Update on RSPO Temporary Suspension

On March 25 2016, IOI Group and its downstream subsidiaries, including IOI Loders Croklaan were informed that the RSPO will temporarily suspend IOI Group’s RSPO certification as a result of the Ketapang complaint. The temporary suspension will commence on April 1st 2016. We are disappointed with this outcome as the full suspension also affects IOI Loders Croklaan’s downstream activities, which operate independently of the IOI Plantation Division who are managing the Ketapang project. We feel that the penalty of full suspension for the entire group is out of all proportion to the findings of the complaints panel.

On March 23 2016, IOI Plantations submitted the action plan, as requested and consistent with the guidelines of the Complaints Panel’s requirements, addressing the issues as outlined in the decision of the panel. IOI Plantations is fully committed to solving these issues, and in fact have some time ago commenced remedial actions based on a mitigation plan already submitted to RSPO in October 2015.

The RSPO will need some time to review the most recent action plan and accept the current or revised version of it. We are appealing to the RSPO to review the action plan as soon as possible, and to lift the suspension.

IOI Group will also be appealing to the RSPO to address the disproportionate nature of the penalty, which by involving IOI Loders Croklaan as a downstream subsidiary, is also impacting more than 300 customers, making thousands of branded products for consumers around the world. At a minimum, it would seem appropriate to allow IOI Loders Croklaan to honor existing commitments to customers who (by definition as users of CSPO ingredients) themselves are committed to change through the RSPO.

Service remains uninterrupted   

In the event of full suspension being implemented on April 1st, IOI Loders Croklaan’s service to customers will remain uninterrupted barring its ability to supply oil having formal RSPO certificates. Even though we will be unable to provide MB or SG certificates during the suspension, our existing inventory of certified sustainable palm oil (CSPO) was sourced as and remains compliant with the RSPO P&C. There will be no change to the quality or sustainable sourcing of the oil provided in this period. We will be offering to supply this oil as conventional (with no premiums), and will be actively working with customers to help them achieve their stated goals with respect to Palm Oil sustainability.

Please be assured that we take this matter very seriously and are working closely with IOI Plantations to resolve this matter as quickly as possible. We remain fully committed to providing a world-class sustainable palm oil supply chain – with our 3-step approach we continue to build a traceable, transparent and sustainable palm oil supply chain: we know where our oil comes from; 97% of our palm oil is traceable to mill level (Q4-2015) and we have started a mill verification program together with Proforest. We also contribute to the advancement of a sustainable palm oil industry through our role in several industry networks, firmly believing that collaboration is key in establishing real change.

Finally, it is important to note that the affected concessions involved in the complaint are not and have never been a part of IOI Loders Croklaan supply chain, and that IOI Plantations’ 12 certified mills and 158,000 Ha of certified estates are not in any way a subject of this complaint.

As soon as we have more information, we will inform you.

If you have questions, please call or mail IOI Loders Croklaan’s Sustainability Director Ben Vreeburg (+316 51057224, ben.vreeburg@ioiloders.com).