On Palm Oil

D&L is cognizant of the various environmental and social issues associated with palm oil. It is mainly used for the company’s food ingredients segment. While coconut oil is abundant in the Philippines, the country’s cooking oil market has traditionally been dominated by palm oil. This is because palm oil is about 30-50% cheaper than coconut oil, hence, why many of D&L’s food ingredients customers are still partial to using palm oil, despite the public pressure to prohibit or dissociate with it.

In line with D&L’s view on sustainability and in conjunction with consumer preferences that are developing globally, the company’s product portfolio offers a wide range of palm alternatives. In communications with customers, the company finds that they are often well-versed in sustainability issues but are hesitant to switch due to cost considerations. The company normally suggests and presents better or more sustainable alternatives to customers, but is not in a position to forcefully impose these changes. D&L can, however, address any issues from switching to sustainable sources and adjust formulation to mitigate any impact on the taste or sensory qualities of the product.

With vegetable oils accounting for the majority of D&L’s raw materials, the company is conscious of the fact that supporting initiatives that lead to a more sustainable future for the planet is consistent with its goal of achieving sustainable long-term growth.

While D&L’s RSPO-certified palm oil only accounts for less than 10% of its total requirements, it is important to highlight that another 70% are traceable back to the plantation. While not necessarily requiring RSPO certification, many of D&L’s multinational customers require full traceability of the palm oil they use, making sure that the source plantation is not involved in any deforestation and illegal activities. In many cases, these customers provide a list of accredited sustainable plantations where D&L can source the crude palm oil it refines and supplies to them.

RSPO-certified palm oil normally commands a premium. This is the main reason why many of our customers still opt to buy either the traceable palm oil or just the regular palm oil.

Where the Company Sees the Future

Internally, D&L targets 100% RSPO by 2025. It should be pointed out, however, that this goal is highly dependent on the readiness of the market to switch to more expensive but sustainably-sourced palm oil. The company believes the more realistic scenario is 100% traceability in the near to medium term.

D&L’s involvement with palm is similar to its proactive activities related to the replacement of Chlorofluorocarbons (CFC gases) which used to be the propellant for aerosols, lead and cadmium in chemicals, artificial transfat, salt, and sugar in food—where the company, instead of waiting for the market, promoted among its clients an early shift to more sustainable solutions.

D&L’s Influence

While D&L has limited control on its food customers who are much more price sensitive, the company’s influence is more pronounced in its Oleochemicals business. Under Chemrez, the company manufactures coconut-based oleochemicals used as active ingredients for many personal and home care products. These oleochemicals are natural and sustainable direct substitutes for petroleum-based or palm-based active ingredients. Chemrez handles no palm and actively promotes sustainable and natural coconut-based raw materials especially in the export market.

Laurin CocoMCT® is a medium chain triglyceride derived from coconut oil. It does not contain palm or other oil products. It is used for various applications, including pharmaceuticals, food, and beverage products, as well as carriers for flavors, colors, and vitamins. It provides a natural energy boost to muscles during strenuous physical workouts and strengthens the immune system thanks to its natural antiviral, antibacterial, and antifungal properties. CocoMCT® is available in various formats including oil, water soluble, and powder.

Liquid Coconut Oil is enriched with medium chain triglycerides, and it remains in a liquid state at temperatures up to 5 degrees Celsius. It is used in food and beverage applications and as carriers for flavors, colors, and vitamins. treat various skin conditions such as diaper rash, chapped lips, dry hands, and elbows. It also locks in moisture, keeping the skin feeling soft, smooth, and healthy.

Personal & Home Care 

Cocolatum is an all-natural, petroleum-free, silicone-free solution that provides maximum protection and hydration for the skin. It has been clinically tested to be safe and gentle, and it helps processes and yields.

Glyzer CB Coconut Butter is a specially formulated product that instantly melts on the skin, creating a protective layer that seals in moisture. Enriched with powerful Lauric acid as an antibacterial agent, it helps protect the skin from environmental aggressors. Enjoy long-lasting hydration and superior protection with Glyzer CB Coconut Butter.

Glyzer CT is a versatile, light coconut moisturizer that creates a protective layer on the skin to keep it hydrated while preventing water loss. This silicone free product has been clinically tested and proven to be safe and gentle for all skin types. Additionally, it feels light and non-greasy when applied to the skin.

NatPro is a natural preservative that can be used for cosmetics applications. This active antimicrobial has a broad spectrum of activity and helps maintain the quality and stability of your products without altering the color or scent of the final product.

Sufravon is a coconut soap that offers a natural, biodegradable, and non-toxic alternative to petroleum-derived surfactants. This coco surfactant is gentle on the skin and easy to rinse, which saves time, energy, and money. Enjoy the power of nature with Sufravon, which is compatible with a wide range of wash applications for personal care and home care products.