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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 oil
soy
rapeseed
sunflower
others
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
Africa
Asia
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)
0
1
2
3
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
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
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

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Rspo presentation

  • 1. An International Multi Stakeholder Initiative Transforming Markets to make sustainable palm oil the norm
  • 2. 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
  • 3. “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?
  • 5. 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
  • 6. • Palm oil is used in more than half of packaged supermarket products today
  • 7. Growth of world’s palm oil production 0 10 20 30 40 50 1966 1976 1986 1996 2006
  • 8. palm oil soy rapeseed sunflower others Palm oil – world’s number one vegetable oil palm oil 30% Soy 29% Rapeseed 14% Sunflower 8% Others 19%
  • 9. Top palm oil producing countries indonesia malaysia others 47% 39% 14%
  • 10. Asia and Europe are world's major importers of palm oil (2009) Other Asia Europe China India Pakistan Other Africa Asia
  • 11. Advantages of palm oil • are highly efficient producers of oil • require less land than other oil crops
  • 12. Average yield per year (tonnes of oil per hectare) 0 1 2 3 4 Oil Palm Rapeseed Sunflower Soybean 3.68 0.59 0.42 0.36
  • 14. • More than 1 million workers • More than 3 million smallholders • Many more household members
  • 15. • Social issues in oil palm cultivation • Land ownership conflicts • Worker’s rights and conditions • Treatment of smallholders
  • 16. • Environmental issues in oil palm cultivation • Forest, peatland conversion • Climate change • Biodiversity loss
  • 18. 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.
  • 19. 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
  • 20. 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
  • 21. Over 800 members from 50 countries **As of April 2012 – Latest information can be accessed at http://www.rspo.org/en/membership_key_statistics
  • 22. 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
  • 23. 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
  • 24. Where we are today
  • 25. • 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
  • 26. • 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
  • 27. 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
  • 28. 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
  • 29. 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
  • 30. 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)
  • 31. 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
  • 33. Plantations Refiners & Blenders Ingredient Manufacturers Retailers Mill Product Manufacturers Storage, transport, shipping The palm oil supply chain: • Many links • Potential for mixing Smallholders
  • 34. 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
  • 35.
  • 36.
  • 37.
  • 38. 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
  • 39.
  • 40. 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
  • 42. 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
  • 43. 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
  • 44. Latest info at: http://www.rspo.org/en/key_statistics
  • 45. Latest info at: http://www.rspo.org/en/key_statistics
  • 46. Latest info at: http://www.rspo.org/en/key_statistics
  • 47. Latest info at: http://www.rspo.org/en/key_statistics
  • 48. Latest info at: http://www.rspo.org/en/key_statistics
  • 49. 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
  • 50. 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
  • 52. 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
  • 53. RSPO’S VISION: TO TRANSFORM MARKETS TO MAKE SUSTAINABLE PALM OIL THE NORM
  • 54. RSPO Secretariat Kuala Lumpur, Malaysia WWW.RSPO.ORG Email : rspo@rspo.org