International Palm Oil Leadership Initiative

Client: UK and Netherlands Government.
Location: Europe and Southeast Asia.

From November 2009-December 2010, STC’s principals served as primary consultants and facilitators for an international palm oil industry leadership initiative funded by the governments of the United Kingdom (UK) and the Netherlands.  The initiative began with a summit meeting involving the UK Minister of Climate Change, the Indonesian Minister of Trade, and senior executives of four leading Indonesian and Malaysian palm oil companies in November 2009.  This launched parallel business-to-business dialogues in Europe and Southeast Asia to support increased production and trade of certified sustainable palm oil (CSPO) and reduction of greenhouse gas (GHG) emissions.  The key activities included:

1. Supporting a supply chain assessment toolkit by a major palm oil trading company.

2. Preparatory meetings of producers and buyers in Malaysia and the UK for a global palm oil summit in London.

3. Identification of potential partnerships between palm oil producers and smallholders.

In July 2010, the initiative supported a major international summit of palm oil buyers, traders, and producers in London, UK.  During this meeting, the industry representatives agreed to form an International Palm Oil Leadership Group.  This group will seek constructive dialogue between industry and governments for constructive actions and enabling policy reforms.  The group will also seek means to promote expanded commitments to sustainable practices beyond its members throughout the global industry.  This could include efforts to broaden supply chain assessments, support pilot smallholder schemes, and increase access to financing mechanisms such as REDD++ and CDM.