RSPO Presentation Extended

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

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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

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What is palm oil?
Highly versatile

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

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

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

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What is palm oil?
Average yield per year (tonnes of oil per hectare)
Source Oil World
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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

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Why sustainable palm oil?
Social issues in oil palm cultivation

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

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Why sustainable palm oil?
Environmental issues in oil palm cultivation

• Forest, peatland conversion
• Climate change
• Biodiversity loss

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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

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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
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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

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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

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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

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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

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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

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Where we are today

• Respecting diversity national interprations of
  guidelines

• Papua New Guinea (April, 2008)
• Malaysia (April, 2008)
• Indonesia (May, 2008)
• Colombia / L. America (in progress)
• See www.rspo.org

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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

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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
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Where we are today

• Supply chain certification systems monitoring
• Identity preservedSustainable oil kept apart,
  traceable to plantation
• SegregationMixing 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.utzcert
  ified.org

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Where we are today

• Supply chain certification system Identity
  Preserved

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Where we are today

• Supply chain certification system Segregation

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Where we are today

• Supply chain certification system Mass Balance

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Where we are today

• 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.o
  rg

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Where we are today

• Supply chain system Book and Claim

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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

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Where we are today

• Communication guidelines and claimsSpecify
  communication on production, procurement and use
  of RSPO-certified sustainable palm oil

• Use of RSPO logo
• Claim details
• Story-telling on supply chain model
• On-pack, about-product, corporate communications

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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

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Where we are today

• Claims and corresponding supply chain systems 1

This product contains only/.. RSPO-certified
sustainable palm oil
Identity Preserved
Segregation
Specific RSPO-certified plantation
Several RSPO-certified plantations
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Where we are today

• Claims and corresponding supply chain systems 2

... supports the production of RSPO-certified
sustainable palm oil (equivalent to .. of the
palm oil utilized)
Mass Balance
Certificates
Book Claim
RSPO-certified conventional plantations
RSPO-certified plantations
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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

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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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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

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Where we go from here

• 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

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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

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