Promoting The Growth And Use Of Sustainable Palm Oil RSPO Presentation for Palm Oil Sector Ghana...

Promoting The Growth AndUse Of Sustainable Palm Oil

RSPO

www.rspo.org

Presentation for Palm Oil Sector Ghana

March 2009

RSPORoundtable on Sustainable Palm Oil

• To inform on the aims and organization of the Roundtable on

Sustainable Palm Oil (RSPO).

• To discuss upon the key documents created by RSPO to guide

supply chain members in achieving an RSPO certificate.

• Discuss upon National Interpretation and the implementation of

the RSPO Principles & Criteria IN GHANA.


Objectives

Introduction to RSPO: What?

RSPO = Roundtable on Sustainable Palm Oil (www.rspo.org)

Transparent, global, multi-stakeholder organization that was established in

2003 to address bad practices in oil palm cultivation.


http://www.rspo.org/

Introduction to RSPO: Multi-stakeholder?


Progress through annual Roundtable (RT) Meetings:2003 20052004 20072006

RT 1 RT 5RT 4RT 3RT 2

•First meeting

•Statement of Intent

•P&C commence •P&C adopted

•Certification

•Smallholder/OG

•2-year P&C trial

•P&C progress

•Certification

•Supply Chain options

•2-year trial result

•P&C review

•Progress NI

•Certification systems

unveiled

Introduction to RSPO: Action to Date?

2008

RT 6

•First certificates

•Trading RSPO CSPO

•Communication &

Claims

•Involving SH

•Involving

governments


RSPO Key Documents Listed

• RSPO Principles & Criteria (P&C)

• RSPO Guidance for National Interpretation of P&C

• RSPO Certification Systems

• RSPO Supply Chain Certification Systems

• RSPO Guidelines on Communication & Claims


Document 1: RSPO P&C

8 Principles 39 Criteria1) Commitment to transparency. 2

2) Compliance with applicable laws and regulations. 3

3) Commitment to long-term economic and financial viability. 1

4) Use of appropriate best practices by growers and millers. 8

5) Environmental responsibility and conservation of natural resources and biodiversity. 6

6) Responsible consideration of employees and of individuals and communities affected by growers and millers.

11

7) Responsible development of new plantings. 7

8) Commitment to continuous improvement in key areas of activity. 1

Principle => Criteria => Indicator => Guidance

Aim of document: Guide a production unit (plantation + mill) towards an RSPO Certificate for Sustainable Palm Oil.


Engaging more than 3 million smallholders

They maintain 20% of acreageRSPO Task Force on smallholdersPromotes smallholder interests within RSPORaises awareness among smallholdersAdapts RSPO standards and proceduresDevelops group certification protocol

RSPO P&C: Smallholders?RSPORoundtable on Sustainable Palm Oil

Document 2: RSPO National Interpretation

• The need to ensure that implementation of P&C is not just up to expectations of

stakeholders, but congruent or compatible with the norms, laws and values of

countries, or sovereign states.

CRUCIAL for negating potential conflicts between an international standard and

national laws, but also to allow for national level stakeholder consultation!

Without a National Interpretation no one can obtain an RSPO certificate!

• Aim of document: to assists oil palm growers and millers in developing a National

Interpretation for each of the Principles (including its Criteria and Indicators).


Document 2: RSPO National Interpretation

National interprations

Papua New Guinea (April, 2008)Malaysia (April, 2008)Indonesia (May, 2008)

Colombia / L. America (in progress)

Ghana / Africa ????


Document 3: RSPO Certification Systems

What happens when a production unit claims to comply to their National Interpretation

of the RSPO P &C ?

The RSPO Verification Working Group (VWG) was established in order to provide

detailed recommendations on certification arrangements for consideration by RSPO’s

Executive Board (EB).

Aim of document: to ensure that RSPO assessments are carried out with objectivity and

consistency.


Document 3: RSPO Certification Systems

Certification Systems

Section 1: Introduction

Section 2: Certification Standard

Section 3: Accreditation Requirements

Section 4: Certification Process Requirements

Section 5: Funding of RSPO Certification

Annex 1: Procedure for Endorsement of

National InterpretationsAnnex 2: Procedure for Approval of

Certification Bodies

Annex 3: Major Nonconformities –Compulsory Indicators

Annex 4: Format for Public Summary Report

Annex 5: Procedure for complaints andGrievances


Where we are today

Plantations

Refiners & Blenders Ingredient

Manufacturers

Retailers

Mill

Product Manufacturers

Transport & Shipping

The palm oil supply chain:

Smallholders


Document 4: RSPO Supply Chain Certification Systems

Supply chain certification procedure

Where we are today

Verifies movement of oil through supply chainStep-by-step documentation

Short-term: self-assessmentsLong-term: third-party certificationDetails: RSPO Supply Chain Certification Systems



Aim of document = To set up a credible and practical system for the trade of RSPO certified

palm oil.

In order to ensure credibility, this document covers procedures to guarantee that:

- All facilities taking part in the supply chain of RSPO certified palm oil comply with relevant

requirements;

- Claims of RSPO members relating to the production, procurement and use of RSPO certified

palm oil are true.


Annex 6 (p 25 - 27): « Supply Chain Certification Requirements for different supply chain models »


IDENTITY PRESERVED

Presenting the 4 Supply Chain Models


Designed and managed by Utz Certified,www.utzcertified.org


SEGREGATION




MASS BALANCE




BOOK & CLAIM


Designed and managed by GreenPalm,www.greenpalm.org

Growers, end-users trade volume credits online


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

Document 5: Communication & Claims

Use of RSPO logoClaim detailsStory-telling on supply chain modelOn-pack, about-product, corporate communications


Claims and corresponding supply chain systems: #1

Where we are today

“This product contains [only/..%] RSPO-certified sustainable palm oil”

“This product contains [only/..%] RSPO-certified sustainable palm oil”

‘Identity Preserved’

‘Identity Preserved’

Specific RSPO-certified

plantation

Specific RSPO-certified

plantation

‘Segregation’‘Segregation’

Several RSPO-certified

plantations

Several RSPO-certified

plantations



Claims and corresponding supply chain systems: #2

Where we are today

“... supports the production of RSPO-certified sustainable palm oil

(equivalent to ..% of the palm oil utilized)

“... supports the production of RSPO-certified sustainable palm oil

(equivalent to ..% of the palm oil utilized)

‘Mass Balance’‘Mass Balance’

RSPO-certified + conventional plantations

RSPO-certified + conventional plantations

CertificatesCertificates

RSPO-certified plantations

RSPO-certified plantations

‘Book & Claim’



Example: Segregation (S)

DefinitionThe Segregation supply chain model assures that (minimum 95%) RSPO certified sustainable palm oil and its derivatives delivered to the end user come from RSPO certified sources. It permits the mixing of RSPO certified sustainable palm oil from a variety of sources.

Allowed Storytelling• Use of RSPO logo (orange letters spelling RSPO)• Story telling on practices on certified plantations; no reference to individual plantations; story telling on making supply chains traceable to origin.• Inform audience that this supply chain option encourages the industry to set up segregated supply chains and reach a mainstream level of sustainable palm oil trade. To communicate this the following phrase must be used: “[company X] in cooperation with suppliers promotes the production of RSPO certified sustainable palm oil.”



Action Guiding document

1a) Develop a National Interpretation. RSPO National Interpretation document

1b) Implement RSPO P&C. RSPO Principles & Criteria document

2) Obtain an RSPO certificate for CSPO. RSPO Certification Systems document

3) Trade RSPO CSPO and/or its refined products. RSPO Supply Chain Certification Systems document

4) Make a claim on your product. RSPO Communication & Claims document


Actions linked to 5 documents

Step 1

Develop a National Interpretation

Obtain a certificate through the RSPO

Certification System

Step 2

Step 3

Step 4Communication &

Claims

Plantations + OGS +SH

= production unit

Compliance with RSPO Principles &

Criteria

• ± 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

RSPO at end of 2008…RSPORoundtable on Sustainable Palm Oil

RSPO’s ambitions:

Grow supply of certified oilGrow demand for certified oilGrow RSPO membershipEngage governmentsEngage and educate smallholders

RSPO’s ambitions…RSPORoundtable on Sustainable Palm Oil

RSPO in GHANA?

The Palm Oil Sector of Ghana will have to work on two levels:

•LEVEL 1: Developing a Ghanaian National Interpretation (NI) of the P&C;

and

• LEVEL 2: Individually continue the implementation of the RSPO P&C and supply chain certification requirements.


LEVEL 1: NATIONAL INTERPRETATION

Step 0: Discuss with other palm oil industries before starting the process. DONE

Step 1: Sensitization of all stakeholders (government, research, processors, banks, ngo’s, ….)

Step 2: Establish a Steering Committee: Its role:

•Who should be in the Working group? = to create the NI Working Group (NIWG)

•How should the process be undertaken? = to create TOR, Code of Conduct, consensus model

•When will the guidance be delivered? = to develop a timeline with mile stones and outcome

Step 3: Appoint a national facilitator (or co-ordinator) and seek RSPO Executive Board approval.

PROCEDURE FOR ENDORSEMENT OF NATIONAL INTERPRETATIONS_GOPDC



Step 4: Let TOR and CoC be approved by foreign experts in addition to approval by NIWG during

first meeting (=> consensus).

Step 5: Organize minimum 2 (but better 4) physical meetings with NIWG (=> minutes on RSPO website).

Step 6: Organize two or more separate public consultations periods of 30 days each.

Step 7: Make during the process several drafts of the NI P&C.

Step 8: Submit final draft to the Executive Board for endorsement.


Remarks:

• Process must be initiated by an RSPO member;

• Identification of stakeholders for the NI Working Group.

• Each stakeholder group must nominate a representative for the Working Group.

• Recommended to invite foreign and local technical experts for discussion during the meetings.

• Recommended to invite RSPO accredited certification bodies to assist during the meetings.

• Translate during the process in the local languages.

• Keep RSPO informed at all times: meetings, minutes, drafts, submission of work plan, etc.

• Seek funding.



LEVEL 2: P&C IMPLEMENTATIONRSPORoundtable on Sustainable Palm Oil

GROWERS & MILLERS => Implement P&C

SUPPLY CHAIN MEMBERS => Implement supply chain certification requirements

SMALLHOLDER ASSOCIATIONS =>Implement P&C version for smallholders

Assistance needed from:

Environmental consultants and ngo’s

Social & Developmental consultants and ngo’s

Trade Unions

Banks / Investors

Government

Research

…


Discussion on RSPO in Ghana.

www.rspo.orgRSPORoundtable on Sustainable Palm Oil

Thank you for your attention.

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