This report was developed from a pilot exercise conducted by Nestlé, supported by Earthworm Foundation and using Starling satellite mapping and existing data, to better understand the company’s exposure to risks of future deforestation and land rights conflicts in Aceh province in Indonesia. Nestlé conducted the analysis as it seeks to “evolve from a no-deforestation strategy to a ‘forest-positive’ one”, in which the company sources from suppliers actively conserving and restoring forests, while promoting sustainable livelihoods and respecting human rights.
The Aceh Forest Footprint analysis mapped forest areas, peatlands and community lands located within or in proximity to (1) available sourcing boundaries with confirmed links to mills in Nestlé’s supply chain; (2) available sourcing boundaries without confirmed links to mills in our supply chain but that could enter Nestlé’s supply chain in the future; and (3) a 5, 20 and 50km radius around mills in our supply chain for which Nesté did not have sourcing boundaries.
Findings include that 89,667 hectares of forest and peat areas were found within palm oil concessions in the region, and another 1.45 million hectares of forested within 50km or mills in Nestlé’s supply chain was found suitable for palm oil. Engaging suppliers and producer groups further upstream on their commitments to protect these areas has been identified as essential. Conducting High Carbon Stock Approach (HCSA), High Conservation Value (HCV) and Free, Prior, and Informed Consent (FPIC) assessments prior to future development must be central to Nestlés supply chain engagement strategy.
RSPO Jurisdictional Approach to Certification (JA) is an approach to minimize the negative impact of palm oil cultivation on the environment and on communities, at the scale of government administrative areas, through the stepwise certification of the production and processing of sustainable oil palm products. It involves continuously progressing towards (1) achieving implementation no deforestation, no new planting on peat, ensuring safe and decent working conditions, and upholding human rights at landscape level; and (2) the certification of sustainable production and processing of oil palm products, managed and supported through a multi-stakeholder governed entity (referred as Jurisdictional Entity (JE) within the document).
The approach requires government leadership, support, and collaboration in playing a key role in facilitating a multi-stakeholder process, setting up overall governance, regulations and frameworks to bring jurisdictional members to apply RSPO standards progressively. Jurisdictional Certification will follow the RSPO 2018 Principles & Criteria, as well as other RSPO Standards. The challenge, however, is that the RSPO P&Cs have been developed with plantation concessions and estates, or growers and smallholders in mind, and not whole jurisdictions.
The RSPO Jurisdictional Working Group has agreed upon the framework presented in this document, but notes that new Standards and processes may be needed to address new challenges as they arise.
This case study looks into private sector engagement in the Siak Pelalawan Landscape Programme (SPLP), which currently comprises eight palm oil producers, traders, and downstream buyers, namely namely Cargill, Danone, Golden Agri-Resources (GAR), L’Oréal, Musim Mas, Neste, PepsiCo, and Unilever, in the Siak and Pelalawan districts in Riau province, Indonesia. The Coalition has been facilitated by Proforest and Daemeter Consulting, who also implement the programme.
Several key lessons for future private sector engagement in jurisdictional initiatives were identified. First, companies find collaboration on achieving a common goal in general attractive and efficient. The presence of a neutral convener is seen as essential to build trust within the coalitions as well as bridge trust with other stakeholder groups to allow real engagement and collaboration to take place. While SPLP activities are funded and implemented by its members, the mainstreaming of local government’s commitment to sustainable land use into policies is also highlighted as key to ensuring jurisdictionwide impact related to sustainable palm production. Companies interested in jurisdictional initiatives should be ready to commit for an extended period, as building coalitions takes time.