While speaking on a panel at the GreenBiz 19 Supply Chain Transparency Summit in Phoenix, Arizona, RSPO’s Interim Director of Outreach and Engagement and North American representative, Dan Strechay, reinforced the need for shared responsibility across the palm oil supply chain:
"At the end of the day, quite honestly, it’s not a material cost. A consumer is not going to feel the impact of moving from a conventional material to a sustainably sourced alternative for palm oil. [Companies] may not want to pay it, and I understand that, but I think it’s actually beholden on companies to do the right thing. It has to be a cost of business, has to be a shared responsibility in assuming these costs and if a grower is going to take the time to implement these programmes, you have to reward the good companies that are trying to make this transformation,”
Companies shifting to certified sustainable palm oil
Meanwhile, some companies placed a focus on moving the industry towards the use of physical certified sustainable palm oil only. "BASF does not use the ‘Book & Claim’ option to cover its existing gap in the certified palm product supply chain, because we focus on physical transformation," said Prerna Chatterjee, Marketing Manager, Sustainability at BASF. Although the company does not currently purchase 100% RSPO-certified palm products (only 70% of the palm kernel oil they purchased in 2018 was certified), they have committed to a time-bound plan to do so by 2020.
Outlining the benefits of new RSPO rules
Along with Prerna Chatterjee of BASF and Jon Hixson of Yum! Brands, Dan also highlighted that credits will play an extremely important role in motivating smallholders to implement best management practices to improve the sustainability of their farms, under the new RSPO rules. He also encouraged companies to help drive change on the ground by participating in smallholder education programs or working with provinces or jurisdictions to codify best management practices into local regulations.
Collaboration between RSPO members: the path to CSPO in North America
In addition to speaking on the panel, RSPO’s North American team hosted a small dinner for existing and prospective RSPO members to discuss the Principles and Criteria (P&C) 2018. Attendees used this opportunity to discuss sustainable palm oil policies and ways in which they could collaborate with other RSPO members to achieve 100% CSPO in the North American market.
Held from 26 to 28 February, the GreenBiz Conference is an annual event that brings sustainable professionals together to discuss the challenges and opportunities in sustainable business. Sustainable palm oil sourcing and responsible supply chain strategies were part of the points discussed at the conference. Read more about the event here.
