European overview: Certified Palm market Marie Lavialle-Piot Tropical Oil Sustainability Lead, Cargill
Our foundation
Operating a global supply chain Refining plants Mills Plantations
Our commitments No No Exploitation Deforestation of rights of indigenous of High Conservation people and local value or High Carbon No communities stock areas Inclusion of Development smallholders on peat into sustainable regardless of palm supply chain depth 100% TRACEABLE, TRANSPARENT & SUSTAINABLE PALM SUPPLY CHAINS BY 2020 Global Palm Sustainability update
Our 2020 Goals Sustainable Smallholders Traceability Supplier Plantations Smallholders in our supply Engagement All palm oil volumes we chain are included, and produce, trade (ship & Our own plantation HCS, HCV and peat areas engaged in sustainable practices are aligned with physically handle) and process are conserved, and land, practices. Cargill’s NDPE policy and will be traceable to sustainable labor and human rights are . mill and plantation level by uphold the highest respected in our third party 2020 palm supply chain standards
Traceability 100% Traceability to plantation in 100% Traceability 100% Traceability to plantation in all high risk landscape to mill level landscapes Traceability 2015 2019 2020 GEOS EU traceability score to Plantation level 100% 90% 80% 71% 100% 66% 70% traceable to 60% 47% 50% plantations 35% 40% 33% by 2020 30% 23% 20% 18% 20% 10% 0% CPO PKO Q1 2017 Q2 2017 Q3 2017 Q4 2017
7 Regional update: LATAM 2017 COLOMBIA • 2 mill visits and 4 technical workshops • 2 NDPE workshops • 4 mills actions plans and (2016) follow-up • Partnership on human rights issues • New Cargill resource (1 FTE) to support implementation GUATEMALA • One new mill visit • Two NDPE workshop • BRAZIL REPSA grievance and stakeholders • NORAD/TFT partnership: Smallholders project engagement • addressing livelihood & deforestation (HCV/HCS) Building partnership on smallholder • 3 deep & 4 broad engagements with Solidaridad • 148 people trained • 5 workshops: No exploitation of people
Growing import from LatAm in Netherlands Source: Eurostat
Market of certified products in Europe (2017/18) Palm import EU 8 Millions MT 1,5 M MT RSPO SG 0,5 M MT MB LATAM Palm export into EU 1,5 Millions MT (Out of 4M MT production) Source: Fediol, USDA, Oil Annual world production of palm oil : +/- 60 millions MT World
Volumes of certified palm oil (Supply & Demand) Blue: Supply Orange: Demand Source : RSPO Source: rspo.org
Customer benefits of sourcing RSPO palm? RSPO IS THE STANDARDS THE MOST USED TO PROMOTE SUSTAINABLE PRACTICES • Sustainable palm supply chain protecting forest, workers, communities and human rights, increasing small farmer income • Increased transparency, traceability & credibility through independent 3 rd party verification • A common standards that allow comparison across the industry
RSPO logo on product? • Many of customers do not want to emphasize the presence of oils and fats in their product • Palm debate around health & contaminants e.g. 3MCPD • Brands desire to embed sustainability commitments, some are moving away from multi labelling of certification logos • Even without labelling, companies keep sourcing certified ingredient to demonstrate the integrity of their product in line with their commitments
What happens in Europe? • 2016: European Commission presented a proposal for a recast of the Renewable Energy Directive (RED II) to accelerate the uptake of renewable energy • 2017: European Parliament adopted an amended report (a report only) proposing the ban of palm oil • Today: Negotiations are still on going to arrive to a compromise/agreement (latest March 2019) • Is ban of palm oil WTO compatible?
LATAM has a unique opportunity to position itself as a leader in sustainable palm oil • All customers needs to demonstrate compliance with their NDPE policy by 2020 • Convergence of NDPE requirements with RSPO P&C • Increasing demand in Europe from customers to move from mass balance to segregated • Europe is debating its’ position on palm oil & sustainability • Growing demand for LatAm products • Traders/refiners to work with trusted and preferred suppliers
Recommend
More recommend
