RSPO Presentation Basic

1
www.rspo.org
RSPO
Promoting The Growth AndUse Of Sustainable Palm
Oil
2
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

3
What is palm oil?

• It has the scent of violets, the taste of
  olive oil and a color which tinges food like
  saffron but is more attractive
• Cada Mosto,15th century explorer,on
  discovering palm oil.

4
What is palm oil?

• Palm Oil...
• A highly versatile vegetable oil
• Used in many food and non-food products
• Produced in tropical countries
• Rapidly growing market share
• Worlds top selling vegetable oil

5
What is palm oil?
Highly versatile

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

6
What is palm oil?
World palm oil production has grown rapidly
X 1 million tonnes
Source Oil World, MOPB, MPOC
7
What is palm oil?
Source Oil World, May, 2008
8
What is palm oil?
Palm tree cultivation has expanded significantly
X 1 million hectares
Source Oil World, May, 2008
9
What is palm oil?
Source Oil World, May, 2008
10
What is palm oil?
Source Oil World, May, 2008
11
What is palm oil?

• Oil palms..
• are highly efficient producers of oil
• require less land than other oil crops

12
What is palm oil?
Average yield per year (tonnes of oil per hectare)
Source Oil World
13
Why sustainable palm oil?
Millions of people are dependent on palm oil

• More than 1 million workers
• More than 3 million smallholders
• Many morehousehold members

14
Why sustainable palm oil?
Social issues in oil palm cultivation

• Land ownership conflicts
• Workers rights and conditions
• Treatment of smallholders

15
Why sustainable palm oil?
Environmental issues in oil palm cultivation

• Forest, peatland conversion
• Climate change
• Biodiversity loss

16
The Roundtable

• 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

17
The Roundtable

• Today 249 RSPO members
• 67 oil palm growers
• 96 palm oil processors, traders
• 5 social, developmental NGOs
• 13 environmental NGOs
• 36 consumer goods manufacturers
• 24 retailers
• 8 banks and investors

September, 2008
18
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 systems
• Guidelines on communication and claims

19
Where we are today

• Code of Conduct Every member supports, promotes
  and works towards the production, procurement and
  use of sustainable palm oil
• Grievance panel supervises compliance

20
Where we are today

• Sustainability Principles
• Transparency
• Use best practices
• Care for environment, natural resources,and
  biodiversity
• Consider rights ofworkers, smallholders
• Develop new plantings responsibly

21
Where we are today

• 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

22
Where we are today

• 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

23
Where we are today

• 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

24
Where we are today

• The palm oil supply chain
• Many links
• Potential for mixing

Plantations
Smallholders
Mill
Transport Shipping
Product Manufacturers
Retailers
Refiners Blenders
Ingredient Manufacturers
25
Where we are today

• Supply chain certification procedure

• Verifies movement of oil through supply chain
• Step-by-step documentation
• Short-term self-assessments
• Long-term third-party certification
• Details RSPO Supply Chain Certification Systems
• See www.rspo.org

26

Where we are today
title

• 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
  palm oil utilized)
• - Used with Mass Balance,
  Book and Claim systems

27
Where we are today

• By end of 2008
• 12 certification bodies approved by RSPO
• 350,000 hectares certified
• Four supply chain certification systems
  operational
• Capacity to supply 1.5 million tonnes of
  RSPO-certified sustainable palm oil per year

28
Where we go from here

• RSPOs ambitions
• Grow supply of certified oil
• Grow demand for certified oil
• Grow RSPO membership
• Engage governments
• Engage and educate smallholders

29
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

30
Thank You!
RSPO SecretariatKuala Lumpur, Malaysia WWW.RSPO.O
RG Telephone [phone]Email
rspo_at_rspo.org