Certification!Standards!and! Deforestation! - Mekon Ecology
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M EK O N
Ecology
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!
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Certification!Standards!and!
Deforestation!
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Analysis!of!Voluntary!Sustainability!Standards!ensuring!
deforestation7free!production!and!trade!in!cocoa,!palm!
oil!and!soy!
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!
Peter!C.!de!Koning,!Daniel!A.!Wiegant!
Support!Unit!of!the!AD!Partnership!
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77!REVISED!VERSION!2017!77!
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!
!
!
!
M EK O N
Ecology
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!
Certification!Standards!and!Deforestation:!
Analysis(of(Voluntary(Sustainability(Standards(ensuring(
deforestation4free(production(and(trade(
in(cocoa,(palm(oil(and(soy((
!
!
!
Peter!C.!de!Koning,!Daniel!A.!Wiegant!
Support!Unit!of!the!Amsterdam!Declarations!Partnership!
Mekon!Ecology!
!
BBB!!REVISED!VERSION!2017!BBB!
!
!
Table of contents
Abbreviations!
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1! Introduction!........................................................................................................................!1!
2! Sustainability!Standards!in!general!.....................................................................................!2!
2.1! Supply!chain!traceability!models!.................................................................................!2!
2.2! State!of!sustainable!markets!.......................................................................................!2!
2.3! Overview!main!Voluntary!Sustainability!Standards!.....................................................!3!
2.4! GovernmentCled!schemes!ISPO!and!MSPO!..................................................................!9!
2.5! Consumer!Goods!Forum!and!FEFAC!..........................................................................!14!
3! The!analysis!.......................................................................................................................!16!
3.1! Relevant!certification!standards!and!deforestationCfree!...........................................!16!
3.2! Cocoa!.........................................................................................................................!19!
3.3! Palm!Oil!......................................................................................................................!21!
3.4! Soy!.............................................................................................................................!23!
4! Concluding!remarks!..........................................................................................................!26!
4.1! General!......................................................................................................................!27!
4.2! Status!relevant!deforestationCfree!voluntary!sustainability!standards!.....................!26!
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Literature!
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Annex:!
A. Certified!areas!cocoa,!palm!oil!and!soy!by!selected!standards.!
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Additional!information!can!be!obtained!by!contacting:!
Peter!de!Koning,!!
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! Abbreviations AAPRESID! Argentine!Association!of!ZeroCTillage!Producers! AD! Amsterdam!Declarations! ADCGroup! Signatory!Countries!of!the!Amsterdam!Declarations! Amaggi!RSS! Amaggi!Responsible!Soy!Standard!! ADM!RSS! Archer!Daniels!MidlandC!Responsible!Soy!Standard!! ADM!SFF! Archer!Daniels!Midland,!Sustainable!Feed!Standard! BFA!SS! Belgian!Feed!Association!Sustainable!Soy! Cargill!Triple!S! Cargill!company!Sustainably!Sourced!and!Supplied! CGF! Consumer!Goods!Forum! CIFOR! Center!for!International!Forestry!Research! CRS!CEFETRA! Certified!Responsible!Soy!by!CEFETRA!company,!the!Netherlands! FEFAC! Federation!of!European!Feed!Manufacturers! FEMAS! Feed!Materials!Assurance!Scheme,!United!Kingdom! FoKSBI! Indonesian!Sustainable!Palm!Oil!Platform.! GMO! Genetically!Modified!Organisms! HCA! High!Carbon!Stock!Areas! HCV(A)! High!Conservation!Value!Areas! IFOAM! International!Federation!of!Organic!Agriculture!Movements! ISCC! International!Sustainability!&!Carbon!Certification! ISO! International!Organisation!for!Standardisation! ISPO! Indonesian!Sustainable!Palm!Oil! MPOCC! Malaysian!Palm!Oil!Certification!Council! MSPO! Malaysian!Sustainable!Palm!Oil! RA! Rainforest!Alliance! RSPO! Roundtable!on!Sustainable!Palm!Oil! RTRS! Roundtable!on!Responsible!Soy! SAN! Sustainable!Agriculture!Network! SDGs! Sustainable!Development!Goals! VSS! Voluntary!Sustainability!Standards! ! 3!
! 1 Introduction! The!Amsterdam!Declarations!(ADs)!on!sustainable!palm!oil!and!on!eliminating!deforestation! from!agricultural!commodity!trade!with!European!countries!are!signed!by!Denmark,!France,! Germany,!Italy,!the!Netherlands,!Norway!and!the!United!Kingdom:!the!‘ADCGroup’.! ! Responsible!management!of!supply!chains,!sustainable!trade!and!jurisdictional!/!landscape! approaches! are! important! cornerstones! in! reaching! sustainable! development,! as! through! global! value! chains! consumer! and! producer! countries! have! a! shared! responsibility! for! sustainable! business! practices.! The! goal! of! the! ADs! is! sustainable1!and! deforestationCfree2! agricultural!commodity!import!by!2020,!thereby!contributing!to!the!climate!change!agenda! and! the! Sustainable! Development! Goals! (SDGs).! Currently,! the! focus! is! mainly! on! cocoa,! palm!oil!and!soy.!Later!commodities!such!as!beef!&!leather,!coffee,!paper!&!pulp!and!rubber! will!be!considered.!The!key!performance!indicator!on!deforestation!would!be!the!number!of! hectares!deforested!in!relation!to!agricultural!commodity!trade!with!the!signatory!countries.! However,!(a)!this!indicator!is!difficult!to!measure!as!deforestation!is!very!much!commodityC sectorCproducer! country! context! dependent;! and! (b)! deforestationCfree! is! also! used! by! the! ADCgroup! as! a! means! to! support! wider! socially,! economically! and! environmentally! sustainable! development.! For! every! commodity,! a! variety! of! certification! standards! exist! that!aim!to!ensure!(aspects!of)!sustainable!development.!! ! A!growing!number!of!companies!that!either!produce!or!trade!agricultural!commodities!are! committed!to!eliminating!deforestation!from!their!supply!chain,!and!at!least!366!companies! have!publicly!reported!their!commitment!to!deforestationCfree!supply!chains!(McCarthy!et! al.,! 2016).! Whether! they! have! committed! individually,! or! by! means! of! alliances! and! initiatives! such! as! the! Consumer! Goods! Forum! (CGF)! and! the! New! York! Declaration! on! Forests,! companies! and! governments! are! now! facing! the! challenge! of! implementing! their! commitments!(TFA!2020,!2016).!Full!certification!is!also!the!primary!means!for!companies!to! demonstrate! their! performance! (FERN,! 2017).! In! addition,! standards! are! very! instrumental! to! involve! companies! in! meeting! global! commitments! on! zeroCdeforestation! (an! issue! on! landscape!level).!! ! The! ADCgroup! is! linked! to! producer! countries! through! the! commodity! supply! chain.! Therefore,! the! main! proxy! indicator! chosen! by! the! ADCgroup! for! measuring! deforestationC free!commodity!trade!with!their!countries!is!“volume'of'certified'commodity'X'imported'into' the' signatory' countries”,! whereby! deforestationCfree! and! standards! are! also! used! as! instruments!to!enhance!sustainable!development,!climate!change!mitigation!and!adaptation! and! address! wider! deforestation! challenges.! The! question! addressed! in! this! report! is:! “Which! Voluntary! Sustainability! Standards! (VSS)! ensure! deforestationCfree! commodity! production!and!trade?”!! ! This!document!provides!an!analysis!of!the!most!relevant!(in!volume)!Voluntary!Sustainability! Standards! (VSS)! based! upon! various! policy! criteria! including! noCdeforestation.! This! report! does! not! compare! one! standard! to! the! other! nor! evaluates! effective! implementation! of! specific! sustainability! standards.! Standards! were! approached! to! check! whether! the! description!and!analysis!were!correct.!! 1 !Sustainable:!As!defined!through!the!Sustainable!Development!Goals!(SDGs).! 2 !Deforestation:!The!conversion!of!forests!or!woodland!savannahs!to!other!land!uses,!or!the!longCterm!reduction! of!tree!canopy!cover!below!the!minimum!10!percent!threshold.!! ! 1!
! 2 Sustainability!Standards!in!general! Basically,! VSS! or! certification! standards! are! voluntary! norms! and! standards! relating! to! environmental,! social,! ethical! and! food! safety! issues,! adopted! by! companies! to! show! the! performance! of! their! organisation! and/or! their! products! on! these! issues.! The! Organic! standard!was!established!in!the!70s.!Sustainability!certification!started!in!the!late!‘80s!with! the! realisation! that! social! and! environmental! legislation! in! countries! was! limited! or! not! enforced.! The! first! VSS! were! developed! to! ensure! a! fair! income! for! the! small! producer,! health!and!food!safety!concerns!or!biodiversity.!! 2.1 Supply!chain!traceability!models! VSS!are!linked!to!specific!commodity!supply!models!to!ensure!traceability!(see!box).!Also!for! deforestation! the! supply! chain! traceability! is! important! because! if! the! physical! product! cannot! be! traced! back! to! its! production! region! the! link! with! deforestation! in! that! same! region!is!not!clear.! ! Box:!!Supply!chain!traceability!models! ! • ‘Identity'preserved’:!Throughout!the!supply!chain!the!physical!product!is!kept!separate!from!the! products!from!other!sources,!even!if!the!latter!were!produced!according!to!the!same!standard.! The!product!can!be!traced!back!to!its!sustainable!(certified)!source.! • ‘Segregated’:!in!this!system,!inputs!from!different!sources!produced!according!to!the!same! sustainability!standard!can!be!aggregated.!The!products!are!strictly!separated!from!nonCcertified! inputs!during!the!whole!supply!chain.!The!result!is!that!end!products!are!guaranteed!to!have!100%! of!the!certified!raw!material.!! • ‘Mass=Balance’:!It!is!not!always!feasible!or!efficient!to!segregate!sustainable!and!nonCsustainable! products,!especially!when!there!is!no!physical!difference.!In!the!MassCBalance!model!certified!and! conventional!products!are!mixed!but!as!they!move!through!the!supply!chain!an!exact!account!is! kept! about! the! volume! ratios.! MassCBalance! guarantees! that! the! amount! of! products! sourced! from!certified!producers!equals!the!amount!of!product!sold!to!consumers!under!this!certification! scheme.! • ‘Area=Mass=Balance’:!The!same!as!the!above!but!for!a!defined!region!(jurisdiction).!This!model!is! currently!under!consideration!and!not!applied!yet.!! • ‘Book=and=Claim’:!If!a!supply!chain!is!not!yet!thoroughly!organised!it!is!not!(yet)!possible!to! segregate!or!carefully!account!for!volumes.!The!BookCandCClaim!system,!the!physical!products!are! mixed!and!traded!as!nonCsustainable.!However,!manufacturers!and!retailers!can!buy! ‘sustainability!certificates’!or!‘credits’!on!a!separate!online!market!from!certified!growers,! crushers!and!independent!smallholders.!The!sustainability!claims!by!brands!and!retailers!is! monitored!and!compared!to!amount!of!certificates!issued!and!traded.! ! 2.2 State!of!sustainable!markets! Sustainability!standards!not!only!address!social!and!environmental!issues!but!also!promote! better! agricultural! practise! aimed! to! enhance! efficiency,! farm! management! and! climate! change!adaptation.!On!the!consumer!side!it!helps!consumerCoriented!companies!to!ensure! themselves!about!the!sustainable!origin!of!the!commodity!and!communicate!on!aspects!of! sustainability! of! their! products.! Standards! provide! companies! along! supply! chain! the! opportunity!to!manage!supply!and!reputational!risks.! ! Demand!for!certified!produce!is!still!growing!and!gaining!ground!on!conventional!produce.! Organic! is! by! far! the! largest! VSS! covering! more! than! 50.9! million! hectares.! In! 2015,! coffee! reached!24%!certified!of!its!global!area,!cocoa!16%,!palm!oil!15%!and!tea!14%!(Lernoud!et!al,! ! 2!
!
2017).! Demand! is! however! highly! concentrated! in! Western! countries.! Producer! countries’!
domestic! market! and! the! huge! consumer! markets! in! China! and! India! are! less! concerned!
about! certification.! For! example,! Fairtrade! retail! sales! in! 2015! were! 79%! in! Europe,! 16%!
North!America,!3%!Oceania,!1%!Asia!and!1%!other!(Lernoud!et!al,!2017).!
!
Figure'1:'Trend'in'hectares'of'selected'certified'commodities.'
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Source:' Lernoud' Julia,' Jason' Potts,' Gregory' Sampson,' Salvador' Garibay,' Matthew' Lynch,'
Vivek' Voora,' Helga' Willer' and' Joseph' Wozniak' (2017),' The' State' of' Sustainable' Markets' –'
Statistics'and'Emerging'Trends'2017.'ITC,'Geneva.''
2.3 Overview!main!Voluntary!Sustainability!Standards!
Voluntary!standards!differ!considerably!in!their!focus,!requirements!and!level!of!detail.!Key!
differences! between! standards! are! the! requirement! for! third! party! verification! and! the!
certification!requirements.!Some!standards!require!full!compliance!with!all!criteria,!whereas!
others! take! a! processCapproach! and! require! compliance! with! ‘critical’! criteria! and/or! a!
certain! %! of! criteria! with! a! plan! to! address! the! nonCcompliance! criteria.! Because! of! the!
diversity!in!and!between!standards!the!ISEAL!Alliance!was!established.!All!multiCstakeholder!
sustainability!standards!can!become!a!member.!They!develop!general!norms,!standards!and!
good! practices! with! the! goal! to! enhance! the! credibility! and! impact! of! standards.! ISEAL!
supports! standards! to! measure! their! performance! by! building! strong! monitoring! and!
evaluation!systems,!and!communicating!(longCterm)!impacts!to!stakeholders.!!
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The! history! and! original! concern! also! determines! their! suitability! in! sufficiently! ensuring!
deforestationCfree!supply!chains.!To!illustrate!the!history,!focus!and!variety!of!certification,!
the! main! standards! on! cocoa,! palm! oil! and! soy! are! described! briefly.! Related! to! palm! oil!
Indonesia! and! Malaysia! are! developing! their! own! government! controlled! mandatory!
standards.!Because!they!are!not!voluntary!they!are!described!in!the!next!paragraph.!
!
The! main! standards! of! cocoa! in! terms! of! volume! are! UTZ! Certified,! Rainforest! Alliance,!
Fairtrade!and!IFOAM!Organic.!The!main!standards!of!palm!oil!in!terms!of!volume!are:!RSPO,!
ISCC,!IFOAM!Organic!and!Rainforest!Alliance.!The!main!standards!of!soy!in!terms!of!volume!
are:! ProTerra,! RTRS,! IFOAM! Organic! and! maybe! also! ISCC! (volume! unknown)! (Potts! et! al.,!
2014).!!
! 3!!
Fairtrade!(17!products!incl.!cocoa)!
The!first!Fairtrade!standard,!Max!Havelaar,!was!launched!in!1988!by!the!Dutch!organisation!
Solidaridad!in!relation!to!coffee.!Fairtrade!International!(ISEAL!member),!founded!in!1997,!is!
administered! by! FLO! International! and! was! designed! to! address! the! power! imbalance! in!
trading!relationships,!unstable!markets!and!injustice!of!conventional!trade.!The!label!is!one!
of!the!largest!worldCwide!(120!countries)!and!visible!on!the!endCproduct.!Fairtrade!is!thus!a!
business!to!consumer!label.!Fairtrade!uses!the!supply!chain!models!of!“Identity!preserved”,!
“Segregated”! and! “Mass! balance”.! Fairtrade! sets! minimum! prices! and! improved! terms! of!
trade!for!farmers!with!the!aim!to!reduce!poverty.!In!addition!to!the!better!price!paid!for!the!
product,! there! is! an! additional! sum! of! money! (Fairtrade! Premium)! that! farmers! receive! to!
use! to! improve! their! social,! economic! and! environmental! conditions,! to! be! decided! on!
democratically! by! producers! within! the! farmers’! organization,! or! by! a! workers’! committee!
on! a! plantation.! There! are! thousands! of! products! that! carry! the! Fairtrade! label.! Currently,!
there! are! 179,000! Fairtrade! cocoa! farmers! in! 20! countries! (but! mainly! in! Côte! d'Ivoire,!
Ghana,! Peru,! the! Dominican! Republic! and! Ecuador).! In! 2013C14! the! produced! volume! was!
70,600!tonnes.3!In!2015,!certified!cocoa!production!covered!570,000!ha!(almost!6%!of!global!
cocoa!area).!
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In!2009,!Fairtrade!International!and!the!World!Fair!Trade!Organization!adopted!the!Charter!
of!Fair!Trade!Principles,!which!are!predominately!social!in!nature.!In!terms!of!environmental!
sustainability,!the!Charter!mentions!“continuous!improvement!of!the!environmental!impact!
of! production! and! trade”.! The! parties! do! so! through! efficient! use! of! raw! materials! from!
sustainable!sources,!reducing!the!use!of!energy!from!nonCrenewable!sources,!and!improving!
waste!management.!The!adoption!of!organic!production!processes!in!agriculture!–!over!time!
and!subject!to!local!conditions!–!is!also!encouraged.!
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IFOAM!International!Federation!of!Organic!Agriculture!Movements!(soy,!palm!oil,!cocoa)!
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IFOAM!is!the!umbrella!organisation!of!800!affiliates!in!117!countries.!The!IFOAM!standard!is!
an! internationally! applicable! organic! standard! that! can! be! used! directly! for! certification.!
IFOAM!was!approached!but!declined!to!provide!feedback!and!asked!to!be!removed!from!the!
analysis!provided!in!chapter!3.!Regarding!deforestation,!IFOAM!Organic!states!that!farming!
areas!installed!on!land!that!has!been!obtained!by!clearing!of!High!Conservation!Value!Areas!
in!the!preceding!5!years!shall!not!be!considered!compliant!with!this!standard.!IFOAM!does!
not!provide!a!cutCoff!date!fixed!in!time!(IFOAM,!2014).!
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International!Sustainability!&!Carbon!Certification!(all!types!of!agricultural,!forestry!and!
other!raw!materials,!incl.!soy!and!palm!oil)!
!
ISCC!was!developed!through!an!open!multiCstakeholder!process!and!is!governed!by!the!ISCC!
association! (ISCC! e.V.).! In! June! 2017,! the! ISCC! association! had! 90! members,! including!
international! associations,! corporations,! research! institutions! and! NGOs! from! around! the!
world.! ISCC! is! an! independent! multiCstakeholder! organisation! that! provides! a! globally!
applicable! certification! system! for! the! sustainability! of! raw! materials! and! products,!
traceability! through! the! supply! chain! and! the! determination! of! greenhouse! gas! emissions!
and! savings.! ISCC! is! a! multiCfeedstock! system! and! covers! agricultural,! forestry! and!
alternative! raw! materials.! Principle! 1! is! about! zero! deforestation! i.e.! protection! of! primary!
3
!https://www.fairtrade.net/products/cocoa.html!
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forests,!protected!areas,!peatC!and!wetlands,!high!carbon!stock!areas,!and!high!biodiversity!
value!areas!(also!ISCC!PLUS!version!3!on!the!production!of!biomass).!
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The! ISCC! certification! system! ensures! the! sustainability! of! raw! materials! and! products! for!
various!markets,!including!bioenergy!(liquid!and!gaseous!biofuels!and!bioliquids),!food,!feed,!
and!chemical/technical!markets.!ISCC!is!using!GRAS!–!Global!Risk!Assessment!Services!as!a!
risk!management!tool!to!assess!land!use!change!and!other!land!related!sustainability!criteria!
and!to!ensure!deforestationCfree!supply!chains.!ISCC!issues!over!14,000!certificates!in!total,!
with!more!than!2,900!active,!by!June!2017!(www.isccCsystem.org,!2017).!
!
ISCC!operates!businessCtoCbusiness!and!uses!“Identity!Preserved”,!“Segregated”,!and!“MassC
Balance”! as! traceability! models! (based! upon! the! Renewable! Energy! Directive).! ISCC! is! the!
one! of! the! main! sustainability! certification! systems! used! for! biofuels! under! the! EU!
Renewable! Energy! Directive! (mainly! palm! oil! used! for! biodiesel).! Cocoa! can! generally! be!
certified!under!ISCC!but!until!now!no!cocoa!was!certified.!
!
ISCC!PLUS!certification!is!a!formal!declaration!of!reduction!of!Green!House!Gasses!(GHG)!and!
consumables.! It! checks! the! sustainable! requirements,! the! traceability! and! mass! balance! of!
all! the! system,! and! it! constitutes! an! added! value! in! order! to! demonstrate! to! clients! the!
sustainability!of!their!products.!
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ISO!–!International!Organisation!for!Standardisation!(cocoa)!
ISO! develops! and! publishes! international! standards! (currently! 21,657)! that! provide!
requirements,!specifications,!guidelines!or!characteristics!to!ensure!that!materials,!products,!
processes! and! services! are! fit! for! their! purpose.! As! such! ISO! is! not! a! specific! sustainability!
standard.!ISO!is!currently!developing!a!standard!on!cocoa.!
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The! ISO! 34101! series! on! Sustainable! and! Traceable! Cocoa! Beans! will! specify! requirements!
for!a!management!system!of!farming!of!cocoa!beans!making!production!more!sustainable.!
The! draft! versions! were! developed! in! a! multiCstakeholder! process. 4 !The! current! draft!
standard! provides! requirements! for! protection! of! biodiversity! conservation! areas,! buffer!
zones! and! wildlife! corridors! in! compliance! with! national! laws! (requirement! 4Ctable! 28).!
Requirement!5Ctable28!states!‘the!organisation!shall!ensure!that!forest!trees!are!not!cut!or!
burned!in!existing!farms!or!when!establishing!new!farms!(forest!trees!higher!than!15m)’!and!
also!that!the!organisation!shall!ensure!that!cutting!trees!and/or!natural!vegetative!cover!is!
avoided! on! lands! not! suitable! for! cocoa! production! (to! ensure! diversification).! This! is!
however!not!an!entry!requirement.!Requirement!3Ctable!29,!demands!that!protection!of!the!
ecosystems!should!be!ensured!that!provide!habitats!for!wildlife!living!on,!or!passing!through!
the!farm.!The!standard!does!not!provide!a!cutCoff!date!for!deforestation.!Regarding!human!
and! Indigenous! rights! ISO! refers! to! the! Universal! Declaration! of! Human! Rights! (1948)! and!
other! conventions,! treaties! and! national! regulatory! or! statutory! requirements! (which!
conventions,!treaties,!etc.!is!unclear).!The!Indigenous!and!Tribal!Peoples!Convention!(C169)!
is!however!mentioned!in!the!bibliography!of!the!same!document.!
!
The' text' of' the' standard' is' still' under' development' and' therefore' ISO' asked' not' to' be'
included'in'the'analysis'(next'chapter)'yet'and'to'wait'for'the'final'version'(end'2018).'
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4
!https://www.iso.org/news/2016/09/Ref1936.html!
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ProTerra!Certified!(soy)!
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Cert!ID!created!the!ProTerra!certification!standard!in!2006,!based!on!the!Basel!Criteria!for!
Responsible!Soy!Production.!The!standard!includes!requirements!related!to!conservation!of!
highCvalue! conservation! areas,! worker! welfare,! avoidance! of! certain! pesticides,! and!
protection! of! traditional! land! uses.! The! Standard! and! all! IP! related! to! ProTerra! have! been!
transferred!to!Stichting!ProTerra!Foundation,!founded!in!2012!in!The!Netherlands.!
!
For!certification!under!the!ProTerra!Standard!(v3.0),!areas!of!native!vegetation!and!other!
high!conservation!value!areas!cannot!have!been!cleared!or!converted!into!agricultural!areas,!
or!used!for!industrial!or!other!commercial!purposes,!after!2004,!in!particular!the!following:!
a) Primary!Forests!(for!instance,!rainforests)!
b) Riparian!Vegetation!
c) Wetlands!
d) Swamps!
e) Floodplains!
f) Steep!slopes!
g) Other!high!conservation!value!areas!as!defined!by!the!HCVA!Network.!
Guidance:!This!indicator!states!the!requirement!regarding!land!conversion!of!native!
vegetation!and!HCVAs.!The!cutCoff!date!can!be!adjusted!for!specific!regions,!and!can!be!
modified!to!include!compensatory!measures!for!certain!limited!periods.!However,!the!
fundamental!principle!of!the!ProTerra!Standard!is!that!conversion!of!native!vegetation!and!
HCVAs!is!not!allowed!(Principle!4.1!Land!conversion).!
!
ProTerra! operates! businessCtoCbusiness! and! businessCtoCconsumer! and,! uses! “Identity!
Preserved”!and!“Segregatied”!as!traceability!models.!Drawing!from!established!markets!for!
nonCGMO!products,!ProTerra!was!able!to!rapidly!bring!compliant!production!to!4.5!million!
metric! tons! by! 2007.! Since! then,! certified! production! under! the! ProTerra! standard! has!
remained!relatively!stable,!at!around!4!million!metric!tons!(Potts!et!al.,!2014).!All!certified!
products! on! the! European! market! are! “Identity! preserved”,! meaning! full! traceability.! In!
2015,!1.8!million!ha!were!certified!of!which!1.78!million!ha!in!Brazil!(Lernoud!et!al!,!2017).!
!
Rainforest!Alliance!–!Sustainable!Agriculture!Network!(incl.!soy,!palm!oil,!cocoa)!
!
The!overarching!goal!of!the!Rainforest!Alliance!(RA)!is!to!safeguard!the!health!of!forests!and!
communities.! Halting! deforestation! is! one! of! the! main! goals.! RA’s! mission! is! to! conserve!
biodiversity!and!ensure!sustainable!livelihoods!by!transforming!landCuse!practices,!business!
practices!and!consumer!behaviour.!RA!works!together!with!indigenous!forest!communities,!
governments!and!companies!committed!to!responsible!sourcing.!RA!is!a!consumerClabel!and!
visible!on!the!endCproduct!and!uses!“Identity!Preserved”,!“Segregated”!and!“Mass!Balance”!
models.! In! 2016,! the! UK! retailer! TESCO! pledged! to! source! all! cocoa! for! its! UK! own! label!
chocolate! from! RA! certified! producers.! RA! provided! training! to! 1.2! million! farmers! to!
minimize! their! environmental! impacts,! while! earning! stable! incomes.! This! may! earn! them!
certification! through! the! Sustainable! Agriculture! Network! (SAN)! standard,! which! was! coC
founded! by! RA.! 16! million! ha! of! land! are! managed! sustainably! with! Rainforest! Alliance!
certification.! In! addition,! RA! and! partners! have! helped! prevent! the! deforestation! of! nearly!
4.4!million!hectares!of!highCrisk!landscapes!and!forest!frontiers.5!In!2015,!certified!cocoa!was!
produced!on!738,000!ha!of!which!456,000!ha!in!Côte!d’Ivoire.!RA!also!certified!50,000!ha!of!
palm! oil! but! no! soy! (Lernoud! et! al,! 2017).! SAN’s! standard! actively! promotes! climate! smart!
agriculture!and!improves!the!resilience!of!farms!and!farming!communities!by:!
5
!http://www.RainforestCalliance.org/issues/forests!
! 6!!
• Protecting!native!ecosystems!and!onCfarm!biodiversity;!
• Avoiding!deforestation;!
• Maintaining!healthy!soils;!
• Sustaining!water!resources;!and!
• Guiding!farmers!to!select!and!adopt!climateCsmart!planting!materials!and!farming!
practices.!
!
In!addition,!the!SAN!standard!seeks!to!reduce!the!greenhouse!gas!emissions!of!agriculture!
associated! with! the! use! of! energy,! fertilizers,! pesticides,! and! methane! emissions,! while!
maintaining! or! enhancing! carbon! stocks! in! soils,! forests,! and! other! onCfarm! vegetation.! In!
this!way,!the!SAN!standard!promotes!the!three!pillars!of!climate!smart!agriculture:!!
• Sustainably!increasing!agricultural!productivity!and!incomes;!
• Adapting!and!building!resilience!to!climate!change;!and!
• Reducing!or!removing!greenhouse!gas!emissions,!where!possible.!
!
RSPO!Roundtable!for!Sustainable!Palm!Oil!(palm!oil)!!
Established! in! 2004,! the! Roundtable! on! Sustainable! Palm! Oil! (RSPO)! is! a! global! multiC
stakeholder! initiative! with! more! than! 3,000! members! worldwide! who! represent! all! links!
along!the!palm!oil!supply!chain,!and!who!are!committed!to!produce,!source!or!use!Certified!
Sustainable!Palm!Oil!(CSPO).!In!2015,!almost!12.9!million!metric!tons!and!3.5!million!ha!of!oil!
palm!were!RSPOCcertified,!representing!18.5%!of!global!oil!palm!area!(Lernoud!et!al,!2017).!
RSPO! is! the! first! VSS! to! provide! transparent! information! about! its! certified! producers!
through! the! Global! Forest! Watch! commodities! platform.! RSPO! is! an! ISEAL! member.! RSPO!
members! include! plantation! companies,! processors! and! traders,! consumer! goods!
manufacturers!and!retailers!of!palm!oil!products,!financial!institutions,!environmental!NGOs!
and! social! NGOs,! to! develop! and! implement! global! standards! for! sustainable! palm! oil.!
RSPO’s!vision!is!to!“transform!the!markets!by!making!sustainable!palm!oil!the!norm”.!It!does!
so! by! advancing! the! production,! procurement,! finance! and! use! of! sustainable! palm! oil!
products;! developing,! implementing,! verifying,! and! periodically! reviewing! global! standards!
for!the!entire!supply!chain!of!sustainable!palm!oil.!
!
The! current! Principles! &! Criteria! (2013)! aim! to! preserve! rare,! threatened! or! endangered!
species! and! other! high! conservation! value! areas! (5.1).! Regarding! the! responsible!
development!of!new!plantings,!principle!7.3!states!that!after!November!2005!(cut!off!date)!
new! planting! may! not! replace! primary! forest! or! any! area! required! to! maintain! or! enhance!
one! or! more! High! Conservation! Values.! This! also! includes! areas! required! by! affected!
communities! to! meet! their! basic! needs! (to! be! incorporated! in! management! plans).! These!
Principles!and!Criteria!are!being!review!and!the!new!version!is!expected!end!2018.!
!
RSPO! operates! businessCtoCbusiness! and! businessCtoCconsumer! and! uses! “Identity!
Preserved”,! “Segregated”,! “MassCBalance”! and! “BookCandCClaim”! as! traceability! models.!
Under! the! BookCandCClaim! model,! RSPO! certified! producers! can! sell! certified! sustainable!
palm!oil!(CSPO)!credits!or!certified!sustainable!palm!kernel!oil!and!expeller!(CSPKO/CSPKE)!
credits.! Smallholders! can! sell! certified! Fresh! Fruit! Bunches! (FFB)! to! certified! mills! or! when!
they! are! independent,! sell! Independent! Smallholder! (IS)! credits.! RSPO! has! also! developed!
the!RSPO!Supply!Chain!Standard,!which!describes!the!requirements!related!to!the!control!of!
RSPO! certified! palm,! palm! derivatives! and! palm! products! along! the! supply! chain,! including!
flows! of! material! and! associated! claims.! RSPO! has! developed! a! set! of! environmental! and!
social!criteria!that!companies!must!comply!with!in!order!to!produce!CSPO.!When!properly!
applied,! they! can! help! to! minimize! the! negative! impact! of! palm! oil! cultivation! on! the!
! 7!!
environment!and!communities!in!palm!oilCproducing!regions.!Accredited,!independent!third!
party,!certification!bodies!conduct!the!audits.!!
!
RSPO!NEXT!was!launched!in!2015!and!is!a!voluntary!commitment!in!addition!to!the!existing!
principles.! RSPO! NEXT! is! a! voluntary! effort! by! RSPO! certified! member! companies,! which!
have! voluntary! policies,! commitments! and! actions! that! exceed! the! standard.! The!
components!of!RSPO!NEXT!include:!no!deforestation;!no!fire;!no!planting!on!peat;!reduction!
of! GHGs;! respect! for! human! rights;! and! transparency.! There! are! indicators! that! can! be!
audited!for!compliance.!
!
RTRS!Roundtable!on!Responsible!Soy!(soy)!
!
The!first!RTRS!certified!soy!produce!was!sold!in!2011!to!companies!in!Europe.!In!2016,!RTRS!
certified!production!reached!3!million!metric!tons!(29%!increase!from!2015)!and!more!than!
50! companies! bought! RTRS! certified! soy! including! companies! from! signatory! countries!
Denmark,!France,!Germany,!the!Netherlands,!and!United!Kingdom!(RTRS,!2016).!
!
The! objectives! of! RTRS! are! to! promote! the! growth! on! production,! trade,! and! use! of!
responsible!soy!through!cooperation!with!actors!in!and!relevant!to!the!soy!value!chain!from!
production! to! consumption! in! an! open! dialogue! with! stakeholders! including! producers,!
suppliers,!manufacturers,!retailers,!financial!institutions,!civil!society!organizations!and!other!
relevant!actors.!In!particular,!RTRS!facilitates!a!global!dialogue!on!responsible!soy:!!
• As!a!forum!to!discuss!and!develop!solutions,!aiming!to!reach!consensus,!on!the!key!
economic,!social!and!environmental!impacts!of!soy!among!the!various!stakeholders;!!
• By!communicating!issues!regarding!responsible!soy!production,!processing,!trading,!
and!use!in!commercial!products,!and!consumption!to!a!wide!range!of!global!
stakeholders;!!
• As!a!forum!for!developing!and!promoting!definitions!for!responsible!soy!production,!
proCcessing,!trading!and!consumption!with!criteria!that!addresses!economic,!social!
and!environmental!issues!embodied!in!RTRS!Standards!through!its!Principles,!
Criteria,!Indicators,!and!Verification!&!Accreditation!System;!!
• By!mobilizing!participants!to!the!multi!stakeholder!process;!!
• By!organizing!round!table!conferences!and!technical!workshops;!!
• As!a!recognized!international!forum!monitoring!the!status!of!responsible!
production,!processing,!trading!and!consumption!of!soy.!
RTRS! is! a! transparent! multiCstakeholder! initiative! that! shares! its! findings! and! conclusions!
developed! in! RTRS! Standards! (version! 3)! through! its! Principles,! Criteria,! Indicators! and!
Verification!&!Accreditation!System!with!members!and!nonCmembers!(RTRS!2010,!2016).!!
!
Principle!4.4!requires!expansion!of!soy!cultivation!is!responsible!and!has!not!taken!place!on!
land! cleared! of! native! habitats! after! May! 2009.! Expansion! in! native! forests! is! not! allowed,!
Exceptions! to! expansion! in! other! native! habitats! are! allowed! if! it! is! line! with! an! RTRSC
approved!map!and!system,!or!in!line!with!official!ecologicalCeconomic!zoning!and!expansion!
only! occurs! outside! priority! areas! for! conservation! (or! HCVA).! Also! onCfarm! biodiversity!
needs!to!be!maintained!and!safeguarded!through!the!preservation!of!native!vegetation!and!
no!hunting!of!rare,!threatened!or!endangered!species!is!allowed!(P4.5).!
!
RTRS!operates!business!to!business!and!uses:!a)!“book!and!claim!system”!(the!RTRS!trading!
platform! for! RTRS! credits);! b)! “MassCBalance! traceability! model;! and! also! has! a!
“Segregation”! system! for! future! potential! market! opportunities.! RTRS! also! has! a! nonCGMO!
annex! for! ChainCofCCustody! certification.! RTRS! certified! almost! 734,977! ha! in! 2015!
! 8!!
representing! 0.6%! of! global! soybean! area,! 10,800! producers! and! 2.3! million! metric! tons.!
Brazil! had! 431,238! RTRS! certified! area! followed! by! Argentina! (211,600! ha).! In! comparison,!
the!United!States!only!had!5,881!ha!RTRSCcertified.!
!
UTZ!Certified!(cocoa,!coffee,!hazelnuts,!tea)!
The! mission! of! UTZ! Certified! (ISEAL! member),! founded! in! 2002! in! relation! to! coffee,! is! to!
create! a! world! where! sustainable! farming! is! the! norm.! According! to! UTZ:! “sustainable!
farming!helps!farmers,!workers!and!their!families!to!fulfil!their!ambitions!and!contributes!to!
safeguard! the! world’s! resources,! now! and! in! the! future”.! UTZ! also! developed! the! UTZ!
traceability!system!for!RSPO!(palm!oil).!The!UTZ!label!is!a!consumerClabel!and!visible!on!the!
endCproduct.!UTZ!uses!“Identity!Preserved”!and!‘Segregated”!models!of!traceability.!UTZ!is!
currently! the! largest! certification! programme! for! cocoa! with! more! than! 465,000! cocoa!
farmers!in!19!countries.!Since!2009,!enough!cocoa!has!been!sold!as!UTZ!certified!to!make!35!
billion!chocolate!bars!of!100!grams.!In!2015,!UTZCcertified!cocoa!was!grown!on!1.5!million!ha!
representing! almost! 15%! of! global! cocoa! area.! Côte! d’Ivoire! had! 827,473! ha! and! Ghana!
298,000!ha!(Lernoud!et!al,!2017).!UTZ!certified!cocoa!products!are!available!in!134!countries!
worldwide,! and! five! of! the! top! ten! chocolate! manufacturers,! including! Nestlé,! Ferrero,!
Hershey! and! Mars! have! committed! to! buy! 100%! certified! cocoa.! In! terms! of! environment,!
UTZ! has! a! wide! range! of! requirements! aimed! at! safeguarding! nature,! biodiversity! and! the!
climate.6!!Farmers!are!trained!to:!
• Respect!protected!areas,!plant!and!animal!life!and!water!sources;!
• Prevent!deforestation!and!plant!shade!trees;!
• Optimize!and!reduce!the!use!of!artificial!fertilisers!and!pesticides;!
• Efficient!waste!collection,!processing!and!recycling;!
• Use!energy!carefully!and!encourage!the!use!of!sustainable!energy!sources.!
!
The!UTZ!2015!core!Code!of!Conduct!(Block!D,!ID213)!and!guidance!on!nature!protection!(v1,!
2016)!requires!no!deforestation!and!safeguarding!protected!areas!and!endangered!species.!
UTZ!requires!demonstration!that!no!deforestation!or!primary!forest!has!taken!place!since!
2008!and!that!no!deforestation!of!secondary!forest!takes!place.!Unless!a!legal!land!title!
and/or!a!land!owner!permission!and/or!customary!land!rights!and!government!permits!have!
been!obtained!for!deforestation!of!secondary!forest!and!there!is!compensation!with!
reforestation!activities!of!at!least!equal!ecological!value.!
!
Box!1:!Merger!of!Rainforest!Alliance!and!UTZ.!
!
On!6!June!2017,!Rainforest!Alliance!and!UTZ!announced!they!will!merge!and!form!a!single!agricultural!
sustainability!standard,!named!Rainforest!Alliance.!The!intention!is!to!merge!later!in!2017.!The!future!
Rainforest!Alliance!standard!will!use!the!frameworks!of!the!current!Sustainable!Agriculture!Network!
(SAN)! and! UTZ! standards,! to! address! social! and! environmental! issues,! including! climate! change,!
deforestation,! poverty! and! unsustainable! farming.! Through! partnership,! the! new! standard! will! also!
aim!to!ensure!the!conservation!of!entire!landscapes!in!selected!priority!regions.!
Source:!http://www.rainforestCalliance.org/article/rainforestCallianceCutzCmerger!
!
2.4 GovernmentAled!schemes!ISPO!and!MSPO!
In! addition! to! the! described! voluntary! (often! multiCstakeholder)! certification! standards!
described! earlier! the! governments! of! Malaysia! and! Indonesia! also! developed! national!
mandatory!standards:!
6
!https://utz.org/whoCweCare/aboutCutz/betterCenvironment/!
! 9!!
!
ISPO!–!Indonesian!Sustainable!Palm!Oil!
The!ISPO!(Indonesian!Sustainable!Palm!Oil!Certification!System)!standard!was!developed!and!
introduced! in! 2011! by! the! Government! of! Indonesia! to! ensure! that! Indonesian! oil! palm!
growers! conform! to! existing! Indonesian! laws,! including! plantation,! environmental! and!
manpower!laws.!The!basis!is!to!consolidate!existing!Indonesian!laws!and!!is!mandatory!for!all!
oil!palm!growers,!from!large!plantation!companies!to!smallholders,!although!requirements!
vary! for! each! (Efeca,! 2016).! ISPO! is! thus! not! a! voluntary! sustainability! standard! but! a!
governmentCled,!mandatory!standard!and!is!sometimes!referred!to!as!a!‘legality!standard’.!
Because! many! smallholders! are! not! fully! legal! compliant! or! certified,! it! is! a! relevant!
development! towards! sustainable! palm! oil! production.! ISPO! is! currently! revising! its!
accreditation! process! whereby! an! independent! Certification! Body! decides! whether! a!
certificate!is!issued.!Complaint!processes!and!audit!findings!are!not!publicly!available!yet.!
!
The!Government!of!Indonesia!(GoI)!presented!the!following!information!to!the!ADCGroup7:!!
Currently,!264!companies!are!ISPOCcertified.!The!GOI!in!conjunction!with!the!UNDP!
launched! a! new! initiative! in! 2015! called! FoKSBI:! Indonesian! Sustainable! Palm! Oil!
Platform.! FoKSBI! is! a! governmentCled! multiCstakeholder! platform,! consisting! of!
government! institutes,! companies,! civil! society! organisations! (incl.! CIFOR,!
Greenpeace,! RSPO,! Sawit! Watch,! SPKS! smallholders,! TNC,! WWF)! and! development!
partners!(incl.!Solidaridad).8!The!FoKSBI!Steering!Committee!consists!of!the!Ministry!
of!Agriculture,!Ministry!of!Environment!&!Forestry,!Bappenas,!Coordinating!Ministry!
of!Economy,!National!Land!Agency,!Indonesian!Palm!Oil!Board,!Indonesian!Palm!Oil!
Association!(GAPKI)!and!the!UNDP.!FoKSBI!is!preparing!the!National!Action!Plan!for!
Sustainable! Palm! Oil! 2018C2023.! The! draft! will! be! ready! end! 2017! after! public!
consultations!undertaken!in!Sumatra,!Riau!and!WestCKalimantan!and!internationally!
as!well.!The!plan!is!also!published!on!the!website!for!comments.!The!main!elements!
of!the!plan!are:!
1. Capacity!building!smallholders;!
2. Environment!management;!
3. Governance!and!conflict!mediation;!
4. ISPO!Market!Access!
Implementation! of! the! National! Action! Plan! will! allow! for! regional! differences.!
Provincial!multiCstakeholder!platforms!and!districtClevel!forums!will!be!installed!that!
will!guide!NAP!implementation!in!the!province.!
!
Indonesia!also!established!an!Indonesian!Palm!Oil!Plantation!Fund!Management!Agency.!!
This!is!a!government!entity!under!the!Ministry!of!Finance.!It!will!be!funded!through!a!levy!on!
exported!crude!palm!oil,!and!maybe!funds!from!financing!agencies.!The!Fund!will!support:!
1. Palm!oil!development!and!downstream!product!development!(financing!support!
for!the!use!of!20%!biodiesel!in!Indonesia;!
2. Replanting!and!estate!infrastructures;!
3. Human! resource! development! (scholarships! and! training! for! farmers! and! their!
children);!
4. Research!and!development!(funding!research!to!increase!productivity);!
5. Promotion! and! Partnership! (positive! campaigns! and! diplomacy! both! domestic!
and!overseas).!
The!palm!oil!fund!will!support!land!titling!of!smallholder!so!they!can!qualify!for!ISPO.!
7
!Presentation!to!the!ADCGroup!on!23!June!2017!in!Bonn,!Germany.!
8
!http://www.foksbi.id/id/anggotaCdanCpesertaCinpop!
! 10!!
!
ISPO!does!not!use!the!concept!of!High!Conservation!Value!Areas!or!High!Carbon!Stock!Areas!
like!some!other!standards.!Conservation!is!based!upon!Indonesian!law.!ISPO!does!not!use!a!
cutCoff! date! so! legal! deforestation! is! allowed.! Since! 2011,! there! is! a! moratorium! on! the!
award!of!new!licenses!for!plantation!development!in!primary!natural!forests!and!peat!lands.!
Legal! deforestation! of! existing! concessions! is! possible! and! there! are! some! uncertainties!
regarding!the!Indicative!Moratorium!Map!(which!includes!28.4!million!ha!of!primary!forest!
and! 14.9! million! ha! of! peat! lands). 9 !Forests! may! be! cleared! if! the! land! is! destined! for!
agriculture! (spatial! planning! law),! an! impact! assessment! has! been! conducted! and!
government!issued/issues!a!permit.!Indonesia!has!a!policy!focusing!on!peatland!restoration!
(incl.!a!Peatland!Restoration!Agency)!and!forest!fire!management.!The!GoI!–!in!collaboration!
with! local! governments! C! obliges! landCbased! companies! to! prepare! Standard! Operating!
Procedures!(SOP)!to!prevent!forest!fires!and!villagers!from!land!clearing!using!fire.!!
!
Because!ISPO!is!based!upon!Indonesian!law,!the!current!legislation,!Presidential!instructions!
and!law!enforcement!are!very!relevant.!It!goes!beyond!the!scope!of!this!study!to!describe!all!
relevant!Indonesian!law.!A!recent!analysis!by!CIFOR!(2017)!shows!that!there!was/is!strong!
(political)! opposition! in! Indonesia! to! zero! deforestation! (e.g.! as! expressed! by! IPOP,! the!
Indonesian! Palm! Oil! Pledge! by! six! companies! in! 2014! and! which! stopped! in! 2016! due! to!
strong! opposition).! Legality! without! governance! and! enforcement! means! little.! There! are!
overlaps!in!concessions,!inconsistencies!in!the!allocation!of!permits!and!operations!outside!
legal! boundaries.! In! many! regions! the! rights! of! the! land! are! contested! between! the! state!
government! and! local! people! resulting! in! an! unclear! land! rights! situation! (clear! land! rights!
are! needed! before! certification! can! be! granted! to! e.g.! smallholders).! The! CIFOR! report!
concludes:!“Our!survey!was!straightforward!and!underlined!that!political!and!legal!barriers!
are! mainly! responsible! for! the! slow! progress! toward! sustainability! as! opposed! to! technical!
challenges! or! adverse! economic! consequences! for! the! country.! This! is! reflected! in! two!
prominent!examples.!First,!is!the!ambiguous!status!of!setCasides!based!on!HCV!assessments!
(the! high! carbon! stock! approach! remains! out! of! reach! in! current! political! circumstances).!
Second,! law! enforcement! is! an! absolute! prerequisite! for! major! progress! toward!
sustainability,! notably! with! the! regularization! of! tenure! rights! of! smallC! and! mediumC! sized!
producers,!in!order!to!increase!the!confidence!of!markets!in!the!sustainability!of!upstream!
suppliers.! Law! enforcement! will! also! require,! as! a! preliminary! step,! the! finalization! of! the!
One!Map!approach!to!clarify!legal!concession!boundaries!and!to!prevent!the!proliferation!of!
company!operations!without!proper!permits!and!oversight.“!
!
The! ISPO! standard! is! currently! being! reformulated! and! the! new! version! is! expected! end!
2018.!
!
MSPO!–!Malaysian!Sustainable!Palm!Oil!
The!Malaysian!Sustainable!Palm!Oil!(MSPO)!Certification!Scheme!is!the!national!scheme!in!
Malaysia! for! oil! palm! plantations,! independent! and! organised! smallholdings,! and! palm! oil!
processing! facilities! to! be! certified! against! the! requirements! of! the! MSPO! Standards.!! The!
MSPO! Certification! Scheme! allows! for! oil! palm! management! certification! and! supply! chain!
certification!and!provides!for:!
• Development!of!certification!standards!
• Accreditation!requirements!and!notification!of!certification!bodies!
• Application!by!potential!clients!for!certification!audits!
• Supply!chain!traceability!requirements!
9
!http://www.wri.org/publication/indonesiasCmoratoriumCnewCforestCconcessions!
! 11!!
• Guidelines!for!auditing!
• Peer!reviewing!of!audit!reports!
• Issuance!of!logo!usage!licenses!
• Procedures!for!handling!of!complaints.!
!!
The!MSPO!Certification!Scheme!was!implemented!since!January!2015!on!a!voluntary!basis!
and! is! to! be! implemented! on! a! mandatory! basis! by! December! 2019,! as! per! the! Malaysian!
government’s!decision.!!Plantation!companies!that!are!already!RSPOCcertified!have!to!obtain!
MSPO!certification!by!31!December!2018.!!Other!companies!without!RSPO!certification!will!
have! to! obtain! MSPO! certification! by! 30! June! 2019.!! Smallholders! C! independent! and!
organized!C!need!to!get!their!MSPO!certification!by!31!December!2019.!!!
!
To! spur! the! uptake! of! MSPO! certification,! the! Malaysian! government! has! made! available!
financial!assistance!to!smallholders,!growers!and!processing!facilities.!!This!is!a!pledge!by!the!
government!to!facilitate!the!implementation!of!MSPO!certification!and!help!reduce!the!cost!
of!obtaining!MSPO!certification.!!MSPO!will!be!implemented!nationwide!and! the!ambition!
is!that!Malaysian!palm!oil!will!become!sustainable,!healthy!and!safe.!
!!
MPOCC'='Malaysian'Palm'Oil'Certification'Council'
To! support! the! development! and! implementation! of! the! MSPO! Certification! Scheme,! the!
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Malaysian!Palm!Oil!Certification!Council!(MPOCC) ,!was!established!in!2014.!!MPOCC! has!
been! established! as! an! independent! nonCprofit! organisation! incorporated! as! a! company!
under! the! Malaysian! Companies! Act,! 1965.! The! Malaysian! Palm! Oil! Certification! Council!
(MPOCC)! is! responsible! to! develop! and! operate! the! MSPO! Certification! Scheme! since! it!
began! operations! in! October! 2015.!! MPOCC! is! governed! by! a! Board! of! Trustees! with!
representation! of! industry,! government,! academia,! research! and! development! institutions,!
nonCgovernmental!organisation,!smallholder’s!organisation!and!civil!society.!
!
MSPO'Standards'
The! MSPO! Standards! (MS! 2530:2013! series)! used! currently! under! the! MSPO! Certification!
Scheme! was! developed! based! on! domestic! laws! and! regulations,! and! best! practices! on!
sustainability.!!Inputs!from!representatives!of!various!palm!oil!interest!groups!were!taken!on!
board! in! the! development! of! the! MSPO! Standards.! The! MSPO! Standards! stipulates! the!
general!principles!on!certification!requirements!for!oil!palm!smallholdings,!plantations!and!
palm! oil! processing! facilities! to! ensure! that! the! palm! oil! products! are! produced! in! a!
responsible! and! sustainable! manner.!! The! MSPO! Standards! can! be! purchased! from! the!
Department!of!Standards!Malaysia.11!!
!
The!MSPO!Standards!contains!seven!(7)!principles!which!form!the!general!requirements!of!a!
management! system! framework! i.e.! economically! viable,! socially! acceptable,! and!
environmentally!sound.!The!general!requirements!are!(MS2530,!2013):!
!!
• Principle!1:!Management!commitment!and!responsibility!
• Principle!2:!Transparency!
• Principle!3:!Compliance!to!legal!requirements!
• Principle!4:!Social!responsibility,!health,!safety!and!employment!conditions!
• Principle!5:!Environment,!natural!resources,!biodiversity!and!ecosystem!services!
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!https://www.mpocc.org.my!
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!https://www.msonline.gov.my/default.php!
! 12!!
• Principle!6:!Best!practices!
• Principle!7:!Development!of!new!planting!
!
Principle!5!includes12:!
• Environmental!Management!Plan!(EMP)!in!place.!
• Efficiency!of!energy!use!and!use!of!renewable!energy.!
• Reduction!of!pollution!and!emission!including!greenhouse!gases.!
• Water!management!plan!to!maintain!the!quality!and!availability!of!water!resources.!
• Identification! of! high! biodiversity! value! areas! and! rare,! threatened! or! endangered!
ecosystems!or!species.!
• Zero!burning!practices!for!waste!disposal!and!land!preparation.!
The! Standard! MS2530:! 2013! series! states! that! oil! palm! shall! not! be! planted! on! land! with!
High!Biodiversity!Value!unless!it!is!carried!out!in!compliance!with!the!National!and/or!State!
Biodiversity! Legislation.!High! Biodiversity! Value! land! is! defined! as! land! that! has! one! of! the!
following!status:!
a) Primary!forest!
b) Areas!designated!by!law!or!by!the!relevant!competent!authority!to!serve!the!
purpose!of!nature!protection!
c) Areas!for!the!protection!of!rare,!threatened!or!endangered!ecosystems!or!species!
recognised!by!international!agreements!or!included!in!lists!drawn!up!by!
intergovernmental!organisations.!
MSPO!allows!legal!deforestation!of!areas!that!do!not!have!the!aboveCmentioned!status.!
!
MSPO'Certification'process'
Each!of!the!seven!Principles!have!specific!Criteria!and!Indicators!that!the!Certification!Bodies!
(CBs)! will! use! during! audit! to! determine! compliance.! !!The! management! of! the! entity! that!
meets!the!requirements!of!the!MSPO!will!be!able!to!obtain!certification!under!the!standard.!
!
The!draft!MSPO!Supply!Chain!Certification!Standard!developed!through!a!multiCstakeholder!
process! via! the! Technical! Working! Committee! on! MSPO! Standards! is! now! in! the!
consultation!process!(29!August!to!28!October!2017).!This!draft!standard!uses!the!supply!
chain! segregation! and! mass! balance! models.! The! grievance! mechanism! is! linked! to! the!
certified!organisation!but!MPOCC!also!has!dispute!resolution!procedures.!!
!
The!MSPO!Scheme!requires!certification!by!third!party!independent!Certification!Bodies!
(CB).! The! client! applies! to! a! CB! to! conduct! an! audit! against! the! applicable! MS! 2530:2013!
Standard! to! ascertain! its! compliance! with! the! certification! requirements.! The!
auditreport! is! subjected! to! a! peer! review! process,! which! is! only! applicable! for! oil! palm!
management! certification.!! The! client! is! eligible! for! the! award! of! the! certificate! of!
compliance!with!the!respective!MSPO!Standard!or!in!the!case!of!a!recertification!audit,!the!
renewal!of!the!certificate,!if!no!major!nonconformities!are!issued!by!the!CB.!The!CB!needs!to!
provide! public! access! to,! or! provide! upon! request,! the! established! internal! procedures! for!
auditing!and!certification!information!describing!the!auditing!and!certification!processes!for!
the! granting,! maintaining! of! certification,! expanding! or! reducing! the! scope! of! certification,!
renewing,!suspending!or!restoring,!or!withdrawing!of!certification.!!The!auditing!procedures!
fulfills! the! requirements! of! ISO! (ISO/IEC! 17021:2015! for! oil! palm! management!
certification;! and! ISO/IEC! 17065:2012! for! supply! chain! certification).!! The! CB! informs!
MPOCC! of! all! the! certificates! that! it! has! issued,! and! changes! concerning! the! validity! and!
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!https://www.mpocc.org.my/partC3CplantationsCorganisedCsmallh!
! 13!You can also read
