Toward Sustainable Palm Oil Sourcing

Ryohin Keikaku views the procurement of sustainable raw materials as a corporate responsibility. Among these, we have identified five raw materials—cotton, wood, paper, palm oil, and coffee—as critical materials, given their potential risks of damaging forests and biodiversity, as well as their strategic importance to Ryohin Keikaku’s business. While palm oil is used in a wide range of MUJI products, including cosmetics, daily necessities, and food, it is also a raw material for which international concerns have been raised regarding deforestation, impacts on biodiversity, and labor conditions in producing regions.
Aiming to procure sustainable palm oil, Ryohin Keikaku established the “Palm Oil Sourcing Guidelines” in December 2025. Believing it is important to properly understand the actual initiatives being undertaken upstream in the supply chain, we conducted a site visit in late March 2026 of the palm oil plantations and mills in Sabah, Malaysia, from which our production partners source their supplies.

Verifying the “reality” that cannot be seen from behind a desk

Scenes from the dialogue

The purpose of this site visit was not simply to confirm that “there were no problems.” How are environmental and human rights considerations addressed in the day-to-day operations of the plantations and mills? How are internationally recognized RSPO certification*1 and various policies understood on-site, and to what extent are they reflected in daily operations? Furthermore, are there differences arising from variations in plantation size and management structures, and what are the challenges? To gain insight into these matters, we placed a strong emphasis on observing the sites firsthand and engaging in dialogue with stakeholders during the site visit.

*1 Abbreviation for the Roundtable on Sustainable Palm Oil (RSPO). An international certification system for palm oil produced with consideration for the environment and human rights.

Environmental Initiatives Observed on Site

At the relatively large-scale plantations and oil mills we visited, we observed that initiatives to assess and mitigate environmental impacts were integrated into daily operations.
For example, to verify whether deforestation was occurring around the plantations, monitoring using satellite imagery was conducted in addition to site visits, and a system was in place to regularly track changes in land use. A key feature was the continuous management of the vast plantations through a combination of on-site management and remote monitoring.
Furthermore, rather than relying on pesticides to control rats that eat the palm fruits, biological pest control was employed by utilizing owls, the rats’ natural predators. This approach to pest management, which treats it as part of the ecosystem, serves as an example of operations that balance environmental consideration with practical needs.
Moreover, at the oil mill, resources were effectively utilized by properly treating factory wastewater for reuse in palm tree cultivation and by converting methane gas generated at the plant into electricity.

An Approach Focused on the Entire Supply Chain

The plantation we visited adheres to the NDPE policy*2, which is based on the principle of avoiding deforestation, peatland development, and exploitation. We confirmed that this philosophy serves as a prerequisite not only for large-scale plantations but also in contracts with smallholder farmers with whom they do business.
Although there are differences in farm size and business environments, we recognize that the commitment to sharing a common direction across the entire supply chain is a critical factor from the perspective of risk reduction.

 *2 A sustainable procurement standard based on the acronym "No Deforestation, No Peat, No Exploitation"

How are workers supported?

In terms of occupational safety, Personal Protective Equipment is provided to employees, and pesticides and fertilizers are centrally managed in dedicated storage facilities. Moreover, we confirmed that the rules for handling these materials are clearly defined, and that regular health checkups are conducted for employees. Many of the workers at the plantation come from regions outside Malaysia, such as Indonesia, with their families. Due to institutional barriers in Malaysia that prevent children of foreign nationals from attending public schools, a school has been established within the plantation, providing an environment where workers’ children can attend until the age of 17. Additionally, a clinic is located on the plantation grounds, ensuring access to medical care.
From these initiatives, we observed that the palm plantations we visited appeared to be managed not only as workplaces but also with consideration for their role as a foundation for daily life.

Employee Housing

Challenges Revealed by Plantation Size

On the other hand, during visits to small-scale farmers, we observed variations in management systems and the level of initiatives. We identified cases where practices regarding working conditions and safety measures were not sufficiently organized, as well as situations where understanding of systems and policies was limited.
These issues are likely due not only to the attitudes of individual small-scale farmers but also to structural factors such as financial constraints and limited access to information. In advancing its business while giving due consideration to the environment and human rights, it is important for Ryohin Keikaku to engage and provide support based on an understanding of the realities on the ground.

Looking Ahead: Reviewing Procurement Methods Through Continued On-Site Verification

Through this site visit, we reaffirmed the importance of not only relying on surveys and certification status but also continuously verifying actual on-site operations and the commitment to improvement to enhance transparency within the palm oil supply chain. At the sites we visited, a foundation for traceability—enabling the tracking of raw material flows at the farm and factory levels—was present to a certain extent. We believe it is crucial to engage in dialogue on-site to identify risks and explore initiatives for improvement.

Based on the insights gained from this site visit, Ryohin Keikaku will proceed with discussions regarding the key considerations for our sustainable palm oil procurement and the mindset we expect from our production partners. We also plan to continue reviewing international certification systems from the perspective of their effectiveness, including their roles and positioning.
Furthermore, the sustainable procurement of raw materials is not something that can be completed with a single site visit.
Ryohin Keikaku will continue to focus on the upstream of the supply chain, conducting repeated site visits and engaging in dialogue to explore procurement methods responsible for the environment and human rights.