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 do 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
HISTORY
2001 - WWF explored possibilities of a Roundtable for Sustainable Palm Oil.
2002 - an informal co-operation with Aarhus United UK Ltd, Golden Hope
Plantations Berhad, Migros, Malaysian Palm Oil Association, Sainsbury's and
Unilever together with WWF in 2002.
Inaugural meeting (RT) in Kuala Lumpur, Malaysia on 21 - 22 August 2003 attended by 200 participants from 16 countries.
31 August 2004, forty seven organizations joined RSPO.
8 April 2004 - "Roundtable on Sustainable Palm Oil (RSPO)," was formally
established under Article 60 of the Swiss Civil Code with a governance
structure that ensures fair representation of all stakeholders throughout the
entire supply chain.
The seat of the association is in Zurich, Switzerland, the Secretariat is based in
Kuala Lumpur with a RSPO Liaison office in Jakarta.
Governance Structure
Ordinary Members
Affiliate Members
Supply Chain Associates
General Assembly (GA)
Executive Board (EB)
Secretary General
Standing Committee
Standing Committee
Standing Committee
Standing Committee
Trade and Traceability
Communications & Claims
Standards & Certifications
Finance
Working Groups
Working Groups
Working Groups
Working Groups
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 – Latest information can be accessed at
http://www.rspo.org/en/membership_key_statistics
Multi Stakeholder Membership
Retailers , 43
Processors &
Traders , 215
Banks &
Investors , 10
Social NGOs , 9
Consumer Goods
Manufacturers ,
211
Growers , 104
Environmental
NGOs , 17
**As of April 2012 – Latest information can be accessed at
http://www.rspo.org/en/membership_key_statistics
Membership by country
Switzerland
4%
Singapore
4%
USA
7%
Australia
4%
UK
17%
Malaysia
16%
Netherlands
10%
France
10%
Germany
13%
Indonesia
15%
**As of April 2012 – Latest information can be accessed at
http://www.rspo.org/en/membership_key_statistics
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 models
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 model: certificates 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
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
Launched: June 2011
April 2012 :
• Launched trademark – June 2011
• >800 members
• Annual production capacity: 6m 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
More info at http://www.rspo.org/en/grower_certification
Latest info at: http://www.rspo.org/en/key_statistics
Latest info at: http://www.rspo.org/en/key_statistics
Latest info at: http://www.rspo.org/en/key_statistics
Latest info at: http://www.rspo.org/en/key_statistics
Latest info at: http://www.rspo.org/en/key_statistics
RSPO’s aspirations:
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
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
http://www.rspo.org/en/key_documents
RSPO’S VISION:
TO TRANSFORM MARKETS TO MAKE
SUSTAINABLE PALM OIL THE NORM
RSPO Secretariat
Kuala Lumpur, Malaysia
WWW.RSPO.ORG
Email : rspo@rspo.org