Sustainable Palm Oil Sourcing Practices. July 2014

Transcription

1 Sustainable Palm Oil Sourcing Practices July

2 The setting Palm oil* is an extremely important commodity and is the most widely used vegetable oil in the world. Since palm oil plantations are highly labor intensive, the crop production also provides a livelihood to millions of people in small, tropical agricultural communities around the world. Palm oil will remain a crucial part of food production in the future with the global population expected to increase by 22% to 9 billion. Of all vegetable oils palm oil has, by far, the highest oil yield per hectare. *Palm oil includes palm kernel oil unless stated differently 2

3 Our Commitment IOI Loders Croklaan believes that we have an obligation to source, process and promote the use of palm oil in a sustainable manner respecting the environment, human rights and labor conditions. We also consider the economic benefits and added value palm oil will bring to the country of origin, its people and companies that operate in this industry. 3

4 Sustainable Sourcing Practices Our Commitment We are committed to source and process traceable and certified sustainable palm oil. Sustainable is defined as certified by RSPO or equivalent system and protects peat lands and does not contribute to deforestation. Traceability will guarantee that we know the source of the palm oil (defined list of mills). What We Do Our route to traceable and certified sustainable palm oil starts with the physical delivery of certified sustainable palm oil volumes into our factories. This is executed via the RSPO Segregated (SG) system. In our factories, we can continue with the SG route or mix SG material with traceable conventional palm oil following the RSPO Mass Balance (MB) route. Our Concern We are concerned about deforestation, loss of biodiversity and the use of peat lands. We are working with the RSPO, our suppliers, our customers, governments and NGOs to improve the existing RSPO principles and criteria by addressing these and other emerging issues. 4

5 Our Commitment We are committed to source and process traceable and certified sustainable palm oil. Targets 1. 90% of traced palm oil (mill level) purchased by June Ambition to reach 100% by June Actively promote the use of sustainable palm oil 3. Progress reported on quarterly basis for traceability as well as sustainable volumes sold Actions 1. Map our supply chain back to mill level for palm oil and to crusher level for palm kernel (2014) 2. Risk analysis of our supply base against our sustainable sourcing criteria (2014) 3. Ask our suppliers to commit to our sustainable sourcing criteria ( ) 4. Verification of commitment via audits and site assessments based on outcome of our risk analysis These actions will form the basis of our time-bound plan Sustainable Sourcing Criteria o Adhere to RSPO P&C or equivalent o Comply with all applicable and relevant laws & legislation o Commitment to transparent and traceable supply chains o No deforestation (HCV & HCS) o No new developments on peat lands regardless of depth o Respect the rights of people and local communities and apply FPIC 5

6 What we do Our route to traceable and certified sustainable palm oil starts with the physical delivery of certified sustainable palm oil volumes in our factories Watch the video Supply Chain Models for Palm Oil Explained Actions o Encourage customers to take more certified sustainable palm oil. o Proactively endorse Mass Balance as this will immediately result in increased volumes of SG certified sustainable palm oil delivered via the RSPO SG system into our factories. Further, processing via the Mass Balance route will not compromise the production efficiency in our factories. o If requested, work with customers to organize the supply of SG certified sustainable palm oil products to their factories (traced to mill level). o IOI Loders Croklaan will initiate and support industry efforts to build a traceable and sustainable palm oil supply chain. *Palm oil includes palm kernel oil unless stated differently 6

7 We Are Concerned We are concerned about deforestation, loss of biodiversity and use of peat lands. Actions o We support the strengthening of recognized sustainability criteria with regards to deforestation, biodiversity and the use of peat lands and we strongly believe that a multi-stakeholder approach is the right way forward. o IOI Loders Croklaan will continue to be an active member of the RSPO and we will participate in working groups that recognize these and other relevant industry issues. We currently hold a seat on the RSPO Board of Governors. o We will develop a time-bound plan that will lead to a traceable supply chain that protects peat lands and does not contribute to deforestation (HCV & HCS). o IOI Loders Croklaan works with WRI and Proforest to evaluate our supply chain. 7

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