In November, 2005, the RSPO adopted the Principles and Criteria (P & C) for sustainable production of palm oil relating to the ‘legal, economical, viable, environmentally appropriate and socially beneficial management and operations’ of the production and usage of the commodity.
 
Wikipedia defines sustainability as ‘a characteristic of a process or state that can be maintained at a certain level indefinitely’.  The term, when related to the environment refers to the potential longevity of vital human ecological support systems such as systems of agriculture, industry, forestry and fisheries and human communities in general and the various systems on which they depend. In the case of palm oil, sustainable production of palm oil takes into consideration the viability of the cultivation of the crop on a long term basis, conservation and protection of the environment and the rights of the workers and the surrounding community being protected.  

The interests of various stakeholders directly or indirectly involved with the cultivation, production and consumption of the product were taken into consideration in the drafting of the P& C.  The P & C are designed to guide individual plantation entities toward sustainable production of palm oil and acts as an avenue for product certification.  Plantation companies are able to use the P & C to drive their plantations toward sustainable palm oil production while ensuring certain standards in the cultivation and production of the crop are maintained.

The certification would become a benchmark in determining the production standard which could be universally accepted by all those who are involved in the cultivation, production and consummation of palm oil. The P & C also has provisions dealing with the requirements that need to be fulfilled pertaining to the social and environmental components that are related directly and indirectly to the cultivation of oil palm and sets the foundation for production of sustainable oil palm that takes into consideration long term economic viability, protection and conservation of the environment, and the recognition of the workers and the local communities who are directly and indirectly involved with the cultivation of the crop.

In this article Deforestation Watch shall endeavour to discuss the P & C using lay-man terms and do not in any way reflect the stand taken by RSPO.

Principle1: Commitment to transparency

This principle emphasises the need for the oil palm growers and millers to provide adequate information to other stakeholders as to environmental, social and legal issues in appropriate language and form to allow for effective participation in decision making. Towards this end, management documents should be publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.   

Principle 2 – Compliance with applicable laws and regulations

There should be compliance with applicable local, national and ratified international laws and regulations, the right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights and the use of land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.

Principle 3 – Commitment to long-term economic and financial viability

There is an implemented management plan that aims to achieve long-term economic and financial viability.

Principle 4 – Use of appropriate best practices by growers and millers

Operating procedures should be appropriately documented and consistently implemented and monitored. Practices that maintain soil fertility at, or where possible improve soil fertility, to a level that ensures optimal and sustained yield.

Practices that minimise and control erosion and degradation of soils and practises that maintain the quality and availability of surface and ground water can be implemented. Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.  Agrochemicals should be used in a way that does not endanger health or the environment. There is no prophylactic use, and where agrochemicals are used, are categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions. Growers should actively seek to identify alternatives and this has to be documented. An occupational health and safety plan should be documented, effectively communicated and implemented and all staff, workers, small holders and contractors should be appropriately trained.

Principle 5 – Environmental responsibility and conservation of natural resources and biodiversity

Aspects of plantation and mill management that have environmental impacts are identified, and plans should be put in place to mitigate the negative impacts and promote the positive ones, implemented and monitored and to demonstrate continuous improvement. The status of rare, threatened or endangered species and high conservation value habits, if any, that exist in the plantation or that could be affected by plantation or mill management, should be identified and their conservation taken into account in management plans and operations. Waste should be reduced, recycled, reused and disposed off in an environmentally and socially responsible manner. Efficiency of energy use and the use of renewable energy should be maximised. Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations as identified in the ASEAN guidelines or other regional best practices. Plans to reduce pollution and emissions, including greenhouse gases should be developed, implemented and monitored.

Principle 6 – Responsible consideration of employees and of individuals and communities affected by growers and mills

Aspects of mill plantation and mill management that have social impacts should be identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, and monitored, so as to demonstrate continuous improvement. There should be open and transparent methods for communication and consultation between the growers and millers, local communities and other affected or interested parties. There should be a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties. Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous people, local communities and other stake holders to express views through their own representative institutions. Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to meet basic needs of personnel and provide some discretionary income. The employer respects the rights of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. Child labour is not used. Children should not be exposed to hazardous working conditions. Work by children are allowed on family farms, under adult supervision and when not interfering with education programmes. The employer shall not engage in or support discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation or age. A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights should be developed and applied. Growers and millers should deal fairly and transparently with smallholders and other local businesses and contribute to local sustainable development wherever appropriate.

Principle 7 – Responsible development of new plantings

A comprehensive and participatory independent social and environmental impact assessment should be undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations. Soil surveys and topographic information should be used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations. New plantings since November, 2005 should not replace primary forest or any area containing one or more High Conservation Values. Extensive planting on steep terrain, and/or on marginal and fragile soils, is to be avoided. No new plantings are to be established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous people, local communities and other stakeholders to express their views through their own representative institutions. Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements. Use of fire in the preparation of new plantings should be avoided other than in specific situations, as identified in the ASEAN guidelines or other regional practice.

Principle 8 – Commitment to continuous improvement in key areas of activity

Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

The P & C brings benefits to the producers and in this case the plantation owners and millers and also the users who are the manufacturers of the palm oil downstream products. The P & C puts in place various management inputs such as best practice and free flow of information between the members and also emphasises on transparency in their dealings. Sharing of information would also enable members to exchange information and knowledge which could bring about better management practices and enhancement of knowledge within the industry.

Strict compliance of law is also emphasised as the plantations and mills are mostly in the interior and as such there is no direct supervision of the authorities and the onus of compliance of law rests with the respective managers of the plantations and mills.
Emphasis on environmental protection is emphasised in the P& C as adverse effects of water and air pollution could result if such factors are not given importance.

The P & C calls for audit which could result in certification. The certification is an important milestone for the industry players as attaining certification put them as having the best practice which is also recognised by the users and consumers.

As to human relations, the P & C emphasises on transparency of dealings between the plantations and its stakeholders. Special emphasis is given to the indigenous people who are mostly affected when land development takes place within their boundaries. They lose their main source of livelihood when forests are cleared to develop into plantations. Special emphasis is given to compensation methodology when such developments take place. When there is transparency in the dealings, adverse circumstances such as road blockades and burning down of the planted fields can be avoided.

The P&C also emphasises on the right to associate and in the case of workers, the right to join any trade union of their choice and also the need to have compensation and benefits that meet the minimum legal requirements of the respective country.

As for the users, the RSPO guarantees that the oil palm is not a genetically modified (GM) plant and as such there is no adverse effect on the users. Free flow of information between the producers and users will lead to better understanding of the product.

Conforming to environmental prerequisites such as environmental friendly plantation practices that do not go against environmental protection will enable the product to have a better standing among the users and consumers.

Finally, plantations that preserve the biodiversity within its perimeter would be appreciated by those who love the environment.

In conclusion, the P & C brings about a win-win situation for the producers and the users of palm oil.

References:
www. RSPO org.my
www. Wikipedia. com.