Systems and procedures for suistainable palm oil in food products and feed concentrates

Groups: 
  • Meal services
Category: 
  • Tropical Deforestation

Basic

Requirements and Criteria Type: 
  • Contract Terms

Main Objective: 

The main purpose is to ensure that the supplier and/or his subcontractors work actively to prevent deforestation due to the palm oil that is used in food products and in feed concentrates used in the production of eggs, dairy and meat products that are encompassed by the agreement.

This supports Norway’s climate goal to reduce greenhouse gas emissions from deforestation and forest degradation in developing countries, in accordance with sustainable development.

 

Requirement Specification: 

Suppliers shall have a system and procedures to ensure that the palm oil used in food products and in feed concentrates used in the production of eggs, dairy and meat products that are encompassed by this agreement does not contribute to the deforestation of tropical forests and peat marshes.

If suppliers use subcontractors to fulfil this contract, the suppliers have an obligation to transfer and contribute to compliance with this requirement in the supply chain.

Documentation of the Requirement Specification: 

The documentation may be guidelines, an official approach (policy), description of the enterprise's work in the field or the like, which include objectives and information on how these objectives shall be achieved. The documentation should include a timed action plan.

Documentation must be made available by [insert date, for example one month after signing of the contract or start-up]. 

Information about the Requirement Specification: 

Palm oil is a relatively common ingredient in some types of feed concentrate. Use of this contract condition is relevant if your procurement includes eggs, dairy and meat products, such as poultry, pork, beef, milk, etc.

Several other food products also include palm oil, such as baked goods, bread and rolls, frozen food, chocolate and ice cream (the Rainforest Fund has prepared a palm oil guide that can provide an overview). These products fall largely under CPV code 15800000. It is relevant to use this contract condition if the procurement relates to these types of products. The requirement can be used both for the procurement of goods and procurement of meal services. Dialogue with the market is recommended. 

The formulation of the contract condition should be adapted if the procurement is only for eggs, dairy and meat products, or other food products.

About Round Table for Sustainable Palm Oil (RSPO):

One way of demonstrating that palm oil is sustainable is that it is certified in accordance with the RSPO levels Identity Preserved (IP) or Segregated (SG).  The RSPO scheme also encompasses the protection of indigenous peoples and community areas and rights (including the right to free, prior and informed consent).

There are several levels in the RSPO scheme. Identity Preserved and Segregated are the two highest levels. If palm oil certified in accordance with these two levels is procured, you will know where the palm oil comes from and that the palm oil procured is regarded as sustainable.

The other two levels in the RSPO scheme are RSPO Credit and Mass Balance (MB). RSPO Credit means that certificates are purchased that support palm oil production, but you do not know whether the palm oil procured is certified or not. Palm oil certified as MB means that certified palm oil and non-certified palm oil have been mixed. Palm oil that is certified as RSPO Credit or MB is not regarded as sustainable in itself, as you do not know where the palm oil you are procuring originates from.

When this contractual condition at the basic level is used, documentation describing that the supplier or subcontractor uses palm oil certified in accordance with any of the various RSPO levels, including RSPO Credit, Mass Balance, Identity Preserved or Segregated will be approved. Documentation that refers to the phase-out of the use of palm oil in feed concentrates or food products will be approved both for the requirement on basic and avanced level. 

Palm oil used directly in food products

Both a policy describing a transition to more sustainable palm oil in products or that one aims for less use of palm oil in general in products will fulfil the requirement. However, based on a health perspective, the use of palm oil in products is not recommended.

Market dialogue:

We recommend that you research the market with respect to how suppliers work with deforestation in their supply chains and what time limits are realistic. This is especially relevant if you are considering to use the requirements in the procurements of meal services. Check with potenial suppliers if and how they are working with deforestation. 

A lot of the palm oil used in feed concentrates in Norway is certified as Mass Balance or RSPO Credit. Feed concentrates with palm oil certified as Segregated are indeed available. Inquire in the market dialogue with prospective suppliers about what the situation is at the time of your procurement.

Topics for follow-up conversations:

What is the status of the work with deforestation in the supply chain?

Advanced

Requirements and Criteria Type: 
  • Contract Terms

Main Objective: 

The main purpose is to ensure that the supplier and/or his subcontractors actively work to prevent deforestation due to the palm oil used in food products and in feed concentrates used in the production of eggs, dairy and meat products that are encompassed by this agreement, and to contribute to a transition to the use of sustainable palm oil or phase-out of palm oil.

The requirement supports Norway’s climate goal to reduce greenhouse gas emissions from deforestation and forest degradation in developing countries, in accordance with sustainable development.

Requirement Specification: 

Suppliers shall have a system and procedures to ensure that the palm oil used in food products and in feed concentrates used in the production of eggs, dairy and meat products that are encompassed by this agreement does not contribute to the deforestation of tropical forests and peat marshes.

If the products offered in this agreement contain palm oil, the procedures shall contain the goal of increasing the share of sustainable palm oil in food products and in feed concentrates that are used in the production of eggs, dairy and meat products. This means that the palm oil is produced under conditions that ensure

  • that natural forest and peat marshes are preserved
  • that the palm oil can be traced back to the specific mill or farm
  • fair working conditions, in accordance with national and international legislation, such as the ILO core conventions

If suppliers use subcontractors to fulfil this contract, the suppliers have an obligation to transfer and contribute to compliance with this requirement in the supply chain.

Documentation of the Requirement Specification: 

Suppliers shall describe how the enterprise works with transitioning to food products that contain sustainable palm oil, and eggs, meat and dairy products in which the palm oil in the feed concentrates consumed by the animals has not contributed to deforestation of tropical forests and is regarded as sustainable. Suppliers may also submit documentation that describes the phase-out of the use of palm oil. Such documentation may be guidelines, an official approach (policy), description or the like, which include objectives and information on how these objectives shall be achieved. The guidelines should include a section on the transparency of supply chains, as well as a timed action plan.

Documentation must be made available by [insert date, for example one month after the signing of the contract or start-up].

Information about the Requirement Specification: 

Palm oil is a relatively common ingredient in some types of feed concentrate. Use of this contract condition is relevant if your procurement includes eggs, dairy and meat products, such as poultry, pork, beef, milk, etc.

Several other food products also contain palm oil, such as baked goods, bread and rolls, frozen food, chocolate and ice cream (the Rainforest Fund has prepared a palm oil guide that can provide an overview). These products fall largely under CPV code 15800000. It is relevant to use this contract condition if the procurement relates to these types of products. The requirement can be used both for the procurement of goods and procurement of meal services. Dialogue with the market is recommended. 

The formulation of the contract condition should be adapted if the procurement is only for eggs, dairy and meat products, or other food products.

About the Round Table for Sustainable Palm Oil (RSPO):

One way of demonstrating that palm oil is sustainable is that it is certified in accordance with the RSPO levels Identity Preserved (IP) or Segregated (SG).  The RSPO scheme also encompasses the protection of indigenous peoples and community areas and rights (including the right to free, prior and informed consent).

There are several levels in the RSPO scheme. Identity Preserved and Segregated are the two highest levels. If palm oil certified in accordance with these two levels is procured, you will know where the palm oil comes from and that the palm oil procured is regarded as sustainable.

The other two levels in the RSPO scheme are RSPO Credit and Mass Balance (MB). RSPO Credit means that certificates are purchased that support palm oil production, but you do not know whether the palm oil procured is certified or not. Palm oil certified as MB means that certified palm oil and non-certified palm oil have been mixed. Palm oil that is certified as RSPO Credit or MB is not regarded as sustainable in itself, as you do not know where the palm oil you are procuring originates from.

When this contractual condition is used at the advanced level, only documentation that describes the use of palm oil from the two highest levels in the RSPO scheme, Segregated or Identity Preserved, will be regarded as approved documentation. Documentation that refers to the phase-out of the use of palm oil in feed concentrates or food products will be approved both for the requirement on basic and avanced level. 

Palm oil used directly in food products

Both a policy describing a transition to more sustainable palm oil in products or that one aims for less use of palm oil in general in products will fulfil the requirement. However, based on a health perspective, the use of palm oil in products is not recommended.

Market dialogue:

We recommend that you research the market with respect to how suppliers work with deforestation in their supply chains and what time limits are realistic. This is especially relevant if you are considering to use the requirements in the procurements of meal services. Check with potenial suppliers if and how they are working with deforestation. 

A lot of the palm oil used in feed concentrates in Norway is certified as Mass Balance or RSPO Credit. Feed concentrates with palm oil certified as Segregated are indeed available. Inquire in the market dialogue with prospective suppliers about what the situation is at the time of their procurement.

Topics for follow-up conversations:

  • What is the status of the work with deforestation in the supply chain?

Related links: 

Published: 27. Mar 2019, Last modified: 31. May 2019