Malaysian Palm Oil Board, PO Box 12600, Kuala Lumpur Malaysia

MALAYSIAN SUSTAINABLE PALM

OIL (MSPO)

PART 1

GENERAL PRINCIPLES FOR

MALAYSIAN SUSTAINABLE PALM

OIL

MALAYSIAN STANDARD

MS 2530-1:2013

Content of Presentation

• Introduction

• Development of MSPO

• Malaysian Standard –

Malaysian Sustainable

Palm Oil (MSPO) –

MS2530:2013

• Scope of MSPO

• Principles of MSPO

• Procedure for MSPO

Certification

• Conclusion

Introduction

• Sustainability challenging issue face by oil palm industry

• OP industry committed to sustainable development

• Malaysian oil palm industry highly regulated industry

• Their commitment to social, environment and economic development – 3Ps – implementation of foreign sustainability scheme in their premises.

Sustainable Standard

• International Sustainability and Carbon

Certification (ISCC) – for biofuel

• Roundtable of Sustainable Palm oil (RSPO)

• Developed by oil palm business fraternity

• Not all oil palm groups are included in RSPO

eg. MEOA, POMA, etc

• Hence development of MSPO to ensure all oil

palm groups can be sustainably certified

MPOB is Standard Writing Organization

(SWO) appointed by SIRIM Berhad.

MPOB – Manages MS for oil palm and products

Two committees

Technical Working

Committee

National Committee

Comprise – members of industry, relevant

government agencies, universities, relevant

stakeholders.

Development of Malaysian Standard

(MS) MSPO

MSPO - Four parts

• General principles

• Principles for Independents Small Holders

• Principles for Plantation and Organized

Small Holders

• Principles for mills

Public Comments

Important to take into account all comments for all

stakeholders who have interest in the standard.

Posted on SIRIM website for 2 months.

Draft MS

SIRIM website

Public Comments

Amended MS

SIRIM

Department of

Standard

Endorsed by YB Minister MOSTI

(5th September 2013)

Published by SIRIM as

MS2530 : 2013

Process for

Malaysian

Sustainable

Palm Oil

becoming

Malaysian

Standard

Malaysian Standard – Malaysian

Sustainable Palm Oil (MSPO)

MS2530:2013

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

MS 2530-3:2013 –

Malaysian Sustainable

Palm Oil (MSPO) Part

3: General principles

for oil palm plantations

and organised

smalholders

MS 2530- 4:2013 –

Malaysian

Sustainable Palm Oil

(MSPO) Part 4:

General principles

palm oil mills.

Scope of MSPO

MSPO Part 1: General principles

General requirements

sustainable production of palm

oil.

Covers supply chain

smallholders, plantation and mills

Includes management systems

oil palm cultivation and palm

oil production

Sustainable (balanced)

development under the

framework of 3Ps People,

Planet & Profit.

MSPO standard based on this

conceptual framework.

Principles of MSPO

MSPO Part 1: General principles 7

principles & 28 criteria

4.1 Principle 1 : Management commitment &

responsibilities

4.1.1 Policy on the implementation of MSPO

4.1.2 Internal audit

4.1.3 Management review

4.1.4 Continuous improvement

4.2 Principle 2 : Transparency

4.2.1 Transparency of information and documents relevant to

MSPO requirements

4.2.2 Transparent method of communication and

consultation

4.2.3 Traceability

4.3 Principle 3 : Compliance to legal requirements

4.3.1 Regulatory requirements

4.3.2 Legal land use rights

4.3.3 Customary rights

4.4 Principle 4 : Social responsibility, health, safety

and employment conditions

4.4.1 Social impact assessment

4.4.2 Complaints and grievances

4.4.3 Commitment to contribute to local sustainable developments

4.4.4 Employees health and safety

4.4.5 Employment conditions

4.4.6 Training and competency

4.5 Principle 5 : Environment, natural

resources, biodiversity and ecosystem

4.5.1 Environmental management programme

4.5.2 Efficiency of energy use and use of

renewal energy

4.5.3 Waste management and disposal

4.5.4 Reduction of pollution and emission

4.5.5 Natural water resources

4.5.6 Status of rare, threatened, or endangered

species and high biodiversity value area

4.5.7 Zero burning practices

4.6 Principle 6: Best Practices

4.6.1 Implement standard best practices

or as per respective companies’

policies

4.6.2 Site management

4.6.3 Economic and financial viability plan

4.6.4 Transparent and fair pricing dealing

4.6.5 Subcontractor

4.7 Principle 7 : Development of New Planting

4.7.1 High biodiversity value

Primary forest (no deforestation)

For protection of nature

Ecosystem Services

Social and cultural value

4.7.2 Peat land

4.7.3 Social and Environmental Impact

Assessment

4.7.4 Soil survey

4.7.5 Planting on steep terrain, and/or on

marginal and fragile soils

4.7.6 Customary land

Procedure for MSPO Certification

Table 1: Procedure for MSPO Certification

Process Action to be taken Action by

Development of MSPO System Develop the System Secretariat

Operation of MSPO System Conduct Internal Verification Secretariat

Application

Application for Certification Submit Application Applicant

Stage 1 Audit

Document Audit Audit Document Conformance

Certifying Body Face-to-face Audit Conduct Face-to-face Audit

System Operation Audit Audit Actual Operation

Stage 2 Audit

Site Audit at Smallholding

Checking of Evidence Certifying Body

Site Audit at Estate

Site Audit at Mill

Evaluation of Audit Report Review and Recommendation

Award of Certificate Decision Governing Body

Conclusion

Transparency elements enable interested parties to gauge

the relevance and applicability of the MS for the different

sectors and geographical areas

Malaysian Standard (MS) on MSPO provides guidance for

the quantification, communication and verification of the

sustainability Principles and Criteria

MSPO is transparent for the benefits of producers, traders,

consumers, public and regulatory bodies

Conclusion

Malaysian Standard on MSPO

• minimise ambiguity and allow stakeholders along supply chain

• use reference methodology to reduce environmental impact

• assist consumers based on informed decision

• invoke better appreciation of both producers and consumers on the seriousness of the informed process laid out by the MS and genuine efforts along the supply chain

• enhancing market awareness.

Audits and surveillance will facilitate the continuous

monitoring and improvement of sustainable palm oil

production

Thank You for Your

Kind Attention