IMPACT UPDATE - RSPO · PDF file02 RSPO IMPACT UPDATE 2017 CONTENTS 03 About RSPO Annual...

IMPACT UPDATE 2017

IMPACT UPDATE2017

02 RSPO IMPACT UPDATE 2017

CONTENTS

03 About RSPO Annual Impact Updates

RSPO IN BRIEF

03RSPO IN 2017

04

32 Background33 Review Process Overview36 P&C Review Task Force37 RSPOCertificationSystems:

EnhancingQuality,Credibility and Oversight

RSPO PRINCIPLES & CRITERIA REVIEW

30

06 Membership08 CertificationProgress11 SmallholderCertificationand

Inclusion14 NewPlantingProcedureUpdate14 RemediationandCompensation

Procedure16 GHGEmissionsReportingand

Projection:PalmGHGCalculatorand New Development GHG Calculator

18 Complaints Procedure21 Market Outreach28 SEnSOR Programme

Cover photos credit: New Britain Palm Oil Limited & RSPO/Jonathan Perugia

Photo credit: New Britain Palm Oil Limited

Photo credit: RSPO & Jonathan PerugiaPhoto credit: RSPO & Jonathan PerugiaPhoto credit: RSPO & Jonathan Perugia

03RSPO IMPACT UPDATE 2017

RSPO IN BRIEF

The Roundtable on Sustainable Palm Oil (RSPO) is a multi-stakeholder not-for-profit organisation that works to advance the production and use of sustainable oil palm products. We develop and implement global standards for sustainable palm oil through open dialogue and cooperation with every stakeholder in the supply chain. RSPO members represent the seven key sectors of the industry: oil palm growers, palm oil processors and traders, consumer goods manufacturers,retailers, banks and investors, environmental or nature conservation NGOs and social or development NGOs.

About RSPO Annual Impact Updates

TheRSPOpublishesafullImpactReporteverytwoyears.WehavealsoissuedannualImpactUpdatessince2015toensurethatallstakeholdersstayinformedonayearlybasis.ThisImpactUpdatecoversourprogressandactivitiesfrom 1July2016to30June2017,andincludesadedicatedsectionontheRSPOPrinciples&CriteriaReviewinitiatedduringthisperiod.AsthisImpactUpdatebuildsonandmakesreferencetotheRSPO2016ImpactReport,whichcontainsamoreextensiveoverviewofourlatestactivitiesandinitiatives,itisrecommendedtoreadbothinconjunction.AllRSPOkeydocuments,includingImpactReports,can be accessed at www.rspo.org/key-documents.

ThenextfullRSPOImpactReportisscheduledforpublicationinQ4of2018.

Our vision is to transform markets to make sustainable palm oil the norm

40 Base Data and Notes 43 Glossary45 References47 Contact the RSPO

BASE DATA, GLOSSARY & REFERENCES

38

Photo credit: RSPO & Jonathan Perugia


04 RSPO IMPACT UPDATE 2017Photo credit: RSPO & Jonathan Perugia

RSPO IN 201706 Membership08 Certification Progress11 Smallholder Certification and Inclusion14 New Planting Procedure Update14 Remediation and Compensation Procedure16 GHG Emissions Reporting and Projection:PalmGHGCalculator and New Development GHG Calculator18 Complaints Procedure21 Market Outreach28 SEnSOR Programme

05RSPO IMPACT UPDATE 2017Photo credit: RSPO & Jonathan Perugia


Asat30June2017,theRSPOhasatotalof3,422membersacross89countries-a16%increasesincethecloseofthelastreportingperiod(30June2016).Membershipinpalmoilbuyingsectorsandmarketshascontinuedtogrowsteadily,withacombined increase of 14% in consumer goods manufacturers and palm oil traders and processors,whichtogethermakeup81%ofourordinarymembership.

MEMBERSHIP

3,422 members in 89 countries,

481 more (+16%)than in 2016

45% are ordinary members and

55% areaffiliateorsupplychainassociate members

10% increase in grower membership (withinordinarymembership) sincethepreviousreporting

period in 2016

170of the 1,551 ordinary members are growers

TheUnitedKingdomandGermanycontinuetohavethelargestRSPOmemberships,but,witha62%increaseinthisreportingperiod,theUnitedStatesiscatchingupfast.Approximately88%ofthesenewmembersareSupplyChainAssociatesorConsumerGoodsManufacturers.FactorscontributingtothisgrowthincludetheJuly2016appointmentofaUnitedStates-basedRSPOrepresentativetosupportbothexistingandprospectiveRSPOmembers,aswellasanumberofdriversthatarepushingtheimplementationofcorporatesustainablesourcingpolicies(Seepage26formoreinformation).

Meanwhile,globalgrowermembershiphasincreased10%to170,outofatotalof1,551ordinarymembers.WhilethemajorityoftheseproducersarelocatedinAsia,LatinAmericaremainsthemostdiversifiedregionintermsofcountrieswithgrowermembers.



MEMBERSHIP

Ordinary Membership (1,551asat30June2017)

Top Ten Countries of RSPO Membership (Totalmembership:3,422asat30June2017)

412 403 324 212 179 146 137 131 124 115 1,239

IndonesiaOther

Australi

a

Germany

Belgium

Malaysia

Netherlands

France

United St

ates

United

Kingdom Ita

ly

Ordinarymembership

1,551 as at30 June 2017

SocialorDevelopmentOrganisations(Non-GovernmentalOrganisations),12

Retailers,64

EnvironmentalorNatureConservationOrganisations(Non-GovernmentalOrganisations),39

ConsumerGoodsManufacturers,728

Banks&Investors,14

PalmOilProcessorsand/orTraders,524

OilPalmGrowers,170


CERTIFICATIONPROGRESS

Asat30June2017,plantationscoveringatotalof3.2millionhectaresacross16countriesareRSPOcertified,an increase of 14% since the last reportingperiod

Note to data: All figures are inclusive of certified area for smallholders certified under group certification.

TotalCertifiedAreaasat30June2016TotalCertifiedAreaasat30June2017

Certified Area by Region(Total:3,236,429haasat30June2017)

Overview of Global Certified Palm Oil

Asat30June2017,plantationscoveringatotalof3.2millionhectaresacross16countriesareRSPOcertified,anincreaseof14%sincethelastreportingperiod.TheRSPOwelcomesthispositiveturnfollowing the reported 14% decrease inglobalcertifiedareanotedinthe2016ImpactReport,whichwaslargely

attributedtothetemporarysuspensionandself-withdrawalfromcertificationoftwolargeMalaysianproducers.Inthiscontext,weareespeciallypleasedtohighlightthatcertifiedareainMalaysiahasalsomadeasignificantrebound,increasing25%since30June2016.

IndonesiaandMalaysiastilltopthelistofcountriesfortotalcertifiedhectarage,butprogresshasbeenmade

inmanyregions.LatinAmericasawan11%expansionincertifiedarea,whilecertifiedareainAfricagrewby22,773hectares-arelativelysmallamountcomparedtootherregions,buta70%growthinlocalterms.GabonandEcuador also joined the list of countries withcertifiedsustainablepalmoilproduction.

1,547,2411,719,606

32,38355,156

235,956230,361

258,180285,687

Indonesia AfricaRest of Asia-Pacific

Latin AmericaMalaysia

756,595945,619


Atotalof189,777hectaresofHighConservationValue(HCV)areahasbeenidentifiedandiscurrentlymanagedbyRSPOmembers,anincreaseof21%sincethelastreportingperiod.Somenoteworthytrendsareemergingataregionallevel,includinginAfricawhereidentifiedHCVareaincreasedby4,323%(13,405hectares).SignificantgainshavealsobeenmadeintheAsia-Pacificregion,witha152%(8,399hectares)increaseinMalaysia,anda228%(5,864hectares)increaseacrosstherestoftheregion(notincludingIndonesia).

RSPO NEXT

RSPONEXTreachedasignificantmilestoneinApril2017whenDAABONGroupbecamethefirstoilpalm grower in the world to achieve full RSPO NEXT certification.TheColombia-basedagribusinessunderwentasix-dayauditduringwhichtheirfourpalm oil estates in northern Colombia were reviewed forcompliancewithRSPONEXTrequirements.Thecertificationalsocovers122smallholdersthatsupplytotheGroup’smill.TheGroup’soilpalmplantations,whichcoverapproximately9,950hectares,havebeencertifiedagainsttheRSPOP&Csince2010.

RSPONEXTisavoluntaryinitiativethatallowsproducers to be recognised for their leadership in implementingbestpracticesunderkeyenvironmentalandsocialcategories.Itrequirescompliancetoasupplementarysetofcriteria,buildingontheexistingRSPOPrinciples&Criteria(P&C)evaluation,including:

No Deforestation, No Fire, No Planting on Peat, Reduction of GHGs, Respect for Human Rights and Transparency.Theseareapplicableorganisation-wide,includinginvestmentsandjointventures,aswellasintheorganisation’swidersupplybase.

TheRSPOwelcomesDAABONGroup’sachievement.ItdemonstratesthegreatmomentumachievedbyRSPOmembersinLatinAmerica,wherethereiscontinuedgrowthintheproductionofcertifiedsustainablepalmoil(CSPO).TheRSPOwillcontinuepromotingandsupportingtheadoptionofRSPONEXTamongretailers,manufacturersandotherdownstreamplayers,andbuildingawarenessabouttheinitiativeingrowerandotherstakeholdergroups.

The RSPO NEXT requirements can be accessed at www.rspo.org/certification/rspo-next.

Regional Outreach

Latest Activities and Developmentsin Latin America

TheRSPOcontinuesworkingtosupportthe growing number of producer memberswithinandoutsideofAsia.MuchofoureffortinthelastfewyearshasfocusedonLatinAmerica,thesecondlargest palm oil producing region in the world.Asat30June2017,thereare33 RSPO grower members across nine countriesintheregion,and24millsarecertifiedacrosssixofthesecountries.

InAugust2016,wehostedthesixthRSPOLatinAmericanConference,whichwasheldinGuatemalainconjunctionwiththe Guatemalan Palm Growers' Guild (Grepalma)C//PALConference.Theeventbroughttogetherseveralkeystakeholdersthat are seeking to secure a sustainable palmcultureinLatinAmericathroughresponsibleagricultural,socialandenvironmentalpractices.

Akeydevelopmentthattookplaceduringthe conference was the Ecuadorian nationalgovernment'sofficialsubmissionofinteresttopilotajurisdictionalapproachtoRSPOcertificationwithin

selectedareasoftheEcuadorianAmazon.The Ecuadorian government established coalitionswithpalmoilcompaniesandnon-profitorganisationstosupporttheprogramme.TheRSPOwasengagedtohelpfacilitateactivitiesandprovidetechnicalassistancewhereneeded.

Tosustainthemomentum,theRSPOandWWFco-hostedaworkshopinQuitoinMarch2017,wheregrowers,NGOsandgovernmentrepresentativessignedacommitmenttocontinuetheprocessofRSPOjurisdictionalcertification.Asteeringcommitteewasformallyestablished in June 2017 to lead this process.



The programme in Ecuador is unique intermsofitssynergywithexistinginitiatives.TheMinistryofAgricultureand Environment has granted access tomapsthatidentifyareassuitableforpalmoilproduction,andapartnershipwiththeUnitedNationsProgrammeonReducingEmissionsfromDeforestationandForestDegradation(UN-REDD)isfocusing on developing strategies to produce sustainable palm oil with zero deforestation.Workshopsarealsobeingheldtointroducesustainabilityasaconcept to Ecuadorian smallholders and tohelpbuildtheircapacity.

TheRSPOstronglycommendsandsupportsthisinitiativebytheEcuadoriangovernment.ItcarriesmanypotentialbenefitsforEcuadorandisaninspirationforothercountriestopickupthebaton.Wearedevelopingourcertificationsystemtoaccommodatethejurisdictionalapproachandwecontinueto support and learn from various RSPO jurisdictionalcertificationinitiativesandpilots,includingprogrammesinSabah(EastMalaysia)andCentralKalimantan(Indonesia).

The RSPO Outreach Programme

In2015,theGovernmentofSabahcalledfor all palm oil stakeholders in Sabah to produce100%CSPOby2025.Thisledtooneoftheworld’sfirstjurisdictionalcommitments to sustainable palm oil production.Incontinuedsupportofthiscommitment,theRSPOhostedanevent in Sandakan in October 2016 as partoftheRSPOOutreachProgramme,which seeks to raise awareness about sustainablepalmoilproduction.Theeventcreatedaplatformfornearly100palm oil sector stakeholders to discuss and encourage further commitments to CSPO.


SimilarprogrammestookplaceinGuatemala(August2016),Ghana(September2016),andIndonesia.TheeventinGhana,heldattheAfricanSustainablePalmOilConference,wasespeciallynoteworthygiventhegrowthofinvestmentinAfrica'spalmoilsector.TheexistenceoftheRSPOpresentsanopportunityforAfrica'spalmoilindustrytogetstartedonasustainablefooting.Inthiscontext,theAccraconferencewasagreatsuccess,gathering300participantsfromdifferentAfricannationstodiscusskeytopics,includinghowbusinessescanadoptbestsustainabilitypractices,andhowsmallholderscanbeempoweredthroughknowledgeandaccesstoglobalpalmoilsupplychains.

The Outreach Programme in Indonesia has taken on the form of a series of RSPO Roadshowsorganisedinsixproducingprovinces:Jambi,Riau,EastKalimantan,SouthSumatra,CentralKalimantan,andNorthSumatra.Nearly1,200participantsattended,comprisingofoilpalmgrowers,palmoilprocessorsandtraders,localcommunityandcivilsocietyorganisations,governmentrepresentatives,academicsandmedia.TheobjectiveoftheprogrammewastoactasaforumforthelatestinformationonthedevelopmentsanddynamicsofthepalmoilindustryinIndonesia,andtostrengthenstakeholderunderstandingofsustainablepalmoildevelopmentintheregion.

Engagement with Local Communities and Intermediary Organisations

TheRSPObelievesthatcommunities,localNGOs,andotherintermediaryorganisations(IMOs)areimportantstakeholders,andweseekavenuestoinformandimprovecapacityofthesepartiestoensuretheirexpertise,concerns,andneedsarefullytakenintoaccount.

Attheendof2016,wepartneredwiththeInstituteforPolicyResearchandAdvocacy(ELSAM)tosetupacommunityandCivilSocietyOrganisations(CSO)EngagementProgrammeinIndonesia.TheprogrammeaimstosecureinformedandinteractiveengagementwithcommunitiesthroughIMOs(e.g.tradeunions,women’sgroups,religiousorganisations),andhasbeenimplemented in several areas including Sumatra,Kalimantan,SulawesiandPapua.Incorporatedintheactivitiesisacapacitybuildingprogrammeinvolvingrepresentativesoflocalcommunities,labourers,farmers,women’sgroupsandCSOsthroughoutthecountry.

In March 2017, growers, NGOs and government representatives in Ecuador signed a commitment to continue the process of RSPO jurisdictional certification for selected areas of the Ecuadorian Amazon.


SMALLHOLDER CERTIFICATIONAND INCLUSION

As at 30 June 2012

As at 30 June 2013

As at 30 June 2014

As at 30 June 2015

As at 30 June 2016

As at 30 June 2017

Number of Independent SmallholdersUnder Group Certification(2012-2017)

Indonesia

349 658 658 810 5010

1,336423423 1,0011,151423

ThailandMalaysia

350108 700142720

Ten independent smallholder groups arecertifiedintotal,representing2,202independentsmallholdersacrossThailand,MalaysiaandIndonesia.

Overall,therehasbeena12%decreaseinthenumberofcertifiedindependentsmallholderssincethelastreportingperiod,andmorespecifically,a38%and25%decreaseincertifiedindependentsmallholders in Indonesia and Thailand respectively.Thisdecreaseisexplainedbythelicenceexpiryofsevenindependentsmallholder groups in Indonesia and Thailandduringthereportingperiod.

Morepositively,thenumberofcertifiedindependentsmallholdersinMalaysiahasdoubled.Furthermore,bycombining

figuresforschemeandindependentsmallholders,weseethatthetotalnumberofRSPOcertifiedsmallholderscontinuestogrow(seebelow).

Total RSPO Smallholders (Asat30June2017)

2016 2017

139,123109,415

Number of RSPO smallholders(schemedandindependent)

333,345 ha257,649 ha

Total smallholders’ RSPO certified area (schemedandindependent)

Growth in SmallholderCertifications 2017

Bymid-2016,smallholderswereproducing40%oftheworld’spalmoil.SupportingthesefarmerstotransitiontomoresustainablepracticesisthereforeapriorityfortheRSPO,asweseektomakesustainablepalmoilthenorm.OurworkwithsmallholdershasprimarilyfocusedonfacilitatingRSPOcertification.Whenitisaccessibleandworkableforsmallholders,certificationhasthepotentialtoincreaseproductivity,incomeandaccesstonewmarkets.

Thetotalcertifiedareaforindependentsmallholdersundergroupcertificationasat30June2017is11,594hectares.

The total certified area for independent smallholders under group certification is 11,594 hectares as at 30 June 2017. The number of certified independent smallholders in Malaysia has doubled.


CERTIFICATION PROGRESS

1 Including STM’s figures for 2017, we would see a near opposite trend—an estimated 97% growth in total number of certified independent smallholders between the 2016 and 2017 reporting periods. Total smallholders' RSPO certified area would amount to approximately 338,711 hectares.

InAugust2016,weannouncedthattheindependentsmallholdergroup,SaptaTunggalMandiri(STM),hadachievedRSPOcertification.STMconsistsofmorethan2,700independentsmallholdersandcovers5,366hectaresinSouthSumatraProvince,Indonesia,makingittheworld’slargestgroupofcertifiedindependentsmallholders.However,their data is not included for either 2016 or2017duetolicenceactivationandexpirydatesfallingjustoutsideofthedataextractiondatesusedforreporting.1

STM'scertification,whichreceivedsupportfromWilmarInternationalLimited’ssubsidiaryPTTaniaSelatanandfinancialassistancefromtheRSPOSmallholderSupportFund(RSSF),representsamilestoneachievement.It demonstrates the impact that can be achieved through the commitment of RSPO members and the success of RSPOstructures(suchastheRSSF)insupportingsmallproducers.

The RSPO is also funding one of the largestcertificationprogrammesevertobeconductedonbehalfofsmallholders.Thankstothisfunding,SolidaridadWestAfrica-Côted’Ivoirewillbeimplementingagroupcertificationprojectfor5,000Ivorian smallholders in Africa’s third largestpalmoilproducingcountry,withinthenextthreeyears.Thekick-offworkshopwasheldinAbidjaninDecember2016.

RSPO Smallholder Strategy Update

Despite the progress made over the reportingperiod,certificationremainschallengingformanysmallholders.Theyoftenworkincommunityclusterswithlimitedaccesstoexpertise,trainingandinfrastructure-allkeyfootholdsfor engaging in responsible agricultural practices.TheRSPOhasalreadyestablished several structures including workinggroups,funds,andapproaches

toaddresstheseissues(seeRSPOImpactReport2016,pages41-44).Ourworkandexperiencescontinuetohighlightareaswherefurtherstrategiceffortsareneeded.

Recognising a need for a change in currentpracticesandapproachestoimprovesmallholderinclusivityintheRSPOsystem,webegancollectingstakeholder feedback in 2016 to inform our development of a comprehensive smallholderstrategy.Thedocument,nowinitscompleteform,wasapprovedbytheRSPOBoardofGovernorsinJune2017.


H. Narno, Group Manager of Asosiasi Petani Sawit Swadaya AMANAH together with his wife, Ibu Wanti. Asosiasi Petani Sawit Swadaya AMANAH was the first independent smallholder group to be RSPO certified in Indonesia. Narno has been leading the group since its inception, and is also an inspirational figure in the work being carried out to promote sustainable palm oil among smallholders in Indonesia.

The RSPO Smallholder Strategy was finalised during the reporting period with the aim to create a supportive environment for smallholders to achieve sustainable livelihoods.


CERTIFICATION PROGRESS

Underpinnedbythebroadphilosophyofsmallholderinclusivity,theaimoftheRSPOSmallholderStrategyistocreateasupportiveenvironmentforsmallholderstoachievesustainablelivelihoods.ItcontainsGuidingPrinciplestodirectimplementation,highlightsstrategyfundamentals,andsupportsdecision-making.Itpresentsintermediateoutcomes,outputsandassumptions,andincludesanimplementationplan.Theobjectives,GuidingPrinciples,andnextstepsforthestrategyimplementationareoutlinedbelow.


TheRSPONewPlantingProcedure(NPP)providesguidanceonhowandunderwhatconditionsnewoilpalmplantingsdevelopedafter1January2010shouldbecarriedout.TheNPPwasfirstintroducedin2009andwassubsequentlyupdatedin2015.TheupdatedversioncameintoeffectinJanuary2016withasixmonthgraceperiodbeforebecomingcompulsoryinJuly2016(SeeRSPOImpactReport2016,pages36-37).

TheRSPONPPisacredibleandquality-drivenprocess.EachNPPsubmittedmustundergoverificationbyanaccreditedcertificationbodybeforeanotificationispostedontheRSPOwebsitefora30-daypublicconsultation.Inaddition,HCVassessmentsmustbeconductedbyaHighConservationValueResourceNetwork(HCVRN)licensedassessor.

NPP Highlights

2 The final draft of the RSPO RaCP, endorsed by the BoG in November 2015, can be downloaded at www.rspo.org/news-and-events/announcements/update-on-the-endorsement-of-the-rspo-remediation-and-compensation-procedures-racp.

3 This is optional. Members not wishing to submit their revised SOP to the RSPO must submit a declaration of SOP verification by an accredited certification body at the time of the liability disclosure.

1,486,873 hectares across 13 countries were subject to NPPs asat30June2017.

13 NPP notifications were approved covering 100,364 hectaresinIndonesia,PapuaNewGuinea,Mexico,Malaysia,Gabon,Guatemala,NigeriaandTogo.

Mexico and Togo joined the list of countries that have appliedforNPP,addinga combined area of 5,163 hectares.

Under the 13 notificationsapprovedduringthereportingperiod,41,013 hectares areproposedforHCV,bringingthetotalHCVarea under the NPP to 265,153 hectares(asat30June2017).

REMEDIATION ANDCOMPENSATION PROCEDURETheRemediationandCompensationProcedure(RaCP)waslaunchedin2014,toaddresslandclearancesundertakenwithoutpriorHCVassessmentssinceNovember2005.2 TheprocedurerequiresgrowerstocalculateenvironmentalliabilitiesthroughaLandUseChangeAnalysis(LUCA),andtocarryoutonsiteoroffsiteremediationonaffectedsitesorparties(SeeRSPOImpactReport2016,page39).Compensationliabilitiesaredeterminedusingamatrixcombiningvegetationcoefficients,landclearanceperiods,membershipstatus,andareasrequiringenvironmentalremediation.TheFinalConservationLiability(FCL)isexpressedinhectares.

Asof30June2017,atotalof703,413hectaresofnon-compliantlandclearance(NCLC)hasbeendisclosedby253managementunits,representing100%fulldisclosurefromRSPOmembersthatownormanageplantations.Somegrowershavesubmittedrevisedstandardoperatingprocedures(SOP)totheRSPOforpublicdisclosure,3 to demonstrate theircommitmenttopreventfurthernon-compliantlandclearing.

NEWPLANTINGPROCEDURE UPDATE

A total of 703,413 hectares of non-compliant land clearance has been disclosed by 253 management units, representing 100% full disclosure from RSPO members that own or manage plantations.


4 RaCP data, including NCLC and FCL figures, will be included in future RSPO Impact Reports and Impact Updates.

NCLC AND FCL DATA BY COUNTRY (AS AT 30 JUNE 2017)Country NCLC (Ha)* FCL (Ha)**

Indonesia 581,924 55,628

Malaysia 61,414 9,048

Colombia 21,386 2,015

Brazil 51 39

Guatemala 14,991 406

Honduras 8,703 183

Ecuador 7,417 592

Nigeria 2,048 88

Ghana 2,432 168

Côted’Ivoire 1,887 0

Dominican Republic 773 3

Costa Rica 387 3

Total 703,413 68,174

NCLC AND FCL DATA BY REGION (AS AT 30 JUNE 2017)Regions NCLC (Ha)* FCL (Ha)**

LatinAmerica 53,708 3,242

Africa 6,367 256

Southeast Asia 643,338 64,676

* NCLC: Non-compliant land clearance or land clearance without prior HCV assessment since November 2005** FCL: Final Conservation Liability

Todate,29%oftheLUCAreportssubmittedhavebeenreviewed.TheaggregatedFCLofthedisclosedNCLCis68,174hectares. ThefollowingtablespresentthedisaggregatedNCLCandFCLdatabycountryandbyregion.4ItisworthnotingthatFCLisabout10%oftheNCLCtotal.Thisisbecausemostoftheclearedareaswereopendevelopedand/ordegradedgrassorshrublands.

Atthetimeofreporting,severalRSPOmembersarepreparingremediationandcompensationplanshavinghadtheirconceptnotesapprovedbythecompensationpanel.

REMEDIATION ANDCOMPENSATION PROCEDURE


The RSPO PalmGHG Calculator was developedbytheGreenhouseGasWorkingGroup2(GHGWG2),andlaterimprovedbytheEmissionReductionWorkingGroup(ERWG),andtheNewDevelopmentGHGCalculatorbytheERWG.Thesetoolswerecreatedforpalmoilproducerstoestimateandprojectthenet GHG emissions of current and planned productionactivities.Theimprovedversions of these tools were released at the end of 2016 for RSPO members to use to ensure their compliance with theRSPOP&Crelatedtoidentifying,monitoring,minimisingandreportingGHGemissionsinexistingoperationsandnewdevelopments(SeeRSPOP&C2013:5.6and7.8).

Recognising the challenges of accurate measurementandmonitoring,given pre-existingknowledgeandmethodologies,theRSPOsetouta two-yearimplementationperiodinwhichgrowers and millers were required to committopromotingbestpracticesinreportingtotheRSPO,andafter 31December2016,topublicreportingagainsttherelevantcriteria.Itwasduringthisimplementationperiodthat the PalmGHG Calculator and New Development GHG Calculator were updatedandrefinedbasedonuserfeedback.

AsofJanuary2017,theRSPOPalmGHGCalculator and New Development GHG Calculatorarerequiredforcalculating

andprojectingGHGemissionsfromoperations,includinglandusechangeGHGemissionsofexistingoperationsandnewdevelopments.GHGemissionsmustbepubliclyreportedthroughannualauditsummaryreportsandtheNewPlantingProcedurenotifications,whicharepublishedontheRSPOwebsite.Followingthisdevelopment,PalmGHGemissionsdata will be reported in all RSPO Impact ReportsandUpdates.

The chart below presents mean net GHG emissionsfor2016(calendaryear)forcurrentoperations,basedonPalmGHGCalculatordatasubmittedbyRSPOmembers.Netemissionsaremeasuredin tonnes of carbon dioxide equivalents (tCO2e)perhectare,pertonneofCrudePalmOil(CPO)produced.

Mean Net GHG Emissions from Current Operations Compiled from PalmGHG Data Submitted by RSPO Members (1 January - 31 December 2016)

Mean Net GHG emissions 2016MeanNetGHGemissions:2.52tCO2e/tCPO(N=322)

Standarddeviation:4.82tCO2e/tCPO

50.00

30.00

10.00

40.00

20.00

00.00

-10.00

0 50 100 150 200 250 300 350

NetGHG

emiss

ions(tCO

2e/tCP

O)

GHG EMISSIONS REPORTING AND PROJECTION:PALMGHGCALCULATORANDNEWDEVELOPMENTGHGCALCULATOR

# of submissions


BasedonthedatasubmittedbyRSPOmembers,thetopthreesourcesofGHGemissionsare:

1.Landclearing(dependingonlandcoverpriortoclearing).2.MethaneproducedfromPalmOilMillEffluent(POME).3.Carbondioxideandnitrousoxidegeneratedbythe cultivationofpeatsoils.

New Study: Calculating GHG Emissions from Oil Palm Using PalmGHG

A2016study5 published in The Planter(2016)reviewedGHGemissionscalculationsforoilpalmcultivationusingtheRSPOPalmGHGtool6 and presentedfindingsonthecumulativeimpactoftheseemissions.Thereviewfocusedonemissionsgeneratedbythedevelopmentofnewplantings,aswellasthosegeneratedacrosstheentirepalmoilproductionprocess.

Three scenarios were developed to test the PalmGHG calculator,eachwithtwovariations-withmethanecaptureandwithoutmethanecapture:• Thefirstscenarioassumednopeatintheconcession,andthereforenodevelopmentonpeat,andnoset-asideareas.

• The second scenario assumed the concession is entirelypeatland,andthus100%plantingonpeat,andnoset-asideareas.

• The third scenario assumed no peat in the concessionandzeroplantingonpeat.Italsoassumedanextra2,000hectaresofconservationareaset-asidewithintheconcession.

Keyresults:• Plantingonpeat,landconversionandPOME

are major sources of GHG emissions in oil palm developmentandproduction,ofwhichpeatisthelargest(Gan&Cai2017).

• Planting100%ofaconcessiononpeatleadstoamassiveriseinGHGemissions,regardlessofwhethermethanecapturefacilitiesareinplace.Constructionofmethanecapturefacilitiescan,however,significantlyreduceemissionsfromPOME(Gan&Cai2017).

• Land conversion is the second largest source of GHGemissions,butemissionlevelsdependonthetypeoflandcoverconverted.Convertinglandcoverwith a higher carbon value will lead to higher GHG emissionsthanconvertinglandcoverwithalowercarbonvalue(Gan&Cai2017).

TheresultsindicatethatthecalculationofGHGemissions,includingforlandusechange,ishelpfulforidentifyingmajoremissionssources.TheNewDevelopmentGHGCalculator,applyingthesimilarGHGestimationapproach,canassistcompaniesinmaking decisions about where new developments cantakeplaceinaccordancewiththeirprioritiesandrisktolerancelevel.ProgrammesformitigatingGHGemissionsfromnewplantingscanalsobeimplementedtominimisetheiroverallimpact,andshouldbeincorporatedinlanduseplanning.

GHG EMISSIONS REPORTING AND PROJECTION:PALMGHGCALCULATORAND

NEWDEVELOPMENTGHGCALCULATOR

5 Calculating GHG Emission in Oil Palm Using PalmGHG by Gan Lian Tiong and Henry Cai was released in 2016, and re-written and published again in 2017 in The Planter. 6 PalmGHG Calculator version 2.1.1, but modified with some default values from a simplified PalmGHG for criterion 7.8 of the 2013 RSPO P&C.

As of January 2017, the RSPO PalmGHG Calculator and New Development GHG Calculator are required for calculating and projecting GHG emissions from operations.


COMPLAINTSPROCEDURE

Complaints in 2017

All RSPO members are required to adhere to the commitments set out in the RSPO KeyDocuments,includingtheRSPOStatutes,RSPOCodeofConductandtheRSPOP&C.Wecontinuallyevolveourapproachtofacilitatingsolutionstocomplaintssubmittedonanybreachesofthesecommitments.Inthissection,we present data on complaints received asatJune2017,aswellasupdatesonthe revamped complaints and appeals procedureendorsedon14June2017.

Asat30June2017,27complaintswererecorded as either under review or pendinganactionplan.Ofthe83caseshandledbytheComplaintsPanelsince2009(2009-2016dataarebasedoncalendaryear),44haveeitherbeenclosedorareclosedformonitoring.Eightnewcaseshavebeenrecordedinthefirsthalfof2017.

The RSPO Impact Report 2016 noted that theaveragetimetocloseacomplainthadfallenfrom685daysin2015(basedonfullcalendaryeardata)to312days(based

ondatafromthefirsthalfof2016).Updatedforthefullcalendaryear2016,thisaverageincreasedtojust363days,andhasdroppedfurtherto73daysinthefirsthalfof2017.

Bycountry,Indonesiahasthehighestnumber of complaint submissions (48cases),followedbyMalaysia(14cases).Asinpreviousyears,mostofthesubmittedcomplaintsarerelatedtoFree,PriorandInformedConsent(FPIC)andHighConservationValue(HCV)issues.

11 1114 123 3 2448 2

Russia

Costa Rica Peru

Cameroon

Malaysia

Brazil

United St

ates

France

Papua N

ew

Guinea

Colombia

Liberia

Indonesia

Australi

a

Complaints by Country(Asat30June2017)

Complaints Received Complaints Closed/Closed for Monitoring

Complaints Received and Complaints Closed(2009-2017)

Note to data: Figures for 2009 - 2016 are representative of full calendar years (1 January - 31 December). Figures for 2017 are inclusive up to 30 June 2016.

1 5

2010

1 4

2011

7 15

2012

18 13

2013

10 2

2014

1113

2015

610

20162009

0 3

2017

8 0


COMPLAINTSPROCEDURE

Complaints by Type (Asat30June2017)

RSPO Complaints and Appeals Procedure

Free,PriorandInformedConsent,36

Humanrightsviolation,6

NewPlantingProcedurenon-compliances,3

Others(burning,plasma,pollution),13

HighConservationValuesrelatedissues,16

BreachofRSPOCodeofConduct,6

Credibilityofcertificationbody,3


Over half of the 83 cases handled by the Complaints Panel since 2009 have either been closed or are closed for monitoring. Average time to close a complaint fell from 685 days in 2015 to 363 days in 2016.

TheadoptionofResolution6fon“GuaranteeingFairness,TransparencyandImpartialityintheRSPOComplaintsSystem”bytheGeneralAssemblyinNovember2013,ledtothereviewoftheRSPOComplaintsProceduresbyNaturalJusticeandtheBorneoConservancyInitiative.Followingthreepublicconsultations,theRSPOComplaintsandAppealsProcedures(CAP)2017wereendorsedbytheRSPOBoardofGovernorsinJune2017.TheCAPisineffectasof1August2017forallnewcomplaintssubmittedafterthisdate.

TherevisedCAPaimstopromoteandeffecttheconstructiveresolutionofcomplaintsanddisputesbyensuringthatanyalleged breach of the standards and procedures set out in the RSPOKeyDocumentsishandledandresolvedinafair,impartialandtransparentmanner.


COMPLAINTSPROCEDURE

WHAT IS NEW?

Timeline • Ensurescoherenceandadherencetotimeline.

Initial diagnosis

• Secretariatdeterminesifthecomplaint(s)isagainstamember.

• Determinediftheallegationsoffactmadeinthecomplaint(s),ifproventobetrue,willconstituteabreachofanyoftheprovisionsoftheRSPOKeyDocuments.

Urgent action and interim measures

• Powerstoissuetemporaryinstructiontoaddressanurgentissueraisedinacomplaint,includingaceaseanddesistorder(wherestrictlyapplicable)ora‘stopwork’order.

Appeals Procedures

• Inclusion of an independent appeals mechanism (IAM)mandatedtodeliberateanddeliverfinalappealsdecisions.

Strengthened powers of Complaints Panel

• Powerstosuspendandterminatemembers.• Powerstoissueinterimorprecautionaryorders.• TheComplaintsPanelhasthediscretiontowaive

anonymityandengagedirectlywiththepartiestothecomplaintsviaprivatehearings,onsiteinvestigations,interviews,conferencecalls,etc.

Separation of powers

• Strictseparationofexecutivepowersinhandlingcomplaints to ensure independence of the Complaints Panel,inadherencetotheUnitedNationsGuidingPrinciplesonBusinessandHumanRights.

Relationship with DSF and CB/AB

• ClarityintermsofengagementandrelationshipwithDisputeSettlementFacility(DSF),certificationbody(CB)andaccreditationbody(AB)whencasesaretransferredtotherelatedentity.

Protection of human rights, defenders and whistleblowers

• Powerstowarn,suspend,terminateortakeurgentactionandissueinterimmeasuresagainstamemberiftheyarefoundtohaveengagedinanyformofretaliation,reprisal,violence,threats,adversediscriminationagainst,orappliedunduepressureupon,thecomplainant,affectedcommunitiesortheirspokespersonsorwhistleblowers.

Complaints and Appeals Procedure


MARKETOUTREACH

7 For example, the UK government released its final progress report on the October 2012 commitment to achieve 100% sourcing of CSPO by representatives of key industries working with palm oil in the UK. The report showed that 89% of CSPO sales within a group of leading UK retailers consisted of physical CSPO, and that B&C certificates were mainly used where difficulties remained in sourcing Mass Balance or Segregated CSPO in certain derivatives. The report can be accessed at www.gov.uk/government/publications/uk-statement-on-sustainable-palm-oil-final-progress-report

CSPOSalesthroughIP,SG,MBCSPO Sales through B&C

Annual Sales of CSPO (MT)(2008-2016)

Note to data: All figures are based on full calendar year data (1 January - 31 December).

2010

842,619

438,515

2011

1,659,516

831,010

2012

2,495,277

984,138

2013

2,962,256

1,551,017

2014

2,917,408

2,432,258

2015

3,426,790

2,755,904

2016

3,674,550

1,958,181

2009

98,044

245,813

2008

0 4,452

Annual Progress on CSPO Sales

2016 marked a significant turning pointinmarketuptake.Physicalsales of CSPO increased 33% between2015and2016(basedoncalendaryeardata),whilesalesforvolumescoveredbytheBookandClaim(B&C)supplychainmodeldecreasedbyadramatic43%.Thissignificantrebalancingmaypartlybeexplainedbyageneralshiftinkeymarkets where larger companies are increasinglysourcingphysicalCSPO.7

WhiletotalCSPOsalesfellby9% to5.6millionMTbetween December2015andDecember2016, looking at the change in overall sales in the first half of 2016 (2,858,255MT)andforthesametimeframein2017(2,995,626MT),weseea5%increase.Thisisanindicationthatdipmayhavebeenpartofatemporarytrend,andthatthe uptake of CSPO could continue toincrease,especiallyconsideringthevariousregionallyfocusedeffortsand commitments that have been takingplaceoverthepastyear (seepages22-25).

Sales covered by the Book and Claim supply chain model have decreased by 43%, but physical sales of CSPO have increased by 33% between 2015 and 2016, indicating a general shift in key markets to increasingly source physical CSPO.


MARKETOUTREACH

PalmTrace Launched in 2017

January2017sawtherelaunchofeTraceasPalmTrace,introducingkeynewfeaturestotheofficialtraceabilitysystemofRSPOcertifiedoilpalmproducts.ThelaunchalsocoincidedwiththediscontinuationofRSPO’sendorsementofGreenPalm,theprevioussupportsystemfortheB&Csupplychainmodel.

PalmTraceenablesthetradingofRSPOcertifiedvolumesacrossallfoursupplychainmodels(IdentityPreserved,Segregated,MassBalanceandBookandClaim),afeaturenotpreviouslyavailableineTrace.SinceJanuary2017,theB&CsupplychainmodelissupportedbythetradeofRSPOCredits.Mills,crushers,andindependentsmallholdersofferdifferenttypesofRSPOCreditsviaanonlinemarketplaceorthroughOffMarketDeals.PalmTraceismanagedbythenot-for-profitorganisationUTZ.

WearepleasedtoreportthatsalesofphysicalRSPOCSPOhaveincreasedby43%(616,582tonnes)inthefirstfivemonthsof2017comparedwiththesame

periodlastyear.Inthesametimeframe,theRSPOsystemhasseena27%growthinsalesofCertifiedSustainablePalmKernels(CSPK)drivenbyanincreaseinIdentityPreservedCSPKsales(upto950,119tonnes,comparedto745,326tonneslastyear).Meanwhile,salesofRSPOcredits(previouslyGreenPalmcertificates)sawasignificantdeclineof43%globally.ThesetrendsareinpartexplainedbysomelargerRSPOmemberstransitioningfromtheB&CsupplychainmodeltoMassBalanceorSegregatedmodels,whichweconsidertobeaprogressivestep.

IncreasingsalesofcertifiedmaterialsisapositivesignalforRSPOgrowersthathaveinvestedincertifyingtheirmillsandplantations.WewillcontinuetomonitorthistrendtoensureinclusivitythroughtheB&Cmodel.B&CplaysafundamentalroleinconnectinggrowersthathavenoaccesstothephysicalsupplychaintoamarketdemandforCSPO.

8 The Amsterdam Declaration was encouraged by European private sector organisations engaged in the palm oil supply chain. Initial signatories in 2015 include: United Kingdom, the Netherlands, Germany, France, and Denmark. Since its launch, Norway and Italy have signed the Declaration as well. The Declaration can be accessed at https://www.euandgvc.nl/documents/publications/2015/december/7/declarations-palm-oil” www.euandgvc.nl/documents/publications/2015/december/7/declarations-palm-oil

Fostering Support for CSPO: Asia and Europe

Thepastfewyearshaveseencriticaladvances toward the uptake of CSPO indifferentregionalmarkets.In2015,anumberofcountriessignedacommitment to achieve 100% sourcing ofCSPOforEuropeby2020(AmsterdamDeclaration).8Wealsosawalargegroup of retailers and consumer goods manufacturersinkeyEUmarketstaking

partinalliancesandinitiativestosetnational-levelgoalsfor100%CSPOacrossdifferenttargetdates(upto2020).TheRSPOhascontinuedsupportingthese commitments in 2016 and 2017 throughvariousactivities,bringingactorstogether,enablingpartnershipsanddiscourse,campaigningonsustainabilityissuesandpromotingCSPO.

Wehavealsosustainedourengagementswith some of the largest consumer markets for palm oil products in Asia and

NorthAmerica.By2020,ourgoalisforMalaysiaandIndonesiatoreach50%CSPO,India30%CSPO,China10%CSPO,andtheU.S.100%CSPO.

RSPOregionalofficesandrepresentativesfacilitate our tailored approach for each countryandregion(SeeRSPOImpactReport2016,pages46-53).WhilewecontinuetomakeprogressinmarketsoutsideofAsia,EuropeandNorthAmerica,thefollowingkeyhighlightsandupdatesrelatetothesethreeregions.

UTZPOWERED BY


Key Regional Updates: Asia

Asia

• RSPO membership in China increased from 52members(asat30June2016)to74members(asat30June2017).ThenumberofRSPOsupplychaincertifiedfacilitiesinChinahasalsogrownfrom72facilitiestoatotalof101facilitiesduringthissameperiod.

• The Singapore Alliance for Sustainable Palm Oil(SASPO)wasformedinJune2016withthe aim to increase demand for sustainable palmoil.SASPOwasjointlylaunchedbyWWF-Singaporeandagroupoffivefoundingmembers.TheAlliance’skick-offeventwasheldinNovember2016.

• The14thRoundtableMeeting(RT14)took

placeinBangkok,Thailandon10November2016.Itwasattendedbymorethan800representativesfrom46countries,andfocusedonthemesrelatingtoequality,humanrightsandsmallholderinclusivity.

• WWFJapanandtheRSPOhostedthefirsteverRSPOJapanDayinTokyoinSeptember2016.Topicsincludedsustainabilityissuesinpalmoil,supplychaincertification,bestpracticesandchallenges,andsustainableprocurementofpalmoil.

• InAugust2016,asustainableconsumptioneventtookplaceinMalaysia,jointlyorganisedbyWWF-Malaysia,MalaysianEnvironmentalNon-GovernmentalOrganisations(MENGO)andEcoKnights.TheRSPOheldapresentationduringtheevent,whichfocusedonthecriticalroleofcertifiedsustainablepalmoil.

MARKETOUTREACH

ThenumberofsupplychaincertifiedfacilitiesinChinahasincreasedby40%overthecourseofthereportingperiod.

• InJanuary2017,theRSPOlaunchedtheYouthLeaderinSustainabilityProgrammeinIndonesia,incollaborationwithWWF-Indonesia,TheBodyShopIndonesia,andSINARMEADOW.Acompetitionwasheld,garneringparticipationfrom810studentsfrom58universities,andthreeyouthleaders were selected for internships at the RSPOanditspartnerhosts.

• TheRSPOhostedanestimated120attendeesatitsfirstroadshowinSubang,SelangorinApril2017.Thepurposeofthe event was to increase awareness of the RSPO’s mission and encourage localbusinessestotakethefirststepsinadoptingbestsustainabilitypractices.TheeventisthefirstofseveralroadshowsplannedforMalaysia,SingaporeandThailandin2017.

• Duringthereportingperiod,theRSPOhasalso strengthened engagement with both media and consumer groups in the region through a number of partnerships and activities.Theseinclude:

• LaunchingavideocampaignpromotingtheRSPO’sTrademarkApp(seepage27),targetingconsumersinMalaysia.

• Establishing a media partnership in December2016withoneofAsia-Pacific’sleadingsustainabilitynewssites,Eco-Business.

• Forming an advertorial media partnershipinMay2017withTheEdge,apublisherofleadingbusinessandfinancialpublicationsinMalaysiaandSingapore,andwithKompas.com,theleadingonlinenewspublicationinIndonesia.


Europe

• AdjacenttoRT14,theRSPOregionalofficein Europe organised a successful media tourforseveninternationaljournalistsinKrabi,ThailandinNovember2016.Participantshadtheopportunitytovisitcertifiedsmallholderfarmersandlearnaboutthechallengesthattheyface.

• On6June2017,ItalysignedtheAmsterdamDeclarationalongwithDenmark,France,Germany,theNetherlands,theUKandNorway,whichpledges countries to promote the use of 100%sustainablepalmoilby2020.

• ThefifthannualEuropeanRoundtable(EURT)eventwasheldinLondoninJune2017,receivingover342delegatesfrom27countries.Theeventfocusedoninnovationsandpartnershipsfortransformingthepalmoilsupplychaintowards100%sustainability.

MARKETOUTREACH

InJune2017,ItalysignedtheAmsterdamDeclaration,joininga number of other European countries in their pledge to promote the use of 100% sustainablepalmoilby2020.

• The‘FundaciónEspañoladelAceitedePalmaSostenible’,aSpanishfoundationforsustainablepalmoil,waslaunchedinJune2017.

• TheRSPOandFriendsofEuropeco-hostedadebatetitled‘Deforestation:ASustainableDilemma’,whichwasattendedbyover100peopleinBrusselsinMarch2017.Onekeytopicwastheroleofdownstreamgovernments and other actors in closing thegapbetweencommitmentsandactionsinworkingtowardsadeforestation-freeeconomy.

• The RSPO launched a media partnership withHuffingtonPostItalytoprovideaforum for more informed discussion on sustainablepalmoil,atopicofpopulardebateinItaly.

• TheUKreportedthat,collectively,byendDecember2015,theimportsofSegregatedand Mass Balance CSPO and purchases of GreenPalmcertificatesbyUKcompaniesin2015wereequivalenttoanestimatedproportionof87%or108%ofUKpalmoilimports(excludingderivativesandfinishedgoods),dependingonthebaselinetradedataused.Thisrepresentsanincreasefrom72%or93%respectivelyin2014,andfrom50%and59%respectivelyin2012.NotablytheBritishRetailConsortiumreportedthat leading UK retailers had reached their target of 100% of palm oil sourced being certifiedassustainablepalmoilbytheendof2015,89%ofwhichwasphysicallyCSPO.

• InApril2017,theEuropeanParliamentpassedanon-bindingresolutionaimedatlimitingimportsofpalmoilconnectedwithdeforestation.Italsosupportedcertificationasameans.

Key Regional Updates: Europe


North America

Combined RSPO membership for theU.S.andCanadahasrisenbyapproximately62%since30June2016.

MARKETOUTREACH

• TheNorthAmericanSustainablePalmOilNetwork(NASPON)isexpectedtolaunchinlateNovember2017.NASPONwillworktowardsmakingNorthAmericaa100%CSPOmarket,andiscurrentlydevelopingaformalgroupstructure.

• ThenumberofRSPOsupplychaincertifiedcompaniesinthe UnitedStates(U.S.)andCanadahasincreasedfrom114to194overthecourseofthereportingperiod.Inaddition,combinedRSPOmembershipforthesetwocountrieshasrisenbyapproximately62%since30June2016,amountingto371membersasat30June2017.

Key Regional Updates: North America



9 UN New York Declaration on Forests (2015) committed companies to half net deforestation in their supply chains by 2020, and to eliminating net deforestation by 2030.10 For further information, see www.theconsumergoodsforum.com/blog/966-implementing-and-scaling-up-the-cgf-zero-net-deforestation-commitment.

RSPO Trademark

Asat30June2017,RSPOTrademarklicencesareheldby556supplychaincertifiedmembersacross50countriesworldwide.Duringthereportingperiod,we also welcomed four new countries totheTrademarklicencelist:Hungary,Lithuania,PeruandTurkey.

EuropeanmarketsstillleadthefieldinRSPOTrademarklicensing,withGermanysignificantlyahead(evenwithinthetoptencountries).OutsideEurope,thecountrywithmostTrademarklicencesistheUnitedStates(U.S.).ManyU.S.RSPO member companies are global andrequireflexibilityfortheirEUoperationstousetheTrademarkiftheywish,whichmaypartlyexplainthistrend.Anincreasingnumberofretailers

andcompaniesarealsostartingtoexperiment with RSPO Trademark use in theU.S.market.

Considered alongside RSPO member datafortheU.S.(seepage6),thereisreasontobelievethattheU.S.marketfor sustainable palm oil is making positiveprogress.Morecompaniesareimplementingcorporatesustainablesourcingpolicieswithintheirnationalsupplychains,andthemomentumcontinuestogrowfollowingtheUNNewYorkDeclarationonForests(2015),9 and The Consumer Goods Forum's commitment to achieving zero netdeforestationby2020,10 which have beenusedtoframetheconstructionofsustainablesourcingpolicies.

MARKETOUTREACH


1461548 273244 39 334791 34

Other

Austria

United Kingd

omSp

ain

Malaysia

Netherlands

Belgium

United St

ates

France

Germany

Italy

Trademark Licences by Country(Asat30June2017)

Note to data: Trademark licence data reflects data from supply chain certified members only.

MARKETOUTREACH

WitheffectfromSeptember2015,allnewmembersreceiveanRSPOTrademarklicenceuponjoiningtheRSPO.Thisexplainsthesuddenincreaseinlicenceholdersfromthelastreportingperiod(althoughtheuseoftheRSPOTrademarkonproductsisrestrictedtosupplychaincertifiedmembersonly):144newlicenceswereissuedinthisreportingperiodwhile112wereissuedbetween1July2015-30June2016.

WewillcontinuetoengageininnovativeactivitiesandcampaignstostrengthenawarenessoftheRSPOTrademarkalongthepalmoilsupplychainandamongconsumersworldwide.In2016,webuiltandlaunchedafreecrowdsourcingapplication-theRSPOTrademarkApp.Thisenablesconsumerstofind,shopanduploadRSPOcertifiedproductsbearingtheRSPOTrademarkwherevertheyareintheworld.Whiletherehavenotyetbeenasmanyuploadsaswewouldlike,itisencouraging to see that the number of products listed on the app has doubled in thepastyear.

ThefreeRSPOTrademarkAppisavailableforiOSandAndroid.Seehowitworksat:www.youtube.com/watch?v=MXoQeyEDn44.

As at 30 June 2017, RSPO Trademark licences are held by 556 supply chain certified members across 50 countries worldwide.


11 The SEnSOR Programme was first introduced at the 10th RSPO Roundtable Meeting in 2012 in Singapore and implementation began in 2015.

SEnSORPROGRAMME

TheSociallyandEnvironmentallySustainableOilPalmResearch(SEnSOR)Programmewasinitiatedin201211togeneratescientificresearchontheimpactsofRSPOcertification.ThisindependentresearchprogrammefocusesontestingtheeffectivenessofRSPOstandardsacrossthreedimensions:biodiversity,environment,andpeople.

Phase 0ne : Key Findings

ThefirstphaseofSEnSORentailedbuildingtheevidencebaseessentialforeffectivelymeasuringtheimpactsofcertification.Dedicatedteamscompiledexistingstudiesandknowledgeonbiodiversity,environmentandpeople,andcollectednewbaselinedatainareaswhereresearchwaslacking.PhaseonewascompletedinSeptember2016.

• Data on forest patches havebeensynthesised.The results show that conservationareaswithinoilpalmplantationsneedtobe at least a few hundred hectares in size to have substantialbenefitsforbiodiversity.

• TheeffectivenessofVersion1.0oftheRSPOPalmGHGcalculator tool has been evaluated and knowledge gapshavebeenidentified.Available evidence supportingsoilmanagementbestpracticeshasalsobeencollated.

• TheFree,PriorandInformedConsent(FPIC)process has been shown toincreaseinteractionsbetweenplantationsandcommunities,butthereis no conclusive evidence thatFPICreducesconflictorimprovessocialequality.A lack of empirical studies hasbeencitedasakeyconstraining factor in drawing meaningful conclusions.

• Investigationintosmallholders’adoptionofcertificationconcludesthatsmallholderorganisationisakeybarriertocertification.Compliance with best practicesandbiodiversityandHCVcriteriaarefoundtobeespeciallychallenging.

All SEnSOR phase one reports can be downloaded at www.sensorproject.net/reports.

Biodiversity Environment People

1


Phase Two : Progress of Ongoing Projects

Thesecondphaseoftheprogramme,ongoingbetweenSeptember2016andDecember2017,usesBorneoasastudysiteandinvolvesthreesubstantialresearchprojectsthatarecollectingnewdatatodeterminetheimpactsofRSPOcertification.

• MappinganddigitisingofthespatiallocationandarrangementofHCVsitesacross Kalimantan is taking place to assess whether these conserved areas are improvingconnectivityforbiodiversityinthelandscape.Fieldsurveyswill also be conducted to assess the current levels of biodiversitysupportedbytheseHCVpatches.

• Inapartnershipstudy,SEnSOR’s Environment team is measuring carbon storage inHCVareastoassesstheimpactofcertificationontheretentionofcarbonstocksinplantationlandscapes.

• SEnSOR’s People team isutilisinganinnovativerole-playingapproachtoinvestigatewhethertheRSPO’s dual aims of reducing deforestationandimprovinglivelihoodsareinconflictinthe smallholder context in Sabah.

Outputsfromthisphasewillbemadeavailablebytheendof2017.

Biodiversity Environment People

Phase Three : Plans and Funding

PhasethreewillaimtoexpandSEnSOR’sfieldsitenetworktotesttheimpactsofRSPOcertificationonbiodiversity,toincludenewtaxonomicgroupsandtotestthepersistenceofspeciesinthelandscape.TheBiodiversityteamaimstointegratesoilandhydrologystudiesatkeystudysites.ThePeopleteamwillbuildonthebaselinedatacollectedduringphasetwotoexpandresearchintotheimpactsofRSPOcertificationonsmallholderlivelihoods,and,incollaborationwiththeBiodiversityandEnvironmentTeams,assessimpactsinthesefieldswithinthesmallholdercontext.

InadditiontofundingfromtheRSPO,USD2millionhasbeengrantedtoSEnSOR-linkedprojectsbythecorporatesectorandgovernmentsoftheUK,Netherlands,MalaysiaandIndonesia.Co-fundedprojectsincluderesearchonpeatlandrestoration,riparianreserves,carbonstorage,impactsofclimatechangeandinvasivespeciesinoilpalmlandscapes.

For more details about the programme visit www.sensorproject.net/programme.

2

3

SEnSORPROGRAMME


RSPO PRINCIPLES& CRITERIA REVIEW32 Background33 Review Process Overview36 P&C Review Task Force37 RSPOCertificationSystems: EnhancingQuality,Credibility and Oversight


RSPO PRINCIPLES & CRITERIAREVIEW

Background

AsanISEALAlliancemember,wearerequiredtoreviewourcertificationstandardatleasteveryfiveyearstoensureitscontinuedeffectivenessinmeetingitsstatedobjectives.Asacredibleandleadingcertificationorganisationforsustainablepalmoil,wearefurthercommittedtoupholdingastandardthatremainsrelevantandreflectsstakeholders'understandingofbestpracticesinthesector.

TheRSPOPrinciples&Criteria(P&C)isthestandardattheheartoftheRSPOcertificationprocess.ThelastreviewoftheRSPOP&C(RSPOP&C2007)tookplacein2012,andtheresultantRSPOP&C2013wasadoptedbyanextraordinaryGeneralAssemblyinApril2013.Acentralfocusofourworkin2017and2018willbetoconductthenextP&Creview.

ThereviewprocesswasinitiatedinMarch2017.ItsscopeisthegenericP&C2013document,comprisingofPreamble,Principles,Criteria,IndicatorsandGuidance,togetherwithDefinitionsandAnnexes.ThereviewistargetedforcompletionintimeforadoptionattheRSPOGeneralAssemblyinNovember2018.ItwillalsoneedtobeendorsedduringtheRSPOBoardofGovernors(BoG)meetinginQ22018.

ParticularfocushasbeenplacedonensuringthattheP&Creviewisdeliveredviaatrulyinclusiveprocess.Theevaluationwilltakeintoconsiderationinformationcollectedfromstakeholderinput,auditingresultsandfeedbackfromourmonitoringandevaluationwork,aswellasnewknowledgeandpractices.AnotherimportantrequirementofthereviewwillbetoreflectimpactelementsasprescribedbytheRSPO’s‘TheoryofChange’,whichwasendorsedbytheRSPOBoardofGovernorsinSeptember2017.12

12 The RSPO's 'Theory of Change' is a roadmap illustrating what, how, and why our intended activities are expected to drive change and deliver on impacts, ultimately making sustainable palm oil the norm.



A central focus of our work in 2017 and 2018 will be to conduct the next P&C review. The review process commenced in March 2017, and is targeted for completion in time for adoption at the RSPO General Assembly in November 2018.


13 The RSPO Standard Operating Procedure for Standard Setting and Review can be accessed at www.rspo.org/news-and-events/announcements/revised-rspo-standard-operating-procedure-for-standard-setting-and-review-june-2017

PRINCIPLES & CRITERIAREVIEW STEERING GROUP

• ChairoftheStandards&CertificationStandingCommittee

• ChairoftheClaims&CommunicationsStandingCommittee

• ChairoftheTrade&TraceabilityStandingCommittee

• IndonesiangrowerrepresentativefromtheBoG• MalaysiangrowerrepresentativefromtheBoG• RSPOChiefExecutiveOfficer• RSPO Technical Director

To ensure that the RSPO and the review process are in line withISEAL,wehavealsotranslatedISEAL’sbestpracticesforstandard-settingintoanRSPOSOPdocument,whichcameintoeffecton1July2017.13 The SOP sets out procedures for all RSPO standarddevelopmentactivitiesanddefineshowthepresentreviewisbeingstructuredandconducted.

Review Process Overview

TheprocessofficiallycommencedwiththeestablishmentoftheP&CReviewSteeringGroup.TheSteeringGroupistaskedwithoverseeingthereview,particularlyduringtheformationoftheP&CReviewTaskForceandthesubmissionofthefinaldocumenttotheRSPOBoardofGovernors.TheSteeringGroupwasalsoresponsibleforappointingtheconsultanttofacilitatethisprocess.Onceestablished,theTaskForceisresponsibleforproducingthedraftrevisedP&C.



34 RSPO IMPACT UPDATE 2017 35RSPO IMPACT UPDATE 2017

An overview of the P&C review process is outlined below:

Preparation Phase Drafting & Consultation Phase Approval Phase


(March - June 2017) (June - November 2017) (November 2017 - March 2018) (March - April 2018) (May - November 2018)

Draft 0 Draft 1 Draft 2 Draft 3 Final Draft

Draft 0 completed (June 2017)

Gap analysis:

RSPO P&C 2013 underwent comparative analysis against other standards, and recommendations were made on the scope of the review.

Draft 0 started (March 2017):

A draft outlining what the Standard should look like was produced, incorporating recommendations emerging from the gap analysis, results of the desk reviews conducted, and inputs gathered from various internal and external processes since the last review of the Standard.

First Task Force meeting (May 2017):

Discussions held at P&C level covering issues raised in Draft 0, but not at indicator level.

P&C Review Task Force established (April 2017):

Members were nominated according to sector by RSPO BoG members from each membership category. The Steering Group made the final decision on Task Force selection.

Comments collated (November 2017)

Outreach session at RSPO EURT(June 2017)

Second Task Force meeting (July 2017)

Draft 0 is reviewed, and discussion held at indicator level. Production of Draft 1.

Draft 1 completed (August 2017)

Public consultation 1 (Sep - Oct 2017):

The 60-day consultation takes place online, and through workshops and face-to-face consultations. Workshops held in Malaysia, Indonesia, Europe, Africa and Latin America.

Translations & consistency check 1 (August 2017)

Comment consultation (Feb - Mar 2018)

Third Task Force meeting (November 2017):

Compiled comments from the first public consultation are discussed for Draft 2 production.

Draft 2 completed (December 2017):

Draft 2 is produced based on input from public consultation 1.

Translations & consistency check 2(Dec 2017 - Jan 2018)

Public consultation 2 (Jan - Feb 2018):

The 30-day consultation takes place online and through workshops held in Malaysia, Indonesia, Europe, Africa and Latin America.

Pilot tests & recommendations(April 2018):

Pilot tests take place in South East Asia, Africa and Latin America.

Fourth Task Force meeting (March 2018):

Considers the compiled feedback from public consultation 2 for production of Final Draft.

Draft 3 completed (April 2018):

Draft 3 is produced based on input from public consultation 2.

Final Draft completed and signed-off by Task Force (May 2018)

Adoption by members at RSPO General Assembly (November 2018)

BoG endorses Final Draft (June 2018)

The RSPO Secretariat acts as the technical resource for the process throughout all phases and is responsible for coordinating the logistics. The Steering Group oversees the entire review process and multiple briefings are held throughout the duration of the review.


Theory of Change elements considered throughout the process Theory of Change elements considered throughout the process

RSPO Secretariat & Steering Group


Particularfocushasbeenplacedon ensuring that the P&C review is deliveredviaatrulyinclusiveprocess

ExistingRSPOworkinggroupswerebriefedbytheRSPOSecretariatonthereviewprocess,asrequiredbytheSOP,andtheirinputwascollectedbeforetheP&CTaskForcewaschosen.ThisinputwastakenintoconsiderationtoproduceDraft0oftherevisedP&C.Workinggroups,consultantexpertsandstakeholdershavesomeopportunitiestofeedintotheprocessbeforeorduringeachofthefourTaskForcemeetings,andespeciallyduringpublicconsultations.

P&C Review Task Force

TheP&CReviewTaskForcewasestablishedinApril2017.ItischairedbytheRSPO'sChiefExecutiveOfficerandconsistsofpalmoilproducers,supplychainandinvestorrepresentativesandNGOs.TermsofReferencefortheTaskForceweredevelopedatthestartof2017andmembersoftheRSPOBoardofGovernorsmadenominationsaccordingtosector.TheSteeringGroupmadethefinaldecisiononthecompositionoftheTaskForce,whichnowincludes24substantivemembers(and19alternates).

Supply chainand investors

Processors, refiners, traders, manufacturers using oil palm, retailers

and financial institutions.

members representing:6

International environmental andsocial NGOs/civil society.

Non-governmental organisations (NGOs)


Palm oilproducers


Malaysia (3), Indonesia (3), Rest of the World (3) and smallholders and

outgrowers (3).



TheroleofTaskForcemembersduringthefourphysicalmeetingsistodeliberateonthestructureandcontentoftherevisedstandard.Morespecifically,theyareresponsiblefor:

ConvertingtheissuesraisedinDraft0intoan agreed scope for changesat‘Principles’and‘Criteria’levels.

Discussing the P&C indicators and producingthedraftrevised P&C 2018 for thefirst60-daypublicconsultation.

EvaluatingfeedbackfromthefirstpublicconsultationandproducingDraft2forthesecond30-daypublicconsultation.

Considering input from the second publicconsultationandcompletingtheFinalDraftrevisedP&C document for submission to the BoardofGovernors.

TheTaskForcemustadheretoitsCodeofConductandmembersarecommittedtoactiveparticipationinallmeetings,aswellasconsultingwithandobtaininginputfrominterestedpartiesnotrepresenteddirectlyintheTaskForce.Mostimportantly,TaskForcemembersagreetostrivetowardmakingalldecisionsbyconsensus.

Topicexperts,representativesfromcertificationbodiesandacademicscanalsobeinvitedbytheRSPOtoparticipateintheprocess.TopicexpertsmaybeaskedtoinformtheTaskForceoncriticalissues,forinstanceHCV,labour,healthandsafety,chemicalsandsupplychainissues,whilerepresentativesfromcertificationbodiesmayberequiredtoactasobserversduringTaskForcemeetings.

RSPO Certification Systems: Enhancing Quality, Credibility and Oversight

InadditiontothecrucialreviewoftheRSPOP&C2013,wehavealsofocusedoureffortsin2016and2017onevaluatingandimprovingthesystemunderwhichRSPOmembersreceivecertification.ThisfocusfollowsResolution6hpassedatthe12th General Assemblyin2015,whichcommitstheRSPOtoimprovingthequality,credibilityandoversightofRSPOassessments.

ThiscommitmenthasinvolvedareviewoftheRSPOCertificationSystemsfortheRSPOP&C,whichsetouttherequirementsforthesystemsthatmustbefollowedinimplementingcertificationagainsttherequirementsoftheRSPOstandardandrelatedassessments.TherevisedRSPOCertificationSystemsfortheP&Ccameintoeffecton1July2017.14Allmembersandcertificationbodieshavebeenallocatedatransitionperiodoftwelvemonthstoachievecompliance.FurtherupdatesonimplementationwillbeprovidedinthenextImpactReportscheduledfor2018.

ImportantprogresshasalsobeenmadeintheRSPOIntegrityProject,acollaborationbetweentheRSPOandAccreditationServicesInternational(ASI).TheprojectaimstostrengthentheimplementationofRSPOrequirements,identifygapsandweaknessesintheRSPOstandardsandprovideaplatformforalignmentbetweentheRSPO,ASIandcertificationbodies.InMarch2017,ASIreleasedareportsummarisingkeyfindingsonthefirstsetofcomplianceassessmentsconductedbyASI,andevaluatingtheperformanceofcertificationbodiesinRSPOaudits.

Althoughbasedononly10assessments,theresultsalreadyindicatethatsubstantialimprovementsareneededinthetrainingandperformanceofcertificationbodiescurrentlyconductingRSPOaudits.Giventhesignificanceofthesefindings,andthatmorecomplianceassessmentswillbeconductedbyASIin2017,theRSPOwillprovideacomprehensiveupdateontheRSPOIntegrityProject-includingprogressonitsothercomponents-in2018.

The results of the report can be accessed at www.rspo.org/about/who-we-are/task-forces/assurance-task-force.

14 The latest version of the RSPO Certification Systems for Principles & Criteria can be accessed at www.rspo.org/key-documents/certification/rspo-certification-systems.



BASE DATA, GLOSSARY & REFERENCES40 Base Data and Notes 43 Glossary45 References47 Contact the RSPO


BASE DATA AND NOTES

Unlessotherwisespecified,allfiguresandresultspresentedinthisreportareinclusiveupuntil30June,orbasedontheRSPO’sofficialreportingperiod:1July-30June.Thisexcludesdatafromothersources(e.g.independentresearchstudies),whichmayhaveacalendaryearbasis(1January-31December).

FigurespresentedbelowmaydifferfromfigurespresentedinthebasedatasectionsofpreviousRSPOImpactReportsandUpdates,ascorrectionsweremadetoensurethatdatareflectstheRSPO’sofficialreportingperiod.Thisincludesarestatementofthe2014NPPareafigures,whichdidnotreflectannualdata(1July2013-30June2014).Toensuretheaccuracyofallhistoricaldata,theRSPOwillconductafullevaluationofhistoricaldatainthenextreportingterm.

Indicator Breakdown Unit 2017 2016 2015 2014 2013 2012Membership

Total Number of Members

3,422 2,941 2,282 1,631 1,178 838

By Country United Kingdom

Number of Members

412 378 330 200 131 106

Germany 403 372 279 208 147 97United States 324 200 138 89 70 46Netherlands 212 191 146 119 92 69Italy 179 158 113 52 29 0France 146 143 127 106 86 73Malaysia 137 128 109 117 95 87Belgium 131 106 89 62 44 24Australia 124 114 80 53 0 0Indonesia 115 115 103 109 88 70Other 1,239 1,036 768 516 396 266

By MembershipType

OrdinaryNumber of Members

1,551 1,373 1,151 991 829 695Associate 1,776 1,458 1,032 540 309 142Affiliate 95 110 99 100 103 104Certified, Production and Uptake

Area ProductionArea

Ha 2,451,573 2,187,784 2,768,149* 2,509,853* NA NA

CertifiedArea Ha 3,236,429 2,830,355 3,300,653* 2,973,902* NA NAHCVArea Ha 189,777 157,115 144,164* NA NA NA

Annual Production Capacity

CSPO MT 11,710,919 10,850,196 12,623,139* 11,125,902* NA NACSPK MT 2,683,835 2,444,103 2,883,200* 2,556,432* NA NA

Supply CSPO MT 5,996,499 12,062,293** 12,130,775 10,998,913 8,735,843 6,724,236CSPK MT 1,374,420 2,765,223** 2,780,291 2,531,369 2,030,746 1,570,070

Sales CSPO Sales throughIP,SG,MB

MT 2,328,312 3,674,550** 2,755,904 2,432,258 1,551,017 984,138

CSPO Sales through B&C

MT 667,314 1,958,181** 3,426,790 2,917,408 2,962,256 2,495,277

Total CSPO Sales

MT 2,995,626 5,632,731** 6,182,694 5,349,666 4,513,273 3,479,415

Uptake CSPO Sales/ Supply

MT 50% 46.7%** 51% 48.6% 51.7% 51.7%

Notes to data: • Membership,AreaandAnnualProductionCapacitydatafor2012-2017istakenasat30Juneforeachrespectiveyear.• FinaldataforSupply,SalesandUptakecanonlybecalculatedatyear-end(31December).Therefore,datafor2012-2016isinclusiveuntil

31December,anddatapresentedfor2017isonlyinclusiveuntil30June2017.• AllfigurespresentedunderCertified,ProductionandUptakeareinclusiveofschemedandindependentsmallholderscertifiedundergroup

certificationschemes.• Figuresmarkedwithanasteriskhavebeencorrectedforthe2017reporttobeinclusiveupto30Juneofeachrespectiveyear,andmaytherefore

differfromcorrespondingfigurespresentedintheRSPOImpactReport2016.• Figuresmarkedwithadoubleasteriskhavebeenupdatedforthisreporttobeinclusiveupto31December2016.


Indicator Breakdown Unit 2017 2016 2015 2014 2013 2012New Planting Procedure

NPP Area(By Country)

Indonesia Ha 17,939 34,609 332,372 464,891 NA NALiberia Ha - - 48,470 53,385 NA NACameroon Ha - - - - NA NAPapua New Guinea

Ha 972 2,591 - 2,928 NA NA

Malaysia Ha 496 2,823 3,558 - NA NAMexico Ha 1,019 - - - NA NAGabon Ha 72,930 - 23,780 31,800 NA NAGuatemala Ha 496 - - 691 NA NACambodia Ha - - - 2,432 NA NANigeria Ha 2,368 - - - NA NACosta Rica Ha - - - 2,532 NA NATogo Ha 4,144 - - - NA NAGhana Ha - - 2,240 - NA NABrazil Ha - - 7,448 - NA NA

Notes to data: • NPPareasdistributedovercountryandyear.FiguresarebasedontheRSPO’sofficialreportingperiod(1July-30June).• AllNPPareadatafor2014hasbeencorrectedinthisreporttoreflecttheRSPO’sofficialreportingperiod(1July2013-30June2014).Thedata

thereforediffersfromcorrespondingfigurespresentedinthe2014,2015and2016reports,whichreflecttotalNPPareatakenasat30June2014.

Indicator Breakdown Unit 2017 2016 2015 2014 2013 2012Trademark

Total Trademark Number of Licences

556 412 300 181 NA NA

By Stakeholder Group

Consumer Goods Manufacturers

Number of Licences

220 175 128 79 NA NA

Processors & Traders

109 86 77 51 NA NA

SupplyChainAssociates

200 135 77 36 NA NA

SupplyChainGroup Managers

2 NA NA NA NA NA

Retailers 7 7 9 9 NA NAGrowers 18 9 7 6 NA NA

By Country Germany

Number of Licences

91 68 54 40 NA NAUnited Kingdom 48 39 24 17 NA NAFrance 47 42 27 20 NA NANetherlands 44 35 24 15 NA NABelgium 39 32 22 11 NA NAItaly 34 27 - - NA NAUnited States 33 20 24 16 NA NAMalaysia 32 25 28 21 NA NASpain 27 19 - - NA NAAustria 15 - - - NA NAOthers 146 94 58 27 NA NA

By Year Number of Licences

70 163* 111 98 51 29

Notes to data: • Trademarklicencedata‘ByYear’for2012-2016isrepresentativeofcalendaryear(1Jan-31Dec).Datapresentedfor2017represents

half-yeardata(1Jan-30June2017).• Figuresmarkedwithanasteriskhavebeenupdatedforthisreporttobeinclusiveupto31December2016.

BASE DATAAND NOTES


Indicator Breakdown Unit 2017 2016 2015 2014 2013 2012Complaints

Complaints Success Criteria

Complaints resolved/ closed % age 0% 22.2% 39.3% 40% 36.1% 28%Averagetimetocloseacomplaint Days 73 363* 685 604 414 455Actionsplansorremedialworksundertaken

7 6 NA NA 12 6

Members suspended or voluntarilywithdrewaftercomplaintverified

0 1 1 2 1 2

Notes to data: • Complaintsdatafor2012-2015isrepresentativeofcalendaryear(1Jan-31Dec).Figuresfor2017weretakenasat30June2017.• Figuresmarkedwithanasteriskhavebeenupdatedforthisreporttobeinclusiveupto31December2016.

IndicatorTotal Certified

Area (Ha)

Total Production Area

(Ha)Total CSPO

(MT)Total CSPK

(MT)Total FFB

Produced (MT)Monthly CSPO

Supply (MT) Monthly CSPK Supply (MT)

P&C CertificationMills and Supply Base(s) 3,224,835 2,440,402 11,664,557 2,671,960 51,768,463 972,046 222,663Group Certification for Smallholders (SHG)

11,594 11,171 46,362 11,875 230,941 3,864 990

Note to data: Allfiguresintheabovetablearetakenasat30June2017.

IndicatorTotal Certified

Area (Ha)

Total Production Area

(Ha)Total CSPO

(MT)Total CSPK

(MT)Total FFB

Produced (MT)Monthly CSPO

Supply (MT) Monthly CSPK Supply (MT)

Countries with P&C CertificationBrazil 124,481 46,213 137,915 27,584 790,000 11,493 2,299Cambodia 24,843 14,072 30,096 6,174 154,338 2,508 514Colombia 55,008 35,813 140,093 31,468 684,086 11,674 2,622Costa Rica 48,523 44,385 191,984 43,598 778,247 15,999 3,633Ecuador 7,252 5,878 10,512 7,236 80,786 876 603Gabon 20,030 5,145 18,629 3,493 77,622 1,552 291Ghana 25,478 15,785 44,429 10,478 209,562 3,702 873Guatemala 29,587 27,732 133,687 26,225 777,404 11,141 2,185Honduras 20,836 20,286 83,689 18,662 359,933 6,974 1,555Indonesia 1,718,558 1,332,258 6,521,589 1,474,706 28,142,512 543,466 122,892Côte d’Ivoire 7,414 7,414 5,000 1,090 66,130 417 91Madagascar 2,234 1,087 1,220 650 6,336 102 54Malaysia 941,876 733,785 3,663,529 859,601 16,632,182 305,294 71,633Papua New Guinea 184,038 139,105 631,587 148,974 2,780,257 52,632 12,415Solomon Islands 9,015 6,198 30,759 7,184 132,296 2,563 599Thailand 5,662 5,247 19,838 4,838 96,772 1,653 403

Note to data: Allfiguresintheabovetableexcludedataforindependentsmallholderscertifiedundergroupcertification,butareinclusiveofschemedsmallholderscertifiedundergroupcertification.Allfiguresaretakenasat30June2017.

BASE DATA AND NOTES


GLOSSARY

Accreditation Services International (ASI) : Oneoftheworld’sleadingaccreditationbodiesforsustainabilitystandardssystems,includingtheRSPO.Foundedin2006,ASIisafullmemberoftheISEALAlliance.

Book and Claim (B&C) : SupplychainmodelthatsupportstheproductionofRSPOcertifiedsustainableoilpalmproductsthroughthesaleofRSPOCredits.

Certification body (CB) : Organisationthatprovidesthirdpartyauditingandcertificationservicesrelatedtoaproduct,processorsystem,andwhichcanissueacertificateofcompliance.

Certified Sustainable Palm Oil (CSPO) : PalmoilthathasbeengrownonaplantationthathasbeenmanagedandcertifiedinaccordancewiththeRSPOPrinciples&Criteria.

Compliance assessment : In-fieldassessmentconductedbyanaccreditationbodythatservestoevaluateacertificateholdertypicallyafewmonthsafteraCBhascompleteditslatestassessmentofthecertificateholder.

Crude palm oil (CPO) : Atypeofunrefinedvegetableoilobtainedfromthefruitoftheoilpalmtree.Dispute Settlement Facility (DSF) : RSPOin-housemediationservicethatfacilitatesthesharingofinformation,

contacts,know-howandexperiencesrelevanttopalmoilproductiondisputecases(whereatleastonepartyisanRSPOmember).TheDSFalsosupportsandfacilitatescommunitiesandotherstakeholderstousemediationasaneffectivemeanstoresolvedisputes.

Final Conservation Liability (FCL) : CompensationliabilitiesincurredbyRSPOmembersasaresultofclearancewithoutpriorHCVassessmentsinceNovember2005.FCLisexpressedinhectares.

Free, Prior and Informed Consent (FPIC) : Aprinciplethatacommunityhastherighttogiveorwithholditsconsenttoproposedprojectsthatmayaffectthelandstheycustomarilyown,occupyorotherwiseuse.

Fresh Fruit Bunch (FFB) : Bunchharvestedfromtheoilpalmtree.Eachbunchcanweighfrom5to50kilogrammesandcancontain1,500ormoreindividualfruits.

Greenhouse gas (GHG) : Termforgasesthattrapheatwithintheatmosphere.Theprimarygreenhousegasesarewatervapour,carbondioxide,methane,nitrousoxide,andozone.

Hectares (ha) : Aunitofmeasurementequivalentto10,000squaremetres,or100mx100m.High Conservation Value (HCV) : Biological,ecological,socialorculturalvalueswhichareoutstandinglysignificantor

criticallyimportantatthenational,regionalorgloballevel.Identity Preserved (IP) : TheIdentityPreservedsupplychainmodelassuresthatRSPOcertifiedpalmoilis

keptseparatefromoilthatisnotRSPOcertified.Thisoilcanbephysicallytracedbacktoitsplantationoforigin.

ISEAL Alliance : Globalmembershipassociationforcrediblesustainabilitystandards,whichworktogethertoimprovetheimpactandeffectivenessofcurrentandpotentialfuturemembers.

Jurisdictional approach to certification : Inthecontextofsustainablepalmoil,thejurisdictionalapproachinvolvesthecertificationofpalmoilproductionattheprovinciallevel,utilisingaparticularmodelofruraldevelopment.Theapproachfacilitatescollaborationbetweenlocalstakeholdersandregionalgovernmentstoimprovethewelfareofsmall-scalefarmers,curbtheuseofenvironmentallydestructivepracticessuchasslash-and-burnclearing,andironoutsupplychaininefficiencies.

Land Use Change Analysis (LUCA) : Assessmentdeterminingchangestovegetationcoverandlanduseoveragiventimeframe.MustbecompletedbyRSPOmemberspriortoanyconversionornewplanting.


Mass balance (MB) : Supplychainmodelthatallowscertifiedclaimstobetransferredfromoneoilpalmproducttoanother,eitherthroughphysicalblendingoradministrativelyunderstrictlycontrolledcircumstances.

Metric tonne (MT) : Aunitofmassequivalentto1,000kilogrammesNew Planting Procedure (NPP) : Providesguidanceonhowandunderwhatconditionsnewoilpalmplantings

shouldbecarriedout.Non-compliant land clearance (NCLC) : AllclearancebyRSPOmemberswithoutpriorHCVassessmentsinceNovember

2005.Oil palm : Aspeciesofpalm(Elaeisguineensis)andtheprincipalsourceofpalmoil.Itisnative

towestandsouthwestAfrica,butisnowcultivatedinover26countries.Idealgrowingconditionsoccurupto10degreeseithersideoftheequator.

PalmGHG : AcalculatordevelopedbytheRSPOGreenhouseGasWorkingGroup(2010-2011)andfurtherrefinedandimprovedbytheRSPOEmissionReductionWorkingGrouptoestimateandmonitornetGHGemissionsfromcurrentestateandmilloperations,aswellasnewplantings.

PalmTrace : TheRSPO’snewintegratedtraceabilitysystem(replacingeTraceandGreenPalm),usedbyRSPOcertifiedmemberstoregistersalesofcertifiedoilpalmproducts.PalmTraceenablesthetradingofRSPOcertifiedvolumesacrossallfoursupplychainmodels(IdentityPreserved,Segregated,MassBalanceandBookandClaim).

Palm Kernel Oil (PKO) : Oilextractedfromthekernelorcoreofthepalmfruit.Palm Oil : Edibleoilextractedfromthefruitoftheoilpalm.Palmoilisoneofthefewhighly

saturatedvegetablefats.Itremainssemi-solidatroomtemperatureandissuitableforawidevarietyofapplications.Palmoilisaningredientinalargenumberofproducts,includingmargarine,bakedgoods,chocolate,icecream,soapsandcosmetics.Itisalsousedasfuelforcarsandpowerplants.

Peat : Peatisanaccumulationofrottingplantmaterial,forminginwetlandsorpeatlands.Remediation and Compensation Procedure (RaCP)

: ProcedurewherebyRSPOmembersarerequiredtoremediateandcompensateforlandclearancewithoutpriorHCVassessmentsinceNovember2005.

RSPO Complaints and Appeals Procedure (CAP)

: RSPOprocedurefordealingwithcomplaintsarisingfromabreachoftheRSPOKeyDocuments,andappealsagainstthedecisionoftheComplaintsPanelinrelationtosuchComplaints.

RSPO Complaints Panel : High-levelbodythathandlescomplaintsagainstRSPOmembers.RSPO Principles & Criteria (P&C) : Guidelines on how palm oil companies and growers should produce palm oil

sustainably.Itformsthebasisofallcompanyassessmentsforcertificationandisreviewedeveryfiveyears.

RSPO Smallholder Support Fund (RSSF) : AfundestablishedbytheRSPOtohelpsmall,independentoperatorssecuresustainablepalmoilcertificationwhileminimisingcosts.TheRSSFisfundedfrom10%ofincomegeneratedthroughthetradingofCSPO.

Segregated (SG) : TheSegregatedsupplychainmodelassuresthatRSPOcertifiedoilpalmproductsdeliveredtotheendusercomeonlyfromRSPOcertifiedsources.

Smallholders : Farmersgrowingoilpalmonaplantationoflessthan50hectares.UN-REDD Programme : TheUnitedNationsCollaborativeProgrammeonReducingEmissionsfrom

DeforestationandForestDegradationinDevelopingCountrieswaslaunchedin2008.ItsupportsnationallyledREDD+processesandpromotestheinformedandmeaningfulinvolvementofallstakeholders,includingindigenouspeoplesandotherforest-dependentcommunities,innationalandinternationalREDD+implementation.

GLOSSARY


REFERENCES

Dutch Ministry of Foreign Affairs. (2015, December 7) The Amsterdam Declaration in Support of a Fully Sustainable Palm Oil Supply Chain by 2020. Retrievedfromwww.euandgvc.nl/documents/publications/2015/december/7/declarations-palm-oil

European Parliament. Committee on the Environment, Public Health and Food Safety. (2017, March 20)Report on palm oil and deforestation of forests. Retrieved fromwww.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+REPORT+A8-2017-0066+0+DOC+XML+V0//EN

Máthé, L. (2017, March) Accreditation Services International Report: RSPO Integrity Project: RSPO Compliance assessments in 2015 and 2016 - Summary and conclusions.Retrievedfromwww.rspo.org/about/who-we-are/task-forces/assurance-task-force

RSPO. (2013) Principles and Criteria for the Production of Sustainable Palm Oil. Retrievedfromwww.rspo.org/key-documents/certification/rspo-principles-and-criteria

RSPO. (2014) Roundtable on Sustainable Palm Oil: Impact Report 2014. Retrievedfromwww.rspo.org/key-documents/impact-reports

RSPO. (2015, November 20) RSPO New Planting Procedure.Retrievedfromwww.rspo.org/certification/new-planting-procedures

RSPO. (2015) Roundtable on Sustainable Palm Oil: Impact Update 2015.Retrievedfromwww.rspo.org/key-documents/impact-reports

RSPO. (2016, June 30)Singapore launches the Singapore Alliance for Sustainable Palm Oil.Retrievedfromwww.rspo.org/news-and-events/news/singapore-launches-the-singapore-alliance-for-sustainable-palm-oil

RSPO. (2016, August 1)Creating opportunities for sustainable palm oil in Latin America. Retrievedfromhttp://www.rspo.org/news-and-events/news/creating-opportunities-for-deforestationfree-sustainable-palm-oil-in-latin-america

RSPO. (2016, August 23)World’s single largest independent smallholder group receives RSPO certification.Retrievedfromwww.rspo.org/news-and-events/news/worlds-single-largest-independent-smallholder-group-receives-rspo-certification

RSPO. (2016, October 30)African Sustainable Palm Oil Conference shows momentum for sustainable palm oil on continent.Retrievedfromwww.rspo.org/news-and-events/news/african-sustainable-palm-oil-conference-shows-momentum-for-sustainable-palm-oil-on-continent

RSPO. (2016, October 31)Ecuador chooses Jurisdictional Approach for RSPO certification.Retrievedfromwww.rspo.org/news-and-events/news/ecuador-chooses-jurisdictional-approach-for-rspo-certification

RSPO. (2016, October 31)RSPO Outreach Programme supports Sabah 100% CSPO commitment.Retrievedfromwww.rspo.org/news-and-events/news/rspo-outreach-programme-supports-sabah-100-cspo-commitment

RSPO. (2016, November 29)RSPO-RT14 Conference emphasises equality, human rights and smallholder inclusivity.Retrievedfromwww.rspo.org/news-and-events/news/rspo-rt14-conference-emphasises-equality-human-rights-and-smallholder-inclusivity

RSPO. (2016) Roundtable on Sustainable Palm Oil: Impact Report 2016. Retrievedfromwww.rspo.org/key-documents/impact-reports

RSPO. (2017, February 3)Solidaridad launches major RSPO smallholder certification programme in Côte d’Ivoire.Retrievedfromwww.rspo.org/news-and-events/news/solidaridad-launches-major-rspo-smallholder-certification-programme-in-cote-divoire

RSPO. (2017, March 30)Ecuador takes giant step towards certified sustainable palm oil production.Retrievedfromwww.rspo.org/news-and-events/news/ecuador-takes-giant-step-towards-certified-sustainable-palm-oil-production

RSPO. (2017, March 30)Palm oil and deforestation: closing the gap between commitments and actions.Retrievedfromwww.rspo.org/news-and-events/news/palm-oil-and-deforestation-closing-the-gap-between-commitments-and-actions

RSPO. (2017, March 30)PalmTrace operational since January, market for GreenPalm closing 31 March, 2017.Retrievedfromwww.rspo.org/news-and-events/news/palmtrace-operational-since-january-market-for-greenpalm-closing-31-march-2017


REFERENCES

RSPO. (2017, April 24) Colombian DAABON are world’s first oil palm grower to receive RSPO NEXT certification.Retrievedfromwww.rspo.org/news-and-events/news/colombian-daabon-are-worlds-first-oil-palm-grower-to-receive-rspo-next-certification

RSPO. (2017, May 26)RSPO’s first roadshow in Subang met with success.Retrievedfromwww.rspo.org/news-and-events/news/rspos-first-roadshow-in-subang-met-with-success

RSPO. (2017, June 14) RSPO Certification Systems for Principles & Criteria. Retrieved fromwww.rspo.org/key-documents/certification/rspo-certification-systems

RSPO. (2017, June 14)RSPO Complaints and Appeals Procedures.Retrievedfromhttp://www.rspo.org/news-and-events/announcements/endorsement-of-the-rspo-complaints-and-appeal-procedures-2017

RSPO. (2017, June 14)RSPO Standard Operating Procedure for Standard Setting and Review.Retrievedfromwww.rspo.org/key-documents/certification/standards-setting-process

RSPO. (2017, July 28)RSPO announces Youth Leader in Sustainability Programme winners.Retrievedfromwww.rspo.org/news-and-events/news/rspo-announces-youth-leader-in-sustainability-programme-winners

RSPO. (2017, June 29)European Roundtable 2017 highlights RSPO achievements.Retrievedfromwww.rspo.org/news-and-events/news/european-roundtable-2017-highlights-rspo-achievements

RSPO. (2017, June 29)Promising growth in sales of physical CSPO. Retrieved from www.rspo.org/news-and-events/news/promising-growth-in-sales-of-physical-cspo

RSPO. (2017)Terms of Reference for Members of the RSPO P&C Review Task Force 2017.Retrievedfromwww.rspo.org/principles-and-criteria-review

RSPO. (n.d.)PalmGHG calculator.Retrievedfromwww.rspo.org/certification/palm-ghg-calculator

RSPO. (n.d.) PalmTrace.Retrievedfromwww.rspo.org/palmtrace

RSPO. (n.d.) Principles & Criteria review.Retrievedfromwww.rspo.org/principles-and-criteria-review

RSPO. (n.d.) Smallholders Hub.Retrievedfromwww.rspo.org/smallholders

SEnSOR. (n.d.)Socially and Environmentally Sustainable Oil Palm Research: Programme.Retrievedfromwww.sensorproject.net/programme/

SEnSOR. (n.d.) Socially and Environmentally Sustainable Oil Palm Research: Reports.Retrievedfromwww.sensorproject.net/reports/

The Consumer Goods Forum. (2017, April 12)Implementing and Scaling up the CGF Zero Net Deforestation Commitment.Retrievedfromwww.theconsumergoodsforum.com/blog/966-implementing-and-scaling-up-the-cgf-zero-net-deforestation-commitment

Gan, L.T. & Cai, H. (2017)Calculating GHG Emission in Oil Palm Using PalmGHG. The Planter, Kuala Lumpur, 93 (1092): 167-176 (2017).

United Kingdom Government. Department for Environment, Food & Rural Affairs. (2017, February)UK statement on sustainable palm oil: final progress report. Retrievedfromwww.gov.uk/government/publications/uk-statement-on-sustainable-palm-oil-final-progress-report

United Nations Development Programme. (2015)United Nations New York Declaration on Forests: Declaration and Action Agenda. Retrievedfromwww.undp.org/content/undp/en/home/ourwork/sustainable-development/natural-capital-and-the-environment/biodiversity-and-ecosystems-management/new-york-declaration-on-forests.html

WWF-Malaysia. (2016, August)Sustainable Consumption Talk: WWF-Malaysia Event Report. Retrievedfromhttps://ecoknights.org.my/images/doc/WWF-Malaysia_Report_-_Sustainable_Consumption_Talk_2016.pdf

CONTACT THE RSPO

Wevaluethefeedbackofourstakeholders.Ifyouhavequestionsaboutthisreportorourimpact,pleasecontact:

ImpactsandEvaluationDivisionRoundtableonSustainablePalmOil(RSPO)Secretariat

UnitA-37-1,MenaraUOABangsarNo.5JalanBangsarUtama1

59000KualaLumpur

T:+60323021500E:[email protected]

www.rspo.org

IMPACT U

PDATE 2017

Impacts and Evaluation Division

RSPO SECRETARIAT

UnitA-37-1,MenaraUOABangsarNo.5JalanBangsarUtama159000KualaLumpurMalaysia

T:+60323021500E:[email protected]

TheRSPOisaninternationalnon-profitorganisationformedin2004withtheobjectivetopromotethegrowthanduseofsustainableoilpalmproductsthroughcredibleglobalstandardsandengagementofstkeholders.

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