Palma Futuro: Preventing and Reducing Child Labor and Forced Labor in Palm Oil Supply Chains

Palm oil is an ingredient in approximately half of all packaged products bought at supermarkets.. In many parts of the world, it is produced under unacceptable working conditions, including the use of child and forced labor. Plantations are often located in remote areas, where employers may violate the law with impunity; and workers who labor under informal work agreements, and/or are recruited by unscrupulous agents, are vulnerable to debt bondage.

Industry associations and individual companies have established a number of standard-setting social compliance systems to encourage sustainable palm oil production, including certification programs, voluntary initiatives, and mandatory national standards. However, many of these initiatives have comparatively weak or insufficiently monitored and enforced criteria on labor standards relative to other social and environmental criteria.

In South America, Colombia has emerged as the fourth-largest exporter of palm oil worldwide, and Ecuador as the eighth largest, alongside a number of other fast-growing industries in the region. As business practices and norms begin to take hold in these emerging industries, companies are well positioned to establish sustainable social compliance systems that respect international labor standards as a fundamental operating principle. However, some companies face obstacles in adopting and implementing such systems and may require additional support and technical guidance to move forward in their efforts.