Formulation of corporate strategy to get successful in rspo and ispo certification
1. 1
Formulation of Corporate Strategy to Get Successful in
RSPO and ISPO Certification.
By Suhardiyoto Haryadi (31 July 2013)
Oil palm main nursery in East Kalimantan
1. Brief Description on RSPO dan ISPO Certification.
Description RSPO ISPO
Effective Date 2005 2011
Initiators Multi-national firms main purchasers
of palm oil, banks, NGOs.
Indonesian Ministry of
Agriculture sponsored by
UNDP and a number of multi-
national firms.
Character of
Certification
Voluntary Mandatory
Standards of audit Principles and Criteria (8 principles
and criteria)
Principles and Criteria (7
principles and criteria)
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List of Principles 1. Commitment to transparency.
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
millers.
7. Responsible development of new
plantings.
8. Commitment to continuous
improvement in key areas of activity.
1. Lincensing and Plantation
Management Systems.
2. Implementation of
Technical Guidance of Palm Oil
Cultivation and Processing.
3. Environmental Management
and Monitoring.
4. Obligation of workers.
5. Social and community
obligation.
6. Empowerment of
community's economic
activities.
7. Commitment to long-term
sustainable business.
Auditor Third-party certification bodies that
have been approved by the RSPO
Executive Board.
Third-party certification bodies
that have been approved by the
ISPO Commission.
Character of audit Independent and transparent Independent and transparent
Recommended date of
participation
When the project is about to start. Can be started either when the
project is at development stage
or when it is operational.
Predicted certification
cost
US$ 25 per Ha Lower
Deadline for
certification
None 31 December 2014
Consequences of success Company/group and product shall be
RSPO certified.
Company/group and product
shall be ISPO certified.
Consequences of failure Fail in certification. Fail in certification, degradation
to a lower class and possible
revocation of IUP license.
2. The above description suggests that the certification process
of both RSPO and ISPO involves the overall management of a
plantation company. The key to success in both certification
schemes is a proper management in broad senses.
3. A proper management means that a company should apply
management in general senses that comprises planning,
organizing, implementation and controlling functions. It should
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also apply management in specific senses namely best plantation
management practices.
Application of a proper management is the key to success in certification.
4. Under the RSPO scheme there are two additional components
in the implementation of management functions namely a)
environmental and social impact assessment and b) high
conservation value assessment. Field managers and their staff
should integrate these two components in day-to-day
management to get successful in the RSPO certification.
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For more information please contact Suhardiyoto Haryadi via
email:<suhardiyoto@gmail.com>