Page 18 - sr_2012.pdf

rspo& ispo
roundtable of sustainable palm oil (RSPO)
The RSPO is a Non-Governmental Organisation (NGO) formed by palm oil
producers, end-users and other NGOs. The RSPO represents the highest
environmental and social standards in the palm oil industry. Several
principles and criteria have been established by the RSPO to determine
the sustainability of palm oil production.
For an organisation to be RSPO-certified, its palm oil plantations and mills
must fulfil 39 criteria and 139vi indicators that are grouped under eight
overarching principles covering transparency, compliance to laws and
regulations, long term economic and financial viability, best practices,
environmental and community responsibility, responsible development of
new plantings and continuous improvements.
demand for RSPO-certified palm oil
The demand for sustainable palm oil was originally driven by Europe, with
large food manufacturers like Unilever committing to 100% sustainable palm
oil sources by 2020. India and China, two of the world’s biggest purchasers
of palm oil, are increasingly looking for responsible and sustainable sources
that are not linked to peat land and rainforest destruction. According to an
RSPO report, several major Indian companies have already started sourcing
palm oil from sustainable sources or have expressed similar interest. The
global export of CPO to India and China is equivalent to 3.5 million hectares
of planted area vii.
RSPO supply chain systemviii
Seven million tonnes, or 14%ix of the world's total palm oil production is now
RSPO-certified. Of this, 45.5% comes from Indonesia. IndoAgri’s contribution
accounts for roughly 8% of Indonesia’s total output of sustainable palm oil,
or 248,000 tonnes of Certified Sustainable Palm Oil (CSPO) in 2012, up
from 195,000 tonnes in 2011. We will continue to seek RSPO certification
for all our oil palm plantations.
There are four different RSPO supply chain mechanisms. Each system
comes with its own advantages, requirements and pre-approved consumer
claims. The main difference is in level of traceability of CSPO with “Identity
Preserved” having the highest traceability and the “Book and Claim”
the lowest.
Currently, our CSPO is sold to the market via the “Book and Claim” mechanism
from GreenPalm. The Book and Claim supply chain model provides tradable
certificates of RSPO-certified palm oil to the palm oil supply base, who can
transact these certificates online to interested parties supporting specific
volumes of RSPO-certified palm oil or their derivatives.
indonesia sustainable palm oil (ISPO)x
The ISPO is a government effort led by Indonesia’s Ministry of Agriculture
to support the following national agenda:
- Raise awareness on the importance of sustainable palm oil
production and accelerate the implementation of sustainable
production system and certification.
- Enhance the competitiveness of Indonesian palm oil in world market.
- Reduce GHG emissions from oil palm plantations.
Indofood Agri Resources Ltd.