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