Grain News

Kellogg Company Helps Fund Sustainable Palm Oil Production Through Purchasing GreenPalm Certificates

Date Posted: March 4, 2011

Battle Creek, MI—Kellogg Company (NYSE: K) announced March 3 that it is helping fund sustainable palm oil production through purchasing GreenPalm certificates covering 100 percent of its global palm oil use.

GreenPalm estimates that only six percent of the current global supply of palm oil is sustainably grown.

The Roundtable on Sustainable Palm Oil (RSPO) continues to work toward the development of a consistent and sufficient supply of segregated, sustainably grown palm oil, however, it is currently not available outside of Europe and the form of palm oil Kellogg uses in Europe is not available in a segregated, sustainable supply.

"As a socially responsible company, Kellogg is committed to conducting our business in a way that reduces our environmental impact," said Celeste A. Clark, Ph.D., Chief Sustainability Officer, Kellogg Company.

"While palm oil is a very small percentage* of our total ingredients, as a socially responsible company, concerns about the sustainable production of palm oil are clearly on our radar screen."

Kellogg Company intends to purchase sustainable palm oil once a segregated palm oil supply is available that is financially and logistically feasible.

In the meantime, the Company is helping to reduce deforestation from palm oil production through its support of GreenPalm certificates.

"World Wildlife Fund applauds Kellogg Company's decision to purchase GreenPalm certificates for all of its global palm oil usage," said Jason W. Clay, Ph.D., Senior Vice President, World Wildlife Fund.

"By supporting sustainable production in this way, Kellogg is demonstrating just the sort of responsible action that we want others to take. As the first in the U.S. food industry to take this step, they're setting an example for others to follow."

"We are committed to conducting our business in a way that reduces our environmental impact and will continue diligently working with others to explore solutions to this global issue," said Clark.

"We intend to continue this commitment until we are able to purchase a segregated supply of sustainably grown palm oil."

Kellogg is also:

• Encouraging its blended palm oil suppliers to continue to increase the percentage of sustainable palm oil in the supplies they purchase, as the available supply increases.

• Requiring its vendor partners to commit to reducing their impact on the environment through it Supplier Code of Conduct.

• Supporting the Consumer Goods Forum pledge to help achieve zero net deforestation by 2020.

For more information, call 905-290-5416.

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