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The Living Wage: A Crucial Building Block for Responsible Palm Oil Growers

Download the publication.

Launched in April 2014, the Palm Oil Innovation Group Indicators was the first palm oil verification standard requiring grower members to undertake a living wage assessment, as defined by the Global Living Wage Coalition’s ANKER Framework.

With the support of POIG members, it was therefore a welcome outcome when the RSPO 2018 P&C review included new indicator (6.2.6) requiring that a living wage is paid to all workers. Furthermore, the RSPO endorsed the Global Living Wage Coalition (GLWC) Framework as the standard for growers to apply.

However, the new indicator did not require all growers to undertake their own living wage assessment, but rather rely on GLWC benchmarks, on the National Interpretation Working Groups, and on future guidance by the RSPO. As a consequence, in the five years since the adoption, few grower members have implemented the indicator, blaming lack of relevant guidance, and there are now concerns that the living wage indicator may be watered down or abandoned in the ongoing 2023 P&C review.

From POIG’s perspective, abandoning the living wage requirement would set back the Workers’ Rights components of the P&C significantly, and undermine the reputation and robustness of the RSPO Standard in the eyes of commercial, regulatory and civil society stakeholders globally.

This publication is developed to showcase that the implementation of a living wage is feasible in a wide variety of national, local and cultural contexts. However, as demonstrated by POIG’s grower members, it is critical that living wage assessments are undertaken locally, by the company itself with real-life local data and stakeholder participation. The three companies featured have all used the same methodology but have adapted it to align with different contexts. This publication does not seek to rubberstamp the various approaches and conclusions, but rather showcase how companies in different contexts can gain valuable insights and provide better economic conditions for workers and their families.

Download the publication to learn more about the methodologies applied by the three case studies featuring the POIG verified growers.

Conclusion of POIG

POIG has worked to achieve better outcomes for all since 2013. As we approach our 10th year in 2023, we will share our journey, lessons, outcomes, and challenges in a series of impact reports to mark the formal conclusion of our initiative.

The first of the reports is scheduled for publication beginning 2023. Please sign-up with your name and email on the lower left of this page to receive notification for updates.

Please reach out to [email protected] for further information.

Palm Oil Innovation Group Presents Leading Labour Practices to Uphold Workers’ Rights

New publication on labour rights comes at critical time as growing body of research highlights widespread labour rights issues in conventional palm oil industry.

Today, the Palm Oil Innovation Group (POIG) released a publication titled, “Palm Oil Innovations: Labour Rights” on the heels of the 14th annual meeting of the Roundtable on Sustainable Palm Oil (RSPO) in Bangkok, Thailand which highlighted worker exploitation issues in the palm oil sector.

This publication—the first in a series from POIG—highlights some of the innovations being implemented by POIG members with respect to labour practices. It builds upon the group’s work to define and independently verify fair labour conditions for workers on palm oil plantations using its Palm Oil Charter and associated verification indicators.

A growing body of evidence on palm oil labour brings to light critical issues such as forced and child labour, human trafficking, low wages and poor working conditions for a large number of workers on plantations across Indonesia and Malaysia. The publication presents improvements that can be put into practice by palm oil producers and the RSPO to uphold workers’ rights and break the link between palm oil and labour exploitation.

Key recommendations include:

  • Paying a decent living wage, as agreed through the participation of workers and independent unions;
  • No fees or costs are charged to workers, directly or indirectly, for recruitment or employment services;
  • No retention of passports, other government¬ issued identification and any personal valuables;
  • Limiting precarious work by ensuring that casual, temporary and day labour is limited to jobs that are genuinely temporary or seasonal, and account for no more than 20% of the workforce;
  • Providing access to accessible, equitable and legitimate grievance mechanisms.

A major strength of the Palm Oil Innovation Group is that its grower members have completed, or are currently undergoing, third party assessments of their compliance with requirements to halt deforestation, development on peatlands and the exploitation of communities or workers’ rights. It is an open forum and new members are encouraged to apply.

The Palm Oil Innovation Group is a multi-stakeholder initiative that strives to achieve the adoption of responsible palm oil production practices by key players in the supply chain through developing and sharing a credible and verifiable benchmark that builds upon the RSPO, and creating and promoting innovations.

The Palm Oil Innovations: Labour Rights publication can be downloaded here.

To download the statement click here.

Association for Tropical Biology and Conservation (ATBC) acknowledges the Palm Oil Innovation Group’s role in advancing responsible palm oil in Montpellier Declaration

The Association for Tropical Biology and Conservation (ATBC) held its 53rd annual meeting in Montpellier, France, on 19 – 23 June 2016. The event gathered together 751 scientists and conservationists from 54 nations, marking the largest meeting of tropical biologists ever in Europe.

One main outcome from the meeting is the Montpellier Declaration, a statement which acknowledges and commends recent developments towards responsible palm oil production, including the Palm Oil Innovation Group (POIG). POIG was mentioned as one of the main examples of collaboration between environmental Non-Governmental Organisations (NGOs), palm oil producing companies, and buyers of palm oil. The document states that such collaborations have, “…led to an attitudinal shift towards sustainable oil palm plantation management”. The statement further highlights that joint efforts between European companies and NGOs have been critical to advancing the responsible palm oil agenda.

Equally significant, is the set of recommendations provided in the Declaration relating to the advancement of responsible palm oil. The recommendations are put forward in recognition of the important role the European consumer market plays, as well as the challenges that remain. One of the challenges mentioned, for example, relates to the gap between the successes in promoting and increasing the supply of responsible palm oil production, and the commitments of consumer companies to exclusively source responsible palm oil.

The stakeholders and stakeholder groups towards which the recommendations are addressed include: the European Union (EU), European Governments, EU financial institutions, and European retail and manufacturer sectors.

To view the recommendations, as well as the full statement, please download the Montpellier Declaration here.

Innovation Group Delivers a Leap Forward In Efforts To Transform the Palm Oil Industry

Jakarta, Indonesia – Today, the Palm Oil Innovation Group (POIG), a leading initiative to transform the palm oil industry, has released a new, robust and field-tested set of verification indicators that will drive much-needed change in the industry. The POIG Charter is already being used by leaders in the palm oil sector to break the link between palm oil, the destruction of forests and peatlands, and the violation of human and labour rights.

The POIG verification indicators will be used by independent third parties to determine if a palm oil company is protecting forests and peatlands that have high biodiversity, carbon and social values, while simultaneously upholding the rights of local communities and workers, and improving livelihoods for local communities. The indicators have been field tested by three palm oil growers who are founding members of POIG, in Brazil, Colombia and Papua New Guinea, and it will soon be put into practice in Indonesia.

“We have shown that it is possible to grow palm oil responsibly and that our claims can be tested and verified in the field by independent third-parties in a cost-effective manner. This is important as consumers want to know that the ingredients in the products they use have been grown to the highest environmental and social standards possible,” said Tulio Dias Brito, Agropalma.

“Today marks a leap forward in our efforts to transform the palm oil sector. We have developed the first field-tested verification tool that can be used by global brands to third-party verify their suppliers’ compliance with the Palm Oil Innovation Group Charter,” said Annisa Rahmawati, Greenpeace Southeast Asia.

“The Palm Oil Innovation Group (POIG) remains the gold standard for the production of responsible palm oil. It builds upon other certification systems, such as the Roundtable for Sustainable Palm Oil, and tackles some of the most challenging issues facing the palm oil sector, such as the destruction of high carbon stock forests and the abuse of the most vulnerable workers,” said Matthias Diemer, Chair of the Palm Oil Innovation Group.

“The time has come for other palm oil producers, traders, retailers and manufacturers to demand, and scale up their efforts to produce truly responsible palm oil that is in line with the leading POIG Charter,” concluded Robin Averbeck, Rainforest Action Network.

The Palm Oil Innovation Group (POIG) is a collective of progressive palm oil companies and brands together with environmental and social NGOs that are working to build on the Roundtable on Sustainable Palm Oil standards and commitments by both demonstrating innovation to implement RSPO existing standards as well as additional critical issues. For more information visit www.poig.org

The Palm Oil Innovation Group Charter, verification indicators, and summary of the public consultation can be reviewed here.

To download the statement, click here.

Palm Oil Innovation Group Announces New Members, Leads Change from Plantations in Indonesia to Supermarket Shelves Across the Globe

Indonesian palm oil giant Musim Mas and major global brands join leading initiative to reform palm oil industry

Amidst an environmental and human health crisis resulting from the forest fires in Indonesia, key players have gathered in Kuala Lumpur for the annual meeting of the Roundtable on Sustainable Palm Oil (RSPO). Marking the occasion, the Palm Oil Innovation Group (POIG), an initiative to reform the palm oil industry, is announcing new POIG members that are committing to drive much-needed transformation in the palm oil sector.

Leading brands like Ferrero, Danone, Stephenson and Boulder Brands and Indonesian palm oil giant Musim Mas Group, have recently joined innovative growers Agropalma and DAABON, along with international NGOs including Greenpeace, WWF, Rainforest Action Network (RAN) and Forest Peoples Programme (FPP), to build upon the RSPO standards and commitments. These new members seek to establish new business practices in the palm oil industry that end deforestation, the burning and development of peatlands and gross labor and human rights violations.

Musim Mas is the first major Southeast Asian palm oil company to join POIG; with over 200,000 hectares of plantations and a primary role in global palm oil trade, it is well placed to create needed change in the palm oil supply chain. Musim Mas is committing to implement the POIG charter across its entire supply chain, and will test new innovations and advocate for these improvements to become business norms in palm oil production.

“The Palm Oil Innovation Group welcomes the commitment by Musim Mas, Ferrero, Danone, Stephenson and Boulder Brands to innovate and join the ranks of the most responsible companies in the palm oil supply chain,” says Matthias Diemer, the co-chair of the Palm Oil Innovation Group (POIG).

At a time of increased global pressure to improve the palm oil industry and during deliberations on the adoption of the RSPO’s voluntary scheme, RSPO Next, POIG is growing both membership and its capacity to address key issues in the palm oil sector. POIG remains the only initiative that is able to deliver independently verified and truly responsible palm oil, produced by companies whose practices go beyond the requirements of the RSPO.

The Palm Oil Innovation Group (POIG) is a collective of progressive palm oil companies and brands together with environmental and social NGOs that are working to push the boundaries of current requirements of the RSPO. POIG aims to support the RSPO through building on RSPO standards and commitments by both demonstrating innovation to implement RSPO existing standards as well as additional critical issues. www.poig.org

To download the statement, click here.

Palm Oil Innovation Group Brings to Market Third Party Verified Responsible Palm Oil

Audits against POIG pilot indicators carried out on three founding growers’ plantations

Amidst the growing debate on responsible palm oil production, three leading palm oil producers have sought to demonstrate what is possible. Palm Oil Innovation Group (POIG) grower members Agropalma and DAABON as well as founding member New Britain Palm Oil[1] successfully carried out verification audits to the POIG Charter requirements and pilot indicators, which outline robust requirements for verifying that palm oil is not linked to deforestation, expansion on peatlands, and human and labour rights violations.

The purpose of the audits was to assess compliance of the producers with the POIG Charter as well as trial the pilot indicators, and the audits were successful in both aims. All three companies – Agropalma, DAABON, and New Britain Palm Oil – were found to be aligned to the POIG Charter as there were no critical non-compliances with the pilot indicators, and the feedback from audits has been integrated into a formal indicator revision process. The revised indicators are now available for public consultation until 4 September 2015.

As a growing number of companies throughout the supply chain commit to decouple their palm oil production, consumption, and trading from deforestation, from expansion on carbon-rich peatlands, and from human and labour rights violations, POIG is the only avenue for third-party verification of those requirements to date. The POIG Charter and indicators build on the existing RSPO standards, and have now reached the next step of demonstrating that verified compliance with POIG standards is possible.  Our challenge to the RSPO is for it to adopt these innovations into its own standards and auditing procedures.

“With POIG 3rd party verification, for the first time there is now the chance to source responsible palm oil that we know doesn’t come from deforestation, peatland clearance, or exploitation. This move by POIG gives the option to the many major consumer brands and retailers that have made strong commitments to end deforestation and exploitation to use credible palm supply chains to source directly from POIG verified producers. This is a huge step forward in the quest to transform the palm oil industry” said Grant Rosoman from Greenpeace.

[1] New Britain Palm Oil is a founding member of the Palm Oil Innovation Group, and carried out a successful verification audit against the POIG Charter requirements and pilot indicators in October 2014. In February 2015 NBPOL was acquired by Sime Darby Bhd, and POIG is hopeful that Sime Darby will embrace the responsible palm oil innovations demonstrated by NBPOL by applying to join POIG itself.

To download the statement click here.

For further reference, the revised POIG Charter indicators, the Verification Reports, and Producer Innovations Profiles are available here.

First American Food Company Adopts Truly Responsible Palm Oil Commitment

Palm Oil Innovation Group welcomes Boulder Brands Palm Oil Announcement

An alliance of international NGOs and palm oil companies today welcomed the adoption of a leading palm oil commitment by Boulder Brands.

Boulder Brands is the first American food company to require its suppliers to independently verify their compliance with the Palm Oil Innovation Group (POIG). Its commitment requires its suppliers to break the link between palm oil production and deforestation by protecting and restoring natural forests, and upholding human rights and the rights of all workers.

“Today, Boulder Brands has put its weight behind an exciting and innovative transformation of the palm oil sector. Through their strict sourcing guidelines and support of the Palm Oil Innovation Group they are now taking a pivotal role in driving a move towards responsible palm oil” says Gemma Tillack, spokesperson for Rainforest Action Network.

POIG is finding innovative ways to build on the current Roundtable for Sustainable Palm Oil (RSPO) standards to halt deforestation, respect rights, resolve conflict and ensure greater traceability from plantations to products found on grocery store shelves.

“Growing concern amongst consumers and consumer goods manufacturing companies for the impact of conventional palm oil production on the rainforests, carbon rich peatlands, and local communities and workers shows a pressing need for the palm oil industry to innovate and meet the new global benchmark for responsible palm oil” says Felipe Guerrero from DAABON Organic.

Boulder Brands was the first food manufacturer to join the Palm Oil Innovation Group (POIG) that seeks to break the link between palm oil and deforestation, social conflict and carbon emissions. Other supporters include Ferrero, REWE, EDEKA, Tesco and Stephenson Personal Care.

For media comment contact representatives of the Palm Oil Innovation Group:

Gemma Tillack: Rainforest Action Network +1 415 350 0341

Felipe Guerrero: DAABON Organic [email protected]

To download the statement click here

Progress towards responsible palm oil

As policy-makers meet with palm oil growers, traders and consumers in Brussels for the European Palm Oil Alliance conference it is clear that innovation is needed to break the link between palm oil and deforestation and social conflict.

One initiative is leading the way in demonstrating what is required to achieve truly responsible palm oil. The Palm Oil Innovation Group (POIG) is a collective of progressive palm oil companies together with environmental and social NGOs that are working to push the boundaries of current requirements of the Roundtable on Sustainable Palm Oil (RSPO).

The POIG has reached a number of new milestones in its efforts to find innovative ways to build on the current RSPO standards to halt deforestation, respect rights, resolve conflict and ensure greater traceability from plantations to grocery store shelves.

  • POIG palm oil producer members, DAABON, Agropalma and New Britain Palm Oil Limited, have all commenced to trial third party verification of their practices against the Palm Oil Innovation Group Charter. These producers are breaking ground on new ways to implement the High Carbon Stock Approach and improve worker conditions and are driving the refinement of the procedures and indicators used to confirm compliance. Major palm oil producer Golden Agri-Resources has recently applied to become a member of the POIG and its application is being considered.
  • New members with social expertise have joined the POIG and a Technical Advisory Group has been set up to develop innovative new ways to verify that companies uphold strong social safeguards including the protection of community and workers’ rights in the palm oil sector.
  • Integral to the POIG Charter is a commitment to break the link between palm oil expansion and deforestation, by conserving and restoring High Conservation Values (HCV), by respecting the Free, Prior and Informed Consent of affected communities and by putting a High Carbon Stock Approach into practice. Members of the POIG have joined a broad group of stakeholders in establishing a High Carbon Stock Approach Steering Group that will govern the refinement and standardization of the HCS Approach.
  • Six of the world’s leading consumer goods manufacturers and retailers have now pledged their support to drive the transformation of their sector towards responsible palm oil production and sourcing. Tesco, Ferrero, REWE Group, EDEKA, Boulder Brands and Stephenson have all announced their support for the Palm Oil Innovation Group (POIG). This growing support amongst buyers of palm oil shows a pressing need for the palm oil industry to innovate and meet the new global benchmark for responsible palm oil.

The Palm Oil Innovation Group is leading the way in innovation. The question now is whether more brands will come forward, support POIG and ask the RSPO and the palm oil industry to adopt these innovations to find new ways to transform palm oil for the better.

Download this press release here

Palm Oil Innovation Group Demonstrates What’s Next For RSPO

As palm oil growers, traders and consumers gather in Kuala Lumpur for the Roundtable on Sustainable Palm Oil (RSPO) meeting it is clear that innovation is needed to break the link between palm oil and deforestation and social conflict.

One initiative is leading the way in demonstrating What’s Next for the RSPO. The Palm Oil Innovation Group (POIG) is a collective of progressive palm oil companies together with environmental and social NGOs that are working to push the boundaries of current requirements of the RSPO.

The POIG has reached a number of new milestones in its efforts to find innovative ways to build on the current Roundtable for Sustainable Palm Oil (RSPO) standards to halt deforestation, respect rights, resolve conflict and ensure greater traceability from plantations to grocery store shelves.

• POIG palm oil producer members, Agropalma and New Britain Palm Oil Limited, have commenced to trial third party verification of their practices against the Palm Oil Innovation Group Charter. These producers are breaking ground on new ways to implement the High Carbon Stock Approach and improve worker conditions and are driving the refinement of the procedures and indicators used to confirm compliance. Major palm oil producer Golden Agri-Resources has recently applied to become a member of the POIG and its application is being considered.

• New members with social expertise have joined the POIG and a Technical Advisory Group has been set up to develop innovative new ways to verify that companies uphold strong social safeguards including the protection of community and workers’ rights in the palm oil sector.

• Integral to the POIG Charter is a commitment to break the link between palm oil expansion and deforestation, by conserving and restoring High Conservation Values (HCV), by respecting the Free, Prior and Informed Consent of affected communities and by putting a High Carbon Stock Approach into practice. Members of the POIG have joined a broad group of stakeholders in establishing a High Carbon Stock Approach Steering Group that will govern the refinement and standardization of the HCS Approach.

• Five of the world’s leading consumer goods manufacturers and retailers today pledged their support to drive the transformation of their sector towards responsible palm oil production and sourcing. Ferrero, REWE Group, EDEKA, Boulder Brands and Stephenson have all announced their support for the Palm Oil Innovation Group (POIG). This growing support amongst buyers of palm oil shows a pressing need for the palm oil industry to innovate and meet the new global benchmark for responsible palm oil.

The Palm Oil Innovation Group is leading the way in innovation. The question now is whether or not the RSPO will adopt these innovations to find new ways to transform the palm oil landscape for the better.

For media comment contact representatives of the Palm Oil Innovation Group:
Suzanne Kroger, Greenpeace: + 62 811 8800 420, [email protected]
Simon Lord, New Britain Palm Oil: [email protected]
Adam Harrison, WWF: [email protected]

To download the statement click here