Partnering to Achieve Sustainable Production and Sourcing of Palm Oil Derivatives

Stepan uses diverse raw materials to deliver the performance characteristics of our products. We continue to collaborate with our customers and suppliers to support traceability goals and promote best practices related to palm oil. To decrease the impact on the environment and promote human rights, it is essential that palm oil is responsibly sourced and produced. As part of this effort, we joined Action for Sustainable Derivatives, an organization that is dedicated to driving progress for responsible and sustainable palm material production.

With the growing focus on product sustainability and ethical supply chain practices, having better visibility into our supply chains is increasingly important. Stepan has been a long-time member of RSPO, and we hold supply chain certifications for the majority of our sites that handle palm material. To build on this commitment, Stepan Company also partnered with the Action for Sustainable Derivatives (ASD) consortium of chemical companies at the beginning of 2023. ASD members work to promote ethical and sustainable procurement practices in the palm derivative supply chain.

Through ASD, Stepan and other companies in the cosmetics, home and personal care and oleochemical industries collaborate to improve supply chain transparency, monitor risks and drive positive impacts for local communities.  The ultimate purpose is to deliver progress toward goals of, “No Deforestation, No Development on Peat, and No Exploitation of People.” 

ASD builds relationships with communities in which palm oil is sourced and fosters partnerships with local workers to understand challenges and opportunities for change. They also use satellite imagery and other information to inform ASD members about their supply base and potential risks.

At Stepan, we’re using these Sustainability practices to provide innovative chemical solutions for a cleaner, healthier, more energy efficient world.

This is all part of Stepan’s shared value of Integrity, where we pride ourselves on doing the right thing. 

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