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PRINCIPLES and CRITERIA for Sustainable Palm Oil Production 2018

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PRINCIPLES and CRITERIA for Sustainable Palm Oil Production 2018 RSPO Roundtable on Sustainable Palm Oil PRINCIPLES AND CRITERIA For Sustainable Palm Oil Production 2018 The Indonesia National Interpretation 1 Draft 1 – National Interpretation RSPO Principles & Criteria 2018 Preface Sustainable palm oil production comprises legal, economically viable, environmentally appropriate and socially beneficial management and operations. This is delivered through the application of the following set of Principles and Criteria ("P&C") herein and the accompanying Indicators and Guidance. The first set of RSPO P&C, Indicators and Guidance (RSPO P&C 2007) have been applied since November 2007. These had been subject to trial implementation from November 2005 to November 2007 and, in a number of countries, to a subsequent process of National Interpretation process (NI). After five years of application by RSPO members, RSPO P&C 2007 were reviewed in 2012-2013, leading to the RSPO P&C 2013. After a five years of application, RSPO P&C 2013 were reviewed and revised in 2017-2018 by the RSPO Principles and Criteria Review Task Force. The objective of each review and revision is to improve the relevance and effectiveness of the Principles and Criteria for RSPO members, and in achieving the shared vision and mission to make sustainable palm oil the norm. More specifically, this most recent revision sought to align the Principles and Criteria with the RSPO Theory of Change (ToC) and increase accessibility by making so these Principles and Criteria are more relevant and practical. The review process went beyond International Social and Environmental Accreditation and Labelling (ISEAL) best practices, including two public consultation periods of 60 days each, and with 17 physical consultation workshops in 10 countries around the world, as well as 6 physical Task Force meetings. This process resulted in the production of the revised and restructured RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO P&C 2018). In line with ISEAL best practices, this document (RSPO P&C 2018) will be completely reviewed again after five years, following adoption by the General Assembly of RSPO. The RSPO and its members recognise, support and commit to following the United Nations Universal Declaration of Human Rights (UN) [http://www.un.org/en/documents/udhr] and the International Labor Organization (ILO)’s Declaration of Principles and Principles Basic Rights at Work [http://www.ilo.org/declaration/lang-en/index.htm]. This RSPO P&C 2018 defines Indicators for each Criterion and further Guidance where useful. Indicators are specific pieces of objective evidence that shall (must) be in place to demonstrate or verify that the Criterion is being met, i.e. the Indicators constitute the normative part of the standard together with the Principles, Criteria and definitions. Guidance consist of useful information to help the unit of certification and auditor understand what the Criterion and /or Indicator mean in practice, to indicate good practice, and practices that should be followed. Guidance constitutes the informative part of the standard. A separate standard is currently being developed for Independent Smallholders. This document (RSPO P&C 2018) is effective after adoption by the RSPO 15th General Assembly (GA15) on 15 November 2018. As stated in section 9 of the RSPO Standard Operating Procedures (SOP) for Standard Setting, NIs must be revised to be fully consistent with the RSPO P&C 2018 within 12 months of the he date of adoption (i.e. 15 November 2019). Certificate holders must be fully compliant with the newest version of an NI within one year of it being endorsed by the RSPO Board of Governors. In countries where NIs are not updated by 15 November 2019, RSPO P&C 2018 will be effective until the NI has been updated. 2 Draft 1 – National Interpretation RSPO Principles & Criteria 2018 Existing certified entities can continued to be certified after the date of adoption and before the completion of any relevant NI, by conducting a maximum of one further Annual Surveillance Assessment (ASA) against RSPO P&C 2013 (or their current NI applicable), but shall demonstrate compliance to the new provisions (RSPO P&C 2018) at the following ASA. Criterion 7.12 requires that new land clearing after 15 November 2018 (i.e. adoption of RSPO P&C 2018 by GA15) must be preceded by High Conservation Value (HCV) and High Carbon Stock forests (HCS) assesssment. The Task Force recognises that there is an array of scenarios in which HCV assessments have previously undertaken and have been approved or are in the process of approval. Appendix 5 shows how the new requirements apply in different scenarios, both for existing and new certifications, with and without new land clearing. Necessary revisions shall be made to other RPSO normative documents and guidance to ensure consistency with the wording of RSPO P&C 2018 and, in this context, please note the disclaimers and procedural notes for the Supply Chain requirements for Palm Oil Mills (POM) at the end of Principle 3. In addition to Appendix 5, this document contains several other attachments as supporting information, namely: Appendix 1 provides list of the Indonesian National Interpretation Working Group members (INA NIWG); Appendix 2 provides definition of the technical terms used in this standard; Appendix 3 provides a List of Regulations applicable to the production of sustainable palm oil; Appendix 4 provides the necessary details for the implementation procedures for Indicator 2.3.2. This document identifies the Critical Indicators (C) proposed by the RSPO Principles and Criteria Review Task Force and endorsed by the RSPO Board of Governors on 12 October 2018. This Indonesia National Interpretation Document is presented in 2 (two) languages, Bahasa Indonesia and English. In the process of translating from Indonesian to English there might be differences in interpretation. Therefore, in case of any difference between the Bahasa Indonesia and English versions, the national interpretation in Bahasa Indonesia shall be used as reference. In the event of changes (new or amended) to the laws and regulations, the latest laws and regulations will automatically take precedence and fulfilment of the legal aspects in this National Interpretation document must follow the new regulations. Finally, INA NIWG would like to express sincere gratitude to all parties who have contributed in the development and completion of this National Interpretation document. 3 Draft 1 – National Interpretation RSPO Principles & Criteria 2018 Table of Contents Preface Table of Content .............................................................................................................................................. 3 Preamble .......................................................................................................................................................... 4 1. Scope .......................................................................................................................................................... 4 2. RSPO Vision Theory of Changed (ToC) ..................................................................................................... 6 3. Outcome Focus ........................................................................................................................................... 7 4. Stucture of the RSPO P&C .......................................................................................................................... 8 Impact Goal - Prosperity: Competitive, Resilient and Sustainable Sector Principle 1 : Behave Ethically and Transparently ........................................................................................ 10 Principle 2 : Operate Legally and Respect Rights ....................................................................................... 14 Principle 3 : Optimize productivity, efficiency, positive Impacts and resillience ........................................... 17 Supply chain requirements for mills ............................................................................................................. 27 Impact Goal – People: Sustainable livelihoods and poverty reduction Principle 4 : Respect community and Human Rights and deliver benefits .................................................. 34 Principle 5 :Support smallholder inclusion ................................................................................................... 50 Principle 6 : Respect worker’s rights and condition ..................................................................................... 54 Impact Goal – Planet: Conserved, protected, and enhanced ecosystems that provide for the next generation Principle 7 : Protect, conserved, and enhance ecosystems and the environtment ..................................... 67 Annex 1 – table of member of INA NIWG ...................................................................................................... 93 Annex 2 – Definitions ...................................................................................................................................... 95 Annex 3 – Key International laws and conventions applicable to the production of palm oil ........................ 107 Annex 4 – Implementation procedure for Indicator 2.3.2 .............................................................................. 123 Annex 5 – Transition from HCV to HCV-HCS Assessment .......................................................................... 124 1 Draft 1 – National
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