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 No Deforestation, No Peat, and No Exploitation (NDPE) commitment, and our progress towards achieving this commitment for fats blends by 2025, and palm derivatives 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 met our 2023 target for 80% of palm oil sourced directly to be certified through RSPO supply chains. We are on track to deliver 100% 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.

We work directly with suppliers and partners to improve the transparency and traceability of our palm oil supply chain.

Traceability is the foundation that enables us to identify risks such as deforestation in our supply chains. We complete an annual traceability exercise for our fats blends, soap noodle, and palm derived surfactant suppliers. The results from these exercises demonstrate we are improving supply chain visibility year on year. Having achieved a high rate of traceability to plantation for fats blends, we are focusing on increasing traceability for soap noodles and palm derived surfactants – which can be more challenging given the longer, more complex supply chains.

Further information on traceability can be found in our ESG data book and mill lists.

In support of our NDPE commitment, we monitor our progress to achieving 100% Deforestation Conversion Free (DCF) annually. We align with the CGF definition of DCF palm, which include 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.

The analysis from our satellite monitoring exercise identifies how each supplier can improve their no deforestation score enabling us to focus on supporting suppliers that are not meeting our scorecard performance requirements. Our satellite monitoring approach is aligned with the CGF’s Monitoring Minimum Requirements guidelines.

In 2023, this supply chain monitoring identified that the percentage of fats blends and soap noodle palm oil volumes linked to deforestation and peat destruction remains low.  Further information can be found in our ESG data book and below under the ‘grievance resolution’ heading. 

Alongside satellite monitoring we also monitor progress in our supply chain at mill level through suppliers IRF reports. IRF reports capture the number of mills in our supply chain 'delivering' against NDPE commitments or working towards these. In 2023, the large majority of mills in our Fat Blends and Soap Noodle supply chains that submitted IRF reports were “delivering NDPE”. Further information on IRF scores in our supply chain can be found in our ESG data book.

Our NRM standard is shared with 100% of our fats blends, soap noodle 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 100% of our fats blends and soap noodles suppliers directly throughout the year and engage regularly with our surfactant suppliers through ASD. We have over 200 surfactant suppliers and the ASD annual NDV satellite monitoring exercise now covers 95% of the supplier portfolio. Some of our suppliers are also active ASD members, these members supply around a quarter of our surfactant volume. For more information on how we are engaging tier two suppliers please see the section on supplier collaboration below.

A list of all fats blends, soap noodles, and the palm derived surfactant suppliers can be found in the ESG data book.

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

To help achieve our NDPE target of 2030 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. In 2023 we met our target for 80% of our fats blends and soap noodle suppliers achieving this. We have plans in place to keep us on track for suppliers to achieve our target of 100% by 2030, enabling us to deliver on our NDPE commitment.

Supplier capacity building: Alongside our scorecard we ask selected suppliers to complete the Earthworm Foundation’s (Earthworm) assessments of the systems they have in place to implement NDPE. Engagement for Policy Implementation (EPI), or EPI Lite, is a self-assessment of supplier NDPE management systems.  You can read more about our collaboration with India suppliers following their EPI Lite assessment in our 2023 sustainability report.

Supplier collaboration:  In 2023 we extended supplier engagement to tier two suppliers after identifying that a small number of these were supplying our direct suppliers, covering over 20% of our annual volume. In collaboration with Earthworm, we are now engaging our tier one and tier two suppliers together to improve supply chain transparency.  

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 as part of our NDV satellite monitoring analysis.

We follow up grievances directly with our fats blends and soap noodle suppliers and work collaboratively to address these as members of the Earthworm Grievance Action Group. For palm derived surfactants we support the ASD grievance process and work with suppliers directly as necessary. We take a risk-based approach to grievance management, prioritising action on the highest risk grievances.  

We partner with NGOs and industry groups to implement our palm oil programme and achieve our NDPE targets. One example of this is our partnership with Earthworm on our NDV pathway for fats blend and soap noodles, supplier capacity building, and landscape programmes.

 For derivatives we are active ASD members which enables us to improve transparency in a segment of the industry that has long, complex supply chains. By participating in the development of the ASD workstreams, including traceability and satellite monitoring, we encourage our own suppliers, and the broader industry to progress.

At a local level we develop projects to address specific challenges. For example, our project with Earthworm and I-SPOC to build the capacity of India palm oil traders to implement NDPE in our shared supply chains. You can read more about this in our 2023 sustainability report.  

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.

As part of our palm oil programme, we seek to address challenges in collaboration with others, one way we do this is supporting NGO landscape programmes. Production landscapes prioritised for focus are key sourcing areas for palm oil, where significant environmental and social challenges are known to be present, and where there is good potential to achieve positive environmental and socio-economic impacts through collaborative action with a range of stakeholders.

In 2024 Reckitt continued to support Earthworm’s landscape programmes in Riau, Indonesia and Sabah, Malaysia in collaboration with other companies and our suppliers. We also began supporting a landscape programme led by WWF in Central Kalimantan, Indonesia.  Combined, hse cover 23% of our mills by volume (based on 2023 traceability data). Addressing deforestation risks are a key part of these initiatives, including implementing effective on the ground monitoring and response systems. Monitoring continues to identify forest loss in specific hotspots and teams work with local communities to ensure any palm oil development ensures sustainable land use in compliance with the local Malaysian Sustainable Palm Oil Certification (MSPO) standard.

Our Natural Raw Material (NRM) Sourcing Standard outlines our sourcing requirements which apply to paper and board suppliers. These requirements are aligned to the Consumer Goods Forum (CGF) Forest Positive Approach and include our commitment to recycled and certified material.  Our NRM Sourcing Standard is shared with 100% of paper and board suppliers as part of the contracting process, ensuring that they are aware of the requirements they are expected to uphold.  

We aim for 100% of paper and board to be either from recycled sources or FSC, PEFC or SFI certified by 2025, for both direct suppliers and co-packers – in 2024 this was 99%. 

A key part of our approach is collaborating with others to address risks and realise opportunities we cannot achieve alone. This includes our membership of the Consumer Goods Forum (CGF) Forest Positive Coalition (FPC) and our ongoing support to landscape programme initiatives. Further information on this is available in our annual report. As members of the Consumer Goods Forum (CGF) Forest Positive Coalition (FPC) we align our approach and reporting to the FPC’s definition of Deforestation and Conversion Free (DCF). The FPC methodology classifies both recycled, and FSC certified paper, pulp and fibre-based packaging as DCF. The other certifications in our target (PEFC/SFI) are also classified as DCF with additional controls in place, such as remote or in person monitoring.

Further information including a list of suppliers, breakdown of certification and countries of origin can be found in the ESG data book.

As a buyer of paper and board packaging material we must have effective due diligence in place to ensure that the sourcing of pulp, paper and fibre-based packaging (PPP) does not contribute to deforestation, forest degradation or conversion.

Responsible forest management can help increase the value of standing forests and help protect them from illegal logging, conversion to other uses or other non-sustainable activities. The industry has made good progress, including through the implementation of certification schemes. In areas where risks remain, engagement beyond certification is needed to tackle underlying governance issues and drive change.

Annually, we engage with all our direct suppliers and co-packers to identify if the material provided to Reckitt is recycled or certified (FSC/PEFC/SFI) and therefore is compliant with our policy. Details such as chain of custody certificate number, origin of material and supplier sustainability commitments are provided.

This supplier information helps us to identify compliance with our NRM Sourcing Standard, alongside alignment to the Consumer Goods Forum’s (CGF) DCF definition. As 99% of our volume is from recycled or certified sources, we are focused on compliance for the remaining 1%, alongside mapping supplier monitoring for certifications where this is needed to achieve DCF status for all our certified volumes.

The sourcing requirements outlined in our Natural Raw Material (NRM) Sourcing Standard apply to our soy suppliers. These include traceability and the implementation of our commitment to no deforestation or conversion of legally protected natural areas and important landscapes. Our NRM sourcing standard is aligned with the Consumer Goods Forum’s (CGF) Forest Positive Approach.

Our NRM Sourcing Standard is shared with 100% of direct soy suppliers as part of the contracting process to ensure they are aware of the sourcing standards that we expect them to uphold in our shared supply chain. 

We work collaboratively with suppliers to implement the principles in our sourcing standard, including traceability. Traceability enables us to identify and act on any potential risks common to soy, including deforestation or land conversation. Further information, including our supplier list can be found in our ESG data book.

The majority of the soy we source directly comes from the US which is low risk for deforestation, but does have conversion risk in some areas, in particular across the Great Plains. We sourced from nine  suppliers in 2024, primarily for our nutrition products, and have engaged our suppliers to verify if soy is sourced from the Great Plains region. More information is available in our ESG data book where we report in line with CGF requirement that US volumes be classified as “no DCF solutions currently available” and await an aligned industry approach to enable us to formally verify our US sourced soy as low risk for conversion.