations to maintain theirs.”

He cautioned that the continued vilification of palm oil under what he described as “colonial thinking” would not only penalise producer countries but also backfire on the global economy.

“If the world continues to reject palm oil using one-sided, myopic standards, it will pay the price, in food security, affordability, and climate targets,” he warned.

Smallholder inclusion

Echoing similar concerns, RSPO chief executive Joseph D’Cruz highlighted that smallholders must remain central to the global sustainability agenda, as they are often the most affected by market barriers and policy decisions made without their input.

D’Cruz stressed that inclusive solutions and financial support are essential to ensure that smallholders can meet sustainability standards while maintaining their livelihoods, amid growing barriers such as the EUDR that have dampened demand for smallholder credits, reduced development funding due to government budget cuts, and disruptions to long-standing trade relations due to shifting tariff rules.

“That’s why I am making a strong call to all our members to rally around and support our smallholders, in your sourcing and in your partnerships,” D’Cruz said.

“Our smallholder members have done the hard work. They have shown that they can produce sustainably. They have proven their commitment with audits and certification.”

He added that RSPO’s latest initiatives, including the 2024 Principles and Criteria and Independent Smallholder Standards, that will come into force this month, and the revised Supply Chain Certification Standard, expected to be endorsed in September 2026, aim to enhance both environmental integrity and market inclusivity.

“These updated standards are better aligned with today’s regulatory and market needs, with greater safeguards to protect our forests, human rights, and smallholders,” he said.

RSPO also launched Prisma earlier this year, a traceability system for purchasing and selling RSPO-certified oil palm products. It allows mills, crushers, traders, refiners, manufacturers, and retailers to sell and buy RSPO CSPO under one of four supply chain models.

Turning to social equity, Helmy emphasised that sustainability must also uplift people, especially smallholders who form the backbone of the palm oil industry in Malaysia, Indonesia, and Papua New Guinea, during his address.

“If we deny them the opportunity to grow responsibly, we are effectively saying to them: stay poor, stay behind. That is not sustainability, that is hypocrisy,” he said.

Helmy called for “controlled, planned, and responsibly managed” smallholder expansion with strong safeguards to be part of the solution and urged companies to demonstrate true partnership through action.

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