Sustainability

RSPO

IOI Group’s commitment to RSPO on the plantation, mills and refineries

Roundtable on Sustainable Palm Oil (RSPO) which is a global multi-stakeholder initiative on sustainable palm oil was formally established under Article 60 of the Swiss Civil Code on 8 April 2004. The objective of RSPO is to promote the growth and use of sustainable palm oil through co-operation within the supply chain and open dialogue between its stakeholders. RSPO is promoting the development of a globally acceptable credible definition of sustainable palm oil production and use and the implementation of better management practices that comply with this definition. The RSPO encourages members to actively participate in the development of the criteria and undertake practical projects to facilitate implementation of better management practices along the supply chain. For more information, please refer to http://www.rspo.org/

At IOI we are committed to the production of palm oil in a sustainable manner based on economic, social and environmental viability. Our parent company, IOI Group is a founding member of RSPO and is on the executive board. With their active contribution and support we aspire to supply our customers with products from sustainable and environmental friendly practices.

RSPO Oleochemicals

The RSPO Home and Personal Care (HPC) Derivatives Technical Working Group worked under the Trade and Traceability Standing Committee to propose the Book and Claim rule for oleochemicals and derivatives. The rule was subsequently approved by the RSPO Executive Board in November 2011 and served as the sole rule governing the trade of sustainable oleochemicals and derivatives. Under circumstances then where it is not yet feasible to have physical segregation and traceability the GreenPalm programme works by bypassing the physical supply chain completely. It is a straightforward, flexible and easily implemented system that allows our end consumer manufacturer customers to support RSPO and communicate to their customers their support of the production of sustainable palm oil.

RSPO-certified Palmac ®, Palmsabun ® and Palmsurf ® Oleochemicals

The ASEAN Oleochemical Manufacturers Group (AOMG) led by IOI Oleo worked on and submitted the first draft for physical transition rules for certified oleochemicals at the end of May 2012. The final version was approved by the RSPO Standing Committee Trade and Traceability and RSPO Executive Board in June and July 2013 respectively. Whilst an important milestone has been reached there is still more work to be done for physically certified oleochemicals and its derivatives to reach the end consumer.

Palmac ®, Palmsabun ® and Palmsurf ® are midstream products which mean that our products will be used by one or more players along the supply chain before it reaches the end consumer. The players who want to claim that their products are RSPO-certified need to take several steps
1. Register as a member with RSPO
2. Be SCCS certified
3. At least 95% of all palm-derived components in their product is RSPO-certified
4. Apply for a license to use the appropriate RSPO Trademark

As the manufacture of oleochemicals and its derivatives is highly versatile, the processes appear to be complicated and many Certifying Bodies, RSPO officials and customers find that difficult to understand.
Capitalizing on our leadership role in the development of the physical transition rules for oleochemicals, IOI Oleo has taken several steps to keep our marketing team, agents, distributors and other agencies informed and guided. These include:
1. Training sessions for employees for both the Penang and Johor manufacturing sites
2. RSPO workshop for regional Certification Bodies and RSPO officials
3. Jointly co-authoring a presentation on RSPO Oleochemicals for PIPOC 2013 Conference
4. Regular updates in the IOI Oleo Sales Portal