The IMRE Journal Volume 8 (1) 2014 2014. TU Bergakademie Freiberg

http://www.wiwi.tu-freiberg.de/~urm/imre/journal/index.htm

The Role of RSPO towards Sustainability in the Palm Oil Industry: A Case Study about Indonesia

Vimukthi Nupearachchi

Technische Universität Bergakademie Freiberg Correspondence: vimukthin@gmail.com

Revised: 02.06.2014 Online Publication Date: 07.07.2014

The IMRE Journal

Abstract

The global demand for palm oil is growing day by day and palm oil companies have

been taking necessary actions to meet this demand. In this paper, a brief overview of

palm oil plantations in Indonesia and their environmental and social impacts is given.

Moreover, the approach of the Roundtable on Sustainable Palm Oil (RSPO) Principles

& Criteria (2007) to provide for a more sustainable solution for palm oil plantations is

analyzed and discussed.

Keywords: RSPO, sustainability, palm oil

Introduction

The history of palm oil runs back several millenniums in the past.

Originally, in many West African countries, palm oil was used as

cooking oil. European merchants occasionally purchased palm oil from

West Africa to use it for cooking, but not for other uses. The demand for

palm oil started to peak with Britain’s industrial revolution, when it

became used as an industrial lubricant.

Palm oil is one of the world’s renowned vegetable oils, and it is

produced from the palm fruit. Palm oil can be extracted from both the

flesh of the fruit as well as the kernel. Palm fruits are more productive

containing nearly 50% extractable oil. Total annual global vegetable oil

production is around 144 million tons, out of which 47 million tons

come from palm oil production (GreenPalm Sustainability).

Section 1 of this paper describes the growth of palm oil plantations in

Indonesia and total palm oil production from 2000 to 2013. Section 2

points out the major environmental and social impacts caused by palm

oil plantations. Section 3 is dedicated to illustrate the RSPO P&C 2007,

the impacts on producing sustainable palm oil, benefits and costs on

palm oil companies, and the three certification processes. In section 4,

identified problems of RSPO P&C 2007 are discussed. Finally, section

5 contains the conclusion.

1. Plantation Area in Indonesia

Palm oil plantations for commercial purposes started in

1911 in North Sumatra and Java. During the 1960s, the

Indonesian Government supported smallholders

(inhabitants who own palm oil plantations) to start

palm plantation projects and expanded its (government)

support to the private sector (private limited liability

palm oil companies) in the 1970s. In 1986, the area of

palm oil plantation accounted for 782,000 ha

(Indonesian Palm Oil Board). In 2006, it reached

almost 6.1 million ha (Sustainable Oil Palm Plantation,

2007) and in 2010, the plantation area was

approximately 8 million ha. For 2020, this area is

supposed to increase to approximately 13 million ha

(Figure 1.1) (Buntoro Rianto et al., 2012).

Figure 1.1: Growth Palm Plantation Area in Indonesia

Source: Palm Oil Plantation – Industry landscape, regulatory and

financial overview, 2012

In 2006, 53% of total palm oil plantations were owned

by the private sector. The government and smallholders

owned 12% and 35% respectively (See Figure 1.2). In

2010, 54% of total palm oil plantations were owned by

the private sector and smallholders increased their

share up to 38%. The remaining area belonged to the

state owned enterprises (Buntoro Rianto et al., 2012).

Figure 1.2: Plantations by sector in 2006

Source: Indonesian Palm Oil Board, “Indonesian Palm Oil in

Numbers” 2007

Palm Oil Production

In 2000, Indonesia produced nearly 5.8 million tons of

palm oil (Indonesian Palm Oil in Numbers).

Smallholders produced 33% of that amount, while the

government and private companies produced 25% and

42% respectively. Figure 1.3 presents the annual palm

oil production of the different sectors from 2000 to

2006.

Figure 1.3: Annual palm oil production by sector from 2000 to

2006

Source: Indonesian Palm Oil Board, “Indonesian Palm Oil in

Numbers”, 2007

It is easy to observe that palm oil production has been

increasing substantially. In 2006, including all sectors

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5.554

7.825

10.200

12.825

00

2.000

4.000

6.000

8.000

10.000

12.000

14.000

2005 2010 2015 2020

in Hectares

12%

35% 53%

Government

Smallholders

Private Sector

-

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

16.000.000

18.000.000

PrivateCompanies

Government

Smallholders

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Vimukthi Nupearachchi

(Private, Government, and Smallholders) it was

approximately 16.6 million tons. Figure 1.4 shows

Indonesian palm oil production from 2007 to 2013. In

2013, production was approximately 31million tons, an

increase by 8.77% compared to 2012 (Index Mundi,

2014).

Figure 1.4: Annual palm oil production from 2007 to 2013

Source: indexmundi, “Indonesian Palm Oil Production by Year”,

2014

Indonesia plans to increase palm oil production up to

40 million tons in 2020 and, as a result, the country

will be the largest palm oil producer in the world. The

growth rate of palm oil production from 2013 to 2020

will be approximately 29.03% (Center for International

Forestry Research).

2. Environmental & Social Impacts

Identifying the environmental and social impacts of

palm oil plantations is very important. In this section,

the most significant environmental and social impacts

are discussed.

Environmental Impacts

Deforestation

It is to be noted that palm oil is considered to be one of

the major causes of environmental damage in

Indonesia. Clearing the land for palm oil plantations

leads to significant environmental problems through

deforestation, habitat and species destruction, pollution

(soil, air, water), and chemical contamination.

The clearing of tropical rainforests is very common in

Indonesia. Tropical rainforests are recognized for their

vast biodiversity and number of endemic species

(Brown & Jacobson, 2005).

Illegal Logging

Forest clearing for palm oil plantation is done through

various illegal activities. For example, in Kalimantan

and Papua, illegally formed timber companies started

palm oil companies only to obtain government licenses

to clear certain forest areas to obtain timber. Those

illegally formed palm oil companies do not actually

proceed to establish any palm oil plantations, but only

engage in illegal logging activities, whilst hiding

behind their government licenses actually released for

the purpose of establishing palm oil plantations. Hence,

the existence of such companies is an indication of

loopholes in governmental procedures for granting to

timber logging license (Clay, 2004).

As shown in Figure 1.1 and confirmed by the

International Finance Cooperation (IFC), palm oil

plantations covered approximately 8 million ha at the

end of 2009. Around 55% of these lands were planted

by clearing tropical forests and the average

deforestation rate of Indonesia is nearly 300,000 ha per

year (Saxon and Roquemore, 2011).

Endangered Species

Deforestation led to a great disaster regarding wildlife,

many species being near extinction. As forests are

cleared and replaced with biological forests, most

ecosystems started to collapse. Several endangered

species have been recorded in the International Union

for Conservation of Nature (IUCN) Red List. Some of

these endangered species caused by forest clearance are

mentioned here (Brown & Jacobson, 2005):

1. Orangutan

2. Sumatran Tiger

3. Clouded Leopard

4. Asian Elephant

5. Sumatran Rhinoceros

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15000

20000

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35000

in MT

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Soil Erosion

Soil erosion occurs due to a number of reasons. One of

the main reasons is leaving the soil exposed after forest

clearance. Another important cause of soil erosion is

the lack of proper management for forest clearance. In

2001, noticeable mismanagement of forest clearance

occurred in Riau Province of Sumatra, Indonesia.

Loggers bulldozed the logged trees straight down the

hills without using contour rows, which led to drainage

of rainwater into the gutters contributing to soil

degradation. The lack of proper road infrastructure

represents another cause for soil erosion. Planting trees

in rows from top to bottom rather than following

contour plowing or contour bonding techniques, which

represent better ways to reduce erosion. One more

cause of erosion results from planters using slopes of

more than 15 degrees (Clay, 2004).

Air Pollution

Air pollution occurs specially due to forest burning. It

is the most common method of planters for clearing

forests for plantations. Once started, the fire is

uncontrollable and can last for months. The fires

release thick smog with health damages for people

exposed to it and has a direct impact on pollinate. Even

though the government of Indonesia has passed laws

and regulations against forest burning, this procedure is

still being used in some areas (Clay, 2004).

Soil and Water Pollution

Palm Oil Mill Effluent (POME) is a liquid generated

mostly during the extraction, washing, and cleaning

processes. The disposed POME is a brownish hot

liquid with a pH value of 4 or 5. Releasing it directly

into the soil is destroying the vegetation. Disposing

POME into water bodies, which is the cheapest method

available, causes water pollution even though it is not

highly toxic. The solid parts in the POME are called

Palm Oil Mill Sludge (POMS), and contain a very high

nutrient value with a pH value of 8.4. POMS produces

an extremely awful odor and is recognized as a soil and

water pollutant (Rupani et al., 2010). Unsystematic

usage of pesticides and fertilizer directly affect the soil

and water sources.

Climate Change

The clearance of peat lands through burning leads to

significant amounts of CO2 being released into the

atmosphere and contributing to global climate change.

A part of the America’s Climate Change project, which

monitors the climate change around the world, supports

the idea that Hurricanes, Earthquakes, Floods,

Draughts, and other natural disasters occur due to the

climate change (Advancing the Science of Climate

Change, 2010).

Social Impacts

Two significant social impacts have been identified:

land conflicts and cultural issues. The reasons for these

impacts are explained in the next section. In addition, a

number of positive social impacts have been identified

(See Table 2.1).

Land Conflicts

Land conflicts often occur in areas of palm oil

plantations, especially in West Kalimantan with its

indigenous population of Dayak. Nearly 40 million

indigenous people and other rural communities dwell

on forestlands without any formal rights over their own

lands. This lack of formal rights made it easier for

private plantation companies to obtain customary rights

on the lands. In 1998, the Indonesian Legal Aid

Foundation completed research about customary rights

on lands. The Foundation reported that 214,356

households in 14 provinces - approximately 553 cases -

lost 827,351 ha of land to palm oil plantation. The

Foundation also found strong resistance from

indigenous people and other rural communities trying

to stop plantations companies from continuing their

operations. Similarly, the Foundation produced

evidence that companies bribe higher government

officials to subdue conflicts with the indigenous people

(Wakker, 2005).

Such land conflicts also lead to violence. For 2001, the

Consortium for Agrarian Reform, a non-profit

organization, formed in 1994, to support the

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Vimukthi Nupearachchi

environmental conservation and human rights in

Indonesia, also known as Konsorsium Pembaruan

Agraria (KPA), found 261 cases involving kidnapping,

rape, and household destructions related to palm oil

plantations. In 2002, this number had increased to 530

including murders, abductions, household destructions,

and other forms of violence (Wakker, 2005).

Cultural Issues

Most indigenous people in rural areas live from

farming activities, which are part of their culture. They

have deep rooted traditions linked with forests, which

are passed on from generation to generation. Cutting-

down forests reduces the available forested land

leading to insecurity of their lives.

Positive Impacts

Even given these numerous conflicts, palm oil

plantations bring some valuable benefits to companies

and local populations. Many underdeveloped villages,

which are situated far away from the main cities,

benefit from plantations through the construction of

schools, hospitals, and other infrastructure (See Table

2.1).

Table 2.1: Positive Social Impacts of RSPO Certification

Sector Benefits

Education New educational infrastructures

Scholarships for students

Increasing the quality of teaching

and learning activities

New facilities for pre-element

schools

Economy Amplify revenues of communities

New job opportunities

Training programs related to palm

oil plantations and business

Social Infrastructure development of

villages (roads, transportation

facilities

Development of water supplies and

other sanitary facilities

New sports facilities

Boost the unity between

communities through various social

activities such as blood donations

Health Development of clinics and health

care activities

Provision of health education to

villages to increase the awareness to

have a good health

Source: Indonesia Palm Oil Advocacy Team - Indonesian Palm

Oil Board, “Facts of Indonesian Palm Oil”, 2010

3. Roundtable on Sustainable Palm Oil (RSPO)

The demand for palm oil has largely increased within

the past decade for the production of both food and

non-food products. Regarding non-food products, the

production of biofuel is one of the main drivers for the

demand of palm oil

RSPO has as members the Malaysian Palm Oil

Association, conservation organizations (WWF), and

major palm oil users such as Migros and Unilever. The

initial major reason for founding the RSPO was to

overcome strong protests by various nongovernmental

organizations (NGOs) against rain forest destruction

and to meet the increasing global demand for

sustainably produced palm oil. As a result, one

significant principle adopted by RSPO is that palm oil

plantations and palm oil production must not take place

in primary forests or High Conservation Value (HCV)

areas, which are defined as natural habitats with an

outstanding significance (RSPO, 2014). The RSPO

standard contains 8 principles and 39 criteria, which

must be fulfilled by applicants in order to receive

RSPO certification.

RSPO certification is a process to certify produced

palm oil as sustainable palm oil. The certification

process is created to identify if the palm oil companies

and other relevant parties (e.g.: planters, transportation)

meet the RSPO principles and criteria. Currently, there

are three certification processes available to certify

palm oil as sustainable. These three certification

processes are described in Section 3. Once a palm oil

company is certified as sustainable, the particular

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company gains the right to claim its products as RSPO

certified sustainable.

Effects of RSPO

At the outset, reactions by the palm oil industry

towards sustainable palm oil production as promoted

by RSPO were modest, but starting, from 2009, a

noticeable positive change could be observed (World

Wide Fund (WWF) and RSPO). Figure 3.1 shows an

increasing tendency of RSPO membership.

Figure 3.1: Growth of the RSPO Members by Type

Source: rspo.org/en/membership_key_statistics, 2013

Figure 3.2 presents the world Certified Sustainable

Palm Oil (CSPO) supply for 2008-2012. A rapid

increase in CSPO supply worldwide can be observed,

Indonesia alone having supplied 4.06 million tons of

CSPO in 2012.

Figure 3.2: Global RSPO Certified Palm Oil Supply

Source: rspo.org/en/key_statistics, 2013

Why RSPO Certification?

For palm oil production companies, Certified palm oil

is a must in order to meet the RSPO Principles &

Criteria (P&C). The ultimate objective of the RSPO

goal is to ensure that rainforests are not cleared for

palm oil plantations and necessary actions are taken to

mitigate adverse environmental and social impacts

(Seventh Generation, 2012). Since RSPO certification

may improve the reputation of a company, palm oil

growers, investors, manufacturers, and retailers are

given incentives to obtain RSPO certification. By way

of example, Barry Callebaut, a giant in the chocolate

industry, stated its intention to use RSPO certified palm

oil for compounds and fillings in all of its factories in

Europe (Confectionery Production, 2013). Customers

are increasingly requesting end-products manufacturers

using sustainable palm oil to deliver data about mass-

balances, as seen in a quotation by Stevan Retzlaff –

President Global Sourcing and Cocoa of Barry

Callebaut AG: “The demand for food products

produced in a responsible way continues to grow, and

we’re seeing this as well in our compound and fillings

business with an increasing number of customers

requiring sustainable palm oil” (Confectionery

Production, 2013).

Benefits of RSPO Certification

It is important to understand and identify the benefits

which palm oil planters may gain from RSPO

Certification. Market data issued by WWF and RSPO

show that certified palm oil producers delivered a

significant amount of CSPO accounting to 10% and

14% of total world palm oil production in 2011 and

2012 (See Figure 3.3). For 2009, 2010, and 2011

produced CSPO was 1.75 million tons, 2.3 million tons

and 4.89 million tons respectively. Hence, CSPO

production is rapidly increasing and the RSPO expects

to see a real market change with considerable amounts

of CSPO being used in products in 10 to 15 years time

(RSPO, 2013).

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0

200

400

600

800

1000

2004 2005 2006 2007 2008 2009 2010 2011 2012

Ordinary

Affliate

Associate

No. of Memberships

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

2008 2009 2010 2011 2012

in tons Certified Palm OilSupply

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Figure 3.3: Total RSPO Certified Palm Oil in 2012

Source: rspo.org, 2013

RSPO certification increasingly is seen as a

requirement for entering the EU market, which shows

tendencies for traceable RSPO certified palm oil. Other

main palm oil importers, such as India, China and

USA, also show an interest in RSPO certified palm oil

(RSPO, 2013). Therefore, RSPO certification yields a

significant economic benefit for palm oil producers.

Table 3.1 list environmental and social benefits from

RSPO Certification.

Table 3.1: Benefits of RSPO Certification

Environment &

Society

Producers &

Suppliers

Better awareness of

HCV areas

Improved reputation

Decrease in green

house gas emissions by

using degraded lands

and zero burning

Better access to

international markets

Improved waste and

pollution management

system

Better strategies to

enhance the

sustainability of palm

oil production

Wise usage of

pesticides and

chemicals

Increase of the value

of palm oil

Application of

Integrated Pest

Management system to

control pests naturally

Improved Occupational

Health and Safety (OHS)

risk management

Better communication

with local communities

Better communication

with local

communities

Adequate

compensation paid for

particular land

acquisitions

Cost reductions in

social conflicts

Better relationships

with employees

Reduction of annual

costs of pesticides and

herbicides

Skilled labor force

Increase of investors

Source: Levin, 2012

Costs of RSPO Certification

Similar to other certification processes available around

the world, palm oil producers must pay the costs of

RSPO certification. Table 3.2 lists these costs, as

reported by WWF (2012).

Table 3.2: Cos of RSPO Certification

Costs Description

Assessment and

Management of HCV

areas

Costs regarding

identification &

management of HCV

areas within the palm oil

plantation.

Costs for

Environmental Impact

Assessments (EIA) and

Social Impact

Assessments (SIA)

Since EIA is a legal

requirement to fulfill in

Indonesia, it is

considered as a fixed

cost

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14%

86%

RSPO Certified

Palm Oil

Uncertified

Palm Oil

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Costs for segregation Costs regarding

segregation are

considered as variable

costs. Cost calculation

for segregation is only

required, if the palm oil

producer is willing to

produce segregated

CSPO

Regular payments of

license fees Fees paid to obtain

relevant certificates at

the outset and for

updating such as RSPO

certificate, RSPO

membership

Training and

Development programs

for employees and

smallholders

Palm oil producers

should provide necessary

training to employees in

order to mitigate social

and environmental

impacts

Source: Levin, 2012

Certified RSPO – Sustainable or Not?

Palm oil production has a very complex supply chain.

It consists of palm oil planters, palm oil producers,

palm oil processors, traders, and storage tanks, which

are located all over the world. The segregation of

CSPO through the entire supply chain is very

important. RSPO has three certification processes to

certify palm oil as sustainable. The three certification

processes are briefly explained below.

1. Segregation Process

The segregation process ensures that the palm oil end-

user receives only RSPO certified palm oil. This

certified palm oil is not mixed with any other non-

certified palm oil during the palm oil supply chain. One

major requirement for this process is that all units

which belong to the supply chain should be RSPO

certified members. In this way, a segregation of CSPO

throughout the entire supply chain is possible (Figure

3.4). The process is considered to be quite costly in

comparison to other certification processes, since it

requires additional measures to keep CSPO segregated

throughout the entire supply chain.

Figure 3.4: Segregation Process

Source: RSPO Supply Chain Certification Standard, 2011

2. Mass Balance Process

This process allows suppliers to mix non-certified palm

oil with CSPO from different stages of the palm oil

supply chain (Figure 3.5). However, all units belonging

to the palm oil supply chain should be RSPO certified

members. This process allows companies to support

CSPO production and, at the same time, to reduce costs

occurring in the segregation process.

Figure 3.5: Mass Balance Model

Source: RSPO Supply Chain Certification Standard, 2011

3. Book & Claim Process

This process allows palm oil suppliers and retailers to

support the production of sustainable palm oil

financially. Suppliers and retailers can buy sustainable

palm oil certificates from the GreenPalm Certificate

Program, even though suppliers / retailers do not

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produce or buy any CSPO (Figure 3.6). The palm oil

and end-products produced under this process cannot

be claimed as RSPO certified oil/products, since

relevant parties only contribute financially to

sustainable oil production. However, suppliers or

retailers who own certificates of the GreenPalm

Certificate Program, can claim that they have

‘advanced’ sustainable palm oil production.

Figure 3.6: Book & Claim Certification Model

Source: RSPO Supply Chain Certification Standard, 2011

If we compare all above-mentioned certification

processes, only the oil produced by the Segregation

process can be considered as sustainable palm oil. The

other processes, the Mass Balance and the Book &

Claim process, do not yield sustainable palm oil

exclusively, as described above.

4. Identified Problems of RSPO P&C 2007

Even though the RSPO P&C focus on environmental

and social impacts and the avoidance of forest clearing,

some loopholes were identified. Some criteria of the

RSPO are weak, inefficient, and hard to monitor and

audit (e.g. RSPO Criteria 6.7, 6.8, 6.11 – please refer

RSPO P&C 2007, which can be easily downloaded

from the RSPO official website). POAG claims that

reserved HCV areas are not well protected, being still

exposed to the threat of illegal logging (Palm Oil

Action Group, 2013).

According to a survey carried out by RSPO, a majority

of companies, individuals, investors and NGOs (e.g.:

IKEA, OXFAM, Zoological Society of London,

Johnson & Johnson) stated that Criterion 5.2 on HCV

areas should be improved in the sense that well-defined

and clear guidance on how to protect, monitor, and

manage HCV areas should be given. Furthermore,

RSPO should focus more on GHG emissions and the

corresponding Criterion 5.6 on “Pollution and

emissions, GHG” should be updated. In addition,

Criterion 4.6 on “Agrochemicals and pesticides”

should provide for a clear definition of hazardous

pesticides. Furthermore, a clear definition and guidance

related to ‘Corruption’ is strongly requested. Other

identified weak criteria are 2.3 (Land legal rights), 3.1

(Financial viability), 4.4 (Surface and ground water),

6.7 (Child labor), 7.1 (Social and Environmental

impact assessment), and 7.6 (Land acquisition) (RSPO

P&C Overall by Stakeholders, 2012).

RSPO P&C (2007) mitigate the environmental and

social impacts to some degree. For the environmental

appropriateness, RSPO P&C (Principle 4: Use of

appropriate best practices by growers and millers - & 5:

Environmental Responsibility and conservation of

natural resources and biodiversity) attempts to mitigate

adverse impacts through various actions such as

protection of endangered species, reserve HCV areas,

reduction of air, soil, and water pollution, increasing

energy efficiency, and prevention of deforestation and

fire. However, some of the Principles and Criteria

remain weak and need to be updated, such as Criteria

4.4 and 5.2 (HCV and Endangered species), which

should contain more appropriate and clear guidance.

Furthermore, RSPO gives an unclear impression

regarding the use of Paraquat (widely used herbicide),

which is highly toxic to animals and humans. The best

solution to avoid any toxic pollution is to ban the use of

Paraquat completely.

RSPO shows a weak focus on GHG emissions. There

should be a proper procedure to identify the sources

and calculate the carbon emissions in order to cut down

the CO2 emissions into the atmosphere.

Regarding negative social impacts, some criteria need

to be updated. As for Criterion 6.7, child labor is

somewhat allowed in plantations, only for children,

which belong to palm oil growers. Even though

Principle 6 (Responsible consideration of employees

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and of individuals and communities affected by

growers and mills) attempts to provide a safe

environment for pregnant women, monitoring them

seems to be quite hard. Furthermore there should be a

new criterion under principle 6 to answer problems

with migrated workers.

Other criticism refers to the fact that sanctions against

the RSPO members who have breached the P&C are

not strong enough. The highest punishment for a

company breaching P&C consists in the termination of

RSPO membership. After termination, there is still an

opportunity to regain membership as long as the

responsible parties settle down their disputes. After

reviewing the RSPO Principles 4, 5, & 6, which are

focused on environmental and social impact mitigation,

it is quite hard to say that RSPO certified palm oil is

100% sustainable. Identified loopholes of the P&C play

a major role in preventing palm oil to achieve

sustainability in the supply chain. However, it is still a

good starting point to drive the palm oil industry

towards a sustainable approach. The RSPO Task Force

was developed in order to identify the current

drawbacks of the P&C. According to the Task Force,

the RSPO P&C should be reviewed and updated every

5 years. These actions show the RSPO intents to set

positive signs of working towards a more sustainable

palm oil industry in the future.

5. Conclusion

The reason for the rapid increase of palm oil

production in Indonesia as driven by a rapid increase of

the global demand for palm oil is elaborated in a first

part of the beginning of this paper. Negative impacts on

environment and society, such as deforestation, high

carbon emissions, habitat extinction, and violence on

land rights have also increased. Attempts by the

Government of Indonesia to issue national regulations

seem to be weak in their implementation and major

impacts, such as deforestation, high carbon emissions,

habitat extinction, and violence on land rights continue

to occur. As a result, palm oil producers increased their

production as much as possible without considering the

environmental and social impacts they caused.

In order to deal with the damage to the environment

and ecosystems and the social and economic impacts of

increasing palm oil production, the so-called

Roundtable on Sustainable Palm Oil (RSPO) was set

up in 2003 at the global level, with membership along

the entire supply chain. Its goal is to promote “the

growth and use of sustainable palm oil through

cooperation within the supply chain and open dialogue

between its stakeholders”(GreenPalm Sustainability,

2012). The paper describes the certification procedures

created by the RSPO, showing some statistics about

production volumes covers by these certifications. It

also deals with criticism issued by various observers

such as NGOs attempts by the RSPO responsible

bodies to correct for them.

In conclusion, even if RSPO P&C (2007) is not able to

generate a fully sustainable palm oil plantation process,

I personally believe the RSPO P&C constitute the best

available approach towards sustainable palm oil in the

future. The high involvement of NGO’s, palm oil

producers, and governments (Indonesia, Malaysia, EU)

is an indication that new solutions to improve the

RSPO P&C further will be formulated and that more

attention will be given to preserving threatened rain

forests, rare species, and ecosystems. Even so and

taken into account that the RSPO certified area of palm

oil is on the increase, a continuous monitoring of

RSPO’s activities is needed to keep all stages of the

palm oil production process on track and to make sure

that all RSPO certified members are complying with

the RSPO P&C thoroughly. As for now, RSPO P&C

certification may not be the best solution, but

continuous evolvement will ensure a better and reliable

sustainable approach in the future.

References

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Page 12 The Role of RSPO towards Sustainability in the Palm Oil Industry: A Case Study about Indonesia

Vimukthi Nupearachchi