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    RSPORoundtable on Sustainable Palm Oil

    Promoting The Growth And

    Use Of Sustainable Palm Oil

    RSPO

    www.rspo.org

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    RSPORoundtable 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

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    RSPORoundtable on Sustainable Palm Oil

    It has the scent of violets,

    the taste of olive oil and acolor which tinges food like

    saffron but is more

    attractive

    Cada Mosto,15th century explorer,

    on discovering palm oil.

    What is palm oil?

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    RSPORoundtable on Sustainable Palm Oil

    Palm Oil...

    A highly versatile vegetable oil

    Used in many food and non-food productsProduced in tropical countries

    Rapidly growing market share

    Worlds top selling vegetable oil

    What is palm oil?

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    RSPORoundtable on Sustainable Palm Oil

    Palm oil is used in more than half of packaged

    supermarket products today

    What is palm oil?

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    RSPORoundtable on Sustainable Palm Oil

    0

    10

    20

    30

    40

    50

    1966 1976 1986 1996 2006

    What is palm oil?

    X

    1milliontonn

    es

    Source: Oil World, MOPB, MPOC

    World palm oil production has grown rapidly

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    RSPORoundtable on Sustainable Palm Oil

    Palm oil is now the world's

    most-produced vegetable oil

    Rapeseed

    14% Soy

    29%

    Palm

    30%

    Other

    19%

    Sunflower

    8%

    What is palm oil?

    Source: Oil World, May, 2008

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    RSPORoundtable on Sustainable Palm Oil

    Indonesia

    Malaysia

    Other

    0

    5

    10

    1990 1998 2007

    What is palm oil?

    X

    1millionhectares

    Source: Oil World, May, 2008

    Palm tree cultivation has expanded significantly

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    RSPORoundtable on Sustainable Palm Oil

    Two countries produce

    most of the world's palm oil

    Other15%

    Malaysia

    41%

    Indonesia

    44%

    What is palm oil?

    Source: Oil World, May, 2008

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    RSPORoundtable on Sustainable Palm Oil

    Asia and the EU are world's major

    importers of palm oil

    Asia

    55%

    Africa

    12%

    Other

    16%

    Pakistan 6%

    India

    13%

    China

    18%

    EU16%

    Other Asia

    19%

    What is palm oil?

    Source: Oil World, May, 2008

    RSPORoundtable on Sustainable Palm Oil

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    RSPORoundtable on Sustainable Palm Oil

    Oil palms..

    are highly efficient producers of oil

    require less land than other oil crops

    What is palm oil?

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    RSPORoundtable on Sustainable Palm Oil

    Soybean: 0.36

    Sunflower: 0.42

    Rapeseed: 0.59

    Oil palm: 3.68

    What is palm oil?

    Source: Oil World

    Average yield per year (tonnes of oil per hectare)

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    RSPORoundtable on Sustainable Palm Oil

    More than 1 millionworkers

    More than 3 million

    smallholders

    Many more

    household members

    Why sustainable palm oil?

    Millions of people are

    dependent on palm oil

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    RSPORoundtable on Sustainable Palm Oil

    Why sustainable palm oil?

    Land ownership conflicts

    Workers rights and conditions

    Treatment of smallholders

    Social issues in oil palm cultivation

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    RSPORoundtable on Sustainable Palm Oil

    Why sustainable palm oil?

    Forest, peatland

    conversion

    Climate change

    Biodiversity loss

    Environmental issues in oil palm cultivation

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    RSPORoundtable on Sustainable Palm Oil

    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

    The Roundtable

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    RSPORoundtable on Sustainable Palm Oil

    Today*: 249 RSPO members

    67 oil palm growers

    96 palm oil processors, traders

    5 social, developmental NGOs

    13 environmental NGOs

    36 consumer goods manufacturers24 retailers

    8 banks and investors

    The Roundtable

    * September, 2008

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    RSPORoundtable on Sustainable Palm Oil

    Where we are today

    RSPOs preparations:

    Code of Conduct for members

    Independent certification bodies

    Principles, specific criteria and indicators for

    sustainable palm oil production

    Supply chain certification systemsGuidelines on communication and claims

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    RSPORoundtable on Sustainable Palm Oil

    Code of Conduct: Every member supports,promotes and works towards the production,

    procurement and use of sustainable palm oil

    Grievance panel supervises compliance

    Where we are today

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    RSPORoundtable on Sustainable Palm Oil

    Sustainability Principles:

    Transparency

    Use best practices

    Care for environment,

    natural resources,

    and biodiversity

    Consider rights ofworkers, smallholders

    Develop new plantings

    responsibly

    Where we are today

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    RSPORoundtable on Sustainable Palm Oil

    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

    Where we are today

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    RSPORoundtable on Sustainable Palm Oil

    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

    Where we are today

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    RSPORoundtable on Sustainable Palm Oil

    Respecting diversity:

    national interprations of guidelines

    Where we are today

    Papua New Guinea (April, 2008)Malaysia (April, 2008)

    Indonesia (May, 2008)

    Colombia / L. America (in progress)See: www.rspo.org

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    RSPORoundtable on Sustainable Palm Oil

    Plantation, mill certification procedure

    Where we are today

    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

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    RSPORoundtable on Sustainable Palm Oil

    Where we are today

    Plantations

    Refiners &

    Blenders Ingredient

    Manufacturers

    Retailers

    Mill

    Product

    Manufacturers

    Transport & Shipping

    The palm oil supply chain:

    Many links

    Potential for mixing

    Smallholders

    S O

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    RSPORoundtable on Sustainable Palm Oil

    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

    Where we are today

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    Supply chain certification system: Identity Preserved

    Where we are today

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    Supply chain certification system: Segregation

    Where we are today

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    Supply chain certification system: Mass Balance

    Where we are today

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    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

    Where we are today

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    Supply chain system: Book and Claim

    Where we are today

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    Supply chain certification procedure

    Where we are today

    Verifies movement of oil through supply chain

    Step-by-step documentation

    Short-term: self-assessmentsLong-term: third-party certification

    Details: RSPO Supply Chain Certification Systems

    See: www.rspo.org

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    Communication guidelines and claims

    Specify communication on production, procurement

    and use of RSPO-certified sustainable palm oil

    Where we are today

    Use of RSPO logo

    Claim details

    Story-telling on supply chain model

    On-pack, about-product, corporate communications

    RSPOtitle

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    RSPORoundtable on Sustainable Palm Oil

    -Where we are today

    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 palmoil utilized)

    - Used with Mass Balance, Book and Claim systems

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    Claims and corresponding supply chain systems: #1

    Where we are today

    Claim to be used

    Prescribed supply chain

    Prescribed supply base

    This product contains [only/..%]

    RSPO-certified sustainable palm oil

    Identity

    Preserved

    Specific RSPO-

    certified

    plantation

    Segregation

    Several RSPO-

    certified

    plantations

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    Claim to be used

    Prescribed supply chain

    Prescribed supply base

    Claims and corresponding supply chain systems: #2

    Where we are today

    ... supports the production of RSPO-

    certified sustainable palm oil (equivalent

    to ..% of the palm oil utilized)

    Mass Balance

    RSPO-certified

    + conventional

    plantations

    Certificates

    RSPO-certified

    plantations

    Book &

    Claim

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    By end of 2008:

    12 certification bodies

    approved by RSPO350,000 hectares certified

    Four supply chain certification

    systems operationalCapacity to supply 1.5 million

    tonnes of RSPO-certified

    sustainable palm oil per year

    Where we are today

    RSPO

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    RSPORoundtable 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

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    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    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

    Where we go from here

    RSPO

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    RSPORoundtable 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 worlds palm oil

    produced in a

    sustainable way

    RSPO

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    RSPORoundtable on Sustainable Palm Oil

    Thank You!

    RSPO Secretariat

    Kuala Lumpur, Malaysia

    WWW.RSPO.ORGTelephone : +60 3 6203 5969

    Email : [email protected]