Our Natural Raw Materials

Reckitt is committed to No Deforestation, No Peat, and No Exploitation (NDPE) which we deliver in our supply chains through the implementation of our palm oil policy and programme.

Our approach applies to 100% of palm oil sourced directly - Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) in our fats blends, soap noodles and palm derived surfactants volumes. Our palm oil programme comprises of a combination of direct supply chain activity including traceability exercises, satellite monitoring and supplier engagement, alongside collaboration with industry groups and NGO partners to progress industry level challenges that we cannot address alone. Our approach enables us to monitor compliance in our supply chain to our NDPE commitment, and our progress towards Deforestation Conversion Free (DCF) palm by 2030.

Our ambitions have been set with consideration of the commitments of industry groups such as the Consumer Goods Forum (CGF) and Action for Sustainable Derivatives (ASD) together with an understanding of our suppliers’ ongoing progress and the type of palm being supplied. The majority of the palm-based materials we source directly are derivatives (soap noodles and palm derived surfactants).

In support of our NDPE ambition we are working towards our target of 100% RSPO certified palm oil by 2026. The breakdown of RSPO coverage by type is updated annually in our ESG data book. We comply with the RSPO Shared Responsibility (SR) requirements as disclosed in our MyRSPO profile which we update annually.

In support of our NDPE commitment, we monitor our progress to achieving 100% (DCF) annually. We align with the CGF definition of DCF palm, which includes options such as certification and monitoring.

To date, Reckitt has focused on satellite monitoring and traceability exercises to verify DCF palm volumes and identify any non-compliances against our NDPE policy. In 2022, we trialled satellite monitoring for 100% of our fats blends and soap noodle volumes, the majority of which are sourced from Indonesia and Malaysia, and in 2023 we extended our satellite monitoring coverage to our palm derived surfactant portfolio with ASD.

The analysis from our satellite monitoring exercise identifies how each supplier can improve their DCF score enabling us to focus on supporting any suppliers that are not meeting our scorecard performance requirements. Our satellite monitoring approach is aligned with the CGF's Monitoring Minimum Requirements guidelines. 

Progress against our DCF targets can be found in our ESG data book. 

Alongside satellite monitoring we also monitor progress, and report DCF scores through suppliers IRFv6.0 reports. IRF reports capture which refineries in our supply chain are “delivering” against NDPE commitments. We only accept reports that have been independently audited. 

Further information on how IRFv6.0 is included in our DCF reporting scores can be found in our Basis of Reporting.

Our NRM standard is shared with 100% of our fats blends, soap noodles and palm derived surfactant suppliers as part of the contracting process ensuring they are aware of the sourcing standards they are expected to uphold. The standard specifies a requirement for our suppliers to have systems in place to identify, monitor, mitigate and remedy any non-compliances to this policy in their supply chain.

We also engage with our fats blends and soap noodles suppliers directly throughout the year and engage regularly with our surfactant suppliers through ASD.

We have regular meetings with palm oil suppliers, and we review progress against the scorecard performance criteria we have put in place, including targets on traceability, DCF and grievance management. Supplier performance is reviewed regularly by procurement and sustainability teams to ensure we are on track to deliver our NDPE commitments.

To help achieve our NDPE target we have included a target in our supplier scorecard for suppliers to improve volumes verified as deforestation free year-on-year or be on or above their supplier group average for DCF volume. A list of all our palm suppliers can be found in the ESG data book.

Our grievance procedure outlines our approach to grievances, which is aligned to the CGF Monitoring and Reporting Framework (MRF) principles. Our grievance log contains grievances that we have been made aware of directly, this is usually through NGO communications or as identified by satellite monitoring.

We follow up grievances directly with our fats blends and soap noodles suppliers and work collaboratively to address these as members of the Earthworm Grievance Action Group. We take a risk-based approach to grievance management, prioritizing action on the highest risk grievances.

We partner with NGOs and industry groups to implement our palm oil programme and achieve our NDPE targets.

We focus on production landscapes in key sourcing areas for palm oil where significant environmental and social challenges are known to be present, and where there is the potential to achieve positive environmental and socio-economic impacts through collaborative action with a range of stakeholders. For example, landscape programmes in partnership with Earthworm in Riau and Sabah, alongside supplier capacity building initiatives in India.

At an industry level we are active Action for Sustainable Derivatives members, which enables us to improve transparency in a segment of the industry that has complex supply chains. At a global level we are members of the CGF and sit on the Forest Positive Coalition Steering Group. CGF enables us to use leverage to make changes in the industry that we cannot achieve alone and to drive improvements in shared supply chains collectively. We align with the CGF Forest Positive Approach and are taking actions to deliver this collective industry commitment to DCF palm.