Competitive, Resilient & Sustainable Sector
A sustainable, competitive and resilient palm oil sector ensures long-term viability of the entire supply chain and shared benefits for both private sector as well as the livelihoods of communities where oil palm is grown.
An effective planning and management system addresses economic viability, environmental and social compliance and risk, establishes procedures and systems for ensuring conformance to the RSPO P&C, and supports continuous improvement toward sustainable palm oil.
Principle 1
Optimise Productivity, Efficiency, Positive Impacts And Resilience
1.1 Criteria
Smallholders establish a legal entity independent from the milling company that has the organisational capacity to comply with the RSPO ISH Standard.
Indicators
1.1 E(applies to)
Legally registered entities have documented evidence that include: (i) Legal formation (as per country requirements) (ii) Fair and transparent decisionmaking and governance (iii) Additional documents per requirements for Group Formation and Management. (iv) Signed or thumb printed Smallholder Declaration from all smallholder members (Reference Annex 2).
1.1 MS(A)(applies to)
Group manager and group members have an Internal Control System (ICS) that meets all the ICS Eligibility and MS A requirements (section 3.2 below) and complete training on oil palm pricing mechanisms, production costing, financial management, and best practices for smallholder organisations.
1.1 MS(B)(applies to)
Smallholder groups are operating in accordance with Best Management Practices (BMP) for groups, including:
- Fair and transparent decision-making and governance
- Financial management.
1.2 Criteria
Smallholders have the capacity to effectively manage their farm.
Indicators
Content for Section 1
1.3 Criteria
Smallholders implement Best Management Practices (BMP) on their farms according to minimum topics recommended by RSPO.
Indicators
Content for Section 1
Principle 2
Operate Legally & Respect Human Rights
Ensuring compliance and upholding human rights: our commitment to legal operations and responsible practices in the oil palm industry.
2.1 Criteria
There is compliance with all applicable local, national, and ratified international laws and regulations.
*National Interpretation will determine:
(a) all relevant legislation, including but is not limited to: regulations governing land tenure and land-use rights, customary law, labour, agricultural practices (e.g. chemical use), environment (e.g. wildlife laws, pollution), storage, transportation and processing practices.
(b) country's obligations under international laws or conventions [e.g. Convention on Biological Diversity (CBD), ILO Core Conventions, etc.]
Indicators
Content for Section 1
2.2 Criteria
The Unit of Certification shall commit to ethical conduct in all business operations and transactions.
Indicators
2.2.1(applies to)
A list of contracted parties is maintained.
2.2.2(applies to)
All contracts, including those for FFB supply, contain specific clauses on meeting applicable legal requirements. This can be demonstrated by the third party.
2.2.3(applies to)
All contracts, including those for FFB supply, contain clauses disallowing child, forced and trafficked labour, and the payment of recruitment fees and related costs. No young worker below 18 employed by the Contractor shall be allowed to work at the Unit of Certification.