Natural Habitats Impact Report 2021-2022

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Natural Habitats

Impact Report 2021/2022

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Natural Habitats

Impact Report 2021/2022

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INTRODUCTION

WELCOME TO OUR WORLD Palm oil is used in half of the food and personal care products found in supermarkets. As a product it’s in high demand. Currently accounting for more than 40% of vegetable oil production, with global demand expected to grow rapidly between now and 2050. In developing countries, it can offer numerous economic opportunities. However, palm oil supply chains face enormous problems and challenges. Palm oil production has been characterized by deforestation, habitat destruction, soil degradation, exploitation, negative impacts on communities, and below living incomes for farmers and workers. To counteract these negative impacts, the Roundtable on Sustainable Palm Oil (RSPO), as well as other initiatives, were created to promote and certify good production practices. Now, many industry players have made commitments to eradicate deforestation and exploitation from their supply chains. However, much more still needs to be done. While the demand for responsible and ethically produced palm oil increases, most of the sustainable certified palm oil supply on the market still isn’t complying with the high standards that a growing number of consumers, retailers and manufacturers are setting. In 2009, we founded Natural Habitats to raise the bar. Then in 2016, we launched Palm Done Right to change the conversation around palm oil.

MAKING OUR PROMISE POSSIBLE Natural Habitats was founded on the belief that palm oil can be done right. Over time, we have steadily built our business from a small palm plantation in Esmeraldas, Ecuador, to a multinational business which supplies the organic markets in North America and Europe. Even though we have faced challenges along the way, our customers inspire and support us to continue on our path of progress. Though we are a small player in a very large, commoditized industry, we believe we can lead this change. By delivering on our promises every day, we will show that palm oil can be a force for good.

DELIVERING ON OUR MISSION Palm Done Right is based on our belief that producing palm in a better, more sustainable way is possible. We envision a future in which farmers, workers, and their communities are empowered. Where value chain partners connect and collaborate. And where organic agriculture becomes the answer to sustainable livelihoods and healthy, resilient ecosystems. That’s why we aim to bring long term solutions that create value for our employees, farmers, communities, business partners, and society as a whole. Right now, 19% of global palm oil is RSPO certified. While this is a good starting point, certification is not enough to change an industry. We believe higher sustainability norms can be achieved by using organic practices, working in partnership with farmers and communities, and collaborating extensively with partners throughout the value chain.

Our social and inclusive business model revolves around creating direct relationships with oil palm farmers in our network. Once these are established, we can provide farmers with training in organic agricultural practices, and added benefits such as agronomic advice, environmental education, biodiversity programs, benefits sharing, and community support. Through this, we can have a measurable impact on the environment, and the social and economic wellbeing of the farmers, workers and communities in our network. Our approach means we can rest assured that the palm oil we process and sell is fully traceable and adheres to multiple sustainability and ethical standards. Because of this, our manufacturers, retailers and consumers can trust that the products they love have been done right.

100% Organic is possible Fully traceable is possible Deforestation-free is possible Wildlife friendly is possible Fair and social is possible

We truly believe that sustainable palm oil is possible, and have created this report to show you how.

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