In the sophisticated B2B market, the conversation on sustainability has moved on. A basic RSPO certificate is no longer the end of the discussion; it's the starting point. The new gold standard is 100% traceability. Top-tier buyers no longer just ask "Is it certified?" They now ask, "Can you trace it back to the plantation?"

This demand for radical transparency is reshaping the oleochemical trade. At Tradeasia International, we've embraced this challenge. We understand that our clients aren't just buying a chemical; they are buying security and trust. Our investment in digital, traceable supply chains for our palm products provides that security, ensuring our partners can answer the toughest questions from their own stakeholders with confidence.

The Great Shift: From 'Certified' to 'Segregated'

The market is rapidly shifting away from RSPO Mass Balance (MB), where certified and non-certified materials are mixed. The demand for RSPO Segregated (SG)—where sustainable material is kept physically separate from farm to factory—is growing at over 20% annually. Why? Because SG is the only model that guarantees the physical product in the drum is 100% from a certified, deforestation-free source. This is crucial, as over 50% of major cosmetic brands now have public targets for 100% Traceability to Mill (TTM).

The 'S' in ESG: Why Smallholders Are Key to a Resilient Chain

True sustainability also has a human element. This is the 'Social' in ESG. Globally, smallholder farmers produce nearly 40% of all palm oil, but they often lack the resources for certification. "A truly sustainable palm chain lifts everyone up," is a guiding principle for our sourcing. The most advanced sustainability programs, now a key requirement for top brands, focus on smallholder inclusion. These initiatives are bringing over 150,000 smallholders into the RSPO system, providing them with training, increasing their yields, and raising their incomes. This isn't charity; it's the creation of an ethical, transparent, and resilient supply chain.

Sources:

  1. Market Trends: RSPO MB vs. SG, oleochemicalsasia.com

  2. RSPO Smallholder Impact Statistics, rspo.org

  3. P&G Corporate Sustainability Reports