100810 IVEX Presentation - SMART final.pdf2
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1. Introduction 2. Summary of Greenpeace claims 3. Summary of findings 4. Key points 5. Findings 6. Conclusion
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THE INDEPENDENT VERIFICATION TEAM Appointed in April 2010 after consulting Unilever CUC, BSI and assisted by Bogor Agricultural Institute experts
Prof. Dr. Bambang Hero Saharjo and Dr. Ir. H. Yanto Santosa
SCOPE To verify the claims in the Greenpeace reports:
- Burning Up Borneo - Illegal Forest Clearance and RSPO Greenwash: Case Studies of
Sinar Mas - Caught Red Handed: How Unilever’s Use Of Palm Oil Is Having A
Devastating Impact On Rainforest, The Climate And Orang-Utans
- New Evidence: Sinar Mas – Rainforest and Peatland Destruction
- Sinar Mas Continues Rainforest Destruction
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SCOPE To provide accurate, complete and contextual information to
assess Greenpeace claim, and identify gaps, if any To verify claims against:
– Prevailing laws and regulation in Republic of Indonesia – The Indonesian national interpretation of Roundtable on
Sustainable Palm Oil (RSPO) principles and criteria – SMART’s standard operating procedures
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Covered 11 concession areas 182,528 ha, over 40% of GAR total planted area of 430,200 ha
Field work Concessions
Central 17 May – 22 May
- PT BAP - PT BAT - PT LUJ - PT MKA - PT SKU - PT TN
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- PT ALM - PT KPC - PT KGP - PT PGM - PT PIP
1. Destroying primary forests, orang-utan habitats and HCV areas 2. Clearing and planting on peat land 3. Burning forests 4. Clearing land without permits 5. Causing social conflict 6. Engaging in selective RSPO membership
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1. Degradation process of primary forest areas that were habitats for Borneo orang-utan happened before SMART started the operations of the concessions. All 11 concessions are on degraded land.
2. Clearing peat land is not as extensively as claimed. 1.8% (3,210 ha) of peat (>3m deep) cultivated on 182,528 ha of total concessions
3. Could not find evidence of burning in land clearing and preparation
4. In compliance with necessary permits, although in Central Kalimantan, the environmental impact assessment or AMDAL process completed after Plantation Business Permit
5. Small holders and wider community perceive positive impact from plantations
6. GAR not RSPO member, only SMART and PT Ivo Mas Tunggal are members
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within the laws Vital player and part of the
solution
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Findings
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THE FINDINGS: All concessions consist of degraded land Orang-utan’s habitat already affected by earlier activities
such as logging, slash and burn economy
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OUR STAND: We believe in protecting and conserving
the orang-utan as a vital part of Indonesia’s and the world’s heritage
1,400 ha sanctuary in Central Kalimantan Active role in the National Orang-Utan
Working Group Committed to conserve HCV
THE FINDINGS: Not responsible for the deforestation of primary forest All plantations are confirmed to be degraded land
OUR STAND: Complies with laws and regulations Complies with principles and criteria of RSPO Committed not to plant on primary forests, peat land and
HCV area
Source: UNFCC Secretariat 2007
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51.5 million square hectares (28%) of Indonesia’s total land mass of 187.8 is classified as protected forest and conserved area
NO1119.9Natural/conservation forest
% of total land mass
Convertible forest 22.8 12 NO
Limited production forest 22.5 12 NO
Hunting parks 0.2 Negligible NO
Total 133.7 71
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* Including coffee, cocoa, sugar, pepper and tobacco ** Including peanuts, sweet potatoes and cassava
Plantation Crops
Farm Crops
Palm Oil : More sustainable
Palm oil uses only 5% of global oilseed land use
Palm products supply 31% of global edible oil
Source: Oil World Annual 2010
Data per 2009
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THE FINDINGS: HCV is dynamic and ambiguous, with varying results HCV assessment is a daunting task to identify and conserve HCV Cleared 37,698 ha or 21.0% of the concession areas before HCV
assessment
OUR STAND: We will not develop HCV land Working with stakeholders to implement the necessary remedial
action
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Strengthened standard operating procedures - no longer develop land without HCV assessments
HCV identified in 20,933 ha (11.5%) and are conserved in Central and West Kalimantan
THE FINDINGS: 1.8% of concessions developed on peat of >3m deep
OUR STAND: Serious action against non-compliance with our standard
operating procedures Reinstated deep peat and suspended the plantation managers
responsible
Percentage (%) 2.1 1.4 1.8
Clearing and planting on peat land: Not extensively as depicted
THE FINDINGS: No evidence of burning in land clearing and preparation Hotspots likely to have been caused by slash-and-burn
practices of the local community
OUR STAND: Absolutely against burning, established policy in 1997 Prompt action towards illegal fires Routine fire patrols during the dry season Regular fire fighting training for staff, dedicated fire fighting
squads
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THE FINDINGS: Environmental Impact Assessment (EIA) or AMDAL for all 5
concessions in West Kalimantan in order In Central Kalimantan, AMDAL process completed after land
clearing for all 6 concessions which is not in compliance
OUR STAND: SMART pursues compliance SMART obtained the in-principle business permits and
proceeded to clear the land while AMDAL is being processed SMART has subsequently obtained AMDAL for all the 6 central
Kalimantan concessions Going forward, SMART ensures that AMDAL is obtained
before land clearing as in West Kalimantan
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Land development permits : Pursuing compliance
THE FINDINGS: No evidence of negative relations with local landholders - including
those that did not sell land to SMART Evidence that the plantations improved livelihoods SMART documentation of land transaction process should be
improved Relations with indigenous people were not addressed
OUR STAND: We believe in treating local landowners and communities fairly Many local landowners become small holders working in
partnership with the plantation We estimate that their income can range between US$9 and
US$12 per day We provide 129 schools for 21,800 students and 2,455 university
scholarships (including through the Eka Tjipta Foundation)
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THE FINDINGS: SMART and PT Ivo Mas Tunggal are members They are in the process of RSPO certification
OUR STAND: To obtain RSPO certification for all of GAR’s existing palm oil
operating units by 2015 GAR to become RSPO member
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within the laws Vital player and part of the
solution
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