ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

Sustainable Certification In Palm Oil - Always A Work In Progress

By: 3BL Media

By Carolyn Lim

SOURCE: Musim Mas

DESCRIPTION:

Over the years, sustainability certification systems across various commodities have been both praised and criticized. In particular, the RSPO (Roundtable on Sustainable Palm Oil) has been under intense scrutiny. Greenpeace, Environmental Investigation Agency, and other NGOs have highlighted gaps and areas of improvement for sustainable palm oil and other sustainability certification schemes[1].

First – let’s explore why it works for business. Voluntary, multistakeholder schemes such as the RSPO have seen certification allowing for ‘sustainable’ goods exchanges between the Global South and the North, in a framework managed by the parties most involved (read producers, users, and NGO/CSO). Additionally, as a corporate with comprehensive operations, a certification scheme offers a structured approach to set up processes buttressed by robust governance to ensure that sustainable practices are implemented consistently and efficiently throughout the organization.

Indeed, there are limitations and room for improvement as we better understand issues on the ground, as with any set of rules, voluntary or mandatory. So, we ask ourselves: How do we further improve the RSPO? How do we reach interested stakeholders who might not want to join the RSPO but have ideas for further improvement? The Palm Oil Innovation Group (POIG) was formed to raise the bar for the RSPO by developing and implementing innovations beyond the 2013 RSPO standard. In 2015, Musim Mas was invited to join POIG and remains the only Southeast Asian member. (In 2019, Musim Mas became verified as compliant with the POIG standard.)

When the RSPO Principles and Criteria (P&C) 2018 was developed and endorsed, as a member of POIG, we welcomed it since it presented substantive improvements to the certification standards. It included elements of POIG, notably the High Carbon Stock Approach (HCSA) toolkit, and stricter NDPE restrictions such as no planting on peat regardless of depth. The new standard showed that RSPO was ready to adopt best practices established by POIG and already demonstrated by its members. Far from being an unambitious group, the RSPO demonstrated it is aiming for the best possible impacts.

RSPO may not be perfect, but it has led the way towards establishing and maintaining deforestation- and exploitation-free physical supply chains that connect producers and consumers. It allows us and our peers to challenge and improve our practices and dialog about companies’ challenges. Yet, we are mindful that RSPO certification is not static and is a work in progress. Our presence at the RSPO Board of Governors and active involvement in the organization allow us to address the challenges faced by the members while supporting the improvement of the standard.

For RSPO to make sustainable palm oil the norm, it needs stakeholders to appreciate its value that it supports and encourages further progress by being the most accessible platform for all to explore issues and challenges in a constructive manner. It also allows financial rewards for producers and a way to show progress for consumers of palm oil.

[1] https://eia-international.org/wp-content/uploads/WWtW2-spreads.pdf 

Tweet me: Sustainability certification systems across various commodities have been both praised and criticized. In particular, the RSPO (Roundtable on Sustainable Palm Oil) has been under intense scrutiny. @MusimMas https://bit.ly/3oQB5k3

KEYWORDS: Musim Mas, sustainability, Palm Oil

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.