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

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

“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.

What is palm oil?

Why palm oil?

Palm Oil is….

A highly versatile vegetable oil Used in many food and non-food products Produced in tropical countries Rapidly growing market share World’s top selling vegetable oil

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

Growth of world’s palm oil production

0

10

20

30

40

50

1966 1976 1986 1996 2006

palm oilsoyrapeseedsunflowerothers

Palm oil – world’s number one vegetable oil

palm oil 30%

Soy 29%

Rapeseed 14%

Sunflower 8%

Others 19%

Top palm oil producing countries

indonesia malaysia others

47%

39%

14%

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

(2009)

Other Asia

Europe

China

India

Pakistan

Other

AfricaAsia

Advantages of palm oil • are highly efficient producers of oil • require less land than other oil crops

Average yield per year (tonnes of oil per hectare)

01

23

4

Oil Palm

Rapeseed

Sunflower

Soybean

3.68

0.59

0.42

0.36

Why sustainable palm oil?

• More than 1 million workers

• More than 3 million smallholders

• Many more household members

• Social issues in oil palm cultivation

• Land ownership conflicts

• Worker’s rights and conditions

• Treatment of smallholders

• Environmental issues in oil palm cultivation

• Forest, peatland conversion

• Climate change • Biodiversity loss

THE RSPO

HISTORY 2001 - WWF explored possibilities of a Roundtable for Sustainable Palm Oil. 2002 - an informal co-operation with Aarhus United UK Ltd, Golden Hope Plantations Berhad, Migros, Malaysian Palm Oil Association, Sainsbury's and Unilever together with WWF in 2002. Inaugural meeting (RT) in Kuala Lumpur, Malaysia on 21 - 22 August 2003 - attended by 200 participants from 16 countries. 31 August 2004, forty seven organizations joined RSPO. 8 April 2004 - "Roundtable on Sustainable Palm Oil (RSPO)," was formally established under Article 60 of the Swiss Civil Code with a governance structure that ensures fair representation of all stakeholders throughout the entire supply chain. The seat of the association is in Zurich, Switzerland, the Secretariat is based in Kuala Lumpur with a RSPO Liaison office in Jakarta.

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

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

Over 800 members from 50 countries

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

Multi Stakeholder Membership 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

Membership by country

UK17%

Malaysia16%

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

Where we are today

• Code of Conduct for members • Independent certification bodies • Principles, specific criteria and

indicators for sustainable palm oil production

• Supply chain certification systems • Guidelines on communication and

claims

• Code of Conduct: “All members will publicly commit to production, procurement and use of sustainable palm oil” – Annual Communications on Progress

• Grievance panel supervises compliance

Sustainability Principles:

1. Transparency 2. Use best practices 3. Care for environment,

natural resources, and biodiversity

4. Consider rights of workers, smallholders

5. Develop new plantings responsibly

Specific social criteria and indicators: • Rights to the land not

legitimately contested • Workers’ pay and

conditions provide decent living

• The right to form trade unions is respected

• Health and safety plan implemented

• Smallholders treated fairly by mills

Specific environmental criteria and indicators:

• Since November 2005, new plantings did not replace primary forests or high conservation value areas

• Erosion and degradation of soils are minimized

• Pollution and waste is reduced

• Use of fires is avoided

Respecting diversity: national interprations of guidelines (see: www.rspo.org) • Papua New Guinea (2008) • Malaysia (2008) • Indonesia (2008) • Colombia / L. America (2010) • Ghana (2011) • Thailand (2012)

Plantation, mill certification procedure Approved certification bodies listed on RSPO website Audit by certification body (1 month notice) Unit of certification: oil mill and suppliers Compliance with Principles, Criteria and Indicators Phase I: Document review Phase II: Field checks, stakeholder interviews Audit Report, summary published online

Supply chain models

Plantations

Refiners & Blenders

Ingredient Manufacturers

Retailers

Mill

Product Manufacturers

Storage, transport, shipping

The palm oil supply chain:

• Many links • Potential for mixing

Smallholders

Supply chain systems

• ‘Identity preserved’: Sustainable oil kept apart, traceable to plantation

• ‘Segregated’: Mixing of sustainable palm oil batches is allowed

• ‘Mass Balance’: Mixing of sustainable and conventional oil allowed if monitored administratively

• Monitored by UTZ Certified, www.utzcertified.org

Supply chain model: certificates trading

• ‘Book and Claim’: - No tracking, tracing or monitoring of oil - Growers, end-users trade volume credits online

• Managed by GreenPalm, www.greenpalm.org

Supply chain certification procedure

• Verifies movement of oil through the supply chain

• Step-by-step documentation • Performed by 3rd-party certification bodies • More info: www.rspo.org

Milestones

Consumer communication RSPO trademark developed for on/about-product communication Rules for use, communication and licensing under development Trademark registration procedures begun in more than 60 countries Launched: June 2011

April 2012 : • Launched trademark – June 2011 • >800 members • Annual production capacity: 6m metric tonnes • Total production area: 1.148.134 hectares • 30 grower companies certified • 141 mills certified • 166 supply chain companies certified • 319 supply chain facilities certified

More info at http://www.rspo.org/en/grower_certification

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

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

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

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

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

RSPO’s aspirations:

Grow supply of certified oil Grow demand for certified oil, including in India, China Grow RSPO membership Engage governments Engage and educate smallholders

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

In conclusion

Key RSPO documents at www.rspo.org:

1. 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

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

RSPO Secretariat

Kuala Lumpur, Malaysia

WWW.RSPO.ORG

Email : rspo@rspo.org