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MP Evans CEO on Halving Carbon Emissions While Growing Sustainable Palm Oil

MP Evans CEO on Halving Carbon Emissions While Growing Sustainable Palm Oil

Palm oil producer reports 36% emissions cut alongside record sustainable output

MP Evans Group has published new sustainability data showing a 36% reduction in total emissions from its 2021 baseline. At the same time, the Indonesia-focused palm oil producer reported record volumes of certified sustainable crude palm oil (CPO). Chief executive Matthew Coulson said the company is "proud of what we have achieved so far" in its latest reporting cycle.

The developments matter because they present a relatively uncommon narrative in commodity agriculture. Most producers face a perceived trade-off between growth and emissions reduction. However, MP Evans is working to demonstrate that higher sustainable output and measurable climate performance can progress together.

For UK businesses that buy palm oil derivatives, track supply chain sustainability, or face tender requirements on responsible sourcing, these figures offer a useful case study. They also illustrate how sector-specific frameworks such as Task Force on Climate-related Financial Disclosures (TCFD) and CDP reporting are becoming standard expectations for commodity producers.

Record certified sustainable palm oil volumes in 2025

In 2025, MP Evans reported just over 275,000 tonnes of certified sustainable CPO. This represents 80% of production in group-owned mills and 76% of overall group output. The company operates exclusively in Indonesia, where it has positioned sustainability as a core business function rather than a compliance afterthought.

During the first half of 2025 alone, the company produced 131,300 tonnes of certified sustainable CPO. This accounted for 76% of total output in that period. The certification provides traceability and assurance that the palm oil meets recognized environmental and social standards.

Palm oil certification schemes typically cover deforestation, peatland protection, labour standards, and community engagement. For businesses that need to demonstrate responsible sourcing, certified volumes matter. Many public sector contracts now require suppliers to show that palm oil ingredients meet sustainability criteria. Similarly, some retailers and manufacturers face consumer or investor pressure to trace palm oil back to certified sources.

MP Evans also completed CDP reporting for climate change, forests, and water security. The company received a B grade. Furthermore, it obtained the London Stock Exchange green economy mark in 2026. This recognition highlights businesses generating more than 50% of revenue from environmental solutions or products that support the transition to a low-carbon economy.

Emissions intensity and absolute reductions both improving

The company's 2024 TCFD report confirmed that MP Evans had already surpassed its interim target of a 28% reduction in industrial emissions by 2030. By the end of 2024, the reduction reached 36% from the 2021 baseline. This means the company achieved its 2030 goal six years ahead of schedule.

In addition, the report showed a 20.4% reduction in absolute value-chain greenhouse gas emissions between 2023 and 2024. This figure includes scope 1, scope 2, and scope 3 emissions. Therefore, the reduction covers direct emissions from owned operations, purchased electricity, and upstream and downstream activities.

Emissions intensity also improved. The group's scopes 1 and 2 emissions intensity stood at 0.5 tonnes of CO2 equivalent (tCO2e) per tonne of CPO produced. Lower emissions intensity means the company is generating less carbon for each unit of output. Consequently, production growth does not necessarily lead to proportional emissions increases.

MP Evans also reported that total carbon emissions fell 45% over the last five years in the coverage tied to its green economy recognition. This figure reflects operational changes such as renewable electricity generation from its mills. The company captures biogas and biomass energy during palm oil processing, which reduces reliance on fossil fuels and cuts scope 1 and scope 2 emissions.

Longer-term climate targets and land use goals

MP Evans has set a target to cut industrial scope 1, 2, and 3 emissions by 90% by 2050 from a 2021 base year. Additionally, it aims to reduce FLAG (forest, land, and agriculture) emissions by 72% by 2050. FLAG emissions include land-use change, deforestation, peatland degradation, and soil carbon losses. These emissions are often the largest component of a palm oil producer's carbon footprint.

The company has also targeted a 53% reduction in FLAG emissions per tonne of CPO by 2030. This interim goal addresses emissions intensity in land use, not just operational processes. Achieving it will require careful management of plantation expansion, peatland protection, and conservation areas.

More than 10% of MP Evans's total planted area is now protected conservation land. This proportion reflects a commitment to high conservation value (HCV) and high carbon stock (HCS) protection. Many palm oil producers face criticism for clearing forest or peatland to expand plantations. Therefore, maintaining conservation areas within concession boundaries helps demonstrate responsible land management.

Summary of key facts

Why these developments matter for UK businesses

Palm oil and its derivatives appear in thousands of products, from food and cosmetics to cleaning agents and industrial lubricants. Consequently, many UK businesses have palm oil somewhere in their supply chain, even if they do not buy crude palm oil directly. Understanding how producers are addressing sustainability helps buyers manage risk and meet their own reporting obligations.

Several factors make this case relevant to UK SMEs. First, public sector procurement rules increasingly require suppliers to demonstrate responsible sourcing. Procurement Policy Note 06/21 (PPN 06/21) requires suppliers bidding for central government contracts above certain thresholds to publish a carbon reduction plan. Our net-zero program for carbon reporting compliance supports businesses preparing these plans. If your supply chain includes palm oil, you may need to show that it comes from certified sustainable sources.

Second, some retailers and consumer-facing brands have made public commitments to source 100% certified sustainable palm oil. If you supply these businesses, they may ask for evidence of traceability and certification. Therefore, knowing which producers can demonstrate progress on certification volumes helps you respond to those requests.

Third, ESG reporting expectations are rising across the board. Even if you are not yet required to publish detailed climate data, investors, lenders, and customers are asking more questions. Showing that your supply chain includes certified, lower-emissions ingredients strengthens your position. Furthermore, it reduces reputational risk linked to deforestation and land-use change.

Fourth, palm oil producers face intense scrutiny from NGOs, media, and campaigners. Companies associated with deforestation or peatland conversion can find themselves named in reports or campaigns. For businesses using palm oil, selecting suppliers with credible sustainability programs reduces exposure to these risks. MP Evans's certification levels, conservation commitments, and third-party reporting provide tangible evidence of performance.

Full value chain emissions remain the largest challenge

Despite the operational progress, most of MP Evans's emissions still sit in the wider supply chain. Scope 3 emissions include upstream activities such as fertilizer production, transportation, and land-use change. They also cover downstream processing, distribution, and end-of-life disposal. These emissions are harder to measure and control than scope 1 and scope 2 sources.

The company's FLAG emissions targets recognize this challenge. Reducing FLAG emissions by 72% by 2050 requires action on land management, soil carbon, peatland protection, and plantation practices. It also depends on preventing further deforestation and restoring degraded land. Achieving these goals will require long-term investment, stakeholder collaboration, and consistent monitoring.

For businesses buying palm oil, this context matters. A producer might achieve impressive reductions in mill-level emissions while still carrying significant scope 3 liability. Therefore, it is important to ask suppliers about their full value chain performance, not just operational metrics. Look for producers that report scope 3 emissions, set science-based targets, and engage with smallholders and outgrowers on sustainability.

MP Evans works with smallholders and local communities in Indonesia, according to its latest statement. Smallholder engagement is critical because independent growers supply a significant portion of the palm oil entering global markets. If smallholders lack access to training, finance, or agronomic support, their practices may lag behind those of larger estates. Consequently, supply chain emissions and deforestation risk remain elevated.

Businesses that want to reduce scope 3 emissions in their own supply chains should prioritize suppliers that actively support smallholder sustainability. This might include training programs, finance for replanting, access to certification schemes, or technical assistance on soil management and fertilizer use. These interventions take time and resources, but they deliver measurable improvements in emissions intensity and land-use outcomes.

Growing output while cutting emissions presents a useful model

The palm oil sector has often been characterized by a perceived conflict between production growth and environmental performance. Critics argue that expansion drives deforestation and peatland conversion. Producers counter that demand continues to grow and that palm oil delivers higher yields per hectare than alternative vegetable oils.

MP Evans is working to show that this trade-off is not inevitable. The company increased certified sustainable CPO volumes while reducing absolute emissions and emissions intensity. This approach suggests that investment in technology, renewable energy, and land management can deliver both commercial and environmental benefits.

For UK businesses, this model is relevant beyond palm oil. Many SMEs face similar questions about growth and sustainability. Can you expand your business while reducing carbon intensity? Can you meet rising demand without increasing absolute emissions? The answer often depends on how you invest in efficiency, renewable energy, and supply chain engagement.

Renewable energy generation at MP Evans's mills demonstrates one practical strategy. By capturing biogas and biomass from processing waste, the company generates electricity and heat on-site. This reduces fossil fuel consumption, cuts scope 1 and scope 2 emissions, and lowers energy costs. Many manufacturing and processing businesses in the UK can apply similar principles, whether through on-site solar, combined heat and power systems, or waste heat recovery.

Certification and third-party reporting also play a role. MP Evans's CDP disclosure, TCFD reporting, and green economy mark provide external validation of its claims. For businesses of any size, credible reporting builds trust with customers, investors, and regulators. SBS compliance support for ESG and carbon reporting helps companies prepare disclosures that meet recognized frameworks and standards.

What UK SMEs should consider in their own supply chains

If your business uses palm oil or palm oil derivatives, start by mapping your supply chain. Identify which products contain palm oil and trace them back to suppliers. Ask suppliers whether they source certified sustainable palm oil and which certification scheme they use. Common schemes include Roundtable on Sustainable Palm Oil (RSPO), International Sustainability and Carbon Certification (ISCC), and Palm Oil Innovation Group (POIG).

Next, request data on emissions intensity and traceability. Suppliers should be able to provide information on their scope 1, scope 2, and ideally scope 3 emissions. They should also demonstrate traceability to the mill level or, better still, to the plantation. This information helps you assess risk and report your own scope 3 emissions more accurately.

Consider joining industry initiatives or using third-party platforms that aggregate sustainability data. Many food manufacturers, retailers, and consumer goods companies collaborate through platforms that share supplier scorecards and audit results. Participating in these networks reduces duplication and improves transparency across the supply chain.

Review your contracts and procurement criteria. If sustainability is important to your customers or your own corporate commitments, build it into supplier agreements. Specify requirements for certification, emissions reporting, and traceability. Make it clear that suppliers who invest in sustainability will have a competitive advantage in your procurement decisions.

Finally, recognize that sustainable sourcing is an ongoing process, not a one-time achievement. Producers like MP Evans set long-term targets and report progress annually. Your business should adopt a similar approach. Set clear goals, measure performance, and adjust your strategy as new data and standards emerge. SBS Academy training on scope 3 emissions provides practical guidance on managing supply chain impacts and reporting them credibly.

Where to find further information and guidance

For detailed information on sustainable palm oil certification, visit the Roundtable on Sustainable Palm Oil website. RSPO provides standards, certification processes, and supply chain traceability tools. The UK government statement on forest risk commodities sets out expectations for businesses sourcing palm oil, soy, cocoa, and other commodities linked to deforestation.

The CDP disclosure platform offers frameworks for reporting climate, forests, and water security data. Many investors and customers use CDP scores to assess corporate environmental performance. The Task Force on Climate-related Financial Disclosures provides guidance on climate risk reporting, scenario analysis, and governance structures.

For broader context on palm oil sustainability and land-use emissions, the International Union for Conservation of Nature publishes research and guidance on high conservation value areas, peatland protection, and biodiversity. UK businesses can also consult government guidance on sustainability and carbon reporting to understand their own disclosure obligations and best practices.