RSPO and Sustainable Palm Oil: Understanding the Systems and Certifications

The RSPO (Roundtable on Sustainable Palm Oil) is an organization, while CSPO refers to the physical oil, known as Certified Sustainable Palm Oil.

Some brands/companies may contend that their palm oil is sourced from RSPO members or produced sustainably. However, despite these public claims, many RSPO member companies are not living up to their commitments. Even with RSPO certification, the same harmful practices continue, demonstrating the RSPO's failure to enforce its own basic principles and criteria.

To become an RSPO member, companies must commit to achieving 100% certification in the future. Hence, a brand can claim RSPO membership without actually sourcing Certified Sustainable Palm Oil. Therefore, even if a brand mentions RSPO, it does not necessarily mean they are using certified oil.

Important Note

As of September 1, 2015, brands/companies not affiliated with the RSPO are prohibited from claiming that they use RSPO oil, source from RSPO members, or use sustainable or certified palm oil.

Book and Claim System

Originally, the Book and Claim system, also known as the "certificate trading" system, was established to create market demand for RSPO certified sustainable palm oil. It was endorsed by RSPO and WWF and was implemented to allow manufacturers/brands time to transition to 100% Certified Sustainable Palm Oil (CSPO).

The system is designed to be used as a temporary supply chain by brands. However, as this system allows brands to make sustainable claims without purchasing certified palm oil, many are utilizing this system as a long-term supply. Certified growers downgrade their oil to uncertified, then convert it to certificates that are traded online. One certificate equals one ton of oil.

This is a cost-effective method for brands to purchase RSPO-endorsed palm oil, making a claim that it supports the production of sustainable palm oil. However, it's crucial to understand that the physical oil itself is not certified nor sustainable.

Mass Balance

Mass Balance (MB) is a mix of certified and uncertified palm oil and cannot be traced back to the source. Brands using Mass Balance can assert that their products support the production of certified palm oil.

A simple way to explain Mass Balance is: suppose 100 tons of palm from a certified producer and 100 tons of palm from an uncertified producer are processed together. The resulting 100 tons of Mass Balance contains a mix of both and cannot be traced back to the original source.

Think of it as filling half a glass with water from one tap and the rest from another. Once mixed, there's no way to determine which tap the water in the glass came from.

Segregated

The Segregation supply chain model (SG) ensures that the RSPO certified oil palm products delivered to the consumer come only from RSPO certified sources. It allows the mixing of RSPO certified palm oil from various certified sources. However, Segregated is fully certified palm oil but still not traceable to the plantation.

Identity Preserved

The Identity Preserved (IP) supply chain model ensures that the RSPO certified oil palm products delivered to the consumer are uniquely identifiable to a single mill and its supply base. These products are kept physically separated from all other oil palm sources throughout the supply chain (including other segregated RSPO-CSPO sources). IP model guarantees fully certified products and they are traceable to the source.

No Deforestation Policies

A no deforestation policy implies that the brand or palm oil company has exceeded certification standards with additional regulations, including no peat & no exploitation. Brands with a no deforestation policy collaborate with a third party to monitor and map their supply chain.

"No deforestation" or "Zero deforestation" doesn't mean that there is absolutely zero deforestation in the supply chain. However, it does signify that the company has improved and built upon the weaker RSPO standards to eliminate illegal deforestation from their supply chain.

Those with a No Deforestation or Zero Deforestation policy also have made a strong commitment to ensure that if illegal activity is found to be leaking into the supply, the company will take action to cut out that supply. The companies with these policies are doing their utmost best to ensure the supply is ethical.