Palm (kernel) oil and their derivatives are the basis for ingredients that we, at Henkel, use to manufacture our detergents, cleaners as well as hair and body care products. Its wide use in the consumer goods industry is due to its high versatility, stability, and relative crop yield efficiency. However, when done unsustainably, palm oil cultivation is often associated with large-scale deforestation and social issues.
Our partnership with Solidaridad
At Henkel and Solidaridad, we are working together to support palm oil smallholder farmers and drive sustainable progress through our partnership. Our joint mission is to improve the livelihood and resilience of smallholder farmers, while simultaneously making a positive contribution to the protection of nature and climate.
Today, more than 7 million smallholders around the world make a living from palm (kernel) oil. Around 3.3 million are located in Indonesia and Malaysia, where their holdings represent approximately 40% of the total area for palm oil production. Smallholders are a crucial part of the palm (kernel) oil global value chain and key for managing the risks and opportunities of palm oil.
For this reason, we began partnering with Solidaridad in 2013. The joint mission of Henkel and Solidaridad is to improve the livelihood and resilience of smallholder farmers, while simultaneously making a positive contribution to the protection of nature and climate. Our partnership envisioned a future in which palm kernel oil production is in alignment with nature, provides fair incomes, and protects land rights. We contribute to our shared vision by providing trainings in sustainable agriculture practices, building supportive networks, and advocating for an enabling policy environment. In our projects we have supported the smallholder farmers’ journey to a sustainability certification. Also, we are pioneering digital solutions for smallholder farmers to bring transparency to their palm oil cultivation.
As smallholder farmers, we were glad when Henkel and Solidaridad started the project in our area as, through that project, we gained a vast knowledge which is beneficial for us. Especially, since we are aiming to be certified.
Rafael, Smallholders Palm Oil Farmer, Indonesia
Henkel’s support has been key to equip Nigerian smallholder farmers with skills fostering entrepreneurship in palm oil production, and good agricultural practices. Through this, more women and youths are now able to boost yields and household income through palm oil agribusinesses.
Kenechukwu Onukwube Palm Oil Program Manager, West Africa/Nigeria
Core objectives of our partnership
Henkel and Solidaridad's alliance has amplified the prosperity of palm oil smallholders by working on the ground on projects covering the following three strategic pillars.
Improving smallholder’s livelihoods: enabling pathways to prosperity
For many smallholders, palm (kernel) oil is their lifeline. We collaborate with them to enhance the crop quality which optimizes their palm (kernel) oil yield. This supports their journey to a more sustainable livelihood. Going beyond cultivation, we have supported further initiatives such as trainings in financial literacy in Indonesia and the establishment of four rural service centers in Ghana, where farmers have access to trainings, labor services and affordable farming tools and resources.
Protecting nature and climate: sustainable agriculture realized
The environment is at the heart of our shared vision. Our initiatives span a broad spectrum, from farmer training in Good Agriculture Practices (GAP) to implementing Climate-Smart Agriculture (CSA). Programs like National Initiatives for Sustainable & Climate Smart Oil Palm Smallholders (NISCOPS) in Nigeria and Indonesia focus on innovative replanting, waste reduction, mitigating greenhouse emissions, and ensuring sustainable practices.
Empowering through digital innovation
In the 21st century, data is more than just numbers – it is the backbone of informed decisions. Together, we are pioneering a digital vision to empower farmers. Our extension solution digital tool in Colombia is a beacon of this vision, giving farmers a robust platform for actionable insights. Furthermore, the Farm2Bar initiative boosts the adoption of responsible palm oil transparency in the last mile of the supply chain, interlinking Henkel’s revered Dial brand with certified palm (kernel) oil sourced directly from smallholder farmers.
More than 10 years of sustainable progress
For over a decade, at Henkel and Solidaridad, we have been working together to support palm oil smallholder farmers. In our first project together, we worked on establishing a Sustainable Palm Oil Consortium (PASH) in Honduras, which includes key stakeholders of the national palm oil industry. This increased the adoption of best management practices and paved the way to responsible sourcing certification. Since then, we have collaborated in 11 projects across 7 countries and many smallholder palm oil farmers have benefited from our alliances.
Expanding the partnership
Together, we aim to amplify sustainable palm oil practices with on-going projects in Colombia, Indonesia and Nigeria. We are also excited to implement a new project in Honduras that will build on the partnership’s previous initiatives that helped to establish a nationwide sustainable palm kernel oil platform. Here, the focus will be on the challenges smallholders face such as their inclusion in certification and sustainability initiatives. Emphasis will be placed on recognizing the pivotal role female farmers play in the industry by completing an extensive analysis of female farmers’ contributions. Also, the project will contribute to Honduras’ zero-deforestation palm oil agreement. These initiatives will form the foundation for future strategies, ensuring deforestation-free and socially inclusive palm oil production.
