The company made the commitment in response to a shareholder proposal filed by Green Century Capital Management and the New York State Common Retirement Fund.
Under its expanded policy, ConAgra will, by December 2015, only source palm oil that can be traced back to suppliers independently verified as not developing on High Carbon Stock or High Conservation Value forests, peatlands or engaged in human rights abuses.
Palm oil production is a leading driver of deforestation, the cause of 20 percent of global greenhouse gas emissions, according to UN-REDD.
As one of North America’s largest food manufacturers, ConAgra is estimated to be the 15th largest palm oil consumer globally, according to MSCI analysis.
ConAgra is the latest in a growing number of companies that have pledged to source deforestation-free palm oil including Kellogg’s, Mondelez International, Danone, Colgate-Palmolive, General Mills and Mars.