RSPO

www.rspo.org

Roundtable on Sustainable Palm Oil

PALMEX THAILAND
8-9 September 2011
Sustainable Palm oil and the Environment
By: Salahudin Yaacob, Technical Director
on behalf of Darrel Webber, Secretary General of RSPO

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CONTENT

Roundtable on Sustainable Palm Oil

Palm oil in global context

Sustainable Palm oil
RSPO
Statistics on Sustainable palm oil
RSPO Trademark

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What is palm oil?

Roundtable on Sustainable Palm Oil

Palm Oil...
A highly versatile vegetable oil
Used in many food and non-food products
Produced in tropical countries
Rapidly growing market share
Worlds top selling vegetable oil

RSPO

World palm oil production

Roundtable on Sustainable Palm Oil

Source: FAO statistic 2011

Figures for year 2009

World
Indonesia
Malaysia
Thailand

Area (ha)

FFB (mt)

CPO (mt)

14,921,224
5,000,000
4,002,000
510,213

210,326,664
86,000,000
84,842,000
8,162,380

45,083,932
20,550,000
17,564,900
1,310,000

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Oil Yield

Roundtable on Sustainable Palm Oil

Average yield per year (tonnes of oil per hectare)

Oil palm: 3.68

Rapeseed: 0.59
Sunflower: 0.42
Soybean: 0.36

Source: Oil World

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Palm oil facts

Roundtable on Sustainable Palm Oil

Palm oil production in year 2010 is about 45.9 million tonnes (33% of
worlds production for oils and fats)
Projection for oil palm production in 2015 is 62-63 million tonnes and
76-77 million tonnes in 2020
Estimate further 12 million hectares of new land to be developed to
satisfy 2020 increment
In Malaysia, export value of palm oil and its derivatives = USD16.5 billion
(7.5% of gross national product/ 4th largest contributor to national
economy in 2009)
In Indonesia, palm contributed USD7.9 billion to GNP in 2007
Oil palm is 6-10 times more productive than the competing edible oils
Oil palm contributed more than one third of global vegetable oils
production but only requiring about 5 % of the worlds total area under
vegetable oil crops.

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Roundtable on Sustainable Palm Oil

Why go
sustainable?

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Why sustainable palm oil?

Roundtable on Sustainable Palm Oil

Millions of people are

dependent on palm oil
More than 1 million
workers
More than 3 million
smallholders
Many more
household members

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Why sustainable palm oil?

Roundtable on Sustainable Palm Oil

Environmental issues in oil palm cultivation

Forest, peatland
conversion
Climate change
Biodiversity loss

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Why sustainable palm oil?

Roundtable on Sustainable Palm Oil

New way of doing business

Business communities strive towards becoming
good corporate citizen
Multidimensional definition of sustainability
through transparency and stakeholder
involvement
Market driven initiatives providing a win win
situation to producer and user

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Roundtable on Sustainable Palm Oil

Hence,
the RSPO

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About the RSPO

Roundtable on Sustainable Palm Oil

Started in 2003 with 7 members

Formally established in April 2004
Multi-stakeholder association
International non-for-profit association
Palm oil supply chain
Promotes growth & use of sustainable oil palm
products through global standards
RSPO Principles and Criteria (P&C)

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Vision

Roundtable on Sustainable Palm Oil

RSPO will transform markets to make

sustainable palm oil the norm

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What is Sustainable Palm Oil?

Roundtable on Sustainable Palm Oil

RSPO seeks a balance development for the Palm Oil

industry that is Legal, Economically Viable,

Environmentally Appropriate and Socially

Beneficial

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Roundtable on Sustainable Palm Oil

Finding the Balance

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RSPO P & C

Roundtable on Sustainable Palm Oil

Law & Regulation

Economic /Financial Viability

Best Agriculture Practice

Transparency

RSPO

Sustainable
Palm Oil

Environmental

Social

Continuous Improvement

New Planting

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Sustainable Palm Oil

Roundtable on Sustainable Palm Oil

In brief, RSPO certified palm oil originated from

plantation that:
Management system and its implementation
done on transparent manner
Planted on land with clear tenureship
Operation complies with legal requirement
Proper management plan addressing
economic, social and environment
Replanting done to ensure sustainable
production

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Sustainable Palm Oil

Roundtable on Sustainable Palm Oil

In brief, RSPO certified palm oil originated from

plantation that:
Best management are practiced at all level of
operation
Biological control over chemical solution
Environmental evaluation identifying
biodiversity and HCVs are done and plan for
its management are compiled
Environmental impacts including GHGs
emission are minimised

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Sustainable Palm Oil

Roundtable on Sustainable Palm Oil

In brief, RSPO certified palm oil originated from

plantation that:

Social impacts are identified and managed

Management contribute to local communities and

socio-economy

Workers are taken care off

No conversion of primary forest and HCVs after Nov

2005

All activities are monitored and improvements are

made

Sustainable palm oil is traceable throughout the supply

chain

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Roundtable on Sustainable Palm Oil

Stakeholder /
Membership
representation

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Roundtable on Sustainable Palm Oil

Membership Value

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Membership Overall

Roundtable on Sustainable Palm Oil

Ordinary:
498

Steadily growing on
an annual basis
Membership allows
non certified
companies to aspire
towards certification
goal

656
members
Supply
Chain:
63

Affiliate:
95

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Our Members

Roundtable on Sustainable Palm Oil

Banks &Investors

Palm Oil Producers and/or traders

Social NGOs

Oil Palm Growers

Retailers

Environmental or Nature Conservation Groups

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Roundtable on Sustainable Palm Oil

Just within 3 years since the certification

of sustainable palm oil (CSPO) by the
Roundtable on Sustainable Palm Oil (RSPO),
a multi stakeholder initiative, the industry
reaches a turning point by hitting its first

million hectares of certified

production area around the world.

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RSPO Certified

Roundtable on Sustainable Palm Oil

TODATE

26 growers & 121 POMs

1.03 mil ha

105 companies, 187 SC certificates

4.96 million mt CSPO

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PHENOMENAL GROWTH

Roundtable on Sustainable Palm Oil

Year on Year Growth

100% from 2009 to 2010

CSPO Production
In less than 3 years, RSPO CSPO is 8% of PO production
5 million metric tonnes of CSPO
I million hectare of certified production area reached

Market Uptake
26% in 2009
More than doubled to 56% in 2010

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Roundtable on Sustainable Palm Oil

Volume of CSPO produced

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The Future

Roundtable on Sustainable Palm Oil

Our wish by end 2015

15 million mt of CSPO is produced annually
All grower member has at least one unit
certified
Significant portion produced by
independent smallholders
Demand for CSPO exceed the production

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RSPO Trademark

Roundtable on Sustainable Palm Oil

For on/aboutproduct
communication

Upstream
(Growers)

Rules for use,

communication &
licensing under
development
Trademark
registration
procedures begun
in more than 60
countries
Expected launch
for use: July 2011

NGOs

Processors/Traders;
Bankers &
Investors

Consumer Goods
Manufacturers

Downstream
(Retailers/
consumers)

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Roundtable on Sustainable Palm Oil

MALAYSIA TO HOST WORLDS LARGEST

SUSTAINABLE PALM OIL MEETING
9th Annual Roundtable Meeting on Sustainable Palm Oil (RT9)
will be held in Kota Kinabalu, Sabah this year.

RSPO
Roundtable on Sustainable Palm Oil

TOGETHER FOR SUSTAINABLE PALM OIL