RSPO Webinar

Roundtable on Sustainable Palm Oil The Roundtable for Sustainable Palm Oil

 RSPO was established in 2004 to promote the sustainable production and use of palm oil  Not for profit organization  The purpose of RSPO is:  Develop a sustainability standard  Certification program for sustainable palm  Enhance value of palm oil  Trademark / labeling of sustainable products  Create access to best practices – agriculture, environment and social aspects  Create changes through policy and group actions Acme-Hardesty Co 6/22/2017 2 Roundtable on Sustainable Palm Oil Why RSPO?  Reduce deforestation  Palm trees produce 4-10 times more oil than alternative crops (less land needed) RSPO for Acme-Hardesty  Sustainability  Accommodate customer requirements  Environmentally and socially conscious customers are willing to pay a premium for responsibly sourced/produced products.  Some customers will no longer purchase from non-certified producers and only source through traceable supply chains.

Acme-Hardesty Co 6/22/2017 3 Certification Schemes

Identity Preserved Segregated Mass Balance (MB) Book & Claim (formerly Green Palm)

Acme-Hardesty Co 6/22/2017 4 Conventional Palm Oil No 3rd Party Certification

Acme-Hardesty Co 6/22/2017 5 Identity Preserved Sustainable palm oil from a single identifiable certified source – separate from supply chain

Acme-Hardesty Co 6/22/2017 6 Segregated Sustainable palm oil from different certified sources is kept separate from ordinary palm oil throughout supply chain.

Acme-Hardesty Co 6/22/2017 7 Mass Balance (MB) Sustainable palm oil from certified sources is mixed with ordinary palm oil throughout supply chain.

Acme-Hardesty Co 6/22/2017 8 Book & Claim The supply chain is not monitored for the presence of sustainable palm oil. Credits bought from RSPO-certified growers, crushers and independent smallholders.

Acme-Hardesty Co 6/22/2017 9 Questions

 Tell me one reason why Acme is RSPO MB Supply Chain certified?  True or False? The definition of Mass Balance is sustainable palm oil from different certified sources is kept separate from ordinary palm oil throughout supply chain.  How much more oil than alternative crops does palm produce?

Acme-Hardesty Co 6/22/2017 10 What makes a product RSPO MB?

 RSPO MB certification throughout the supply chain (RSPO credits available to be sold with the product).  Plantation/grower, Mill, Producer/refiner, Importer/trader (AHCO) and end user must all be RSPO MB certified  Certification allows the product to be labeled with the RSPO MB logo.  If any entity is not certified, the certification ends at the first uncertified location. Product is still sustainably sourced.  Certification does not transfer from one location to another.

Acme-Hardesty Co 6/22/2017 11 What is a RSPO MB product?  It is made with Palm (Palm Oil or Palm Kernel Oil)  Certified and non-certified oil can be used to produce the product. But, credits have to be available to sell the product as RSPO.  Credits are based on pounds: 1 pound = 1 credit  Tracked by type  Palm Oil Based  Palm Kernel Oil based

Acme-Hardesty Co 6/22/2017 12 Typical Fatty Acid Yields PKO – C6-C14 ; Palm Oil - C16-C24

Fatty Acid PO PKO C6 (Caproic) None trace C8 (Caprylic) None 3.6% C10 (Capric) None 3.5% C12 (Lauric) 0.2% 47.3% C14 (Myristic) 1.1% 16.4% C16 (Palmitic) 44.0% 8.1% C18 (Stearic) 4.5% 2.3% C18:1 (Oleic) 39.2% 16.2%

Acme-Hardesty Co 6/22/2017 13 What products are RSPO MB?

 RSPO MB – Palm Oil  RSPO MB – PKO (C16-C24) (C6-C14)  Glycerine  Caprylic Acid  Palmitic Acid  Capric Acid  Stearic Acids TPSA  Lauric Acid  Oleic Acid  Myristic Acid  2-Ethylhexyl Palmitate  MCT Oil (3560, 3585, 3595)  Fatty AHCOHOLS  IPM  Triacetin  Sodium Coco Sulfate

Acme-Hardesty Co 6/22/2017 14 Questions

 True or false? Our customers can use the RSPO logo on their products based on the AHCO RSPO MB certification. RSPO MB product can be made with Castor Oil. Certified and non-certified palm oil can be mixed to produce the RSPO MB product

Acme-Hardesty Co 6/22/2017 15 RSPO Facts  RSPO MB credits do not expire  RSPO MB PO credits can only be used for Palm Oil products  RSPO MB PKO credits can only be used for PKO products  RSPO MB products are priced at a premium.  RSPO MB PKO premium is higher because PKO yields mostly Lauric Acid (C12) and very little of the other “shorter chain” fatty acids.

Fatty Acid PO PKO

C6 (Caproic) None trace

C8 (Caprylic) None 3.6%

C10 (Capric) None 3.5%

C12 (Lauric) 0.2% 47.3%

C14 (Myristic) 1.1% 16.4%

Acme-Hardesty Co 6/22/2017 16 Thanks for your time!

Acme-Hardesty Co 6/22/2017 17