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Frequently Asked Questions (FAQs)
January 2005
The following list of frequently asked questions &
answers was compiled from a series of stakeholder
workshops conducted by the RSPO Secretariat in Malaysia
and Indonesia as well as during the 2nd Roundtable
Meeting (RT2) on Sustainable Palm Oil in Indonesia
(October 2004). Questions have been grouped into the
following categories:
If you have further questions to be
added to our FAQs section, please send them to us:
rspo@sustainable-palmoil.org
General
Information on the RSPO
Q: What is the Roundtable on Sustainable Palm Oil
(RSPO)?
The RSPO is an association created by organizations
carrying out activities in and around the entire supply
chain for palm oil to promote the growth and use of
sustainable palm oil through cooperation within the
supply chain and open dialogue with its stakeholders.
The RSPO aims to bring together members of the community
working on palm oil to discuss and to cooperate towards
this common goal.
Q: What are the principle tasks of the RSPO?
The RSPO shall undertake the following principle
tasks towards the fulfillment of its objectives:
-
Research and develop definitions
and criteria for sustainable production and use of
palm oil
-
Undertake practical projects
designed to facilitate implementation of sustainable
best practices
-
Develop solutions to practical
problems related to the adoption and verification of
best practices for plantation establishment and
management, procurement, trade and logistics
-
Acquire financial resources from
private and public funds to finance projects under
the auspices of RSPO
-
Communicate RSPO’s work to all
stakeholders and to the broader public
Q: Who was behind the initial
establishment of the RSPO?
The initiative on production and usage of
sustainable palm oil started as an informal cooperation
among Aarhus United UK Ltd, Golden Hope Plantations
Berhad, Migros, Malaysian Palm Oil Association,
Sainsbury’s and Unilever together with WWF. These
organizations constituted themselves as an Organizing
Committee to organize the 1st Roundtable Meeting (RT1)
in August 2003 in Kuala Lumpur.
Further information on the establishment of the
RSPO:
www.sustainable-palmoil.org/background.htm
Q: Why was the RSPO established?
While better managed plantations and oil palm
smallholdings serve as models of sustainable
agriculture, there is serious concern that not all palm
oil is being produced sustainably at present. There are
instances where the development of new oil palm
plantations has led to conversion of forests with high
conservation value and has threatened the rich
biodiversity in these ecosystems. The use of fire for
preparation of land for oil palm planting has also been
reported to contribute to the problem of forest fires
and in many instances, the expansion of oil palm has
also given rise to social conflicts between local
communities and plantation owners.
Based on current trends, the oil palm industry is set to
continue its growth in order to satisfy global demand.
However, it is imperative that the expansion must be
done sustainably. To ensure this happens, it is
necessary to develop a globally acceptable definition of
sustainable palm oil production and use as well as
implement better management practices that comply with
this definition. The RSPO was established to address
these issues and to promote sustainable production and
use of palm oil.
Q: When was the RSPO established?
The RSPO was formally established under Article 60
of the Swiss Civil Code on 8 April 2004 in Zurich,
Switzerland.
Q: What projects are being undertaken by RSPO?
The RSPO will promote projects that will support the
production and use of sustainable palm oil. These
projects are divided into the following broad groups:
-
Plantation management practices –
implementation of better management practices (BMPs)
in existing plantations
-
Development of new plantations –
improvement in land-use planning processes for the
development of new oil palm plantations
-
Responsible investment in oil
palm – improvement of risk analysis/decision-making
tools for banks and investors on palm oil
development
-
Chain of custody – investigation
of different approaches for creating links between
the oil palm plantation and the consumer
An anchor project that is currently
being undertaken is the development of a set of credible
criteria to define sustainable palm oil that is
acceptable to all stakeholders. Thirteen projects were
also endorsed during the 2nd Roundtable Meeting (RT2) on
Sustainable Palm Oil held on 5-6 October 2004 and the
RSPO is currently following up with several project
proponents.
Further information on RSPO projects:
www.sustainable-palmoil.org/projects.htm
Q: Who manages the RSPO?
An Executive Board, comprising 16 members elected by
the RSPO General Assembly for a period of two years,
manages the RSPO. The allocation of the 16 seats on the
Executive Board is as follows: oil palm growers (4),
palm oil processors and/or traders (2), consumer goods
manufacturers (2), retailers (2), banks / investors (2),
environmental / nature conservation NGOs (2) and
social/developmental NGOs (2). Operational management of
RSPO’s activities and the RSPO Secretariat is the
responsibility of the Secretary-General.
Further information on RSPO governance:
www.sustainable-palmoil.org/governance.htm
Q: Where is the RSPO based?
The official seat of the RSPO is in Zurich,
Switzerland. The RSPO Secretariat and the
Secretary-General are currently based in Kuala Lumpur,
Malaysia.
Q: Who can join the RSPO?
RSPO is composed of Ordinary Members in 7 different
categories (i.e. oil palm growers, palm oil processors
and/or traders, consumer goods manufacturers, retailers,
banks / investors, environmental / nature conservation
NGOs and social / developmental NGOs) and Affiliate
Members. Each applicant for Ordinary Membership has to
specify and qualify for one specific sector of
membership. Affiliate Membership is open to
organizations and individuals who are not actively
involved in the 7 categories and have expressed interest
to support the objectives and activities of the RSPO
(e.g. donors, academia, research organizations,
professional associations, government agencies, etc.).
For membership application, please contact the RSPO
Secretariat (rspo@sustainable-palmoil.org).
Further information on RSPO Membership:
www.sustainable-palmoil.org/members.htm
Q: How does the RSPO evaluate an organization’s
application for membership? Are physical audits
conducted to ensure the organization meets the minimum
criteria?
When the RSPO receives applications for Ordinary and
Affiliate (organizations only) Membership, the
applications are posted on
www.sustainable-palmoil.org for two weeks
for public comments. During this period, the RSPO
Secretariat compiles a membership checklist from
publicly-available reports. The Executive Board will
then decide on the application.
As the development of criteria for sustainable palm
oil is ongoing, a physical audit is not carried out to
ensure applicants meet minimum criteria. The RSPO aims
to raise the "sustainability level" of the palm oil
industry; hence it aims to accept a wide range of
organizations as members so long as they commit to the
objectives of the RSPO. A reporting mechanism is also
currently being formulated to ensure all current RSPO
Members are actively contributing to the growth of
sustainable palm oil through the member organizations’
management practices, research activities, and
implementation of relevant projects.
Q: What are the benefits of joining the RSPO?
By joining the RSPO, organizations publicly
communicate their commitment to sustainable palm oil
production and use as well as to raise their reputation
as a pro-active, solution-oriented and socially
responsible organization. Ordinary Members have the
right to vote at the General Assembly and can be elected
to represent the relevant sector in the Executive Board
by the category in question. They can have access to all
materials produced by RSPO for its members, through the
RSPO website and newsletter. Ordinary Members have a say
in the development of criteria for sustainable palm oil
production. They also have the opportunity to network
with other companies in the palm oil value chain that
share their values. By demonstrating their efforts
towards sustainable palm oil, they can thereby improve
their access to markets and investment sources.
Q: Why should NGOs join the RSPO?
The RSPO considers NGOs as representatives of civil
society; hence their input into the RSPO process is
highly valued. NGO members of the RSPO have been
allocated 4 (i.e. 2 social and 2 environmental) out of
16 seats in the RSPO Executive Board. This is to ensure
all stakeholders have fair say in guiding the RSPO and
its activities. Civil society representatives can also
influence the process through active participation in
RSPO projects such as the Development of Principles &
Criteria for Sustainable Palm Oil.
Q: Why are government and academia/professional research
organizations not represented as a category under RSPO
membership (since governments influence land use and
development issues and technology has huge potential to
solve some of the sustainability issues)?
Government agencies and research organizations are
considered important stakeholders. The inclusion of
governments and research organizations in the governance
structure was considered when the Statutes of the RSPO
were drafted but it was agreed that the membership
sectors should cover primary players in the supply chain
of palm oil, bearing in mind that RSPO is a voluntary
initiative. Historically, the RSPO was also set up as a
business initiative, but it is not meant to be an
exclusive process. All stakeholders, including
governments and research organizations can contribute
towards the work and activities of RSPO such as the
development of criteria to define sustainable palm oil.
Issues
Related to Sustainable Palm Oil
Q: Are palm oil growers that join the RSPO still allowed
to convert forests?
Members of the RSPO are expected to implement plans
of actions to promote sustainable palm oil production.
This means that palm oil growers joining the Roundtable
should apply better management practices, including
identifying forest areas of high conservation value
(i.e. HCVFs) before establishing new plantations or
expanding existing ones. High Conservation Value Forests
(HCVFs) must not be converted, and their values must be
either preserved or enhanced.
Further information on HCVF:
www.sustainable-palmoil.org/resources.htm
Q: Consumers are concerned about chemicals or fertilizer
applications especially in plantations. What is being
done to address this concern?
Consumer concerns regarding chemical/fertilizer
applications in plantations and mills are addressed in
RSPO’s Draft Criteria for Sustainable Palm Oil. Specific
criteria include Criterion 3.5 (Pests, diseases, weeds
and invasive introduced species are effectively managed
whilst pesticide use is minimized through using
appropriate Integrated Pest Management (IPM) techniques)
and Criterion 3.6 (Pesticides banned by national
legislation shall not be used and any other herbicides
and pesticides should be used in a way that does not
endanger health or environment). The Criteria Working
Group (CWG) is also guided by documents provided by
Forest Peoples Programme and Sawit Watch, which contains
elements pertaining to pesticide use from the Stockholm
Convention on Persistent Organic Pollutants (2001), FAO
International Code of Conduct on the Distribution and
Use of Pesticides (1985, Revised 2002), and the
Rotterdam Convention on Prior and Informed Consent
Procedure for Certain Hazardous Chemicals and Pesticides
in International Trade (1998).
Further information on the RSPO Criteria:
www.sustainable-palmoil.org/criteria.htm
Q: What can the RSPO do to assist smallholder oil palm
growers on sustainable palm oil production?
The RSPO considers oil palm smallholders as
important stakeholders and should be included in the
process of developing criteria for sustainable palm oil
being undertaken by the Criteria Working Group (CWG).
However, in their current form, many of the draft
criteria would be difficult for smallholders to apply
while some criteria do not fully apply to smallholders.
Solutions, including consideration on developing
separate criteria for smallholders are currently being
sought by the CWG to address this issue.
Further information on the RSPO Criteria:
www.sustainable-palmoil.org/criteria.htm
Criteria for
Sustainable Palm Oil
Q: Would standards set by other sustainability
initiatives including an ISO 14000 family of standards
satisfy the requirements for sustainable palm oil
production?
None of the current initiatives could provide a
credible definition that would be acceptable to all
stakeholders. ISO 14001 standards on environment
management systems could play a part but because it is a
generic system that was developed for all industries, it
is unlikely to satisfy all the requirements for defining
sustainable palm oil. However, the ISO 14001 principles
and methodology would provide useful guidance for
producers to comply with the proposed criteria for
sustainable palm oil.
Q: Who develops the RSPO criteria for sustainable palm
oil?
It is one of the main objectives of the RSPO to
develop criteria that define sustainable palm oil
production through co-operation within the supply chain
and in an open dialogue among stakeholders. A document
entitled Procedures and process for the development of
international principles and criteria for sustainable
palm oil, which describes the Criteria Working Group as
well as the facilitation and public consultation
processes, is available on
www.sustainable-palmoil.org/criteria.htm.
Q: When will the RSPO criteria be ready?
Defining the criteria that constitute standards in a
fair, transparent, multi-stakeholder process is a time
consuming effort; the whole process may take up to 12
months and the criteria can be expected only towards the
end of 2005.
Q: Will adherence to the criteria for sustainable palm
oil reduce overall production levels?
Application of the criteria would not mean reduced
overall production of palm oil. In fact, it could
enhance productivity and thus improve the economic
bottomline. It is an accepted fact the there is a large
gap in productivity between the actual yield and the
genetic potential of the oil palm, in Malaysia,
Indonesia and other producer countries. By applying good
agricultural practices recommended in the technical
component of the criteria, for example, there is scope
for increasing production and at the same time lowering
the pressure for opening-up new land during expansion.
Q: Will the ultimate path of the development of criteria
for sustainable palm oil lead to a certification scheme
similar to that of the Forest Stewardship Council (FSC)
for timber?
This is not currently seen as the ultimate aim,
though some mechanism for verification or measurement
would be needed in future.
Markets for
Sustainable Palm Oil
Q: Where and when is sustainable palm oil available on
the market?
The availability of sustainable palm oil according
to RSPO criteria obviously requires these criteria to be
defined first. However, sustainable palm oil according
to the “Migros criteria” is already available in
commercial quantities.
Further information on the Migros Criteria:
www.sustainable-palmoil.org/resources.htm
Q: What is the demand for sustainable palm oil?
The demand for sustainable palm oil is increasing as
more and more consumers and companies become aware of
sustainability issues related to palm oil production.
For instance, more than 50 organizations have signed up
as members of RSPO and are committed to actively promote
sustainable palm oil.
Q: What is the price premium for sustainable palm oil?
Prices will be determined by the market: wherever
demand exceeds supply, a premium can be expected – as it
is currently the case for palm oil produced according to
the “Migros criteria.” Companies supplying sustainably
produced palm oil can also benefit from improved market
access, appealing to companies that choose to operate
responsibly.
Q: The demand for sustainably produced palm oil is
largely driven by European consumers. About 17% of
global palm oil exports go to Europe. How about major
importers of palm oil like China and India?
China and India, two of the world’s biggest
importers of palm oil, are also exporting their products
that contain palm oil to Europe. They may demand
sustainable palm oil from producer countries in the
future in order to satisfy the requirements of their
customers in Europe.
Soy
Will there also be a Roundtable on Sustainable Soy?
The 1st Roundtable meeting on Sustainable Soy will
take place on 17-18 March 2005, in Foz do Iguaçu /
Brazil. Similar to the Roundtable on Sustainable Palm
Oil (RSPO), this multistakeholder event will provide
stakeholders and interested parties with the opportunity
to jointly develop solutions for sustainable soy
production. The process was initiated by WWF and it is
now managed by an organizing committee that includes,
besides WWF, Coop Switzerland (retailer), Cordaid
(Netherlands, social NGO), Fetraf-Sul / CUT (Brazilian
soy producers’ association), Unilever and A Maggi
(Brazil, soy producer).
Further information on the Roundtable on Sustainable
Soy:
www.sustainablesoy.org
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