annual progress report - efeca · annual progress report – uk roundtable on sourcing sustainable...

AnnualProgressReport

UKRoundtableonSourcingSustainablePalmOil

December2017

Efeca

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil ii

TableofContents1. Introduction.......................................................................................................................................................................1TheUKRoundtableCommitmentandtheAmsterdamCommitment...............................................................1

2. OverviewofpalmoilusageintheUK.............................................................................................................3A. PalmOilUsageintheUKviaUKrefiners.................................................................................................................4ImportsofPhysicalCertifiedSustainablePalmOil....................................................................................................4PurchasesofGreenPalmcertificates................................................................................................................................5

B. PalmOilUsageviaNon-UKRefiners...........................................................................................................................7FinishedgoodsandIngredientsusageamongConsumerGoodsManufacturersandRetailers ................................................................................................................................................................................7OwnBrandvs.Brands........................................................................................................................................................8

C. SpotlightonOleochemicals,AnimalFeedandFoodService............................................................................9OleochemicalManufacturers..........................................................................................................................................9AnimalFeed.........................................................................................................................................................................11Foodserviceindustry......................................................................................................................................................12

3. Conclusionsandnextsteps..................................................................................................................................14Annex1. FractionsandDerivativesSupplyChain......................................................................................................iAnnex2. DevelopmentofMethodology.........................................................................................................................iiAnnex3. 2016Methodology...............................................................................................................................................vAnnex4. OilWorldFigures..............................................................................................................................................viiiAnnex5. Biofuels....................................................................................................................................................................ixAnnex6. Revised2015RefinerFigures.........................................................................................................................xAnnex7. Stakeholderquestionnaire..............................................................................................................................xiAnnex8. SummaryofStakeholderSurveyresults...................................................................................................xiAnnex9. QualitativeUpdatesfromRoundtableMembers..............................................................................xviii

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil 1

1. Introduction

TheUKRoundtableCommitmentandtheAmsterdamCommitmentTheUKRoundtableonSourcingSustainablePalmOil(Roundtable)isanindustryalliancethataimstopromotetheuptakeofsustainablepalmoilintheUK.Inexistencesince2012,membersincludetradeassociationsforkeypalmoilusingsectors,the4majorUKrefiners,andNGOs.1 TheRoundtablewasoriginallyformedwhenDefrapublishedtheUKstatementonsustainablepalmoilin2012,2whichbroughttogethertradeassociationsforpalmoil-usingsectors,theUKgovernmentandtheWorldWildlifeFundtoagreetoworktowards100%sourcingofcrediblycertifiedsustainablepalmoilby2015.3,4Followingtheendofthe2015commitmentperiod,theRoundtablereformedandagreedtosigntheAmsterdamCommitmentsupporting100%SustainablePalmOilinEuropeby2020.Withthesigningofthe‘CommitmenttoSupport,’theRoundtablejoinedvariousEuropeanprivatesectororganisationstoensureafullysustainablepalmoilsupplychaininEuropeby2020.TheCommitmenttoSupportwasoriginallyinitiatedbyIDH,theSustainableTradeInitiativeandMVO,theNetherlandsOilsandFatsIndustry,whoestablishedtheEuropeanSustainablePalmOilprojectinDecember2015.Inresponse,thegovernmentsofkeyEuropeanUnioncountriesdeclaredtheirsupporttowardstheprojectbysigningtheAmsterdamPalmOilDeclarationinsupportofa“privatesector-drivencommitmentto100%sustainablesourcingandincreasedtraceabilityofpalmoilbynolaterthan2020.”5ThewiderAmsterdamDeclarationsareintendedtostimulateprivatesectorcommitmentandprogressonagriculturalcommoditiesassociatedwithdeforestation(suchaspalmoil,soyaandcocoa).TheCommitmenttoSupportisnotazero-deforestationcommitment.Italsodoesnotcommitsignatoriestosource100%physicalCSPO.TheUKRoundtablesigningoftheAmsterdamCommitmentbuildsonpreviousworktosource100%CSPOby2015throughthe2012UKstatementonsustainablepalmoil.Aspartofit,theRoundtablehasagreedtocontinuetoreportannuallyonprogressintheUK,andworkwithothersignatoriestotheAmsterdamCommitmentonincreasingtheuptakeofsustainablepalmoil.

1TheRoundtableincludestheFoodandDrinkFederation,SustainableRestaurantAssociation,BritishHospitalityAssociation,ChilledFoodAssociation,BritishRetailConsortium,FederationofWholesaleDistributors,BusinessServicesAssociation,BritishAssociationforChemicalSpecialties,UKCleaningProductsAssociation,AgriculturalIndustriesConfederation,NationalEdibleOilDistributors’Association,SeedCrushersandOilProcessorsAssociation,RenewableEnergyAssociation,UKPetroleumIndustryAssociation,WorldWildlifeFund,ZoologicalSocietyofLondon,ForestCoalition,BritishandIrishAssociationofZoosandAquariums,andFoodAdditivesandIngredientsAssociation. 2https://www.gov.uk/government/publications/sustainable-production-of-palm-oil-uk-statement3The100%by2015commitmentcoveredtheuseofbothsustainablepalmoilandpalmkerneloil,butdidnotcoverpalmkernelmeal.Relevantsectorsalsoworkedtoencouragesustainablesourcingofpalmoilfractionsandderivatives.4ItfollowedsimilarstatementsthatweremadeintheNetherlandsandBelgium.ItalsowasalsoprecededbyDavidCameron’sannouncementinApril2012aboutnewmeasurestotackleillegaldeforestationworldwideinpartnershipwiththeGovernmentofIndonesiaandthebusinesscommunity.ThisincludedworkingwithUKbusinessesonsustainabletimberandpalmoilsourcing.TheStatementwasnotabindingpolicy,butavoluntarycommitment.Thecommitmentsandactionsvaried,andsomeorganisationshadalreadycommittedtoonlyusingsustainablepalmoilby2015.Othersmadecommitmentstoexploretheissues,andencourageandsupporttheirmembersintheswitchtosustainablesourcing.Thoseintherenewableenergyindustryhadlegislativerequirementsthatgoverntheiruseofpalmoil.5http://www.euandgvc.nl/documents/publications/2015/december/7/declarations-palm-oil


ThisreportmeasurestheprogressoftheRoundtableinmeetingtheAmsterdamCommitment.Itwillbepublishedannuallyuntil2020.Itcoverspreviousdatapointsreportedoninthe2012-2015commitmentperiod,andexploresthewiderconsumptionofpalmoilintheUK.Foradetailedaccountoftheevolutionofthereportingmethodology,andthenewmethodologyagreedwiththeRoundtableforthisreport,pleaseseeAnnexes2and3.


2. OverviewofpalmoilusageintheUK

Figure1ThePalmOilSupplyChain(Source:Efeca2017)

ThisdiagramillustratestheflowofpalmoilandpalmkerneloilintotheUKmarket.Palmoilcomesfromseveralsources.Column1(highlightedinblue)illustratespalmoilrefinedandprocessedbytheUKrefineries,orthemainUKvolumeandthefocusoftheheadlinefiguresofthisreport.SomepalmoilenterstheUKasrefinedoil,ingredientsorinfinishedgoods(bothfoodandnon-food),fromeitherEuropeansources(Column2)orInternationalsources(Column3).Functionalingredientssuchasemulsifiersorbakeryfatsaredeliveredtoconsumergoodsmanufacturers,whilefinishedgoodswilltendtoenterlowerdownthesupplychain.Forexample,theoleochemicalandanimalfeedmarketsplayaroleasprocessors,oftenbuyingfractionsandderivativesofpalmoilandpalmkerneloilfromorigin.InPartAofthisreport,weprovidedataontotalpalmoilusedintheUKthatcomesviaUKrefiners.VolumesforpalmoilenteringtheUKseparatelyfromthemainUKrefiners(Columns1and2)arenotavailableinthisreport.InPartBofthisreport,wemapoutthepotentialuseofpalmoilimporteddirectlythroughEuropeanorinternationalrefiners.Welookatingredients,CGM,andRetail,evaluatingwhatinformationwehaveonvolumesandthemarket,andassessingwhatinformationismissing.WealsolookatBrandvs.OwnBrandforRetailersandCGMtounderstandtheleveragebrandshaveoverCSPOsourcing.InPartDwelookatthreesectorsinmoredetail,tounderstandthechallengesofdatacollection,monitoring,andsustainablesourcing–Oleochemicals,FoodService,andAnimalFeed.Finally,weaddress


widertrendssuchaszerodeforestationcommitments,andhowtheseimpactpalmoilsourcing.Wealsoproviderecommendations,andincorporatetheresultsofthestakeholdersurvey.QualitativeupdatesfromRTmembersarelistedinAnnex9.

A. PalmOilUsageintheUKviaUKrefinersThissectionlooksatimportsofphysicalcertifiedpalmoilviathemainfourUKrefiners,usingasimilarapproachtothe2012–2015progressreports.SomerefinerswereabletoconfirmthatthefigurestheyprovidedEfecaencompassedfractionsandderivativesofpalmoilthattheyimportandprocessfurtherbeforesellingon.PleaseseeAnnex1forfurtherexplanationofthefractionsandderivativessupplychains.Allconfirmedthattheydonotimportadditionalfractionsandderivatives,selltheseonwithoutprocessingthem,andreportthemseparatelyfromthesalesfigurestheyhaveprovided.Therefore,thefigureswehaveusedforthisreportshouldencompassallrefinercrudeandrefinedoil,aswellasfractionsandderivatives.ThefiguresbelowillustratehowtheusageofCSPOhasdevelopedsince2009.

ImportsofPhysicalCertifiedSustainablePalmOilThefindingsfor2016illustratedinFigure2indicatethatthevolumeofUKpalmoilpurchasessupportedbytheRSPOcertificationmodelsofMassBalance,Segregated,andIdentityPreservedrepresent328,139mt(excludingGreenPalmandderivativesandfinishedgoods),or78%oftotalpalmoilimportstotheUK.Thefigurebelowcompares2016figureswith2009-2015figuresthatdonotincludeGreenPalmcertificatespurchasedbycompaniesinthevolumeofCSPOpurchasedintheUK.WhenGreenPalmisremovedfromtheheadlinefigure,thepercentageofCSPOoftotalUKpalmoilconsumptionin2015equals77%,comparedto78%in2016.

Figure2CertifiedSustainablePalmOilpurchasesintheUKsupportedbyRSPOsupplychainmodels(2016notincludingGreenPalm),fromthe2009baselinefigureinmetrictonnes(Source:EfecaanalysisofUKrefinerydata,2017)

16%

35%41%

49%68%

77% 78%

-

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015 2016

Thou

sand

s(mt)


In2016UKpurchasesofpalmoilsupportedbyMassBalance,Segregated,andIdentityPreservedRSPOcertification(notincludingGreenPalm)haveincreasedby1%since2015(whentotalpurchasesrepresented326,033mt).6Thisisamuchlowerrateofincreasethaninpreviousyears(2014to2015was12%).Howeveroverall,2016UKpurchasesofpalmoilsupportedbyMassBalance,Segregated,andIdentityPreservedRSPOcertification(notincludingGreenPalm)haveincreasedalmostsix-foldsince2009(whentotalpurchasesrepresented55,000mt).

PurchasesofGreenPalmcertificatesIn2016,UKcompaniespurchased84,949mtofGreenPalmcertificates,comparedto131,261mtofpalmoilsupportedbypurchasesbyUKcompaniesin2015.7GreenPalmconsumptiondecreasedfromlastyear,atamuchgreaterratethaninthepreviousyear(by35%from2015to2016,vs.by24%from2014to2015or7%from2013to2014).IfGreenPalmwereincludedinthetotalCSPOfigurebasedonUKrefineryfigures,itwouldrepresentproductionofcertifiedoilequivalentto20%ofUKimportbasedonFEDIOLdata.Thisrepresentsadecreasefrom31%of2015’stotalusage,andisdemonstratedintheFigurebelow.Inpreviousyears,theproportionofMassBalance,SegregatedandIdentityPreservedCSPOgrewmorerapidlythantheuseofGreenPalm.In2016,bothdecreased.IfthetotalpercentageofCSPOincludesGreenPalm,theUKhasachieved98%CSPOsourcing,comparedto108%in2015.

Figure3ProportionofpalmandpalmkerneloilintheUKpurchasedthroughGreenPalmCertificatesandSegregated/MassBalancesupplychainmodels,comparedtototalUKimportsusingFEDIOL(Source:EfecaanalysisofFEDIOLdata,2017)62015totalrefineryfigureswereinrealityslightlydifferent,duetoinaccuratereportingbyonerefinerontotalusageandtotalCSPOusage.Correctfigureshavenowbeensubmittedbytherefiner,butarenotincorporatedhereforthepurposeofcomparisonwithpreviousyears’analysis.PleaseseeAnnex4foranexplanationofthischange.7ThesecompaniesareheadquarteredintheUK.

16%35%

41% 49%68%

77% 78%22%

24%19%

22%

25%

31%20%

-

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015 2016

Thou

sand

s(mt)

FEDIOL

GreenPalmCer=ficates

Segregated&MassBalanceCer=fiedSustainablePalmOil


TheRoundtableagreedtoremoveGreenPalmpurchasesfromtheheadlinefigureofUKconsumptionduetotheriskofdoublecountingdownthesupplychain(seeAnnex2forfurtherexplanation).Furthermore,manyofthecompaniesheadquarteredintheUKhaveinternationaloperations,andbuyGreenPalmcertificatestocoverthepalmoilusedbytheirinternationaloperations.WeareunabletoaccuratelyallottheportionusedbytheirUKoperations,sothetotalfigureofGreenPalmusageintheUKispotentiallysomewhatskewed.ItisalsoimportanttonotethatinJanuary2017,RSPOdiscontinueditsendorsementofGreenPalmastheserviceproviderofthetradeinBookandClaimcertificates.RSPOcertifiedvolumescannowbesoldviatheBookandClaimmodelontheRSPOPalmTraceplatform.AsofJanuary2017,RSPOallowsBookandClaimcertificatestobeboughtretrospectivelyorspeculatively.ThismeansthatallottingBookandClaimcertificatestoone-yeartimeperiodswillprovedifficultinfutureforthepurposesofreportingintheRoundtable’sAnnualProgressReports.GreenPalmtradingmayhavedecreasedsignificantlyfrom2015to2016duetotheseupcomingchanges,aswellasthegreatertrendtomovetowardsphysicalsupplychainmodels.Inaddition,in2016themajorityofanimalfeedmanufacturersintheUKdecidedtonolongerpurchaseGreenPalmcertificatestocovertheiruseofpalmoilandpalmkerneloil.Overall,thefiguresofCSPOthatenterstheUKthroughthefourmainUKrefinersindicatethatCSPOusagehasstabilizedaround77-78%.Theremaining22%maybecoveredbypurchasesofGreenPalmcertificates,thoughthisrequiresfurtherresearchandverification.ThesewouldnotrepresentphysicalCSPOhowever,andthechallengefortheUKmovingforwardwillbetoclosethisgap.Thereremainsomeobstaclesforingredientsandconsumergoodsmanufacturerstosourcephysicalcertifiedfractionsandderivatives,whichmaymakeupalargepartofthe22%.TheremayalsobeinsufficientdemandforphysicalCSPOfromcertainUKsectorsunwillingtopaythepremiumforCSPOorunawareofthereasonstodoso. NextstepsandrecommendationsforEfeca:

• Forannualmonitoring:expandthedataanalysedtoincludewiderEUandinternationalrefinersworkingwithEUcounterparts,ESPOetc.

• SharelessonsandapproacheswithEUMemberStatesreportingundertheAmsterdamCommitments,toimproveconsistencyindatagatheringandreporting,aimingtofillthegapsinthereportingofUKusage.

• TomovetheUKforwardto100%CSPO,viatherefiners(PartA):Betterunderstandthe22%gapandhowtoclosethegapinsourcing.Assesswhether/whatkindoftechnicalassistanceisrequiredforwhichsectors(seePartB).


B. PalmOilusageviaNon-UKRefinersTheheadlinefigureforthisreportof78%CSPOpurchasedintheUKdoesnotcoverpalmoilrefinedbynon-UKrefinersthatisfoundiningredientsorfinishedgoods.8Thisoiliscurrentlynotmonitoredortracked,andthusisdifficulttoquantifyaccurately,thoughitdoespossiblyrepresentalargeamountofadditionalusage.PartBexplorestheuseofthispalmoilintheUKcomingviarefinersinEuropeorinternationally(everythingnotcoveredbyPartA),whichisthenusedbyingredientsmanufacturersandconsumergoodsmanufacturerseitherasoil,orinawiderangeofproducts(bothfoodandnon-food)asfractionsandderivatives,orasfinishedgoodsbyretailers.Italsoexploresthecertificationdynamicsamongprivatelabelmanufacturersandmajorbrands,assessingtheirlevelofinfluenceoverproductformulationsandthusthedemandforCSPO.

IngredientsusageamongConsumerGoodsManufacturersandfinishedgoodsusageamongRetailersInordertocomplementwhatweknowisimportedbythemajorrefiners,wehavelookedmorecloselyatmajorpalmoilusingsectorsandwherepossiblereportedinformationonCSPOusagereportedtotheRSPOthroughtheAnnualCommunicationofProgress(ACOP)toprovideasenseofusage.ThisincludesthepurchaseofSegregated,IdentityPreservedandMassBalanceCSPOproducts.BecausetheACOPdatadoesnotdisclosewhethertheusageisimporteddirectlyorpurchasedfromcompaniesintheUK,thesefiguresforfinishedgoodsandingredientsareexcludedfromthemainfindingsforimports,toavoidthesignificantriskofdoublecounting.ThisinformationisvoluntarilyreportedbyRSPOmembers,agroupwhichcurrentlyincludes116ordinarymembers,and272supplychainassociatesintheUK.Therefore,thisdataismerelyanindicatorofusage.Furthermore,theUKACOPdataencompassestheinternationaloperationsofcompaniesheadquarteredintheUK.Insomeinstances,palmoilusagereportedbyaUKcompanyislargerthanwhatisactuallyusedintheUK.Finally,ACOPdataisnotaudited,andmaycontainerrors.

ConsumerGoodsManufacturers58ConsumerGoodsManufacturers(CGMs)reportedtoACOPin2016,of71totalCGMcurrentmembers.Ofthe58thatreported,42arefoodanddrinkmanufacturers.In2016CGMMemberspurchasedapproximately547,778mtofpalmoilsupportedbyRSPOcertification,comparedto558,981metrictonnesin2015.ThispalmoilwasusedinthemanufactureofOwnBrandproducts.48%ofitrepresentedphysicalCSPO,orMassBalance,Segregated,andIdentityPreservedcertified.Ofthetotalamount,4,847mtofcertifiedfractionsandderivativeswerereportedintheACOPbyCGMs.

RetailReportsshowthatbytheendof2015,BritishRetailConsortium(BRC)membersthathadsigneduptotheBetterRetailingClimateinitiative,theAmsterdamCommitment,andtheRSPO)weresourcing100%sustainablepalmoil,89%ofwhichwasphysicallyCSPO,foruseintheirOwnBrand/PrivateLabelproducts.ThisisevidencedbytheAnnualCommunicationsofProgressreportsretailersandotherbusinessesprovidetotheRSPO.In2016,10UKretailersreportedtotheACOP.In2016palmoilsupportedbyRSPOcertification(includingGreenPalm)usedbyUKRSPORetailMemberswasapproximately49,081mt,comparedto55,675mtin2015.95%ofthisusagerepresentedphysicalCSPO,orMassBalance,Segregated

8 i.egoodsthathavecompletedthemanufacturingprocess,buthavenotyetbeensold.


andIdentityPreservedcertified.Ofthetotalamount,12,997mtofcertifiedfractionsandderivativeswerereportedintheACOPasusedinOwnBrand/PrivateLabelmanufacturebyretailers.

OwnBrandvs.BrandsTheUKretailmarketutilisesalargeproportionofprivatelabelorownbrandmanufacturing.46%ofeverythingsoldintheUKcarriesaretailer’sprivatelabelbrand.ThisisamongthelargestpercentageinEurope–Spainhas50%andSwitzerland52%,withItalyonthelowendat21%.Accordingtoourresearch,allthemajorUKretailershaveRSPOCSPOpolices,coveringthisprivatelabelmanufacturing.Theremaining54%ofretailproductssoldintheUKaremadebycommercialbrands,whicharemanufacturingproductsforsaledirectlyortoretailers.AccordingtoBeyondtheBrands,a2013Oxfamreport,onlyafewlargemultinational(i.e.Mondelez)companiescontrolmostglobalbrands.

Figure4BeyondtheBrands(Source:Oxfam,2013)Manyofthesebrandsincreasinglyhavetheirownpalmoilsourcingpolicies(i.e.Nestle,whoseresponsiblesourcingguidelinesgobeyondRSPO9)basedontraceabilityforverification,butareonlypartiallymanufacturingwithRSPOCSPO.ThequestionshouldbeaskedwhetherthesepoliciesthatarealignedtocertificationstandardsareacceptabletotheAmsterdamcommitment,orwhethertheyarestrongenoughtoessentiallyensure100%CSPOsourcingbyproxy.TheUKretailgrocerymarket(whichincludespersonalcareandcleaningproductsaswellasfood)isperformingwellintermsofCSPOsourcing.Themarketisdominatedby4majorplayersthatrepresent69.2%ofthemarket:(ofthese4players,2reportedtoACOP.)10Intermsofpolicies,92.9%ofUKgroceryretailershaveclearpalmoilsourcingpolicies.11However,7.1%havenocommitmentsandthereforeanyprivatelabelproductstheysellwillnotbemadewithCSPO.Thesetendtobethesmallerretailers,which

10KantarWorldPanel,201711KantarWorldPanel,2017


haveownlabelproductsthatmaybemanufacturedintheUKorinternationally.Theconversionofthe7.1%willbeimportanttoreachingtrue100%CSPOsourcingintheUK.Mainissuesoutstanding

• Fractionsandderivativesaredifficulttotrackduetothecomplexityoftheirsupplychains.Theyarenotalwaysavailableduetoconstraintsinthesupplychaintoo.TheyareoftenimporteddirectlytomanufacturersasaningredientintheUK,makingitchallengingforthemtobeincludedintheheadlinefiguresforthisreportoftotalUKusage.

• WearecurrentlyunabletoaccuratelytracktheamountofpalmoilinfinishedgoodsthatenterstheUKmarket–ACOPdataisincompleteandthereisnocentraldatabaseofimportscontainingpalmoilorasimplewaytocalculatethepalmoilinspecificproductformulations.

NextstepsforEfeca:

• TheRTshoulddiscusswhatappetitethereistoproduceamorein-depthcalculationofpalmoilinfinishedgoods.Isthisthemosteffectiveapproachtoimprovesourcing?OrshouldwemoveforwardininfluencingEuropeansupplychainstoprovideCSPO,toensurethatwhatcomesinthroughEuropeanmanufacturingiscovered?EfecatofacilitatethisdiscussionatthenextRTmeeting.

• ConsiderevaluatingactionsandreportingbyRetailersandCGM(brandandnonbrand)andassesswhetherwecanuseotherreports(e.g.WWFscorecards)toreportbackonprogressmadeeachyeartowardscompanycommitments.WecanthenuseasthisaproxytoshowthattotalconsumptioninUKismovingtowardsCSPO.

• Produceabriefingpaperonbrandandnon-brand,theimpactonCSPO,anddrivingchange.Formajorbrands,aretheirsourcingpoliciesadequatetoensure100%CSPOsourcing?

• Fromthis,identifyifthereareanyindicatorsthatwecouldusetoreportandmonitorprogressinthesector,towards100%CSPO.Thesecouldbeincorporatedintoourreportingin2018andsharedwithotherAmsterdamCommitmentmembers.

C. SpotlightonOleochemicals,AnimalFeedandFoodServiceAsaresultofourinitialassessmentofpalmoilusageandmonitoringintheUK,thisAPRfocuseson3broadsectorsfacingchallengesinsourcing–Oleochemicals,AnimalFeedandFoodService.Infutureyears,thissectionwillbetailoredtoreflectpertinentissuesamongtheseorothersectors,withfurtherdetailedresearchrelatedtoannualfindings.SectionCdescribesprogressintheoleochemicalsector(cosmeticsandhomecare)wherepalmoil,palmkernelmealand/orfractionsandderivativesmaybeimporteddirectlythroughcomplexsupplychains.ItalsodescribessomeoftheobstaclesinsourcingCSPOfacedbythefoodserviceindustryandtheanimalfeedindustryduetolimitedbuyerinfluenceoversupplychains,andthenon-consumerfacingnatureofthesesectors.

OleochemicalManufacturersManyoleochemical12manufacturersintheUKimportpalmorpalmkerneloil,orfractionsandderivativesforfurtherprocessing,directlyfromproducers,notbuyingmaterialfromthefourmainUKrefiners.Insomecases,thisisbecausetheyareinternationalcompanieswithmanufacturingsitesinothercountries

12Oleochemicalsarechemicalsderivedfromplantandanimalfats,andareanalogoustopetrochemicalsderivedfrompetroleum.Theyhaveadiverserangeofapplications,includinginpersonalcareproductssuchasshampooorshowergel,infoodadditivessuchasemulsifiers,assurfactantsusedinfabricsoftenersandpersonalcleaningproducts,andinpharmaceuticals.Palm-basedoleochemicalsareproducedasby-productsoftherefiningprocess,beforefractionation.


andestablishedglobalsupplychains,orbecauseitismoreconvenientorlessexpensivetoimportdirectly.WeareunabletocollectthiscommerciallysensitivedatafromcompaniesandthereforeunabletotrackthisusageintheUKforthisreport,thoughanecdotallyweunderstandthatasignificantportionofOleochemicalfractionandderivativesourcingintheUKiscoveredbyMassBalance.Asshowninthefigurebelow,palmoilandpalmkerneloilcanbeusedtoproduceanextensiverangeofoleochemicals.Thecomplexityofthepalmoilsupplychain,intermsoffractionationandthedemandforfractions,presentsakeyobstacletosomecompaniessourcing100%certifiedinputforoleochemicalmanufacture(seefigurebelow).

Figure5-Oleochemicalderivativesproduction(Source:RSPO,2015)Inthe2011Defrareport,cleaning,personalcare,cosmeticsandindustrialuseswereestimatedtoconsumeabout10%oftheUKtotalofpalmoilusage,mostlyintheformofoleochemicalderivatives.Thefoodsectorwasestimatedtoconsumeabout68%oftheUKtotal(435,000mt).13Becausetheextenttowhichpalmbasedoleochemicalsareconsumedbythesesectorsisnotfullytrackedandtheoriginalfeedstockoftheoleochemicalsisnotalwaysknown(butexpectedtobepalmkerneloilinmostcases),thisestimateshouldbetreatedwithcaution.Nevertheless,itshowshowprevalentpalm-basedoleochemicalsareincleaning,personalcare,cosmetics,andfoodproductmanufactureintheUK.Intermsoffoodanddrinkmanufacture,itisalsonotalwayspossibletodisaggregatebetweenproductsmanufacturedintheUKandfinishedproductscontainingpalmoilthatareimportedandsoldontheUKmarket(seethesectiononCGMabove).Amongthetop6oleochemicalmanufacturersintheUKaslistedinthe2011Defrareport,thereisavaryingdegreeofengagementwithsupplychaincertificationandthereforetheuseofcertifiedmaterial.Theoleochemicalsectorisabletosourcesomecertifiedfeedstock,frequentlyintheformofMassBalancecertified.Ofthetopsix,fivehaveachievedRSPOsupplychaincertificationforallorsomeoftheirmanufacturingsites.Twohaveachievedsupplychaincertificationforallsites,andoneisworkingtowardsusingallcertifiedpalmoilinproductsby2020.Onehasnopalmoilinitiatives.

13 http://randd.defra.gov.uk/Document.aspx?Document=EV0459_10154_FRA.pdf


IntermsofbuyersofoleochemicalsmanufacturedintheUK,severalmajorindustryplayersinthepersonalcareandcleaningproductindustrieshavebegunworkingwiththeirsuppliersandmanufacturerstoidentitythesourcesandencouragesustainableproduction,withsomeevenestablishingverticallyintegratedsupplychainsthatcansourcesegregatedmaterialforoleochemicalproduction.Mainissuesoutstanding

• Lackofcleardataonpalmoil/palmkerneloilderivativeandfractionusebytheUKOleochemicalindustryduetocomplexsupplychainsandlackofmonitoring.

NextstepsforEfeca:

• Toimproveontheclarityofpalmoil/palmkerneloilderivativeandfractionusebytheUKOleochemicalindustryduetocomplexsupplychains,workwithOleochemicalmanufacturerstoscopeoutsupplychainintheUK.

• AbriefingpaperexploringinfurtherdetailtheusageofpalmfractionandderivativesbythemainOleochemicalmanufacturersintheUKtobepresentedatthenextRTmeeting.

• Fromthis,identifyifthereareanyindicatorsthatwecouldusetoreportandmonitorprogressinthesector,towards100%CSPO.Thesecouldbeincorporatedintoourreportingin2018andsharedwithotherAmsterdamCommitmentmembers.

AnimalFeedUnfortunately,reliabledataonthecurrentuptakeofSegregatedandMassBalanceCSPOacrosstheanimalfeedsectorisnotavailable.In2014anumberofcompaniesrepresentedonAgriculturalIndustriesConfederation(AIC)feedsectorcommitteescommittedtousingsustainablepalmoilthroughthepurchaseofGreenPalmcertificatesviatheBookandClaimscheme.InthemajorityofcasesthisisachievedbyaskingfatblendsupplierstopurchaseGreenPalmcertificatestocoverthevolumeofpalmoilintheproductsthatanimalfeedmanufacturerspurchasefromthem.In2015theuseofsustainablepalmoilbytheindustrywasestimatedtoexceed75%.In2016themajorityofanimalfeedmanufacturersintheUKdecidedtonolongerpurchaseGreenPalmcertificatestocovertheiruseofpalmoilandpalmkerneloil,astheyareunabletopassdowntheGreenPalmclaimandsellcertifiedproducttotheircustomers.Thecurrentchallengeisstillaroundthelackoffocusonpalmoil,whichmakesupaverysmallproportionoftheproductsusedbytheindustry(estimatedataround0.33%).Thisisexacerbatedbythefactthatmanyfeedmanufacturerspurchaseablendedoilwhichreducesthevisibilityofthepalmoilitself.WealsoknowfrominterviewswithfeedcompaniesthatsomeoilisimporteddirectlytomanufacturersfromEuropeansuppliers,andisnotincludedintherefineryfiguresoftotalimports,possiblyduetoconvenienceandprice.Theanimalfeedsectorisalsoalargeuserofpalmkernelmeal,whichisnotincludedintheheadlinefiguresinthisreportonpalmoilandpalmkerneloilusage.ImportsofpalmkernelmealintheUKaccountedfor455,000mtin2016,comparedto382,000in2015,and663,300mtin2009,accordingtoFEDIOLdata.AccordingtotheDefrareport(2011),in2009over80%oftheimportedpalmkernelmealwasusedforanimalfeed,withtheremaining20%goingintoelectricitygeneration.In2016nopalmkernelmealwasreportedtoOfgemasusedinelectricitygeneration,14butitisunclearhowmuchpalmkernelmealwasusedbytheanimalfeedsector.Nevertheless,itiscertainthatthissignificantvolumeofpalmkernelmealwillhavesustainabilityimpactsthatshouldbeaddressedinfuturework.Mainissuesoutstanding

• LackofunderstandingonhowpalmoilandpalmkerneloilisconsumedintheUKbytheanimalfeedsector;

14https://www.ofgem.gov.uk/publications-and-updates/biomass-sustainability-dataset-2015-16


• LackofdemandfromanimalfeedbuyersforCSPOingredientsinfeedduetosmallvolumesinformulationsandnon-consumerfacingnatureofproduct;

• InabilitytopassB&Cclaimsdownthesupplychainwhentherestofsupplychainisnotmotivatedtoseesupplychainaccreditation(duetonon-consumerfacingnature);and

• LackofinformationonhowpalmkernelmealisconsumedintheUK.NextstepsforEfeca:

• DiscusswithRSPOandAIChowtore-engagetheanimalfeedsector.• FurtherresearchamongthetopanimalfeedmanufacturersintheUKundertakentounderstand

thescopeofthepalmoil/palmkernelmealusedbytheindustry,aswellashowtore-engageonsourcingCSPO.

• WorkwiththeanimalfeedsectortoidentifyindicatorsthatcouldbeusedtoreportandmonitorchangeandpotentiallysharewithotherAmsterdamCommitmentmembersacrossEurope.Abriefingnotewillbeproduced.

FoodserviceindustryThereareover400,000retailandfoodservicebusinessesacrosstheUK,fromindependentconveniencestorestofarmshops,hotels,schools,restaurantsandstaffcanteens.15Theserviceindustryincludesrestaurants,pubsandhotelsaswellasprovisionoffacilitiesmanagement(FM),contractcateringandcleaningtothepublicandprivatesectorestate.ThekeyplayersintheserviceindustryaretheFMprovidersandthewholesaledelivereddistributionnetwork.Foodservicecompaniessourcebothcleaningandfoodproductsthatcontainpalmoilintheiringredients.Accordingtothe2011Defrareport,thefoodserviceindustryaccountedforaround150,000mtofpalmoiluse.Ofthis,itwasestimatedthat30-50%quantitiesofpalmoilcouldbeattributedtothepublicsector,equivalentto45,000-75,000mtofpalmoil.Thisrepresented7%-12%ofthetotalimportofpalmoilandpalmkerneloilintotheUKin2009.ThefoodserviceindustrycurrentlylagsbehindretailintermsofCSPOusage.A2016GAINreportrecentlyrankedthetop15foodservicecompaniesintheUK.16Ofthese,10arenotRSPOmembers,4outof15havenopalmoilpolicyatall,and6haveissuedapalmoilstatementthatisnotverifiedanddoesnotensuretheuseofsustainablepalmoil.AccordingtotheBusinessServicesAssociation,apolicyandresearchorganisationwhosemembersincludebusinessservicescompaniesinvolvedinthecontractcateringandhospitalitysectors,themainissuecontractcaterersfaceastheyendeavourtomovetowards100%sourcingofsustainablepalmoilisthecomplexityofsupplychainsand,therefore,thetraceabilityofingredients,particularlywhentheyareacomponentpartofproducts.ManyBSAmembersoperateglobally,withtensofthousandsofclientlocations,andassuchhavedevelopedmulti-tieredsupplychains,ofteninvolvingasignificantnumberofSME’s.Itisalsoimportanttonotethatunlikeretailers,BSAmembersdonotmanufactureanyproductsorhaveanyownlabelproductsanddonotpurchasepalmoilproductsdirectly.Thismeansthatwhilsttheycanhelptoinfluencetheproductspecificationsthattheypurchasefromsuppliers,theydonothavedirectcontroloftheircomposition/ingredientssourcing.Furthermore,duetothenon-consumerfacingnatureof

15http://www.fwd.co.uk/content/8/Size-and-scale/16https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Service%20-%20Hotel%20Restaurant%20Institutional_London_United%20Kingdom_12-13-2016.pdf


keyplayersinthesector(FMandwholesaledistributors),thereisalackofdemandforCSPOduetothepremiumsattached.Intermsofgovernmentfoodservicecustomers,theGovernmentamendedtheGovernmentBuyingStandard(GBS)forfoodandcateringin2012toincludeanewrequirementaboutsourcingsustainablepalmoil,palmkerneloilandderivatives.Atargetof2015wassetfor100%sustainablepalmoil(withthefourRSPOcertificationmodelsbeingproposedasoneformofevidencethatcanbeusedindemonstratingcompliance).UptakeoftheFoodandCateringGovernmentBuyingStandardvariesacrosscentralGovernmentintheUK.Itisnotmandatoryfortwoofthebiggestfoodservicepublicsectors:healthandeducation.Itisalsonotmandatoryforoverseasdefenceoperations.Mainissuesoutstanding

• LackofvisibilityamongsectoranddemandforCSPOduetonon-consumerfacingnatureofsector;• Lackofcontrolfromfoodservicecompanies,astheydonotmanufactureproducts;• LargenumberofSME’sinsectorwithlowresources/knowledgeonresponsiblesourcing;and• LackofpublicsectorCSPOsourcingforfoodservice.

NextstepsforEfeca:

• EfecawillbeholdingaseminarformembersoftheSRA,FDF,andBSAonsourcingCSPOandhowtoinfluencethesupplychainforfoodservicecompaniesinJanuary.Efecacandevelopresourcesforcompanies,withafocusonSME’s,followingthisseminar,oncesupportareasofneedareidentifiedthroughtheseminar.

• Abriefingpaperwillbepreparedlookinginmoredetailattheissuesfacedbythefoodservicesector.ThispaperwillidentifywheretechnicalassistancecanbeprovidedandwhatindicatorscanbeusedinthereporttomonitorandreportonprogressandpotentiallysharewithotherAmsterdamCommitmentmembersacrossEurope.


3. Conclusionsandnextsteps

HeadlinefiguresSincethe2009baseline,theoverallvolumeandtheproportionofUKpalmoilimportssupportedbyRSPOsupplychainmodelshasincreasedalmostsixfold.AccordingtoFEDIOLfigures,thevolumeaccountedforbyimportsofIdentityPreserved,SegregatedandMassBalanceCSPOtotals328,139mt(excludingGreenPalmandderivativesandfinishedgoods),or78%oftotalpalmoilimportstotheUK.GreenPalmpurchasesreducedby35%fromlastyear,likelyduetoJanuary2017changesintheBook&Claimsystem,andthegreatertrendtomovetowardsphysicalCSPOsourcing.Whilethisheadlinefiguredemonstratesasignificantimprovementonthe2009baseline,italsodemonstratesthatworkremainstobedoneonreaching100%sourcing.Theremaining22%ofconventionalpalmoilindicatesthatsomesectorsarenotsourcingenoughCSPOorpossiblynotreportingonwhattheyarebuying.ItisrecommendedtoundertakeaformalassessmentwithRTmembersoftechnicalassistancerequiredformemberstopromote100%sourcing.Stakeholdersconfirmedthatthiswouldbehelpfulintheirresponsestothestakeholdersurvey,listedinAnnex8.Intermsofthebroadercontext,itisinterestingtonotethatUKrefinersuse1.89%oftotalCSPOproductionof62milliontonnes.Whilethisrepresentsasmallamountoftotalconsumption,itremainsimportantthattheUKmaintainitsleadershiproleinCSPOsourcing,drivingchangeamongEuropeanconsumers,aswellassharingknowledgewithwiderpartnersingrowercountries.

Palmoilusagevianon-UKrefiners/manufacturersItisdifficulttotrackpalmoilimportedintotheUKintheformoffinishedgoods,orimporteddirectlyasingredientstomanufacturers.Theoleochemical,animalfeedandfoodservicesectorsareallimportantusersofingredientsandfinishedgoods.Somepalmoilfractionsandderivativescometooleochemicalmanufacturersdirectlyfromnon-UKrefinersandsomepalmkernelmealgoesdirectlytoanimalfeedmanufacturers.ACOPfiguresprovideanindicationofpalmoilthattheCGMandRetailsectorsbuyintheformofcertifiedoilandgoods,aswellasfractionsandderivatives,butthedatahaslimitationstoitsincompletenatureandtheriskofdoublecountingbetweenCGMandRetail.AnalysisshowshowinfluentialOwn-BrandorprivatelabelmanufacturingisintheUK–thisislargelycoveredbyCSPOpoliciesforfoodandnon-food.Majorbrands,representingwhat54%oftheretailsectorsells,areshowingatrendtocreatetheirownresponsiblesourcingpoliciesandnotengagewithRSPO.Thefoodserviceindustryislaggingbehindpossiblyduetoalackofvisibilityofingredientsandthenon-consumerfacingnatureofthebusiness,similartotheanimalfeedindustry.Itwouldbehelpfultoassesstheoleochemical,animalfeedandfoodserviceindustriestounderstandinmoredetailthesupplychains,improvemonitoring,andaddressissuesinsourcing.Followingthis,itisrecommendedthatEfecaworkwitheachsectortodevelopindicatorsthatwouldbeusedintheannualmonitoringandreporting,perhapsbasedonproxymeasuresifexactdataisnotavailable.TheRTcouldthensharethesewithEUAmsterdamCommitmentcounterparts.Again,stakeholdersconfirmedthatthiswouldbehelpfulintheirresponsestothestakeholdersurvey,listedinAnnex8.


WiderdeforestationcommitmentsWiderzerodeforestationgoalsthatcoverahostofforestcommoditiesandsocialissuesaregrowinginnumberamongcompaniesandorganisations,possiblydrivenbytheNewYorkDeclarationonForestsforexample.ThisisalsolinkedtothewiderAmsterdamDeclarationwhichaimstoimprovesustainablesourcingofrelatedforestcommoditiesbeyondpalmoil(soya,cocoa).Becauseofthesecommitments,manycompaniesarecreatingcomprehensivesourcingpoliciesthatinsomeinstancesgobeyondtherequirementsofRSPOcertification,focusingissuessuchasforcedlabourorpeatlandburning,orrequiringtraceabilitytomills.ThistrendhasbeenencouragedbyRSPOitself,withtheRSPONextcertification.IthasbeenreportedattherecentRTmeetingthatsomebuyers,intheirdesiretomovebeyond,areunderminingthedemandforRSPOwiththeserequirements.Asaresult,itisrecommendedthatEfecaexploreothermonitoringprotocols(e.g.TRASE,WWFscorecards)thatlinktowiderdeforestationgoals,andevaluatewhetherthesealignwithAmsterdamCommitmentgoals,andhowtheycouldbeconnectedtotheAPRreportingfortheUK.Asafirststep,abriefingpaperontheimpactofwiderdeforestationgoalsandtraceabilitypoliciestosharewithRTatthenextmeetinginMarch/Aprilwillbeproduced.ItmayalsobebeneficialtolookatdemandsfortraceabilitytomillandtheimpactofUKCSPOusageonthegroundincountriesoforigin.ThiscouldbelinkedwithwiderprogrammessuchastheUNDPplatforminIndonesia,andanareaofcollaborationwithotherEUAmsterdamCommitmentmembers.ThiswillbefurtherexploredandEfecawillreportbackintheMarch/AprilRTmeeting.TheUKRoundtableonSourcingSustainablePalmOilcanmakeanimportantcontributiontotheeffortsoftheprivatesectoracrossEuropetoremovedeforestationfromtheirsupplychains,andtoensurefullysustainablepalmoilsupplychainsby2020.ItwillreportannuallyonprogressintheUK,andworkwithothersignatoriestotheCommitmenttoSupportonincreasingtheuptakeofsustainablepalmoil.MeasuringpalmoilimportedintheUKinfinishedgoodsandensuringitssustainability,switchingto100%physicalCSPOusage,andworkingwithinternationalpartnersonincreasingthenumberofglobalCSPOsupplychainsareimportantnextsteps.

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil i

Annex1. FractionsandDerivativesSupplyChainThisAnnexprovidessomebackgroundonfractionsandderivatives,inordertoillustratehowthesupplychainworksandwhysourcingsustainablefractionsandderivativescanbechallenging.Palmoilandpalmkerneloilarecomplexduetotheversatilitygainedfromthelargenumberoffractionsandderivativesthatcanbeproduced.Infact,about60%ofthepalmoilandpalmkerneloilconsumedgloballyisintheformoffractionssuchasoleinandstearin.Thesupplychainsforthesederivativesaremulti-layeredandhavebeenhistoricallydifficulttotrace.The2011Defrapublishedreportestimated435,000MToffractionandderivativeusageintheUK.ItwasnotalwayspossibletodisaggregatebetweenproductsmanufacturedintheUKandfinishedproductscontainingpalmoilthatareimportedandsoldontheUKmarket,butthisdoesgiveanindicationoftotalusage.Topsectorsusingfractionsandderivativesincludedfoodanddrink,personalcare,cleaningproducts,andindustrialmanufacturing.17ItisextremelydifficulttoobtainaccuratedataontheamountofpalmoilimporteddirectlyintotheUKintheformofderivativesandfractions,asthisinformationiscommerciallysensitiveforsomecompaniesandnotpubliclyreported.Furthermore,althoughtraceabilityisimproving,thederivativescanalsobechallengingtosourceassustainable,duetotherestraintsofthesupplychain.First,becausethecertifiedsustainablecostpremiummustapplytotheoriginalfeedstockandthenbecarriedfromderivativetoderivative,theimpetusforallfacilitiesalongthederivativechaintobecomecertifiedisnotalwayspresent.Thisappliestoallpartieswithinthesupplychain,whethermanufacturersofbrandorprivatelabelorthemanyothermanufacturersupstreamsupplyingarangeofingredientswithderivatives.Someareunwillingtobearthecostofcertificationduetocostimplications–especiallywhenthevolumeofapalmderivativeinproductsisverylow.Second,becausefractionationresultsinunequalratiosoffractions(i.e.4:1oleinvs.stearin),certainderivativesofthesefractionsaremoredifficulttosource.Inorderfor1tonneofcertifiedstearintoexist,4timestheamountofcertifiedoleinmustbeproduced.Furthermore,palmkerneloilhasamorecomplexsupplybasethanpalmoil.Thekernelsaresenttocrushingfacilities(asopposedtoprocessedbythepalmoilmillsthatproducepalmoilfromthepalmoilfruit)wheretheycanbemixedwithuncertifiedpalmkernel.Atpresent,onlysomeofthesefacilitiesareRSPOcertified.Again,becausethecertifiedsustainablecostpremiummustapplytotheoriginalfeedstockandthenbecarriedfromderivativetoderivative,theimpetusforcrushingfacilitiestobecomecertifiedisnotalwayspresent.Finally,majorbuyersdonotbuyfractionsorderivativesbutfinishedingredientscontainingthem.Theymaynothaveaccesstoinformationaboutthefeedstockoriginofthederivativestheybuy.Thederivativescanvaryandbereplacedbyotherplant-basedoilsandfats(i.e.fromcoconut),dependingonmarketprice.Therefore,theyareoftennottracked.

17http://randd.defra.gov.uk/Document.aspx?Document=EV0459_10154_FRA.pdf

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil ii

Annex2. DevelopmentofMethodology

TheEvolutionofReportingFrom2012-2016,theUKRoundtablereportedontheconsumptionofsustainablepalmoilintheUKannually,andmetbi-annuallytogiveupdatesontradesectorprogressanddiscussanyissueswithsourcing.ReportingwascompletedbytheCentralPointofExpertise(CPET),18abodywhichprovidedadvice,supportandcommunicationontheGovernment’sTimberProcurementPolicy(TPP),palmoilandsustainablewoodfuelsourcing.CPETprovidedfourannualupdatestotheUKgovernmentonprogresstowardsitsgoalto100%sourcecrediblycertifiedsustainablepalmoilproductsby2015throughtheAnnualConsumptionofSustainablePalmOilReport,basedona2009baseline.19Theresultsofthe2015commitmentperiodaredocumentedinthe4thAnnualConsumptionReport(ACR).TheyshowthattheUKperformedwellintheperiod2012to2015,withfiguresshowingeither87%or108%sourcingofCSPObyendof2015,dependingonwhichsetofbaselinesfiguresareused.

PreviousApproachCPET’sACRanalysisbuiltonthemethodologyusedtoobtainestimatesofUKsustainablepalmoilconsumptionintheDefraresearchreport(2011)‘MappingandUnderstandingtheUKPalmOilSupplyChain(EV0459)’.Thatreportestimated643,400MTofpalmoilwasimportedin2009includingPalmOil(PO)andPalmKernelOil(PKO),andincludingdirectfractions,oleinstearinandpalmfattyaciddistillate.The2009importfiguresweredevelopedusingtradedata.VolumesofPOandPKOimportedintotheUKwereusedintheDefraresearchreport(2011)asareliableindicatorofconsumptionintheUKmarketandconsequentlywereusedforall4ACR’scompletedbyCPET.Importsoffinishedproducts,derivatives,oleochemicalsandPalmKernelMeal(PKM)wereexcludedfromthe2009estimate.Consequently,toensurethatthe2009estimatecouldbeusedasabaseline,theestimateofCSPOinthe2012-2016CPETACR’salsoexcludedPKM,importsoffinishedproducts,oleochemicalsandderivatives.BasedontheDefraresearchreport(2011),UKpalmoilpurchasessupportedbyRSPOcertificationincludedIdentityPreserved,SegregatedandMassBalanceCertifiedSustainablePalmOilproductsandGreenPalm’sBookandClaimsystem.ThevolumeofpalmoilsupportedbyRSPOsupplychainmodelswasestimatedbycollatingthesubmissionsofdatagenerouslyprovidedfromGreenPalm,UKrefinerieswiththehelpoftheSeedCrushersandOilProcessorsAssociation(SCOPA),togetherwithdatafromRSPO’sAnnualCommunicationofProgress(ACOP)20.ThiswasusedtoestimatetheproportionofPOandPKOimportsaccountedforbySegregatedandMassBalanceCSPOandpurchaseofGreenPalmcertificatesbyUKcompanies.AfurtherdescriptionoftheACRMethodology(2012–2016)canbefoundinAnnex1ofthe2012-2016ACR’s.21

FEDIOLvs.OilWorldIntheACRreports,thetotalvolumesofUKimportsandsalesofPOandPKOweregatheredfromtwodatasources,FEDIOLandOilWorld,fortheyears2009,2010,2011,2012,2013,2014and2015,as

18 CPETwascontractuallymanagedbyLTSandtechnicallyrunbyEfeca. 19AllpreviousAnnualConsumptionReportsonSustainablePalmOil(ACRs)intheUKcanbefoundhere:http://www.efeca.com/our-work/resources/cpet-resources-palmoil/20http://www.rspo.org/en/annual_communications_of_progress21AllpreviousAnnualConsumptionReportsonSustainablePalmOil(ACRs)intheUKcanbefoundhere:http://www.efeca.com/our-work/resources/cpet-resources-palmoil/

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil iii

intheoriginalDefraresearchreport(2011)‘MappingandUnderstandingtheUKPalmOilSupplyChain’.Between2012-2016,CPETandtheRoundtablehadseveraldiscussionswithDefraaboutchangingthemethodologytoonlyuseonebaselinefiguresource.Thestakeholdergroupneverreachedaconsensusonwhichfiguretouse,andpresentingbothbaselinesshowedarangeinresults,whichwasconsideredvaluable,sotheACRcontinuedtousebothsourcesuntilthefinal2015report.Intermsofthedifferencebetweenthedatasets,bothFEDIOLandOilWorldusetradedatafromEUROSTAT,takingintoaccountthesametarifflinesforpalmoilandpalmkerneloil.EUROSTATreliesuponsubmissionsoftradedatafromindividualcountries.FEDIOLusesEUROSTATdata,withoutanyfurtherrevision,althoughitcollectstheEUROSTATdatalaterintheyearonceithasbeenrefined.OilWorldontheotherhandusestradeintelligencetorefinetheirestimatesofPOandPKOdataincludingimportsintotheUK.

IssueswiththeACRmethodologyAsthe108%CSPOsourcingfigurebasedonFEDIOLtradedataindicatedin2015,thereweresomelimitationsintheACRanalysis,duetoissueswithdataaccuracyandcompleteness.First,thebaselinedatausedfromOilWorldandFEDIOLmayonlyberelieduponasbestestimates.ThetonnageofUKconventionalpalmoilconsumptioncouldbeunderoroverestimated.FEDIOLhasestimatedalowerimportofpalmoilintotheUKthanOilWorldandreliesontheaccuracyofindividualcountriescustomsdata,andaccuracyandmethodologymayvaryamongreportingcountries.22OilWorldontheotherhandattemptstoaccountforthisdiscrepancybytriangulatingwithmarketintelligence,butcannotclaim100%accuracyeither.IfUKconsumptionofconventionalpalmoilbasedontradefiguresisunderestimated,thiscouldleadtoafigureofgreaterthan100%CSPOintheUK.23WhilstthiscouldbethecaseforFEDIOLdata,itshouldbenotedthatinthestakeholdersurvey,50%ofrespondents,severalofwhomrepresentindustryexperts,preferredtheFEDIOLestimate.Second,becausethepercentagesofsustainablepalmoilarebasedonbothrefinerysalesfiguresofsustainablepalmoil,inadditiontothepurchaseofGreenPalmcertificatesbyUKcompanies,thereisapotentiallysmallriskthatdoublecountingmayoccur,contributingtoanoverestimationofCSPOintheUK.ThisisbecausesomephysicalCSPOproductsmaybesoldintheUKasconventionalpalmoilproductsanddownstreamsupplychainbuyersofprocessedproductsmaybeunawareofupstreamclaimsandpurchaseGreenPalmcertificatestocovertheirpalmoilconsumption.Nodataisavailabletoestimatetheriskofdoublecounting,althoughindustryexpertshaveindicatedtheyfeeltheriskislow.Furthermore,theanalysisdidnotaccountforpalmoilimportedandconsumedintheUKdownstreamintheformoffinishedgoodsandderivatives.Dataonthesevolumesisextremely

22EurostatDataQualityissuesarediscussedhere:http://ec.europa.eu/eurostat/statistics-explained/index.php/International_trade_statistics_-_background23In2015,theFEDIOLfiguresofhowmuchconventionalpalmoilwasimportedintotheUKwereactuallylowerthanthevolumesofconventionalpalmoilreportedtobeimportedbythefourmainrefinersthatcontributeddata.(Volumesofconventionalpalmoilsoldbyrefinersarenotpublishedinthisreport,astheyarecommerciallysensitive,buthavebeenusedtocalculatetheheadlinefigures.)Thismeansthateithersomeadditionalpalmoilwasimportedbytherefiners,butnotreportedinthetotaltheyhavesharedforthe2015AnnualConsumptionReport(whichisunlikely),or,thattheFEDIOLfigureswereunderestimated.ItismorelikelythattheFEDIOLfigureswerefundamentallyunderestimated,anddidnotcaptureallpalmoilimportedbythefourmainrefinersortrulyreflecttheUKmarket.ThisfurtherunderlinestheinaccuracyoftheresultingfigureofthepercentageofCSPOusedintheUKin2015.

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil iv

difficulttotrackandobtain,andsowhatmaybeaconsiderablevolumeofpalmoilconsumedintheUKinimportedfinishedgoodswasleftoutofthemeasurement.Afurtherdiscussionofthelimitationsofthe2012-2016analysesmethodologyandthedatacollectedcanbefoundinAnnex1ofthe2015ACR.InresponsetoCPET’sannualstakeholdersurvey,aspartoftheACRreportingprocess,somestakeholdersexpresseddissatisfactionwiththeACRmeasurements,andfeltthatsustainablepalmoilusewasnottrulyat100%whentakingtheincompletenessintoaccount.

NewApproachAfterconsultationwithstakeholders,thisAnnualProgressReport,whilebuildingonpreviousACR’s,takesanewapproachtomeasuringandanalysingdataonUKconsumptionofsustainablepalmoil.

BaselineDataForthiscommitmentperiod,theRoundtableagreedtouseFEDIOLfortheheadlinefigure,andreporttheOilWorldbaselineinAnnex4tothisreport.ThiswasagreedbecauseitwasconsideredvaluabletoalignwiththeotherEuropeanPalmOilAlliances,whicharereportingintotheAmsterdamCommitmentSecretariatusingEurostattradedata.

GreenPalmPreviousanalysesfocusedonUKpalmoilpurchasessupportedbyRSPOcertification,includingtheimportandsaleofSegregatedandMassBalanceCSPO(excludingderivativesandfinishedgoods)byUKrefinersandthepurchaseofGreenPalmcertificatesintheUK,asthecentralfigureindicatingsustainableconsumptionofpalmoilfortheUK.Giventhehighlycomplexnatureofpalmoilsupplychainsandtheriskofsignificantdoublecountingofsustainablepalmoilclaims,thisanalysispresentsGreenPalmseparately,notincorporatingthemintoheadlinefigures.

FinishedGoodsandPalmKernelMealPreviousanalysesalsoattemptedtoillustrateprogressinthefinishedgoodsandbiofuelssectorsandprovidesomecommentaryontheconsumptionofpalmkernelmeal.Wecontinuetoreportonfinishedgoodsseparately,outliningsomeanalysisforkeypalmoilusingsectorsbelow.Wealsocontinuetoprovidecommentaryontheconsumptionofpalmkernelmeal.BecausebiofuelsuseintheUKhasnotencompassedanypalmoilconsumptionforthepast5years,wenowlistthesefiguresinAnnex5.Thisreport’sanalysisontheoleochemical,retail,animalfeed,andfoodservicesectorsalsocoversissueswithtrackingandmeasuringpalmoilderivativesandfractions.Efecahassentamodifiedquestionnairetoallstakeholders,basedonthisnewreportstructureanddraftdataresults.ResultsarelistedinAnnex8andreferredtothroughoutthereport.EfecahasalsocollectedqualitativeupdatesfromRoundtablemembers.Notallmembersrespondedwithupdates,butthosethatdidarelistedinAnnex9.

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil v

Annex3. 2016MethodologyThisAnnexdescribesindetailhowthetotalofUKsustainablepalmandpalmkerneloil,asapercentagetotaloftotalUKconsumptionwascalculated.ThisanalysisbuildsonthemethodologyusedtoobtainestimatesofUKsustainablepalmoilconsumptionintheDefraresearchreport(2011)‘MappingandUnderstandingtheUKPalmOilSupplyChain(EV0459)’,undertakenbyProforest,andthemethodologyofpreviousAnnualConsumptionReports(ACR’s)preparedbyCPETfrom2012–2015.Theinitial2011Defrareportestimated643,400mtofpalmoilimportedin2009includingPOandPKO,includingdirectfractions,oleinandstearinandpalmfattyaciddistillate.These2009importfiguresweredevelopedusingtradedata.Importsoffinishedproducts,derivatives,oleochemicalsandPKMwereexcludedfromthe2009estimate.The2012–2015ACR’susedthesamemethodology.Consequently,toensurethatthe2009estimatecanbeusedasabaseline,andacomparisoncanbemadewiththe2012–2015figures,thisstudyalsoexcludedimportsoffinishedproducts,oleochemicalsandderivativesfromtheimportfigures.Wehaveincludedadditionalinformationonimportedfinishedproducts,derivativesandfractions,andvariouspalmoilusingsectorsundersection2.

EstimatingUKconsumptionofsustainablepalmoilandpalmkerneloilThehighlycomplexnatureofpalmoil(PO)andpalmkerneloil(PKO)supplychainsmeansthatitisnotcurrentlypossibletodevelopareliableindicatoroftotalpalmoiluseintheUK,includingPOandPKOfoundinfinishedgoods.However,volumesofPOandPKOimportedintotheUKwereusedintheDefraresearchreport(2011)andthesubsequentAnnualConsumptionReports(2012-2015)asareliableindicatorofconsumptionintheUKmarketandconsequentlyhavealsobeenusedforthisAnnualProgressReport(APR).Previously,CPETincludedUKpalmoilpurchasessupportedbyRSPOcertificationincludingIdentityPreserved,SegregatedandMassBalanceCertifiedSustainablePalmOilproductsaswellasGreenPalm’sBookandClaimsysteminthecalculationsfortheACR’sfrom2012-2015(basedonthe2011Defraresearchreport).Asagreedin2016bytheRoundtableonSourcingSustainablePalmOil,astakeholdergroupofindustryassociationsandNGO’s,thisAPRreportsGreenPalmusageasseparatefromtheheadlinefigure.

ImportsofsustainablePOandPKOTotalvolumesofUKimportsandsalesofPOandPKOhavebeengatheredfromtwodatasources,FEDIOLandOilWorld,fortheyears2009,2010,2011,2012,2013,2014,2015and2016.BothFEDIOLandOilWorldusetradedatafromEUROSTAT,takingintoaccountthesametarifflinesforpalmoilandpalmkerneloil.EUROSTATreliesuponsubmissionsoftradedatafromindividualcountries.FEDIOLusesEUROSTATdata,withoutanyfurtherrevision,althoughitcollectstheEUROSTATdatalaterintheyearonceithasbeenrefined.OilWorldontheotherhandusestradeintelligencetorefine

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil vi

theirestimatesofPOandPKOdataincludingimportsintotheUK.Previously,twoscenariosweredevelopedtoreflectthedifferentdatasets.24AsagreedbytheRoundtableonSourcingSustainablePalmOil,astakeholdergroupofindustryassociationsandNGO’s,thisAPRwillreportoneheadlinefigurebasedontheFEDIOLbaselinedata.ThefigureresultingfromtheuseoftheOilWorlddataislistedinAnnex4.ThiswasdecidedbecausestakeholderswantedtoalignwithEurostatdataasmuchaspossible,inordertomirrorwhatotherEuropeancountriesaremeasuring.ThevolumeofpalmoilsupportedbyRSPOsupplychainmodelswasestimatedbycollatingthesubmissionsofdatagenerouslyprovidedfromUKrefinerieswiththehelpoftheSeedCrushersandOilProcessorsAssociation(SCOPA).ThiswasusedtoestimatetheproportionofPOandPKOimportsaccountedforbyMassBalance,SegregatedandIdentityPreservedCSPO.

ConsumptionofPalmKernelMealTotalvolumesofUKimportsofPKMhavebeengatheredfromtwodatasources,FEDIOLandOilWorld,fortheyears2009,2010,2011,2012,2013,2014,2015and2016.FEDIOLfigureshavebeenlistedinthemainbodyofthereportfor2016,withOilWorldfigureslistedinAnnex4.

ConsumptionofsustainablePOandPKObyConsumerGoodsManufacturersandRetailersVolumesofPOandPKOreportedintheRSPOACOP2015-16wereusedtoanalyseUKRSPORetailandConsumerGoodsManufacturersMemberssustainablepalmoilconsumptionintheSectorsectionslistedunderSection2,PartC.25ThiswasdonebycollatingtheRSPOACOPdataforvolumesof‘RSPOcertified’palmoilinmetrictonnes(whichincludesSegregated,IdentityPreservedandMassBalanceCSPOandGreenPalmcertificatesfromcompaniesoperatingintheUK).ItshouldbenotedthatRSPOmembers’datareportedthroughtheRSPOACOPdigesthasbeenusedastheonlydatasourceforestimatingtheconsumptionofsustainablePOandPKObyfinishedgoodsproducersandretailers.RSPOmembershipaccountsforarelativelyhighproportionofallconsumergoodsmanufacturersandretailers,butnotall.Thismeansthattheestimatedtotalconsumptionandestimatedsustainableconsumptionislikelytobeanunderestimate.

StakeholderconsultationAnonlinequestionnaire(foundinAnnex7)wassenttokeystakeholders.Questionsweredesignedtotriangulatethetrade,refineryandRSPOACOPdatawithstakeholderviews,byaskingstakeholderstoselecttheirrelevantsectorandchoosewhichsetofimportfiguresbestreflecttheirexperience.Thisapproachaimedtoenhancethelevelsofstakeholderfeedbackfromthepreviousstudy,whilstmaintainingcommercialconfidentiality.Thequestionnairesalsoallowedtheopportunityforstakeholderstocommentandprovidetheirownestimatesanddatawheretheywished.

FinalanalysisOncestakeholderfeedbackontheinitialestimateshadbeengathered,figureswererefined.

24Withtheirlatestannualstatisticspublication,OilWorldrevisedtheirpalmoilfiguresretrospectivelyfor2012and2013by2%and3%respectively.Thesenewfiguresarenotreflectedinthisreport’sfindings,inordertomaintaincontinuityinreporting.25http://www.rspo.org/en/annual_communications_of_progress

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil vii

AssumptionsandLimitationsDuetothecomplexnatureofpalmoilsupplychainsandtheavailabilityofdataithasbeeninevitablethatanumberofassumptionshavebeenmadeateachstageoftheanalysis.Wherepossiblethesehavebeeninlinewiththepreviousresearchand/orinformedbystakeholderengagement.Thissectionexplainswhatassumptionshavebeenmadeduringtheanalysis.CalculatingthetotalconsumptionofUKpalmandpalmkerneloil:

• TotalUKconsumptionhasbeendefinedasthetotalimportsinvolumeforagivenyear(metrictonnes).UKimportsarebaseduponsolelyEUROSTATdataprovidedbyFEDIOL.

• Derivatives/fractionsandfinishedgoodshavenotbeenincludedintheimportfigures.Thismeansthattheimportfiguresarelikelytobeanunderestimate.

Calculatingthevolumesofsustainablepalmandpalmkerneloil:

• ThisanalysisdefinesCSPOdifferentlyfrompreviousreports,whichincludedRSPOsupplychainmodelsMassBalance,SegregatedandIdentityPreservedCertifiedSustainablePalmOilandGreenPalmcertificates.ThisreportdoesnotincludeGreenPalmcertificatesintheheadlinefigures.

• The2011DefraresearchreportidentifiedarangeofcompaniesthatimportedpalmoilintotheUK.AsthemajorimportersofpalmoilintotheUK(assubstantiatedbystakeholderengagement)thisanalysisrefinedtheoriginalapproachtakenin2011andfocusedsolelyontherefinerydata,asthemostrobustmeanstocapturetheupstreamsupplysustainablepalmoilintheUK.Refinersprovidedsalesdata,asopposedtoimportdata.Salesandimportfiguresareassumedtobeessentiallythesame,thoughaveryminoramountofpalmoilandpalmkerneloilmaybelostintherefiningprocess.

• ItshouldbenotedthattheestimateofimportsofSegregated,MassBalanceandIdentityPreservedCertifiedSustainablePalmOil(CSPO)islikelytobeanunderestimateasitisbaseduponimportdatafromUKrefinersonlyandexcludesimportsbyothercompanies.

• TheRSPOAnnualCommunicationofProgressdatawasusedtoassessthedownstreamconsumptionofsustainablepalmoilfortheUK(the‘consumergoodsproducers’and‘retailer’classifications),althoughthisislikelytobeanunderestimateasitexcludespurchasesmadebynon-RSPOmembers.AllUKregisteredcompanieswereincludedintheanalysis.ThisconsumptiondatawasnotincludedinoverallfiguresshowingsustainablepalmoilconsumptionintheUK.

• InadditionthisstudyalsoincludesinformationaboutpalmoilconsumptionforbiofuelsundertheInternationalSustainability&CarbonCertificationassustainableforbiofuelsreportedundertheRenewableTransportFuelObligation(RTFO)andRenewablesObligation(RO)aslistedinAnnex5.

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil viii

Annex4.OilWorldFiguresOilWorldandFEDIOLfigureswereonly10%differentin2016,asopposedto24%and21%in2014and2015respectively.AccordingtoOilWorlddata,importsofpalmoilandpalmkerneloilintheUKaccountedfor467,400mtin2016.Usingthisbaselinedata,purchasesofMassBalance,Segregated,andIdentityPreservedCSPOrepresents70%ofUKpalmoilusage.ThebelowfigurecomparestotalOilWorldimportswithMassBalance,Segregated,andIdentityPreservedCSPOuseandGreenPalmpurchasesfrom2012–2016.

AccordingtoOilWorlddata,importsofpalmkernelmealintheUKaccountedfor463,300mtin2016,comparedto382,000mtin2015,or663,000mtin2009.ThereisverylittlediscrepancybetweenFEDIOLdataandOilWorlddataforpalmkernelmeal.

9% 15%30% 35% 38%

53% 62% 70%

16%19%

20%16%

17%

19%25% 18%

-

100

200

300

400

500

600

700

800

2009 2010 2011 2012 2013 2014 2015 2016

Thou

sand

s(mt)

OilWorld



AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil ix

Annex5. BiofuelsSustainableconsumptionofpalmoilwithinthebiofuelssectoriscontrolledbytheRenewableFuelsTransportObligation(RFTO)andtheRenewableObligation(RO).ThestatisticsoftheRFTOareintheirninthyearofreportingwiththemostrecentrunningfromthe15thApril2016tothe14thApril2017.VolumesoftotalaswellassustainablepalmoilusedinbiofuelsweregatheredfromtheRFTOstatisticsforthelast9yearperiodsandwereusedtoproducethebelowfigure.ItshouldbenotedthatthisRFTOreportingcalendardoesnotdirectlycorrespondtothereportingcalendarusedbyRSPO’sAnnualCommunicationofProgress.Inyearnine,100%ofbiofuelsweresustainable.Biofuelshavebeen100%sustainablesinceyear5.Therehasbeenasubstantialdecreaseinthevolumesofpalmoilinthelastsixyearsofreportingfrom127,008,760litresinYear1(2008-9),whichrepresented9.9%ofallbiofuels,tozerolitresinYear9(2015-16),or0%ofbiofuels.ThisdeclineintheuseofpalmoilasabiofuelintheUKhasbeenattributedtopolicychangessuchastheintroductionoftheRenewableEnergyDirective(RED).ThiswasadoptedbytheECin2009andadaptedintotheUK'sexistingRenewableTransportFuelObligation(RTFO).ChangestotheRFTO,asaresultoftheRED,includedmandatorysustainabilitycriteriasuchasrobustGreenhouseGasEmissiontargetsandlandcriteria,toensurethelifecycleGHGemissionsofbiomassareacceptableandtopreventadverselandusechangesuchasdeforestation.Somebiofuelsuppliersmayhavefoundithardtopurchasepalmoilandpalmkerneloilproductsthatcompliedwiththeserequirements,leadingtoareductionintheiruseinthebiofuelssector.TheRenewablesObligation(RO)providesincentivesforlarge-scalerenewableelectricitygenerationbyrequiringUKsupplierstosourceaproportionoftheirelectricityfromeligiblerenewablesources,includingpalmoilplantations.PalmKernelExpeller(PKE,alsoknownaspalmkernelmeal)andPalmFattyAcidDistillate(PFAD)arethemainpalmproductsconsumedbytheelectricitygeneratorsintheUKclaimingsupportundertheRenewablesObligationScheme.AccordingtotheAnnualSustainabilityReport2015-2016(Ofgem,2017),in2015-16therewasnoPKEorPFADconsumed,comparedtotheconsumptionofamixtureofPKEandPFADinsomepreviousyears-48,012mtin2011-12,17,735mtin2010-11and113,090mtin2009-10.Thisfluctuationislikelytobedrivenbyanumberoffactors,whichcouldincludeavailabilityofPKEandPFAD.

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil x

Annex6. Revised2015RefinerFiguresThe2015totalrefineryfiguresweresomewhatincorrect,duetoinaccuratereportingbyonerefinerontotalusageandtotalCSPOusage.Correctfigureshavenowbeensubmittedbytherefiner,butarenotincorporatedinthemainbodyofthereportforthepurposeofcomparisonwithpreviousyears’analysis.Thecorrect2015totalrefinerimports,whenincludingGreenPalm,shouldequal473,320mt,asopposedto457,294mt.Thecorrect2015totalrefinerimports,whennotincludingGreenPalm,shouldequal342,059mt,asopposedto326,033mt.Thegraphbelowdetailsacomparisonof2012–2016totalCSPOuse,includingGreenPalm,usingtherevised2015figures.

16%

35%41%

49%68%

81% 78%

22%

24%19%

22%

25%

31%

20%

-

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015 2016

Thou

sand

s(mt)

FEDIOL



AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xi

Annex7. Stakeholderquestionnaire Background

TheRoundtableonSourcingSustainablePalmOilhassignedtheAmsterdamDeclarationtoworktowards100%sustainablepalmoilsupplychainsinEuropeby2020,andhasagreedtocontinuereportingonsustainablepalmoilconsumptionintheUK.EfecahasproducedadraftAnnualProgressReport(APR)focusingontheimportofpalmoilintheUKasthecoreindicatorofsustainableconsumptionofpalmoilfortheUK.TheresultsoftheAPRareaddressedinthisquestionnaire.AboutthissurveyYourinputintothisAPRisessentialtoouranalysis.Thesurveyconsistsof18questionsandshouldtakeapproximately15minutestocomplete.PleasecompletethesurveybyDecember1statthelatest.Inthefollowing,wewouldliketoaskforyourviewsonourinitialpreliminaryfindings.Pleasenotethatthefindingshavenotyetbeenapprovedforpublicationandmaychange.Ifyouwouldliketoshareourpreliminaryfindingsexternally,pleasecontactus.Wewouldalsoliketogatheryourinputonobstaclestosourcing100%andideasonwherefurthersupportwouldbehelpful.HowtocompletethissurveyPleaseselecttheanswer(s)whichbestreflectyourviewandmakeasmanycommentsasyouwouldlike.Itwouldbeveryhelpfulifyoucanprovideexamplesthatsupportyourviews.Notethatsomequestionshaveanoptiontoselectmorethanoneanswerandyoucanalwaysinsertcomments.Ifyouwouldlikemoreinformationorneedhelpcompletingthisquestionnaire,[email protected].

Methodologyfor2016analysis AsanindicatorfortheconsumptionofsustainablepalmoilintheUKthisanalysishas

focusedontheimportandsupplyofRSPOmassbalanceorsegregatedCertifiedSustainablePalmOil(excludingderivativesandfinishedgoods)byUKrefineries.IthasnotaccountedforthepurchaseofGreenPalmcertificatesbyUKbasedcompaniesintheheadlinefigure.ThishasbeensupplementedbyRSPOACOPfiguresonUKretailandmanufacturingforadditionalcommentaryonprogressonthesustainableconsumptionofpalmoilintheUKamongRetailersandConsumerGoodsManufacturers.TotalvolumesofUKimportsofpalmandpalmkerneloilhavebeengatheredfromonedatasource:FEDIOL(representingtheEUvegetableoilandproteinmealIndustry)inordertomaintainconsistencywithEuropeancounterparts.InpreviousyearsdatafromOilWorldwasusedaswell.

1 Doyouhaveanycommentsonthenewmethodologyused?

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xii

2 Doyouhaveanycommentonpotentialnon-refineryimportsweshouldincludeinouranalysis?

3 DoyouhaveanycommentontheuseofFEDIOLasthemaindatasource?4 Doyouhaveanycommentonothertradedatasourcesthatshouldbeconsidered

duringtheanalysis? Summaryfindings-yourviews5 Doyouagreeordisagreewiththeestimatethatin2016approximately328,139metric

tonnesofUKimportsofpalmandpalmkerneloilweresustainablethroughmassbalance,segregatedoridentitypreservedCertifiedSustainablePalmOil?

6 Doyouagreeordisagreewiththeestimatethat84,949metrictonnesweresustainableasaccountedforbyGreenPalmcertificates?

7 ThepreliminaryfindingsindicatethatvolumesofmassbalanceandsegregatedCertifiedSustainablePalmOilshowedaslightincrease,whilethenumberofGreenPalmcertificatespurchasedintheUKdecreasedgreatlysince2015.Pleasecommentbasedonyourexperienceonwhatyouthinkmaybedrivingthesetrends.

8 Doyouagreeordisagreethatthe328,139metrictonnesofUKimportsofpalmandpalmkerneloilrepresent78%ofUKpalmoilconsumption,ordoyoufeelsomeimportdataismissingfromthisanalysis?

Meetingthe2020AmsterdamCommitment9 Didyoursectorortradeassociationmemberssource100%CSPObytheendof2016?10 Ifnot,whatwerethemainobstaclestosourcing100%CSPO?11 Hasyoursectorortradeassociationsetanewtargetmovingforward?12 HowwillyoucommunicatetheAmsterdamCommitmenttoyourstakeholders?13 Whatactionscantheprivatesector,NGO’s,andthegovernmenttaketosupport

progresstowardssourcing100%crediblycertifiedsustainablepalmoil?14 WoulditbehelpfulfortheRTtoundertakeaformalassessmentwithmemberson

areaswheretechnicalassistanceisrequired?15 Woulditbebeneficialtodevelopindicatorsforspecificsectorsthatusedifficultto

quantifyamountsofpalmoil,i.e.animalfeed,foodservice,oleochemicals?16 ShouldtheRTliaiseformallywithEuropeancounterpartsonmonitoringandtechnical

assistance?17 Haveyoubeenaskedbybuyerstosupplyinformationinadditiontothatrequiredby

RSPOcertification(i.e.accordingtoothercorporateresponsiblesourcingprotocols)? Pleasefeelfreetomakeanyadditionalcommentsyouwouldlike.

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xiii

Annex8. SummaryofStakeholderSurveyresultsTheStakeholderSurveywassentto64stakeholdersfrom44organisations,includingallmajortradeassociations.Outofthe64stakeholderscontacted,16responded.Manyrespondentsskippedseveralquestions.

CPETmethodologyfor2016analysis

1.Doyouhaveanycommentsonthenewmethodologyused?• WeagreewiththeuseofFEDIOLdataonlyandwelcomethereviewofACOP

data.• Withtheexpectedtransitionfromcertificatestophysicalsuppliesofpalmoil

thenewmethodologymakessense.Itshouldbeclearlyexplainedinthereportandcommunicationstoensurethereisnomisunderstanding.

• Betternowwehavejustonetradedataset.ACOPisalsogoodtotriangulatebutthequalityofACOPisvariablecompanytocompany.

• It'sprobablythebestavailable.• Itwouldbegoodtohavephysicallycertifiedpalmoilasonecategory(IPand

segregated),andmassbalanceasanother.Massbalancebeingaweakerstandard,sowecandrivetowardsphysicallycertified.

2.Doyouhaveanycommentonpotentialnon-refineryimportsweshouldincludeinouranalysis?

• Itwouldbeusefultoattempttodeterminederivativeconsumptionbyengagingwithindustrybodiesandhavingthemasktheirmembershipfordata

• Itwouldbeusefultoestimatehowmuchofourpalmoilconsumptionisbasedinimportedfinishedgoodsevenifitistoodifficulttocollectprecisedataonexactcontent.

• Wouldbeamazingtohavethem.Perhapsthroughasamplesurveyofatypicalbasketofgoods(likeforinflation)andanestimationofPO/PKO?

• Ideallyproductcominginreadyrefinedandpackedorasaningredientshouldbecountedalso.butacceptthisisinthetoodifficulttray!However,theFWDoughttobeabletohelponthereadypackedoil.

3.DoyouhaveanycommentontheuseofFEDIOLasthemaindatasource?

• WeagreewiththeuseofFEDIOLdataonly.• Noproblemwiththisaslongastherationalefortheselectionofthisdata

sourceisclearlyexplained.• PerhapswesayitisEuroStatratherthanFEDIOLwhichisthetrade

association.EuroStatisanofficialEUdataagency.• Justdon'tcallitFEDIOLdata!ItisEurostatdatathatFEDIOLpublishontheir

website.

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xiv

4.Doyouhaveanycommentonothertradedatasourcesthatshouldbeconsideredduringtheanalysis?

• RSPOdata;scorecarddataSummaryfindings-yourviews5.Doyouagreeordisagreewiththeestimatethatin2016approximately328,139metrictonnesofUKimportsofpalmandpalmkerneloilweresustainablethroughmassbalance,segregatedoridentitypreservedCertifiedSustainablePalmOil?

Agree Disagree(pleasecommentbelow)7(70%) 3(30%)

• Seemsfeasible• Wetrustthefigureisaccuratebutnotsureweunderstandthequestion–does

thismeanthatthesupplycomesfromsustainablesourcesorthatthequantityimportedwascertifiedunderthesestandards?

6.Doyouagreeordisagreewiththeestimatethat84,949metrictonnesweresustainableasaccountedforbyGreenPalmcertificates?

Agree Disagree(pleasecommentbelow)5(83%) 1(17%)

• Asabove,thefigureisprobablyaccuratebutGreenPalmdoesnotofferthesamelevelofassuranceandsustainabilityasphysicalsupplychains.

7.ThepreliminaryfindingsindicatethatvolumesofmassbalanceandsegregatedCertifiedSustainablePalmOilshowedaslightincrease,whilethenumberofGreenPalmcertificatespurchasedintheUKdecreasedgreatlysince2015.Pleasecommentbasedonyourexperienceonwhatyouthinkmaybedrivingthesetrends.CompaniesswitchingfromGreenPalmto

massbalanceorsegregatedReformulationofproductstoreducepalm

oilcontent13 2

• MostlikelyswitchtoMBALorSEGphysicalsupplychainsIdonotbelieve• Companiesareincreasinglylookingforphysicalsupplychains,whichare

becomingmoreavailable.ProducerscertifiedunderRSPOareincreasing,butcertifiedproductbeingsold(globally)hasstagnated.Nowitiscriticalthatsustainablepalmoilcertificationworkstoincludemoregrowers.ItwouldalsobeusefultounderstandwhybuyersarenotpurchasingRSPOCredits.Theremayalsobeincreasedconcernaboutthepopularityandviabilityof“palmoilfree”certification.

• Companiesaremovingtomorephysicalsuppliestostrengthentheirclaims;toincreasetraceability;inresponsetoNGO/otherpressureandasthenextstepfromcertificatebasedpurchases.

• Oruseofcompanyleveltraceabilityprocedures.• NGOslikeGreenpeacehavestatedthattheydonotseeGreenPalmasan

acceptableproofofsustainability.8.Doyouagreeordisagreethatthe328,139metrictonnesofUKimportsofpalmandpalmkerneloilrepresent78%ofUKpalmoilconsumption,ordoyoufeelsomeimportdataismissingfromthisanalysis?

• Broadlyagree

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xv

• Thedataismissingestimatesofembeddedpalmoil,importedwithinproductssuchassoapormargarinethatweknowaremajoruses.

• Notsure• Can'tcomment• Nocomment

Meetingthe2020AmsterdamCommitment9.Didyoursectorortradeassociationmemberssource100%CSPObytheendof2016?

• No• No• Weareabletosourcewhateverthemarketdemands• Yes,byendof2015

10.Ifnot,whatwerethemainobstaclestosourcing100%CSPO?

• webuylittlePO/PKoilsbutlargervolumesofderivatives• DifficulttosourceCSPOinanimalfeeds,especiallythroughwholesalers.• POderivativesandfractions

11.Hasyoursectorortradeassociationsetanewtargetmovingforward?

• ZSLhasatargettoensurethatallpalmoilinprocessedanimalfeedandcleaningproductsisCSPObyend2018.

• Yes100%by2020forEurope-acrossallsupplychains.• No• No

12.HowwillyoucommunicatetheAmsterdamCommitmenttoyourstakeholders?

• Constantengagementwithsuppliersandcustomers• ThroughtheBritishandIrishAssociationofZoosandAquariums(BIAZA),

whichprovidesresourcesformembersonitswebsite.WealsoprovideinformationonSPOTT.org

• Yes-thisisanimportantenablingcommitmentnotjustforpalmoilbutforotheragriculturalcommoditiestoo.

• Regularlywithourexternalcomm'sworkonsocialandmainstreammedia.• It'sdone• Tobedetermined

13.Whatactionscantheprivatesector,NGO’s,andthegovernmenttaketosupportprogresstowardssourcing100%crediblycertifiedsustainablepalmoil?

• Again,engagementwithindustrybodiesWecansupply100%• WorkwiththeRSPOandcompaniestoensurethecredibilityofthestandard

andincreaseitsuptake• Privatesector-strengthenedanddeepenedcommitmentse.g.tonon-own

brand;advocacytoencourageothercompanies;collaborativetransparency/workwithsupplychainactors;projectsonthegroundNGOs:continuedpressure,collaborationandsupport;pressureandengagementin

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xvi

newmarketsetc.Government:deepenedandextendedcommitment;supportservicesandadvice;widerengagement.

• Positivestoriesaboutpartnershipsinthegroundandimpactthatitishaving.UKGovernmentshoulddevelopanactionplaninsupportofAmsterdamDeclarationandsustainableproductionwithODAtosupportorigincountries.

• Encouragefoodserviceandpublicprocurement• publicprocurementcommitments,collaborativeactionondifficultsupply

chains• Asaninvestor,wecancommunicatethisexpectationtoourholdings.

14.WoulditbehelpfulfortheRTtoundertakeaformalassessmentwithmembersonareaswheretechnicalassistanceisrequired?

• Yes-specificallyforderivatives/fractionsandfinishedproducts.AlsohelpfulforasimilarRTonothercommoditieslikesoy.

• Yes• Yes• Yes• Yes• Maybe

15.Woulditbebeneficialtodevelopindicatorsforspecificsectorsthatusedifficulttoquantifyamountsofpalmoil,i.e.animalfeed,foodservice,oleochemicals?

• Yesbutnotrepeatingwhatalreadyexistsbutbringingtogetherusefulsources.• YesIthinksomeagreeduponassumptionsandproxyindicatorswouldbe

helpful.• Yes• Yes• Possibly

16.ShouldtheRTliaiseformallywithEuropeancounterpartsonmonitoringandtechnicalassistance?

• Itwouldbegoodtolooktowardsconsistentmonitoringapproachestoenablecomparisonandsharedexpertise/resources.

• Yes-weshouldaimforacommonmonitoringandreportingframeworkandcycle.

• Yes• Yes• Yes• Yes• Yes

17.HaveyoubeenaskedbybuyerstosupplyinformationinadditiontothatrequiredbyRSPOcertification(i.e.accordingtoothercorporateresponsiblesourcingprotocols)?

• Yesspecificallyahigherdegreeoftransparencyinthesupplychain• Requestsfromvisitorsregardingpalmoilcontentinfoodsoldonsite.

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xvii

Pleasefeelfreetomakeanyadditionalcommentsyouwouldlike.• WethinkitwouldbebettertocallthegrouptheUKStatementonSourcing

SustainablePalmOiltoavoidconfusionwiththeRSPO.ItmightalsobeusefultoanalyseifthereisadiscrepancybetweenUKimportsofCSPOsoldasCSPO,andimportsofCSPOsoldwithoutthepremiumasnon-CSPO.

• Thecommitmenthasbeenreallysuccessfulandisdemonstrativeoftheprogressthatcanbemadewhenthereisgovernmentsupport/encouragement.Iwouldliketoseecontinuedeffortto'getthejobdone'andtheextensionintootherforestriskcommoditiesinc.soy.

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xviii

Annex9. QualitativeUpdatesfromRoundtableMembersBritishandIrishAssociationofZoosandAquariums(BIAZA)BIAZAisaconservation,educationandwildlifecharityrepresentingover100memberorganisationsincludingallthesignificantzoosandaquariumsinBritainandIreland.BIAZA’sEnvironmentalSustainabilityandClimateChangeWorkingGroupaimstosupportmembersinhelpingtomeetbothlocalandglobalsustainabilitychallenges–thePalmOilSubgroupreportstothisgroup.During2016/2017,BIAZAmadeconsiderableprogressinraisingawarenessaboutpalmoilamongstitsmembersandprovidinginformationandguidelinestosupportmembersinboththeprocurementofsustainablepalmoilandincommunicatingtheissuetothepublic.Attheendof2016,BIAZAupdatedtheirpalmoilstatementandadvicetomembers.The2016statementreflectsthefactthatwenowencourageourmemberstoensureunsustainablepalmoilisremovedfromtheirsupplychainsbysourcingproductscontainingonlycertifiedsustainablepalmoil(CSPO),ratherthanboycottingpalmoiluseentirely.Beingamembershiporganisation,BIAZAguidesmembersonbestpracticeandhasprovidedguidelinesformembersoncreatingpoliciesandprocuringCSPO,andwillcontinuetodoso.However,achieving100%CSPOisnotapolicywhichBIAZAhasadoptedforitsmembers,althoughwewillcontinuetoadvocatethisasbestpractice.TheBIAZAPalmOilSubgroupisworkingtoprovideaccreditedcollectionswithstraight-forwardresourcestoinformandsupportthemonpalmoilissues.Toimproveandmaintaintheeffectivenessofsuchresources,weareconductingongoingmonitoringofdevelopmentsinpalmoilpolicyacrossthemembershipusingashortseven-questionqualitativesurvey.Inearly2017,were-ranthesurveywhichwasinitiallyconductedin2014.Theoverallresultsofsurveysconductedin2014and2017suggestincreasinginterestinandengagementwithpalmoilissuesacrosszoosandaquariumsintheUK.Of16institutionsthatrespondedtothesurveysinboth2014and2017,seventhatdidnothaveanofficialpalmoilpolicyorstancein2014nowhaveoneinplace.Inaddition,fiveinstitutionsthatdidnotsupportorwereunsureofsupportingsustainablepalmoilin2014nowreportthattheysupportsustainablepalmoil.InMay2017,thePalmOilSubgroupdeliveredatalkattheBIAZAAnnualConferencetomembersregardingthejustificationforthenewpositiononsustainablepalmoil.Aninternalpalmoilcampaignwaslaunchedformemberswhichincludedtheavailabilityofnewresourcescreatedbymembersonpalmoilforusebyothercollections.OurprocurementadvicewasupdatedtoreflectchangesintheindustryandtotheBIAZApositionstatement,andthiswasrolledoutagaintomembersviathememberscampaignpageonthenewwebsite.Anumberofnewinitiativesarecurrentlyunderway,includingthedevelopmentofacommunicationgroupformembersonpalmoilandsharedprocurementresourcesandsupplierinformationformembers.OnekeyobjectiveforBIAZAistoincreasetheextenttowhichzoosandaquariumsworldwidecollaborateinordertoinfluencetheindustrywithaviewtoreformingtheirpractice.FollowingaworkshopgivenbyBIAZAmembersattheEuropeanAssociationofZoosandAquaria(EAZA)ConservationForum,anewEAZApalmoilgrouphasnowbeensetuptoworkwithmembersacrossEuropeonpalmoilissues.BIAZAmembersarealsoworkingwithotherzoosataninternationalleveltoencouragemorecollaborativeworkonpalmoilgloballythroughtheWorldAssociationofZoosandAquariums(WAZA).

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xix

Althoughgoodprogresshasbeenmadeinthesector,challengesstillexistformemberslookingtosourceCSPO;understandingthepalmoilcontentuseintheanimalfeedsectorisparticularlyprohibitivetoreaching100%CSPO.Theanimalfeedsectorisverymuchbehindthefoodsectorintermsofknowledgeofpalmoilanditsderivativesuse,andobtainingaccurateinformationfromsuppliersisthereforeanothermajorchallenge.BIAZAwillcontinuetoreachouttorelevantorganisationstoovercomethischallenge.BritishRetailConsortium(BRC)BRCmemberscontinuetoleadeffortstodeliverresponsiblysourcedproductstotheircustomers.Bytheendof2015,leadingUKretailersreachedthemilestoneachievementofvoluntarilysourcing100%certifiedsustainablepalmoil.ThroughtheRetailerPalmOilGroupBRCmembersareworkingtoimprovethecredibilityofcertificationstandardsandsupportthesustainabletransformationofthewiderpalmoilindustry.Manychallengesstillremainintheproductionofpalmoilandcoordinatedactionisrequiredfromallstakeholdersinthesupplychain.ThroughtheUKRoundtableonSourcingSustainablePalmOil,BRCbackstheCommitmenttoSupport100%SustainablePalmOilinEuropeby2020.ChilledFoodAssociation(CFA)CFArepresentsmanufacturersofchilledpreparedfoods,predominantlysupplyingthemajormultiplesintheUK’sretailmarketunderretailers’ownlabels.TheUK’s£10billion-pluschilledpreparedfoodsectorhasneverbeenamajoruserofpalmoil.Asinpreviousyears,intheorderof99%ofpalmoilusedbyCFAmembersinchilledfoodproductioninUKoperationsisSPO,allcertified.Onlysmallquantities,asconstituentsofingredients,remaintobecertified.ThemajorityofSPOusedisRSPOsupplychaincertified.Ifthishasnotbeenpossible,suppliershavefoundalternativestopalmoil.RSPOAnnualCommunicationofProgressreportshavebeencompletedeachyearsince2012anddataarereportedtoretailcustomers.Thelimitedavailabilityofsomederivativesisaproblemwherethesearerequiredforfunctionality.Thisdisproportionatecostofpursuingcertificationisalsoabarrierforthesmall,insignificantremainingquantitiesoutstanding.RetailcustomercommitmentstodeforestationarehelpingtodriveuseofSPO.SeedCrushersandOilProcessorsAssociation(SCOPA)SCOPAisthetradeassociationforcompaniesengagedinoilseedextractionandoil/fatprocessingintheUnitedKingdom.SCOPArefinermembershavebeeninthepositiontosupply100%CSPOsince2012.SCOPAhaswelcomedtheUKStatementandarepleasedtohavemetthegrowingdemandforCSPO.SCOPAmembersareallmultinationalcompaniesandlong-standingRSPOmembersandtheirindividualglobalandnationalcommitmentsandprogresshavebeenpubliclystated.Thechallengescontinuetobepoordemandfromsomesectors,andsecuringcertifiedsustainablesuppliesofpalmkerneloilandfractions,althoughtherehasbeensignificantprogresswiththeseproducts.

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xx

SustainableRestaurantAssociation(SRA)TheSustainableRestaurantAssociationisanot-forprofitorganisationwhosemembershiprepresentsabroadspectrumofthehospitalityindustry,allunitedintheircommitmenttosustainabilityandmakingpositivechangestowardsabetterfoodsystem.TheSRAcurrentlyprovidesmemberswithafactsheetonpurchasingsustainablepalmoilproductsandresearchesalternativesuppliersofsustainablepalmoilformemberrestaurants.TheSRAencouragesandsupportsitsmemberstoproducesustainablepalmoilsourcingpoliciesandtopromotetheirintentionsandactionsforsustainablepalmoilsourcingtotheircustomers,suppliersandfellowfoodservicebusinesses.TheSRAfeelsthereareanumberofchallengesforitbeingabletoreportonitsprogressandasa“smallnot-for-profit”organisationthereisalimitedamountoftimetheSRAcanputintoactivitiesthatarenotcoretoitsmembership.Furthermore,theSRAconsidersthatitcanonlyrepresentitscurrentmembersandcannotspeakforthewholeofthehospitalityindustryandsoislimitedinthescopeofitsreporting.TheSRAisworkingcloselywithotherorganisationsintheindustrytocollaborativelyimproveandprovideuptodateinformationonsustainablepalmoil.The“FoodMadeGood”programmeishowtheSRAcollaborateswiththehospitalityindustrytoworktogethertowardsasharedgoal.Itsmonthlycampaignsfocusonselectedsustainabilitythemesandcallstoaction,wherebothmembersandnon-membersarebeabletoparticipateandjointheconversation.NewforthisyearisTheFoodMadeGoodonlinecommunityhub-aplatformformemberstodiscussspecifictopics,includingsustainablepalmoil.Foodservicebusinessesfromdifferentsectorsareencouragedtoshareknowledgeandbestpractice,discusschallengesandfindcommonsolutions.ZoologicalSocietyofLondon(ZSL)Asaninternationalwildlifeconservationcharity,ZSL(ZoologicalSocietyofLondon)workstoinfluenceboththepublicandprivatesectorsonsustainabilityissues.InMarch2017,ZSLpublishedareport–HiddenLand,HiddenRisks–ontheneedforimprovedcorporatereportingoflandholdingsassociatedwithpalmoilproduction(https://www.spott.org/palm-oil/landbank/).ZSL’sSPOTT(formerlytheSustainablePalmOilTransparencyToolkit)initiativeprovidesassessmentsof50ofthelargestpalmoilproducersandtraders,againstarevisedframeworkof125indicatorsrelatingtoenvironmental,socialandgovernance(ESG)bestpractice.SPOTTiscurrentlyexpandingitsfocusfrompalmoiltoothercommoditieswithhighimpactsonbiodiversity.ZSLwillpublishassessmentsof25timber,pulpandpapercompaniesoperatingintropicalregionsinOctober2017,followedbyupdatedpalmoilcompanytransparencyassessmentsinNovember2017atRSPORT15.InJune2017,SPOTTalsolaunchedanupdatedwebsite(https://www.spott.org/palm-oil).SPOTTcontributestotheKELOLASendangproject,apioneeringpartnershipforsustainablelandscapemanagement.TheprojectwasdevelopedbyZSLandpartnersincollaborationwithlocalcommunities,theprivatesectorandtheGovernmentofSouthSumatra,Indonesia.SupportedbyDFIDandotherfunders,theprojectaimstoaddressthechallengesofdeforestation,peatlanddegradation,wildfiresandtheirassociatedclimateimpactswithinthecontextofgreengrowthandbiodiversityconservation,inordertopilotasustainablemanagementpartnershipmodelacrosstheSembilang-

AnnualProgressReport–UKRoundtableonSourcingSustainablePalmOil xxi

DangkulandscapeofSouthSumatra,criticalhabitatfortheCriticallyEndangeredSumatrantigerandmanyotherspecies.AsanactivememberoftheRSPO,ZSLservesasanalternatememberontheRSPO’sBoardofGovernors,andparticipatesinitsBiodiversityandHighConservationValue(HCV)WorkingGroup.FollowingaZSL-ledresolution(http://www.rspo.org/file/ga12/GA12-Resolution6g.pdf),theRSPOSecretariathasimproveditsAnnualCommunicationofProgress(ACOP)reportingprocess.ZSLattendedandpresentedattheRSPOEuropeanRoundtableinJune,andhostedaneveningreceptionatZSLLondonZootointroduceRSPOmemberstoZSL’swiderconservationwork.ZSLisalsoactivelyparticipatingintheInternationalUnionforConservationofNature(IUCN)OilPalmTaskForce,establishedtoinformthedebateonthesustainabilityofpalmoilusingthelatestresearchandscientificinformation,andprovideguidancetoIUCNaboutitspoliciesandstrategiesthataffectorareaffectedbypalmoil.ZSLiscurrentlycontributingtoasituationanalysisasrequestedatthe2016WorldConservationCongressinResolution061on“Mitigatingtheimpactsofoilpalmexpansionandoperationsonbiodiversity”(https://portals.iucn.org/library/node/46478).TogetherwiththeBritishandIrishAssociationofZoosandAquariums(BIAZA),ZSLhascontinuedtopromotesustainablebehaviourchangeamongvisitorsandbest-practiceinzoologicalmanagement.Althoughgoodprogresshasbeenmadeinthesector,oneofthemainbarrierspreventingzoosfromreaching100percentsourcingofCSPOisthecurrentlackoftraceability,levelsofRSPOmembershipanduptakeofRSPOcertificationinanimalfeedsupplychains.ZSL’sPalmOilPolicynowincludesatime-boundcommitmenttoensurethatallpalmoilusedinprocessedanimalfeedandcleaningproductsatbothZSLLondonZooandZSLWhipsnadeZoowillbeCSPObyend2018.Foodforhumanconsumptionatbothzoosisalready100percentCSPO.

annual progress report - efeca · annual progress report – uk roundtable on sourcing sustainable...

Documents