Certified Palm market Marie Lavialle-Piot Tropical Oil - - PowerPoint PPT Presentation

European overview: Certified Palm market

Marie Lavialle-Piot Tropical Oil Sustainability Lead, Cargill

Our foundation

Operating a global supply chain

Refining plants Mills Plantations

No Exploitation

• f rights of indigenous

people and local communities

Inclusion of smallholders

into sustainable palm supply chain

No Deforestation

• f High Conservation

value or High Carbon stock areas

No Development

• n peat

regardless of depth

Our commitments

Global Palm Sustainability update

100% TRACEABLE, TRANSPARENT & SUSTAINABLE PALM SUPPLY CHAINS BY 2020

Sustainable Plantations

Our own plantation practices are aligned with Cargill’s NDPE policy and uphold the highest standards

Smallholders

Smallholders in our supply chain are included, and engaged in sustainable practices.

.

Traceability

All palm oil volumes we produce, trade (ship & physically handle) and process will be traceable to sustainable mill and plantation level by 2020

Our 2020 Goals

Supplier Engagement

HCS, HCV and peat areas are conserved, and land, labor and human rights are respected in our third party palm supply chain

Traceability

Traceability

100% traceable to plantations by 2020

100% Traceability to mill level 100% Traceability to plantation in high risk landscape 100% Traceability to plantation in all landscapes

2015 2019 2020

33% 18% 47% 20% 66% 35% 71% 23% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CPO PKO

GEOS EU traceability score to Plantation level

Q1 2017 Q2 2017 Q3 2017 Q4 2017

Regional update: LATAM 2017

7

BRAZIL

• NORAD/TFT partnership: Smallholders project

addressing livelihood & deforestation (HCV/HCS)

• 3 deep & 4 broad engagements
• 148 people trained
• 5 workshops: No exploitation of people

GUATEMALA

• One new mill visit
• Two NDPE workshop
• REPSA grievance and stakeholders

engagement

• Building partnership on smallholder

with Solidaridad COLOMBIA

• 2 mill visits and 4 technical workshops
• 2 NDPE workshops
• 4 mills actions plans and (2016) follow-up
• Partnership on human rights issues
• New Cargill resource (1 FTE) to support

implementation

Growing import from LatAm in Netherlands

Source: Eurostat

Market of certified products in Europe (2017/18)

Annual world production of palm oil : +/- 60 millions MT

Palm import EU 8 Millions MT

1,5 M MT RSPO SG 0,5 M MT MB

LATAM Palm export into EU 1,5 Millions MT

(Out of 4M MT production)

Source: Fediol, USDA, Oil World

Volumes of certified palm oil

(Supply & Demand)

Source: rspo.org

Source : RSPO

Blue: Supply Orange: Demand

Customer benefits of sourcing RSPO palm?

RSPO IS THE STANDARDS THE MOST USED TO PROMOTE SUSTAINABLE PRACTICES

• Sustainable palm supply chain protecting forest, workers, communities and

human rights, increasing small farmer income

• Increased transparency, traceability & credibility through independent 3rd

party verification

• A common standards that allow comparison across the industry

RSPO logo on product?

• Many of customers do not want to emphasize the

presence of oils and fats in their product

• Palm debate around health & contaminants e.g. 3MCPD
• Brands desire to embed sustainability commitments,

some are moving away from multi labelling of certification logos

• Even without labelling, companies keep sourcing certified

ingredient to demonstrate the integrity of their product in line with their commitments

What happens in Europe?

• 2016: European Commission presented a proposal

for a recast of the Renewable Energy Directive (RED II) to accelerate the uptake of renewable energy

• 2017: European Parliament adopted an amended

report (a report only) proposing the ban of palm oil

• Today: Negotiations are still on going to arrive to a

compromise/agreement (latest March 2019)

• Is ban of palm oil WTO compatible?

LATAM has a unique opportunity to position itself as a leader in sustainable palm oil

• All customers needs to demonstrate compliance with their NDPE policy by

2020

• Convergence of NDPE requirements with RSPO P&C
• Increasing demand in Europe from customers to move from mass balance to

segregated

• Europe is debating its’ position on palm oil & sustainability
• Growing demand for LatAm products
• Traders/refiners to work with trusted and preferred suppliers