On 9 February 2023, the Roundtable on Sustainable Palm Oil (RSPO) and the National Endowment for Democracy (NED) through its Center for International Private Enterprise (CIPE) have signed a Memorandum of Understanding (MoU) to support a more transparent and sustainable palm oil sector in Indonesia.
The MoU will include the development of a capacity building programme for RSPO members and palm-oil related stakeholders in Indonesia to promote the importance of transparency, anti-corruption practices and overall business integrity within the Indonesian palm oil ecosystem. Grower companies, civil society organisations and RSPO’s intermediary partners will stand to benefit from the programme.
“Our formal partnership with CIPE has come at a befitting time when stricter regulatory requirements, such as the European Union deforestation regulations, are pushing for greater traceability within the palm oil supply chain,” explained Joseph D’Cruz, CEO, RSPO. “The MoU provides a framework for both parties to work towards a more resilient and accountable palm oil sector in Indonesia by enhancing the capacities of our members in these critical areas.”
With the MoU, RSPO and CIPE will work together to develop the training modules. RSPO will provide the resources and knowhow, will CIPE will provide the financial resources required for the implementation of activities within the MoU.
RSPO has been working with CIPE since 2019 to raise awareness of and knowledge of anti-corruption prevention and to enable RSPO member companies in Indonesia to be more compliant and transparent. The MoU provides an opportunity for RSPO and CIPE to review and enhance the capacity building programme in line with current needs and challenges within the industry, including the impact of Covid-19 and stricter regulatory requirements on the palm oil supply chain.
“Today’s MoU signing represents our commitment to offer solutions to manage corruption risks for RSPO’s members, to the benefit of all of society. In addition, implementing the anti- corruption and business integrity measures and programs will increase business sustainability,” said Frank Brown, Director Anti-Corruption & Governance Center.
The MoU will enable RSPO to promote its Code of Conduct and ensure its members comply with it standards. It will also allow RSPO to leverage the private sector to drive market transformation, improve the performance of the palm oil industry, and increase uptake of certified sustainable palm oil.
A sustainable, competitive, and resilient palm oil sector will not only secure the long-term viability of the entire supply chain but also the livelihoods of communities where palm oil is grown.
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