Symposium on Sustainable Resource Development
May 18, 2006
Institute of Directors, London

THE ROUNDTABLE ON SUSTAINABLE PALM OIL – PURPOSE AND PROGRESS
by Tim Stephenson,
Trading and Finance Director, Aarhus-Karlshamns

The world population is estimated to increase from 6.39 billion people in 2004 to 10.8 billion in 2050. This increase in population will have profound implications on food production and supply. For example, vegetable oil demand has also increased significantly from 58.8 million tones in 1991/2 to 109.2 million tones in 2005.  Added to this is the rising demand for ‘green energy’, which, in turn, is leading to a surge in demand for vegetable oils. The rapidly increasing demand for vegetable oils as both food and latterly as fuel is expected to increase the social and environmental impact on producing countries worldwide. A global multi-stakeholder initiative on sustainable palm oil which came in the wake of a global call for more sustainable development and land use of the earth’s resources, was established on April 8 under Article 60 of the Swiss Civil Code as the "Roundtable on Sustainable Palm Oil" (RSPO). This unique platform aims to expand sustainable production and use of palm oil through co-operation within the supply chain and open dialogue between it’s stakeholders. RSPO was setup as a business to business initiative between companies along the supply chain, including producers in association with the Worldwide Fund for Nature (WWF). Currently the RSPO has 96 ordinary members organised in 7 sectors -  oil palm growers (27),   palm oil processors or traders (32),   consumer goods manufacturers (14),   retailers (9),   banks and investors (4),   environmental/nature conservation NGOs (6),   social/developmental NGOs (4).  The RSPO ratified the Principles and Criteria (P & C) for Sustainable Production at its 2nd General Assembly held after the 3rd Roundtable Meeting on Nov 23, 2005 in Singapore. The P & C set the foundation for production of sustainable palm oil that takes into consideration long term economic viability, environmental protection and conservation and recognition of workers and local communities.