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Opinion Article

CSR, Oil Palm and the RSPO: Translating boardroom philosophy into conservation action on the ground [ 438-446 ]

Gary D. Paoli, Betsy Yaap, Philip L. Wells and Aisyah Sileuw

Abstract
Effective corporate social responsibility (CSR) is becoming mainstream strategic business planning for the oil palm industry. At its core, CSR aims to align business values with the needs and expectations of a broader range of stakeholders, beyond just investors and shareholders. In oil palm, this entails taking responsibility for social and environmental impacts, often beyond what is required by law, to build social and environmental capital in pursuit of a local “license to operate.” Third-party certification standards are a popular tool for guiding and monitoring the impact of CSR programs and have taken root in oil palm through the multi-stakeholder Roundtable on Sustainable Palm Oil (RSPO). Eight years running, the RSPO has made substantial inroads to improve the environmental and social performance of Southeast Asia’s largest and fastest growing plantation industry. Yet serious challenges remain for RSPO to mainstream environmentally sustainable and socially responsible practices throughout the supply chain. Based on experiences working with multi-stakeholder groups to implement RSPO, including industry, government, local communities, and NGOs, we highlight areas where change is required not only among growers but also the broader RSPO membership to build on recent achievements and accelerate progress. Major challenges include (1) improving corporate governance of plantation companies to translate boardroom CSR decisions into conservation actions on the ground; (2) pushing RSPO member processors, traders, manufacturers, and retailers, who profit from palm oil, to share the cost burden of implementing sustainability, (3) strengthening NGO partnerships with companies to provide the social and environmental expertise companies require but still lack, and (4) creating a more supportive regulatory structure in producer countries to implement sustainability. Challenges to RSPO progress can be overcome, but will require coordinated action to ensure that the scale and pace of change is sufficient to deliver long-term benefits for the environment before it is too late.


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General interest summaries (when available)
    English: For those who follow social or environmental issues in Southeast Asia, the phrase ‘oil palm development’ evokes stark images of expanding monoculture plantations, elimination of native biodiversity, pollution of water-courses, and the marginalization of disempowered local communities. In an effort to transform this image and the business as usual practices that lead to it, the palm oil industry and other concerned parties have been taking steps to promote socially and environmentally responsible practices throughout the oil palm supply chain. The initiative has taken root through a third-party certification scheme established by the multi-stakeholder Roundtable on Sustainable Palm Oil (RSPO, www.rspo.org). Eight years running, the RSPO has made substantial inroads to improve the environmental and social performance of Southeast Asia’s largest, most profitable and fastest growing plantation industry. Yet, serious challenges remain for RSPO to achieve its goal of mainstreaming responsible practices throughout the industry. Based on experiences working with multi-stakeholder groups to implement RSPO, including industry, government, local communities and NGOs, this paper highlights areas where further change is required by palm oil producers, as well as the broader RSPO membership to build on recent achievements and accelerate progress. Major changes necessary include: (i) better translation of progressive boardroom philosophies into responsible practice on the ground, (ii) pushing RSPO member processors & traders, manufacturers and retailers, who profit from palm oil, to share the cost burden of implementing sustainability in plantations, (iii) expanding and strengthening NGO partnerships with companies to provide the social and environmental expertise companies require but still lack, and (iv) creating a more supportive regulatory framework in producer countries to help companies implement sustainability. The paper concludes that challenges to RSPO progress can be overcome, and it will require coordinated action to ensure that the scale and pace of change on the ground delivers long-term benefits for the environment before it is too late.

    Español: Para aquellos que siguen los problemas sociales o ambientales en el sudeste asiático, la frase "el desarrollo del aceite de palma" evoca imágenes duras de las plantaciones de monocultivo de expansión, la eliminación de la biodiversidad nativa, la contaminación de cursos de agua, y la marginación de las comunidades locales sin poder. En un esfuerzo por transformar esta imagen y el negocio de las prácticas habituales que conducen a ella, la industria de aceite de palma y otras partes interesadas han estado tomando medidas para promover prácticas social y ambientalmente responsables en toda la cadena de suministro de aceite de palma. La iniciativa se ha arraigado a través de un sistema de certificación de terceros establecidos por la Mesa Redonda de múltiples partes interesadas sobre Aceite de Palma Sostenible (RSPO, www.rspo.org). Ocho años consecutivos, la RSPO ha hecho avances importantes para mejorar el desempeño ambiental y social de las industrias de plantaciones más grandes, rentables y de mayor crecimiento del sudeste asiático. Sin embargo, sigue habiendo problemas importantes de la RSPO para lograr su objetivo de incorporar prácticas responsables en la industria. Con base en las experiencias de trabajo con grupos de múltiples partes interesadas para aplicar la RSPO, incluida la industria, gobierno, comunidades locales y las ONG, este documento pone de relieve las áreas donde se requiere profundizar el cambio por los productores de aceite de palma, así como el número de miembros RSPO más amplio para construir sobre los logros recientes y acelerar el progreso. Los principales cambios necesarios son: (i) una mejor aplicación progresiva de las filosofías de las sala de juntas en la práctica responsable en el suelo, (ii) impulsar los procesadores de la RSPO miembros y los comerciantes, los fabricantes y los minoristas, que se benefician de aceite de palma, para compartir la carga del costo de la aplicación de la sostenibilidad en plantaciones, (iii) la ampliación y fortalecimiento de las asociaciones de las ONG con las empresas para proporcionar a las empresas conocimientos sociales y ambientales requeridos, pero aún en falta, y (iv) la creación de un marco normativo más favorable en los países productores para ayudar a las empresas poner en práctica la sostenibilidad. El documento concluye que los retos para el progreso RSPO se puede superar, y se requerirá de una acción coordinada para garantizar que la escala y el ritmo del cambio en el suelo ofrece beneficios a largo plazo para el medio ambiente antes de que sea demasiado tarde.

    Portugués: Para as pessoas que acompanham as questões ambientais do Sudeste da Ásia, a frase “desenvolvimento pelo óleo de palma” direciona para uma imagem de expansão de plantações de monoculturas, eliminação da biodiversidade nativa, poluição de cursos de água e a marginalização de comunidades locais. Em um esforço de transformar essa imagem negativa do negócio, a indústria de óleo de palma e outras partes envolvidas têm promovido práticas ambientalmente e socialmente responsáveis associadas à cadeia produtiva do óleo de palma. Essa iniciativa teve origem através de um esquema de certificação multissetorial estabelecida pela Mesaredonda Óleo de Palma Sustentavél (RSPO, www.rspo.org). Em oito anos de atividade a RSPO tem feito investimentos substanciais para a melhoria dos indicadores de desenvolvimento social e ambiental do Sudeste Asiático e deixando mais lucrativa e com crescimento mais rápido as indústrias de plantações. Ainda, sérios desafios permanecem para o RSPO para alcançar o objetivo de introdução dessas práticas responsáveis em todos os setores das indústrias. Baseados em experiências e trabalhando com grupos multisetorias para implementar o RSPO, incluindo governos, indústrias, comunidades locais, e ONGs, essa estratégia é destacada em áreas nas quais futuras mudanças são requeridas nos produtores de óleo de palma como também amplia o alcance para a inclusão de novos membros do RSPO e acelera o progresso das práticas. As maiores mudanças necessárias são: (i) melhor tradução da filosofia das indústrias de óleo de palma dentro de práticas de responsabilidades ambientais e sociais , (ii) sensibilizar e motivar comerciantes, fabricantes e varejistas que lucram com o óleo da palma para compartilhar a carga de custos de implementação do RSPO nas plantações, (iii) expandir as parcerias entre ONGs e empresas para prover a expertise social e ambiental nas companhias que querem mas não possuem a expertise e (iv) criar um maior quadro de protocolos para o RSPO em países produtores para ajudar as empresas implementarem a sustentabilidade. O artigo conclui que os desafios para implementar o RSPO podem ser superados e exigirá uma ação coordenada para garantir que a escala e o ritmo das mudanças na cadeia produtiva do óleo de palma traga benéficos em longo prazo para o meio ambiente.
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   Tropical Conservation Science is an open-access e-journal that publishes research relating to conservation of tropical forests and other tropical ecosystems.

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