Cargill Awarded ISPO Certification for Sustainable Palm Oil Production

Cargill has announced that its oil palm plantation, PT Hindoli in South Sumatra, has received official Indonesia Sustainable Palm Oil (ISPO) certification. The ISPO is a non-profit public body that assesses standards for the sustainable production of palm oil in Indonesia.

8 Mar 2013 --- This milestone, which recognizes PT Hindoli’s efforts in the sustainable production of palm oil, comes just three months after the Musi Banyuasin Regency in South Sumatra conferred the Platinum MUBA CSR Award for excellence in the Agribusiness and Agriculture sector to the Cargill oil palm plantation.

PT Hindoli was one of the first oil palm plantations in Indonesia to receive Roundtable on Sustainable Palm Oil (RSPO) certification in 2009. In 2010, it also received the International Sustainability and Carbon Certification (ISCC) for the sustainable supply of palm oil for biofuels within the European Union (EU). In addition, PT Hindoli smallholders from the Mukti Jaya smallholder cooperative were one of the first smallholders to receive ISCC certification in August last year.

After an Expert Audit review conducted by Sucofindo, the plantation was subsequently certified by the Executive Board of the ISPO. The ISPO is an initiative implemented by the Indonesian Government in partnership with the Ministry of Agriculture, State Ministry for the Environment, the Ministry of Forestry and the National Land Agency with the aim of improving the competitiveness of Indonesian palm oil in the global marketplace. The ISPO is aligned with the Indonesian President’s firm pledge to reduce greenhouse gases and address related problems in the environment.

The spotlight was cast on PT Hindoli recently after its commitment to sustainable palm oil production was featured as the sole example by the ISPO in a documentary. The documentary, which was produced by the Indonesian Ministry of Agriculture and broadcasted on Indonesian TV stations such as TVOne, highlighted PT Hindoli’s readiness to ISPO and RSPO audits and its long-term commitment to environmental sustainability.

“The ISPO certification is a strong reflection of our efforts in responsible oil palm production and is a landmark achievement for Cargill in its efforts in this area”, said John Hartmann, Chief Operating Officer, Cargill Tropical Palm. “With the growing demand for palm oil in both food and non-food applications, it is critical that all parts of the palm oil supply chain – from plantations to retailers – act in an environmentally sustainable and socially responsible manner. Cargill fully supports the efforts of the ISPO to develop the mechanisms to distinguish sustainable palm oil products in the market.”

The ISPO audit consists of field trials of over 15 palm oil companies, conducted by auditors from an independent certification body. The auditors are accompanied by officials from the ISPO and the Indonesian government, who assess a company’s adherence to ISPO standards, areas of improvement, as well as guidance to farmers.

“Cargill is a firm supporter of the sustainable production of palm oil. Sustainability is key not just for the palm oil sector, but for all of agriculture, particularly in Indonesia. Together with our farmers, we are committed to protecting our environment, while at the same time, helping meet the increasing global demand for palm oil,” said Anthony Yeow, President Director, PT Hindoli. “Our smallholders in PT Hindoli are among the first in the world to become certified RSPO’s Smallholder Principles & Criteria in August 2010, and we look forward to participating in a similar scheme under the ISPO as well.”

Cargill currently owns and operates two palm plantations in Indonesia – PT Hindoli in Sumatra and PT Harapan Sawit Lestari in Kalimantan. Cargill supports efforts to help farmers adopt sustainable agricultural practices, improve land use, increase the quality and quantity of their crops, and promote safe and efficient working practices. Cargill also provides information and training to improve farming methods and efficiencies in pesticide and fertilizer use, especially in rural areas where education and literacy levels are low, increasing the quality of life and the incomes of the farmers.