Kao Participates as a Founding Member of a U.S. Venture Aiming to Supply Alternative Raw Materials for Palm Oil Kao

 Kao announced on September 29 that it will participate in the establishment of a US venture company aiming to commercialize plant-derived raw materials to replace palm oil-derived raw materials. Participated as a founding member with Geno and Unilever, leading companies in sustainable materials, and added $ 120 million (about 17 billion yen) to Geno and Unilever's already announced investment.


The venture aims to stabilize and strengthen supply chains in the global $652 billion home and personal care market as demand for sustainably sourced palm oil rises worldwide, as well as social and environmental benefits. We will supply the market with responsibly procured alternative palm oil raw materials.


Geno's technology offers alternative raw materials derived from fossils. Initial studies show that plant-based alternatives based on Geno's technology will reduce CO2 emissions by up to 50% compared to palm oil-based feedstocks.

With Kao's investment, the venture will further expand its production capacity for alternative raw materials for palm oil. It is an important step towards Geno's goal of reducing greenhouse gas emissions by 100 million tons over the next few years. In addition, with the addition of Kao's knowledge in the consumer products business and chemical business cultivated over more than 130 years, it is expected that the venture's global expansion and influence will be further strengthened.


Kao has set a goal of carbon zero by 2040 and carbon negative by 2050, and this initiative is an important strategic decision to achieve that goal. While sustainable palm oil and its derivatives will continue to be important raw materials for Kao going forward, the venture will use biotechnology to produce more sustainable alternative palm oil raw materials, which Kao will use in home care and personal care. In addition to using it in Care's own products, we will supply its derivatives to chemical business customers.


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