1. Sustainability and Palm Oil
Globoil 2015
© Kate Holt / WWF-UK

2. WWF IN SHORT +100 +5000 1961 +5M WWF is in over 100 countries, on
5 continents
WWF has over
5,000 staff worldwide
1961
+5M
WWF was founded
In 1961
WWF has over
5 million supporters

3. WWF works with business and government on arrange of sustainability themes
Forestry
Fisheries
Freshwater
Finance
Agriculture
Aquaculture
Climate Change
Markets
Places
Policies
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4. Palm oil’s success… Versatile with multiple applications
Relatively disease resistant
Requires less inputs than most veg oils
High volume of end product obtained from conversion
High yields per hectare
Provides livelihood for millions
Affordable oil for a wide range of consumers
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5. …and important role in India….
The largest importer of palm oil in the world – 20% of global imports.
Domestic production challenging due to unfavorable conditions and long gestation periods.
Indonesia largest supplier (~70% share) followed by Malaysia.
~90% of PO in India is used for cooking/food items.
Demand to reach 25 MMT in 2025.
India‘s production of PO is a fraction of total demand.
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6. …has not been without consequences.
ENVIRONMENTAL
SOCIAL
Deforestation through slash and burn leading to biodiversity loss.
Climate change from emissions and release of sequestered carbon from peatland draining and burning.
Soil, water, and air pollution from use of inputs which have effects on local ecologies.
Population displacement of local people for plantations.
Disputes over workers’ rights and fair wages and conditions.
Secondary and tertiary health effects from smoke inhalation caused by haze.
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7. Part of the global challenge of climate change…
Deforestation and forest degradation are responsible for around 15% of global greenhouse gas emissions.
“Without effective action to curb emissions from deforestation and forest degradation, the probability of limiting global warming to 2°C drops from more than 90% to just 35%”.
Climate Solutions: WWF’s Vision for 2050
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8. Information descriptor
…with implications for business.
Insuring against supply risks
Buying from certified sustainable vendors/suppliers is one way to insure against supply risks and shifting legal frameworks.
Protecting brand value
Using sustainable palm oil shows leadership on a key global issue and a way to increase company goodwill.
Maintaining access to markets
Sustainable palm oil is being increasingly demanded by consumers in a range markets.
Attracting investors and credit
Long term investors and a growing number of banks are making aspects of sustainability a precursor to financing.
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9. Progress through the Roundtable on Sustainable Palm Oil
Started in 2003, a Industry wide, multi-stakeholder group
Growers, traders, processors, retailers, NGOs, and investors
Promotes palm oil production practices that help reduce deforestation, preserve biodiversity and respect the livelihoods of local communities.
Ensures the integrity of the supply chain
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10. …and elsewhere, both overseas and locally.
Major global initiatives
FMCG: Unilever Global: 100% commitment to CSPO by 2022, P&G deforestation free & traceable by 2020, Reckitt -100% CSPO/B&C by 2020, J&J - 100% GP by 2015 (already met) and 100% physical PO by 2020.
Producers and Traders: Wilmar – Deforestation and peat free by 2022, Cargill – Fully traceable by 2020 in Indonesia, GAR – Commitment to physical CSPO by 2025.
Indonesia: Indonesian Sustainable Palm Oil (ISPO) , Indonesian Palm Oil Pledge (IPOP) by 5 major producers.
Malaysia: Malaysian Sustainable Palm Oil (MSPO), major effort to legally protect national forests.
India
Companies: RSPO membership increased to 43 in 2015, Certification for 9 companies/14 units as, Green Palm Certificates: 8 companies buying in 2015.
Notable developments:
HUL – Fully covered by GP
Adani Wilmar – 4 units certified
Godrej Agro –2 units certified
Galaxy Surfactants – All relevant units certified
Kamani Oils - 1 unit certified
Fine organics – First unit certified
Croda – 1 unit certified
VVF – 2 units certified
Croda and Worldchem – 1 unit certified
RSPO re-established in Mumbai plus Roundtable initiatied by Solidaridad in Delhi.
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11. But significant challenges remain…
Broader trade and tariff considerations
What policy incentives are needed to assist sustainable trade?
Cost and complexity
What supply chain innovations make sustainable palm oil cheaper?
Consumer awareness
What messages will most appeal to Indian consumers to be build demand?
Lack of awareness and understanding in industry
What training is needed ?
Improvements to sustainability methods
What will industry do to support the strengthening of sustainability frameworks?
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12. …and answers can only be found by working together.
Sustainable
imports
INDIAN ROUNDTABLE
POLICY OPTIONS
COMPANY COMMITMENTS
SUPPLY CHAIN INNOVATION
AWARENESS AND TRAINING
GUIDELINES OR STANDARDS FOR DOMESTIC PRODUCTION
INTERNATIONAL LINKAGES
BUSINESS
GOVERNMENT
INDUSTRY ASSOCIATIONS
ACADEMIA AND RESEARCH
CIVIL SOCIETY
INDONESIA
MALAYSIA
Sustainable
domestic production
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13. What can be done straight away?
Seek membership of RSPO and become an active member
Map your supply chain and identify areas of improvement in terms of traceability of to suppliers
Make a positive public commitment to sustainable palm and work only with certified suppliers
Acquire RSPO supply chain certification by complying with RSPO parameters and audits
Collaborate with industry members and civil society to raise profile of issues for improving the overall market.
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14. THANK YOU Philip Tapsall Director, Sustainable Business WWF-India
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15. Additional information
13 January

16. Information descriptor
RSPO - Principles and criteria to define sustainability
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17. Information descriptor
RSPO - Different approaches and degrees
There are three main categories of ‘Sustainable’ Palm Oil supply chain options available for companies who are members of the Palm Oil value chain
SG (Segregated)
Fully traceable back to mill
Most expensive but best option
Separate facilities for certified palm oil and non certified oil
Highest level of sustainability certification
Ensures complete compliance with Zero deforestation commitments
MB (Mass Balance)
Partially traceable
Permits mixing of CSPO and Non CSPO provided records are kept of volumes at each step
Balanced option between cost and effectiveness
Most popular CSPO approach globally
Labeling is allowed if the final product contains PO less or equal to the proportion of CSPO in the mix
B&C (Book and Claim)
Offset system where buyer pays a sum to producers of sustainable PO for every ton purchased
Buyer gets certificates per ton which supports producers of CSPO
Market decides price of certificates which can be traded
Starter option for companies – not a long term solution
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18. RSPO India RSPO India Mr Yogesh Kolte Head, RSPO India
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