Nikko Chemicals recently announced that they have made a significant step forwards and have become the first Japanese company to join the global initiative ‘Action for Sustainable Derivatives’ (ASD). This initiative is focused on sustainability and transparency within the cosmetics industry, specifically changing how the cosmetic’s industry uses palm oil derivatives.

Nikko Chemicals has its Headquarters based in Tokyo and making this decision to join the initiative, emphasises the company’s commitment to responsible sourcing and supply chain practices, the values which drive the ASD initiative. The main aim for the ASD platform is to gather companies from the cosmetics, home and personal care and oleochemicals sectors and bring them together to work on a joint aim of addressing and finding solutions to the issues presented by the palm oil and palm kernel oil derivatives supply chain. Getting involved in this initiative also highlighted Nikko Chemical’s dedication to the United Nations’ Sustainable Development Goals (SDGs), which truly portrays them as a company focused on sustainability.

Through working with ASD, Nikko Chemicals is now set to achieve several key objectives, which are all dedicated to the transparency and sustainability of palm oil derivatives and palm oil-derived products supply chain. These objectives cover, enhanced transparency, strategic supplier selection and comprehensive risk management.

Enhanced transparency focuses on the aim to provide comprehensive visibility in its palm oil products and supply chain. This goal instantly shows the company and the initiative’s commitment to transparency and making it easy for regional and global customers to become more informed about their choices, consequently allowing them to make more sustainable and better choices for the environment.

Strategic selection falls to the company’s purchasing headquarters, where the focus will be dedicated to ensuring the reliability and integrity of its suppliers. Through the use of sound selection processes, Nikko Chemicals aims to create and add to a responsible and ethical supply chain that runs throughout the cosmetics industry.

The final goal, comprehensive risk management, involves the implementation of robust risk management practices throughout the company’s operations. Following guidance from ASD, the company will now take a proactive approach when it comes to identifying and addressing potential challenges that lie within the complex palm derivatives sector.

Nikko Chemical’s decision to join ASD is a significant moment for a lot of the cosmetics industry as not only does it show how committed to creating positive change and a more sustainable future Nikko Chemicals is. The choice to join also sets an example for other companies and encourages change to be continued throughout the industry, for the creation of transparent and responsible supply chain practices.

CEO of Nikko Chemicals, Mr. Hideyuki Nakahara, commented, "By joining ASD, we are taking a significant step towards transforming the palm derivatives sector. Our commitment to transparency and responsible sourcing aligns with our mission to deliver high-quality products while contributing to global sustainability efforts.”