Mr. Salahudin Yacoob_rspo

RSPORoundtable on Sustainable Palm Oil

PALMEX THAILAND8-9 September 2011

www.rspo.org

Sustainable Palm oil and the Environment

By: Salahudin Yaacob, Technical Director

on behalf of Darrel Webber, Secretary General of RSPO


CONTENTCONTENTCONTENTCONTENT

Palm oil in global context

Sustainable Palm oil

RSPO

Statistics on Sustainable palm oil

RSPO Trademark


Palm Oil...

A highly versatile vegetable oil

Used in many food and non-food products

Produced in tropical countries

What is palm oil?

Produced in tropical countries

Rapidly growing market share

World’s top selling vegetable oil


Source: FAO statistic 2011

Figures for year 2009

World palm oil production

Area (ha) FFB (mt) CPO (mt)

World 14,921,224 210,326,664 45,083,932

Indonesia 5,000,000 86,000,000 20,550,000

Malaysia 4,002,000 84,842,000 17,564,900

Thailand 510,213 8,162,380 1,310,000


Oil palm: 3.68

Oil Yield

Average yield per year (tonnes of oil per hectare)

Soybean: 0.36

Sunflower: 0.42

Rapeseed: 0.59

Source: Oil World


Palm oil production in year 2010 is about 45.9 million tonnes (33% of

world’s production for oils and fats)

Projection for oil palm production in 2015 is 62-63 million tonnes and

76-77 million tonnes in 2020

Estimate further 12 million hectares of new land to be developed to

satisfy 2020 increment

Palm oil facts

In Malaysia, export value of palm oil and its derivatives = USD16.5 billion

(7.5% of gross national product/ 4th largest contributor to national

economy in 2009)

In Indonesia, palm contributed USD7.9 billion to GNP in 2007

Oil palm is 6-10 times more productive than the competing edible oils

Oil palm contributed more than one third of global vegetable oils

production but only requiring about 5 % of the world’s total area under

vegetable oil crops.


Why go

www.rspo.org

Why go sustainable?


More than 1 million

Why sustainable palm oil?

Millions of people are

dependent on palm oil

More than 1 million

workers

More than 3 million

smallholders

Many more

household members



Environmental issues in oil palm cultivation

Forest, peatland

conversion

Climate change

Biodiversity loss


New way of doing business

Business communities strive towards becoming

good corporate citizen

Multidimensional definition of sustainability


Multidimensional definition of sustainability

through transparency and stakeholder

involvement

Market driven initiatives providing a win win

situation to producer and user


Hence,

www.rspo.org

Hence, the RSPO


• Started in 2003 with 7 members

• Formally established in April 2004

• Multi-stakeholder association

• International non-for-profit association

About the RSPO

• International non-for-profit association

• Palm oil supply chain

• Promotes growth & use of sustainable oil palm

products through global standards

• RSPO Principles and Criteria (P&C)


RSPO will transform markets to make

sustainable palm oil the norm

Vision

sustainable palm oil the norm


What is Sustainable Palm Oil?

RSPO seeks a balance development for the Palm Oil

industry that is Legal, Economically Viable, industry that is Legal, Economically Viable,

Environmentally Appropriate and Socially

Beneficial


Finding the Balance


Transparency

Law & RegulationEconomic /Financial Viability Best Agriculture Practice

RSPO

RSPO P & C

Environmental SocialNew Planting

Continuous Improvement

SustainablePalm Oil


Sustainable Palm Oil

In brief, RSPO certified palm oil originated from

plantation that:

• Management system and its implementation

done on transparent manner

• Planted on land with clear tenureship

• Operation complies with legal requirement

• Proper management plan addressing

economic, social and environment

• Replanting done to ensure sustainable

production




plantation that:

• Best management are practiced at all level of

operation

• Biological control over chemical solution

• Environmental evaluation identifying

biodiversity and HCVs are done and plan for

its management are compiled

• Environmental impacts including GHGs

emission are minimised




plantation that:

• Social impacts are identified and managed

• Management contribute to local communities and

socio-economysocio-economy

• Workers are taken care off

• No conversion of primary forest and HCVs after Nov

2005

• All activities are monitored and improvements are

made

• Sustainable palm oil is traceable throughout the supply

chain


Stakeholder /

www.rspo.org

Stakeholder / Membership representation


Membership Value


Membership – Overall

Ordinary: 498

•Steadily growing on

an annual basis

•Membership allows

non certified

656 members

Affiliate: 95

Supply Chain: 63

non certified

companies to aspire

towards certification

goal


Oil Palm Growers

Palm Oil Producers and/or traders Retailers

Banks &Investors

Our Members

Environmental or Nature Conservation GroupsSocial NGO’s


Just within 3 years since the certification

of sustainable palm oil (CSPO) by the

Roundtable on Sustainable Palm Oil (RSPO),

a multi stakeholder initiative, the industry a multi stakeholder initiative, the industry

reaches a turning point by hitting its first 1

million hectares of certified

production area around the world.


RSPO Certified RSPO Certified RSPO Certified RSPO Certified

1111....03 03 03 03 mil hamil hamil hamil ha

TODATETODATETODATETODATE 26 growers & 26 growers & 26 growers & 26 growers & 121 121 121 121 POMsPOMsPOMsPOMs

4444....96 96 96 96 million million million million mtmtmtmt CSPO CSPO CSPO CSPO

105 companies, 187 SC certificates


PHENOMENAL GROWTH PHENOMENAL GROWTH PHENOMENAL GROWTH PHENOMENAL GROWTH

Year on Year Growth

• 100% from 2009 to 2010

CSPO Production

• In less than 3 years, RSPO CSPO is 8% of PO production

• 5 million metric tonnes of CSPO

• I million hectare of certified production area reached

Market Uptake

• 26% in 2009

• More than doubled to 56% in 2010


Volume of CSPO produced


Our wish by end 2015

15 million mt of CSPO is produced annually

All grower member has at least one unit

certified

The FutureThe FutureThe FutureThe Future

certified

Significant portion produced by

independent smallholders

Demand for CSPO exceed the production


RSPO Trademark

Upstream (Growers) Upstream (Growers)

For on/about-product

communication

Rules for use, communication & licensing under development

NGOs

Consumer Goods Manufacturers

NGOs

Consumer Goods Manufacturers

Downstream (Retailers/

consumers)

Downstream (Retailers/

consumers)

Processors/Traders; Bankers & Investors

Processors/Traders; Bankers & Investors

development

Trademark registration

procedures begun in more than 60

countries

Expected launch for use: July 2011


MALAYSIA TO HOST WORLD’S LARGEST MALAYSIA TO HOST WORLD’S LARGEST

SUSTAINABLE PALM OIL MEETING

9th Annual Roundtable Meeting on Sustainable Palm Oil (RT9)

will be held in Kota Kinabalu, Sabah this year.


TOGETHER FOR SUSTAINABLE PALM OIL

Documents

Mr. Salahudin Yacoob_rspo