(Credit: Roundtable on Sustainable Palm Oil)Two major corporations have announced a new initiative to promote sustainable palm oil practices. BASF, Estée Lauder and the Roundtable on Sustainable Palm Oil (RSPO) are partnering with civil society organization Solidaridad to promote sustainable palm oil production in Indonesia.
Approximately 40% of the world’s palm production comes from smallholder farmers, according to BASF. Partnerships like this are needed to not only support these farmers, but to “increase the availability of sustainably produced palm oil,” says Daniele Piergentili, BASF VP of home and personal care. In order for production of to become truly sustainable in the mainstream, it is imperative to support smallholders in a variety of ways, including by helping them scale up sustainable practices, RSPO says.
The project is meant to help independent smallholder farmers in the Indonesian province of Waykanan, Lampung, improve their livelihoods and their sustainable production of palm oil and palm kernel oil. The organizations will offer continuous education and technical support with the hope that at least one-third of the supported smallholder farmers will become certified according to the Smallholder Standard of RSPO at the end of three years.
Estée Lauder, BASF, RSPO and Solidaridad are collaborating with the Indonesian government to foster a sustainable palm oil production supply chain in Lampung that is free from deforestation while remaining competitive in the global market and increasing the social and economic benefits for farmers.
“Most major European companies have committed to using sustainable palm oil exclusively," says Heske Verburg, managing director of Solidaridad Europe. But companies like BASF and Estée Lauder are going beyond sustainable purchasing by providing direct support for sustainable projects, Heske says.
By proactively “future-proofing” the production of palm oil, companies can resolve “grave issues for both farmers and the environment,” Heske adds.
Last year, more than 90 investors, representing more than $6.7 trillion in assets under management, sent a letter to the RSPO encouraging the organization to strengthen its draft standards for certifying palm oil so as to include more robust protections for peat lands, high carbon stock forests and labor concerns. RSPO responded by ratifying and adopting new Principles & Criteria standards for certification. The updated Principles & Criteria (P&C) include a number of new elements, including the adoption of a no deforestation through the implementation of the High Carbon Stock Approach and improvements upon its existing human rights protections.
