Position on Responsible
Palm Oil Sourcing
Background
Forests are a vital resource, critical to the health of all the people, plants and animals that
inhabit our planet. They provide us with oxygen, food and medicine. They also sustain
ecosystem services such as water purification, and the mitigation of natural hazards likedroughts, floods and landslides. Today, forests cover approximately 30% of the land area onEarth; approximately 300 million people worldwide live in forests; and 1.6 billion people
depend on forests for their livelihoods. 1Forests also play an important role in mitigating climate change. When forests are cut, burnedor otherwise removed they no longer act as a carbon sink, but instead emit carbon, which
contributes to changes in climate patterns.
Because of its versatility and efficiency, palm oil is the most widely used vegetable oil in theworld and is a common ingredient and feedstock to ingredients in packaged foods, biofuels
and personal care products. Palm oil plantations have expanded in recent decades to meetgrowing global demand, raising stakeholder concerns about palm oil cultivation and its links to
not only deforestation, but also human rights abuses and the associated negative impacts on
biodiversity, people and local communities.
Our Approach
Kenvue is committed to protecting our planet, biodiversity, and the vital resources upon which
we all rely, today and in the future. Conserving the world’s forests and respecting humanrights are essential to both environmental and human health.
Kenvue primarily buys palm oil derivatives, meaning that our upstream suppliers may use avery small amount of palm oil and palm kernel oil to manufacture the oleochemical wepurchase. Kenvue purchases less than 0.1% of the global annual production of palm oil.2 We
do not own or manage palm oil plantations and, consequently, are multiple links in the chain
away from the original source of palm oil and palm kernel oil. However, we share other1

https://www.worldwildlife.org/threats/deforestation
United States Department of Agriculture Foreign Agricultural Service (2023). Palm Oil Word Production,
https://ipad.fas.usda.gov/cropexplorer/cropview/commodityView.aspx?cropid=4243000&sel_year=2021&rankby=Production2

Kenvue Position on Responsible Palm Oil Sourcing

stakeholders’ concerns about the negative effect palm oil sourcing may have on theenvironment and people, and we recognize that we can play a role in supporting responsible
palm oil production through enhanced traceability and sourcing of these ingredients.
Kenvue is committed to eliminating deforestation 3 and respecting human rights in its palm oil,palm kernel oil and palm-based derivatives supply chains. However, we recognize thatKenvue cannot eliminate deforestation on its own; we are reliant on multi-stakeholdercollaborations and the transformation of upstream supply chains. Our Responsible Palm Oil
Sourcing Position and annual progress updates outline the actions Kenvue is taking tosupport the supply chain transformations that are necessary to protect the environment andthe people who work in the palm oil supply chain.
Our Sourcing Principles
As a company with global supply chains, Kenvue strives to work with suppliers who share acommon set of values, all applicable laws and regulations, and adhere to our standards for
supplier business conduct, human rights and labor practices, workplace safety andenvironmental stewardship.
In addition to these standards, we expect our suppliers to ensure the sources of palm oil arefrom:• A legal source, where the principles and criteria of the Roundtable on SustainablePalm Oil (RSPO) are met, or where a recognized equivalent certification has beenimplemented;• A plantation that meets the High Carbon Stock (HCS) Approach methodology(including High Conservation Value [HCV] and Free Prior and Informed Consent[FPIC]);• A supplier that ensures the protection of peatlands, HCV areas and HCS forests;• A supplier that does not use burning to clear land for either development orreplanting;• A supplier that does not use forced, bonded or child labor;• A supplier that respects the rights of all workers and local communities, including
migrant workers, women workers and those on temporary contracts or in the informaleconomy;• A supplier that respects and includes smallholders in its supply chain; and• Areas that have not been cleared of natural forest since December 31, 2020.
Our Commitments
Kenvue is committed to the responsible sourcing of palm oil, palm kernel oil and palm-basedderivatives, which includes removing commodity-driven deforestation from our supply chain
and respecting human rights in our business relationships. In support of this commitment, ourambition is to:

3In accordance with the definitions of the Accountability Framework Initiative, deforestation is defined as the loss of natural forest as
a result of: i) conversion to agriculture or other non-forest land use; ii) conversion to a tree plantation; or iii) severe and sustained
degradation.

Kenvue Position on Responsible Palm Oil Sourcing•••

Maintain 100% RSPO certification for the palm oil-based ingredients we purchase4
through a combination of RSPO certified physical supply chains and RSPO Book &Claim credits5
Purchase4 at least 75% of our volumes from RSPO physical supply chains5 by 20256
Purchase4 100% of our volumes from RSPO physical supply chains5 by 20306

We have a grievance process to address instances of nonconformances with our sourcing
principles.
Our Grievance Process
We monitor supplier and producer performance to verify conformance to our responsible palm
oil sourcing principles using a wide range of partners and technologies, with a preference foruse of independent third-party verification methods where available. When an instance ofnonconformance to our sourcing principles occurs, we take specific actions depending on thenature and severity of the nonconformance, where a producer falls in our supply chain, andthe amount of commercial influence and leverage we may have to correct the behavior.
Our primary approach is to engage and to give nonconforming producers the opportunity toimprove their practices and to conform with our sourcing principles.
In cases where there is insufficient progress against time-bound corrective action plans (CAP)or a lack of responsiveness to our request to correct the nonconformance, as a last resort, wemay make the decision to cease purchasing palm oil source material from nonconforming
producers. We continually qualify alternative sources to promote sustained supply chainresiliency.
Our Progress
We commit to providing annual updates on our progress through the RSPO AnnualCommunication on Progress and on our website.
Last Updated: November 2023

4Includes palm oil-based ingredients directly procured by Kenvue; does not include palm oil-based ingredients in some external
manufactured products.
5Physical supply chain refers to palm oil supply that is sourced from certified plantations under the Mass Balance, Segregated, orIdentity Preserved certifications. More information on RSPO certified supply chains can be found here: https://rspo.org/as-anorganisation/certification/supply-chains/
6The goal will be met by end of fiscal year and published the year after.

Kenvue Position on Responsible Palm Oil Sourcing