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RSPO

Roundtable on Sustainable Palm Oil

www.rspo.org

RSPO
Promoting The Growth And Use Of Sustainable Palm Oil

RSPO
Roundtable on Sustainable Palm Oil

Outline

What is palm oil? The need for sustainable palm oil The Roundtable on Sustainable Palm Oil (RSPO) Where we are today Where we go from here

RSPO
Roundtable on Sustainable Palm Oil

What is palm oil?

“It has the scent of violets, the taste of olive oil and a color which tinges food like saffron but is more attractive”
Ca’da Mosto, 15th century explorer, on discovering palm oil.

RSPO
Roundtable on Sustainable Palm Oil

What is palm oil?

Palm Oil... 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

RSPO
Roundtable on Sustainable Palm Oil

What is palm oil?

Palm oil is used in more than half of packaged supermarket products today

RSPO
Roundtable on Sustainable Palm Oil

What is palm oil?

World palm oil production has grown rapidly
50 40 30 20 10 0 1966 1976 1986 1996 2006
Source: Oil World, MOPB, MPOC

X 1 million tonnes

RSPO
Roundtable on Sustainable Palm Oil

What is palm oil?
Palm oil is now the world's most-produced vegetable oil

Other 19%
Sunflower 8%

Palm 30%

Rapeseed 14%

Soy 29%

Source: Oil World, May, 2008

RSPO
Roundtable on Sustainable Palm Oil

What is palm oil?

Palm tree cultivation has expanded significantly

X 1 million hectares

10 Other

5

Malaysia

Indonesia 0 1990 1998 2007
Source: Oil World, May, 2008

RSPO
Roundtable on Sustainable Palm Oil

What is palm oil?
Two countries produce most of the world's palm oil

Other 15% Indonesia 44% Malaysia 41%

Source: Oil World, May, 2008

RSPO
Roundtable on Sustainable Palm Oil

What is palm oil?

Asia and the EU are world's major importers of palm oil

Other 16% Africa 12% EU 16% Asia 55%

China 18% India 13% Pakistan 6% Other Asia 19%

Source: Oil World, May, 2008

RSPO
Roundtable on Sustainable Palm Oil

What is palm oil?

Oil palms.. are highly efficient producers of oil require less land than other oil crops

RSPO
Roundtable on Sustainable Palm Oil

What is palm oil?

Average yield per year (tonnes of oil per hectare)

Oil palm: 3.68 Rapeseed: 0.59 Sunflower: 0.42 Soybean: 0.36

Source: Oil World

RSPO
Roundtable on Sustainable Palm Oil

Why sustainable palm oil?
Millions of people are dependent on palm oil More than 1 million workers More than 3 million smallholders Many more household members

RSPO
Roundtable on Sustainable Palm Oil

Why sustainable palm oil?

Social issues in oil palm cultivation

Land ownership conflicts Worker’s rights and conditions Treatment of smallholders

RSPO
Roundtable on Sustainable Palm Oil

Why sustainable palm oil?

Environmental issues in oil palm cultivation

Forest, peatland conversion Climate change Biodiversity loss

RSPO
Roundtable on Sustainable Palm Oil

The Roundtable

The Roundtable on Sustainable Palm Oil: Started in 2003, with 7 members Multi-stakeholder group Promotes the growth and use of sustainable oil palm products through global standards Among its principles:
Respect for rights of land owners, farm workers, smallholders and their families No primary forests or high conservation value areas sacrificed for new palm oil plantations

RSPO
Roundtable on Sustainable Palm Oil

The Roundtable

Today*: 249 RSPO members 67 oil palm growers 96 palm oil processors, traders 5 social, developmental NGOs 13 environmental NGOs 36 consumer goods manufacturers 24 retailers 8 banks and investors
* September, 2008

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

RSPO’s preparations: 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

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Code of Conduct: “Every member supports, promotes and works towards the production, procurement and use of sustainable palm oil”

Grievance panel supervises compliance

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Sustainability Principles: Transparency Use best practices Care for environment, natural resources, and biodiversity Consider rights of workers, smallholders Develop new plantings responsibly

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

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

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

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

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Respecting diversity: national interprations of guidelines

Papua New Guinea (April, 2008) Malaysia (April, 2008) Indonesia (May, 2008) Colombia / L. America (in progress) See: www.rspo.org

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

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

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

The palm oil supply chain:
Many links Potential for mixing
Smallholders Mill

Plantations

Transport & Shipping Product Manufacturers Refiners & Blenders Ingredient Manufacturers

Retailers

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Supply chain certification systems: monitoring
‘Identity preserved’: Sustainable oil kept apart, traceable to plantation ‘Segregation’: Mixing of sustainable palm oil batches is allowed ‘Mass Balance’: Mixing of sustainable and conventional oil allowed, if monitored administratively Designed and managed by Utz Certified, www.utzcertified.org

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Supply chain certification system: ‘Identity Preserved’

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Supply chain certification system: ‘Segregation’

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Supply chain certification system: ‘Mass Balance’

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Supply chain certification system: credit trading

‘Book and Claim’: - No tracking, tracing or monitoring of oil - Growers, end-users trade volume credits online Designed and managed by GreenPalm, www.greenpalm.org

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Supply chain system: ‘Book and Claim’

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Supply chain certification procedure
Verifies movement of oil through supply chain Step-by-step documentation

Short-term: self-assessments Long-term: third-party certification Details: RSPO Supply Chain Certification Systems See: www.rspo.org

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Communication guidelines and claims Specify communication on production, procurement and use of RSPO-certified sustainable palm oil Use of RSPO logo Claim details Story-telling on supply chain model On-pack, about-product, corporate communications

title

RSPO

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Where we are today

Roundtable on Sustainable Palm Oil

Two possible claims in communication, marketing: “... contains [only/.. %] RSPO-certified sustainable palm oil”
- Used with ‘Identity Preserved’, ‘Segregation’ systems

“... supports the production of RSPO-certified sustainable palm oil (equivalent to .. % of the palm oil utilized)” - Used with ‘Mass Balance’, ‘Book and Claim’ systems

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Claims and corresponding supply chain systems: #1
“This product contains [only/..%] RSPO-certified sustainable palm oil”

Claim to be used

Prescribed supply chain

„Identity Preserved‟

„Segregation‟

Specific RSPOPrescribed supply base certified plantation

Several RSPOcertified plantations

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

Claims and corresponding supply chain systems: #2
“... supports the production of RSPOcertified sustainable palm oil (equivalent to ..% of the palm oil utilized)

Claim to be used

Prescribed supply chain „Mass Balance‟

‘Book & Claim’

Certificates

RSPO-certified Prescribed supply base + conventional plantations

RSPO-certified plantations

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

By end of 2008:
± 12 certification bodies approved by RSPO 350,000 hectares certified Four supply chain certification systems operational Capacity to supply 1.5 million tonnes of RSPO-certified sustainable palm oil per year

RSPO
Roundtable on Sustainable Palm Oil

Where we are today

DOWNLOAD CENTER
‘Key documents’ at www.rspo.org: Statutes Principles & Criteria Criteria: National Interpretations Code of Conduct Certification Systems Guidelines on Communication & Claims

RSPO
Roundtable on Sustainable Palm Oil

Where we go from here
RSPO’s ambitions: Grow supply of certified oil Grow demand for certified oil Grow RSPO membership Engage governments Engage and educate smallholders

RSPO
Roundtable on Sustainable Palm Oil

Where we go from here

Engaging more than 3 million smallholders They maintain 20% of acreage RSPO Task Force on smallholders Promotes smallholder interests within RSPO Raises awareness among smallholders Adapts RSPO standards and procedures Develops group certification protocol

RSPO
Roundtable on Sustainable Palm Oil

Where we go from here

By end of 2009: Capacity to supply 3 million tonnes per year (± 8% of production)

Ultimately, RSPO aims to see all the world’s palm oil produced in a sustainable way

RSPO
Roundtable on Sustainable Palm Oil

Thank You!

RSPO Secretariat Kuala Lumpur, Malaysia WWW.RSPO.ORG Telephone : +60 3 6203 5969 Email : rspo@rspo.org