Certification Standards Information and Policies 128 

Section Content Background

Summary

• Multi-stakeholder not-for-profit supports the RSPO certification standard for sustainable palm oil.

The RSPO was created in 2004, the end of a process commenced by the WWF in 2001, motivated by most of the palm oil being sourced from Malaysia and Indonesia, where it was being grown on land that was previously forest. Deforestation was deemed by the NGO to threaten species including orang-utans, tigers, elephants and rhinos, and displaces local communities that rely on the same forests for food and shelter (WWF, 2019). Informal co-operation emerged from this among companies Aarhus United, Migros and Unilever, the WWF and the Malaysian Palm Oil Association, finally resulting in the Roundtable on Sustainable Palm Oil (RSPO), the multi-stakeholder initiative dedicated to promoting sustainable production of palm oil worldwide (RSPO, 2019).

Market Summary As of the end of 2016, 19% of the palm oil created globally is RSPO-certified, covering:

• 11.46 million megatonnes of Certified Sustainable Palm Oil (CSPO) by volume

• 2.4 million hectares of certified production area • A total membership of 3,583 members in 92 countries

• 73 companies with growers certification, responsible for 306 mills • 2,409 supply chain certificates covering 4,170 facilities.

• 558 trademark licenses in 50 countries Stakeholders within

membership

Oil palm producers; processors and traders; consumer goods manufacturers; Retailers; Banks/investors; Environmental non- governmental organisations (NGOs); Social NGOs.

Vision and Mission •Advance the production, procurement, finance and use of sustainable palm oil products

•Develop, implement, verify, assure and periodically review credible global standards for the entire supply chain of sustainable

129 palm oil

•Monitor and evaluate the economic, environmental and social impacts of the uptake of sustainable palm oil in the market

•Engage and commit all stakeholders throughout the supply chain, including governments and consumers.

Principles The 8 principles are:

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 Millers

7. Responsible Development of New Plantings

8. Commitment To Continual Improvement In Key Areas of Activity

Updates / Revisions process

Principles are reviewed every 5 years, and are reviewed using a consensus mechanism by its membership in the collective, representing all of the membership constituents.

The standards setting process is done following the Standard Operation Procedures for Standards Setting criteria as stipulated by ISEAL (ISEAL, 2017), however ISEAL does not determine content or revisions to the RSPO criteria).

Table 26- SAN/Rainforest Alliance Summary Background

Summary

Coalition of non-profit conservation organizations in America, Africa, Europe and Asia, promoting the environmental and social sustainability of agricultural activities through a certification standard and other customized, credible and innovative solutions for businesses and organizations.

130 nations.

Market Summary • 42 countries, covering 101 different crops

• 1.2million farms, with 76% covering less than 2 hectares • 15% of tea production certified to SA/RAN

• 13.6 of cocoa production certified to SA/RAN • 5.4% of coffee production certified to SA/RAN • 5.6% of bananas certified to SA/RAN

Stakeholder Involvement

RA/SAN has an international standards committee (ISC) representing various people from the different stakeholder areas (SAN, 2017), partner organizations that are primarily NGOs.

NGOs act as ‘proxies’ for local knowledge of impacts and sustainability challenges at grower and community level; are considered locally-known, credible NGOs, recognised at community level, include people from social movements and groups implementing the RA standard.

Stakeholders integrated into the central decision-making process, enables “credible consensus building and encourages democratic, inclusive and transparent discussions”.

Governance General Assembly (GA) - Includes all members of the Sustainable Agriculture Network (SAN). GA meets annually; is responsible for electing the SAN Board of Directors. General Assemblies are held at least once a year. One representative for each member organization attends GA.

Board of Directors (BD) – Elected by the GA from membership; maximum of 12 representatives; approves annual plans, goals and strategies of the organization.

Secretariat - Administer the daily operations of the SAN, facilitate communication, promote cooperation with existing initiatives, coordinate support activities.

Updates / Revisions process

SAN conducted a public consultation in 2014-2016 which resulted in the release of new 2017 SAN Standard.

131 Implementation p.21):

1. Social and Environmental Management System - This principle addresses policies and procedures of the farm management or group administrator to support the implementation of the best management practices indicated in the SAN Standard. Effective farm planning, record-keeping, worker training and managerial commitment to sustainability can all support more robust social and environmental management.

2. Ecosystem Conservation 3. Wildlife Protection 4. Water Conservation

5. Fair Treatment and Good Working Conditions for Workers 6. Occupational Health and Safety

7. Community Relations - This principle requires farms to consider the interests and needs of the local community and manage their operations to minimize negative impacts to the community. It encourages farms to engage in positive ways with the surrounding community through employment opportunities, education and other means.

8. Integrated Crop Management 9. Soil Management & Conservation 10. Integrated Waste Management