EUDR and getting it right: Four lessons from the RSPO

A recent FoodNavigator investigation revealed the readiness of the world’s biggest FMCG suppliers for EUDR​, highlighting palm oil as a top-performing commodity across the board.

While the big players have superior resources to put strong systems in place to meet the deadline, which could now be extended​, the investigation revealed requirements for more work across other areas. This included cocoa and coffee, as well as other commodities.

So, how did palm oil become the star performer and what lessons can other commodities learn from its work?

Since its launch 20 years ago, the RSPO has busied itself with creating a supply chain that relies on sustainable palm oil. To the extent that approximately 90% of all palm oil coming into the European Union for food, feed and oleochemicals is RSPO certified, “so the EU is really the global leader in the uptake of this”, RSPO deputy director for EMEA Ruben Brunsveld tells FoodNavigator.

“From that perspective, so much progress has been made since 2004 from a handful of members to now over 6,000 worldwide – with approximately half based in the EU.”

The RSPO was founded because, at the time, the commodity was becoming more used across the global supply chain. FMCG manufacturers, along with charities like the WWF, NGOs and consumers could see its destructive impact on the world’s rainforests. So, it was time to act.

“In 2020, we carried out an Assurance Gap Analysis that addresses our third-party verification system and implemented best management practices to minimise the risks of conflicts of interest.”

RSPO meeting the goals of its members

The system, published in November 2020, set out a three-pronged approach to assurance, covering head office assessment, witness audit and compliance audit. 

“We’ve now reached a point where we are not just a [certification] standard organisation, but we define ourselves as a global partner for organisations to go to for sustainable palm oil assurance,” says Brunsveld.

But when it comes to EUDR, the RSPO’s position is that it is in play and has not been delayed, rather the legal requirements to provide the documentation has been delayed. As a result, the RSPO is continuing to meet its goals to support its members with implementation by the end of the year.

Other industry bodies can’t make the same claim when it comes to EUDR, though Brunsveld refuses to lay heavily into the process’s deficiencies leading up to the regulation’s delay. “The positive is that as the EU can be proud of the fact there’s a major market for palm oil that doesn’t want to contribute to deforestation. I think that’s something to be applauded,” he says.

“Having said that, there have been lots of discussions on the way it’s [EUDR] been set up. From the start, there could have been more discussions with producing companies on the negative side effects on smallholders, for instance. As a principle, we strongly support EUDR but there are still issues needing to be ironed out.”

The top priority is preventing the exclusion of smallholders from the supply chain, which risks reversing progress on economic development in some countries, he warns. Another issue needing to be resolved is the EC’s lack of, or limited, ability to hold parallel discussions with global stakeholders to ensure worldwide, positive impact.

Simple pointers for implementation from Brunsveld could help the EC and other bodies representing commodities and their journey towards EDUR readiness:

• Multi-stakeholder approach: ​Really make sure you have involvement from all players in the supply chain. We have the growers, importers, supply chain and consumer goods makers all communicating. We invite all the NGOs and the critics also into the discussion. Be open and transparent.
• Transparency: ​Demonstrate clearly what you do and the limitations of your organisation. Be as open as you can. We have a grievance procedure where anyone can lodge a complaint, which is made public through a trackable mechanism.
• Progress: ​Have a thorough process for the revision of your standard. We have a five-year review cycle. We need to ensure all voices are heard in this too, including smallholders, local communities, women and the whole diverse supply chain.
• Sharing: ​Be open with all your information and resources. Sometimes in the industry there’s a tendency to sit on info when we should support each.

The future of the RSPO

There are overlaps across all commodities working towards a deforestation-free food and drink supply chain, he points out.

“You can’t work on one without the other, we should be working with all other commodities for the same goal. Core to that is ISEAL, which is in a way a quality monitoring body for sustainability schemes, where they have to comply with certain criteria to be members,” he explains.

The volunteer schemes, like RSPO, work closely to exchange information in Brussels through a working directive on green claims. But its bigger and bolder initiatives such as these that are required to bolster the overall goal, says Brunsveld.

So, what’s standing in the way of EUDR success? Brunsveld is clear the regulation itself is in force and hasn’t been delayed, rather the “obligation to fill in the paperwork” has been pushed back.

“The commission is now proposing to delay those obligations to those companies and there’s a large chance that delay will happen. But it [EUDR] is already the law of the land,” he explains.

Businesses and organisations won’t be pushing for the reopening of discussions about the regulation itself, he is confident of that. The RSPO will, in the coming two months, launch its new Palm Resource Information and Sustainability Management (PRISMA) certification system, set to go live by the original EUDR deadline.

With that, EUDR has also called into question the future relevancy of organisations like the RSPO. “We will remain relevant in a post-EUDR world,” affirms Brunsveld. “We’ve seen over the last year a growth in our numbers and an interest in RSPO in Europe because people know we’re the go-to for questions on sustainable palm oil.

“We’re in a good position with our members and are rolling out a new [PRISMA] system to support them further with compliance. But it should also be highlighted that deforestation and sustainability are just two elements, we also focus on economy, child labour, ecology. So our relevance isn’t limited.”