How does RSPO measure up to climate change?

Transcription

1 How does RSPO measure up to climate change? Moderated by: Peter Knight - Context Group Dr Cecile Bessou CIRAD Anne Rosenbarger - World Resources Institute Frazer Shepherd Lanier Citigroup Laurent Cremona - Ferrero Dr Christopher Stewart - Olam Premium Partners Media Partners Reception Partner Partners

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3 CLIMATE CHANGE DEBATE SESSION Cécile Bessou Cirad

4 Greenhouse Gas Assessments Several guidelines* but ONE principle = the sum up of greenhouse gases along a value chain according to their respective global warming potentials following LCA *IPCC, European Directive-RED, ISCC, Carbon footprint... LCA: Life Cycle Assessment is the standardised framework for assessing impacts along value chains (ISO series) Life Cycle approach is mandatory to avoid hidden problem shifting

5 RSPO PalmGHG PalmGHG is based on LCA and captures >95% GHG emissions along the supply chain up to oils It allows for identifying: - emission hotspots - reduction tracks - problem trade-offs It is included in the revised Principles & Criteria 2013 It is being continuously updated & improved by RSPO working groups (i.e. ERWG) PalmGHG system boundary In Bessou et al. 2014* * Bessou, C., L.D.C. Chase, I.E. Henson, A.F.N. Abdul-Manan, L. Milà i Canals, F. Agus, M. Sharma, and M. Chin Journal of Cleaner Production 73:

6 PalmGHG results GHG balance varies greatly from low/negative value up to several tco2e/tcpo 22 parameters tested on PalmGHG v1 (Bessou 2016 ** ) 5 parameters particularly sensitive: tpome/tffb kgch 4 /tpome Default drainage depth for peat (cm) tco 2 /ha.yr for peat cultivation Carbon stocks in previous land uses ** Bessou C PalmGHG, RSPO greenhouse gas calculator, scientific background. In : Sustainable palm oil and climate change: The way forward through mitigation and adaptation. ICOPE Conference, Bali

7 Peat emissions Hooijer et al Peat CO 2 (t CO 2 /ha.year) = 0.91 x Drainage depth (cm) Default drainage depth without active management: 100cm Default drainage depth with active management: 60cm RSPO s BMP on peat strongly recommends that regular water level monitoring is carried out and provides guidance Peat N 2 O (kg N-N 2 O/ha.year) = 16 (IPCC 2006 constant) cecile.bessou@cirad.fr

8 Impact of direct land use change Previous land use Oil palm stand Land use types tc/ha Undisturbed forest 268 Disturbed forest 128 Shrubland 46 Grassland 5 Tree crops 75 Food crops/annual crops 8.5 Based on the crop growth model by Henson 2005, 2009 Stock difference Tier 1 method IPCC 2006 Carbon stock difference is amortised over the crop cycle length (25 years) Soil organic carbon change is not accounted Own measurements are the preferred option cecile.bessou@cirad.fr

9 Key messages Awareness on GHG issues has increased and sound tools have been made available to quantify potential impacts For GHG, key factors are peat soil cultivation, carbon stock in previous land use, and POME treatment Other impacts must also be considered: environmental as well as the socio-economic ones => importance of developing scientifically robust indicators for all the sustainability dimensions

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11 HOW DOES RSPO MEASURE UP TO CLIMATE CHANGE? Anne Rosenbarger World Resources Institute

12 Remarkable progress in corporate sustainability commitments but challenges remain Source: RSPO Impacts page, Updated April 2016

13 Better information. Better supply chain management. commodities.globalforestwatch.org

14 Identifying issues measuring and reporting progress

15 Working with the RSPO to monitor fires

16 From traceability to supplier engagement

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18 HOW DOES RSPO MEASURE UP TO CLIMATE CHANGE? Frazer Shepherd Lanier Environmental and Social Risk Management - Citigroup

19 The Role of Environmental and Social Risk Management at Citigroup: To mitigate financial and reputational risk stemming from project related financial activities and high risk sectors. Palm oil is considered a high risk sector - all clients involved in upstream palm oil activities are required to be 100% RSPO certified We also advise clients on sustainable financial solutions such as Green Bonds, which can leverage certification scheme principles and criteria to demonstrate environmental and social benefits to investors.

20 Onboarding & Annual Reviews Fire and Haze prevention and suppression use of global fire watch Fire incidents require proof on implementation of best international practices for fire prevention Lack thereof means need for action plan developed by 3rd party Land clearance of HCV, peat lands and HCS requires corrective action plan

21 Real time alerts with GFW Establish client plantations in GFW system by providing oversight we are contributing to a system of accountability Set alerts with new GLAD near-real-time data system when deforestation in areas of concern (i.e. alliance for zero extinction) Use process of investigation, response, corrective action and if no improvement, exit relationship.

22 Land Use Change is responsible for ~11% of total global greehouse emissions in 2015 Fires in Indonesia last year alone accounted for 1.62 billion tons of CO2e of making it the 4 biggest emitter of GHG More a watchful eye by financial institutions helps mitigate Tools like GFW make our oversight more effective An ever evolving RSPO will also help in increasingly better principles and criteria and their implementation In addition to oversight, we provide guidance to companies that want positive opportunities to finance their sustainability solutions and be recognized for their efforts. Green Bond solutions for Ag and Upstream retailors is doing this.

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24 HOW DOES RSPO MEASURE UP TO CLIMATE CHANGE? Laurent Cremona Ferrero

25 Large trusted brands have a key task in driving the industry on responsible supply chains. Because these brands are the front contact with consumers. And people at home expect that all the supply chain behind is clean.

26 We cannot wait for growers to take the lead on sustainable development. Large trusted brands need to lead the industry trasformation. And what our consumers simply ask for is that no trees have been irresponsibly cut to make the product they love.

27 This is why Ferrero has been the first big FMCG company: -to reach 100% of segregated CSPO in all products - (2015) - to trace 100% of its oil back to the plantation - (2016) -to set up an ambitious no deforestation- no exploitation charter that rises the bar of sustainable supply - (2013) -to join the Palm Oil Innovation Group (POIG) - (2015)

28 As a consequence, Ferrero is praised for its active role in protecting forests:

29 Three key points of our Ferrero Charter aim at reducing GHG: 1. Providing fully traceable oil, while including smallholders. 2. Not clearing High Carbon Stock forests. 3. Not using fire to clear land. 4. Not planting on peat soils. 5. Protecting orang-utans and other endangered species by maintaining High Conservation Value areas. 6. Reporting on the greenhouse gas emissions of their production. 7. Respecting human rights, including the right to Free, Prior, and Informed Consent of indigenous and local communities. 8. Recognizing, respecting and strengthening the rights of workers. 9. Not using Paraquat. 10. Actively fighting corruption.

30 There are 800 different definition of forests In April 2015 Ferrero endorsed the HCS Approach, a practical guide to identify tropical forests for conservation and degraded lands for potential plantation development. The threshold is between Scrubs and Young regenerating forest

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32 SUSTAINABLE PALM OIL PLANTATIONS IN GABON: FROM VISION TO REALITY Palm plantations can be positive for Biodiversity, People and Climate Dr Christopher Stewart Head of Environment and Sustainable Development, Olam International in Gabon

33 Vision: Profitable plantations, living landscapes, thriving communities

34 Case Study: Olam Palm Gabon, Mouila landscape - HCV, HCS and Carbon Savannah Secondary regrowth Logged/degraded forest Tall mature forest

35 RSPO Safeguards 1: Free Prior & Informed Consent a Social Contract

36 RSPO Safeguards 2: ESIA, HCV and Spatial Planning Landscape Approach

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38 HCS+ Model of Mouila Lot 1 Carbon Balance over 25 years HCS+ outcomes (model) HCS+ Study: HCS + HCV fixes 1.67 Mt C, planting 21% of area Olam s Actual Spatial Plan: Conserving HCV alone fixes 47,000 t C, planting 49% of area

39 High Carbon Stock: Not a silver bullet ( years) 180 tonnes C/ha Gabon Average (all land uses) 118 tonnes C/ha Gabon Secondary Forest average Utility to rural subsistence farming/ smallholder communities (30 years) (10 years)

40 Lessons Learned Carbon Neutral Plantations 1. Sustainable C-Neutral or C+ plantations are possible. You need low starting C stocks, large conservation set-asides, or both. 2. Positive outcomes for biodiversity, social aspects and carbon can be achieved through RSPO s existing tools (ESIA, HCV, FPIC). 3. C balancing provides an incentive for industry to retain forest conservation areas but active management is complex and costly 4. In regions where almost ALL land is HCS, a robust political land use planning and landscape approach offer an alternative to thresholds to balance climate, conservation and economic development goals.

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