Palm oil is one of the world's most widely used ingredients, yet many tourism businesses may not realise just how present it is across their operations. In fact, according to World Wide Fund for Nature (WWF), palm oil is found in nearly 50% of packaged products worldwide. From guest amenities and personal care products to food, beverages and cleaning supplies, palm oil and its derivatives can be found in a wide range of products used daily throughout hotels, restaurants and hospitality facilities. 

As sustainability expectations continue to evolve, organisations are increasingly looking beyond their direct operations and examining the environmental and social impacts embedded within their supply chains. In this context, understanding where palm oil comes from and how it is produced is becoming an important part of responsible procurement.

Responsible sourcing is rarely achieved overnight. The most effective approach is often one of gradual improvement: increasing traceability, engaging suppliers, strengthening procurement criteria and encouraging more sustainable production practices over time. For tourism businesses, this means recognising that sustainability extends beyond the guest experience and into the products, ingredients and materials that support day-to-day operations. 

By prioritising transparency and responsible sourcing, the tourism sector can play an important role in supporting biodiversity protection, reducing deforestation risks and building more resilient supply chains for the future. Because sustainability does not stop at the hotel door. It continues throughout the entire value chain. 

Palm oil is not controversial because of the oil itself or the palm tree. In fact, oil palm is one of the most efficient vegetable oil crops in the world, producing more oil on less land than many alternatives.  

The challenge arises when tropical forests are cleared to make way for large-scale palm plantations. These forests are home to thousands of plant and animal species and store significant amounts of carbon. When they are replaced by monoculture plantations, habitats can be lost, biodiversity can decline and greenhouse gas emissions may increase. A simple way to think about it is this: a tropical forest is like a library filled with millions of different books, while a palm plantation is like replacing that entire library with millions of copies of the same title. Trees remain, but much of the natural diversity that once existed is lost. This is why sustainability discussions around palm oil focus not on the crop itself, but on how and where it is produced.

However, in some regions, palm oil production has been associated with challenges such as:

• Deforestation and habitat loss.

• Impacts on biodiversity and endangered species.

• Greenhouse gas emissions linked to land conversion.

• Social and labour-related risks within supply chains.

• Limited traceability and transparency.

 For businesses committed to sustainability, the challenge is therefore not simply whether palm oil is used, but how it is sourced.

Tourism relies on healthy ecosystems, thriving communities and resilient destinations. As a result, supply chain decisions can have impacts that extend far beyond the products purchased. Palm oil may be present in:

• Soaps, shampoos and guest amenities.

• Cosmetics and spa products.

• Cleaning products and detergents.

• Packaged food products.

• Bakery and confectionery items served across hospitality operations.

 Understanding the origin and sustainability credentials of these products can help organisations better manage environmental and social risks while supporting broader sustainability objectives.

Improving visibility does not require perfect data from day one. A good starting point is simply to begin asking suppliers the right questions.

 This is becoming increasingly relevant in light of the European Union Deforestation Regulation (EUDR), which introduces strict due diligence and traceability requirements for commodities linked to deforestation risk, including palm oil and many of its derivatives.

Under the EUDR, palm oil and palm oil-derived products placed on the European Union (EU) market must not originate from land that has been subject to deforestation or forest degradation after 31 December 2020. Companies placing these products on the market are required to demonstrate the origin of these products through geolocation data and robust due diligence processes. 

Although hotels and hospitality businesses are not producers of palm oil, they play an important role as major purchasers within the supply chain. As a result, they can help drive greater transparency by engaging suppliers and requesting evidence that products containing palm oil meet traceability and deforestation-free sourcing requirements.  

Questions worth discussing with suppliers include:

• Is the palm oil traceable to its source?

• Can suppliers identify the mills or production areas involved?

• Is it covered by recognised certification schemes such as the Roundtable on Sustainable Palm Oil (RSPO)? • Do suppliers have commitments and policies to prevent deforestation?

• Are sustainability claims independently verified?

• Can suppliers demonstrate compliance with relevant due diligence and traceability requirements?

• Do products containing palm oil meet deforestation-free sourcing expectations?

Greater transparency helps organisations make more informed procurement decisions, strengthen supply chain resilience and encourage continuous improvement across the value chain.