Malaysian Sustainable Palm Oil (MSPO) 4 th International Plantation Industry Conference and Exhibition (IPiCEX 2014) 24 25 November 2014 Kuching, Sarawak Mohd Mokmin Bahari, Ainie Kuntom, A. Kushairi, et. al. Malaysian Palm Oil Board
Outlines Introduction International standard on sustainability Malaysian standard on MSPO Objectives Development of MSPO Principles, Criteria & Indicators Certification Procedure and Process Conclusion
Introduction
Brundtland s Commission Report - United Nation s World Commission On Environment and Development Sustainable development is development that meets the needs of the present without compromising the needs of future generations to meet their own needs Sustainability People, Planet & Profitability (3Ps) Sustainable Agriculture Conserve agro-ecosystem, improve productivity, economic gains.
Malaysian Oil Palm industry Oil Palm Industry o Vital economic and social contributors o Increase quality of life o Felda scheme Expansion to encompass all the lower income and rural population o sustainable manner o enhance the living Inculcate sustainable practices
Malaysian Oil Palm industry Committed to sustainability Sustainable agriculture development o Social o environment o economic Profitability has to be balanced with protection of environment and enhancing welfare of workers and the surrounding community
International Standard on Sustainability International Sustainability and Carbon Certification (ISCC) for biofuel Roundtable Sustainable Biofuel (RSB) Both are based on EU Directives on Renewable Energy Government standard Indonesian Sustainable Palm Oil (ISPO) Government standard Roundtable of Sustainable Palm oil (RSPO) Developed by oil palm business fraternity Business standard Only involved major oil palm players
Hence development of a National Standard on MSPO to ensure all oil palm sectors can implement the standard and can be certified by relevant Malaysian stakeholders Malaysian Standard on Malaysian Sustainable Palm Oil (MSPO)
Malaysian Standard on MSPO - Objectives National standard on sustainability specific for oil palm applicable to all sectors of oil palm industry small, medium and large. Standard that comply to Malaysian Laws and ratified international laws. Standard based on a balanced three pillars of sustainability. To ensure that all Malaysian palm oil are produced in a sustainable manner and sustainably certified.
Draft MS SIRIM website 1. Working Group 2. Technical Com. 3. National Com. 2 months Public Comments Amended MS SIRIM Department of Standard Endorsed by YB Minister MOSTI (5 th September 2013) Published by SIRIM as MS2530 : 2013 Process for Malaysian Sustainable Palm Oil becoming Malaysian Standard MS 2530:2013 four parts
MS 2530-1:2013 Malaysian Sustainable Palm Oil (MSPO) Part 1: General principles
MS 2530-2:2013 Malaysian Sustainable Palm Oil (MSPO) Part 2: General principles for independent smallholders Individual farmers owns / lease < 40 hectares of oil palm farm and manage it themselves Requirements to establish, maintain and improve operation practices
MS 2530-3:2013 Malaysian Sustainable Palm Oil (MSPO) Part 3: General principles for oil palm plantations and organised smallholders Operational practices that leads to sustainable production of palm oil;
MS 2530-4:2013 Malaysian Sustainable Palm Oil (MSPO) Part 4: General principles palm oil mills Covers milling operations start from receiving of FFB until delivery of CPO and PK Applies to all factors affecting crude palm oil production including waste management
Comprises seven Principles, criteria varies depending on the sector independent smallholders, organized smallholders, plantations and mills Standard Title Criteria Indicators MSPO Part 1 General principles 34 MSPO Part 2 MSPO Part 3 MSPO Part 4 Malaysian Sustainable Palm Oil (MSPO) Principles, Criteria and Indicators General principles for independent smallholders General principles for oil palm plantations and organised smallholders General principles for palm oil mills 23 35 33 117 26 87
Principle 1 :Management commitment & responsibilities Policy on sustainable development (the implementation of MSPO) Internal audit Management review Continuous improvement
Principle 2 : Transparency Transparency of information and documents relevant to MSPO requirements Transparent method of communication and consultation Traceability
Principle 3 : Compliance to legal requirements Regulatory requirements Legal land use rights Customary rights
Principle 4: Social responsibility, health, safety and employment conditions Social impact assessment Complaints and grievances Commitment to contribute to local sustainable developments Employees health and safety Employment conditions Training and competency
Principle 5 : Environment, natural resources, biodiversity and ecosystem Environmental management programme Efficiency of energy use and use of renewal energy Waste management and disposal Reduction of pollution and emission Natural water resources Status of rare, threatened, or endangered species and high biodiversity value area Zero burning practices
Principle 6: Best Practices Implement standard best practices or as per respective companies policies Site management Economic and financial viability plan Transparent and fair pricing dealing Contractor
Principle 7 : Development of New Planting High biodiversity value Primary forest (no deforestation) Protection of nature Ecosystem Services Social and cultural values Peat land Social and Environmental Impact Assessment Soil survey Planting on steep terrain, marginal or fragile soils Customary land
Malaysian Sustainable Palm Oil (MSPO) Certification Procedures Awareness Programmes o Central region MPOB HQ,Bangi o North region Ipoh, Perak o South region Johore Baharu, Johore o East region Kuantan, Pahang o Sabah Sandakan o Sarawak - Miri Awareness course for auditors (CBs) International recognition documentation for submission to various authorities MSPO Pilot Audit
Malaysian Sustainable Palm Oil (MSPO) Certification Procedures Trial runs Results of the trial runs were compiled and used for the development of certification procedure for the MSPO certification scheme.
Malaysian Sustainable Palm Oil (MSPO) Certification Procedures MSPO Certification Scheme Malaysian Standard MS 2530 :2013 Certification procedures Guidance for the auditors and auditees Requirements for certification bodies Application forms Procedures for handling suspension, withdrawal, appeal and complaints Usage of MSPO logo Traceability (Chain of Custody)
Application Certificate Issuance MPOB & Public Notification Stage 1 Audit Stakeholder Consultation Stage 2 Audit Draft Report Approve CB Certification Panel Final Report Panel Review Annual Surveillance Audit Recertification Certification Procedure of MSPO Certification Scheme
Malaysian Sustainable Palm Oil (MSPO) Certification Procedures Requirements for certification body (CB) Independent bodies that provide conformity certificates to organisations for their various management systems, individual as well as product manufacturers and service providers. Competent to conduct MSPO audits Register with MPOB Accredited by STANDARDS MALAYSIA to ensure that the services provided are impartial, nondiscriminatory and credible.
Malaysian Sustainable Palm Oil (MSPO) Certification Procedures List of certification body (CB) Certifying Body Contact Person Telephone Fax 1 2 3 SIRIM QAS International Sdn Bhd DQS Certification (M) Sdn Bhd BSI Services Malaysia Sdn Bhd Ms. Radziah Mohd Daud 03-5544 6432 03-5544 6763 Mr. Danny Ng 03-3342 3259 03-3358 3299 Mr. Samuel Chan 017-613 9631 01-7960 5801 4 SGS (Malaysia) Sdn Bhd Mr Kenny Looi 03-2095 9200 03-2095 9611 5 Bereau Veritas Certification Mr. Tan Ket Tiong 03-2267 2888 Ms. Camille Delaune 03-2267 2833 03-2267 2889 6 TUV Nord (M) Sdn Bhd Mr. Robert Chong 03-8023 2124 03-8023 4410 7 Intertek Certification International Sdn Bhd Dr. Ooi Cheng Lee 03-92283 9881 03-9284 8187
Malaysian Sustainable Palm Oil (MSPO) Certification Procedures MSPO Pilot Audit 6 CBs participated in Pilot Audit. 7 mills, 7 estates and 2 independent smallholder clusters participated in Pilot Audit. 6 mills, 6 estates and 2 independent smallholder clusters already complied with the MSPO requirements. Pilot audit on 5 independent smallholder clusters in progress.
Conclusion
MS for Malaysian Sustainable Palm Oil is a national standard, which the oil palm industry should be proud to implement in their premises National scheme to address the issues on sustainability specifically for oil palm, which is an agricultural crop Another option for the Malaysian oil palm industry to implement sustainable agriculture requirements and sustainably certified.
Ensuring the continued success and competitiveness of Malaysian Palm Oil