BASF wants 80% of suppliers with previously unsatisfactory sustainability results to improve their performance by 2030 — a hard, dated target that frames how the world's largest chemical producer is managing palm kernel derivatives in cosmetics at a time when certified volumes remain scarce and the EU Deforestation Regulation (EUDR) is still unresolved.

"We measure our progress in sustainable sourcing through regular supplier assessments against our sustainability standards and by tracking measurable improvements in ESG performance," said Jutta Stute, Global Sustainability Manager Care Chemicals at BASF. "We also monitor the share of purchasing volumes certified under credible sustainability schemes such as RSPO, Rainforest Alliance, and Success Code, as well as the proportion of deforestation and conversion-free palm supply."

As an Ordinary RSPO Member, BASF reports its progress annually on the RSPO website and in its own Responsible Sourcing Report — a compliance rhythm formulators and procurement teams can track directly.

Why palm kernel is harder than palm oil

Palm kernel derivatives are everywhere in cosmetics: surfactants, glycerine, emulsifiers. But the supply chain behind them is structurally harder to verify than palm oil's. There are fewer crushing facilities producing palm kernel oil than there are palm oil mills, and at those crushers, certified sustainable volumes are mixed with uncertified volumes to reach commercial scale.

Under the Roundtable on Sustainable Palm Oil (RSPO) Mass Balance system, those certified and uncertified volumes are recorded. The physical material in a given drum of surfactant cannot be traced back to a single plantation. What the model guarantees instead is that an equivalent volume of certified sustainable palm oil is produced and accounted for somewhere in the supply chain.

For buyers, that distinction matters. A mass balance claim is an audited volume statement, not a farm-to-formula chain of custody. Brands making origin-level claims on palm-derived ingredients need to know where that line sits before they write it into marketing copy.

The pressure points

BASF and the RSPO acknowledge three converging challenges: economic and geopolitical pressure on the chemical industry, particularly in Europe; limited availability of RSPO Certified palm kernel oil; and unresolved issues in implementing the EUDR.

That second point is the practical constraint for formulators. If certified palm kernel supply is tight, switching a surfactant or emulsifier line to fully certified inputs is not simply a procurement decision — it may require reformulation or acceptance of mass balance claims as the ceiling of what the market can currently verify.

The EUDR question adds regulatory weight. Deforestation-free sourcing rules, when they land, will demand traceability that mass balance alone may not satisfy for certain claims. The unresolved implementation details leave cosmetics suppliers planning against a moving target.

What certification actually delivers

The RSPO argues the trade-off is worth it. Unsustainable palm oil production is linked to biodiversity loss, environmental pollution, and climate change through rainforest deforestation. Sustainably sourced palm oil, by contrast, can offer local producers a route out of poverty.

Through member consensus, RSPO sets environmental and social criteria intended to reduce the negative impacts of palm cultivation on ecosystems and local communities. RSPO Certification is internationally recognised for responsible palm oil production. In cosmetics supply chains, the organisation says, mass balance certification ensures sourcing claims are audited, verified and aligned with sustainability outcomes — delivering results on the ground even when every molecule cannot be traced to its origin.

Other standards bodies reinforce the same position. "Sustainability, transparency and the protection of biodiversity lie at the heart of NATRUE's values. As an RSPO Member, we encourage our label users to adopt sustainable sourcing practices and use traceable ingredients, ensuring that natural cosmetic products contribute positively to the environment and communities," said Dr Mark Smith, Director General of NATRUE.

For natural cosmetics brands holding or seeking NATRUE labelling, that signal suggests sustainable sourcing expectations will tighten rather than loosen.

Tools and timelines

Technology is part of the answer. RSPO's prisma platform lets brands demonstrate compliance, monitor certified volumes and communicate sourcing commitments with greater clarity — evidence infrastructure for claims that regulators and retailers increasingly ask to see substantiated.

The next data points to watch are concrete: BASF's next Responsible Sourcing Report and RSPO annual disclosure will show movement toward the 2030 supplier target, while the pace of EUDR implementation will determine whether mass balance remains sufficient for European deforestation-free claims.