Sustainability science for FMCGs

FMCGs should be a priority target sector for ANRF, the new public-private partnership initiative, and the BioE3 policy of the government

India’s new PPP initiative, the Anusandhan National Research Foundation (ANRF), established to promote research and development, and the recently announced BioE3 (Biotechnology for Economy, Environment and Employment) policy emphasise the need for academia-industry partnership; and the role of the bioeconomy in driving the economy while honouring India’s commitment to sustainable development and climate action. Specifically, the BioE3 policy notes the need to convert chemical-based industries to sustainable bio-based industrial models. It also provides an opportunity to revisit the impact of new technologies on existing industries such as Fast-Moving Consumer Goods (FMCGs).

Reducing palm oil in soap

The soap industry globally, for example, is a major contributor to greenhouse gas emissions and loss of biodiversity. The manufacturing of soap depends heavily on palm oil. About 90% of palm plantations are grown in Borneo, Sumatra, and the Malay Peninsula, where its lucrative production has led to replacing forested lands with palm oil fields. Although this deforestation has been well documented, replacing palm oil in soaps and other FMCG products has been difficult. For one, palm has relatively higher yields as compared with other vegetable oils, making it more lucrative for farmers and cheaper for consumers. Palm oil also accounts for about 40% of the global annual demand for vegetable oil.

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However, new emerging technologies may provide avenues to replace or at least reduce palm oil consumption in soaps. Palm oil is the primary source of fatty acids that perform two functions in a soap bar —15-20% of the lower chain fatty acids contribute to the surfactant/cleansing function of the soap, while most of the longer chain fatty acids only provide structure to the bar. Synthetic biotechnologies may be able to create artificial fatty acid chains that can replace the functionalities of palm oil, particularly those providing structure to the bar. Alternately, the so-called ‘structuring portion of the Total Fatty Matter’, which provides no consumer benefit, could be replaced with other local plant or bio-based materials such as plant-based polysaccharides. Additionally, with the total amount of ‘hard soap’ reduced, other benefit agents like antimicrobial peptides or other biologically active molecules could be added to the soap bar to improve its germ-protection function or preferably molecules which boost the skin’s immunity and provide germ protection.

This will require strong support from government and civil society. It would mean the development of solutions across the soap value chain, be it bio-based or bio-synthetic materials that could replicate the brick-and-mortar structure of the soap bar or packaging innovations that can reduce/eliminate plastic use. The recent PPP initiative under ANRF, linked seamlessly with the BioE3 policy, could support such partnerships through funding and by recognising the need to reinvent legacy products in addition to introducing new ones.

Locally grown palm oil

Until bio-synthetic or bio-engineered products become a reality, every day-use products like soaps will depend on domestic and international sustainable palm oil plantations. The Government of India launched the National Mission on Edible Oils-Oil Palm in August 2021 with the aim of increasing the oil palm production area to 10 lakh ha. and boosting crude palm oil production to 11.20 lakh tonnes by 2025-26. It is important that such plantations not only adhere to the policy of ‘No Deforestation, No Peat’, but that they are also carefully selected so that they don’t disrupt the surrounding biodiversity. A comprehensive ecological research programme to understand the long-term impact of these monocultures in the context of India’s biodiversity is also a strong need, along with regenerative agriculture practices, working with smallholder farmers.

The purchase of locally grown sustainable palm oil and investments in innovation to replace imported palm oil come at a cost, which, when borne by the company, may have to be passed onto the consumer. In a competitive market, this can mean the loss of market share. Government support through funding for research or other fiscal incentives encourage such sustainable practices and help companies innovate in this space.

Finally, the move to reduce palm oil use in soaps will require regulatory support. Current toilet soap grades are decided based on the fatty material present in the soap. This creates a false equivalency in the government’s and consumer’s mind that the higher the fatty material in the soap, the better the product’s quality. Many publications disprove of this. Regulatory requirements for soap grades should move away from this old ‘vertical’ compositional standard based on a single material and embrace more horizontal and performance-based standards as those which exist in developed markets and incentivise newer technologies and methodologies linked to consumer benefit, product safety, and environmental sustainability. Furthermore, mandatory labelling of products on a sustainability scale based on their procurement and production practices can also help consumers make informed decisions.

The ANRF and the BioE3 policy are the right ways of moving towards a bio-based economy linked to a strong partnership between academia and industry. Products of everyday use might be a great first place to start, to make a real impact in terms of being both sustainable and self-reliant

Shambhavi Naik, Takshashila Institution, Bengaluru. Views are personal; L.S. Shashidhara, National Centre for Biological Sciences, Bengaluru. Views are personal

Published - October 28, 2024 02:17 am IST