RSPO Draft Criteria for
Sustainable Palm Oil
Public consultation draft version 1
25 November 2004
This report was prepared by ProForest on behalf of the Criteria
Working Group of the Roundtable on Sustainable Palm Oil (RSPO)
Acknowledgements:
The development of the RSPO principles and criteria for sustainable palm oil
is being funded by HSBC Malaysia and Doen Foundation Netherlands
Contents
1.
INTRODUCTION ....................................................................................................................... 1
1.1.
2.
OVERVIEW OF THIS DOCUMENT................................................................................................ 2
PRINCIPLES AND CRITERIA FOR SUSTAINABLE PALM OIL ...................................... 3
2.1.
PROPOSED ADDITIONAL ELEMENTS ......................................................................................... 5
3.
PROPOSED GUIDANCE FOR FULFILLING THE CRITERIA........................................... 7
4.
GENERAL ISSUES TO BE CONSIDERED BY THE CWG.............................................. 33
4.1.
SMALLHOLDERS ...................................................................................................................... 33
4.2.
PILOT PROJECTS .................................................................................................................... 33
4.3.
IMPLEMENTATION OF THE CRITERIA ....................................................................................... 33
APPENDIX 1: PROPOSED DEFINITIONS ..................................................................................... 34
APPENDIX 2: A SIMPLE GUIDE TO SOME KEY SOCIAL CRITERIA TO BE CONSIDERED
BY THE RSPO CRITERIA WORKING GROUP ............................................................................. 36
RSPO Draft Criteria for Sustainable Palm Oil. Public consultation draft. Version 1. 25 November 2004
1. Introduction
The Roundtable on Sustainable Palm Oil (RSPO) is a global, multi-stakeholder initiative on
sustainable palm oil. Members of RSPO, and participants in its activities come from many
different backgrounds, including plantation companies, manufacturers and retailers of palm oil
products, environmental NGOs and social NGOs and from many countries that produce or
use palm oil. The principal objective of RSPO is “to promote the growth and use of
sustainable palm oil through co-operation within the supply chain and open dialogue between
its stakeholders”.
At the first Roundtable Meeting on Sustainable Palm Oil (RT1) held in Kuala Lumpur in
August 2003, it was identified that the Roundtable needs a credible definition of sustainable
palm oil production and use. It was also agreed that sustainable production of palm oil implies
legal, economically viable, environmentally appropriate and socially beneficial management
and operation.
The first phase of this development process was the production of a report in March 2004 1.
This was produced by a Technical Group convened by the Organising Committee of the
Roundtable, and set out the framework for drafting criteria together with a suggested process
for developing the final criteria.
The second phase is to develop a final set of principles and criteria for sustainable palm oil.
The Executive Board of RSPO has appointed a Criteria Working Group (CWG) to oversee
this process which will include:

Development of the global principles and criteria including guidance;

Development of guidance on national interpretation of the principles and criteria;

Guidance on governance of the use of the principles and criteria and associated claims.
The draft principles and criteria cover legal, economic, technical, environmental and social
aspects of palm oil production. They are intended to be globally applicable and to cover both
existing plantations and the development of new plantations.
The development is expected to take approximately 12 months. The development process 2
has been designed to ensure that there is considerable opportunity for input from any
interested person or organisation. RSPO regards it is essential that the principles and criteria
are developed with wide stakeholders input. This means that any interested stakeholder
can provide input into the principles and criteria. This document is the first draft of the
principles and criteria and is available for public comment until 25th January 2005.
1
Framework for Drafting Criteria for Sustainable Oil Palm: A discussion paper to begin the process of
developing criteria for the Roundtable on Sustainable Palm Oil. March 2004. Available from the RSPO
website www.sustainable-palmoil.org.
2
The process and procedures that will be followed in developing the criteria are described in the
document entitled “Process and procedures for the development of international criteria for sustainable
palm oil”, available from the RSPO website www.sustainable-palmoil.org.
Introduction
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If you wish to provide any input into this process, please send your comments to
info@proforest.net or by post to ProForest, 58 St Aldates, OX1 1ST Oxford, UK.
The closing date for commenting is 25 January 2005.
1.1. Overview of this document
The document contains the following sections:

Section 2: Principles and Criteria for Sustainable Palm Oil. This section includes the draft
principles and criteria and can be used either to get an overview of the criteria and the
way they are organised or for comment by those who wish to comment at a broad level.

Section 3: Guidance on fulfilling the criteria. This section includes a re-statement of the
Principles and Criteria, but with draft text of the detailed guidelines for fulfilling the
criteria. This can be used by those who wish to comment in detail on the criteria.

Section 4: General issues for the CWG. This includes issues on smallholders, pilot
projects and implementation of the criteria.

Appendix 1: this contains proposed definitions of some of the terms used in the principles
and criteria.

Appendix 2 outlines some key social principles and criteria from international standards
and conventions.
The principles and criteria are at an early stage of development, and the CWG is particularly
aware that some issues require considerable refinement, including:

Smallholders3. The CWG regards it as essential that smallholders are not excluded from
production of palm oil which meets the principles and criteria. However, in their current
form, many of the criteria would be very difficult for smallholders to apply or do not fully
apply to smallholders. Solutions need to be found including consideration of whether
some criteria do not apply to smallholders; developing separate criteria for smallholders;
and exploring the extent to which criteria can be implemented at the scale of smallholder
schemes.

Precision of wording. Many general terms used in the criteria remain to be fully defined
by the CWG, in terms of what measurable performance indicators and benchmarks
plantation managers are expected to achieve. Where such terms have been identified as
needing further work they have been highlighted in Section 3 of the document. A further
issue related to wording is a general need to improve the precision and accuracy of the
wording for both the principles and the criteria.
These will be amongst the main tasks for the CWG immediately following the public
consultation period, and so suggestions on these issues are particularly welcome.
3
See Annex 1 for a proposed definition of “smallholders”.
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2. Principles and criteria for sustainable palm oil
Sustainable palm oil production is based on economic, environmental and social viability,
which is delivered through:
Principle 1: Compliance with applicable laws and regulations
Criterion 1.1 There is compliance with all applicable local, national and ratified international
laws and regulations
Criterion 1.2 The right to use the land can be demonstrated
Criterion 1.3 The right to the land does not diminish the legal or customary rights of other
users
Principle 2: Management planning that aims to achieve long-term
economic and financial viability for plantation and mills
Criterion 2.1 Optimal productivity and quality of produce is achieved on planted land through
appropriate agronomic and management practices
Criterion 2.2 Plantation and mill practices are optimal to maintain production of high quality
CPO
Principle 3: Use of appropriate best practices in plantations and mills
Criterion 3.1 Plantation and mill operating procedures are appropriately documented and
consistently implemented and monitored
Criterion 3.2 Practices must maintain, and if necessary, improve, soil fertility at a level that
ensures high and sustained yield
Criterion 3.3 Practices must minimise and control erosion and degradation of soils
Criterion 3.4 Practices must maintain the quality and quantity of surface and ground water
Criterion 3.5 Pests, diseases, weeds and invasive introduced species are effectively
managed whilst pesticide use is minimised through using appropriate
Integrated Pest Management (IPM) techniques
Criterion 3.6 Pesticides banned by national legislation shall not be used and any other
herbicides and pesticides should be used in a way that does not endanger
health or environment
Criterion 3.7 The on and off-site impacts of the plantation and mill management activities
should be adequately assessed, controlled and monitored
Criterion 3.8 An assessment of the social impacts, both positive and negative, of proposed
operations in existing plantations is carried out and the results are incorporated
into management planning and implemented in operational procedures
Criterion 3.9 There is appropriate implementation of occupational health and safety
requirements
Criterion 3.10 All staff, workers and smallholders are adequately trained and competent
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Principle 4: Environmental responsibility and conservation of natural
resources and biodiversity
Criterion 4.1 An understanding of the plant and animal species and habitats that exist inside
and around the plantation shall be established
Criterion 4.2 A plan to conserve and restore biodiversity in and around the plantation shall
be developed, implemented and monitored
Criterion 4.3 Waste from the plantation and the mill is reduced, recycled and re-used and
any waste produced is disposed of in an environmentally and socially
responsible manner
Criterion 4.4 Efficiency of energy use should be maximised whilst minimising fossil fuel use
Criterion 4.5 Use of fire for waste disposal and for preparing land for replanting is avoided
except in exceptional circumstances and should always be consistent with the
ASEAN Policy on Zero Burning
Criterion 4.6 Plans to reduce pollution and emissions, including greenhouse gases, should
be developed, implemented and monitored
Principle 5: Responsible consideration of employees and of individuals
and communities affected by plantations and mills4
Criterion 5.1 There is an effective, open and transparent method for communication and
consultation between companies, local communities and other affected or
interested parties
Criterion 5.2 There is a documented system for dealing with complaints and grievances
which is implemented and effective
Criterion 5.3 Any negotiations concerning compensation for loss of legal or customary rights
should be dealt with through a documented system that enables local
communities and other stakeholders to express their views through their own
representative institutions or other forms of collective bargaining
Criterion 5.4 All workers have acceptable pay
Criterion 5.5 All workers have acceptable conditions and the rights of workers to voluntarily
organise and negotiate with their employers shall be guaranteed
Criterion 5.6 Child labour is not used unless children are involved as part of small family
owned and run enterprises and under adult supervision or an integrated
education programme
Criterion 5.7 Plantations and mills deal fairly and transparently with smallholders and other
local businesses
Criterion 5.8 Plantations and mills contribute to local development wherever possible
4
A document was presented during the CWG meeting that summarises the main social issues that
should be covered in the RSPO principles and criteria. This is included as Appendix 2. Consideration
and appropriate incorporation of these into the principles, criteria and guidance will form an important
part of the CWG’s forthcoming work.
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Principle 6: Commitment to continual improvement in all areas of
activity
Criterion 6.1 Plantation companies should regularly monitor and review their activities and
develop and implement action plans that ensure continual improvement in all
operations
Principle 7: Responsible development of new plantations
Criterion 7.1 A comprehensive assessment of impacts or formal environmental impact
assessment shall be undertaken prior to establishing new plantations or
expanding existing ones and the results incorporated into plans and operations
Criterion 7.2 Soil and topographic surveys and site planning should be conducted prior to
the establishment of plantations and the results of these should be
incorporated into plans and operations
Criterion 7.3 Primary forest and any area containing one or more High Conservation Values
must not be converted to plantation
Criterion 7.4 Extensive planting on steep, marginal and fragile soils is avoided
Criterion 7.5 A comprehensive, participatory social impact assessment is carried out for all
new plantings and the results are incorporated into all planning and operations
Criterion 7.6 No plantations shall be established on indigenous peoples’ land without their
free, prior and informed consent as expressed through their own representative
institutions
Criterion 7.7 Customary rights and sacred sites are recognised and respected
Criterion 7.8 Local people are fairly compensated for land acquisitions
Criterion 7.9 Use of fire in the preparation of new plantations is avoided other than in specific
situations that are consistent with the ASEAN Policy on Zero Burning
Principle 8: Commitment to transparency
Criterion 8.1 Plantation managers should provide full information to other stakeholders,
except where this is prevented by commercial confidentiality or where
disclosure of information would result in negative environmental or social
outcomes
2.1. Proposed additional elements
Additional proposed criteria
It has been suggested at one or more stages during the development of the principles and
criteria for sustainable palm oil that the following issues should be included as additional
criteria. The CWG has not, as yet, had the opportunity to discuss these in detail but welcome
further suggestions on the issues of:

Whether there should be a criterion dealing with ‘retrospectivity’ for plantations that did
not meet the criteria for land acquisition/forest conversion in the past, to prevent
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companies taking advantage of recent, unsustainable activities. Possible ‘cut-off’ dates
include: date of publication of the final criteria, date of joining the Roundtable, date of the
first Roundtable meeting. An alternative suggestion is that plantations that have been
established without regard to these criteria could provide compensation activities, such
as funding conservation work in nearby protected areas, etc.

Further detailed criteria on financial and economic aspects.

A criterion dealing with the responsibility of core plantations to build the capacity of
smallholders and other third parties from whom they receive fruit. Suggested wording
was: “Mills purchasing fruit from third-party suppliers (smallholders or other plantations)
should (have an obligation to?) provide training (guidance?) to help (encourage?) those
suppliers to meet the sustainability criteria”

Whether the use of GMOs (genetically modified organisms) should be avoided (note that
GM palm oil is not produced or used commercially at present).
Requirements for users of sustainable palm oil
The above criteria concern sustainable production of palm oil. However, it was noted in the
first meeting of the Criteria Working Group that one of the objectives of RSPO is to develop
criteria for ‘the sustainable production and use of palm oil’. Although no consensus was
reached on the issue, it was recognised that the Criteria Working Group would have to
consider the possibility of developing requirements for RSPO members who use palm oil.
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3. Proposed Guidance for fulfilling the criteria
This section includes the draft text of the detailed guidelines for fulfilling the criteria. The Criteria Working Group have not yet had the opportunity to
discuss this guidance in detail, and so it is largely derived from the “Framework for Drafting Criteria for Sustainable Oil Palm: A discussion paper to begin
the process of developing criteria for the Roundtable on Sustainable Oil Palm” (available from www.sustainable-palmoil.org). It is recognised that the
guidance will require considerable further work in terms of both content and layout. Any comments and suggestions would be gratefully received.
Principle 1: Compliance with applicable laws and regulations
Criterion
Proposed Guidance
Criterion 1.1 There is compliance with all applicable local,
national and ratified international laws and regulations
Plantation companies should have a system to ensure that plantation and mill managers have information on all
laws applicable to their activities, a mechanism for ensuring that they are implemented and a system for tracking
any changes.
Smallholders should be aware of all relevant legal requirements and be implementing them.
There should be no evidence of non-compliance with the law.
Issues raised for further discussion:
The CWG should provide lists of the applicable laws for each of the major producer countries, and note where
these overlap with other principles.
In some producer countries there are contradictions and inconsistencies between laws that may make full legal
compliance effectively impossible. Guidance should be developed on how managers should address this.
Need to consider smallholders, and how legal compliance will be assessed or controlled.
Criterion 1.2 The right to use the land can be
demonstrated
The right of the plantation company or smallholder to the land must be clear. These should be demonstrated
through documents showing legal ownership or lease, history of land tenure and the actual legal use of the land.
Issues raised for further discussion:
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The CWG should consider the extent to which documentation should be supported by other information, such as
lack of challenges to land ownership or use right, which can be adjudicated by objective third party organisations
(e.g., LBH in Indonesia).
Criterion 1.3 The right to the land does not diminish the
legal or customary rights of other users
Note: this criterion should be considered in conjunction with Criteria 5.1 and 7.1
Where there are other potential rights, the manager must demonstrate that these rights are understood and are
not being threatened or reduced.
The CWG must define ‘customary rights’ (see ‘Proposed definitions’ in Appendix 1) The CWG should provide
guidance on how managers can demonstrate that other potential rights are not being threatened or reduced, and
provide lists of the appropriate legal documents for each of the major producer countries.
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Principle 2: Management planning aims to achieve long-term economic and financial viability for plantation and mills
Criterion
Proposed Guidance
Criterion 2.1 Optimal productivity and quality of produce is
achieved on planted land through appropriate agronomic
and management practices
Whilst it is recognised that long-term profitability is also affected by factors outside the direct control of plantation
managers, management practices and budgets for plantations and mills should take into account the need for
long-term economic production and viability of the plantation.
Planting material should be of high quality and include a diversity of high yielding strains. Where planting
material is being bought in, it should always be obtained from reputable or accredited suppliers.
Nursery management should include implementation of a programme of Integrated Pest Management (IPM)
programme, sustainable water use (including protection of water sources used for irrigation and avoidance of
pollution) and avoidance of soil pollution or degradation and the use of organic residues as far as is appropriate.
Nurseries should avoid the use of topsoil from forests or other areas of natural vegetation.
Harvesting should be cost-effective. Market requirements for quality should be met through rapid transport of
fruits to minimise degradation; minimising contaminants and residues and through appropriate milling operations.
Plantations should have a system to improve practice in line with new information and techniques.
For smallholder schemes, the scheme management will be expected to provide their members with information
on significant improvements.
Issues raised for further discussion:
The CWG should consider define (or refer to existing) agronomic best practices in each major production country
and also consider appropriate practices for smallholders.
How does this apply to smallholders?
Criterion 2.2 Plantation and mill practices are optimal to
maintain production of high quality CPO
Issues raised for further discussion:
The CWG will need to define quality requirements for CPO and how this should be monitored. Should food
safety be included in the guidance?
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Principle 3: Use of appropriate best practices in plantations and mills
Criterion
Proposed Guidance
Criterion 3.1 Plantation and mill operating procedures are
appropriately documented and consistently implemented and
monitored
Documented procedures should cover operational planning, field operations, monitoring and internal
auditing.
For individual smallholders documentation requirements will need to be less rigorous.
Issues raised for further discussion:
The CWG should produce guidance for both large plantations and smallholders as to what types of
procedure should be documented but not uniform guidelines or templates as individual practices will differ,
and many large companies already have their own documentation systems in place.
Criterion 3.2 Practices must maintain, and if necessary,
improve, soil fertility at a level that ensures high and sustained
yield
This should include practices such as:

Maintaining long-term soil organic matter content;

Minimising the period that soil remains bare;

Windrowing or chipping;

Minimal burning (see criterion 4.5 and 7.9)

Controlling soil compaction;

Managing soil pH;

Managing soil salinity;

Returning nutrients to the field (empty fruit bunches, effluent, sludge, trunks);

Fixing N with legumes;

Determining fertiliser need by soil and leaf analysis, field experimentation and element recycling
calculations. The correct dose should not be exceeded.
Issues raised for further discussion:
The CWG should decide whether to collate best practice, or refer to specific documents that contain
guidance on best practice and appropriate monitoring. Useful sources include books by Corley & Tinker,
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Criterion
Proposed Guidance
2003, “The Oil Palm”; Turner & Gillbanks, 2003, “Oil palm cultivation and management”, 2nd Edn. ISP,
Kuala Lumpur; the chapter by Singh et al. in “Oil Palm and the Environment,” 1999, MOPGC, Kuala Lumpur,
Rankine and Fairhurst (1998) Field handbook - Oil Palm Series, Vols I-III. Potash and Phosphate Institute,
Singapore; World Bank guidelines, Unilever guidelines.
Criterion 3.3 Practices must minimise and control erosion and
degradation of soils
Ground clearance must be planned and implemented to minimise erosion (e.g., by underplanting or limiting
the size of individual planting blocks where these are appropriate)
Ensure adequate ground cover throughout plantation and avoidance of over-spraying of herbicides
Irrigation must be designed and implemented to minimise erosion
Physical control of erosion wherever needed, including terracing where appropriate.
Appropriate design and maintenance of roads
Avoiding planting on steeply sloping land or highly erodible soil-types
Issues raised for further discussion:
The CWG should consider defining the maximum acceptable slope gradient for planting (one suggestion is
25, although this will vary depending on soil type) and clear guidance on when terracing is recommended.
The CWG should decide whether to collate best practice, or refer to specific documents that contain
guidance on best practice. Suggested sources include: “Guidelines for the prevention and control of soil
erosion and siltation in Malaysia” by Dept. of Environment, October, 1996; Turner & Gillbanks, 2003, “Oil
palm cultivation and management”, 2nd Edn. ISP, Kuala Lumpur; Cranfield (“Earth Roads”), FAO guidelines
on road design and maintenance, and others.
Criterion 3.4 Practices must maintain the quality and quantity
of surface and ground water
Plantations should have a water management plan which addresses both the use of water within the
plantation and the effect of water use on local water resources.
Ensure that the water supply for nurseries and for field irrigation if it is done, should be renewable and
should not use water at the expense of downstream users.
Water courses should be protected, including maintaining appropriate riparian buffer zones along all bodies
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Criterion
Proposed Guidance
of water.
Avoid contamination of water through run-off of soil (see also erosion), nutrients, chemicals, inadequate
disposal of waste. Contamination of ground water by preventing the build-up of nutrient or other residues in
permeable soil. Mill effluent must be appropriately treated and water quality of the discharge should be
monitored regularly and is compliant with national regulations.
Issues raised for further discussion:
The CWG should consider the need for more specific guidance. Suggested sources of guidance include
Unilever guides, NBPOL guidelines, Australian Standard 1940, etc.
Should introduce the notions of efficiency of use/renewability of source.
Criterion 3.5 Pests, diseases, weeds and invasive introduced
A programme to monitor pests and diseases should be in place. Use Integrated Pest Management (IPM),
species are effectively managed whilst pesticide use is
minimised through using appropriate Integrated Pest
Management (IPM) techniques
incorporating cultural, biological, mechanical or physical methods to minimise use of pesticides. Efforts
should be made to reduce the toxicity of those pesticides that are used. Legally protected animal species
that may kill or damage oil palms are dealt with by non-destructive means (e.g., electric fencing, chasing,
loud noises, etc).
Fire should only be used in site preparation for replanting where an assessment has demonstrated that it is
the most effective and least environmentally damaging option for minimising the risk of severe pest and
disease outbreaks. In ASEAN countries, managers should comply with the ‘Guidelines for the
implementation of the ASEAN policy on zero burning’.
Set targets for reducing the use, risk and impacts of pesticides and herbicides and monitor actual usage and
impacts.
Issues raised for further discussion:
The CWG should include lists of the major pests and diseases for each of the producer continents, with
recommended approaches to their control and/or reference to publications or institutes that can provide
appropriate guidance. These must be open to regular update and allow for innovation Suggested guidelines
include ‘Integrated Pest Management in Oil Palms’ (published by Golden Hope), national research and
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Criterion
Proposed Guidance
development institutes, several company BMPs.
Should introduce a minimum standard e.g. from PAN for guidelines
Criterion 3.6 Pesticides banned by national legislation shall not
be used and any other herbicides and pesticides should be
used in a way that does not endanger health or the
environment
Select pesticides with due regard to environmental and health risks.
Pesticide and herbicide use should be in accordance with national laws and regulations.
Develop effective methods of application, handling, training, control, supervision, storage and disposal that
deliver safe practice. Ensure provision and use of safety equipment in compliance with national Health and
Safety regulations.
Waste material has to be properly disposed of, based on a special chemical (pesticide) management
programme that needs to be fully understood by workers and managers. A monitoring programme to
supervise uses of chemical products has to be implemented which includes data collection and analysis for
technical decisions and possible pesticide applications.
Issues raised for further discussion:
The CWG should provide lists of commonly available WHO class 1a and 1b chemicals and their common
names for each producer country and append nationally banned chemicals for the major producer countries,
or refer to where this information is available (i.e., the WHO website). Suggested guidance includes WHO,
national laws and regulations, HACCP, GIFOR, the manual published by the British Crop Protection Council
and the Royal Society of Chemistry.
CWG should consider using guidance such as Stockholm Convention on Persistent Organic Pollutants
(2001); FAO International Code of Conduct on the Distribution and Use of Pesticides (1985, Revised 2002);
Rotterdam Convention on Prior and Informed Consent Procedure for Certain Hazardous Chemicals and
Pesticides in International Trade (1998).
Should include technical components for smallholders.
‘Minimise’ should refer to using as per instructions on the label.
Criterion 3.7 The on and off-site impacts of the plantation and
Potential environmental, social and economic impacts should be assessed wherever there is the possibility
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Criterion
Proposed Guidance
mill management activities should be adequately assessed,
controlled and monitored
of serious negative effects. This includes activities such as:

building new roads, processing mills or other infrastructure

putting in drainage or irrigation systems

replanting or expansion of planting area

disposal of mill effluents
The results of assessments must be incorporated into management planning and these plans be
implemented in the plantation and actions taken to reduce or mitigate serious negative effects.
Particular attention should be paid to ensuring that hydrological functions are assessed and maintained.
For smallholder schemes, the scheme management has the responsibility to do this. It will not apply to
individual smallholders.
Issues raised for further discussion:
The CWG should consider adding further guidance, linked to ISO 14001 Environmental Management
System standard or similar. They should also consider the size below which smallholder plantations need
not fulfil this criterion (e.g., 50 hectares has been suggested).
The term ‘adequate’ needs clear definition.
Criterion 3.8 An assessment of the social impacts, both
positive and negative, of proposed operations in existing
Assessment of social impacts needs to be sufficient to ensure that all actual and potential impacts (both
positive and negative) are identified.
plantations is carried out and the results are incorporated into
management planning and implemented in operational
procedures
Management plans should incorporate the findings of the social impact assessment and these plans should
be implemented in operational procedures.
Customary rights and sacred sites should be identified in consultation with local communities and be
respected. If it is agreed with the community that such sites are taken over, the must be compensated for in
a fair and equitable manner.
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Criterion
Proposed Guidance
Where the plantation includes an outgrower scheme the impacts of the scheme and the implications of the
way it is managed should be given particular attention.
Individual smallholders will not be required to conduct formal social impact assessments.
Issues raised for further discussion:
The CWG should consider listing the types of activities in existing plantations that are likely to have
particularly important social impacts. The CWG should also consider identifying appropriate equitable
decision making procedures, pricing mechanisms for both the FFB and inputs/services where these are
provided by a “nucleus” estate/plantations.
Need to consider the issue of representation of community using the standard of Free, Prior and Informed
Consent for decision that may affect local people (including indigenous peoples, transmigrants)
Different countries have different regulations/rules for land acquisition which need to be taken into account.
Need to be clearly defined what laws to be used in the issue of land acquisition for example, whether it
would be state or customary laws.
Terms and condition for land acquisition should also be clearly defined
Social impact assessment (SIA) beyond the plantation/environmental impact should be defined further.
Criterion 3.9 There is appropriate implementation of
occupational health and safety requirements
All operations where health and safety is an issue have been identified and a plan developed and
implemented to address the identified issues.
All workers, including contractors, involved in the operation have been adequately trained and equipped.
Plantation companies should ensure that the workplaces, machinery, equipment and processes under their
control are safe and without undue risk to health. Plantation companies should ensure that the chemical,
physical and biological substances and agents under their control are without undue risk to health when
appropriate measures are taken.
Smallholders do not allow unsafe working practice.
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Criterion
Proposed Guidance
Issues raised for further discussion:
The CWG should provide lists of (or refer to) national Health and Safety regulations for the major producer
countries, ILO Occupational Safety and Health Convention, 1981 (No.155), ILO Code of Practice on Safety
and Health in Forestry Work, Unilever guidelines, HACCP, etc.
The terms ‘appropriate’ and ‘requirements’ need clear definition.
All precautions attached to the products should be properly observed and applied to the workers.
Should include Agrochemical Code of Conduct (FAO Code of Conduct for the sale and distribution of
agrochemical products 2002, revision) in the guidance.
It is important to have a proper training and education before, during and after events in the plantation to
minimise the hazardous impact.
Criterion 3.10 All staff, workers and smallholders are
adequately trained and competent
Training and support should be given to all staff, workers and contractors in plantations and mills to
undertake their jobs and responsibilities well. Workers on smallholder plots also need adequate training and
skills and this can be achieved through extension activities of plantation companies who purchase fruit from
them, by smallholder’s organisations, or through collaboration with other institutions and organisations.
Large organisations should have a formal training programme that includes regular assessment of training
needs and documentation of the programme.
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Principle 4: Environmental responsibility and conservation of natural resources and biodiversity
Criterion
Proposed Guidance
Criterion 4.1 An understanding of the plant and animal species
and habitats that exist inside and around the plantation shall
be established
Information should include:

Presence of protected areas adjacent to or that could be significantly affected by the plantation

Conservation status (e.g., IUCN status), legal protection, population status and habitat requirements of
threatened, endangered and endemic species in the plantation, that occur in adjacent to the plantation
or that could be significantly affected by the plantation

Identification of rare and threatened habitats and ecosystems in the plantation, that occur in adjacent to
the plantation or that could be significantly affected by the plantation
Issues raised for further discussion:
The CWG should refer managers to appropriate sources of information (e.g., IUCN lists of threatened
species, national wildlife protection legislation, authorities responsible for protected areas, information on
threatened ecosystems). The CWG should also summarise existing guidelines for appropriate, cost-effective
biodiversity surveys.
For elephants and other species that move, what is role of national bodies?
Criterion 4.2 A plan to conserve and restore biodiversity in and
around the plantation shall be developed, implemented and
monitored
Fulfil legal requirements relating to the protection and management of species listed in national or local
regulations.
Protect remaining natural vegetation including riparian areas, steep slopes, forest fragments, conservation
set-aside/reserve areas and other areas of High Conservation Value.
Restore areas with conservation potential to semi-natural vegetation, particularly riparian strips, corridors to
link areas of natural vegetation, enlargement of existing areas of natural vegetation or areas that were
originally planted but which are now recognised as unsuitable (e.g., steep slopes).
Control any inappropriate hunting, fishing or collecting activities and develop responsible measures to
resolve human-wildlife conflicts (e.g., incursions by elephants)
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For medium and large plantations, a conservation plan should be developed and implemented, aimed at
increasing the biodiversity in the plantation and all personnel working in the plantations, their families and
dependants should be aware of the biodiversity importance and is taking part of conservation, monitoring
and supporting conservation programmes.
For smallholder schemes, the scheme management should do this. Individual smallholders will not be
expected to implement a conservation plan.
Issues raised for further discussion:
The CWG should define the minimum acceptable width of riparian zones, size (or proportions of plantation
area) of set-aside, appropriate restoration activities and guidance on development and implementation of
conservation plans. Suggested guidance includes ‘Business and Biodiversity: The Handbook for Corporate
Action’ 2002, WBCSD, IUCN and Earthwatch, the Unilever guidelines and the scientific literature on
biological corridors, etc.
Should include expertise to carry out biodiversity work in plantations.
The term ‘biodiversity’ is too broad. Should specify what categories of species or ecosystems are referring
to.
Smallholders would not have capacity to address some of the larger biodiversity related issues.
Criterion 4.3 Waste from the plantation and the mill is reduced,
recycled and re-used and any waste produced is disposed of
in an environmentally and socially responsible manner
A policy of minimal wastes and emissions should be promoted through improving the efficiency of resource
utilisation (e.g., achieving high extraction efficiency to reduce oil in EFB (empty fruit bunches) and effluent)
and recycling wastes as nutrients (e.g., EFB) or converted into value-added products (e.g., through animal
feeding programmes).
Issues raised for further discussion:
The CWG should provide guidance and/or refer to existing best practice guidelines on recycling and re-use
of nutrients, managing effluent ponds, increasing mill extraction efficiency and appropriate disposal of
wastes that cannot be recycled. Guidance should also be provided on appropriate ways for nutrients in EFB
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and effluent to be returned smallholders from the mill that processes their fruit. Suggested guidance
includes Unilever guidelines, MPOA best practices and ample literature.
The term ‘socially responsible manner’ needs clear definition.
Criterion 4.4 Efficiency of energy use should be maximised
whilst minimising fossil fuel use
Develop and implement a strategy to become as close to self-sufficient as possible in terms of fuels,
including: maximising fuel burning efficiency; using renewable energy sources wherever possible (e.g., fibre
and shell).
Large plantations should assess the energy balance of their operations and energy efficiency of their
operations.
Issues raised for further discussion:
The CWG should provide more detailed guidance, e.g., from MPOA guidelines on disposal of waste water
and emissions.
Criterion 4.5 Use of fire for waste disposal and for preparing
land for replanting is avoided except in exceptional
circumstances and should always be consistent with the
ASEAN Policy on Zero Burning
Fire should be used only when permitted “Guidelines for the Implementation of the ASEAN policy on zero
burning’” and where an assessment has demonstrated that it is the most effective and least environmentally
damaging option for minimising the risk of severe pest and disease outbreaks.
Issues raised for further discussion:
The extent that smallholders can comply with this, especially in Africa, is unclear, at least without
extension/training programmes.
The term ‘exceptional’ needs clear definition.
Criterion 4.6 Plans to reduce pollution and emissions,
including greenhouse gases, should be developed,
implemented and monitored
An assessment of all polluting activities should be conducted, including gaseous emissions, particulate/soot
emissions and effluent. A plan should be developed and implemented to reduce the company’s pollution and
the progress of this plan is regularly monitored.
Issues raised for further discussion:
The CWG should consider providing a simple checklist of activities that should be addressed.
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Principle 5: Responsible consideration of employees and of individuals and communities affected by plantations and
mills5
Criterion
Proposed Guidance
Criterion 5.1 There is an effective, open and transparent
method for communication and consultation between
companies, local communities and other affected or
For plantations this should include a documented strategy, a nominated manager responsible, a list of
stakeholders, records of all communication and records of actions taken in response to input from
stakeholders.
interested parties
Communication and consultation mechanisms should be designed in collaboration with local communities and
other affected or interested parties.
For smallholder schemes, the scheme management should do this. For individuals, it does not apply.
Issues raised for further discussion:
The CWG should consider providing guidance on stakeholder analysis and identification of key stakeholders,
or drawing up a list of the types of stakeholder that should be consulted (e.g., local communities, provincial
government, environmental and social working locally, other special interest groups, etc.).
Consideration should be given to the existence/formation of multi-stake holders forum.
CSR should be clearly defined in SAI.
Need to define the term of “local people” (whether it applies to smallholders, people around the plantation,
indigenous peoples, transmigrant, etc.)
Should consider to use the existing local mechanism, such as village cooperative in Indonesia case to
negotiate and bargain and file complaints over compensation and other terms affected the community.
Proposed to use similar forum developed by Malaysian growers as means for communication – Joint
A document was presented during the CWG meeting that summarises the main social issues that should be covered in the RSPO principles and criteria. This is
included as Appendix 2. Consideration and appropriate incorporation of these into the principles, criteria and guidance will form an important part of the
CWG’s forthcoming work.
5
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Consultative Committee - that could be useful for carrying out the SIA.
Communication should be conducted effectively with local people/community (in the principle of transparency
and openness) considering the psychological factors of the community, especially in the establishment of new
plantation but also in the operation of the existing ones.
Criterion 5.2 There is a documented system for dealing with
complaints and grievances which is implemented and
effective
The basis of the system must be to try to resolve disputes in a timely and appropriate manner. Both the
process by which a dispute was resolved and the results must be documented.
For smallholder schemes, the plantation company or associations will be responsible for this.
Issues raised for further discussion:
The CWG should consider providing guidance on this. Suggested guidance includes Unilever guidelines; ILO
guidelines on conflict resolution which includes: the right to information and participation in decision-making;
the right to organise and defend interest collectively; conflict resolution based on consultation and consensus;
effective access to judicial and administrative proceedings. Note ISO 9000 certification will ensure that
appropriate procedures are in place.
Criterion 5.3 Any negotiations concerning compensation for
loss of legal or customary rights should be dealt with
through a documented system that enables local
communities and other stakeholders to express their views
through their own representative institutions or other forms
Note: this should be considered in conjunction with Criteria 1.3 and 7.1
of collective bargaining
The process and outcome of any compensation claims should be documented and made publicly available.
Customary and local rights are identified and assessed and a system for identifying people entitled to
compensation is established. A system for calculating and distributing fair compensation is established and
implemented.
Issues raised for further discussion:
The CWG should consider the option of third party adjudication for such disputes.
Criterion 5.4 All workers have acceptable pay
Employees and contractors must have pay in accordance with national laws and regulations and collective
agreements between workers and employers, where applicable, and, in the absence of national regulations,
with international (ILO) guidelines.
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Pay meets or exceeds national minimum wage or a regional average if no minimum wage exists. Minimum
wage should be established and adjusted from time to time in consultation with relevant parties.
Issues raised for further discussion:
The CWG should consider whether it is appropriate to specify a minimum wage, which should apply in the
absence of a legal minimum wage or where the minimum wage is lower than this. Suggested guidance
includes the ILO Minimum Wage Fixing Convention, 1970 (No. 131). Elements to be taken into consideration
include: the needs of workers\and their families; the cost of living and changes therein; social security benefits;
the relative living standards of other groups; and economic factors, including requirements of economic
development and a high level of employment.
The concept of a living wage should be considered, with reference to ILO convention on Plantation Workers.
Criterion 5.5 All workers have acceptable conditions and the
rights of workers to voluntarily organise and negotiate with
their employers shall be guaranteed
Conditions of labour conditions in accordance with national laws and regulations and collective agreements
between workers and employers, where applicable, and, in the absence of national regulations, with
international (ILO) guidelines.
Labour laws and in many cases, union agreements or in their absence, direct contracts of employment
detailing payments and other conditions are available in the languages understood by the workers or
explained carefully to them by a senior company official.
Plantation companies provide adequate housing, medical, educational and welfare amenities to national
standard or above, where no such public facilities are available or accessible.
Issues raised for further discussion:
Issues relating to rights to organise, for groups like indigenous groups, etc. should be consistent with
international conventions.
Should include standards for developing world. ILO Conventions 87 and 98, Codex standards should be
acceptable as they are international standards.
The “musyawarah” (consensus – Indonesian term) mechanism should be adopted.
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Proposed Guidance
Complaints can be dealt within Joint Consultative Committees (JCC). Grievances may be internal (employees)
or external. Complaints should be clearly documented.
JCC can be used to spell out the procedures to be followed involving employees, smallholders, interest groups
and community outside the plantation.
Should consider the whole issues of non-discriminative principle and equal remuneration, just employment for
migrant workers and no forced labour. All these may well be placed into the new criterion for this component
should there is no appropriate ‘wording’ could be defined.
Criterion 5.6 Child labour is not used unless children are
involved as part of small family owned and run enterprises
and under adult supervision or an integrated education
The minimum age of workers will not be less than stated under national regulations.
programme
Smallholders should allow child labour only as part of family work conditions and only if permitted by national
Plantations establish and enforce a minimum age for workers and contractors.
regulations and where the working children have access to formal or informal education programmes.
Issues raised for further discussion:
The CWG should decide whether national regulations (which normally specify 14-15 years as the minimum
working age) are sufficiently strict or whether a universal minimum age of, for example, 16-18 years would be
more appropriate. Suggested guidance includes ILO Minimum Age Convention, 1973 (138) and Worst Forms
of Child Labour Convention 1999 (No. 82), Unicef, Free the Slaves, Unilever guidelines.
Should clearly define the minimum age and consider whether it follows the ILO convention (not less than 1518 years) and also adhere to the convention of children rights.
Should clarify working hours.
Criterion 5.7 Plantations and mills deal fairly and
transparently with smallholders and other local businesses
Pay on time. If requiring smallholders to change their practices to meet the RSPO Criteria, consider advance
payments for FFB so that they are able to invest in new practices.
Pay the agreed and fair price for produce and charge fair costs for services/inputs supplied to smallholders.
Ensure that both parties understand the contractual agreements they enter into.
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Proposed Guidance
Ensure contracts are fair, legal, as transparent as possible and that weak stakeholders are fully represented.
Issues raised for further discussion:
The CWG should consider providing guidance on how managers can establish a ‘fair’ price for produce and
service provision.
The term ‘fairly’ should be clarified.
Should consider how smallholders are protected in ‘free market’.
Also needs to consider the criteria for smallholders on access of information, access to mills and storage, fair
price/purchasing schemes that observes grading flexibility and quality unevenness, tenure security, equal
treatment for women involved in supply chain, respect the right to organise and representation in bargaining,
support the transportation, etc.
In case of nucleus plantation scheme involving the smallholding planters a clear profit sharing mechanism
should be clearly defined prior to the establishment of partnership with big corporations/companies.
Criterion 5.8 Plantations and mills contribute to local
development wherever possible
Develop local and national supply chains.
Use local and national goods and services where possible.
Where candidates for employment are of equal merit, preference should always be given to members of local
communities.
Encourage savings and local social investments. Ensure smallholders can become financially independent
and are not bonded by debt to the company.
A certain percentage of the plantation’s profit/turnover should be used for social development projects.
Issues raised for further discussion:
The CWG should consider whether to set a minimum quota for local employment. It should also consider what
proportion of a plantation’s profit or turnover (taking into account financial sustainability – how much can be
afforded) should be used for social development projects and whether this should be mandatory where local
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Proposed Guidance
taxes are levied.
The CWG will need to establish a definition of ‘local communities’.
Should adhere to the principles of transparency, openness and participation. Local communities should have
a right to negotiate and identify their own priorities and needs as well on the different needs of men and
women. Should refer to the economic, social and cultural rights where both parties base decision for the most
appropriate intervention to support local development.
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Principle 6: Commitment to continual improvement in all areas of activity
Criterion
Proposed Guidance
Criterion 6.1 Plantation companies should regularly monitor and
review their activities and develop and implement action plans
that ensure continual improvement in all operations
Issues raised for further discussion:
This could include requirements to internal audits, annual reports to RSPO, part of the implementation
mechanism for the criteria (see Section 4.3 of this document), and could also include requirements from
other players in the supply chain (see Section 2.1).
Draft guidance for Principle 6: Commitment to continual improvement in all areas of activity
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Principle 7: Responsible development of new plantations
Criterion
Proposed Guidance
Criterion 7.1 A comprehensive assessment of impacts or formal
environmental impact assessment shall be undertaken prior to
establishing new plantations or expanding existing ones and the
results incorporated into plans and operations
Formal EIAs should be conducted where required by law. Where this is not required, a comprehensive
assessment of impacts should always be undertaken.
The potential impacts of all major proposed activities should be assessed prior to acquisition or prior to
development if already acquired.
The assessment should include, as a minimum:

An assessment of High Conservation Values that could potentially be destroyed or degraded by the
plantation that is conducted according to accepted best practice, including multi-stakeholder
consultation;

Assessment of potential effects on adjacent natural ecosystems of planned developments, including
whether plantation development or expansion will increase pressure on nearby natural ecosystems;

Identification of water courses and assessment of potential effects on hydrology of planned
developments. Measures should be planned and implemented to maintain the quantity and quality of
water resources;

Baseline soil surveys and topographic surveys, including the identification of marginal and fragile
soils, areas prone to erosion and slopes unsuitable for planting. Measures should be planned to
minimise erosion through appropriate use of heavy machinery, terracing on slopes, appropriate road
construction, rapid establishment of cover, protection of riverbanks, etc., and these should be
implemented;

Assessment of the impacts of all major activities, including planting, mill operations, roads and other
infrastructure.
Plans and field operations should be developed and implemented to incorporate the results of the
assessment.
Draft guidance for Principle 8: Commitment to transparency
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Smallholders will not normally be required to conduct formal Environmental Impact Assessments.
Issues raised for further discussion:
The CWG should decide what it considers to be acceptable practise for EIAs – what they need to cover
and in how much detail. Suggested references include: “Environmental Impact Assessment (EIA) for Oil
Palm Plantation Development”, Third draft, November, 2000 by the Environmental Conservation
Department (ECD); Paramanathan et al (2000); World Bank Operational Guidelines OP4.01 on
Environmental Assessment (guidelines OP 4.36 and OP 4.04 may also be useful), FEDEPALMA
guidelines, NBPOL’s guidelines for new developments.
The CWG must also decide the size of new plantation above which an EIA is required. Suggestions range
from 50 to 200 hectares; alternatively, this size threshold could be left to national legislation.
The CWG should also consider the extent to which proposed new plantations are required to demonstrate
that the economic benefits of the development (in terms of local income generation, infrastructure, etc)
outweigh the environmental costs.
Should include participatory environmental assessments.
Criterion 7.2 Soil and topographic surveys and site planning
should be conducted prior to the establishment of plantations
and the results of these should be incorporated into plans and
operations
Site selection should be done on the basis of adequate information on climate, soil and topography.
Soil surveys should be adequate to establish the suitability of land for oil palm cultivation over several
rotations, and should include information on soil types, topography, rooting depth, moisture availability,
fertility and long-term soil sustainability. Soils unsuitable for planting (e.g., shallow or saline soils) or those
requiring special treatment (e.g., ultrabasic soils) should be identified.
Topographic surveys should be conducted to guide planning of drainage and irrigation systems, roads
and other infrastructure.
Vegetation and biodiversity surveys should be conducted to allow appropriate areas to be designated as
conservation set-aside.
Remote sensing and GIS techniques should be used by large plantation companies.
Draft guidance for Principle 8: Commitment to transparency
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Issues raised for further discussion:
The CWG should produce guidance for this criterion in the form of a checklist, based on details of soil
survey and classification, and other aspects of planning in: Paramanathan et al. (2000) and Corley &
Tinker (2003).
Would this criterion apply to smallholders?
Criterion 7.3 Primary forest and any area containing one or more
High Conservation Values must not be converted to plantation
Planting should not proceed on areas containing one or more High Conservation Value (refer to the
‘Proposed definitions’ in Appendix 1) or where planting would degrade High Conservation Values outside
the plantation.
Plantation development should actively seek to utilise degraded and abandoned agricultural land that
contains no High Conservation Values.
Plantation development should not put indirect pressure on forests through the use of all available
agricultural land in an area.
Issues raised for further discussion:
The CWG should accept the FSC definition of High Conservation Value Forest. It should consider
referring to existing tools for identifying HCVF, maps of HCVF and use existing national definitions where
these occur. The CWG may also consider collaborating with other bodies to draw up national
interpretations of HCVF in those major producing countries that do not currently have these.
Criterion 7.4 Extensive planting on steep, marginal and fragile
soils is avoided
Marginal and fragile soils should be identified prior to conversion to plantation.
Planting on extensive areas of peat soils > 3m deep and other fragile soils should be avoided.
Where limited planting on fragile and marginal soils is proposed, plans shall be developed and
implemented to protect them without incurring adverse impacts (e.g., hydrological) or significantly
increased risks (e.g., fire risk) in areas outside the plantation.
Issues raised for further discussion:
Draft guidance for Principle 8: Commitment to transparency
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Proposed Guidance
The CWG should consider listing soil types that on which planting should be avoided (especially peat
soils) as well as the proportion of plantation area that can include marginal/fragile soils.
The terms ‘extensive’, ‘marginal’ and ‘fragile’ need clear definition.
More work is needed for identifying this criterion, specifically regarding peat soils.
Criterion 7.5 A comprehensive, participatory social impact
assessment is carried out for all new plantings and the results
are incorporated into all planning and operations
Assessment of social impacts inside and outside the plantation needs to be sufficient to ensure that all
actual and potential impacts (both positive and negative) are identified and acted upon.
A comprehensive assessment of impacts must always be carried out for new plantations.
Where the plantation includes an outgrower scheme the impacts of the scheme and the implications of the
way it is managed should be given particular attention.
Plantation expansion should not diminish the food security of local people.
The results of the assessments must be used during management planning and implementation.
For smallholder schemes, the scheme management should do this. For individuals, it does not apply.
Issues raised for further discussion:
The CWG should consider listing unacceptable negative social impacts (e.g., displacement, loss of
resource availability, etc.). The CWG can obtain further guidance from the existing literature on social
impact assessment, Unilever guidelines, World Bank Operational Guidelines OP 4.1, OP 4.12, OP 4.20.
Criterion 7.6 No plantations shall be established on indigenous
peoples’ land without their free, prior and informed consent as
expressed through their own representative institutions
Criterion 7.7 Customary rights and sacred sites are recognised
and respected
Draft guidance for Principle 8: Commitment to transparency
Issues raised for further discussion:
Guidance should be developed based on the documents cited in Appendix 2 of this report.
Customary rights and sacred sites shall be identified in consultation with local communities and
individuals. Where establishment of plantations or plantation infrastructure would cause an unacceptable
degradation or loss of these (refer to the ‘Proposed definitions’ in Appendix 1), then the proposed
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development should not go ahead.
Where plantations are acceptable, management plans and operations should maintain sacred sites.
Customary rights should also be maintained as far as possible or compensation for their loss should be
given in a fair and equitable manner.
Agreements with individuals and local communities should be made without coercion or other undue
influence.
Issues raised for further discussion:
The CWG will have to define ‘customary rights’
The CWG can produce guidance based on ILO Convention 169 concerning the respect of traditional land
and resource rights and cultural values, LEI social criteria for customary people and land rights, plus FSC
Principles 2&3.
Criterion 7.8 Local people are fairly compensated for land
acquisitions
Customary and local rights are identified and assessed. A system for identifying people entitled to
compensation is established. A system for calculating and distributing fair compensation is established.
The process and outcome of any compensation claims should be documented and made publicly
available.
Ensure people who have lost access and rights to land for plantation expansion are given opportunities to
benefit from plantation development.
Issues raised for further discussion:
The CWG will need to establish a definition of ‘local people’ or provide guidance on how managers should
establish this. Clear definition for the term ‘fairly’ is needed.
Criterion 7.9 Use of fire in the preparation of new plantations is
avoided other than in specific situations that are consistent with
the ASEAN Policy on Zero Burning
Draft guidance for Principle 8: Commitment to transparency
Producers should comply with the “Guidelines for the Implementation of the ASEAN policy on zero
burning.”
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Principle 8: Commitment to transparency
Criterion
Proposed Guidance
Criterion 8.1 Plantation managers should provide full information
to other stakeholders, except where this is prevented by
commercial confidentiality or where disclosure of information
would result in negative environmental or social outcomes
Issues raised for further discussion:
Draft guidance for Principle 8: Commitment to transparency
This could include requirements for annual reports to RSPO, part of the implementation mechanism for
the criteria (see Section 4.3 of this document), and could also include requirements from other players in
the supply chain (see Section 2.1).
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4. General issues to be considered by the CWG
4.1. Smallholders
Many of the criteria do not fully apply to smallholders 6, or would be very difficult for
smallholders to apply. To ensure that the criteria do not become a barrier to smallholders
seeking to implement sustainable management of oil palm and supply markets for sustainable
palm oil, it will be extremely important to ensure that further development of the criteria
addresses this issue. This will involve consideration of both what it is appropriate to expect
from individual smallholders and what it is appropriate to expect from smallholder schemes in
order to implement the principles and criteria.
4.2. Pilot projects
The final version of the criteria must be clear and implementable. They must also ensure an
acceptable level of plantation management while not placing an unnecessary or unfair burden
on plantation managers. One way of trying to achieve this in practice is to undertake a series
of pilot projects using the draft criteria before they are finalised in order to understand:

How clear it is in practice exactly what must be done to meet each criterion.

How easy or difficult the requirements are to implement.

What the costs of implementation are likely to be in a range of situations.
Therefore, it is strongly recommended that a number of pilot projects are planned and
undertaken following the revision of the principles and criteria after this consultation process,
and that the results of the pilot projects are fed into the criteria development process.
4.3. Implementation of the criteria and control of claims
One of the forthcoming tasks of the CWG is to develop guidance for how the principles and
criteria should be implemented, including:

How verification of implementation of the principles and criteria should be done;

Possible mechanisms for linking plantations to product;

Use of claims concerning implementation;

The possibility of phased implementation of the criteria over a determined timescale,
provided that a number of critical criteria have already been met.
In the meantime, the CWG have suggested that no public claims should be made
regarding compliance with the RSPO Criteria for Sustainable Palm Oil pending official
publication of the rules governing their use by the RSPO Executive Board.
6
See Annex 1 for a proposed definition of “smallholders”.
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Appendix 1: Proposed Definitions
Customary rights: Rights which result from a long series of habitual or customary actions, which have
acquired the force of a law within a geographical or sociological unit7.
Environmental Impact Assessment: a process of predicting and evaluating the effects of an action or
series of actions on the environment, then using the conclusions as a tool in planning and decisionmaking.
High Conservation Value Forest (HCVF): The forest necessary to maintain or enhance one or more
High Conservation Values (HCVs):

HCV1. Forest areas containing globally, regionally or nationally significant concentrations of
biodiversity values (e.g. endemism, endangered species).

HCV2. Forest areas containing globally, regionally or nationally significant large landscape level
forests, contained within, or containing the management unit, where viable populations of most if
not all naturally occurring species exist in natural patterns of distribution and abundance.

HCV3. Forest areas that are in or contain rare, threatened or endangered ecosystems.

HCV4. Forest areas that provide basic services of nature in critical situations (e.g. watershed
protection, erosion control).

HCV5. Forest areas fundamental to meeting basic needs of local communities (e.g. subsistence,
health).

HCV6. Forest areas critical to local communities’ traditional cultural identity (areas of cultural,
ecological, economic or religious significance identified in cooperation with such local
communities).
(See: ‘The HCVF Toolkit’ – available from www.proforest.net)
ISO Standards: Standards developed by the International Organization for Standardization (ISO: see
http://www.iso.ch/iso).
Natural vegetation: Areas where many of the principal characteristics and key elements of native
ecosystems such as complexity, structure and diversity are present.
Plantation: The land containing oil palm and associated land uses such as infrastructure (e.g., roads),
riparian zones and conservation set-asides.
Primary Forest: A forest with the principal characteristics of native ecosystems such as complexity,
structure, and diversity and an abundance of mature trees, relatively undisturbed by human activity.
Restore: Returning degraded or converted areas within the plantation to a semi-natural state.
Smallholders: farmers growing oil palm, sometimes along with subsistence production of other crops,
where the family provides the majority of labour and the farm provides the principal source of income
and where the planted area of oil palm is usually below 50 hectares in size.
Stakeholders: An individual or group with an interest in, or affected by, the activities of an organisation
and the consequences of those activities.
Note that ‘customary rights’ does not lend itself readily to a formal definition. For example, customary
rights are dynamic and flexible (responding to drought, migration, colonialism, etc) and vary greatly
between different communities. The CWG should discuss this in detail.
7
Appendix 1
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Undue influence: The exertion by a third party of any kind of control such that a person signs a contract
or other agreement which, absent the influence of the third party, he would not have signed.
Use rights: Rights for the use of forest resources that can be defined by local custom, mutual
agreements, or prescribed by other entities holding access rights. These rights may restrict the use of
particular resources to specific levels of consumption or particular harvesting techniques.
Appendix 1
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Appendix 2: A Simple Guide to some Key Social Criteria to be considered by the RSPO
Criteria Working Group
Provided by Forest Peoples Programme and Sawitwatch
Principles
International Standards
Key Provisions
Summary of Protections
Just Land Acquisition
ILO Convention 169 (1989) on
Articles 13-19
Respect and safeguard rights to lands and natural resources traditionally
Indigenous and Tribal Peoples
Fair Representation and
Participation of Indigenous
occupied and used; respect for customs of inheritance; no forced removals;
compensation for loss and injury.
UN Convention on Biological
Diversity (1992)
Article 10c
Protect and encourage customary use of biological resources in accordance with
traditional practices.
ILO Convention 169 (1989) on
Indigenous and Tribal Peoples
Articles 6-9
Represent themselves through their own representative institutions;
consultations with objectives of achieving agreement or consent; rights to decide
and Tribal Peoples
No Forced Labour
8
their own priorities, retain their own customs and resolve offences according to
customary law (compatible with international human rights).
Convention on the Elimination of All
Forms of Racial Discrimination,
International Covenant on
Economic, Social and Cultural
Rights, InterAmerican Human
UN CERD Committee, UN
Committee on Social
Cultural and Economic
Rights, InterAmerican
Commission on Human
Free, Prior and Informed Consent for decision that may affect indigenous
peoples.
Rights System
Rights8
ILO Convention 29 (1930) Forced
Labour
Article 5
No concession to companies shall involve any form of forced or compulsory
labour
ILO Convention 105 (1957)
Article 1
Not make use of any form of forced or compulsory labour.
(This standard has been widely accepted as a ‘best practice’ standard by bodies
such as World Commission on Dams, Extractive Industries Review, Forest
Stewardship Council, UNDP, CBD, IUCN and WWF).
For details see www.forestpeoples.org
Appendix 2
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Principles
International Standards
Key Provisions
Summary of Protections
Articles 1-3
Abolition of child labour and definition of national minimum age for labour not
Abolition of Forced Labour
Protection of Children
ILO Convention 138 (1973)
Minimum Age
Freedom of Association and
Collective Bargaining
less than 15-18 years (depending on occupation).
ILO Convention 182 (1999) Worst
Forms of Child Labour
Articles 1-7
Abolition of child slavery, debt bondage, trafficking and procurement for
prostitution; suitable methods to monitor and enforce compliance.
ILO Convention 87 (1984) Freedom
of Association and Protection of
Articles 2-11
Freedom to join organisations, federations and confederations of their own
choosing; with freely chosen constitutions and rules; measures to protect the
Rights to Organise
Non-Discrimination and
Equal Remuneration
Just Employment of
Migrants
Appendix 2
right to organise
ILO Convention 98 (1949) Right to
Organise and Collective Bargaining
Articles 1-4
Protection against anti-union acts and measures to dominate unions; established
means for voluntary negotiation of terms and conditions of employment through
collective agreements
ILO Convention 141 (1975) Rural
Workers’ Organisations
Articles 2-3
Right of tenants, sharecroppers and smallholders to organise; freedom of
association; free from interference and coercion.
ILO Convention 100 (1951) Equal
Remuneration
Articles 1-3
Equal Remuneration for men and women for work of equal value.
ILO Convention 111 (1958)
Discrimination (Employment and
Occupation)
Articles 1-2
Equality of opportunity and treatment in respect to employment and occupation;
no discrimination on the basis of race, colour, sex, religion, political opinion,
national extraction or social origin.
ILO Convention 97 (1949)
Migration for Employment
Articles 1-9
Provision of information; no obstacles to travel; provision of health care; nondiscrimination in employment, accommodation, social security and remuneration;
no forced repatriation of legal migrant workers; repatriation of savings.
ILO Convention 143 (1975) Migrant
Workers (Supplementary
Provisions)
Articles 1-12
Respect basic human rights; protection of illegal migrants from abusive
employment; no trafficking in illegal migrants; fair treatment of migrant labour.
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Principles
International Standards
Key Provisions
Summary of Protections
Protection of Plantation
Workers9
ILO Convention 110 (1958)
Plantations
Articles 5-91
Protection of members of families of recruited workers; protection of workers’
rights during recruitment and transport; fair employment contracts; abolition of
penal sanctions; fair wages and conditions of work; no coercion or obligation to
use company stores; adequate accommodation and conditions; maternity
protection; compensation for injuries and accidents; freedom of association; right
to organise and collective bargaining; proper labour inspection; decent housing
and medical care.
Protection of Tenants and
Sharecroppers
ILO Recommendation 132 (1968)
Tenants and Sharecroppers
Articles 4-8
Fair rents; adequate payment for crops; provisions for well-being; voluntary
organisation; fair contracts; procedures for the settlement of disputes.
Protection of Smallholders
ILO Convention 117 (1962) Social
Policy (Basic Aims and Standards)
Article 4
Alienation with due regard to customary rights; assistance to form cooperatives;
tenancy arrangements to secure highest possible living standards.
Health and Safety
ILO Convention 184 (2001) Safety
and Health in Agriculture
Articles 7-21
Carry out risk assessments and adopt preventive and protective measures to
ensure health and safety wrt workplaces, machinery, equipment, chemicals,
tools and processes; ensure dissemination of information, appropriate training ,
supervision and compliance; special protections for youth and women workers;
coverage against occupational injuries and disease.
Control or Eliminate Use of
Dangerous Chemicals and
Pesticides
Stockholm Convention on
Persistent Organic Pollutants
(2001)
Articles 1-5
Prohibit and/or eliminate production and use of chemicals listed in Annex A (e.g.
Aldrin, Chlordance, PCB); restrict production and use of chemicals in Annex B
(e.g. DDT); reduce or eliminate releases of chemicals listed in Annex C (e.g.
Hexachlorobenzene).
FAO International Code of Conduct
on the Distribution and Use of
Article 5
Curtail use of dangerous pesticides where control is difficult; ensure use of
protective equipment and techniques; provide guidance for workers on safety
Pesticides (1985, Revised 2002)
measures; provide extension service to smallholders and farmers; protect
9
Convention 110 Article 1(1) defines a plantation as ‘an agricultural undertaking regularly employing hired workers…concerned with the cultivation or
production of…[inter alia] palm oil…’
Appendix 2
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Principles
International Standards
Key Provisions
Summary of Protections
workers and bystanders; make available full information on risks and protections;
protect biodiversity and minimise impacts on environment; ensure safe disposal
of waste and equipment; make provisions for emergency treatment for
poisoning.
Rotterdam Convention on Prior and
Informed Consent Procedure for
Certain Hazardous Chemicals and
Pesticides in International Trade
(1998)
Appendix 2
Articles 1, 5 and 6
Curb trade in banned and hazardous chemicals and pesticides; develop national
procedures for control of their use and trade; list banned and hazardous
chemicals and pesticides.
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