THE RSPO FACTOR people planet profits

1. THE RSPO FACTOR people planet profits

2. : VISION & MISSION • VisionRSPO assures palm oil contributes to a better world. • MissionTo advance the production, procurement and use of sustainable oil palm products through: • the development, implementation and verification of credible global standards and, • the engagement of stakeholders along the supply chain.

3. : PRINCIPLES & CRITERIA • Purpose of the principles and criteria During the second Roundtable Meeting (RT2) on Sustainable Palm Oil that was held in Kuala Lumpur in August 2004, it was agreed that, amongst other things, it would be necessary to establish a credible definition of sustainable palm oil production that would be provided through the development of a set of principles and criteria. • Sustainable palm oil production is comprised of legal, economically viable,environmentally appropriate and socially beneficial management and operations. • This is delivered through the application of the following set of principles andcriteria, and the accompanying guidance.

4. : PRINCIPLES & CRITERIA • What does the criteria cover? The criteria covers those aspects widely regarded as being essential to sustainable natural resource management, namely: legality of operations; economic viability; best practice in operations and environmental and social responsibility. The criteria covers both the management of existing plantations and the development of new ones.

5. : PRINCIPLES & CRITERIA • Principle 1: Commitment to transparency • Principle 2: Compliance with applicable laws and regulations • Principle 3: Commitment to long-term economic and financial viability • Principle 4: Use of appropriate best practices by growers and millers • Principle 5: Environmental responsibility and conservation of naturalresources and biodiversity • Principle 6: Responsible consideration of employees and of individualsand communities affected by growers and mills • Principle 7: Responsible development of new plantings • Principle 8: Commitment to continuous improvement in key areas ofactivity

6. : PRINCIPLES & CRITERIA • Criterion 2.1 There is compliance with all applicable local, national andratified international laws and regulations. • Criterion 2.2 The right to use the land can be demonstrated, and is notlegitimately contested by local communities with demonstrable rights

7. : PRINCIPLES & CRITERIA • Criterion 2.3 Use of the land for oil palm does not diminish the legal rights, orcustomary rights, of other users, without their free, prior and informed consent. • Criterion 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.

8. : PRINCIPLES & CRITERIA • Criterion 6.3 There is a mutually agreed and documented system for dealingwith complaints and grievances, which is implemented and accepted by allparties. • Criterion 6.4 Any negotiations concerning compensation for loss of legal orcustomary rights are dealt with through a documented system that enablesindigenous peoples, local communities and other stakeholders to express theirviews through their own representative institutions.

9. : PRINCIPLES & CRITERIA • Criterion 7.5 No new plantings areestablished on local peoples’ landwithout their free, prior andinformed consent, dealt withthrough a documented system thatenables indigenous peoples, localcommunities and otherstakeholders to express their viewsthrough their own representativeinstitutions. • Criterion 7.6 Local people are compensated for any agreed land acquisitionsand relinquishment of rights, subject to their free, prior and informed consentand negotiated agreements.

10. : PRINCIPLES & CRITERIA • The National Interpretation relies for its compliance on the national or state laws. There is very little emphasis to move higher to achieve international standards.

11. : PRINCIPLES & CRITERIA • Community Participation is crucial to the verification process and the social and environment audits. • There must be inbuilt mechanisms for communities continued participation.