The Roundtable on Sustainable Palm Oil. Purpose and Progress. Tim Stephenson AarhusKarlshamn UK. May 2006
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1 The Roundtable on Sustainable Palm Oil Purpose and Progress Tim Stephenson AarhusKarlshamn UK May 2006
2 Issues covered.. Increased demand for palm oil Environmental and social implications RSPO organisation RSPO development Progress in developing sustainable palm oil supply and demand
3 Population Growth 1 billion billion 2004 Forecast 10.8 bio in 2050?? Max limit 18 billion? Clear food supply implications
4 Veg. oil demand growth 2005: Mn T Sunflower 9% Coconut 5% 1991/2: 58.8 Mn T Sunflower 14% Palm 20% Coconut 3% Soya 31% Palm 30% Soya 28% Palm Kernel 3% Rape 16% Cotton 8% Groundnut 6% Palm Kernel 3% Cotton Rape 5% 15% Groundnut 4%
5 Source: Oil World
6 Observations on Current Bio-diesel Trends M illion Tonnes EU-25 B-diesel Production Target by 2010 is 5.75% 2.25Million MT / Year growth needed for the next 5 years! Source: EBB, European Biodiesel Board
7 World Palm Oil Production (1000mts) 1985/ / / / / / / / / / / / / / / / / / / / /2006
8 Immediate conclusions: Rapidly increasing demand for veg. oil as both food and, latterly as fuel Palm s proportionate increase is even faster Great! But increased social and environmental impact on producing countries up to 10m hectares required
9 Forests. A key issue for ENGOs
10 Social NGO s active too!
11 l Could NGO s and the palm industry work together to improve things?
12 The story so far
13 Business initiative by The beginning.. Aarhus United, Golden Hope, MPOA, Migros, Sainsbury, Unilever and WWF. First meeting in London, Sept 2002 Organising Committee formed on Dec 2002 RT1 held in Kuala Lumpur in 2003
14 RSPO becomes official.. Registered on 8th April, 2004 in Switzerland Secretariat located in Kuala Lumpur Interim board nominated/ directors registered
15 RSPO Founding Members Unilever NV WWF Migros Aarhus United ) now merged into Karlshamns ) AarhusKarlshamn Golden Hope MPOA IOI Group The Body Shop Pacific Rim Palm Oil
16 RT1 Meeting in KL, Malaysia Statement of Intent RT2 Meeting in Jakarta, Indonesia 2004 Focus on action RT3 Meeting in Singapore, 2005 Principals & Critera launched 300 from 28 countries. 60 from NGO s
17 So what is the RSPO?
18 .a Partnership Initiative Multistakeholder approach Voluntary, self-organising Transparent Inclusive Action oriented - tangible results Committed to production and use of sustainable palm oil
19 Membership 96 ordinary members organised in 7 sectors Oil palm growers (27) Palm oil processors or traders (32) Consumer goods manufacturers (14) Retailers (9) Banks and investors (4) Environmental/nature conservation NGOs (6) Social/developmental NGOs (4) Fee: 2000 per year
20 GA 2004 GA 2005 May 2006 OM AM Total
21 Unilever (President) WWF Switz.(VP) MPOA (VP) GAPKI (VP) Fedepalma (VP) FELDA HSBC Cadburys Executive Board Migros The Body Shop WWF Indon. Oxfam Sawit Watch PT MM AarhusKarlshamn
22 RSPO Mission (draft) RSPO advances the production, procurement and use of sustainable oil palm products, through the development, implementation and verification of credible, global standards, and the engagement of stakeholders along the supply chain.
23 Tasks of RSPO Develop criteria for sustainable palm. Implement sustainable best practices. Develop solutions for implementation problems throughout the supply chain. Help raise funds for RSPO supported projects. Communicate the work of the RSPO
24 Principles & Criteria Completed in one year, thanks to CWG members and to ProForest Generic Guidance completed in CWG meeting Feb 21-22, 2006
25 Principles and Criteria 1: Commitment to transparency 2: Compliance with applicable laws and regulations 3: Commitment to long-term economic and financial viability 4: Use of appropriate best practices by growers and millers 5: Environmental responsibility and conservation of natural resources and biodiversity 6: Responsible consideration of employees and of individuals and communities affected by growers and mills 7: Responsible development of new plantings 8: Commitment to continuous improvement in key areas of activity
26 Implementation 17 Growers volunteered Self assessment against P&Cs Informs national interpretation Focus on the most difficult elements of the P&Cs Shared learning Develop cost-benefit analysis of implementation of P&Cs Include yield improvement
27 Implementation programme National Implementation Groups National Interpretation Groups Task Force Smallholders Verification Working Group Supply Chain Project
28 Task Force Smallholders Translate RSPO Materials Diagnostic surveys of smallholder situation Implementation trials Open consultations Report to RSPO EB Raise funds
29 Verification Working Group ProForest facilitates Look at all elements of certification: Standard Checklist for auditors Accreditation of auditors Complaints procedure Control of claims Phased approach
30 Supply chain Research requirements for SPO commodity grade (volume, liquidity) Develop strategy to get from where we are now, to commodity market for SPO Highly dependent on individual players
31 Supply Chain Alternatives Fully traceable, segregated. % in equals % out Book & Claim
32 Challenges ahead Broaden membership base Maintain momentum Deliver verified sustainable palm oil to the market
33 Success?? High profile Excellent progress Trans-global cooperation Trans-stakeholder cooperation So far, so good!
34 RT4 Singapore November 2006 Agenda likely to include: Verification process Feedback from pilots Smallholders National interpretation Supply chain
35 RSPO
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