malaysian sustainable palm oil (mspo) - iipm.com.my mohd mokmin bahari...outlines introduction...

Malaysian Sustainable Palm Oil

(MSPO)

4th 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.

• 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

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 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

International Standard on

Sustainability

• 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)

• 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.

Malaysian Standard on MSPO -

Objectives

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

MS 2530:2013 – four

parts

1. Working Group

2. Technical Com.

3. National Com.

2

months

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

General principles for

independent

smallholders

23 35

MSPO Part 3

General principles for oil

palm plantations and

organised smallholders

33 117

MSPO Part 4 General principles for

palm oil mills 26 87


(MSPO) – Principles, Criteria and

Indicators

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

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


(MSPO) – Certification Procedures

• Results of the trial runs were

compiled and used for the

development of certification

procedure for the MSPO certification

scheme.



Trial runs

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

Stage 1

Audit

Certificate

Issuance

CB

Certification

Panel

Stage 2

Audit

Stakeholder

Consultation

MPOB & Public

Notification

Final Report

Panel Review Draft Report

Approve Annual

Surveillance

Audit

Re-

certification

Certification

Procedure of MSPO

Certification

Scheme

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, non-

discriminatory and credible.



List of certification body (CB)

Certifying Body Contact Person Telephone Fax

1 SIRIM QAS International

Sdn Bhd Ms. Radziah Mohd

Daud 03-5544 6432 03-5544 6763

2 DQS Certification (M) Sdn

Bhd Mr. Danny Ng 03-3342 3259 03-3358 3299

3 BSI Services Malaysia Sdn

Bhd 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

03-2267 2889

Ms. Camille Delaune 03-2267 2833

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



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

malaysian sustainable palm oil (mspo) - iipm.com.my mohd mokmin bahari...outlines introduction...

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