Yili Group and Yihai Kerry Lead China's First Shipment of RSPO IP-Certified Sustainable Palm Oil

A major milestone for China’s sustainable palm oil market was achieved with the arrival of the first shipment of RSPO Certified Sustainable Palm Oil (CSPO) at Shanghai port. This groundbreaking shipment was led by Inner Mongolia Yili Industrial Group (Yili Group), one of Asia's top dairy brands and a global industry leader, in collaboration with Yihai Kerry Arawana Holdings Co., Ltd (Yihai Kerry), the largest palm oil trader in China and a member of the RSPO group under Wilmar.

The shipment, comprising 750 tonnes of Certified Sustainable Palm Oil, is the first batch of Yili's palm oil procurement for the 2024-2025 period. It is certified under the Identity Preserved (IP) supply chain model, which ensures that certified palm oil remains separate from conventional supplies throughout the entire supply chain, ensuring traceability and sustainability. This delivery follows the August 2024 RSPO-IP certification of Shanghai Kerry Food Industries under Wilmar, making it the first site in China to achieve this status.

Palm oil is a key ingredient in Yili's ice cream production, with the company using 35,000 tonnes in 2023, of which only 360 tonnes (about 1%) were RSPO-certified under the Mass Balance (MB) model. This new shipment highlights Yili's commitment to expanding its use of RSPO-IP certified palm oil and reinforces its dedication to achieving a deforestation-free supply chain by 2030. A spokesperson from Yili Group expressed pride in this achievement, stating, "This milestone is significant not only for Yili Group but also for the Chinese market as it aligns with China's sustainability commitments."

Yili's 2023 Sustainability Report outlines plans to increase its RSPO-IP Certified palm oil purchases by 50 tonnes annually, targeting 650 tonnes by 2030. The company has also committed to eradicating deforestation in its palm oil, soy, and pulp and paper supply chains by the same year.

Zhang Daopeng, Manager of Public Affairs at Yihai Kerry, emphasized the company's dedication to sustainability, saying, "As the leading palm oil trader in China, Yihai Kerry is committed to best practices in sustainability. Achieving RSPO IP Certification enables us to form stronger partnerships with other industry leaders in pursuit of common sustainability goals."

This historic shipment marks a significant step forward for China, the world’s second-largest palm oil importer, in its commitment to sustainability. The RSPO currently has over 440 members in China, signaling growing engagement in responsible sourcing across the country. The momentum toward sustainable palm oil is expected to accelerate in China, especially following recent agreements like the one Yili signed with Yihai Kerry at RT2024 to build a global green palm oil value chain.

Joseph D'Cruz, CEO of RSPO, lauded the achievement, stating, "This shipment represents a significant advancement in China’s sustainability efforts. It highlights the growing leadership of companies like Yili Group and Yihai Kerry in supporting a responsible palm oil supply chain. RSPO remains committed to collaborating with Chinese businesses to achieve their sustainability goals."

This historic development underscores the collective efforts of industry leaders to align with China's sustainability priorities, marking the start of a new era for sustainable palm oil in the country.