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Sustainable Palm Oil Palm Sustainable December 2013December Sustainable palm oil palm Sustainable p1 RSPO- Principles og Criteria's Production of palm oil • The company's commitment to ensuring transparency in plantation operations, among other things by oil palm plantations should disclose their management plans • Legislation must be observed so as land rights for indigenous peoples and other local communities are respected • Commitment to management planning that aims economic and financial viability in the long term • "Best practices" methods to be used in both oil palm plantations in oil refineries. This includes restrictions on the use of pesticides, control soil erosion, protection of soil fertility and good water quality • Protection of natural resources and biodiversity. Protection of rare or endangered species and protection of particularly valuable forests • Responsible consideration for employees and local communities affected by plantations and refineries • Responsible development of new plantations. Among other things can not be established plantations in areas with biologically or culturally especially valuable forests, such as primary forest • Requirements for monitoring and continuous improvement of plantation operations. p 2 What is sustainable palm oil? Certified sustainable palm oil (CSPO) and palm kernel oil (CSPKO) is produced by palm oil plantations which have been independently audited and found to comply with the globally agreed environmental standards devised by the Roundtable on Sustainable Palm Oil (RSPO). These stringent sustainability criteria relate to social, environmental and economic good practice. The RSPO was founded in 2003 and spearheads the global drive for environmentally-friendly production of this crucial crop. As the world’s leading initiative on sustainable palm oil, it is working on many fronts and in many countries. Members of the RSPO and participants in its activities come from a variety of backgrounds. They include: • Oil palm growers • Manufacturers and retailers of palm oil products • Environmental non-governmental organisations • Social non-governmental organisations The principal objective of RSPO is “to promote the growth and use of sustainable palm oil through cooperation within the supply chain and open dialogue between its stakeholders”. 40% of the world’s palm oil producers are members of the RSPO. It’s important to understand, however, that being a member of the RSPO does not commit you to buying or using CSPO or CSPKO. In turn buying from a member of the RSPO does not mean that you are automatically buying CSPO, CSPKO, or supporting sustainable production. p 3 The journey so far Sustainable oil http://www.youtube.com/watch?v=AN6SOX5N_ EE&feature=player_embedded p 4 Sustainable supply Sustainable supply chain systems p5 Overview Green Palm Overview • GreenPalm exclusively operates the Book & Claim supply chain option for the RSPO - Roundtable on Sustainable Palm Oil. • The GreenPalm option allows RSPO certified growers to convert their certified oil into certificates, one ton of certified crude palm oil or palm kernel oil converts to one certificate. Offers for these certificates are then placed on the GreenPalm Market. • Product manufacturers who use palm, palm kernel oil or any palm based derivative and fraction in their products then place offers for these certificates. • The claim can then be made that your company / product supports the production of RSPO certified sustainable palm oil. The full value of each certificate is sent back to the RSPO producer who can then reinvest this premium to help tackle the environmental and social issue created by the production of palm oil. What is Green Palm • GreenPalm is a certificate trading program which is designed to tackle the environmental and social problems created by the production of palm oil. • By selling certificates through the GreenPalm program palm oil producers can earn more for their crop through sustainable farming. • By buying a product which bears the GreenPalm logo, consumers can make a positive contribution to the production of certified sustainable palm oil (CSPO) and palm kernel oil (CSPKO). Sustainable palm oil production • By making or selling products which are covered by the GreenPalm program food manufacturers and retailers can reward palm producers for working in a sustainable and responsible way, and tell their customers that they have done so. p 6 Why choose GreenPalm? GreenPalm is a completely new approach to tackling the problems caused by a complex international industry. GreenPalm pays a financial premium to producers who can prove they are environmentally and socially responsible A straightforward, flexible and easily implemented system, it is already starting to drive improvements. It’s based on the simple principle that if you pay producers to do the right thing they will continue to do it and, hopefully, their competitors will follow. Sustainable production of palm oil GreenPalm works by enabling a financial premium to be earned by producers who can prove they are environmentally and socially responsible, who are not destroying primary forest, and who develop plans to continually improve their operations. And because it works through the existing supply chain, it safeguards millions of palm oil jobs in some of the world’s poorer regions. p 7 How it works The key to understanding the GreenPalm program is to know that palm oil supplies from different plantations, mills and even countries are intermingled at each stage of the production and delivery process. Under normal circumstances it is therefore impossible for palm oil purchasers to know exactly where their oil has come from and how it has been produced. It is possible of course to process and ship palm oil separately – it’s just that physical segregation adds cost at every stage. The GreenPalm program works by bypassing the physical supply chain completely. Here’s how… RSPO certified palm oil producers are invited to register a quantity of their output with the GreenPalm program. They are awarded one GreenPalm certificate for each ton of palm oil which has been sustainably produced. They can then put those certificates up for sale here on the GreenPalm web based trading platform. Sustainable production of palm oil Manufacturers or retailers can then bid for and buy those certificates on line, in order to be able to claim that they have supported the sustainable production of palm oil. Consumers can then make environmentally responsible purchasing decisions. p 8 The palm oil itself is sold, processed and purchased in the usual way. Palm oil producers can earn more for their crop. How to begin p9 How to begin p10 RSPO Certification 1 Introduction What does supply chain certification accomplish? The Roundtable on Sustainable Palm Oil (RSPO) Through supply chain certification, a company proves certification framework contains two types of that its operations comply with the rules governing the certification. Independent, third-party certification bodies entire supply chain of RSPO-certified palm oil products. have been approved by the RSPO to handle one or both The RSPO has devised four supply chain systems, three types of certification. of which follow physical oil through the supply chain; 1 Producers can be certified to verify compliance to the Identity Preserved (IP), Segregated (SG) and Mass ‘RSPO Principles & Criteria ‘ during the production of Balance (MB). These three physical systems all have sustainable palm oil. their own requirements, e.g. to physically segregate 2 All other companies in the global palm oil supply sustainable palm oil products or to specifically chain administrate all purchases and sales of certified can be certified to ensure that market claims are products. Certification includes one or more audits valid and can be verified. to verify that the relevant requirements are met. Below explains the second of the two types, i.e. Audits also serve to verify public claims and ‘supply chain certification’. It contains some pointers to statements companies make about their sales of help companies prepare for certification. Further certified products. The fourth supply chain system, information is available through RSPO’s online Market Book & Claim (B&C), is based on certificate trading and Center at www.rspo.eu. does not trace physical oil throughout the supply chain. Therefore, these facts does not describe this system in further details. p 11 RSPO Certification 2 Does my company need supply chain The supply chain certification procedure certification? After a company has selected a certification body, the All companies that store, transport, trade, refine, process, pack auditor will explain the process in detail and confirm the or label sustainable palm oil products must be certified if they scope of the audit. Audits check the company against all want to make product-related claims regarding certified palm oil relevant requirements and will typically include visits to (or derivatives). Only retail companies that do not manufacture, the purchasing department, processing departments and modify, (re)package or (re)label consumer goods in any way the sales department. No certificate will be granted if are exempt from the certification requirement. non-conformances are observed. If non-conformances Certifications are valid for one year, unless companies can are not addressed within three months of the audit, a full show that they purchase less than 500 ton of palm oil re-audit will be required. When all issues have been products per year, in which
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