Promoting Global Sustainability Framework

of Sustainable Vegetable Oils

in the context of SDGs

At

FAO, Intergovernmental Group Meeting on

Oilseeds, Oils and Fats (IGG-OOF)

By

Dr. B. V. Mehta, Executive Director – SEA of India

&

Dr. Suresh Motwani, General Manager – Solidaridad, India

4th

March, 2021

1

The Solvent Extractors’

Association of India (SEA)

❑Formed in 1963 to foster the development & growth of the Solvent

Extraction & Vegetable Oil Industry in India

❑Largest and Premier Association in the Vegetable Oil Sector in India-

over 700 members across the country

❑First Association in Vegetable Oil and Oilseed sector to receive ISO

9001 Certification in India (2004), now upgrade to ISO 9001: 2015

❑Recognised by Ministry of Agriculture as Non Government

Organisation and TPO by Ministry of Commerce, Government of India

❑ ITC, Geneva (United Nation) has recognized SEA as the Best &

Successful Model Association

2

SOLIDARIDAD IS AN INTERNATIONAL CSO

WORKING IN 40 COUNTRIES WORLDWIDE

OVER 50

YEARS

OF

EXPERIENCE

IN WORKING

WITH UNDER-

RESOURCED

COMMUNITIES 3

Oil crop Type of crop Main oil production countries

Oil palm (Elaeis guineensis)Perennial (25-year cycle) Indonesia, Malaysia, Thailand

Soybean (Glycine max)Annual (~6-month cycle). Rotated with other

cropsUSA, Brazil, Argentina, China

Rapeseed (Brassica napus and Brassica campestris)

Annual (~6-month cycle). Rotated with other crops

China, Germany, Canada, India

Cotton (Gossypium hirsutum)Annual (~6-month cycle). Rotated with other

cropsChina, India

Groundnuts (Arachis hypogaea)Annual (4–5-month crop cycle). Rotated with

other cropsChina, India

Sunflower (Helianthus annuus)Annual (3–4-month crop cycle). Rotated with

other cropsUkraine, Russia

Coconut (Cocos nucifera) Perennial (30–50-year cycle) Philippines, Indonesia, India

Olive Olea europaea Perennial, long-lived. Sometimes inter-cropped Spain, Italy, Greece

OVERVIEW OF MAJOR VEGETABLE OIL CROPS

Source: www.nature.com

• Vegetable Oil has one of the highest trade shares (40%) of production of

all agricultural commodities

4

Production of major vegetable oils worldwide from 2012/13 to 2020/2021, by type (in million metric tons)

Consumption of Vegetables Oils Worldwide from 2013/14 to2020/2021, by Oil type (in million metric tons)

GLOBAL VEGETABLE OILS DEMAND AND SUPPLY

❑ Global demand for Vegetable Oils is projected to increase by 46% by 2050

❑ Population growth remains key in driving palm oil demand in the long run, especially in Africa and the Asia

Pacific

❑ Meeting the increasing demand will lead to substantial differential effects on biodiversity, food security,

climate change, land degradation and livelihoods etc.

Source: Statista

Source: OECD-FAO AGRICULTURAL OUTLOOK 2020-2029 5

KEY SUSTAINBILITY

ISSUES IN GLOBAL

VEGETABLE OIL SECTOR

6

INCREASING CONSUMPTION

7

AND A GROWING WORLD

POPULATION

7

ECOLOGICAL THREATS

8

DEFORESTATION, POLLUTION, LAND

DEGRADATION, WATER CONTAMINATION AND

CLIMATE CHANGE

8

RISING SOCIO-ECONOMIC

INEQUALITY

9

IN A SHIFTING GEOPOLITICAL

AND ECONOMIC POWER BALANCE

9

WE NEED SUSTAINABLE VEGETABLE OIL SUPPLY CHAINS

ON THREE LEVELS

PROSPERITY

Socio-economic

progress: income,

decent work, fair pay,

inclusive business

ownership models

BALANCE WITH

NATURE

Healthy ecosystems:

resilient against climate

change, healthy,

regenerative, circular,

pollution- and waste

free.

INCLUSIVITY

Social-political

influence: civic space,

voices from the south,

gender equity, youth,

indigenous minorities

10

ECONOMICALLY SUSTAINABLE

11

OPTIMIZE LAND USE, INCREASE

PRODUCTION

11

ECOLOGICALLY SUSTAINABLE

12

LESS POLLUTION, DECREASE

USE OF WATER, PESTICIDES AND

ENERGY

12

SOCIALLY SUSTAINABLE

13

WORKER RIGHTS, SAFETY, LIVING

INCOME

13

INCLUSIVE OF SMALLHOLDER

FARMERS, INDIGENOUS PEOPLE

AND YOUTH

14

INCLUSIVE OF WOMEN AND GIRLS

14

VOLUNTARY SUSTAINABILITY

STANDARDS

❑ Over the last two decades, voluntary sustainability standards (VSS)

have emerged as a new instrument for sustainability

❑ Beginning in the 1990s, the first VSS with global reach were

launched in the fields of agriculture, forestry, as well as in the fair-

trade arena

❑ VSS are widely used to govern environmental, social and ethical

issues in global supply chains

❑ Prominent examples are the Forest Stewardship Council, the

Rainforest Alliance and Fairtrade International

❑ There are more than 270 VSS in 600 product groups, 15 industries

and 180 countries, according to the International Trade Centre (ITC)15

TYPES OF VOLUNTARY

SUSTAINABILITY STANDARDSSome Examples

ISPO, MSPO

16

MAJOR SUSTAINABILITY STANDARDS

FOR KEY VEGETABLES OILS

ADM Responsible Soybean Standard

Amaggi Responsible Soy Standard

FEFAC Sourcing Guidelines

Louis Dreyfus Company (LDC) program for Sustainable Agriculture

Cargill - Triple S Program

U.S. Soy Sustainability Assurance Protocol (SSAP)

17

❑ More than 8% of agricultural land is certified under different standards

❑ Organic is the biggest sustainability standard in terms of both area and product variety. Representing 1.5% of

agricultural land worldwide

❑ Multiple-product standards such as Fairtrade, Global G.A.P, organic, ProTerra, Rainforest Alliance and UTZ

have lower coverage of a specific product than single-commodity standards because of their wider scope

❑ However, multiple-commodity standards are gaining importance – not only in the sugarcane sector, but also

in the coffee and soybean sectors. (Fairtrade, Rainforest Alliance, UTZ. ProTerra and organic)

Area Certified by Agricultural Standard, 2018

Sustainable Markets 2020, ITC 18

Global Certified Sustainable Palm Oil Area

❑ 5.1 million hectares out of 5.9 million hectares under oil palm

cultivation in Malaysia have obtained the Malaysian Sustainable

Palm Oil (MSPO) certification as of Nov 19, 2020

❑ 4.43 Million Hectares certified under the RSPO Standard as of Dec

2020

❑ 5.25 million hectares of palm oil plantations or around 32 percent of

Indonesia’s 16.38 million hectares of palm plantations, have

achieved ISPO certification, as of 30 April 2020

❑ Indian Palm Oil Sustainability framework introduced in the year

2017 have successfully certified 4507 hectares area under

sustainable oil palm under a pilot

19

VSS-Compliant Soybean

VSS-compliant soybean production accounted for 1.62% of total soybean production in 2016 and increased to nearly 2% in2018; Following the schemes of Pro Terra Foundation, RTRS and Organic

Global soybean production trend 2008–2016 and 2018

❑ Developing demand for VSS-compliant soybeans in China could be transformational As China is a major player, representing the world’s largest soybeanimporter and consumer

❑ The top five soybean traders and exporters account for nearly 90% of the total market thus they have an important role in the implementation anduptake of VSS

https://www.iisd.org/ssi/announcements/report-soybean-sector-slow-to-adopt-voluntary-sustainability-standards/ 20

❑ SEA - IPOS Council established at SEA office in Mumbai

❑ Council is set-up to govern IPOS and facilitate coordination

and communication with Palm Oil Producing Countries

❑ Facilitate promotion of IPOS, MSPO, ISPO/ trade linkages and enabling

policies for sustainable palm oil production and trade

❑ Facilitate alignment and synergies with other national standards such as

MSPO, ISPO and other similar standards

❑ IPOS formulation process

ensured engagement of

Indian stakeholders as well

as Malaysian and Indonesian

stakeholders

❑ Please Visit IPOS Website

www.iposindia.in

SEA-IPOS Council

21

❑ Supports Sustainable Expansion of Palm oil in India

through Farmer Trainings

❑ Provides India’s Own Sustainability Benchmark to the

Indian Industry for Sustainable Procurement/Uptake

❑ Support in Promoting Sustainable Palm Oil Consumption

in India and collaboration with Malaysian & Indonesian

Agencies

❑ Coordinates With other National Sustainability

Standards to Discuss about Sustainable Palm Oil

Production and Trade in Asia

❑ Support Indian Businesses to Communicate their

Sustainability Strategy benchmarked against IPOS

Framework

❑ Facilitate alignment between the Asian sustainability

standards (IPOS - MSPO) on sustainable palm oil

production and trade in Asia & cross-country

cooperation for sustainable palm oil

Major Functions of SEA – IPOS Council

22

ASIAN Sustainable Palm Oil Network, ASPN

23

Indonesia

India

Malaysia

China

Creating alignment and cooperation between

sustainability standards/frameworks/initiatives

23

IPOS- PRINCIPLES & CRITERIA

FOR SUSTAINABLE PALM OIL

Principle 1. Overall Continuous Improvement and

Transparency

Principle 2. Compliance with Legal Requirements and

Laws

Principle 3. Good Plantation Practices

Principle 4. Good Business Practice and commitment

to economic and financial viability

Principle 5. Responsible Community Relations, Fair

Labour and Employee conditions

Principle 6. Conserve and Protect Natural resources,

Environment, Bio-diversity and ecosystem

Criterions Indicators

3 7

4 10

4 15

2 5

3 21

4 18

20 76

24

First IPOS Audit Certificate Awarded to Godrej

Agrovet Ltd. In 2019

25

SEA - IPOS council accelerating the process of IPOS - MSPO

towards sustainable and inclusive palm oil sector

MUTUAL RECOGNITION – IPOS & MSPO

MoU signed between The Solvent Extractors’ Association (SEA) of India,

the Malaysian Palm Oil Board (MPOB) and Solidaridad 26

Together with Coordinating Ministry for Economic Affairs, The

Republic of Indonesia supporting ISPO, smallholders

Indonesian stakeholders’ interaction with Solvent Extractor's association of India

Trainings and capacity building of CSOs and Smallholders

27

MUTUAL RECOGNITIONS HAVE ALREADY STARTED WITH IPOS-

ISPO AGREEMENT BETWEEN INDIA & INDONESIA

28

29

India- Indonesia Joint Working Committee for Sustainable Palm

Oil Production and Trade between two countries

29

CHINA SUSTAINABLE SOY GUIDELINES

30

The new guidelines are being developed to facilitate continuous improvement and

transparency in the soy supply chain; preventing deforestation, land-use change

and protecting biodiversity

30

VOLUNTARY GUIDELINES ON SUSTAINABLE VEGETABLE OILS

(VG-SVO) & BENCHMARKING WITH SDGS

Match- making between

VG-SVO and 3 pillars of

SDG: economic, social,

environment

2 Benchmarking of

selected goals and their associated targets

against the sustainability indicators of VG-SVO

3 In-depth analysis for

complementarities between VG-SVO and Selected SGDs

1 Selection of # of SDGs

out of the 17 SDGs, focusing the analysis on those goals to which VG-

SVO and supply chain actors are best

positioned to directly contribute

31

Key Recommendations for VG-SVO

• It should not be developed in the direction of immediate dis-engagement

especially smallholders; it should create a level-playing field for all

• Mechanism for Credibility and Transparency in the implementation and

certification

• The measure (criteria and indicators) should be built on sound scientific

evidences and it should facilitate continuous improvements

• Enhance national capacity for governance of standard

• Mutual recognition/harmonization to avoid a “standard war” due to

multiple standards

• Strengthened Governance of standard with engagement of Government

and related Government agencies

• Voluntary standards should be converted as mandatory regulatory

frameworks which is needed for scale and to complete sector

transformation

32

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By

The Solvent Extractors’ Association of India

A Premier Association of Vegetable Oil Industry & Trade in India

ISO 9001:2015 Organisation142, Jolly Maker Chambers No. II, 14th Floor, 225, Nariman Point, Mumbai 400 021

Tel: (+91-22) 2202 1475. 2282 2979, Fax.: (+91-22) 2202 1692

Email: seaofindia1963@gmail.com , Website: www.seaofindia.com

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