roundtable on sustainable palm oil rspo - ovid-
TRANSCRIPT
RSPORoundtable on Sustainable Palm Oil
Supply chain & Buying options
RSPO certified Sustainable Palm Oil
RSPO
www.rspo.org
RSPORoundtable on Sustainable Palm Oil
• Code of Conduct: “Every member supports,
promotes and works towards the production,
procurement and use of sustainable palm oil”
Commitment
RSPORoundtable on Sustainable Palm Oil
AgendaAgendaAgendaAgenda
1. Making choices
2. Supply chain options
3. Claims and requirements
4. Conclusion and questions
RSPORoundtable on Sustainable Palm Oil
1. MAKING CHOICES1. MAKING CHOICES1. MAKING CHOICES1. MAKING CHOICES
RSPORoundtable on Sustainable Palm Oil
Intention
Reputation risks
Legal requirements
Costs
Making Choices
RSPORoundtable on Sustainable Palm Oil
2. SUPPLY CHAIN OPTIONS2. SUPPLY CHAIN OPTIONS2. SUPPLY CHAIN OPTIONS2. SUPPLY CHAIN OPTIONS
RSPORoundtable on Sustainable Palm Oil
The palm oil supply chain
Plantations
Refiners &
Blenders Ingredient
Manufacturers
Retailers
Mill
Product
Manufacturers
Transport & Shipping
Unit of certification
Palm oil supply chain
Smallholders
Trade
RSPORoundtable on Sustainable Palm Oil
‘Book and Claim’:
Certified palm oil is not kept apart. Suppliers sell/
consumers buy certificates; claimed volumes are
matched
‘Mass Balance’:
Mixing of sustainable and conventional oil allowed,
if monitored administratively
‘Segregation’:
Mixing of sustainable palm oil batches is allowed
‘Identity preserved’:
Sustainable oil kept apart, traceable to plantation
Supply chain certification
systems
RSPORoundtable on Sustainable Palm Oil
3. CLAIMS AND REQUIREMENTS3. CLAIMS AND REQUIREMENTS3. CLAIMS AND REQUIREMENTS3. CLAIMS AND REQUIREMENTS
RSPORoundtable on Sustainable Palm Oil
Claims
Book & Claim/Mass Balance
“... advances the production of RSPO-
certified sustainable palm oil (equivalent
to ..% of the palm oil utilized)
“... advances the production of RSPO-
certified sustainable palm oil (equivalent
to ..% of the palm oil utilized)
‘Mass Balance’‘Mass Balance’
RSPO-certified
+ conventional
plantations
RSPO-certified
+ conventional
plantations
CertificatesCertificates
RSPO-certified
plantations
RSPO-certified
plantations
‘Book &
Claim’
RSPORoundtable on Sustainable Palm Oil
Claims
Segregated/Identity preserved
“This product contains [only/..%]
RSPO-certified sustainable palm oil”
“This product contains [only/..%]
RSPO-certified sustainable palm oil”
‘Identity
Preserved’
‘Identity
Preserved’
Specific RSPO-
certified
plantation
Specific RSPO-
certified
plantation
‘Segregation’‘Segregation’
Several RSPO-
certified
plantations
Several RSPO-
certified
plantations
RSPORoundtable on Sustainable Palm Oil
Book & Claim
requirements
Buyers need to become GreenPalm member
Certificate purchases through the on line GreenPalm
system
Claimed volumes cannot exceed certificates obtained
RSPORoundtable on Sustainable Palm Oil
Segregation & Mass Balance
requirements
All players in the chain
need to be RSPO member
All processors need to be
RSPO supply chain certified
All deliveries up to final
refinery to be reported in
UTZ online monitoring
system
Mass balance
Segregation
RSPORoundtable on Sustainable Palm Oil
Membership fees
RSPO Membership fee
�Usage > 500 ton -> €2000/year
Regular Membership fee
�Usage < 500 ton -> €100/year
Supply Chain Associate membership
GreenPalm membership
� Free for RSPO members
� $500/year for non-RSPO members
RSPORoundtable on Sustainable Palm Oil
Supply chain certification
Supply chain certification
– Short-term: self-declaration/assessment
• Until March 31st 2010
– Longer term: independent third party certification
• As of April 1st 2010
Ensures ‘secured pipeline’ through check of
volume in/ volume out
If Segregated model is used: ensures segregation
RSPORoundtable on Sustainable Palm Oil
UTZ reporting
Only pre-refinery (ends at refinery at destination)
Each seller that wants to deliver a consignment needs to report to UTZ (number assigned)
Each buyer that wants to confirm his purchase needs to confirm his receipt including the UTZ number
Avoids double counting
RSPORoundtable on Sustainable Palm Oil
Summary key requirements
Certificate trading
– No supply chain organization: end user buys certificate
directly from plantation
– Managed and registered by GreenPalm
Systems with link to the physical flow
(Segregated/IP and Mass Balance):
– RSPO membership
– Supply chain certification
– UTZ system - only until refinery at destination
RSPORoundtable on Sustainable Palm Oil
CONCLUSION & QUESTIONSCONCLUSION & QUESTIONSCONCLUSION & QUESTIONSCONCLUSION & QUESTIONS
RSPORoundtable on Sustainable Palm Oil
Conclusions
RSPO has approved four supply chain mechanisms
All can be used depending on companies choice
In order to work towards the production of
sustainable palm oil, it is important to see demand
materializing
RSPORoundtable on Sustainable Palm Oil
RSPORoundtable on Sustainable Palm Oil
Relevant documents
www.RSPO.org:
Summary Factsheet: RSPO Supply Chain Systems
Overview
RSPO Supply Chain Certification systems
Communications and claims guidelines
www.Greenpalm.org
www.Utzcertified.org
http://www.UTZcertified.org/index.php?pageID=225&showdoc=225_1_21
RSPORoundtable on Sustainable Palm Oil
Thank You!
RSPO Secretariat
Kuala Lumpur, Malaysia
WWW.RSPO.ORG
Telephone : +60 3 6203 5969
Email : [email protected]
RSPO EU Communicatons
RSPORoundtable on Sustainable Palm Oil
Back up slides
RSPORoundtable on Sustainable Palm Oil
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Where we are
Source: Certification Summaries
Supply of RSPO-certified sustainable palm oil growing rapidly
Annual production capacity of certified crude
palm oil & palm kernel oil (in million tonnes)
RSPORoundtable on Sustainable Palm Oil
Where we are
Sales of RSPO-certified sustainable palm oil growing but volatile
RSPORoundtable on Sustainable Palm Oil
RSPO-certified planted area (as of May, 2009)
350.000 hectare, or 60 km x 60 km
Indonesia,
Sumatra
Malaysia,
Sabah
Malaysia,
PeninsulaPapua New
GuineaIndonesia,
Kalimantan
Where we are
Source: Certification Summaries
RSPORoundtable on Sustainable Palm Oil
Where we go from here
By end of 2009:
Capacity to supply 3
million metric tonnes
per year
(±±±± 8% of production)
Ultimately,
RSPO aims to see
all the world’s palm oil
produced in a
sustainable way