Biodiversity Enrichment Commitment for Local and Overseas Plantations

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1 Biodiversity Enrichment Commitment for Local and Overseas Plantations

2 OVERVIEW Palm Oil Industry Palm Oil Issues RSPO P&C Biodiversity Conservation in Oil Palm Certification as Conservation Tool

3 What is Palm Oil? What is palm oil Palm Oil... World s top selling vegetable oil A highly versatile vegetable oil Used in many food and non-food products Rapidly growing market share Produced in tropical countries More than 1 million workers More than 3 million smallholders Important in socioeconomic growth in the 3rd world

4 OIL YIELD Source: Oil World 2007

5 WHERE DOES OIL PALM GROW? High Biodiversity

6 WHERE DOES OIL PALM GROW? Areas with significant levels of poverty

7 Social Issues Land Grabs..

8 ENVIRONMENTAL ISSUES

9 MODIS satellite image from June 16, 2013 shows haze pollution over Malaysia and Indonesia Source: straits time, Inquirer News& Bloomberg

10 Environmental Concerns Related to Oil Palm Plantings Deforestation for oil palm in Pulau Bruit and Matu Daro, Dec 2008 Source: Malaysia Palm Oil---green gold or green wash, FOE Landuse changes

11 Forest Reserve Connectivity Wildlife cannot cross Forest Reserve Forest Reserve Elephants & Orang Utans cannot cross

12 Over Planted Oil Palm Environmental Concerns on Oil Palm Planting

13 Planting on sensitive areas or unique ecosystem

14 Biodiversity loss

15 FINDING SOLUTIONS Oil Palm Growers Processors & Traders Retailers Consumer Goods Manufacturer RSPO Banks & Investors Social NGO Environment NGO

16 The RSPO was formed in 2004 with the objective of promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders. The seat of the association is in Zurich, Switzerland, while the secretariat is currently based in Kuala Lumpur, with a satellite office in Jakarta. RSPO is a not-for-profit association that unites stakeholders from seven sectors of the palm oil industry - oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation NGOs and social or developmental NGOs - to develop and implement global standards for sustainable palm oil.

17 RSPO REPRESENTS

18 RSPO Membership Voluntary Consensus 18

19 To transform markets to make sustainable palm oil the norm Our vision What we do Develop sustainability standard Operate a certification scheme Trademark / labeling of sustainable products

20 MISSION To advance the production, procurement, finance and use of sustainable palm oil products. To develop, implement, verify, assure and periodically review credible global standards for the entire supply chain of sustainable palm oil. To engage and commit all stakeholders throughout the supply chain, including governments and consumers. To monitor and evaluate the economic, environmental and social impacts of the uptake of sustainable palm oil in the market

21 Membership Oct 2013 Membership Numbers Affiliate 96 Individuals 4 Organisations 92 Associate 368 Organisations 368 Ordinary 858 Banks and Investors 11 Consumer Goods Manufacturers 334 Environmental and Conservation NGOs 26 Oil Palm Growers 120 Palm Oil Processors and Traders 309 Retailers 46 Social and Developmental NGOs 12 Grand Total 1322

22 Germany 13% United Kingdom 10% Malaysia 8% Netherlands 8% Indonesia 8% France 7% United States 6% Belgium 4% Australia 3% Switzerland 2% Thailand 2% Austria 2% Japan 2% India 2% Singapore 2% Spain 2% Italy 2% Sweden 1% China 1% Colombia 1% Brazil 1% Denmark 1% Others 12% MEMBERSHIP BY COUNTRIES

23 SUSTAINABLE PALM OIL Is it possible?

24 CODE OF CONDUCT All members will publicly commit to production, procurement and use of sustainable palm oil. - Annual Communications of Progress

25 RSPO P&C Law & Regulation Economic /Financial Viability Best Agriculture Practice Transparency RSPO Sustainable Palm Oil Environmental Social New Planting Continuous Improvement

26 RSPO CERTIFICATION P&C certification for mills and supply base produced CSPO and CSPK Supply Chain certification Verifies movement of oil through the supply chain Step-by-step documentation Performed by 3rd-party certification bodies More info:

27 Relevant RSPO Criteria for biodiversity management & wildlife conservation. P1 - Compliance to legal requirement P3 Management plan to include allocation for environment management C5.2 HCV assessment and identification of ERT C A comprehensive and participatory independent social and environmental impact assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations. C7.3 Nov 2005 cut off date for new planting. No new plantings on primary forest and HCV area

28 Criterion 5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations. HCV assessment ERT species and habitat identification Controlling any illegal or inappropriate hunting, fishing or collecting activities; and developing responsible measures to resolve human-wildlife conflicts (e.g., incursions by elephants).

29 HCV Toolkit & Guidance Document HCV Toolkit HCV Threat Monitoring System, Info Sheet, ZSL (2012) Palm Oil Procurement: A How-To Guide for the Retail and Services Sectors, ZSL (2012) Practical Handbook for Conserving HCV Species and Habitats within oil palm landscapes, ZSL (2011) Practical Toolkit for identifying and monitoring biodiversity within oil palm landscapes, ZSL (2011) Towards sustainable palm oil: a framework for action Proforest (2011) 3rd Meeting of the RSPO Ad Hoc Working Group on HCV in Indonesia, (2011) Legal Review of RSPO Ad-Hoc working group on HCV,(2010) HCV reporting requirements for RSPO, (2010) Source: HCV Resource Network

30 HCV Guidance Document Mitigating biodiversity impacts of oil palm development, (2010) Palm oil and indigenous peoples in South East Asia, FPP & ILC (2010) Application of HCV in palm oil development in Indonesia, WA (2009). Guidelines on Management and Monitoring of HCVs for Sustainable Palm Oil Production in Indonesia, HCV-RIWG (First Draft, 2009) Meeting the RSPO certification requirements for the management and monitoring of biodiversity and HCVs: Guidance for smallholder groups and schemes, Proforest (2009) Qualifications and experience for HCV assessors: Draft Guidance for RSPO, HCVRN (2009) The World Bank Group Framework and IFC Strategy for Engagement in the Palm Oil Sector, WBG (2010) The conservation of tigers and other wildlife in oil palm plantations in Indonesia, ZSL (2007) Source: HCV Resource Network

31 The HCVs HCV1: Significant concentrations of biodiversity values HCV2: Significant large landscape level forests HCV3: Forest areas that are in or contain rare, threatened or endangered ecosystems HCV4: Forest areas that provide basic services of nature in critical situations (e.g. watershed protection, erosion control) HCV5: Forest areas fundamental to meeting basic needs of local communities HCV6: Forest areas critical to local communities traditional cultural identity

32 HCV Toolkit National HCV Toolkit 1. Bolivia 2. Bulgaria 3. Cameroon 4. Canada 5. Chile 6. China 7. Congo 8. Ecuador 9. Gabon 10. Ghana 11. Indonesia 12. Liberia 13. Malaysia 14. Mozambique 15. Papua New Guinea 16. Poland 17. Romania 18. Russia 19. Slovakia 20. Vietnam

33 Summary of conservation requirements No new plantings on Primary forest & HCV areas Grower must have management plan that include conservation Company must monitor and continuously improve conservation efforts Best Practices include management of ecosystem

34 Management Planning

35 Precautionary approach

36 Preventive measure

37 Avoiding conflicts

38 RSPO Secretariat Kuala Lumpur, Malaysia