A.T. Kearney will develop a business case for the use of palm oil alternatives with the objective of minimizing negative impact on current palm oil producers and regions. These solutions will be validated and reviewed by an oversight committee, established through this commitment in partnership with leading global consumer goods companies. In addition, A.T. Kearney will design the operating model and governance structure for a global alliance that will enable sustainable development and commercialization of palm oil alternatives through company commitments which will span from product development to supply chain and business investments. A.T. Kearney will work with CGI to invite members to this alliance. A.T. Kearney will commit a team of dedicated consultants in a 'clean room' environment to analyze data as well as leverage subject matter experts among its partners globally.
Step 1: Set up an Oversight Committee (Weeks 1 - 10)
1.1 Identify key members of the Oversight Committee
1.2 Draft invitation letters for targeted committee members
1.3 Identify stakeholders who should extend invitations and invite target members
1.4 Create formal onboarding documents and confidentiality agreements for committee members
Step 2a: Establish a 'Clean Room' (Weeks 7 - 12)
2a.1 Setup a 'Clean Room' for data analyses
2a.2 Issue data request to committee members
2a.3 Collect data and build baseline for business case
Step 2b: Analyze supply and demand trends (Weeks 4 - 10)
2b.1 Identify feasible alternatives to Palm Oil
2b.2 Map the value chain for alternatives and understand drivers of demand / supply and key constraints
2b.3 Assess supply and demand trends for alternatives
2b.4 Develop future scenarios and analyze implications
Step 2c: Create a business case for alternatives (Weeks 10 - 22)
2c.1 Analyze data from participating organizations and external sources
2c.2 Calculate cost of moving from Palm Oil to alternatives
2c.3 Understand financial, social and environmental impacts of alternatives
2c.4 Review business case with alliance and update accordingly
Step 3: Build Alliance (Weeks 10 - Ongoing)
3.1 Define scope and objectives of the alliance
3.2 Determine membership requirements
3.3 Engage legal counsel and develop governance structure
3.4 Invite stakeholders to join alliance
Step 4: Develop Long Term Roadmap (Weeks 21 - 24)
4.1 Develop strategy to boost production of alternatives
4.2 Create long term roadmap for replacing Palm Oil with alternatives
4.3 Create governance structure for organization to promote growth and use of sustainable alternatives
The global demand and use of palm oil is driving deforestation by creating plantations, particularly in Malaysia. The destruction of these tropical rainforests continues to impact biodiversity and climate change in the region. Endangered species like the orangutan and tiger continue to be threatened as demand for palm oil by consumer packaged goods companies grows.
Whilst many consumer products companies have made important changes to reduce their use of palm oil, more needs to be done. Through this commitment, A.T. Kearney seeks to address the environmental, health and economic issues with palm oil by finding sustainable alternatives for fast-moving consumer goods (FMCG) companies and other large palm oil users.
SEEKING: Potential partners to create a global alliance that enables the development and adoption of alternatives to palm oil. These would include global, fast moving consumer goods (such as PepsiCo, Kraft, Unilever, etc.), personal care companies (P&G, L'Oreal, Unilever, etc.), vegetable oil producers and processors (like Cargill), and international associations and NGOs (like Oxfam, IFC, etc.).