MARKET DEVELOPMENT
A Move in the Right Direction: RSPO
A Move in the Right Direction: RSPO
31/05/2013 (Business Times) - The revised criteria for certified palm oil is a move in the right direction although it may be hard to satisfy every vested interest in the sector, said a senior official with the Roundtable on Sustainable Palm Oil.(RSPO)
Dr Simon Lord, who is the one of the vice presidents of the executive board, said RSPO affiliated growers ‘need to understand the bigger picture’ and realise the benefits of supporting sustainability, publicly.
"Showing support is good for individual brands, its good for the sector, but crucially, its good for consumers around the world.
“People want to know that organisations such as the RSPO are out there protecting the world we live in.” he said, in a statement issued by the RSPO last week.
Lord, who is also group director of sustainability at New Britain Palm Oil Limited, represents the oil palm growers from the Rest of the World (ex- Malaysia and Indonesia).
The organisation has been getting the flak from the oil palm growers from Indonesia which led those who are members of GAPKI (Indonesian Palm Oil Association) to leave the fold and, recently Malaysian oil palm growers have also exhibited disgruntlement towards the RSPO.
There are seven sectors of the palm oil industry represented in the RSPO - palm oil producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors.
According to RSPO, the revised Principles & Criteria (P&C, 2013) received support following its ratification by the organisation’s membership at the recent extraordinary general assembly in Kuala Lumpur.
The growers and consumer goods manufacturers sectors were the two largest sectors represented in the 222 to 6 vote, followed closely by processors & traders, retailers, non-governmental organisations (NGOs) and banks.
According to Edi Suhardi, director of sustainability of PT Agro Harapan Lestari, with 15 per cent of processed palm oil (globally) already sustainable, it is left to the global consumer trends to provide the uptake.
Suhardi, who is also vice president II of the RSPO Executive Board, representing the caucus of Indonesian growers said that a certification scheme’s strength can only grow when industry pulls together and leads by example.
"Once consumers see we’re serious, and that supporting 100 per cent sustainability is environmentally and economically viable, we’ll reach a win-win position,’ he said. "But if we don’t have a unified voice, and a clear message, consumers will simply switch off."
In the case of Thailand, smallholders have already begun to realise the long term benefits of internationally recognised sustainability standards, said John Clendon, who is managing director of Univanich Palm Oil.
Felipe Guerrero, sustainability director of Daabon Group from Colombia described the revised P&C as a ‘game changer’ because the additional criteria mean that growers, manufacturers and suppliers are now subject to greater scrutiny regarding their environmental and social practices.
"What’s fundamentally important about the 2013 revision is that we now have clearer environmental criteria on greenhouse gas emissions and cultivating palm crops on peat, but also socio-political standards on human rights, forced labour and corruption.
“We have a long way to go yet, and arguably the expectations in the Latin American region were higher than the consensus. But I think there have been a lot of misconceptions floating around about how sustainability standards are achieved,” he said, adding that a lot of compromise is needed to get the RSPO membership to vote in favour of a new standard.
Alexandra Booth, manager of palm sustainability at Olam International Ltd, which has oil palm plantations in Africa said:
“The revised P&Cs have ensured that we now have a strong and credible framework for developing robust governance in individual countries.
“It has not been a simple process but the industry has stepped up to the plate and shown that sustainability goals can be advanced together.”
Dr Simon Lord, who is the one of the vice presidents of the executive board, said RSPO affiliated growers ‘need to understand the bigger picture’ and realise the benefits of supporting sustainability, publicly.
"Showing support is good for individual brands, its good for the sector, but crucially, its good for consumers around the world.
“People want to know that organisations such as the RSPO are out there protecting the world we live in.” he said, in a statement issued by the RSPO last week.
Lord, who is also group director of sustainability at New Britain Palm Oil Limited, represents the oil palm growers from the Rest of the World (ex- Malaysia and Indonesia).
The organisation has been getting the flak from the oil palm growers from Indonesia which led those who are members of GAPKI (Indonesian Palm Oil Association) to leave the fold and, recently Malaysian oil palm growers have also exhibited disgruntlement towards the RSPO.
There are seven sectors of the palm oil industry represented in the RSPO - palm oil producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors.
According to RSPO, the revised Principles & Criteria (P&C, 2013) received support following its ratification by the organisation’s membership at the recent extraordinary general assembly in Kuala Lumpur.
The growers and consumer goods manufacturers sectors were the two largest sectors represented in the 222 to 6 vote, followed closely by processors & traders, retailers, non-governmental organisations (NGOs) and banks.
According to Edi Suhardi, director of sustainability of PT Agro Harapan Lestari, with 15 per cent of processed palm oil (globally) already sustainable, it is left to the global consumer trends to provide the uptake.
Suhardi, who is also vice president II of the RSPO Executive Board, representing the caucus of Indonesian growers said that a certification scheme’s strength can only grow when industry pulls together and leads by example.
"Once consumers see we’re serious, and that supporting 100 per cent sustainability is environmentally and economically viable, we’ll reach a win-win position,’ he said. "But if we don’t have a unified voice, and a clear message, consumers will simply switch off."
In the case of Thailand, smallholders have already begun to realise the long term benefits of internationally recognised sustainability standards, said John Clendon, who is managing director of Univanich Palm Oil.
Felipe Guerrero, sustainability director of Daabon Group from Colombia described the revised P&C as a ‘game changer’ because the additional criteria mean that growers, manufacturers and suppliers are now subject to greater scrutiny regarding their environmental and social practices.
"What’s fundamentally important about the 2013 revision is that we now have clearer environmental criteria on greenhouse gas emissions and cultivating palm crops on peat, but also socio-political standards on human rights, forced labour and corruption.
“We have a long way to go yet, and arguably the expectations in the Latin American region were higher than the consensus. But I think there have been a lot of misconceptions floating around about how sustainability standards are achieved,” he said, adding that a lot of compromise is needed to get the RSPO membership to vote in favour of a new standard.
Alexandra Booth, manager of palm sustainability at Olam International Ltd, which has oil palm plantations in Africa said:
“The revised P&Cs have ensured that we now have a strong and credible framework for developing robust governance in individual countries.
“It has not been a simple process but the industry has stepped up to the plate and shown that sustainability goals can be advanced together.”