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The unsustainable production and expansion of palm oil poses a major threat to the world’s tropical forests and peat lands. Over 85% of palm oil is grown in Indonesia and Malaysia, where the industry has been criticised for damaging the environment.
Rainforests rich in biodiversity, including the habitat of the iconic and endangered orang-utan, have been lost.
Peat lands, which store vast amounts of carbon, have been severely degraded contributing significantly to global greenhouse gas emissions.
The global demand for palm oil in food, cosmetics and for biofuel is expected to double by the middle of this century pushing production to new frontiers across Asia, Africa and Latin America. Palm oil is now produced in over 20 countries worldwide presenting a host of new challenges and opportunities.
Only by engaging all stakeholders – local, regional and national governments, companies, local communities and other non-governmental organisations (NGOs) – can we find a systemic solution to the palm oil problem.
If done right, palm oil industry development can be a positive driving force for jobs, food security and conservation.
International and national sustainability standards are making a difference to help embed legal, environmental, social and economic considerations into the palm oil supply chain.
Fauna & Flora International (FFI) believes that by working constructively with palm oil companies and the influencers of the palm oil sector we can avoid further environmental degradation.
In geographies where palm oil poses threats and opportunities to our conservation goals, we are well placed to take action through our country teams and networks to make a positive change.
We promote sustainable production, enable better integrated landscape-level land-use planning and work to improve policies that enable conservation in oil palm dominated landscapes.
We have been engaging with the palm sector since 2007 to:
- West Kalimantan, Indonesia.
- Tanintharyi Region, Myanmar.
The RSPO was formed in 2004 to promote the growth and use of sustainable palm oil products through credible global standards and engagement of supply chain stakeholders from business, government and the NGO sector.
By August 2014, 18% of global palm oil production was RSPO certified sustainable.
FFI has been a member of the RSPO since 2007 and has been active in Working Groups and RSPO processes in the following themes:
There is still a long way to go to transform the sector and although the RSPO has room for improvement it is a useful tool to influence landscape-wide change.
FFI uses the standard to support companies to achieve RSPO certification, raise awareness on sustainability and conservation generally, and influence the activities of companies that do not have commitments to sustainability.
The standards provide guidance to improve individual farms and plantations; they work best for conservation when ‘go’ and ‘no-go’ areas for production have been identified through a landscape-level planning process.
Governments can help enable sustainable development by setting appropriate policies and promoting approaches required by these standards to move the industry forward.
The High Conservation Value (HCV) approach is required by many agricultural certification standards including the RSPO to identify and manage biological, ecological, social or cultural features of outstanding significance or critical importance.
This includes habitats for endangered species and carbon storage and the provision of freshwater for communities. In production landscapes the HCV approach provides a practical tool for natural resource management and land-use planning when properly applied. It can be used on farms, plantations or across a landscape to guide management.
HCV assessment and management lays the foundation for our practical conservation projects in oil palm landscapes. FFI experts and partners carry out quality HCV assessments on plantations for palm oil companies, and across landscapes for governments.
We provide support and technical assistance to develop National Interpretations of the HCV toolkit to make them relevant to a country’s specific context. We are active on the HCV Resource Network Steering Group.
West Kalimantan, Indonesia has been the focus of FFI’s orang-utan and peat land conservation projects since the 1990’s.
Since 2007 we have mobilised support from local government agencies, NGOs, local communities and forestry and palm oil companies such as Cargill to identify and assess HCV at concession and landscape levels in two districts. The results have been integrated into district spatial plans to help avoid palm oil and other development on land with HCV.
To support long-term management of HCV we have helped to change local legal regulation, working to designate 22 village forests which secure forest against conversion and ensure benefits to local communities.
We are also investigating carbon-financing possibilities for communities and companies.
Tanintharyi Region, Myanmar is home to 2.5 million hectares of largely intact Sundaic lowland forest. This is the location of Myanmar’s growing palm oil industry. Concepts of sustainability are new and recent reforms in the country mean there is a window of opportunity for sustainable palm oil sector development but also potential for rapid change.
We are increasing knowledge and capacity to use HCV in landscape-level land-use planning and raising awareness about sustainable palm oil among companies and government to inform policy and practice.
For more information please see the information sheet (downloads as pdf)
Liberia is home to large sections of globally important Upper Guinean lowland forest where FFI has worked since 1997.
In 2011, FFI recognised an opportunity to influence the emerging palm oil sector in Liberia. We developed the Liberian National Initiative which influenced the designation of 500,000 hectares of new oil palm concessions and supported the sustainable development of the country’s palm oil sector.
FFI also convened the National Interpretation of the RSPO P&C for Liberia and Sierra Leone and was involved in the National Interpretation of the HCV toolkit for Liberia.
The Natural Value Initiative, a collaboration of finance and business organisations led by FFI, provides research findings and a toolkit to enable investors in the agriculture, food and beverage and retail sectors to understand and manage the impacts of their investments on biodiversity and ecosystem services.
To meet our conservation goals, FFI works directly with companies that commit to moving towards sustainable and responsible production.
We endeavour to create enabling conditions for conservation and sustainable production in oil palm dominated landscapes whilst limiting the negative impacts of poor-performers through policy and planning improvements.
Our approaches are context appropriate and lead to innovative solutions as a result of working together.
“To meet our conservation goals, FFI works directly with companies that commit to moving towards sustainable and responsible production of palm oil.”