Sustainable Palm Oil Initiative: Transforming Markets for a Sustainable Future

1. An International Multi Stakeholder Initiative Transforming Markets to make sustainable palm oil the norm

2. Outline What is palm oil? The need for certified 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” Ca’daMosto,15th century explorer,on discovering palm oil.

4. Why palm oil?

5. Palm Oil is…. • A highly versatile vegetable oil • Used in many food and non-food products • Produced in tropical countries • Rapidly growing market share • World’s top selling vegetable oil

6. Highly versatile • Palm oil is used in more than half of packaged supermarket products today

7. Growth of world’s palm oil production

8. Palm oil – world’s number one vegetable oil Others 19% palm oil 30% Sunflower 8% Rapeseed 14% Soy 29%

9. Top palm oil producing countries

11. Advantages of palm oil • are highly efficient producers of oil • require less land than other oil crops

12. Average yield per year (tonnes of oil per hectare)

13. Why sustainable palm oil?

14. More than 1 million workers More than 3 million smallholders Many morehousehold members

15. Social issues in oil palm cultivation • Land ownership conflicts • Worker’s rights and conditions • Treatment of smallholders

16. Environmental issues in oil palm cultivation • Forest, peatland conversion • Climate change • Biodiversity loss

17. THE RSPO

18. About the Roundtable on Sustainable Palm Oil: Established in 2004 Began with 7 members International Multi-stakeholder not for profit association Promotes the growth and use of sustainable oil palm products through global standards

19. 8 FUNDAMENTAL PRINCIPLES & 39 CRITERIA Principle 1: Commitment to transparency; NGO Principle 2: Compliance with applicable laws and regulations; Principle 3: Commitment to long-term economic and financial viability; Principle 4: Use of appropriate best practices by growers and millers Principle 5: Environmental responsibility and conservation of natural resources and biodiversity Principle 6: Responsible consideration of employees and of individuals and communities affected by growers and mills (case study) Principle 7: Responsible development of new plantings Principle 8: Commitment to continuous improvement in key areas of activity

20. 8 PRINCIPLES & 39 CRITERIA • Commitment to transparency; NGO • Compliance with applicable laws and regulations; • Commitment to long-term economic and financial viability; • Use of appropriate best practices by growers and millers • Environmental responsibility and conservation of natural resources and biodiversity • Responsible consideration of employees and of individuals and communities affected by growers and mills (case study) • Responsible development of new plantings • Commitment to continuous improvement in key areas of activity

21. Over 800 members from 50 countries **As of April 2012

22. Multi Stakeholder **As of April 2012

23. Membership by country UK **As of April 2012

24. Where we are today

25. 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

26. Code of Conduct: “All members will publicly commit to production, procurement and use of sustainable palm oil” – Annual Communications on Progress Grievance panel supervises compliance

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

28. 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

29. 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

30. Papua New Guinea (2008) • Malaysia (2008) • Indonesia (2008) • Colombia / L. America (2010) • Ghana (2011) • Thailand (2012) Respecting diversity: national interprations of guidelines (see: www.rspo.org)

31. 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 Plantation, mill certification procedure

32. Supply chain mechanisms

33. The palm oil supply chain: • Many links • Potential for mixing Plantations Smallholders Mill Storage, transport, shipping Product Manufacturers Retailers Refiners & Blenders Ingredient Manufacturers

34. Supply chain systems ‘Identity preserved’:Sustainable oil kept apart, traceable to plantation ‘Segregated’:Mixing of sustainable palm oil batches is allowed ‘Mass Balance’:Mixing of sustainable and conventional oil allowed if monitored administratively Monitored by UTZ Certified, www.utzcertified.org

38. Supply chain system: credit trading ‘Book and Claim’:- No tracking, tracing or monitoring of oil- Growers, end-users trade volume credits online Managed by GreenPalm, www.greenpalm.org

40. Verifies movement of oil through the supply chain • Step-by-step documentation • Performed by 3rd-party certification bodies • More info: www.rspo.org Supply chain certification procedure

41. Communications guidelines & claims

42. Use of RSPO Logo • Claim details • Story-telling on supply chain model • Communications Communication guidelines and claimsSpecify communication on production, procurement and use of RSPO-certified sustainable palm oil

43. Two possible claims in communication, marketing: “... contains [only/.. %] RSPO-certified sustainable palm oil” - Used with ‘Identity Preserved’, ‘Segregated’ systems “... advances the production of RSPO-certified sustainable palm oil (equivalent to .. % of the palm oil utilized)” - Used with ‘Mass Balance’, ‘Book and Claim’ systems

44. “This product contains [only/..%] RSPO-certified sustainable palm oil” ‘Identity Preserved’ ‘Segregated’ Several RSPO-certified plantations Specific RSPO-certified plantation Claims and corresponding supply chain systems: #1

45. “... advances 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 Claims and corresponding supply chain systems: #2

46. Milestones

47. RSPO trademark developed for on/about-product communication Rules for use, communication and licensing under development Trademark registration procedures begun in more than 60 countries Expected launch for use: 2011 Consumer communication

48. April 2012 : • Launched trademark – June 2011 • >800 members • Annual production capacity: 5.7m metric tonnes • Total production area: 1.148.134 hectares • 30 grower companies certified • 141 mills certified • 166 supply chain companies certified • 319 supply chain facilities certified