Public commitment

The commitment covers:

1.    The switch to sustainably certified palm (kernel) oil, including fractions and derivatives

2.    Supplier dialogue on traceability and add-on criteria

3.    Reporting

Specifically, the members of FONAP agree to:

-          Source 100% of their crude refined and unrefined palm oil (without fractions[1] and derivatives[2]) using at least the segregated (SG) supply chain option;

-          Source 100% of their crude, refined and unrefined palm kernel oil (without fractions and derivatives)

• using at least the mass balance (MB) supply chain option;
• from 1 January 2018 at the latest using at least the segregated (SG) supply chain option.

Crude refined and unrefined palm (kernel) oil also contains proportionate amounts of crude, refined and unrefined palm (kernel) oil in one product (e.g. creams, flavourings and compound fats). 

-          With regard to fractions and derivatives (irrespective of whether these are based on palm oil or palm kernel oil)

• source at least 50% using at least the mass balance supply chain option;
• from 2020 source 100% using at least the mass balance supply chain option.
• Deviations are permitted in the non-food sector only, provided that the lack of availability can be explained plausibly, and an action plan is submitted to achieve the target. A detailed written justification is required. It is recommended that the volumes that could not be purchased in the MB, SG or IP supply chain options be compensated by purchasing an appropriate number of smallholder certificates.

When switching derivatives to MB, the proportion of palm (kernel) oil in the derivative is relevant.

For fractions and derivatives, Book and Claim certificates must still be used for the remaining volumes. We consider Book and Claim to be a transitional model that can be used to facilitate the transition to physical supply. In this context, we support the use of off-market deals that already meet FONAP’s add-on criteria.

The use of Book and Claim certificates from independent small-scale farmers (I.S. certificates) is still possible in all cases and reduces the obligations to the same extent for mass balance (MB) and segregated (SG) volumes.