SESSION 5:

SUPPLY CHAIN CHALLENGES Chair: Tony Lass (Cadbury Plc)

139

RT6 PROCEEDINGS

1RSPO

Rou

ndta

ble

on S

usta

inab

le P

alm

Oil

RSP

O S

uppl

y C

hain

C

ertif

icat

ion

Syst

ems

Don

Gru

bba,

G

loba

l Sus

tain

abili

ty D

irect

or (I

OI G

roup

), R

SPO

Exe

cutiv

e B

oard

Mem

ber

2

Ove

rvie

w

RSPO

His

tory

Dev

elop

men

t Pro

cess

Inte

nt

4 S

uppl

y C

hain

Opt

ions

Impo

rtant

Item

s fo

r Sup

ply

Cha

in C

ertif

icat

ion

Sys

tem

s (S

CC

S)

Inte

rim A

ppro

val P

roce

dure

Fina

l Rem

arks

3

His

tory

•P

roce

ss b

egan

at t

he s

tart

of 2

006

•Id

eal “

wan

t”:–

a fu

lly tr

acea

ble

segr

egat

ed s

uppl

y ch

ain.

•

Rea

lity:

–

seve

ral o

ptio

ns n

eede

d to

ass

ure

flow

s of

oil

to m

arke

t. •

Sup

ply

chai

ns d

evel

oped

•Tr

ade

and

Trac

eabi

lity

Wor

king

Gro

up

form

ed b

y E

B in

Jan

uary

200

8.

RSPO

4

Dev

elop

men

t•

Ass

ignm

ent

–M

ove

oil t

o m

arke

t in

a se

cure

way

.–

Enab

le p

artic

ipat

ion

of p

rodu

cers

and

use

rs•

Pub

lic p

ostin

g on

RS

PO

site

.•

Firs

t Ver

sion

dev

elop

ed a

nd d

eliv

ered

A

ugus

t 08.

•R

evie

wed

by

two

inde

pend

ent r

evie

wer

s.•

Fina

l doc

umen

t pre

sent

ed to

RS

PO

EB

for

appr

oval

and

dis

tribu

tion.

RSPO

140

RT6 PROCEEDINGS

5

Sup

ply

Cha

in C

ertif

icat

ion

Sys

tem

(S

CC

S)

Inte

nt

•Es

tabl

ish

a cr

edib

le a

nd p

ract

ical

sys

tem

for t

he

trade

of

RS

PO

CS

PO

.•

Doc

umen

t cov

ers

proc

edur

es th

at e

nsur

e:–

All

faci

litie

s in

sup

ply

chai

n co

mpl

y w

ith re

quire

men

ts.

–C

laim

s m

ade

are

true

and

mat

ch s

uppl

y ch

ain

mod

el.

–A

ccre

dita

tion

and

Cer

tific

atio

n bo

dies

com

ply

with

re

leva

nt re

quire

men

ts•

Dev

elop

a s

ecur

e “In

terim

App

rova

l”–

Ena

ble

flow

s of

CS

PO

to th

e m

arke

t whi

le

Cer

tific

atio

n B

odie

s ar

e un

derg

oing

app

rova

l.

RSPO

6

4 S

uppl

y C

hain

Opt

ions

•M

odel

s (A

nnex

2 –

5)

–Id

entit

y P

rese

rved

–Se

greg

atio

n–

Mas

s B

alan

ce (A

dmin

istra

tive)

–Tr

adab

le C

ertif

icat

es•

Inde

pend

ent M

anag

emen

t of M

odel

s–

UTZ

Cer

tifie

d–

Gre

enP

alm

•R

SP

O C

entra

l Dat

abas

e.

RSPO

7

Impo

rtant

Item

s

•C

ertif

icat

ion

Uni

t–

All p

roce

ssin

g fa

cilit

ies

that

are

par

t of s

uppl

y ch

ain.

–Tr

acin

g ap

plie

s un

til p

roce

ssed

into

an

end

prod

uct.

–N

ot re

quire

d fo

r tra

dabl

e ce

rtific

ates

•

Aud

it de

term

ines

…–

Org

aniz

atio

nal,

man

agem

ent a

nd o

pera

tiona

l sy

stem

s, in

clud

ing

docu

men

ted

proc

edur

es,

mus

t mee

t the

inte

nt a

nd re

quire

men

ts o

f R

SP

O S

CC

S.RSPO

8

Impo

rtant

Item

s•

Alln

on c

onfo

rman

ces

are

cons

ider

ed m

ajor

:–

Mus

t com

ply

with

in 3

mon

ths

for f

irst a

udit

–M

ust c

ompl

y w

ithin

30

days

afte

r cer

tific

atio

n.•

If no

n co

nfor

man

ces

are

not c

orre

cted

…–

No

certi

ficat

ion

gran

ted.

•N

on c

onfo

rman

ces

foun

d af

ter c

ertif

icat

ion:

–In

cas

e of

exi

stin

g ce

rtific

atio

n a

susp

ensi

on o

r w

ithdr

awal

will

occ

ur.

–A

“dem

onst

rabl

e br

eakd

own”

in s

yste

ms

resu

lts in

an

imm

edia

te s

uspe

nsio

n.•

Cer

tific

ates

are

val

id fo

r one

yea

r.

RSPO

141

RT6 PROCEEDINGS

9

Impo

rtant

Item

s•

For I

P, S

egre

gatio

n, M

ass

Bal

ance

(adm

in)

–A

ll vo

lum

es a

nd m

ovem

ents

reco

rded

in th

e R

SP

O

Trac

eabi

lity

Sys

tem

.–

All

reas

onab

le a

nd n

eces

sary

mea

sure

s to

ass

ure

100%

seg

rega

tion.

At t

he s

tart

a m

inim

um s

tand

ard

of

95%

phy

sica

l oil

will

be

perm

itted

to e

nabl

e flo

ws

via

Seg

rega

tion

and

IP.

•Fo

r Tra

dabl

e C

ertif

icat

es–

Vol

umes

of c

ertif

icat

es a

war

ded

mat

ched

to v

olum

es

clai

med

in m

arke

t.•

All 4

sys

tem

s re

cord

ed in

the

RS

PO

Cen

tral

Dat

abas

e.RSPO

10

Inte

rim A

ppro

val o

f Sup

ply

Cha

in

•W

hy?

–S

tart

flow

of C

ertif

ied

Sus

tain

able

Pal

m O

il–

App

rova

l of c

ertif

icat

ion

bodi

es.

•W

hat?

–P

roce

dure

for i

nter

im s

elf d

ecla

ratio

n of

com

plia

nce.

•W

ho?

–P

roce

ssin

g Fa

cilit

ies

•H

ow lo

ng–

One

yea

r fro

m s

tart

of d

ocum

ent a

ppro

val.

–A

fter M

US

T ce

rtify

und

er n

orm

al p

roce

dure

s.

RSPO

11

Inte

rim A

ppro

val o

f Sup

ply

Cha

inIm

porta

nt P

oint

s

•M

ust b

e a

mem

ber o

f RS

PO

and

regi

ster

un

der t

he R

SP

O T

race

abili

ty S

yste

m•

Sel

f dec

lara

tion

of c

ompl

ianc

e to

SC

CS

is

mad

e.•

App

rova

l mus

t be

gran

ted

by R

SP

O

–pr

ior t

o sh

ippi

ng a

nd c

laim

s.•

Ver

ifica

tion

of c

ompl

ianc

e:

–au

dits

via

sam

plin

g by

RS

PO

•Li

stin

g to

app

ear o

n R

SP

O s

ite.

RSPO

12

Inte

rim A

ppro

val o

f Sup

ply

Cha

inIm

porta

nt P

oint

s•

Mus

t see

k fu

ll ce

rtific

atio

n un

der R

SP

O

SC

CS

afte

r ter

min

atio

n of

the

inte

rim

perio

d.•

RS

PO

Tra

ceab

ility

sys

tem

follo

win

g m

ovem

ents

.•

Com

plai

nts

and

grie

vanc

e pr

oced

ure

appl

ies.

•R

SP

O m

ay im

med

iate

ly w

ithdr

aw

regi

stra

tion

if in

tent

and

requ

irem

ent o

f R

SP

O S

CC

S a

re n

ot m

et.

RSPO

142

RT6 PROCEEDINGS

13

Fina

l Rem

arks

•H

as b

een

a ve

ry lo

ng a

nd d

etai

led

proc

ess.

–M

any

than

ks to

all

who

con

tribu

ted

time

and

effo

rt.•

SC

CS

will

be

revi

ewed

afte

r 1 y

ear

–R

evie

w o

f pro

cedu

res

to s

treng

then

/cha

nge.

–D

evel

opm

ent o

f det

aile

d tra

inin

g an

d au

dit

guid

ance

from

inte

rim a

ppro

val p

erio

d.•

4 “O

ne P

ager

s”de

velo

ped

for e

asy

refe

renc

e.•

Con

verg

ence

of S

CC

S w

ith C

laim

s.RSPO

14

Than

k Yo

u!

143

RT6 PROCEEDINGS

Mar

ch, 2

008

1

The

UTZ C

ERTIF

IED

Tra

ceab

ility

Sys

tem

for

RSPO

UTZ C

ERTIF

IED

Good I

nsi

de

Bas

Gee

rts,

Glo

bal P

rodu

ct

Man

ager

, Pal

m O

il,

Soy

& B

iofu

els

Nus

a D

ua, B

ali,

Nov

embe

r 19,

200

8

2Th

e W

orld

of U

TZ C

ERTI

FIED

Age

nda

•W

ho is

UTZ

CER

TIFI

ED -

Goo

d In

side

?

•W

hat i

s U

TZ C

ERTI

FIED

’s ro

le in

trac

ing

RSPO

-CS

PO?

•H

ow d

oes

the

UTZ

trac

eabi

lity

syst

emw

ork?

•H

ow d

oes

RSPO

Cen

tral

Dat

abas

elin

k di

ffere

nt o

ptio

ns?

3Th

e W

orld

of U

TZ C

ERTI

FIED

UTZ

CER

TIFI

ED-G

ood

insi

de

•In

depe

nden

tnot

-for-

prof

it fo

unda

tion

•Fo

unde

d in

200

2

•M

ains

trea

msu

stai

nabi

lity

cert

ifica

tion

prog

ram

•La

rges

twor

ld-w

ide

in s

usta

inab

le c

offe

e

•Ex

pand

ing

activ

ities

in o

ther

con

sum

able

s &

bul

k

agri-

com

mod

ities

, lik

e pa

lm o

il, c

ocoa

& te

a

4Th

e W

orld

of U

TZ C

ERTI

FIED

Prog

ram

mem

bers

and

par

tner

s(c

offe

e, c

ocoa

, tea

, pal

m o

il)

144

RT6 PROCEEDINGS

5Th

e W

orld

of U

TZ C

ERTI

FIED

RSPO

’sas

sign

men

t to

UTZ

1.D

evel

op &

man

age

Trac

eabi

lity

Syst

em

•M

ass

Bala

nce

•Se

greg

atio

n

•Id

entit

y Pr

eser

ved

(IP)

2.D

evel

op a

nd m

anag

e Ce

ntra

l Dat

abas

eto

pre

vent

dou

ble

selli

ng b

etw

een

thes

e tr

adin

g sy

stem

s an

d th

e Ce

rtifi

cate

trad

ing

plat

form

(Boo

k &

Cla

im)

6Th

e W

orld

of U

TZ C

ERTI

FIED

Trac

eabi

lity

is …

…th

e as

sura

nce

that

cer

tifie

d pr

oduc

ts

orig

inat

e fr

om a

cer

tifie

d or

igin

Whe

re d

oes

my

prod

uct c

ome

from

..?

7Th

e W

orld

of U

TZ C

ERTI

FIED

4 RS

PO s

uppl

y ch

ain

mod

els

•Ide

ntity

Pre

serv

ed

•Seg

rega

tion

•Mas

s Ba

lanc

e

•Boo

k &

cla

im

•Supply Chain Certification •Link with certified product•Communication & Claims

8Th

e W

orld

of U

TZ C

ERTI

FIED

Code

deve

lopm

ent

Cert

ifica

tion

pr

oces

s

Prod

ucer

sup

port

Mar

ket c

reat

ion:

labe

l

Acc

epta

nce

Crea

tion

Prog

ram

man

agem

ent a

nd a

dmin

istr

atio

n

Trac

eabi

lity

syst

em

Supp

ly c

hain

Cert

ifica

tion

Cert

ifica

tion

Trac

eabi

lity

+

Core

ele

men

ts o

f a

sust

aina

bilit

y pr

ogra

m

145

RT6 PROCEEDINGS

9Th

e W

orld

of U

TZ C

ERTI

FIED

Doc

umen

t: RS

PO S

uppl

y Ch

ain

Cert

ifica

tion

Syst

ems

Dow

nloa

dabl

e fro

m:

http

://w

ww

.rsp

o.or

g/

Fina

l ver

sion

,

Oct

ober

200

8

10Th

e W

orld

of U

TZ C

ERTI

FIED

Supp

ly C

hain

Cer

tific

atio

n

CoC

Supp

ly C

hain

Cer

tific

atio

n

CoC

Supp

ly C

hain

Cer

tific

atio

n

CoC

Supp

ly C

hain

Cer

tific

atio

n

CoC

Trac

eabi

lity

expl

aine

d

Syst

em

Port

of

Ship

men

tPo

rt o

f A

rriv

alEn

d pr

oduc

t m

anuf

actu

rer

+ Su

pply

Cha

in

Cert

ifica

tion

requ

irem

ents

Mill

+ s

uppl

y ba

se

Un

it o

f C

ert

ific

ati

on

11Th

e W

orld

of U

TZ C

ERTI

FIED

Unit o

f Cer

tifica

tion

Mill

Port

of

ship

men

tRef

iner

yEnd-p

roduct

m

anufa

cture

rPort

of

arr

ival

Ship

ping

Ann

ounc

emen

tSh

ippi

ngA

nnou

ncem

ent

Sale

s R

ecor

dSa

les

Rec

ord

0-12

3-45

-6-7

890-

123-

45-6

-789

9-87

6-54

-3-2

109-

876-

54-3

-210

Ship

ping

Con

firm

atio

nSh

ippi

ngC

onfir

mat

ion

9-87

6-54

-3-2

109-

876-

54-3

-210

SASA

1-99

9-22

-8-3

331-

999-

22-8

-333

Red

eem

Red

eem

Trac

eabi

lity

num

ber

0-12

3-45

-789

Trac

eabi

lity

num

ber

0-12

3-45

-789

UTZ

Tra

ceab

ility

Sys

tem

12Th

e W

orld

of U

TZ C

ERTI

FIED

Usi

ng th

e U

TZ tr

acea

bilit

y sy

stem

Who Sh

ippe

rs a

nd re

ceiv

ers

of R

SPO

cer

tifie

d pa

lm o

il–

Incl

udin

g:m

ill, p

roce

ssin

g fa

cilit

y, e

nd-p

rodu

ct m

anuf

actu

rer

–Ex

clud

ing:

serv

ice

prov

ider

, sub

cont

ract

or

Wha

t

–Bu

yer

–Se

ller c

ontr

act n

umbe

r–

Type

of p

rodu

ct s

old

(e.g

. CPO

, PKO

, der

ivat

ive)

–Vo

lum

e ce

rtifi

ed p

rodu

ct s

old

–Tr

ansp

ort d

etai

ls (e

.g. t

rans

port

ID, B

L da

te, B

L nu

mbe

r)

Regi

ster

:

Whe

nU

pon

mom

ent o

f shi

ppin

g (1

) and

rece

ivin

g (2

)

End

Prod

uct m

.Re

finerSy

stem

12

146

RT6 PROCEEDINGS

13Th

e W

orld

of U

TZ C

ERTI

FIED

Stai

rcas

e to

mai

nstr

eam

trad

e

Book

& C

laim

Mas

s Ba

lanc

e

Segr

egat

ion

Iden

tity

Pre

serv

ed

Mai

nstr

eam

su

stai

nabl

e tr

ade

Step

-wis

e pr

agm

atic

app

roac

h:•

Clos

e to

cur

rent

bus

ines

s pr

actic

es•

Fast

sta

rt o

f the

pro

gram

•Lo

w c

ost

•A

dded

val

ue; d

iffer

entia

ted

clai

m•

Invo

lvem

ent o

f all

acto

rs

Larg

e su

pply

& d

eman

dEn

cour

age

up s

calin

g

14Th

e W

orld

of U

TZ C

ERTI

FIED

Cent

ral D

atab

ase

Chec

k &

dat

a tr

ansf

er

Book

& C

laim

sys

tem

Chec

k &

dat

a tr

ansf

er

Trac

eabi

lity

syst

em

Regi

stra

tion

&M

anag

emen

t

Aud

it re

sult

&ce

rtifi

ed v

olum

e

Cert

ifica

tion

Bodi

es

Cent

ral D

atab

ase

expl

aine

d

•Mem

ber i

nfor

mat

ion

•Cer

tific

ate

info

rmat

ion

•Pre

vent

dou

ble

selli

ng

15Th

e W

orld

of U

TZ C

ERTI

FIED

16Th

e W

orld

of U

TZ C

ERTI

FIED

147

RT6 PROCEEDINGS

17Th

e W

orld

of U

TZ C

ERTI

FIED

18Th

e W

orld

of U

TZ C

ERTI

FIED

19Th

e W

orld

of U

TZ C

ERTI

FIED

20Th

e W

orld

of U

TZ C

ERTI

FIED

Sum

mar

y:

How

can

YO

U s

tart

trad

ing

CSPO

?St

ep 1

Get

Reg

iste

red

•Re

gist

er w

ith R

SPO

U

sing

the

syst

em is

for R

SPO

-mem

bers

only

; rel

evan

t

mem

bers

will

aut

omat

ical

ly b

e gi

ven

acce

ss to

UTZ

Tra

ceab

ility

Sys

tem

.

Not

e: S

ubsi

diar

ies o

f mem

bers

nee

d to

be

regi

ster

ed in

divi

dual

ly.

Step

2G

et C

erti

fied

•Be

com

e ce

rtifi

ed a

gain

st R

SPO

Sup

ply

Chai

n Ce

rtifi

catio

nre

quire

men

ts

(Mill

s ar

e au

tom

atic

ally

cer

tifie

d w

hen

they

are

cer

tifie

d ag

ains

t the

P&

C’s)

Step

3St

art T

radi

ng•

In tr

adin

g RS

PO-C

SPO

eve

ry s

hipp

er a

nd re

ceiv

er o

f the

oil

regi

ster

s sh

ippi

ng

tran

sact

ions

in U

TZ tr

acea

bilit

y sy

stem

on

ship

ping

and

rece

ivin

g

148

RT6 PROCEEDINGS

21Th

e W

orld

of U

TZ C

ERTI

FIED

UTZ

CE

RTI

FIE

D

The

Wor

ld o

f UTZ

CER

TIFI

ED

Bas

Gee

rts

–G

loba

l Pro

duct

Man

ager

Pal

m O

il, S

oy &

Bio

fuel

s E:

bas

.gee

rts@

utzc

ertif

ied.

org

P: +

31 2

0 53

0639

0

Dow

nloa

d ou

r Tra

ceab

ility

Sys

tem

Gui

de

ww

w.u

tzce

rtifi

ed.o

rg/p

alm

oil

orvi

sit u

s he

re a

t Boo

th 2

149

RT6 PROCEEDINGS

1

The

Gre

enPa

lm

Prog

ram

me

RT6

Nov

embe

r 08

Bob

Nor

man

Gen

eral

Man

ager

Gre

enPa

lm L

td

2

Sup

ply

Cha

in O

ptio

ns

•R

SP

O h

as p

rovi

ded

4 ch

oice

s

–Id

entit

y P

rese

rved

–Se

greg

ated

–Ad

min

. Mas

s B

alan

ce–

Book

and

Cla

im

3

Sup

ply

Cha

in O

ptio

ns

4

His

tory

of G

reen

Pal

m

•A

AK

firs

t pro

pose

d “B

ook

and

Cla

im”2

003

•E

xclu

sive

end

orse

men

t Ja

n. 2

007

•W

orki

ng s

yste

m d

emon

stra

ted

RT5

200

7

•Fi

rst c

ertif

icat

es tr

aded

Sep

t. 20

08

150

RT6 PROCEEDINGS

5

Wha

t is

Gre

enP

alm

?

•G

reen

Pal

m is

a b

usin

ess

mod

el th

at w

ill

–se

rve

the

MAI

NS

TRE

AM

indu

stry

–en

cour

age

ALL

pro

duce

rs to

impr

ove

–be

com

mer

cial

ly v

iabl

e fo

r buy

ers

–m

eet t

he o

bjec

tive

of a

chie

ving

impr

ovem

ents

in

cou

ntry

of o

rigin

6

Gre

enP

alm

ove

rvie

w

•C

ertif

ied

prod

ucer

s of

fer c

ertif

icat

es fo

r sal

e•

Buy

ers

bid

for c

ertif

icat

es

•B

uyer

can

mak

e C

SP

O c

laim

•P

hysi

cal o

il re

mai

ns u

nseg

rega

ted!

•P

hysi

cal o

il pr

ice

is m

ains

tream

pric

e!!

7

Gre

enP

alm

Ove

rvie

w

•P

hysi

cal o

il re

mai

ns u

nseg

rega

ted!

–N

o ad

ditio

nal h

eatin

g co

sts

•D

urin

g sh

ippi

ng

•D

urin

g pr

oces

sing

–N

o pr

oduc

tion

loss

es•

Line

flus

hes

•D

owng

rade

pro

duct

•P

hysi

cal o

il pr

ice

is m

ains

tream

pric

e!!

CO

IIle

vels

no

t inc

reas

ed

No

hidd

en

prem

ium

s

8

How

doe

s it

wor

k in

pr

actic

e?

151

RT6 PROCEEDINGS

9

Gre

enP

alm

•W

eb-b

ased

trad

ing

plat

form

•B

ecom

e a

mem

ber

•S

elec

t per

sona

l use

rnam

e an

d pa

ssw

ord

•A

ll co

mm

unic

atio

ns e

lect

roni

c–

Bid/

Offe

r con

firm

atio

ns–

Mat

ch c

onfir

mat

ion

–In

voic

es

10

Gre

enP

alm

11

How

doe

s G

reen

Pal

m w

ork?

•C

ertif

ied

prod

ucer

regi

ster

s vo

lum

e fo

r sal

e in

Gre

enP

alm

sys

tem

.•

1ton

ne c

rude

CS

PO

= 1

Gre

enP

alm

ce

rtific

ate

Pro

duce

rpl

aces

an

offe

r

12

How

doe

s G

reen

Pal

m w

ork?

•E

nd u

ser c

alcu

late

s its

oil

palm

co

nsum

ptio

n •

Der

ivat

es 1

for 1

Pla

ce b

idco

verin

gvo

lum

e

152

RT6 PROCEEDINGS

13

Der

ivat

ives

•C

onsu

mpt

ion

calc

ulat

ion

is s

impl

ified

•1t

onne

Ref

ined

Ste

arin

=•

1ton

ne R

efin

ed O

lein

=•

1ton

ne R

efin

ed P

alm

Oil

•M

any

end

prod

ucts

use

der

ivat

ives

14

How

doe

s G

reen

Pal

m w

ork?

•B

ids

and

Offe

rs o

n th

e m

arke

t scr

een

•S

yste

m a

utom

atic

ally

mat

ches

.

15

How

doe

s G

reen

Pal

m w

ork?

•P

rodu

cer r

ecei

ves

full

valu

e of

cer

tific

ate

–Se

lls p

hysi

cal o

il in

to it

s us

ual m

arke

t–

At m

ains

tream

pric

e

16

How

doe

s G

reen

Pal

m w

ork?

•E

nd u

ser r

edee

ms

certi

ficat

e–

Has

righ

t to

mak

e a

sust

aina

ble

clai

m–

Buys

phy

sica

l oil

from

pre

ferr

ed s

uppl

ier

–At

mai

nstre

am p

rice

“Sup

ports

the

prod

uctio

n of

RS

PO

C

SP

O”

153

RT6 PROCEEDINGS

17

Che

ck &

dat

a tra

nsfe

r

Aud

it re

sult

&

cert

ified

vo

lum

e

Cer

tific

atio

n B

odie

s

Rob

ust S

yste

m

RSPO

Cen

tral

Dat

a B

ase

IP /

Segr

egat

ion

/A

dmin

Mas

s B

alan

ce

Cer

tific

ate

trad

ing

(boo

k &

cla

im)

Che

ck &

dat

a tra

nsfe

r

No

doub

le

coun

ting

18

Rob

ust S

yste

m•

Pro

duce

r reg

iste

red

volu

mes

are

pos

ted

on

publ

ic a

rea

of G

reen

Palm

’s w

ebsi

te

Fully

Tran

spar

ent

19

Rob

ust S

yste

m•

Bef

ore

mak

ing

a cl

aim

Gre

enP

alm

ce

rtific

ates

mus

t be

Red

eem

ed.

•C

ertif

icat

es a

re re

mov

ed fr

om th

e sy

stem

They

can

no

t be

reso

ld

20

Rob

ust S

yste

m•

The

num

ber o

f red

eem

ed c

ertif

icat

es b

y an

en

d us

er a

re p

oste

d on

the

publ

ic a

rea

of

Gre

enP

alm

’s w

ebsi

te

Fully

Tran

spar

ent

154

RT6 PROCEEDINGS

21

Gre

enP

alm

Cla

ims

•E

nd p

rodu

ct m

anuf

actu

rer

–“T

his

prod

uct/b

rand

/com

pany

sup

ports

the

prod

uctio

n of

RS

PO

Cer

tifie

d S

usta

inab

le P

alm

O

il”•

Ret

aile

r–

Mus

t obt

ain

writ

ten

conf

irmat

ion

from

m

anuf

actu

rer

•G

uide

lines

on

web

site

22

Sys

tem

Enh

ance

men

ts

•M

ulti

prod

uct t

radi

ng Palm

Ker

nel O

il

23

Off-

mar

ket T

radi

ng

•P

rodu

cer a

nd E

nd U

ser a

gree

Yea

r /

Vol

ume

/ Pric

e di

rect

ly•

Det

ails

sen

t to

Gre

enP

alm

•G

reen

Pal

m v

erifi

es•

Dat

a up

load

ed b

y G

reen

Pal

m•

Gre

enP

alm

rule

s / p

roto

cols

app

ly•

Why

?–

Supp

lem

enta

ry d

ata

–G

HG

–Sp

ecifi

c tra

de a

gree

men

ts24

Live

Mar

ket •

Mar

ket o

n ho

mep

age

•Fi

rst m

atch

m

ade

3 S

epte

mbe

r

•In

tera

ctiv

e

155

RT6 PROCEEDINGS

25

Gre

enP

alm

in O

pera

tion

•H

enke

l•F

ull r

ange

of

det

erge

nt

prod

ucts

•Ger

man

/ Fr

ench

m

arke

ts

26

Gre

enP

alm

Stre

ngth

s

•S

uppo

rts A

LL p

rodu

cers

–Bi

g / S

mal

l–

Expo

rters

/ N

on-e

xpor

ters

–Sm

allh

olde

rs•

Sup

ports

ALL

end

con

sum

ers

–Bi

g / S

mal

l–

Der

ivat

ive

user

s–

Anyo

ne w

ho w

ants

to m

ake

a si

gnifi

cant

di

ffere

nce

27

Why

use

Gre

enP

alm

?

•E

nviro

nmen

tal f

ootp

rint i

s un

affe

cted

–Al

l phy

sica

l sup

ply

chai

ns a

re c

ompl

ex–

Mill

–R

efin

er–

Man

ufac

ture

r•

Fully

tran

spar

ent

•A

fford

able

dur

ing

“cre

dit c

runc

h”

28

RSPO

Rou

ndta

ble

on S

usta

inab

le P

alm

Oil

Mak

ing

a di

ffere

nce…

……

..

..tog

ethe

r with

…

ww

w.g

reen

palm

.org

Vis

it us

at B

ooth

No.

1

156

RT6 PROCEEDINGS

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

1

Com

munic

ati

on &

Cla

ims

ww

w.r

spo.

org

Nie

nke

Pek

Mem

ber

of

Com

munic

ati

ons

& C

laim

s W

ork

ing G

roup

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

2

“Cut

ting

dow

n le

sstr

ees

fora

pac

keto

f but

ter”

Com

mun

icat

ion

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

3

“Cut

ting

dow

n le

sstr

ees

fora

pac

keto

f but

ter”

Com

mun

icat

ion

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

4

“Cut

ting

dow

n le

sstr

ees

fora

pac

keto

f but

ter”

Com

mun

icat

ion

157

RT6 PROCEEDINGS

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

5

“Cut

ting

dow

n le

sstr

ees

fora

pac

keto

f but

ter”

Com

mun

icat

ion:

Why

?H

ow?

Wha

t?

Com

mun

icat

ion

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

6

Why

is c

omm

unic

atio

nso

impo

rtan

t?

RSPO

& C

omm

unic

atio

n

Ensu

res

that

all R

SPO

sta

keho

lder

sar

e w

elli

nfor

med

Expl

ains

wha

tpla

yers

can

do to

intr

oduc

eRS

PO c

ertif

ied

palm

oil

onth

e m

arke

t

Add

ress

esco

ncer

ns o

fNG

Os

& c

onsu

mer

s

Hig

hlig

hts

good

prac

tices

of th

e in

dust

ry

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

7

Who

is in

volv

ed?

RSPO

Com

mun

icat

ions

Dir

ecto

r in

KL

Com

mun

icat

ions

Exp

ert i

n Eu

rope

–Sh

ort t

erm

: Sch

utte

laar

& P

artn

ers

–Lo

ng te

rm: t

o be

appo

inte

d

Com

mun

icat

ion

& C

laim

s W

orki

ngG

roup

–Pr

oces

sors

, end

pro

duct

man

ufac

ture

rs, r

etai

lers

, NG

Os

RSPO

& C

omm

unic

atio

nR

SPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

8

Com

mun

icat

ion

pack

age:

–Ke

ym

essa

ges

–Fr

eque

ntly

aske

dqu

estio

ns

–Fa

ctsh

eets

–RS

PO g

ener

alPo

wer

Poi

ntD

ocum

ents

are

avai

labl

eon

RSPO

web

site

Pres

sEv

ent:

arr

ival

of fi

rsts

hipm

ent

RSPO

& C

omm

unic

atio

n

158

RT6 PROCEEDINGS

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

9

Fact

she

ets:

gen

eral

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

10

Fact

she

ets:

gen

eral

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

11

Fact

she

ets:

gen

eral

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

12

Fact

she

ets:

gen

eral

159

RT6 PROCEEDINGS

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

13

Fact

she

ets:

gen

eral

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

14

Fact

she

ets:

tech

nica

l

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

15

RSPO

Pre

ss E

vent

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

16

'ozo

nefr

iend

ly'.

Clai

ms

160

RT6 PROCEEDINGS

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

17

Gui

delin

es a

re d

esig

ned

to e

nsur

e th

at c

omm

unic

atio

n:–

Is c

lear

, tru

e an

d un

ders

tand

able

–Su

ppor

ts th

e de

velo

pmen

t tow

ards

a s

usta

inab

le p

alm

su

pply

cha

in

On-

pack

, abo

ut-p

rodu

ct &

cor

pora

te le

vel

Use

of R

SPO

logo

Clai

ms,

and

sto

ry-t

ellin

g pe

rsu

pply

cha

in m

odel

RSPO

gui

delin

es o

n Co

mm

unic

atio

n &

Cla

ims

for

prod

ucer

s an

d us

ers

of R

SPO

cer

tifie

d pa

lm o

il

Clai

ms

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

18

-

Clai

m fo

r Se

greg

atio

n &

Iden

tity

Pres

erve

d :

“...

cont

ains

RSP

O-c

ertif

ied

palm

oil”

Stor

y te

lling

:

Refe

renc

e to

invo

lvem

ent o

f the

ent

ire

supp

ly c

hain

Iden

tity

Pres

erve

d on

ly:

Refe

renc

e to

a s

peci

fic o

il m

ill

Prod

uct C

laim

s

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

19

Clai

m fo

r M

ass

Bala

nce

& B

ook

and

Clai

m:

“...

supp

orts

the

prod

uctio

n of

RS

PO-c

ertif

ied

palm

oil”

Stor

y te

lling

:

Mas

s Ba

lanc

e on

ly:

Enco

urag

es th

e in

dust

ry to

set

up

a se

greg

ated

su

pply

cha

in

Prod

uct C

laim

sR

SPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

20

40%

pal

m o

il: S

egre

gatio

nop

tion

60%

pal

m s

tear

in: B

ook

& c

laim

ce

rtifi

cate

s

“Thi

spr

oduc

t sup

port

s th

e pr

oduc

tion

of R

SPO

-cer

tifie

d pa

lm o

il”

“Thi

spr

oduc

t con

tain

s 40

% o

f RSP

O-c

ertif

ied

palm

oil”

Mix

ed C

laim

s

2 op

tions

:

Mos

t str

ict s

uppl

y ch

ain

mec

hani

sm in

clud

ing

%

Abo

ut th

e le

ast s

tric

t sup

ply

chai

n m

echa

nism

(p

ortio

ns c

an b

e ad

ded

toge

ther

)

161

RT6 PROCEEDINGS

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

21

Non

-cer

tifie

dm

embe

rs:

–W

e ar

e a

mem

bero

f RSP

O

Cert

ified

mem

bers

:–

We

are

a m

embe

rof R

SPO

–W

e ha

ve c

ompl

eted

RSPO

cer

tific

atio

nof

x%

(or

all)

of o

urpr

oduc

tion

capa

city

Clai

ms

for

Proc

esso

rs

To b

eap

prov

edby

the

RS

PO

Exe

cutiv

eB

oard

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

22

RSPO

hel

psyo

uror

gani

satio

nco

nvey

the

RSPO

m

essa

ge:

–Pr

ess

Even

ts

–Co

mm

unic

atio

npa

ckag

e

–RS

PO G

uide

lines

onCo

mm

unic

atio

n&

Cla

ims

for

user

san

d pr

oces

sors

Ava

ilabl

e at

the

dow

nloa

d ce

ntre

on

the

RSPO

web

site

Conc

lusi

on

RSPO

Roun

dtab

le o

n Su

stai

nabl

e Pa

lm O

il

23

Than

kYo

u

Nie

nke

Pek

Mem

ber

of

Com

munic

ati

ons

& C

laim

s W

ork

ing G

roup

“RSP

O G

uide

lines

onCo

mm

unic

atio

n&

Cla

ims”

avai

labl

eon

line

at w

ww

.rsp

o.or

g

162

RT6 PROCEEDINGS

Q & A SESSION 5

Tina Tuominen (Neste Oil Corporation): 1) Has GHG Working Group considered the tool / mechanism to collect and handle the GHG data, e.g., throughout traceability systems (UTZ)? (To Bas Geerts) Answer: The immediate mandate of the GHG Working Group is the related criteria in the P&C. GHG data throughout the traceability system may be considered at a later date. 2) Is there a plan to include such by-products / derivatives like stearin to the traceability system (UTZ)? If so, is the certificate 1 = 1 than by volume, i.e. 1 CPO = 1 stearin certified. (To General) Answer: Yes. The certificate will depend on industry averages for derivatives. 3) Why are the claims allowed for both MB and BC the same? Referring to UTZ’s presentation, Mass Balance is more advanced than Book and Claim. (To General) Answer: Technically, yes, but because there is no segregation in either case, only a limited claim can be allowed. Norman Jiwan (Sawit Watch): For the consumer, are you aware that the palm oil consumed is not sustainable? What are you going to do about this? Answer: With time and greater availability of certified sustainable palm oil (CSPO), more of it will be used. Yohannes Samosir (IOPRI): 1) Can the certificate be sold directly to buyers without the Greenpalm chain? (To Bob Norman / Nienke Pek) 2) The words for claiming in packages of end products are too long, especially for little / small products. (To General) Answer (both questions): The exact wording could be varied without altering the claim. Norman Jiwan (Sawit Watch): Has RSPO thought beyond a company’s wish to be certified? There are still conflicts occurring. How will RSPO respond to these conflicts? (To General)

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Answer: RSPO is a voluntary organization, and it can only adjudicate between its members willing for the process. Adrian Suharto (Asian Agri): 1) Will RSPO, through its Communications Director, address negative campaigns against RSPO? (To General) Answer: Yes. 2) Can we communicate with the Director as a RSPO member? Answer: Yes. 3) Will RSPO be launching an advertising campaign in Europe and other countries for sustainable PO? Answer: Yes, but promotion rather than advertising. Yohannes Samosir (IOPRI): Would RSPO undertake market / demand research in Europe on CSPO? We need data on the volume and price that the end users in Europe is willing to pay as CSPO (To General) Answer: RSPO does not have the resources for it although it appears a nice thing to do. Therefore, it will continue to depend on market feed-back. Robert Cheong (TUV Rhineland Malaysia): 1) Security of the system in the supply chain? Any consideration for using ISO26000 on the guidance? (To General) Answer: The ISO standards are rather generic. Therefore, RSPO prefers to develop its own based on the ISO standards. 2) Language of communication

a) Authenticity of translation. b) Which will be the common

languages?. (To General) Answer: The main languages will be English, Bahasa Indonesia / Malaysia, Spanish, Portugese and French – to cover the areas where substantial oil palm is grown. Chew Jit Seng (Asiatic Development Bhd.): What are the benefits for producers that both UTZ and GreenPalm can offer (to encourage producers)? This has been discussed previously during the development of UTZ and GreenPalm. Can you please elaborate further? (To Bas Geerts and Bob Norman)

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Answer: A trading platform for CSPO on which it may fetch a premium. John Aglionby (Financial Times): Please give more details on the costs involved in the certification process for everyone involved? (To General) Answer: Initially, the costs would be large but they would be quickly redeemed. It is estimated that producers would incur 5-10% higher cost, depending on their sustainability baseline. The economies of scale will then kick in with larger volumes of CSPO shipped. The cost of the trading schemes in CSPO is US$4/tonne, of which US$1 goes to RSPO. Jan Kees Vis (Unilever): Smallholders should be given the opportunity to register their FFB volumes. (To General) Answer: The proposed Smallholder Group Crtification Scheme will take on board FFB certification as well.

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