Maintain IOI’s Suspension Until Real Action Is Taken’, Urge Several Groups In A Letter To The Palm Oil Roundtable

22 Jul 2016 --- A collection of organizations has sent a letter to the Roundtable on Sustainable Palm Oil (RSPO) urging it not to lift a certification suspension on IOI, claiming it would be ‘premature’ to do so.

FoodIngredientsFirst has seen a copy of the letter which is signed by the Palm Oil Consumer Action, Orangutan Land Trust, Center for International Policy, Tropical Forest & Climate Initiative, Union of Concerned Scientists, Link-AR Borneo, Greenpeace Southeast Asia and Rainforest Action Network.

It follows the IOI Group being suspended earlier this year over its operations in the Ketapang area of Indonesian Borneo, where three of its subsidiaries are alleged to have violated a raft of RSPO standards meant to prevent rainforest destruction, social conflict and some laws.

The RSPO is understood to be considering whether or not to lift the suspension. However the letter sets out a case to maintain the suspension until ‘real action on the ground is achieved’.

“It is our view that it is far too premature to lift IOI’s suspension. The IOI Group has not taken the necessary actions to come into full compliance with the RSPO Certification Systems art. 4.2.4, nor resolved the April 2015 complaint. Any change at this stage would seriously hinder the resolution process between the complainant and respondent. It would also do irreparable harm to the RSPO’s credibility,” it says.

“RSPO must now demonstrate that its complaints and enforcement mechanisms are robust and effective by maintaining the suspension until such time that IOI Group has come into compliance with the RSPO Certification Systems art. 4.2.4 and taken significant action to resolve other issues of non-compliance.”

However, the IOI Group’s latest statement on the issue explains what it has been doing to overcome the certification suspension.

“Over the last few weeks, we have been working on our revised Sustainable Palm Oil Policy (SPOP) with input from our key stakeholders and the Policy document is being finalized. At the same time, we have also been working on our Sustainability Implementation Plan (SIP), which is a new document setting out clear actions and timelines for delivering the commitments in the SPOP,” it says.

“The SIP is expected to be finalized within the next two weeks and we are targeting to publish both the documents together as a strong expression of our sustainability commitments and also our seriousness in delivering on those commitments.”

The statement goes on to explain how after submitting its report in late May, the IOI Group understands that the RSPO complaint panel has deliberated on its application to lift the certification suspension.

“However, we have not received any official reply or substantive information from RSPO about the status of our application to lift the certification suspension.

“We hope that a favorable decision or a substantive reply can be given by RSPO soon.”

The letter also urges the RSPO to ensure the IOI Group does the following before lifting the suspension:

Achieve an immediate moratorium on the destruction of forests and peatlands across its operations, including those of its third party suppliers.

Adopt a meaningful landscape approach to mitigate the impact of its operations on forests and peatlands, starting with its four concessions in Ketapang.

Engage in extensive restoration of the forests and peatlands that it has destroyed.

Resolve outstanding grievances, including successfully concluding its seven year dispute with the longhouse communities of Long Teran Kanan (LTK) in Sarawak by recognizing their rights to their customary lands, determined through community mapping, and re-negotiating the company’s access and use of these lands subject to the Free, Prior and Informed Consent of the LTK and neighboring communities.

Uphold the rights of workers and tackle exploitative employment and trafficking of migrant workers documented in its operations.

Publish an ambitious time-bound plan with a deadline for third-party verification of compliance and termination of non-compliant suppliers.

Ensure transparent reporting backed by independent auditing of progress and publish concession maps, HCS and HCV assessments, a complete list of suppliers, and reporting on supplier compliance with its policies.

The letter goes on to say: “The harms caused by IOI occurred over many years and will take time and hard work to remedy and resolve. We are grateful to the RSPO for getting this process started through initiating IOI’s suspension. We urge the RSPO to allow more time for IOI to make substantive and lasting progress that meets the expectations of the complainants, IOI’s customers, and civil society and that has the potential to spur much broader industry transformation.”