Palm oil is used to stabilize the product. Palm oil is problematic for environmental reasons. Similar to other foodstuffs farmed industrially there are other ethical problems as well.

The concerns often expressed for peanuts, palm oil, and other foods high in saturated fats, are mostly related to purported health effects related to their consumption. i.e., people think they're bad for you to eat. Whether they are or are not is still deliberated and, I think, quite beside the point.

We need to stop shoving palm oil into things.