an international multi stakeholder initiative transforming markets to make sustainable palm oil the...

An International Multi Stakeholder Initiative Transforming Markets to make sustainable palm oil the norm

OutlineWhat is palm oil?

The need for certified sustainable palm oil

The Roundtable on Sustainable Palm Oil (RSPO)

Where we are today

Where we go from here

“It has the scent of violets, the taste of olive oil and a color which tinges food like saffron but is more attractive”

Ca’da Mosto,15th century explorer,on discovering palm oil.

What is palm oil?

Why palm oil?

Palm Oil is….

A highly versatile vegetable oil

Used in many food and non-food products

Produced in tropical countries

Rapidly growing market share

World’s top selling vegetable oil

Highly versatile

• Palm oil is used in more than half of packaged supermarket products today

Growth of world’s palm oil production

0

10

20

30

40

50

1966 1976 1986 1996 2006

palm oil soyrapeseedsunflowerothers

Palm oil – world’s number one vegetable oil

palm oil 30%

Soy 29%

Rapeseed 14%

Sunflower 8%

Others 19%

Top palm oil producing countries

indonesia malaysia others

47%

39%

14%

Asia and Europe are world's major importers of palm oil

(2009)

Other Asia

Europe

China

India

Pakistan

Other

AfricaAsia

Advantages of palm oil• are highly efficient producers of oil• require less land than other oil crops

Average yield per year (tonnes of oil per hectare)

Oil Palm

Rapeseed

Sunflower

Soybean

0 0.5 1 1.5 2 2.5 3 3.5 4

3.68

0.59

0.42

0.36

Why sustainable palm oil?

• More than 1 million workers

• More than 3 million smallholders

• Many morehousehold members

• Social issues in oil palm cultivation

• Land ownership conflicts

• Worker’s rights and conditions

• Treatment of smallholders

• Environmental issues in oil palm cultivation

• Forest, peatland conversion

• Climate change• Biodiversity loss

THE RSPO

About the Roundtable on Sustainable Palm Oil:

• Established in 2004 • Began with 7 members• International Multi-stakeholder not for profit

association• Promotes the growth and use of sustainable

oil palm products through global standards

Principle 1: Commitment to transparency; NGO

Principle 2: Compliance with applicable laws and regulations; Principle 3: Commitment to long-term economic and financial viability;

Principle 4: Use of appropriate best practices by growers and millers

Principle 5: Environmental responsibility and conservation of natural resources and biodiversity

Principle 6: Responsible consideration of employees and of individuals and communities affected by growers and mills (case study)

Principle 7: Responsible development of new plantings

Principle 8: Commitment to continuous improvement in key areas of activity

8 FUNDAMENTAL PRINCIPLES & 39 CRITERIA

8 PRINCIPLES & 39 CRITERIA

1. Commitment to transparency; NGO

2. Compliance with applicable laws and regulations;

3. Commitment to long-term economic and financial viability;

4. Use of appropriate best practices by growers and millers

5. Environmental responsibility and conservation of natural resources and biodiversity

6. Responsible consideration of employees and of individuals and communities affected by growers and mills (case study)

7. Responsible development of new plantings

8. Commitment to continuous improvement in key areas of activity

Over 800 members from 50 countries

**As of April 2012

Multi Stakeholder

**As of April 2012

Membership by country

UK

**As of April 2012

Where we are today

• Code of Conduct for members• Independent certification bodies• Principles, specific criteria and indicators

for sustainable palm oil production• Supply chain certification systems• Guidelines on communication and claims

• Code of Conduct: “All members will publicly commit to production, procurement and use of sustainable palm oil” – Annual Communications on Progress

• Grievance panel supervises compliance

Sustainability Principles:

1. Transparency

2. Use best practices

3. Care for environment, natural resources,and biodiversity

4. Consider rights ofworkers, smallholders

5. Develop new plantings responsibly

Specific social criteria and indicators:• Rights to the land not legitimately contested• Workers’ pay and conditions provide decent

living• The right to form trade unions is respected• Health and safety plan implemented• Smallholders treated fairly by mills

Specific environmental criteria and indicators:

• Since November 2005, new plantings did not replace primary forests or high conservation value areas

• Erosion and degradation of soils are minimized

• Pollution and waste is reduced• Use of fires is avoided

Respecting diversity: national interprations of guidelines (see: www.rspo.org)• Papua New Guinea (2008)• Malaysia (2008)• Indonesia (2008)• Colombia / L. America (2010)• Ghana (2011)• Thailand (2012)

Plantation, mill certification procedure

Approved certification bodies listed on RSPO websiteAudit by certification body (1 month notice)Unit of certification: oil mill and suppliersCompliance with Principles, Criteria and IndicatorsPhase I: Document reviewPhase II: Field checks, stakeholder interviewsAudit Report, summary published online

Supply chain mechanisms

Plantations

Refiners & Blenders

Ingredient Manufacturers

Retailers

Mill

Product Manufacturers

Storage, transport, shipping

The palm oil supply chain:

• Many links• Potential for mixing

Smallholders

Supply chain systems

• ‘Identity preserved’:Sustainable oil kept apart, traceable to plantation

• ‘Segregated’:Mixing of sustainable palm oil batches is allowed

• ‘Mass Balance’: Mixing of sustainable and conventional oil allowed if monitored administratively

• Monitored by UTZ Certified, www.utzcertified.org

Supply chain system: credit trading

• ‘Book and Claim’:- No tracking, tracing or monitoring of oil- Growers, end-users trade volume credits online

• Managed by GreenPalm, www.greenpalm.org

Supply chain certification procedure

• Verifies movement of oil through the supply chain• Step-by-step documentation• Performed by 3rd-party certification bodies• More info: www.rspo.org

Communications guidelines & claims

Communication guidelines and claimsSpecify communication on production, procurement and use of RSPO-certified sustainable palm oil

• Use of RSPO Logo• Claim details• Story-telling on supply chain model• Communications

-

Two possible claims in communication, marketing:

“... contains [only/.. %] RSPO-certified sustainable palm oil”

- Used with ‘Identity Preserved’, ‘Segregated’ systems

“... advances the production of RSPO-certified sustainable palm oil (equivalent to .. % of the palm oil utilized)”

- Used with ‘Mass Balance’, ‘Book and Claim’ systems

Claims and corresponding supply chain systems: #1

Claim to be used

Prescribed supply chain

Prescribed supply base

“This product contains [only/..%] RSPO-certified sustainable palm oil”

“This product contains [only/..%] RSPO-certified sustainable palm oil”

‘Identity Preserved’

Specific RSPO-certified

plantation

‘Segregated’

Several RSPO-certified

plantations

Claim to be used

Prescribed supply chain

Prescribed supply base

Claims and corresponding supply chain systems: #2

“... advances the production of RSPO-certified sustainable palm oil (equivalent

to ..% of the palm oil utilized)

“... advances the production of RSPO-certified sustainable palm oil (equivalent

to ..% of the palm oil utilized)

‘Mass Balance’

RSPO-certified + conventional plantations

Certificates

RSPO-certified plantations

‘Book & Claim’

Milestones

Consumer communication

RSPO trademark developed for on/about-product communication

Rules for use, communication and licensing under development

Trademark registration procedures begun in more than 60 countries

Expected launch for use: 2011

April 2012 :• Launched trademark – June 2011• >800 members• Annual production capacity: 5.7m metric tonnes• Total production area: 1.148.134 hectares• 30 grower companies certified• 141 mills certified • 166 supply chain companies certified• 319 supply chain facilities certified

In conclusion

Key RSPO documents at www.rspo.org:Key RSPO documents at www.rspo.org:

1. Statutes2. Principles & Criteria3. Criteria: National Interpretations4. Code of Conduct5. Supply Chain Certification Systems6. Guidelines on Communication & Claims 7. 2011 RSPO CSPO Growth Interpretation Narrative

RSPO’s ambitions:

Grow supply of certified oil

Grow demand for certified oil, including in India, China

Grow RSPO membership

Engage governments

Engage and educate smallholders

Engaging more than 3 million smallholders

They maintain 20% of acreage

RSPO Task Force on smallholders:

Promotes smallholder interests within RSPO

Raises awareness among smallholders

Adapts RSPO standards and procedures

Develops group certification protocol

RSPO’S VISION: TO TRANSFORM MARKETS TO MAKE SUSTAINABLE PALM OIL THE NORM

RSPO SecretariatKuala Lumpur, Malaysia

WWW.RSPO.ORGEmail : rspo@rspo.org