market research report: environmental monitoring and

Marketresearchreport:Environmentalmonitoringand

softwareusebyoilpalmgrowers

ZoologicalSocietyofLondonSophiaGnych,MichalZrust,LauraD’Arcy,DollyPriatna

Zoological Society of London, Indonesia Office, Jl. Gunung Gede I No. 11A, Bogor 16151,

Indonesia

BACPDeliverable:Resultsofmarketresearchonsuitabilityofthevarioussoftwareanddatabasesincurrentuse,andidealmethodfordisseminationand

uptake.April2012

Marketresearchreport:Environmentalmonitoringandsoftwareusebyoilpalmgrowers

TheZoologicalSocietyofLondon 2

TableofContents

ListofFigures ..................................................................................................................... 2Executivesummary .......................................................................................................... 3

Introduction........................................................................................................................ 4Purposeandmission................................................................................................................. 4Situationalanalysis ................................................................................................................... 4

Methods ................................................................................................................................ 8Results................................................................................................................................... 9Qualitativeresearch.................................................................................................................. 9QuantitativeResearch ............................................................................................................10

Discussion..........................................................................................................................20Conclusion .........................................................................................................................23

References .........................................................................................................................25Appendices ........................................................................................................................25

ListofFiguresFigure1:Sizeofcompanyconcession..………………..……………………………………….……..10Figure2:PercentageofconcessionthathasundergoneHCVassessment…………….…..11Figure3:PercentageofHCVareasundergoingmonitoring………………………….………..11Figure4:Currentenvironmentalmonitoringundertakenandfrequencywithwhichitiscarriedout…………………………………………………………………...………………..…………....…12Figure5:Teamsresponsibleforanalysisofenvironmentalmonitoringdata……..……..13Figure6:Frequencyofenvironmentaldataanalysis…………………..………………………..13Figure7:Modeofdeliveryofenvironmentaldatatoseniormanagement………………..14Figure8:Numberofstaffresponsibleforenvironmentalmonitoring……………………..14Figure9:NumberofstaffwithHCVtraining……………………………..………………………..15Figure10:Respondentsinterestinenrollingtheirstaffinenvironmentalmonitoringtraining………………………………………………………………………………………………………....15Figure11:Preferredmethodofdeliveryforenvironmentalmonitoringtraining………16Figure12:Respondentsinterestinuseofenvironmentalmonitoringsoftware………...16Figure13:Respondentsinterestinuseofenvironmentalmonitoringsoftware………..17Figure14:Preferredmethodofpaymentfortrainingandsupport………………………....17Figure15:Aspectsofenvironmentalmonitoringsoftwareratedbyimportance……....18Figure16:Featuresofenvironmentalmonitoringsoftwareratedbyusefulness……....18Figure17:Currentsoftwareuseamongstgrowers…………………..…………………………...19



ExecutivesummaryMarketresearchconductedbyZSLbetweenFebruaryandApril2012 indicatesthatcurrentenvironmentalmonitoringofHCVareaswithinoilpalmplantationsislimitedandsotooistheuseofbasicsoftwaretostoreandanalysedata.Thisresearch reflects current criticism of the RSPO byNGO groups and themedia,who argue thatmembership reporting requirements, especiallywith regard toenvironmental monitoring and management, are inadequate. Monitoring iswidelyseenasanecessarypartofsuccessfulmanagementhoweverthereislittlecapacity at growers level to develop standardised monitoring protocols andlimitedscientificallyrobustevaluationofmanagementpractices.Despite the availability of environmental monitoring software designedspecifically for the agricultural sector, usage amongst palm oil growers isvirtually non‐existent. This can be attributed to limited knowledge of thesoftwaresystemsavailableandalackoftechnicalandfinancialcapacitytomakeuseofthem.Apractical,easytouseandcomprehensivesoftwareprogrammefordata storage, analysis and output would improve monitoring, analysis andreporting. Itwouldalsoencouragecommunicationandintegratedmanagementwithincompanies,enablingbettermanagementpractices.Scientificallyrigorousdataanalysisthatproducedclear,reliableoutputswouldalsoimprovereportingandprovide growerswith a format for communicating their progress, therebygeneratingpositivepublicityandincreasingdemandforCSPO.Themarket research conducted for this report, via semi structured interviewsand questionnaires, recommends that to successfully deliver the monitoringprotocol and software so as to ensure uptake and usage amongst oil palmgrowers,softwaredevelopersshould:

• Provide amodular softwarepackage,whichoffers a basic database andanalysistoolandsubsequentadd‐onsformoresophisticatedandcomplexdataentryandanalysis.

• Provideasoftwareprogrammethatproducesclear, informativeoutputsforseniormanagementincludingGISmaps,graphicsandnumericaldataaswellasprescriptiveHCVmanagementrecommendations.

• Provide monitoring and software training to field and sustainabilityteamsaswellastrainingininterpretingoutputsformanagement.

• Training must be phased, allowing companies to progressively buildcapacity and move from basic monitoring to more sophisticatedmonitoringandanalysis.

• Limitthecostsofmonitoringtrainingandsoftwaresupport.• Engage in a marketing strategy that targets Malaysian and Indonesian

growersandraiseawarenessofavailabletoolsfromthestartinareasofnewdevelopmentsuchasWestAfrica.

• Successfullycommunicate thebenefitsofenvironmentalmonitoringandreportingtocompaniesinrelationtocosts.



Introduction

PurposeandmissionMembership of the Roundtable on Sustainable Palm Oil (RSPO) continues toincrease anddiversify, yet so toodoes the threat to its credibility.This canbepartly attributed to the absence of a transparent mechanism by whichrecommended management actions amongst members are evaluated andreported. Monitoring is widely seen as a necessary part of successfulmanagement, however the current requirements for structured reporting ofmonitoring results are weak and there is little capacity at plantation level todevelopstandardisedmonitoringprotocolsin‐house.Recentattemptstodevelopastructuredmechanismhaveasyetbeenunsuccessful.TheZoologicalSocietyofLondon (ZSL) thereforewill use a collaborative approach, utilizing itsworkingrelationships with oil palm growers to develop a practical, impartial andscientificallyrigorousmonitoringprotocol.In conjunction with this monitoring protocol, ZSL will develop a softwareprogramme that will store and analyse the environmental monitoring datacollected and generate a range of clear and reliable outputs to inform andinfluence better management practices. The patrol and staff managementelementsofthesoftwareitselfwillbeadaptedfromthehighlysuccessfulZSLM‐stripessoftwarecurrentlyusedbypatrolteamsinprotectedareasinIndiaandNepalandwillbeadaptedtomeetplantationHCVrequirements.Inordertodevelopthissoftware,abetterunderstandingofcurrentmonitoringpractices and software use by oil palm growers in Malaysia and Indonesia isneeded. This report describes and discusses the results of market researchcarriedoutbytheZSL’sBiodiversityandOilPalmProjectbetweenFebruaryandApril 2012. The results of this research will then feed in to the brief for theenvironmental monitoring protocol and software. The key objective of thismarket research report is to feed in information at each stage of the softwaredevelopmentprocessby:

• Providing information on current data collection and storage byenvironmentalmonitoringstaff.

• Assessingcurrentlevelsofdataanalysiswithinoilpalmcompanies.• Understandingdatareportingandpresentationrequirementsofoilpalm

companiesandtheRSPO.• Establishing the current level of HCV training and software usage

amongstenvironmentalmonitoringstaff.• Determining the best mechanisms for software delivery in order to

encourageuptakeandusage.

Situationalanalysis

Backgroundinformation:Agrowingawarenessof theneed topromoteandprovidesustainablepalmoilledtotheconceptionoftheRoundtableonSustainablePalmOil(RSPO)in2004.Initiallygrowersandprocessorsdominatedmembership; theyunderstood that



inordertocontinueexportingtowesternmarketstheywouldneedtoimproveenvironmentalpractices.However,asconsumerpressuremountsforsustainablysourcedproducts,membershipofconsumergoodsmanufacturersandretailersalso increased. In2011membershipofmanufacturersandretailershadgrownby60%and50%respectively(RSPO2011).Twenty‐ninegrowercompaniesarecurrentlycertifiedasincompliancewiththeRSPOprinciplesandcriteria(RSPOP&Cs).Thisrepresentsanareaof1,130,968ha of oil palm with a production capacity of 5.6 metric tonnes of CertifiedSustainablePalmOil(CSPO).SupplyofCSPOhasincreasedby250%since2009whilst sales volume has increased by 620%. However, whilst demand isincreasing, so is supply. There is currently a great disparity in production andsalesresultinginasurplusofCSPO.With4,798,512mtofCSPOproducedin2011and only 2,490,526mt sold, many growers have lost out on the CSPO pricepremium as certified palm oil is then sold at a non‐certified price (RSPOSecretariatSdnBd,2011).However,itishopedthatdemandforCSPOiswillrisewithincreasedconsumerawarenessofsustainabilityissues.AsconsumerslooktotheRSPOforguidancetowardsthemostsustainableproductsviatheirnewtrademarklabel,theRSPOneeds to ensure strictmember compliance viamore accurate and transparentreportingsystems.OrganisationssuchasGreenpeaceaswellasothermediaandcivilsocietyorganisationsremaindoubtfuloftheRSPOsabilitytoachieveitsgoaltomitigatenegative impactsonbiodiversityandecosystemservices.WithoutasystemforstandardisedandaccuratereportingtheargumentsagainsttheRSPOwillstillstand.The requirement to identify, maintain and enhance High Conservation Values(HCVs),thatmaybeaffectedbyexistingornewoilpalmdevelopments(P&C5.2&7.3ofRSPOPrinciples&Criteria forSustainablePalmOilProduction,2007)hasbeenidentified,asoneofthemostcomplexanddifficultaspectsoftheP&Cs.Establishing apractical and informative system formonitoring theprogressofmanagement will improve conservation and enhancement of HCV areas.AccurateandconsistentmonitoringandrecordswillalsoprovidetheRSPOandgrowerswithquantitativedatatodemonstratecompliancetoP&C5.2.The RSPO must demonstrate its ability to significantly reduce the negativeenvironmentalandsocial impactsassociatedwithoilpalm. ItmustalsoensurethatcertifiedproducersaregivensufficientguidancetoimplementtheP&Csandthat uncertified growers can clearly see the requirements and incentives tobecomingacertifiedmember.

Productandmarketanalysis:Thepalmoilmarketismadeupofanumberofdifferentstakeholdercategories.Theoilpalmcompaniesthatcontroltheproductionendofthesupplychaincanbedivided into twokeygroups.The firstgroup ismadeupof largecompaniessuchasGoldenAgriResources,WilmarandSimeDarbywith landbanks in thehundreds of thousands of hectares. They employ intensive,well‐managedhightech practices and produce a large percentage of the palm oil traded



internationally. Certain larger producers are also beginning to expandoperations intoWestern Africa and it is therefore key that best practices arelearned and institutionalised now so as to avoid environmental damage andlosses to biodiversity in these new regions. Having amonitoring protocol andsoftwareprogramme that canbe easily adapted from theoutset is of practicaluse.Thesecondgroupismadeupofanumberofsmallercompanieswithlandbanksbetween10,000‐30,000ha, suchasSIPEFandPTAgroLestari.Both small andlarge companies are under pressure to improve their environmental trackrecords,throughimprovedpracticesandaccountability.Inordertoprotecttheirpublicimageandsatisfywesternmarketsmanyofthesecompanieshavebecomemembers of the RSPO and are improving practices based on the RSPO P&Cs.However,smallercompaniesoftenhavefewertechnicalandfinancialresourcesavailabletothemtofulfilthesecriteriathanlargercompanies.Researchshowsthat therearearangeofenvironmentalsoftwareprogrammesanddatabases available to growersonline,which aredesigned to simplify andfacilitate environmental monitoring, such as EDAS2 and Geotech. These areavailabletopurchaseorasfreeopensourceresources.Programmesrangefromsimple software for data storage and analysis to complex systems that enablestorageofmultipledatasets, complexanalysisand thegenerationofGISmapsandgraphics.A range of freely available open access statistical analysis programmes can befound online. These are utilised by ecologists and conservationistsinternationallyandcarryoutspecific taskssuchascalculatingdiversity indicesandspeciesrarity indices.ForexampleEstimateSisafreesoftwareapplicationthat uses biotic sampling data to compute a range of biodiversity functions,estimators, and indices.CARE (CApture-Recapture), SECR and SPADE (Species Prediction And Diversity Estimation) arealsoexamplesofopenaccessresources.It is important to include scientifically rigorous levels of analysis within thesoftware developed but it is even more important to determine the technicalcapacity of environmental monitoring teams using the software and providetrainingifcapacityislimited.Therearealsoanumberofprogrammesthathavebeendevelopedspecificallytoassist the agricultural sector in environmental monitoring and managing.Products such as EDAS2, which is an open source project for the web‐basedmanagement,analysis,andexchangeofenvironmentaldataandGeotech,whichprovidesdatamanagementandGIStoolsformanaging,mapping,andanalysinglaboratoryand fielddata forwater, soil, air etc.Theseprogrammesallowdatastorage, analysis and generate various outputs. They are designed andstructured to bemuchmore user friendly and are therefore often available topurchaseviasubscriptionor foraone‐off fee.Manyof theseprogrammeshavebeen developed for the American and European markets. This research willassess whether they have also penetrated the Indonesian and Malaysianmarkets. Large agricultural companies in developed countries often employhigh‐tech agricultural systems and have well‐trained IT departments dealing



withdatastorageandanalysis.StandardsofeducationandknowledgeofITmaybealothigherthanindevelopingcountriesinAsia.Market analysis indicates that some of the software programmes available topurchase offer technical support, either online or in person.Whereas the freeopen source programmes do not. In some instances the free programmeswilloffer limitedassistance throughanonlineQ&A forum.Manyof thesepackagesaremodularandbeginwithabasicsystemtowhichextramodulessuchasGIScanbepurchasedandadded‐on.Buildingaprogrammewithadd‐onsallowsthesoftwaretobeassimpleandcomplexasyouwishandconsideringthevariationin technicalcapacityandresourcesofoilpalmgrowers this issomething tobeconsideredwhendevelopingtheZSLHCVmonitoringsoftware.Analysisoftheenvironmentalmonitoringsoftwarepackagescurrentlyavailableidentified useful features as well as highlighting factors that potentially limituptakewhendevelopinganewsoftwarepackageforpalmoilproducers.



Methods

Qualitativeresearch:Semi‐structuredinterviewswereconductedwithrepresentativesfromoilpalmcompanies including Sime Darby, Bumitama Gunajaya Agro, PT Agro Harapanlestari,BismaDharmaKencana,PTAstraAgroLestariTbkandSIPEF.Interviewswith growers from the oil palm sector were mostly with senior levelmanagementandsustainabilitydepartments.Thecompaniesinterviewedvariedinsizefromsmallconcessionsof20,000hatolargercompanieswithlandbanksofhundredsof thousandsofhectares.Technical informationwasalsogatheredfromSIPEFandWilmar,thetwogrowercompanieshostingthefieldtrialsofthemonitoringprotocolandsoftware.Theinformationdetailedcurrentmonitoringpractices,dataandanalysis.InadditionarangeofNGOsandconsultancyfirmsincludingDaemeter,theRSPO,CopenhagenZoo,WWFandWetlands Internationalwerecontacted. Interviewswere arranged with local organisations whereas members of the RSPO eNGOgroup and representatives from the HCV networkwere emailedwith a list ofbroad, discursive questions that were designed to draw out insights into thecurrent environmental standards and monitoring capacity amongst oil palmgrowersaswellasrecommendationsfordatacollectionandanalysis.

Quantitativeresearch:ZSLisworkingcloselywithtwooilpalmgrowersofdifferingsizesandtechnicalcapacitiestotrialthemonitoringprotocolandsoftware.However,researchwasexpandedtoincludeothercompaniesandamarketresearchquestionnairewascreated to evaluate current monitoring practices and software use amongst arange of growers. The survey consisted of short, closed questions designed toencourageparticipation.ThequestionnairewasinitiallydistributedtoattendeesattheiCOPEconferenceinBalionthe22ndFebruary2012inhardcopyformat.AftertheconferencethesurveywasthentransferredtoanonlineformatusingSurvey Monkey and emailed to grower members of the RSPO for their input.Reminder emails were sent out and phone calls conducted to encourageparticipation. After consultationwith the RSPO secretariat itwas decided thatresponselevelsmightbeimprovedifthesurveywastranslatedintoIndonesian.Thesurveywas then translatedand the linksentoutviaemailby theRSPOtoemphasise RSPO backing and encourage participation. In totalwe received 24responses.Thegrowerssurveycanbeaccessedviathefollowinglink:https://www.surveymonkey.com/s/MT6LCF2



Results

QualitativeresearchAnalysis of semi‐structured interview responses indicated two central themes:capacity&technicaldifficultyandcost&managementbuyin.

Capacity&Technicaldifficulty:The technical knowledge and resources that would enable advancedenvironmental monitoring and management practices within companies iscurrently limited.MonitoringwithinHCV areas is not carried out on a regularbasis and is limited within plantations themselves, but factors such as palmhealth/leaf‐fall index that impact palm productivity are often recorded. HCVareas themselves are ecologically very varied, ranging from peat lands tograsslands,however there is littleecologicalknowledgewithin field teamsandlittletrainingavailabletohelpimproveit.There is an absence in the market of a clear, easy‐to‐use and prescriptivemonitoringprotocolandsoftware.Therefore,thereisawillingnesstoparticipatein the protocol and software development process and make use of the finalproduct. There is recognition that companies cannot continue to out‐sourceenvironmentalresponsibilitiestoconsultants.Thecostsofhiringconsultantsona regularbasis are substantial andbusinessesare looking tobuild capacity in‐house. Reports of consultancy firms producing weak HCV assessments andspending insufficient time conducting research on the ground have emerged.Thisreducesavailabilityofaccuratebaselinedataandlimitsmonitoring.There is currently limited use of databases and software amongst smaller oilpalmgrowersandmostdataisstillstoredinhardcopy.Manysmallercompanieshavealsoavoided the costsof investing in completeGIS systemsbyusing freesoftware such asmap info. Larger companies have developed simple databasesystems in‐house that use excel and have greater experience of software usehowever uptake of sophisticated systems is still limited. There is also a poorunderstanding and knowledge of available software systems. Specialistconsultantsareoftenemployedformonitoringrequiringsophisticatedtechnicalanalysis.Patrolteamsmayhaveonlyabasiclevelofeducation;theyhavelimitedunderstandingofEnglishandoften identifyspeciesby their localnames.Somerespondents stated that the technical languageused in thecurrentHCV toolkitlimitsunderstandinganduptake.

Costandmanagementbuyin:Research indicated that there is poor bottom up communication with seniorlevel management that results in a lack of understanding of environmentalmonitoring and management and limited buy in to the sustainability agenda.Theremayalsobelimitedunderstandingatthefield/patrolteamlevelastothepurposeofmonitoringbecausetheyhavelittleinvolvementindataanalysisandoutput, which is predominantly undertaken by sustainability teams. Humanfactors have a large impact on the success of monitoring and managementthereforeitisimportantthatZSLnotonlydeliversamonitoringandanalysistoolbut tackles knowledge and communication issues in training as well. Data



protectionisimportantamongstgrowers,especiallyindustryleaders.Plantationmanagementhaveaccesstodatafromallplantationswhereasestatesaregivenaccesstoestatedataonly.Managementoftencategoriseprojectsas ‘moneyspending’or ‘moneyearning’.Environmental management is rarely part of any plantation managers’ keyperformance indicators which focus predominantly the yields from fresh fruitbunches. Budgets for environmental management are also limited; 60‐70% ofplantation budget is spent on fertiliser. The protocol needs to be seen to beprovidingbenefitssuchas improvements inecosystemservicesor feeding intothecompanies’sustainableimageandprovidingaccesstoforeignmarketsratherthan simplybeinganexercise inmoney spending.The reports generated fromthemonitoringprotocolandsoftwarewillshowthatgrowersaremeetingtheircommitments as RSPO members and moving towards certification for theplantation.

QuantitativeResearch

Respondents:Thegrowerssurveyreceivedtwenty‐fourresponses.Responsespredominantlycamefromheadofficeorsustainability teams.TherewerelimitedresponsesfromfieldteamsorITdepartments.Figure1showsthatresponsescamefromarangeofcompanysizes.Twenty‐oneoftherespondentshadHCVareaspresentintheirconcession.OftheareasdesignatedasHCV,onlyeightcompanieswerecarryingoutmonitoringon100%oftheirHCVareas.Therestweremonitoringbelow50%oftheirHCVareas(seefigure3).Figure1:Sizeofcompanyconcession



Figure2:PercentageofconcessionthathasundergoneHCVassessment

Figure3:PercentageofHCVareasundergoingmonitoring

Budget:Eightrespondentschosetodisclosehowmuchofthecompaniesannualbudgetwas spent on environmental monitoring. Of the four that answered as apercentageofannualrevenuetheresultsindicatedanywherebetween2‐25%.



TworespondentsestimatedtotalannualspendinUSDollarstobeUS$200,000–250,000. Whereas another two respondents stated that no budget had beenallocatedtoenvironmentalmonitoring.

Currentenvironmentalmonitoringpractices:Figure 4 illustrates that water quality, pollution, soil quality, biodiversity, firemanagementandsocialconflictmonitoringiscarriedoutmostfrequentlybythemost respondents. However monitoring frequencies varied greatly. A largenumberof respondents indicated thatmonitoringwascarriedout infrequentlyoronanadhocbasis.Trends in wildlife populations, habitat size, vegetation structure and cover,invasivespeciesandhuntingandloggingweremonitoredbyfewerthanfifteenrespondentsandmostlyatanannualoradhocbasis.Figure 4: Current environmental monitoring undertaken and frequency withwhichitiscarriedout.

In‐house sustainability teams are predominantly responsible for analysis ofenvironmental information (Figure 5) but there was great variation in thefrequencyofanalysisofenvironmentalmonitoringinformation(Figure6).



Figure5:Teamsresponsibleforanalysisofenvironmentalmonitoringdata

Figure6:Frequencyofenvironmentaldataanalysis

Thequestionnaireindicatedthatenvironmentalmonitoringresultsaredeliveredpredominantlyviareportsaswellasmeetingsandpresentations(Figure7)



Figure7:Modeofdeliveryofenvironmentaldatatoseniormanagement

Results indicated that teams responsible for environmentalmonitoring rangedbetween 0‐13 members, with the average being between 3‐5. Only fourrespondents indicating that they had more that thirteen people carryingenvironmentalmonitoring(Figure8).Themajorityofenvironmentalmonitoringstaff had a bachelors degree with only three respondents indicating that themajorityoftheirstaffhadamastersdegree.Onerespondentchosetocommentthat some of their field staff only had school education with some basicenvironmentaltraining.Figure8:Numberofstaffresponsibleforenvironmentalmonitoring



HCVmonitoringprotocolandsoftware:The number of staff with HCV trainingwas roughly evenly divided (figure 9),however seventeen respondents out of 24 stated they would be interested inenrolling their staff in HCV training. Two said they were not interested inenrolling their staff in training, with one commenting that this was becausecurrentfieldmonitoringwassufficient.Figure9:NumberofstaffwithHCVtraining

Figure 10: Respondents interest in enrolling their staff in environmentalmonitoringtraining

Figure 11 shows that of the seventeen that said they would be interested inenrolling in an HCV training course, 62% stated they would prefer a phased



trainingcoursewithcontinuedsupport.Respondentscommentedthat itwoulddependonthecostoftrainingandthatsomewouldbehappiertotrainin‐house.Figure11:Preferredmethodofdeliveryforenvironmentalmonitoringtraining

Seventeen respondents said they would be interested in using monitoringsoftware in their concession (Figure 12). Figure 13 illustrates that of theseseventeentherewasalargeamountofvariationwithregardtohowthesoftwareshouldbedistributedwith35% requesting free softwarewithno support and65%requestingtrainingorsupport.50%ofthoserequestingtrainingorsupportstatedtheywouldliketopayforthisviaannualsubscription(Figure14).Figure12:Respondentsinterestinuseofenvironmentalmonitoringsoftware



Figure13:Preferredmethodofdeliveryofenvironmentalmonitoringsoftware

Figure14:Preferredmethodofpaymentfortrainingandsupport

‘Ease of use’ and ‘level of data entry and output’ were rated as the mostimportant factors with regard to the monitoring software. ‘Flexibility &performance’ was less important and ‘cost’ was rated as the least importantfactor, which is surprising as previously 35% (figure 13) of respondents said



they didn’t want to pay for the software. GIS maps and numerical data wereindicated to be the most useful elements of the software whereas graphics,statisticalanalysisandpopulationmodellingwereratedlessuseful(Figure15).Figure15:Aspectsofenvironmentalmonitoringsoftwareratedbyimportance

Figure16:Featuresofenvironmentalmonitoringsoftwareratedbyusefulness

Currentsoftwareuse:Six respondents stated that they already use software to store and analyseinformationandfiveofthesestatedthatthiswasdevelopedin‐house,however



thesearelimitedtoExcelbaseddatabases(Figure17).Ninerespondentsstatedthattheywerenotusingsoftware.Figure17:Currentsoftwareuseamongstgrowers

Training was required to use the software currently used for environmentalmonitoring and this was given to the in‐house sustainability teams. In somecasesitwasgiventotheITdepartmentandonlyinonecasewerethefieldteamtrainedinhowtousethesoftware.



DiscussionThis researchhas identifiedkey themes andproblemareas relating to currentenvironmentalmonitoringpracticesandsoftwareusage.

Monitoring:The majority of oil palm companies interviewed or surveyed had HCV areaspresent in their concessions; however, the number of HCV designated areasundergoing regular monitoring varied greatly between growers as shown infigure 3. Interview responses indicated that large companies have both theexpertiseandfinancialcapacitytocarryoutmonitoring,butbothlargeandsmallcompanies lackthetechnicalknowledgeto implement this. Ingeneral in‐housesustainabilityteamscarryoutenvironmentalmonitoringandanalysis,howeverthe number of personnelwithHCV specific training varies greatly betweenoilpalmgrowercompanies.The budgets allocated to environmentalmonitoring also vary greatly betweencompanieswith themeanpercentageofannualrevenuebeing7.3%.Thereforethecostof theenvironmentalmonitoring trainingand thesoftwaremustcaterforarangeoffinancialresources,butultimatelykeepcostslow.Environmentalmonitoring teams range from small teams of less than three people to largersustainability teams with over thirteen members of staff, the most commoncategorybeingbetween3‐5membersofstaff.Thismaydependonthesizeofthecompanyandtheconcessionsundergoingmonitoring.Thesoftwarewillhavetobeflexibleanddynamictoaccommodatethisvariationincapacity.Resultsfromthesemi‐structuredinterviewsweregenerallyinlinewiththoseoftheoilpalmgrowers’surveywithregardtocurrentmonitoringpractices.Manyinterviewees stated that environmental monitoring within plantations waslimited, however the results of the survey indicated that althoughmonitoringwasoccurringinfrequentlyoradhoc,arangeofbioticandabioticfactorswerebeingmonitored.Themonitoringprotocolshouldstipulateaspecificmonitoringmethodologywithcorrespondingareasfordatainputwithinthesoftware.TheHCVareaswithinconcessionswillvarygreatlyfromtropical foresttopeatland,thereforethemonitoringprotocolwillhavetobedynamicandadaptabletocatertothesedifferentecosystemsandthesoftwareitselfwillhavetobeflexibleandinclusiveinordertobeappliedindifferentregions.

Softwareuse:Figure17 shows thatonly25%of the IndonesianandMalaysiangrowerswhocarriedoutthesurveycurrentlyusedatabasesandsoftware.Ifsoftwareisinuse,it has often been developed in house using excel, carries out only basic dataanalysis,andproducessimplegraphicsornumericaldataThereareanumberofopenresourceenvironmentalmonitoringsoftwareprogrammesavailableonline,whichareabletoconductsophisticatedstatisticalanalysisandproducevariousgraphical and numerical outputs as well as GIS maps. However, the researchindicates that these programmes are not in common use by environmentalmonitoring and sustainability teams in the oil palm sector. These resultshighlighttheneedforHCVspecificsoftwareandtraining.Italsoemphasisesthe



importancesuccessfulofmarketingtoraiseawarenessoftheavailabilityofthissoftware.The softwarewill need to use amodular approach. This will enable themostbasicpackageofsoftwaremodulestobedeliveredfirstwhichwillcomplementthebasicmonitoringprotocol.Morecomplexadd‐ons,suchasstatisticalanalysis,can then be added as training is delivered and capacity increases within theorganisation.Thiswillalsoenablesmallercompanieswithlimitedfinancialandtechnical resources to make the use of the basic modules, whilst largercompanies with sophisticated monitoring protocols can add on the morecomplexsoftwaremodules.The software must cater and be accessible to teams with varying levels ofeducation. The software structure and designmust be clear and user friendly.This was indicated by ‘Ease of use’ being rated as one of themost importantelements of the software. This will enable field/patrol staff with limitededucation to input the data easily whist sustainability teams, with highereducation, carry out more sophisticated analysis. The software must also usesimpleterminologyandtheEnglishmustbekeptatasbasicalevelaspossible.Ifpossible trainingmaterials as well as the software itself should also bemadeavailableinIndonesian.Ensuringthesoftwareisclearandsimpletounderstandwill encourage uptake and use. Employing a team of trainers to providemonitoring training and technical support after the protocol and software hasbeen developed would build capacity, increase uptake and facilitatetroubleshooting.

Internalcommunicationandmanagementbuy‐in:Thesoftwarewillbeafundamentalcomponentofthemonitoringprotocolbut,ifdelivered correctly, could also be used to facilitate improved communicationbetween different departments within palm oil companies, increasingunderstandingand facilitatingmanagementbuy‐in.Theresearch indicatedthatenvironmentalmonitoring results aredelivered in a varietyof forms to seniormanagement with 68.4% of respondents delivering results in report form.Therefore softwareoutputs shouldbe versatile and adaptable to eachof theseforms.Training should also reflect a company’spreferredmethodof reportingand communication. Outputs must be easy to understand and prescriptive sothatmanagementteams,withlittleknowledgeofenvironmentalandbiodiversitymonitoring,haveaclearerunderstandingofthechangesoccurringinHCVareasandhowtheseareaffectedbymanagementpractices.Thesemi‐structured interviewshighlighted theneed formonitoringoutputs tofeed into companies’ key performance indicators to incentivise plantationmanagers to invest in HCV monitoring rather than ignore it. Environmentalmanagementcanhaveadramaticimpactonecosystemresilience,thehealthofaplantationandpalmproductivity.Softwareoutputsandtrainingshouldillustratethese benefits to management and encourage proactive environmentalmanagement.Creating incentives formanagement to invest inHCVmonitoringtrainingandsoftware isessential. It is important thatmanagementunderstandhow the monitoring and reporting process feeds into adaptive management

rcague

Sticky Note

What is the "correct" way to deliver the software to achieve maximum utilization for monitoring and communications/buy in within companies?



practices and their RSPO commitments aswell as benefiting the health of theplantationasawhole.Emphasisofthemoneysavingpotentialofoperationalandenvironmental monitoring in the plantations themselves may also encouragemanagementbuyin.Although ‘Cost’ was rated as the least important aspect with regard to thesoftware(figure15),semistructureinterviewresponsesindicatedotherwise.Infact survey results indicated 35.3% of survey respondents would prefer freesoftwarewith no support (figure 13). According to these results, the softwareshould be made free and available to download online. This is in‐line withcompeting environmental monitoring software already available and wouldenable thosewhodonotrequire trainingtoalsouse it.Nocompanyshouldbeexcludedfrombenefiting fromthesoftware,howeverthesurvey indicatedthatthere is an acceptance from the growers who took part, that training and ITsupportwouldbepaidforviaaone‐offfee,annualsubscriptionorsitelicence.ThesoftwarecouldpotentiallybedistributedfromthePalmOilResourceCentre,a website being developed this year by ZSL. The website will provideinformation regarding sustainability practices along the palm oil supply chainandcouldalsoactasa forumfordiscussionsandquestionsabout theprotocolandsoftware.Companieswhohaveselectedregularsupportandphasedtrainingcould also be given the possibility of uploading data for remote support fromspecialists. The site should also act as a platform for sharing growers’ casestudiesandsuccessstories.ThispositivePRcouldofferamuchneededincentiveforgrowerstoadopttheprotocol.The software must be marketed carefully to ensure management buy in.Demonstrations should be held at RT10 as well as at industry trade fairs.Marketingshouldalsoincludethosegrowerswhoaren’tmembersoftheRSPOaswellasthosethatare.Itisinterestingtonotethattwoofthegrowercompaniesthat agreed to be interviewed and showed keen interest in the protocol andsoftware were not members of the RSPO. Non‐RSPO members stated thatcertification was necessary for export but not for the home markets. Smallercompanies catering to Indonesian markets may not feel the need to be RSPOcertified but it is encouraging that some companies are interested inenvironmental best practice nonetheless. With the development of theIndonesianSustainablePalmOilstandard(ISPO),moreIndonesiangrowerswillhave to conform to sustainablepractices. It is important that growers that arenot members of the RSPO make use of the protocol and software, howeverinitially ZSL will work with RSPO members as these companies have made atransparent and clear commitment to improving practices and submit timeboundplans.As well as collecting quantitative information about current monitoring andsoftware usage, it was important to also address and understand humanbehaviour. The semi‐structured interviews attempted to draw out andunderstand companies/management behaviours (what people do), attitudes(feelings towards environmental monitoring) and perceptions (how they feelabout the product). This would enable ZSL to better understand how the

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Sticky Note

This is the only mention of dissemination/uptake in the report, but it is not comprehensive in how the software would be "launched", what alternative options exist, or why the PORC site is the best portal. You note above there are many open source software options available, but they are not currently in use. How will the dissemination, platform, and marketing / accompanying support of this software counter the underutilization trend that currently exists?



monitoring protocol and software should be delivered. In general therewas apositive response to theprotocol and software; growers showedkeen interestand were willing to participate and provide input. However self‐reportedbehaviour must always be treated with caution and although much of thefeedbackreceivedregarding theprotocolandsoftwarewaspositive theremaybeasubstantialdisparitybetweenreportedactionsandactualactions.Whethercompaniesadopttheprotocolandmakeuseofthesoftwarewilldependheavilyonhowitismarketedandtheperceivedcostbenefitratioitdelivers.

Researchlimitations:TheresultscollectedfromthequestionnaireareonlyarepresentativesampleofgrowersintheoilpalmindustryandheavilybiasedtowardsIndo‐Malayregion,howevertheydogivesomeindicationofthecurrentuseofmonitoringprotocolsand software as well as grower attitudes and reservations. The participantstargeted by the research were predominantly RSPO members and thereforealreadyhaveaninterestinimprovingsustainabilityandenvironmentalpracticeswithin their plantations. Furthermore the respondents were self‐selected andvolunteered information.However, theprotocol and softwarebeingdevelopedby ZSL is designed to assist companies pursuing sustainable practices. Thecompanies that responded to thequestionnaireandagreed tomeetingshowedan enthusiasm and interest in improving practices and it could therefore bearguedthattheyarerepresentativeofZSLstargetaudience.The information collected from the semi‐structured interviews would havebenefitedfromagreaternumberofparticipants,buttimeandtravelrestrictionsprevented this. With hindsight it would have also been beneficial to conductinterviews with plantation managers (those in charge of financingenvironmentalmonitoring),fieldteamsandITdepartments.Theirparticipationwouldhaveincreasedourknowledgeandbroadenedourperspectiveoncurrenttechnical capacity. Respondents were also often unwilling to release certaininformationsuchasthedetailsofmonitoringprotocolsandfinancialdata.Thisisattributed to companyprivacypoliciesand theneed tomaintaina competitiveedge.Themarketresearchreportprovidesastartingpointforthemonitoringprotocoland software. The field trials conductedwithWilmar and SIPEFwill highlightany further potential problem areas.Many respondents agreed to take part inthenextstageoftheconsultationprocessandprovidefeedbackandinputtotheprotocolandsoftwareoncedevelopmenthasbegun.

ConclusionTheresearchconductedbyZSLindicatesthatthere isaneedforuser‐friendly,comprehensive environmental monitoring software for data storage, analysisand output in the oil palm sector. As the RSPO increases the demands on itsmembers tomanage,monitor and report onHCV areas, growerswill need theguidance and resources to carry this out. The softwaremust be simple to use,

rcague

Sticky Note

please include a brief summary on dissemination / uptake here.



cost effective and feed into management practices. It must produce easy tounderstandoutputsonthestatusofHCVareas.To successfully deliver the monitoring protocol and software so as to ensureuptakeandusageamongstgrowers,ZSLmust:

• Provide amodular softwarepackage,whichoffers a basic database andanalysistoolandsubsequentadd‐onsformoresophisticatedandcomplexdataentryandanalysis.

• Provideasoftwareprogrammethatproducesclear, informativeoutputsforseniormanagementincludingGISmaps,graphicsandnumericaldataaswellasprescriptiveHCVmanagementrecommendations

• Provide monitoring and software training to field and sustainabilityteamsaswellastrainingininterpretingoutputsformanagement

• Training must be phased, allowing companies to progressively buildcapacity and move from basic monitoring to more sophisticatedmonitoringandanalysis.

• Limitthecostsofmonitoringtrainingandsoftwaresupport• Engage in a marketing strategy that targets Malaysian and Indonesian

growerstoencourageuptake• Successfullycommunicate thebenefitsofenvironmentalmonitoringand

reportingtocompaniesinrelationtocosts.Inordertoincreasethecapacityoftheplantationmanagers,sustainabilityteamsandpatrolstaff,trainingmoduleswillbedevelopedforthemonitoringprotocolandsoftwaredatabase.Thesemoduleswillbefieldtrialedatourtwofieldsitesand sent out for consultation with stakeholders with the results and ‘lessonslearned’used torefine theprotocol, trainingmodulesandsoftwarebefore it ismadeavailabletoothercompanies.



References• CARE&SPADE,AnneChao(http://140.114.36.3/indexE.html)• EDAS2(http://www.edas2.com/)• Estimates(http://viceroy.eeb.uconn.edu/EstimateS)• Geotech(http://www.geotech.com/firstvisit.htm).• RSPOSecretariatSdnBd“GrowthInterpretationnarrative”2011RSPO• RSPOPrinciplesandCriteriaforSustainablePalmOilProduction,2007

AppendicesCompaniesInterviewedorparticipatedinthesurvey(somecompanieschosenottorevealtheirnames)

• PTSocfinIndonesia(RSPOmember)• PT.KLKAgriservindo• Agrocaribe(RSPOmember)• TradewindsPlantationBerhad(RSPOmember)• GoldenAgri(RSPOmember)• OlamGabon(RSPOmember)• BumitamaGunajayaAgro(RSPOmember)• SPZEnterprisePTYLTD(RSPOmember)• PTAraraAbadi• PTAgroHarapanLestarti• NBPOL(RSPOmember)• PTKrosnaDutaAgroIndo• GoldenVeroleumLiberia(RSPOmember)• PTSmartTbc(RSPOmember)• PTBismaDharmaKencana• SimeDarbyPlantation(RSPOmember)• Sipef(RSPOmember)• Wilmar(RSPOmember)• PTAstraAgroLestariTbk• WWF(RSPOmember)• WetlandsInternational(RSPOmember)• Daemeter• RSPO• CopenhagenZoo

market research report: environmental monitoring and

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