What is The Roundtable on Sustainable Palm Oil (RSPO)?
RSPO was formed in 2004 to work with the palm oil (PO) and palm kernel oil (PKO) industry to address concerns by ‘promoting the production and use of sustainable palm oil for People, Planet and Prosperity.’ The RSPO is a non-profit organisation comprising oil palm growers, palm oil processors and traders, consumer goods manufacturers, environmental NGOs, social NGOs, banks/investors and retailers.
We are long standing member of RSPO. Our membership number is 2-0024-06-000-00.
What are the different sustainable supply chain methods approved by the RSPO?
There are four RSPO approved supply chain methods available for the trading of Certified Sustainable Palm Oil (CSPO):
- Book & Claim: allows CSPO millers and their supply base to issue certificates for each ton of oil they grow and process, which can then be purchased by the end user for the equivalent volume of oil that goes into their product.
- Mass Balance: allows CSPO and non-CSPO to be mixed through the supply chain, but administratively monitors the mass of CSPO produced and sold.
- Segregation: allows CSPO oils from different RSPO certified supply streams to be mixed, but requires they do not mix with uncertified streams.
- Identity preserved (IP): requires full separation and traceability of each batch of sustainable palm oil, from the grower to final sale to the consumer
Why are we moving towards Mass Balance?
The Book & Claim practice, due to the complexities of the derivatives supply chain, has been the only way of supporting Sustainable Palm derivatives until recently. However, Book & Claim is an administrative process without any sustainable palm oil physically entering the supply chain and the audit requirements for Book & Claim are minimal.
By contrast, the Mass Balance process actively encourages support for growers to produce CSPO, because it requires a specific volume of sustainable PO/PKO entering the supply chain to be traced throughout the fully audited processing of the material at each manufacturing stage.
We consider Mass Balance to be an important progressive step beyond the Book & Claim process, creating momentum towards Segregated material.