German chemical and biotech giant BASF has published a report showing progress made by its Care Chemicals division in sourcing renewable raw materials.
Published on 9 July, the company’s Responsible Sourcing Report 2025 focused on the sustainable cultivation of palm kernel oil (PKO), coconut oil, castor oil and bioactives.
In 2025, BASF said it was able to trace about 98% of its global PKO and palm derivative volumes back to the oil mill level, with 79.2% of PKO oil from Roundtable on Sustainable Palm Oil (RSPO)-certified sources.
“We have made significant progress in recent years. At the same time, 2025 presented particular challenges,” said Daniel Wussow, Care Chemicals president.
“Economic and geopolitical uncertainties, combined with limited availability of RSPO-certified PKO, meant that we were unable to fully achieve our sourcing target for these materials.”
As a result, the company said it had adjusted the timeline for palm-based derivatives to 2030.
“The home and personal care industry is increasingly shifting not only towards renewable, but also responsibly sourced raw materials,” the report said.
“At the same time, practical challenges remain … the availability of RSPO-certified palm kernel oil (CSPKO) is currently limited; no short-term relief is expected, which is affecting procurement strategies and market conditions.”
BASF reaffirmed its goal of further advancing responsible sourcing as an integral part of sustainable business practices.
The company said it was committed to preventing deforestation and the conversion of valuable ecosystems – through its Forest Protection Policy – and to protecting human rights.
Engaging smallholder farmers - including in palm oil, coconut and castor oil supply chains - was also a focus, the company said, adding that projects in Asia and Latin America promoted sustainable farming practices and improved working conditions, as well as higher incomes and better living standards.
