An International Multi Stakeholder Initiative
Transforming Markets to make sustainable palm oil the norm
Outline
What 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
What is palm oil?
“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.
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
• Palm oil is used in more than half of
packaged supermarket products today
Growth of world’s palm oil
production
50
40
30
20
10
0
1966
1976
1986
1996
2006
Palm oil – world’s number one vegetable
oil
Others 19%
palm oil 30%
Sunflower 8%
Rapeseed 14%
Soy 29%
palm oil
soy
rapeseed
sunflower
others
Top palm oil producing countries
47%
39%
14%
indonesia
malaysia
others
Asia and Europe are world's major
importers of palm oil
(2009)
China
Other
Africa
Europe
Asia
India
Pakistan
Other Asia
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)
0.36
Soybean
0.42
Sunflower
0.59
Rapeseed
Oil Palm
3.68
0
1
2
3
4
Why sustainable palm oil?
• More than 1 million
workers
• More than 3 million
smallholders
• Many more
household 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
8 FUNDAMENTAL PRINCIPLES &
39 CRITERIA
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 PRINCIPLES & 39 CRITERIA
1.
2.
3.
4.
5.
Commitment to transparency; NGO
Compliance with applicable laws and regulations;
Commitment to long-term economic and financial viability;
Use of appropriate best practices by growers and millers
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 of
workers, 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 website
Audit by certification body (1 month notice)
Unit of certification: oil mill and suppliers
Compliance with Principles, Criteria and Indicators
Phase I: Document review
Phase II: Field checks, stakeholder interviews
Audit Report, summary published online
Supply chain mechanisms
Plantations
Smallholders
Mill
The palm oil supply chain:
•
Many links
•
Potential for mixing
Storage, transport, shipping
Product
Manufacturers
Refiners &
Blenders
Ingredient
Manufacturers
Retailers
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 claims
Specify 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
“This product contains [only/..%]
RSPO-certified sustainable palm oil”
‘Identity
Preserved’
Specific RSPOPrescribed supply base
certified
plantation
‘Segregated’
Several RSPOcertified
plantations
Claims and corresponding supply chain systems: #2
Claim to be used
“... advances the production of RSPOcertified sustainable palm oil (equivalent to
..% of the palm oil utilized)
Prescribed supply chain
‘Mass Balance’
Prescribed supply base
RSPO-certified +
conventional
plantations
‘Book &
Claim’
Certificates
RSPO-certified
plantations
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:
1.
2.
3.
4.
5.
6.
7.
Statutes
Principles & Criteria
Criteria: National Interpretations
Code of Conduct
Supply Chain Certification Systems
Guidelines on Communication & Claims
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 Secretariat
Kuala Lumpur, Malaysia
WWW.RSPO.ORG
Email : [email protected]
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Why palm oil? - Roundtable on Sustainable Palm Oil