The Roundtable on Sustainable Palm Oil Purpose and Progress Tim Stephenson AarhusKarlshamn UK May 2006
Issues covered.. Increased demand for palm oil Environmental and social implications RSPO organisation RSPO development Progress in developing sustainable palm oil supply and demand
Population Growth 1 billion 1900 6.39 billion 2004 Forecast 10.8 bio in 2050?? Max limit 18 billion? Clear food supply implications
Veg. oil demand growth 2005: 109.2 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%
Source: Oil World
Observations on Current Bio-diesel Trends M illion Tonnes EU-25 B-diesel Production 14 12 10 Target by 2010 is 5.75% 2.25Million MT / Year growth needed for the next 5 years! 8 6 4 2 0 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 Source: EBB, European Biodiesel Board
40000 35000 30000 25000 20000 15000 10000 5000 0 World Palm Oil Production (1000mts) 1985/1986 1986/1987 1987/1988 1988/1989 1989/1990 1990/1991 1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006
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
Forests. A key issue for ENGOs
Social NGO s active too!
l Could NGO s and the palm industry work together to improve things?
The story so far
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
RSPO becomes official.. Registered on 8th April, 2004 in Switzerland Secretariat located in Kuala Lumpur Interim board nominated/ directors registered
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
RT1 Meeting in KL, Malaysia - 2003 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
So what is the RSPO?
.a Partnership Initiative Multistakeholder approach Voluntary, self-organising Transparent Inclusive Action oriented - tangible results Committed to production and use of sustainable palm oil
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
GA 2004 GA 2005 May 2006 OM 45 68 96 AM 11 25 38 Total 56 93 134
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
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.
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
Principles & Criteria Completed in one year, thanks to CWG members and to ProForest Generic Guidance completed in CWG meeting Feb 21-22, 2006
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
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
Implementation programme National Implementation Groups National Interpretation Groups Task Force Smallholders Verification Working Group Supply Chain Project
Task Force Smallholders Translate RSPO Materials Diagnostic surveys of smallholder situation Implementation trials Open consultations Report to RSPO EB Raise funds
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
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
Supply Chain Alternatives Fully traceable, segregated. % in equals % out Book & Claim
Challenges ahead Broaden membership base Maintain momentum Deliver verified sustainable palm oil to the market
Success?? High profile Excellent progress Trans-global cooperation Trans-stakeholder cooperation So far, so good!
RT4 Singapore 22-23 November 2006 Agenda likely to include: Verification process Feedback from pilots Smallholders National interpretation Supply chain
www.rspo.org RSPO