RSPORoundtable on Sustainable Palm Oil

Summary of RT5 Results and Next Steps

TEOH Cheng HaiChairman, RT5 Organsing Committee

Outline

INTRODUCTION

RESULTS OF RT5

LOOKING BACK

LOOKING FORWARD

CONCLUSIONRSPO

Oil palm growers36%

Oil palm processors and or/ traders

19%

Others25%

Consumer good manufacturers

4%

Retailers2%

Banks & Investors4%

Social NGOs4%

Environmental NGOs6%

IntroductionWho attended RT5?540 participants from 28 countries

Results of RT5

RSPO

Results of P&C Trial Implementation• 7 of 14 volunteers reported – Principle 1 compliance• Overall, P&C can be implemented with effort• Common threads

– Top management commitment critical (Synergy Drive, PT SMART)– Change in mind set - moving towards TBL approach (journey)– Sustainability departments and committees for SPO >

management system (ISO 14001 etc)– Gap analyses and remedial actions– Training and retraining– Documentation - SOPs

• Challenges– Resistance to change (Comfort zone)– Cost implications– Poor capacity for HCV and Social Impact assessments– Difficulty with independent smallholders crops

Results of RT5

RSPO

Progress of National Interpretation of P&C• Good progress made in NIWGs, albeit slower in

Rest of the World• Industry-driven, multi-stakeholder approach and

consultation, according to RSPO guidelines• National indicators and guidance to be the basis

for certification• Final draft Guidance to meet December 2007

deadline• Formal RSPO presence needed in RoW

Results of RT5

RSPO

Review of RSPO P&C • CWG process; multi-stakeholder. consensus driven• Generic P&C; reviewed every 5 years• CWG Review process

– Call for comments and proposals for revisions for 60 days– Collation of comments/proposals– CWG reconvened in Bogor in October 2007– Broader participation with NIWGs and VWG members– Approved by Executive Board– Endorsement by RSPO membership at GA4

Results of RT5

RSPO

RSPO P&C and Smallholders• Good STF and STF-INA process and results, albeit

slower because of funding constraints• Draft P&C Guidance for smallholders done; considered

by NIWGs• STF’s call for RSPO proactive conflict resolution process• Request for funds and partners• New perspective of complexity of social issues from

Oxfam video • Good presence and participants by smallholders; 70

people attended• Special effort by RT5 oganisers to meet the needs of the

smallholders (eg simultaneous translations, pre-RT5 meetings, open space participants)

Results of RT5

RSPO

Progress of RSPO Projects• Voluntary, stakeholder collaboration in nature,

Working Groups• Focus on

– P&C implementation, testing and NI– RSPO certification and related components– Smallholders – STF and FPIC– Branding, trade mark and communications

• European Communications Workshop, Brussels• Communications and Branding Working Group

• Works in progress

Results of RT5

RSPO

RSPO Certification for SPO• Certification system developed through consultative process, through

Verification WG and public consultation• System approved by Executive Board in June ’07

– Certification standard – RSPO P&C– Accreditation requirements– Certification process

• Strengths– Complete process, multi-stakeholder, delivered on time, benchmark

for commodity-based standard etc • Weaknesses/Constraints

– Lack of auditors capacity, cost of certification, non-inclusion of smallholders, lack of GHG criteria etc

• Contribution by RSPO supply chain sectors

Results of RT5Promoting Certified Sustainable Palm Oil• Consumer and Branding Working Group (CBWG)

– Policy framework for use of CSPO claims– Need for CSPO trademark?– Communications

• Panel Discussion– Stakeholder engagement taken to a higher level – Constructive dialogue; different mandates but common goal– NGOs not anti-palm oil– Call for support of moratorium on development of forest

conversion and peatland use– Credible communications required of NGOs and industry

(advertorial?)

Trade Mechanisms for Palm Oil

Option 1 : Segregation

Option 2 : Controlled mixing

Option 3 : Tradable certificates

Certified palm oil

Non certified palm oil

% certified palm oil

RSPO certificates

RSPO

Results of RT5

RSPO

Meeting Stakeholder Expectations• Why Open Space Technology session?• Topics covered

– Standards and certification process (5)– New land development – Peat & idle land– Social aspects (3, including smallholders views)– Biodiversity (1)– Responsible investments (1)

• Results

Looking Back2003 2004 20062005 2007

RSPO

FORMING

STORMING

NORMING

PERFORMING

“We have reached the stage where we are sleeping on thesame bed but we are havingdifferent dreams”M.R. Chandran - RT1

RSPO Vision:RSPO assures palm oilcontributes to a better worldFeb’ 2006

Looking Forward

RSPO

Meeting ChallengesManaging Expectations - Many stakeholders, many agendasManaging a credible CSPO certification systemUrgent need to get smallholders on the CSPO wagonContinuing NGO criticisms -> EngagementAddressing Climate Change issues – GHG, peatlandsEngaging governments

Looking Forward

RSPO

Meeting ChallengesManaging Expectations - Many stakeholders, many agendasManaging a credible CSPO certification systemUrgent need to get smallholders on the CSPO wagonContinuing NGO criticisms - EngagementAddressing Climate Change issues – GHG, peatlandsEngaging governments

Conclusion

RSPO

RSPO’s RT5 goal:• To deliver the BEST ever RT meeting in

terms of– Process – Contents– Results

• In the spirit of Principle 8, please give us your feedback– Please fill up the FEEDBACK form.

Conclusion

RSPO

An Apology……….

Acknowledgements

RSPO

Terima Kasih (Thank you)• YB Datuk Peter Chin Kah Fui, Minister of Plantation Industries & Commodities, Malaysia• YBhg Dato’ Seri Ahmad Zubir Murshid, Group President/CEO, Synergy Drive Berhad• Session Chairs, Speakers and Authors• Facilitators and Rapporteurs• Exhibitors• Shangri-La Hotel• GroundBreakers• Members of the RT5 Organising Committee• All those who have contributed towards the organisation of RT5

Acknowledgements

RSPO

Thank you!

See you at RT6 in Indonesia in 2008

www.rspo.org