1. RSPO Roundtable on Sustainable Palm Oil Promoting The Growth And Use Of Sustainable Palm Oil RSPO www.rspo.org

2. RSPO Roundtable on Sustainable Palm Oil Outline What is palm oil? The need for sustainable palm oil The Roundtable on Sustainable Palm Oil (RSPO) Where we are today Where we go from here

3. RSPO Roundtable on Sustainable 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’da Mosto, 15 th century explorer, on discovering palm oil. What is palm oil?

4. RSPO 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 World’s top selling vegetable oil What is palm oil?

5. RSPO Roundtable on Sustainable Palm Oil Palm oil is used in more than half of packaged supermarket products today What is palm oil?

6. RSPO Roundtable on Sustainable Palm Oil What is palm oil? X 1 million tonnes Source: Oil World, MOPB, MPOC World palm oil production has grown rapidly

7. RSPO Roundtable on Sustainable Palm Oil What is palm oil? Source: Oil World, May, 2008

8. RSPO Roundtable on Sustainable Palm Oil What is palm oil? X 1 million hectares Source: Oil World, May, 2008 Palm tree cultivation has expanded significantly

9. RSPO Roundtable on Sustainable Palm Oil What is palm oil? Source: Oil World, May, 2008

10. RSPO Roundtable on Sustainable Palm Oil What is palm oil? Source: Oil World, May, 2008 RSPO Roundtable on Sustainable Palm Oil

11. RSPO Roundtable on Sustainable Palm Oil Oil palms.. are highly efficient producers of oil require less land than other oil crops What is palm oil?

12. RSPO Roundtable on Sustainable Palm Oil What is palm oil? Source: Oil World Average yield per year (tonnes of oil per hectare)

13. RSPO Roundtable on Sustainable Palm Oil More than 1 million workers More than 3 million smallholders Many more household members Why sustainable palm oil? Millions of people are dependent on palm oil

14. RSPO Roundtable on Sustainable Palm Oil Why sustainable palm oil? Land ownership conflicts Worker’s rights and conditions Treatment of smallholders Social issues in oil palm cultivation

15. RSPO Roundtable on Sustainable Palm Oil Why sustainable palm oil? Forest, peatland conversion Climate change Biodiversity loss Environmental issues in oil palm cultivation

16. RSPO Roundtable on Sustainable Palm Oil The Roundtable on Sustainable Palm Oil: Started in 2003, with 7 members Multi-stakeholder group Promotes the growth and use of sustainable oil palm products through global standards Among its principles: Respect for rights of land owners, farm workers, smallholders and their families No primary forests or high conservation value areas sacrificed for new palm oil plantations The Roundtable

17. RSPO Roundtable on Sustainable Palm Oil Today*: 249 RSPO members 67 oil palm growers 96 palm oil processors, traders 5 social, developmental NGOs 13 environmental NGOs 36 consumer goods manufacturers 24 retailers 8 banks and investors The Roundtable * September, 2008

18. RSPO Roundtable on Sustainable Palm Oil Where we are today RSPO’s preparations: 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

19. RSPO Roundtable on Sustainable Palm Oil Code of Conduct: “Every member supports, promotes and works towards the production, procurement and use of sustainable palm oil” Grievance panel supervises compliance Where we are today

20. RSPO Roundtable on Sustainable Palm Oil Sustainability Principles: Transparency Use best practices Care for environment, natural resources, and biodiversity Consider rights of workers, smallholders Develop new plantings responsibly Where we are today

21. RSPO Roundtable on Sustainable Palm Oil 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 Where we are today

22. RSPO Roundtable on Sustainable Palm Oil 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 Where we are today

23. RSPO Roundtable on Sustainable Palm Oil Respecting diversity: national interprations of guidelines Where we are today Papua New Guinea (April, 2008) Malaysia (April, 2008) Indonesia (May, 2008) Colombia / L. America (in progress) See: www.rspo.org

24. RSPO Roundtable on Sustainable Palm Oil Plantation, mill certification procedure Where we are today 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

25. 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: Many links Potential for mixing Smallholders

26. RSPO Roundtable on Sustainable Palm Oil Supply chain certification systems: monitoring ‘Identity preserved’: Sustainable oil kept apart, traceable to plantation ‘Segregation’: Mixing of sustainable palm oil batches is allowed ‘Mass Balance’: Mixing of sustainable and conventional oil allowed, if monitored administratively Designed and managed by Utz Certified, www.utzcertified.org Where we are today

27. RSPO Roundtable on Sustainable Palm Oil Supply chain certification system: ‘Identity Preserved’ Where we are today

28. RSPO Roundtable on Sustainable Palm Oil Supply chain certification system: ‘Segregation’ Where we are today

29. RSPO Roundtable on Sustainable Palm Oil Supply chain certification system: ‘Mass Balance’ Where we are today

30. RSPO Roundtable on Sustainable Palm Oil Supply chain certification system: credit trading ‘Book and Claim’: - No tracking, tracing or monitoring of oil - Growers, end-users trade volume credits online Designed and managed by GreenPalm, www.greenpalm.org Where we are today

31. RSPO Roundtable on Sustainable Palm Oil Supply chain system: ‘Book and Claim’ Where we are today

32. RSPO Roundtable on Sustainable Palm Oil 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 See: www.rspo.org

33. RSPO Roundtable on Sustainable Palm Oil Communication guidelines and claims Specify communication on production, procurement and use of RSPO-certified sustainable palm oil Where we are today Use of RSPO logo Claim details Story-telling on supply chain model On-pack, about-product, corporate communications

34. RSPO Roundtable on Sustainable Palm Oil title - Where we are today Two possible claims in communication, marketing: “... contains [only/.. %] RSPO-certified sustainable palm oil” - Used with ‘Identity Preserved’, ‘Segregation’ systems “... supports the production of RSPO-certified sustainable palm oil (equivalent to.. % of the palm oil utilized)” - Used with ‘Mass Balance’, ‘Book and Claim’ systems

35. 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

36. RSPO Roundtable on Sustainable Palm Oil 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’

37. RSPO Roundtable on Sustainable Palm Oil By end of 2008: ± 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 Where we are today

38. RSPO Roundtable on Sustainable Palm Oil Where we are today DOWNLOAD CENTER ‘Key documents’ at www.rspo.org: Statutes Principles & Criteria Criteria: National Interpretations Code of Conduct Certification Systems Guidelines on Communication & Claims

39. 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 Where we go from here

40. 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 Where we go from here

41. RSPO Roundtable on Sustainable Palm Oil Where we go from here By end of 2009: Capacity to supply 3 million tonnes per year (± 8% of production) Ultimately, RSPO aims to see all the world’s palm oil produced in a sustainable way

42. RSPO Roundtable on Sustainable Palm Oil Thank You! RSPO Secretariat Kuala Lumpur, Malaysia WWW.RSPO.ORG Telephone : +60 3 6203 5969 Email : rspo@rspo.org