Sourcing raw materials responsibly

Our approach to palm oil sets out the tools we use to monitor No Deforestation, No Peat, and No Exploitation (NDPE), our 2023 performance and future goals and commitments to deliver NDPE by 2030. These have been set with consideration of targets set by industry groups such as the Consumer Goods Forum, Action for Sustainable Derivatives and with consideration of supplier progress. Over [90%] of our palm oil volume sourced are derivatives (soap noodles and palm derived surfactants), which involve longer, more complex supply chains than fats blends. Our fats blends target is aligned with the CGF Deforestation Conversion Free (DCF) target of 2025. Progress against planned targets is reviewed annually with procurement and updated as necessary, to ensure these are fully resourced.

Further information on our approach can be found in our sustainability report.

This covered approximately [90% of our palm oil volumes sourced in 2023] and No Deforestation Verification (NDV). On fats blends and soap noodle supply chains, we focus on Malaysia and Indonesia as the majority [100%)] of our volume is sourced from these countries. In 2023, we now have [100%] satellite monitoring coverage for [100%] of the fats blends and soap noodle volumes sourced in our supply chains, and for palm derived surfactants, in 2022, [89%] of volume sourced is covered by deforestation and peat monitoring, which is associated with palm oil from Indonesia and Malaysia. Our satellite monitoring is aligned with the Consumer Goods Forum’s  Monitoring Minimum Requirements definition, and these efforts will help us to deliver our commitment to NDPE by 2025 for fats blends, and by 2030 for soap noodles and palm derived surfactants.

Satellite monitoring helps us to identify and verify potential deforestation incidents in our supply chain through annual No Deforestation Verification (NDV) and identify where grievance investigations are necessary. Our goal is to see improvement in our supplier NDV scores year on year, and are on or above the group average by 2025. This included 65% of suppliers in 2023, with a score of 72%. Our target is 75% by 2025, and 100% by 2030. In order to achieve NDV, traceability is fundamental. This is why we are also targeting 100% traceability to plantation.

In 2023, our NDV process identified that the percentage of fats blends and soap noodle palm oil volumes linked to deforestation and peat destruction remains low XX% fats blends volume and XX% soap noodle volume. [7.6]% of Reckitt total volume was linked to deforestation grievances, associated with around ([300 mills]). Progress on traceability, and any NDPE grievances are followed up in regular meetings with our suppliers.

In 2023 we continued to implement our palm supplier performance scorecard, which is aligned to the CGF’s Forest Positives approach. This approach, used with our fats blends and soap noodle suppliers includes targets on traceability, NDV and grievances and scores are discussed with suppliers in our regular meetings.

This provide us with an understanding of the management systems our direct suppliers use to implement NDPE in their supply chains. Since 2022, [56]% of tier one suppliers, and[12]% of tier two suppliers by volume have completed EPI. In 2023, we requested four suppliers (Wilmar, IOI, Modulus and Raj) to complete EPI with the Earthworm Foundation, covering [53%] of the fats blends and soap noodle volumes we source by volume. As follow up to the EPI analysis, in 2023 we worked with our India based suppliers to build capability to address NDPE risks, and aim to continue the implementation of improvement action plans including NDPE policies, tier 2 supplier engagement and development of grievance procedures.

This is a self-assessment tool that categorises supplier palm oil volumes based on risk of deforestation/peat exploitation. In 2022, 54% of fats blends and soap noodles suppliers (6 out of 11), which covers around 60% of the total volume palm oil. Of the six fats blends suppliers, 100% submitted IRF reports, representing 100% of associated fats blends volume. The results showed that 85% of the volume in the the ‘delivering’ category for No Deforestation at Production Level, 7% was in the ‘taking action’ category, and 7% in the ‘no action’ category. In addition, three soap noodle suppliers submitted IRF reports, which represented 56% of associated soap noodle volumes. 50% of the volume was in the ‘delivering’ category, 26% in the ‘taking action’ category and 22% in the ‘no action’ category. Our target is to increase each year the number of suppliers from which IRF profiles are received and the % Reckitt volume covered by IRF profiles. 

All IRF data is from 2022 (2023 not available yet)
One supplier provided IRF specific score for our SG supply chain, the rest are all generic scores for their full supply chain

% meeting FP goal = % Delivering score (calculated as average delivering score for forests and delivering score for peat per supplier
Making progress % = average of taking action + progressing scores for forests & taking action + progressing scores for peat
Not compliant = not delivering score for in scope suppliers

Scores are weighted by volume (i.e. a supplier who has a 100% score, but only supplies 10% of our volume contribute 10% to our score) and calculated agains the total volume represented by suppliers who submitted IRF reports.

We are committed to supporting the Roundtable on Sustainable Palm Oil (RSPO), and we committed to purchase 80% of palm oil in support of the RSPO programme by 2023, which we achieved. We do this by using a combination of physically segregated, mass balance and RSPO credits. We have also committed to purchase 100% of directly sourced palm oil in support of the RSPO programme by 2026.

Reckitt has continued to support the Earthworm Foundations landscape programmes in Riau, Indonesia and Sabah, Malaysia in 2023 in collaboration with other companies that include suppliers. These cover [XX%] of our mills (number or volume - waiting on EF). On the ground monitoring and response systems are a key part of these initiatives. For example, in Sabah there has been a 22% reduction in deforestation by companies and communities between 2020 and 2023. Monitoring continues to identify forest loss in specific hotspots and continues to work with local communities to ensure any palm oil development promotes sustainable land use in compliance with the local Malaysian Sustainable Palm Oil Certification (MSPO) standard.

As well as our work with ASD, CGF, and the Earthworm Foundation, we support local initiatives such as Sustainable Palm Oil Coalition for India (I-SPOC) and in 2023 we also joined the Earthworm Grievance collaboration group which brings together companies to work collaboratively to address deforestation identified in shared supply chains.

Our NRM standard is shared with 100% of our suppliers are 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 have sustainability criteria embedded into supplier performance scorecards. This includes targets on traceability, NDV and grievances and scores are discussed with suppliers in our regular meetings, [which we have been assessing in 2023].

 We also engage with 100% of our fats blends and soap noodles suppliers directly, and engage regularly with many of our surfactant suppliers through Action for Sustainable Derivatives (ASD). This includes the 11% of our suppliers that are also ASD members that represent [18%] of our palm derived surfactant volume. Working with our suppliers through ASD enables us to improve performance across the industry, as well as for our direct suppliers. For suppliers this approach works well as it is more efficient and reduces individual customer requests for similar information. By participating in the development of the ASD workstreams, including traceability, we encourage our own suppliers, and the broader industry to progress.

In 2023 we identified tier 2 suppliers which had low traceability and NDV scores and were supplying a number of our direct suppliers, representing 31% of our volume. In collaboration with direct suppliers, and Earthworm who lead our traceability exercise we are engaging these tier 2 suppliers collaboratively in order to work towards meeting a forest positive approach.

Our grievance resolution procedure outlines our approach which is in line with the MRF principles of verification, investigation, short & medium/long term responses. We publicly log and respond to the grievances raised. This log contains all grievances Reckitt has been made aware of directly – this is usually through NGO engagement, public NGO reports, or NDPE grievances identified by our NGO partner Earthworm who lead on our traceability and NDV exercises. Progress on addressing grievances is updated each time the log is published. In 2023, we have progressed XX number of grievances (XX, 2022).

Progress on addressing grievances is updated each time the log is published. We prioritise the highest risk grievances as these have the largest negative impact and/or pose the greatest risk to our supply chains. Grievances are followed up directly with our fats blends and soap noodle suppliers. For our palm derived surfactant suppliers, we engage through the ASD grievance process, or directly as necessary. Our approach is aligned with the Consumer Goods Forum Forest Positives Coalition Monitoring and Response Framework (MRF).

In 2023 we collaborated with others to address identified grievances in line with the Monitoring and Response Framework (MRF). EF as part of their grievance action group, and ASDs grievance workstream.

A list of our direct suppliers of fats blends and soap noodles can be found in our ESG data book. For palm derived surfactants the list below represents the priority suppliers who supply around [90%] of the surfactant volume supplied to Reckitt.

Our Natural Raw Material (NRM) standard outlines our sourcing requirements which apply to soy suppliers. These include traceability, the implementation of a forest positives approach and the effective identification and management of grievances. The link to this standard is in the Policies and Commitments section above.

Our NRM standard is shared with 100% of soy suppliers are 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.

Our soy derivative origins by volume are the US (XX%), mixed origins (XX%, which include Europe, InIndia, USA, Canada, China, Argentina, Taiwan,  Brazil and China (XX%). XX% are from unknown origins (,and we are working to close the gap.

Knowing this helps us to identity whether the soy we source is deforestation and conversion free (DCF). In 2023, XX% of our soy sourced was DCF (2022, XX%), XX% identified from a negligible risk origin (2022, XX%)which means that… (align FPC guidance….traceable?), % DCF certified (2022, XX%) and % DCF monitored (2022, XX%). In 2024, we have been progressing (…add actions) to increase the SCF soy that we source.

Our seven soy derivatives suppliers are Sternchemie, Oleofinos, PGEO Edible Oils, Cargill, AAK, Stratas and ADM, and our total volume was XX mt in 2023. Volume and origin information is provided by suppliers. Where we purchase soy derivatives suppliers have provided us with the volume of soy in the final product to include in our total volume calculation. 

Our Natural Raw Material (NRM) standard outlines our sourcing requirements which apply to paper and board suppliers. These include traceability and  the implementation of a forest positives approach.  Our NRM standard is shared with 100% paper and board 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.

Our commitment is 100% of paper and board to either be recycled or to be FSC, PEFC or SFI certified by 2025, for both direct suppliers and copackers. We are pleased with our progress, as in 2023, we maintained out performance of XX% recycled or certified from 2022. We aim to tackle the 0.5% non-compliance in 2024. To do this, we are exploring options to move towards an automated reporting process and improve supplier engagement. In 2023, 99% of paper and board came from recycled or certified sources, 48% from recycled, 35% from mixed, and 16% was from virgin sources.  Of the virgin sources, 46% (2022, 46%)  was from certified (FSC 71%, PEFC 2%, SFI 2%), 51% (46%, 2022), was from responsible sources (FSC 37%, PEFC 6%, SFI 10%), 4% was from uncertified sources (8%, 2022). Certified sources have full chain of custody, and responsible sources have partial chain of custody.

Annually, we engage with our suppliers through a Request for to identify if the materials provided to Reckitt is recycled/certified (FSC/PEFC/SFI accepted), the weight of recycled/certified, chain of custody certificate number, weight which isn’t recycled/certified, origin of material, sustainability commitments, % turnover allocated to sustainability initiative, deforestation cut-off date, systems in place monitor remaining natural vegetation and respond to new deforestation in supply chain. These results help us to identity compliance with our commitments, and the Consumer goods Forum’s  (CGF) Forest Positive Approach and % non-compliant. We work with non-compliant suppliers to move them towards using complaint material.

We found that in 2023, 97% of our paper and board is traceable to country of origin, and 15%* of our paper and board is traceable to high risk origins (2022, XX%), sing the CGF roadmap to help us to define ‘high risk’.

* high risk region split: China 8%, Indonesia 2%, Russia 0%, Brazil 5%, Laos 0%, Myanmar 0%, DRC  0%, Gabon 0%, Honduras 0%, Cambodia 0%, Papua New Guinea 0%, Malaysia 1%, Bulgaria 0%, Ecuador 0.1%

Our list of direct and (copacker?) paper and board suppliers can be found in our ESG data book. We also request information from suppliers on their importance to sustainability, of which, 74% of our suppliers by volume identify that sustainability as 'very important' to them.