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Fact-check: Palm oil in vegan foods is worse for the climate than dairy butter — corporate-accountability scorecard 2025

A rigorous fact-check of the claim that palm oil in vegan foods has a higher climate impact than dairy butter, using a corporate-accountability scorecard to assess brand transparency.

By Anya Sharma4 min readJakarta, ID
Aerial view of palm oil plantation in Southeast Asia showing climate impact of palm oil in vegan foods
Humane Foundation

The claim that palm oil in vegan foods has a worse climate impact than dairy butter is misleading when assessed on a full lifecycle basis. While palm oil production drives tropical deforestation and peatland degradation—releasing substantial greenhouse gases—dairy butter's emissions from enteric fermentation, feed production, and land use are consistently higher per kilogram of product. A corporate-accountability scorecard reveals that the real problem is not palm oil itself, but opaque supply chains and weak deforestation commitments among many vegan food brands.

What does the science say about palm oil vs. dairy butter emissions?

A comprehensive lifecycle assessment published in Science (2023) found that palm oil produces approximately 3.8 kg CO₂-equivalent per kilogram, while dairy butter emits about 12.5 kg CO₂-equivalent per kilogram. This threefold difference persists even when including emissions from land-use change, such as deforestation for new palm plantations. The IPCC's 2022 report on food systems confirms that dairy products, including butter, have among the highest carbon footprints per gram of fat.

However, the comparison is not straightforward. Palm oil's emissions vary dramatically depending on whether plantations replace primary rainforest or are established on already degraded land. A 2020 study in Nature Climate Change estimated that palm oil grown on peatlands can emit up to 10 kg CO₂-equivalent per kilogram—approaching dairy butter's footprint. But peatland palm oil represents a minority of global production, and certification schemes like RSPO (Roundtable on Sustainable Palm Oil) prohibit peatland conversion.

Lifecycle greenhouse gas emissions: palm oil vs. dairy butter

Source: Science, 2023; IPCC, 2022

How does deforestation for palm oil affect the climate?

Deforestation for palm oil expansion in Indonesia and Malaysia—which produce 85% of the world's palm oil—releases carbon stored in tropical rainforests and peatlands. The Union of Concerned Scientists (2022) estimates that clearing one hectare of peat forest for palm oil releases 6,000 tonnes of CO₂ over 25 years. This is a significant climate impact, but it must be weighed against the fact that dairy production also drives deforestation, particularly for cattle pasture and feed crops like soy.

Supermarket shelf with vegan and dairy butter packages illustrating palm oil in vegan foods consumer choice
Consumer choice at the supermarket shelf.Humane Foundation

A 2021 study in Global Environmental Change found that beef and dairy production are the leading drivers of deforestation in the Amazon, while palm oil expansion is the primary driver in Southeast Asia. Both systems contribute to climate change, but the claim that palm oil is 'worse' ignores the far larger land footprint of dairy: producing one kilogram of butter requires roughly 10 square meters of land per year, compared to 2 square meters for palm oil (Our World in Data, 2024).

The idea that palm oil is uniquely bad for the climate is a distraction from the far larger impact of animal agriculture. The real question is how we can make plant-based supply chains—including palm oil—more sustainable and transparent.

Dr. Emma Keller, Agricultural Sustainability Researcher, University of Oxford
BrandPublic deforestation policyRSPO certificationTraceability to mill
Brand A (vegan butter)Yes, time-bound to 2025100% certified95% traceable
Brand B (vegan cheese)Yes, but no deadline70% certified60% traceable
Brand C (vegan spread)No public policy30% certifiedNo disclosure
Brand D (vegan bakery)Yes, time-bound to 202785% certified80% traceable
Brand E (vegan ice cream)No public policyNo certificationNo disclosure
Corporate-accountability scorecard for palm oil in vegan foods (selected brands, 2025). Source: Rainforest Foundation Norway, 2024; company reports.

What does the corporate-accountability scorecard reveal about vegan food brands?

A 2024 analysis by the Rainforest Foundation Norway evaluated 20 major vegan food brands on their palm oil sourcing policies. Only 6 brands had public, time-bound commitments to eliminate deforestation from their supply chains. The majority relied on generic sustainability claims without third-party verification. This lack of transparency undermines the climate benefits of choosing plant-based alternatives.

The scorecard also found that brands using RSPO-certified palm oil—which prohibits deforestation, peatland conversion, and exploitation—had significantly lower deforestation risk. However, RSPO certification still covers only about 20% of global palm oil production (RSPO, 2024). Consumers seeking climate-friendly vegan foods should prioritise brands with full traceability and certification.

What should consumers say instead of avoiding palm oil?

Instead of claiming that palm oil is worse for the climate than butter, consumers and advocates should say: 'Palm oil has a lower carbon footprint than dairy butter, but its environmental impact depends entirely on how and where it is grown. To ensure your vegan food choices are climate-friendly, choose brands with certified deforestation-free palm oil and full supply chain transparency.'

This framing shifts the focus from ingredient avoidance to corporate accountability, which is more effective at driving systemic change. The IPCC (2022) and EAT-Lancet Commission (2019) both recommend reducing animal-based fats while improving the sustainability of plant-based alternatives—not eliminating palm oil altogether.

Frequently asked questions

Is palm oil in vegan food bad for the environment?+

Palm oil can be bad for the environment if it drives deforestation of tropical rainforests and peatlands, releasing large amounts of carbon dioxide. However, certified sustainable palm oil from RSPO sources avoids deforestation and peatland conversion. Compared to dairy butter, palm oil's lifecycle emissions are significantly lower per kilogram.

Which vegan food brands use sustainable palm oil?+

Brands with strong sustainability commitments include those that source 100% RSPO-certified palm oil and provide mill-level traceability. Examples include some major vegan butter and spread brands, though fewer than 30% of vegan food brands have public deforestation policies. Consumers should check company websites or use apps like Palm Oil Scan.

Does avoiding palm oil help the climate?+

Avoiding palm oil entirely may not help the climate if consumers switch to other vegetable oils with higher land requirements, such as coconut or soybean oil, which can also drive deforestation. A better approach is to demand sustainable palm oil and support brands with transparent, deforestation-free supply chains.

How does palm oil compare to coconut oil for climate impact?+

Palm oil has a lower carbon footprint per kilogram than coconut oil, according to a 2023 lifecycle analysis in the Journal of Cleaner Production. Coconut oil requires more land and water, and its expansion in Southeast Asia and the Pacific has also been linked to deforestation. Sustainable palm oil is generally considered the more climate-friendly tropical oil.

What is the Roundtable on Sustainable Palm Oil (RSPO)?+

The RSPO is a global certification scheme that sets standards for sustainable palm oil production, prohibiting deforestation, peatland conversion, and human rights abuses. Certified palm oil accounts for about 20% of global production. Critics argue that enforcement is weak, but RSPO certification remains the most widely recognised benchmark for sustainable palm oil.

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