Promoting The Growth And Use Of Sustainable Palm Oil RSPO Presentation for Palm Oil Sector Ghana March 2009 RSPO Roundtable 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. RSPO Roundtable on Sustainable Palm Oil Objectives

Introduction to RSPO: What? RSPO = Roundtable on Sustainable Palm Oil ( Transparent, global, multi-stakeholder organization that was established in 2003 to address bad practices in oil palm cultivation. RSPO Roundtable on Sustainable Palm Oil

Introduction to RSPO: Multi-stakeholder? RSPO Roundtable on Sustainable Palm Oil

Progress through annual Roundtable (RT) Meetings: RT 1RT 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 Roundtable on Sustainable Palm Oil

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 RSPO Roundtable on Sustainable Palm Oil

Document 1: RSPO P&C 8 Principles39 Criteria 1) 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. RSPO Roundtable on Sustainable Palm Oil

Engaging more than 3 million smallholders They maintain 20% of acreage RSPO Task Force on smallholders Promotes smallholder interests within RSPO Raises awareness among smallholders Adapts RSPO standards and procedures Develops group certification protocol RSPO P&C: Smallholders? RSPO Roundtable 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). RSPO Roundtable on Sustainable Palm Oil

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 ???? RSPO Roundtable on Sustainable Palm Oil

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. RSPO Roundtable on Sustainable Palm Oil

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 Interpretations Annex 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 and Grievances RSPO Roundtable on Sustainable Palm Oil

Where we are today Plantations Refiners & Blenders Ingredient Manufacturers Retailers Mill Product Manufacturers Transport & Shipping The palm oil supply chain: Smallholders RSPO Roundtable on Sustainable Palm Oil Document 4: RSPO Supply Chain Certification Systems

Supply chain certification procedure Where we are today Verifies movement of oil through supply chain Step-by-step documentation Short-term: self-assessments Long-term: third-party certification Details: RSPO Supply Chain Certification Systems RSPO Roundtable on Sustainable Palm Oil Document 4: 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. RSPO Roundtable on Sustainable Palm Oil Annex 6 (p ): « Supply Chain Certification Requirements for different supply chain models » Document 4: RSPO Supply Chain Certification Systems

IDENTITY PRESERVED Presenting the 4 Supply Chain Models RSPO Roundtable on Sustainable Palm Oil Designed and managed by Utz Certified, Document 4: RSPO Supply Chain Certification Systems

SEGREGATION RSPO Roundtable on Sustainable Palm Oil Designed and managed by Utz Certified, Document 4: RSPO Supply Chain Certification Systems

MASS BALANCE RSPO Roundtable on Sustainable Palm Oil Designed and managed by Utz Certified, Document 4: RSPO Supply Chain Certification Systems

BOOK & CLAIM RSPO Roundtable on Sustainable Palm Oil Designed and managed by GreenPalm, Growers, end-users trade volume credits online Document 4: RSPO Supply Chain Certification Systems

Communication guidelines and claims Specify communication on production, procurement and use of RSPO-certified sustainable palm oil Document 5: Communication & Claims Use of RSPO logo Claim details Story-telling on supply chain model On-pack, about-product, corporate communications RSPO Roundtable on Sustainable Palm Oil

Claims and corresponding supply chain systems: #1 Where we are today Claim to be usedPrescribed supply chainPrescribed supply base “This product contains [only/..%] RSPO-certified sustainable palm oil” ‘Identity Preserved’ Specific RSPO- certified plantation ‘Segregation’ Several RSPO- certified plantations RSPO Roundtable on Sustainable Palm Oil Document 5: Communication & Claims

Claim to be usedPrescribed supply chainPrescribed supply base 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) ‘Mass Balance’ RSPO-certified + conventional plantations Certificates RSPO-certified plantations ‘Book & Claim’ RSPO Roundtable on Sustainable Palm Oil Document 5: Communication & Claims

Example: Segregation (S) Definition The 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.” RSPO Roundtable on Sustainable Palm Oil Document 5: Communication & Claims

ActionGuiding 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 RSPO Roundtable on Sustainable Palm Oil Actions linked to 5 documents

Step 1 Develop a National Interpretation Obtain a certificate through the RSPO Certification System Step 2 Step 3 Step 4 Communication & 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… RSPO Roundtable on Sustainable Palm Oil

RSPO’s ambitions: Grow supply of certified oil Grow demand for certified oil Grow RSPO membership Engage governments Engage and educate smallholders RSPO’s ambitions… RSPO Roundtable 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. RSPO Roundtable on Sustainable Palm Oil

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 RSPO Roundtable on Sustainable Palm Oil

LEVEL 1: NATIONAL INTERPRETATION 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. RSPO Roundtable on Sustainable Palm Oil

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. RSPO Roundtable on Sustainable Palm Oil LEVEL 1: NATIONAL INTERPRETATION

LEVEL 2: P&C IMPLEMENTATION RSPO Roundtable 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 …

RSPO Roundtable on Sustainable Palm Oil Discussion on RSPO in Ghana.

RSPO Roundtable on Sustainable Palm Oil Thank you for your attention.