An International Multi Stakeholder Initiative Transforming Markets to - - PowerPoint PPT Presentation

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An International Multi Stakeholder Initiative Transforming Markets to - - PowerPoint PPT Presentation

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


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

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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

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“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,

  • n discovering palm oil.

What is palm oil?

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Why palm oil?

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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

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  • Palm oil is used in more than half of

packaged supermarket products today

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Growth of world’s palm oil production

10 20 30 40 50 1966 1976 1986 1996 2006

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palm oil soy rapeseed sunflower

  • thers

Palm oil – world’s number one vegetable oil

palm oil 30% Soy 29% Rapeseed 14% Sunflower 8% Others 19%

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Top palm oil producing countries

indonesia malaysia

  • thers

47% 39% 14%

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

(2009) Other Asia Europe China India Pakistan Other Africa Asia

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Advantages of palm oil

  • are highly efficient producers of oil
  • require less land than other oil crops
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Average yield per year (tonnes of

  • il per hectare)

1 2 3 4 Oil Palm Rapeseed Sunflower Soybean 3.68 0.59 0.42 0.36

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Why sustainable palm oil?

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  • More than 1 million

workers

  • More than 3 million

smallholders

  • Many more

household members

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  • Social issues in oil

palm cultivation

  • Land ownership

conflicts

  • Worker’s rights and

conditions

  • Treatment of

smallholders

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  • Environmental

issues in oil palm cultivation

  • Forest, peatland

conversion

  • Climate change
  • Biodiversity loss
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THE RSPO

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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.

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General Assembly (GA) Ordinary Members Affiliate Members Supply Chain Associates Executive Board (EB) Working Groups Working Groups Working Groups Working Groups Standing Committee

Trade and Traceability

Standing Committee

Finance

Standing Committee

Standards & Certifications

Standing Committee

Communications & Claims

Secretary General

Governance Structure

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8 PRINCIPLES & 39 CRITERIA

1. Commitment to transparency; NGO 2. Compliance with applicable laws and regulations; 3. Commitment to long-term economic and financial viability; 4. Use of appropriate best practices by growers and millers 5. Environmental responsibility and conservation of natural resources and biodiversity 6. Responsible consideration of employees and of individuals and communities affected by growers and mills (case study) 7. Responsible development of new plantings 8. Commitment to continuous improvement in key areas of activity

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Over 800 members from 50 countries

**As of April 2012 – Latest information can be accessed at http://www.rspo.org/en/membership_key_statistics

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Multi Stakeholder Membership

Banks & Investors , 10 Consumer Goods Manufacturers , 211 Environmental NGOs , 17 Growers , 104 Processors & Traders , 215 Retailers , 43 Social NGOs , 9

**As of April 2012 – Latest information can be accessed at http://www.rspo.org/en/membership_key_statistics

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Membership by country

UK 17% Malaysia 16% Indonesia 15% Germany 13% France 10% Netherlands 10% USA 7% Singapore 4% Switzerland 4% Australia 4%

**As of April 2012 – Latest information can be accessed at http://www.rspo.org/en/membership_key_statistics

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Where we are today

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  • 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

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  • Code of Conduct: “All

members will publicly commit to production, procurement and use of sustainable palm oil” – Annual Communications

  • n Progress
  • Grievance panel

supervises compliance

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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

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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

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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
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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)
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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

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Supply chain models

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Plantations Refiners & Blenders Ingredient Manufacturers Retailers Mill Product Manufacturers Storage, transport, shipping

The palm oil supply chain:

  • Many links
  • Potential for mixing

Smallholders

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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
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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
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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
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Milestones

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Consumer communication

RSPO trademark developed for

  • n/about-product communication

Rules for use, communication and licensing under development Trademark registration procedures begun in more than 60 countries Launched: June 2011

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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

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Latest info at: http://www.rspo.org/en/key_statistics

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Latest info at: http://www.rspo.org/en/key_statistics

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Latest info at: http://www.rspo.org/en/key_statistics

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Latest info at: http://www.rspo.org/en/key_statistics

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Latest info at: http://www.rspo.org/en/key_statistics

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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

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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

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In conclusion

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Key RSPO documents at www.rspo.org:

  • 1. Statutes
  • 2. Principles & Criteria
  • 3. Criteria: National Interpretations
  • 4. Code of Conduct
  • 5. Supply Chain Certification Systems
  • 6. Guidelines on Communication & Claims
  • 7. 2011 RSPO CSPO Growth Interpretation Narrative

http://www.rspo.org/en/key_documents

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

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RSPO Secretariat Kuala Lumpur, Malaysia WWW.RSPO.ORG Email : rspo@rspo.org