RSPO Independent Smallholder Standard Document for Public ... · 3.2 The System Requirements for Group ... manage and finance the land). I meet any further criteria relative to the

Public Consultation RSPO Independent Smallholder Standard 10 April 2019

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RSPO Independent Smallholder Standard

Document for Public Consultation

10 April 2019


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Table of Contents Introduction ............................................................................................................................................... 3

1. Scope: Understanding the who, what and how of the RSPO Independent Smallholder Standard .. 5

Who can use the RSPO Independent Smallholder Standard ................................................................. 5

1.2. To what does the ISH Standard apply ............................................................................................. 5

1.3 How to get certified under the ISH Standard .................................................................................. 6

The Unit of Certification for the ISH Standard is comprised of a group of smallholders, the group manager and all individual members. The certificate holder is the group. ......................................... 6

1.4 Which Standard to use if the ISH does not apply ............................................................................ 6

2. RSPO Phased Approach for Independent Smallholders Certification ............................................... 7

2.1 Verification, Claims and Credits ..................................................................................................... 8

2.1.1 Eligibility - entry level................................................................................................................ 8

2.1.2 Milestone A – continual improvement and progress ............................................................... 9

2.1.3 Milestone B – continual improvement and full compliance .................................................... 9

3. Normative Requirements of the RSPO Independent Smallholder Standard .................................. 11

3.1 Principles, Criteria, Indicators....................................................................................................... 11

3.1.1. Further guidance to interpret the PCIs .................................................................................. 11

3.1.2 Support for smallholders to achieve compliance ................................................................... 11

3.1.3 Skipping indicators that are not applicable ............................................................................ 12

3.1.4 Smallholder Declaration ......................................................................................................... 12

3.1.5 Additional considerations ....................................................................................................... 12

3.2 The System Requirements for Group Formation ......................................................................... 24

3.2.1 Support for group managers to form a group ........................................................................ 24

4.Guidance for Group Managers ............................................................................................................. 28

Annex 1 – Definitions ............................................................................................................................... 52

Annex 2 .................................................................................................................................................... 54

Summary of RSPO’s Simplified HCV Approach & Tool for Independent Smallholders ........................... 54

Annex 3 .................................................................................................................................................... 56

Assurance Frameworks for the RSPO Independent Smallholder Standard ............................................ 56


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The RSPO Independent Smallholder Standard Introduction RSPO recognises the importance of smallholders and the need for improving smallholder inclusion into the RSPO system. The RSPO Smallholder Strategy, endorsed by the RSPO Board of Governors on 14th of June 2017 mandates the simplification of the RSPO certification system and standard (principles, criteria and indicators) in order to better meet the needs of smallholders. In 2018, The RSPO Theory of Change (ToC) identified the goal of inclusion of more smallholders in the system to produce sustainably while earning a sustainable livelihood from palm oil. The newly developed RSPO Independent Smallholder Standard (RSPO ISH Standard) responds to the needs and challenges of independent smallholders for inclusion in the RSPO system: simple and straightforward requirements and cost-effective tools which consider diversity, capacity and incentives. This standard complements the RSPO Principles & Criteria (P&C) 2018. The RSPO ISH Standard is organised into three impact areas using the RSPO ToC as a framework.

Impact Area ToC ISH Standard Prosperity

Impact Goal: Competitive, resilient, and

sustainable sector

Principle 1: Optimise productivity, efficiency, positive impacts and resilience

People Impact Goal:

Sustainable livelihoods & poverty reduction. Human

rights protected, respected & remedied

Principle 2 - Legality, Respect for Land Rights and Community Wellbeing Principle 3 – Respect human rights, including workers’ rights and conditions

Planet Impact Goal:

Conserved, protected and enhanced ecosystems that

provide for the next generation

Principle 4 – Protect, conserve and enhance ecosystems and the environment

This RSPO ISH Standard is part of wider RSPO system. In addition to the RSPO ISH Standard, the RSPO provides information on its website specifically relevant for smallholders, including its overall strategy. To support independent smallholders to move towards sustainability and livelihood improvements, the RSPO also has tools and training materials specifically targeted to smallholders, including the RSPO Smallholder Academy. Finally, there are specific certification requirements for the RSPO ISH Standard (see Annex 3).


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The figure below presents an overview of all documents that are relevant for smallholder certification under the RSPO ISH Standard.

Figure 1: Documents relevant for the RSPO Independent Smallholder Standard

This document encompasses the RSPO ISH Standard itself, the Principles, Criteria and Indicators of the standard and group certification, as well as guidance for managing and implementing the criteria and indicators. The document is organised as follows:

Section Content Key User

Section 1 Scope: Understanding the who, what and how of the ISH Standard

All users of the Standard: Group managers, independent smallholders, NGOs, technical assistance providers, buyers of smallholder credits, certification bodies, traders, buyers and large oil palm growers, etc.

Section 2 RSPO phased approach for independent smallholders (ISH) certification and claims

All users of the Standard: Group managers, independent smallholders, NGOs, technical assistance providers, buyers of smallholder credits, certification bodies, traders, buyers and large oil palm growers, etc.

Section 3 The Normative Documents: a. Principles, Criteria and Indicators of the

Independent Smallholder Standard b. System Requirements for Group Formation and

Management

a. Group managers and independent smallholders; technical assistance providers b. Group managers

Section 4 Guidance for Group Managers on how to Implement the Independent Smallholder Standard

Group Manager

Section 5 Guidance for individual members of a group on how to implement the Independent Smallholder Standard (Tbd – not in this document)

Group managers, independent smallholders, group managers, technical assistance providers

Annex 1 Definitions All users

Annex 2 Summary of RSPO’s Simplified HCV Approach & Tool for Independent Smallholders

All users

Annex 3 Assurance Framework Independent Smallholder Standard

All users, in particular Certification Bodies


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1. Scope: Understanding the who, what and how of the RSPO Independent Smallholder Standard

This section on scope defines to whom this standard and system applies (and subsequently all others that cannot use this standard), to what it applies as well as how is applies. NOTE: Text highlighted in green indicates that this term is defined in the list of definitions in Annex 1.

1.1 Who can use the RSPO Independent Smallholder Standard This RSPO Independent Smallholder Standard is exclusively applicable to and can only be used by those smallholders that qualify as Independent Smallholders.

The RSPO Independent Smallholder Standard is applicable for sustainable palm oil production worldwide.

1.2. To what does the RSPO Independent Smallholder Standard apply Provided that the total area does not exceed the size threshold (50ha or size as defined in National Interpretation), this ISH Standard is applicable for all plots that are:

Existing plots under palm production; AND/OR Plots that are allocated for replanting or expansion; AND/OR Plots that are, or may potentially, be allocated for new plantings of oil palm

I am an independent smallholder if:

I am NOT a scheme smallholder (see definition Annex 1). The total size1 of my oil palm production areas is

o ≤ smaller or equal to 50 ha if no threshold is defined in National Interpretation; OR o ≤ smaller or equal to the maximum size defined in National Interpretations (e.g., for

Indonesia this implies threshold size is 25 ha or below and for Ecuador 75 ha or below.)

I have the enforceable decision-making power on the operation of the land and production practices; and/or

I have the freedom to choose how I utilize the land, type of crops to plant, and how I manage them (whether and how they organise, manage and finance the land).

I meet any further criteria relative to the applicability of this standard as provided in the National Interpretation in my country.


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How to define the total size of a palm production area? The total size of the oil palm production area is defined by accumulating all plots owned by a smallholder. These are existing plots as well as areas available for the expansion of new oil palm plantings, or areas allocated for new plantings, that are owned by one single smallholder - within the unit of certification (e.g. the group the smallholder is part of).

1.3 How to get certified under the RSPO Independent Smallholder Standard The Unit of Certification for the RSPO ISH Standard is comprised of a group of smallholders, the group manager and all individual members. The certificate holder is the group. The qualified independent smallholder must:

be a member of a group for independent smallholder certification.

The qualified group must: be an officially registered or legally formed entity, as defined under the national laws of the

country where the group is located. appoint a group manager that meets all requirements per Principle 1.

What is a group? Not all groups look alike:

✓ The group manager can be a representative of a mill, an organisation or an individual ✓ The group can either be legally registered as an individual or as an organisation. ✓ The group can have any number of members, including one. ✓ The total number of hectares that form part of the group has no upper limit. There is only an

upper limit per individual member. See also further guidance in Section 4, on guidance for the group manager and management requirements.

1.4 Which Standard to use if the RSPO Independent Smallholder Standard does not apply If the RSPO ISH Standard is not applicable because the requirements of Independent Smallholders or Group certification cannot be met, it is still possible to get certified under RSPO either using one of the following approaches:

a. Group Certification for FFB production – see here. b. RSPO P&C 2018: This document includes the set of principles, criteria and indicators of

the RSPO Principles and Criteria for the Production of Sustainable Palm Oil 2018 - which

defines sustainable performance of large oil palm producers, including the verification

and assurance process.

https://www.rspo.org/smallholders/smallholders-key-documents


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2. RSPO Phased Approach for Independent Smallholders Certification The RSPO Independent Smallholder Standard introduces a phased approach to enable smallholders to achieve compliance over a specified period of time, as presented in Figure 2. The approach includes three phases:

1) Eligibility (E) 2) Milestone A (MS A) 3) Milestone B (MS B, which is full compliance)

Figure 2: Phased approach for smallholder certification against the ISH Standard

The phased approach allows the smallholder to enter the system once they are part of a group and meet all Eligibility Indicators. This approach is designed to screen smallholders for the most unsustainable practices and then, for those who are eligible, allow time for continual improvement and progress towards meeting all requirements. Key requirements of this approach are:

The group needs to demonstrate progress in moving from meeting Eligibility indicators, to indicators listed under Milestone A and finally meeting the indicators of Milestone B.

Progress must occur within a set timeframe, with two years to progress from Eligibility to Milestone A. Then one more year to progress from Milestone A to Milestone B indicators.

Compliance at every milestone is measured by fulfilling all the requirements of the current milestone and all preceding milestones, e.g. to be compliant with Milestone A, the smallholder group has to demonstrate compliance to the Eligibility requirements and requirements of Milestone A.

A maximum of two years is allowed for progressing from Eligibility to Milestone A and a maximum of 1 year is allowed to progress from Milestone A to Milestone B. However, a smallholder can progress directly to Milestone B if at Eligibility they can demonstrate compliance with Milestone A and B. They can move forward and be audited for Milestones A and B at the same point of time, as assessed by Group Manager and third-party auditors. This is also applicable for any trainings (Milestone A) where the group manager assesses the smallholder already possesses the relevant capabilities.

The continual improvement process is tied to incentives detailed in the following sub-section.


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2.1 Verification, Claims and Credits The certification system includes assessment and verification at each of these three phases. Each phase has its own assurance requirements for assessing compliance, claims that the smallholder can make as well as benefits for the smallholder.

• Assurance requirements refers to level of verification at each stage.

• Claims refers to the status the smallholders can assign to the fresh fruit bunches (FFB) they produce, which is expressed as certified CPO/PKO equivalence, and can be sold as certified oil through all supply chain models, either via physical trade or as smallholder credits.

• Benefits refer to the incentives the smallholders can receive through the sales of certified FFB through the physical supply chain models (identity preserved- IP, segregated - SG, or mass balance - MB) to a mill or as RSPO credits. Buyers are able to purchase certified oil from smallholders and communicate externally about their sources. → see here for further info about RSPO credits.

Principle for converting certified FFB to certified palm oil (CSPO) Smallholders can sell their certified FFB to a certified mill through physical supply chain models or as RSPO credits equivalent. One tonne of FFB is transferred to tonnes of Certified Sustainable Crude Palm Oil (CSPO) credits using a default oil extraction rate (OER) of 20%, subject to auditor’s verification and confirmation. Hence 100 tonnes of certified sustainable FFB = 20 tonne of CSPO = 20 credits. Default Kernel Extraction Rate (KER) also exist for kernel oil or kernel expeller (see figure).

The sections below present the general assurance requirements, claims and benefits at each of the three phases, as summarised in Figure 3.

2.1.1 Eligibility - entry level Assurance Requirements

Compliance by the group with eligibility indicators is audited by an independent auditor1, that is accredited to operate under the RSPO scheme, find list here .

All individual members of the group have to meet all Eligibility Indicators Claims

Up to 50% of FFB can be sold as certified to a certified mill through the physical supply chain models (IP, SG or MB)

Up to 50% of FFB can be sold as RSPO Credits, or CSPO, CSPKO or CSPKE credits through the RSPO IT platform and trading system.

1 Groups can submit a request to the RSPO Smallholder Support Fund (RSSF) to cover the costs of the first audit of Eligibility indicators.

http://rspocredits.org/

https://www.rspo.org/certification/bodies


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Once eligibility indicators have been verified, the group may continue to claim the FFB as CSPO equivalent and sell through all supply chain models.

2.1.2 Milestone A – continual improvement and progress Assurance Requirements

Group practices are verified by an internal audit conducted by the group manager to demonstrate progress of meeting 100% of the Milestone A indicators, while also maintaining compliance with 100% of the Eligibility indicators.

An accredited independent auditor conducts a desktop verification of the internal audit conducted by the group manager.

Claims and benefits Group can demonstrate meeting Milestone A indicators within a maximum of two-years from

entry (eligibility). Up to 50% of FFB can be sold as certified to a certified mill through the physical supply chain

models (IP, SG or MB) Up to 50% of FFB can be sold as RSPO Credits CSPO, CSPKO or CSPKE credits through the RSPO

IT platform and trading system.

2.1.3 Milestone B – continual improvement and full compliance Assurance Requirements

Group is audited by an accredited independent auditor All individual members of the group have to meet the 100% of the Milestone B indicators, and

also maintain compliance with 100% of the Eligibility indicators and 100% of the Milestone A indicators.

Claims and benefits 100% FFB can be sold as certified to a certified mill through the physical supply chain models

(IP, SG or MB) 100% of FFB can be sold as RSPO Credits CSPO, CSPKO or CSPKE credits through the RSPO IT

platform and trading system.


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Figure 3: Assurance and smallholder credit claims system.


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3. Normative Requirements of the RSPO Independent Smallholder Standard This section includes the normative components of the RSPO ISH Standard that consist of:

• The Principles, Criteria and Indicators which are applicable to both individual smallholder and group managers; and

• The System Requirements for Group Formation and Management (including the Internal Control System) which is only applicable to the group manager [not to individual smallholders that are members of the group].

3.1 Principles, Criteria, Indicators The Principles, Criteria and Indicators (PCI) of the RSPO ISH Standard are comprised of 4 principles, 23 criteria and 58 indicators organised along the RSPO impact areas, Prosperity, People, and Planet: The table below consists of Principles, Criteria and Indicators. These should be considered as follows:

✓ The 4 Principles are statements about the desired outcome and serve as the overall framework ✓ Criteria are what reaching these outcomes would look like for the Group manager and

individual group members (smallholders) ✓ Indicators define what individual smallholder members, and/or the group should demonstrate

in order to comply with the criterion. The indicators are presented in three columns, reflecting the three phases toward full compliance.

• Eligibility indicators must be met to enter into the system.

• Milestone A indicators must be met to demonstrate that the group continues to make progress towards meeting full compliance.

• Milestone B must be met to reach full compliance with the RSPO ISH Standard.

• Indicators are cumulative; As such: o At Eligibility, 100% of indicators are required for compliance; o At Milestone A, 100% of eligibility indicators + 100% of Milestone A indicators required for

compliance; o At Milestone B, 100% of eligibility indicators + 100% of Milestone A indicators + 100% of

Milestone B indicators are required for compliance.

3.1.1. Further guidance to interpret the Principles, Criteria and Indicators The Principles, Criteria and Indicators of the RSPO ISH Standard should be read and used in conjunction with tools, resources as well as with the guidance provided further in this document in Sections 4 (for the Group manager)2.

3.1.2 Support for smallholders to achieve compliance The RSPO ISH Standard assumes that not all smallholders have the capacity and resources to comply with all indicators upon entry. Therefore, the standard specifically includes indicators that refer to training, generally in Milestone A. Where training is mentioned, RSPO assumes that responsibility for providing the training lies in principle with the group manager. The expectation is that this can be done 2 The final version of the document will also include Guidance for Individual group members, to be added as Section 5


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with support from mills (and further downstream buyers) as defined by Principle 5 of the RSPO P&C 2018 (generic P&C). Not all smallholders require participation in all trainings; compliance with indicators that refer to training will depend on the level of capacity and support needs of group members. Accordingly, the group manager will assess training needs of group members during entry. It is the intention of the RSPO, as aligned with the RSPO Smallholder Strategy, that further support, either in the form of technical capacity, tools, guidance, or financial support, is provided through the RSPO Smallholder Support Fund (RSSF), for example, to the group manager and its members. This includes financial resources for the first audit to assess eligibility. Moreover, to help independent smallholders meet sustainable oil palm practices, the RSPO has set up the RSPO Smallholder Academy that will provide a series of training modules for group managers and smallholders through a system of the Training the Trainer approach. The training modules that will become available through this Smallholder Academy are thus specifically tailored to trainers (which can include group managers) rather than the smallholders themselves.

3.1.3 Skipping indicators that are not applicable The Principles, Criteria and Indicators table below defines six instances where criteria or indicators may be skipped if the smallholder can demonstrate these do not apply. For example, if a smallholder does not intend to expand their plots or plant any new oil palm, certain criteria specific to new plantings do not apply and thus may be skipped. These are clearly marked in the table below. Please note that none of the Eligibility Indicators can be skipped.

3.1.4 Smallholder Declaration

Table 1 below with Principles, Criteria and Indicators includes several times a reference to a Smallholder Declaration. This refers to a short and simple, non-legally binding statement that the group manager will present to smallholders joining or forming a group. The content and intent of the document will be explained to the smallholders prior to requiring any signature and commitment to the content of the statement. The objective of the Smallholder Declaration is to 1) Ensure independent smallholders understand their commitments and what is expected from them to under certification of the RSPO ISH Standard; and 2) Communicate the benefits independent smallholders will receive by joining the RSPO system.

3.1.5 Additional considerations

Unless otherwise specified, ‘Smallholder’ refers to individual smallholders that form part of a group. For the purposes of non-conformities, there is no distinction among the indicators, e.g., no designation of critical vs. non-critical indicators.


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Table 1 - Principles, Criteria and Indicators (PCI) of the RSPO Independent Smallholder Standard

PROSPERITY Competitive, resilient, and sustainable sector. Principle 1 – Optimise productivity, efficiency, positive impacts and resilience Implement professional and transparent operations to secure sustainable livelihood improvements.

Criteria Indicators

Eligibility (E) Milestone A (MS A) Milestone B (MS B)

1.1 Smallholders form groups and have organisational capacity to comply with the RSPO ISH Standard.

1.1.E Legally formed smallholder groups have the documented evidence to include:

1. Legal formation (as per country)

2. Fair and transparent decision making and governance

3. Signed smallholder statements

4. Additional documents per requirements for Group Formation and Management.

1.1 MS A Group manager and group members have an ICS that meets all the ICS Eligibility and MS A requirements and complete training on marketing; group dynamics; and best practices for smallholder organisations.

1.1MS B Smallholder groups are operating in accordance to best management practices for groups, including:

• Fair and transparent decision making and governance; and

• Sustainable financial management

1.2 Smallholders have capacity to effectively manage their farm.

1.2.E Smallholders sign a Smallholder Declaration which commits them to:

1.2.MS A Smallholders complete training on farm business operations, monitoring and planning. The training includes training on record keeping for

1.2. MS B Smallholders are managing their farms effectively and maintain records of production and transaction data of all FFB sales.


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a. Declare all land holdings and provide the following information to the group: i. Location of all SH plots currently planted with oil palm; ii. Location of all SH plots that are not planted with palm; iii. Details on plans for replanting and/or expansion of oil palm iv. Any existing land conflict v. Ownership and land use status vii. Source of farm labour.

b. Continue to meet required milestones for progress

c. Actively participate in group and contribute to the group’s advancement toward sustainable production, including:

• No new plantings or no expansion of existing farms in primary forests, HCV areas, riparian buffer zones, on steep slopes (more than 25 degrees or as in NI)

• No new plantings on peat

• No forced labour

• No child labour

production and transactions, tracking data on size, year planted, variety and records of production, including inputs and yields.


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• Consulting with local communities on any planned new plantings

1.3 Smallholders implement good agricultural practices (GAP) on their farms.

NA 1.3.MS A Smallholders complete training on Good Agriculture Practices (GAP) and inform group manager on current yields.

1.3. MS B Smallholders have adopted GAP on their farms and are tracking productivity.

PEOPLE Sustainable livelihoods and poverty reduction. Human rights protected, respected and remedied. Principle 2 - Legality, Respect for Land Rights and Community Wellbeing Comply with the law and respect communities’ rights

Criteria Indicators


2.1 Smallholders have legal or customary rights to use the land in accordance with national practice and local laws.

2.1.E Smallholders provide information on the geo-location of their smallholder plots and ownership and use status of the land. (Reference indicators 1.2.E)

NA 2.1. MS B Smallholders provide evidence of compliance to legal or customary rights with regards to land use.

2.2 Smallholders do not restrict the legitimate land and resource rights of others, particularly, but not limited to, those of vulnerable populations such as women and indigenous peoples.

2.2.E. Smallholders provide information on any existing conflict regarding their land (Reference indicators 1.2.E).

2.2.MS A There is an absence of open conflicts with individuals or communities regarding land and resource-use and access rights; or acceptable conflict resolution processes are implemented and accepted by all parties involved.

2.2. MS B There is an absence of open conflicts with individuals or communities regarding land and resource-use and access rights; or acceptable conflict resolution processes are implemented and accepted by all parties involved.


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2.3 Smallholder plots are located outside of areas classified as national parks or protected areas, as defined by national, regional or local law or as specified in National Interpretations.

2.3.E Smallholders are not operating plots inside areas classified as national parks or protected areas as defined by national, regional or local law or as specified in National Interpretations.

NA 2.3MS B All smallholder plots are clearly and visibly demarcated and nearby buffer zones and boundaries located near group member plots maintained.

Do any smallholders within the group have plans for new plantings of oil palm? If none, SKIP 2.4 Smallholders have not acquired any land from local communities, (including but not limited to indigenous groups and women) without their free, prior and informed consent (FPIC), as expressed through their own freely-chosen representative institutions.

2.4.E For new oil palm plantings, smallholders sign a Smallholder Declaration committing to consult with local communities for new oil palm plantings, (including but not limited to indigenous people and women). (Reference 1.2.E)

Do any smallholders within the group have plans for new plantings of oil palm? If none, SKIP

2.4.MS A Smallholders complete training on how to conduct community mapping in line with the practices of the principles that follow FPIC.

Do any smallholders within the group have plans for new plantings of oil palm? If none, SKIP 2.4. MS B Based on practices that follow the principles of FPIC, smallholders jointly agree with local communities (including but not limited to indigenous people and women) on a plan to new oil palm developments if these involve land-use change.

Principle 3 – Respect human rights, including workers’ rights and conditions Safeguard human rights and protect workers’ rights, ensuring safe and decent working conditions.

This Independent Smallholder Standard is applicable to a large variety of independent smallholders in terms of geography, type, size and demographic characteristics. The use of labour on the oil palm plantations from outside the household is more common in several countries, e.g. because of the average age of the farmers who own the land or because of the average economic size of land holdings. An increased risk of not following respectful labour practices exists in smallholder farms that use workers from outside the household. Notably, these risks exist in situations where the smallholder land owner is not actively farming the land but hires others to do so.


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Therefore, the Independent Smallholder Standard has sufficient rigorous requirements on labour to prevent labour abuses and make these standards applicable to different type of farmer groups across all regions thereby increasing adoption of better labour practices at a large scale and increasing our impact significantly.

For those farmers that only use family labour within one household, this standard uses a “skip-logic” for several labour requirements: in order to skip indicators, farmers must declare their source of labour, determining which criteria are relevant to them and which can be omitted (see also paragraph 3.1.3).

Criteria Indicators


3.1 There is no use of forced labour.

3.1.E Group managers and smallholders sign a Smallholder Declaration committing to no forced, bonded, slave, compulsory labour; and no human trafficking and provide information on the source of labour on the farm. (Reference 1.2.E)

3.1.MS A Smallholders complete training on fair labour and implement and demonstrate that all work is voluntary and following practices are prohibited:

• Retention of identity documents or passports

• Payment of recruitment fees

• Involuntary overtime

• Lack of freedom of workers to resign

• Penalty for termination of employment

• Debt bondage

• Withholding of wages

• Interference with formation or operation of labour organisations or associations

3.1.MS B Workers on the farm, including the worker’s family, have access to their identity documents, the freedom of movement and can declare employment is freely chosen.

3.2 There is no use of child labour.

3.2.E Smallholders sign a Smallholder Declaration committing to no child labour including to:

3.2.MS A Group managers, smallholders and workers complete training and are aware of negative effects from child labour.

3.2. MS B Group managers and smallholders implement measures to protect children as follows: 1. There are no workers on

smallholder farms are under


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1. Comply with the minimum age of workers and as defined by local, state, or national law.

2. Not expose children to hazardous work

3. Provide adult supervision of children working on the farm

4. Ensure work on the farm does not interfere with education.

(Reference 1.2.E)

the age of 15 or under the minimum age defined by local, state or national law.

2. If young workers are employed their work is not mentally or physically harmful and does not interfere with their schooling, if applicable.

Are there workers on the farm? If no, SKIP 3.3 Workers’ pay complies with minimum legal requirements, mandatory industry standards and collective agreements as defined by the national law.

NA 3.3.MS A Workers receive payments as expected and agreed in accordance with at least the legal minimum wage rate (excluding overtime premiums) and without discrimination against vulnerable populations, including women.

3.3. MS B Workers receive payments as expected and agreed in accordance with at least the legal minimum wage rate (excluding overtime premiums) and without discrimination against vulnerable populations including against women.

Are there workers on the farm? If no, SKIP 3.4 Workers are given the right and opportunity to file a complaint to group manager or relevant third parties (e.g., RSPO, local government, etc.)

NA 3.4 MS A Smallholders complete training on workers’ rights to file complaints and communicate to workers the means to file a complaint.

3.4.MS B Workers are aware of and have access to an effective means for filing a complaint.

3.5 Working conditions and facilities are safe without risks to health and meet minimum legal requirements.

NA 3.5.MS A Smallholders, workers, and family members complete training and aware of health and safety risks associated with farm

3.5.MS B Workers, including smallholder family members, have access to safe working conditions and amenities to include:


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work, (including that of pesticide use) and how to mitigate these.

• Safe and adequate housing, where applicable.

• Health and safety training and equipment, including minimum protective equipment (PPE) if appropriate for the type of work

• Basic first aid supplies

• Adequate drinking water, and toilets

Are there workers on the farm? If no, SKIP 3.6 There is no discrimination, harassment, or abuse on the farm.

NA 3.6.MS A Smallholders complete training of work place discrimination, harassment and abuse and are aware of need for a safe workspace.

3.6. MS B Workers freely express that they are working in a safe place that is free from discrimination, harassment or abuse.

PLANET Conserved, protected and enhanced ecosystems that provide for the next generation

Preamble High Carbon Stock (HCS) This Independent Smallholder Standard is pursuing the objective of the RSPO’s Smallholder Strategy to increase smallholder inclusion, prioritise improved practices which also benefit smallholder livelihoods, whilst also upholding the core sustainability requirements. This includes the protection of HCV and HCS areas. Therefore, RSPO has developed a simplified HCV methodology for identifying, protecting and managing HCVs that provides guidance for both existing and new plantings (see here). The guidance for existing plantings is based on the precautionary principle. For new plantings the combination of HCV probability risk and size of the expansion determine which HCV procedure is required.

https://www.rspo.org/smallholders/smallholders-key-documents


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To meet criteria 4.1 and 4.2, the ISH Standard allows the use of this HCV methodology with a simplified tool, including a mobile phone application that provides guidance on the likelihood of presence of HCVs 1-3 (though HCV probability maps at country level) and the likelihood of presence of HCV 4-6 (through pre-defined questionnaires). Annex 2 provides a brief summary of how the tool works. Aligned with the new HCS requirements in the RSPO generic P&Cs 2018, the RSPO, in collaboration with the HCSA Steering Group, intends to develop a combined simplified HCV-HCS tool to identify and protect HCS areas. In the meantime, until the simplified HCV-HCS combined tool for independent smallholders is available, this Standard will apply the HCV precautionary approach to identify and protect HCS areas for new oil palm plantings. For cases identified as high risk, an ALS assessor will need to be hired and by default HCS is already included as part of the assessment. The simplified HCV approach will apply from the date of adoption of the new ISH Standard until the combined simplified HCV-HCSA approach is available and approved. The developed combined HCV-HCS approach for independent smallholders will be open to public consultation and is expected to be published by November 2020 (or RSPO GA 17). Remediation and Compensation Procedure (RaCP) Remediation and compensation are required for any clearance since November 2005 without prior HCV assessment (see criterion 4.2).

The requirements as outlined in the RaCP (2015) is not fully applicable for independent smallholders. For independent smallholders, this RSPO ISH Standard would be focusing developing an appropriate RaCP mechanism such as on-site remediation (with funding mechanisms to be determined) as this is contextually appropriate to the scale of independent smallholder production and would enable independent smallholders to maximise positive environmental impact on-site. The requirement means that quantified liability is disclosed and assessed through a land use change analysis (LUCA) supported by the RSPO Secretariat.


Protect the environment, conserve biodiversity, enhance ecosystems and ensure sustainable management of natural resources.

Criteria Indicators



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4.1 High conservation value areas (HCVs) on the smallholder plot or within the group are managed to ensure that they are maintained and/or enhanced.

NA 4.1 MS A Smallholders complete training on and aware of: - the importance of maintaining and conserving HCV areas; - human-wildlife conflict and - recognising rare, threatened and endangered species and important ecosystems

4.1 MS B Smallholders implement precautionary practices and manage and maintain rare, threatened and endangered species and HCV areas, where applicable.

4.2 Where the existing smallholder plot is on an area identified as HCV and cleared after November 2005, a remediation and compensation process appropriate for smallholders based on Land Use Change Analysis (LUCA) will be applicable. (Reference preamble)

4.2.E Smallholders sign a Smallholder Declaration committing to provide information on all smallholder plots converted and planted with palm after 2005, through use of the HCV App for Smallholders (Reference 1.2.E).

4.2.MS Group members develop a plan to identify the maximum area for on-site remediation of HCV areas lost between 2005 and November 2019, through a participatory process. The plan is submitted to the RSPO.

4.2 MS B Smallholders (or Group Manager) implement an RSPO-approved plan to remediate for HCV areas lost between 2005 and November 2019.

Do any smallholders within the group have plans for new plantings of oil palm? If none, SKIP 4.3 New plantings of independent

smallholders, since November 2019:

o Do not replace primary forest, o Do not replace any HCV area o Are not on steep slopes (more

than 25 degrees or as in NI) o Are not on peat areas of any

depth.

4.3E Smallholders sign a Smallholder Declaration committing to provide information on all plans for new plantings and commit that no new plantings are in primary forest, HCV areas, on steep slopes (more than 25 degrees or as in NI) or on peat (Reference 1.2.E).

MS A Do any smallholders within the group have plans for new plantings of oil palm? 4.3 MS A Group member develop an integrated management plan to maintain or enhance HCVs and other set-aside areas [as identified by the HCV for Smallholder App or other means] before any land preparation commences through a participatory approach.

MS B Do any smallholders within the group have plans for new plantings of oil palm? 4.3 MS B Smallholders have an approved integrated management plan for their planned new plantings and share a notice of this plan with those involved in the participatory mapping before any land preparation commences.


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Do any smallholders within the group have existing plots on peat? If no, SKIP 4.4 Where smallholder plot exists on peat, subsidence and degradation of peat soils is minimised by use of best management practices.

NA 4.4 MS A Smallholders complete training on best management practices (BMPs) for peat and group manager has an action plan to minimize risk of fire and manage water system* and apply BMPS for plantings on peat in the certification unit.

4.4 MS B Smallholders implement action plan based on best management practices for existing plantings on peat.

Do any smallholders within the group have plans for replanting plots that are located on peat? If no, SKIP 4.5 Plots on peat are replanted only on areas with low risk of flooding, saline intrusion and subsidence as demonstrated by a risk assessment.

4.5 E Smallholders sign a Smallholder Declaration committing to provide information on all plans for replanting and commit that replanting will only be in areas with low risk of flooding, saline intrusion and subsidence (Reference 1.2.E).

4.5 MS A Smallholders with plots older than 15 years on peat complete training on identification of future risks of flooding associated with subsidence and alternate land development strategies.

4.5 MS B. Prior to replanting on peat smallholders complete a risk assessment related to flooding associated with subsidence and, where there is high risk, present a plan that includes alternate land development strategies.

4.6 Fire is not used on the farm for preparing land, for pest control, nor for waste management.

4.6 E There is no physical evidence of burning for land preparation by smallholders.

4.6 MS A Smallholders complete training on and are aware of

• Alternatives to fire for land preparation and farm waste management (where possible)

• Alternatives to fire for pest control • Fire prevention, how to respond

to and manage fires in their community and village.

4.6 MS B Smallholders do not use fire or practice burning for land preparation, waste management or pest control on the farm. For pest control, fire may be used only in exceptional circumstances that is where no other effective measures exist and with prior approval of relevant government authority.


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4.7 Riparian buffer zones (as per NI) are protected and managed.

4.7.E Smallholders sign a Smallholder Declaration committing to no new plantings in riparian zones (Reference 1.2.E)

4.7.MS A Smallholders complete training on and aware of riparian buffer zone (as per NI) management.

4.7 MS B Smallholders rehabilitate, manage and maintain riparian buffer zone areas (as per NI).

4.8 Smallholders minimise and control erosion and degradation of soils.

NA 4.8 MS A Smallholders complete training on and aware of best management practices to protect marginal and fragile soils, including steep terrain.

4.8 MS B Smallholders implement best management practices for soil maintenance and protection.

4.9 Pesticides are used in ways that do not endanger health of workers, family, communities or the environment.

NA 4.9 MS A Smallholders complete training on best management practices for pesticides including pesticide usage, storage and disposal; and banned pesticides (and in alignment with 3.5).

4.9 MS B Smallholders implement best management practices for pesticide use which mandates exclusion of pesticides that are categorised as WHO Class 1A or 1B, or those listed by the Stockholm or Rotterdam Conventions, and paraquat, unless when authorized by government for pest outbreaks.

4.10 Smallholders manage pests, diseases, weeds and invasive introduced species using appropriate techniques, including but not limited to Integrated Pest Management (IPM) techniques.

NA 4.10 MS A Smallholders complete training on and aware of best management practices, including, but not limited to safe chemical use, Integrated Pest Management, weed and invasive species management.

4.10 MS B Smallholders maximize use of IPM approaches to minimize use of pesticides on their farm.


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3.2 The System Requirements for Group Formation

As referenced in the Section 3 introduction above, the RSPO Independent Smallholder Standard consists of two normative components. The table below

presents the Criteria and Indicators for Group Formation and Management. It is the responsibility of the group manager that all systems laid out in the

indicators are complied with at each phase (Eligibility, Milestone A and Milestone B).

3.2.1 Support for group managers to form a group The RSPO recognises that the formation of groups and bringing smallholders together is an essential step towards certification. At the same time this part of the process is also challenging, in particular, in cases where smallholders are not yet organised. However, in order to be able to generate benefits and claim credits as a group, some minimum requirements of group formation should be in place. These are included as Eligibility Indicators in Table 2 below. Amongst other support mechanisms, through the RSPO Smallholder Academy, the RSPO aims to provide capacity building programs which includes trainings on group formation and strengthening.

Table 2 - Criteria and Indicators for Group formation and Management (for Group manager only)

A - Group Entity and Group Management Requirements Rationale: In order to be able to have commercial relationships in the transactions of certified FFB the group carries a liability, which requires it to have a legally identity. Criteria Indicators


A1 The Group demonstrates that they are legally formed.

A1.1E The Group has evidence of legal identity. (Documented in RSPO template).

N/A A1.1MS B The Group can show documentary evidence of legal identity.

A1.2E The Group has appointed a Group Manager.

N/A N/A

A1.3E The Group has a membership requirement. (Based on the standard Smallholder Declaration model provided by RSPO)

A1.3MS A All members have signed and acknowledge membership requirements.

A1.3MS B All members can demonstrate understanding of membership requirements.


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A2.1E The Group Manager has been trained to for the preparation and implementation of the Internal Control System (ICS).

N/A A.2.1MS B The group manager ensures compliance of the ICS by individual members

A2 The Group Manager is responsible to manage the Group for certification.

A2.2E The Group Manager demonstrate basic capacity and resources in managing Group Certification and performance assessment in an effective and systematic manner.

A2.2MS A Group Manager has attended training on group certification and related topics and sufficient resources to run a group.

A2.3MS B Group Manager can demonstrate capacity to manage and run group certification and certification requirements.

A2.4E The Group Manager demonstrate competency, knowledge and understanding in relevant RSPO requirements and standards.

A2.4MA Group Manager has attended training on the Independent Smallholder Standard and other relevant RSPO requirements and standards.

A2.4MB Group Manager can demonstrate competency, knowledge and understanding of relevant RSPO requirements and standards.

A2.5E A group annual training plan (based on the RSPO template) is available covering the Smallholder Standard, group management (which includes group objectives, structure, relevant procedures and certification process) and other topics as outlined in the Smallholder Standard.

A2.5 MA Group Manager implements a phased approach to ensure members have progressively attended training on the Smallholder Standard, group management and other topics as outlined in the Smallholder Standard according to the group annual training plan.

A2.5MB Members can demonstrate understanding of the Smallholder Standard, group management and certification requirements including awareness on BMP, HCV, environmental protection, social welfare of workers and business operations.

B - Internal Control System – Policies and Management

Criteria Indicators


B3 The Group Internal Control System contains documented

B3.1E A group Internal Control System is available (as provided by RSPO template).

B3.1MS A The Internal Control System (ICS) is implemented.

B3.1MS B The Group demonstrates compliance to this Standard.


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policies and procedures for operational management.

B3.2E Basic personal information, geolocation information and signed Smallholder Declaration is available.

N/A B3.2MS B The Group Manager can provide basic personal information, farm information, production data, legal documentation and signed Smallholder Declaration for all members.

C - Integrating the Internal Control System for certification within the process of Business Planning for the Group

Criteria Indicators


C4 The Group has a Group Business Plan with participation with Group members.

C4.1E An annual Group Business Plan (based on RSPO template) is available, which includes: • Maintenance of business records and accounts • Production and income forecasting • Plans for expansion

C4.1MS A The Group Business Plan is improved to include a group management plan: • Training/capacity building plans • Any plans for individual members to expand their plantations • Strengthen links within the supply chain • Delivery of services to members • Delivery of continuous improvement projects (i.e. on waste, soil, etc.)

C4.1MS B The group demonstrates financial stability and growth, and that it is able to support itself.

C5 The ICS of the Group is integrated with the Group’s Management Plan.

N/A C5.1MS A The Internal Control System is effectively integrated with the Group Management Plan

C5.1MS B The Group Manager demonstrates the group’s compliance with this standard.


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D – The Group ICS shall include a system to enable the trading of smallholder credit equivalents produced from the Group

Criteria Indicators


D6 The Group has a procedure and system in place for the tracking and tracing of FFB.

D6.1E Recording sheets to track the production and sales of credits, covering traceability of producers and/or traders is available.

D6.1MS A Group Manager is able to identify source of all certified FFB.

D6.1MS B Group Manager maintains records of all FFB sources.

D7 The Group documents and implements a system for the tracking and tracing of FFB.

D7.1E Group Manager maintains the total production based on estimation and sales of all members based on information provided. In recording sheets as provided by RSPO

D7.1MS A Group Manager maintains the total production based on actual receipts and sales of all members based on actual data provided.

D7.1MS B Group Manager can provide details of the total production based on actual receipts and sales of all members based on actual data provided.

D8 The Group has a procedure and system for premium distribution.

D8.1E The group and group manager have agreed how the premiums should be used and this is communicated to the group members.

D8.1MS A Disbursement of premiums, including price and timing of the disbursement to group members are clearly recorded.

D8.1MS B The group member premium is paid in a timely and convenient manner. Prices, premiums, and timing of premium payment are clearly communicated and transparent to group members.


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4.Guidance for Group Managers The table below provides detailed guidance for group managers on how to comply with the PCIs of this Independent Smallholder Standard and what their responsibilities are.

PROSPERITY

Principle 1 – Optimise productivity, efficiency, positive impacts and resilience Implement professional and transparent operations to secure sustainable livelihood improvements.

Criteria Indicators Responsibilities for Group Manager

Guidance for Group Manager

Supporting guidance, tools and documents

1.1 Smallholders form groups and have organisational capacity to comply with the RSPO ISH Standard.

1.1.E Smallholder groups have the documented evidence to include:

• Legal formation (as per country)

• Fair and transparent governance

• Signed individual smallholder statements

• Additional documents per the requirements of the Internal Control System (ICS).

Legally register the group Collect signed smallholder statements for each group member

Check what national requirements for legal registration are and register the group officially according to requirements by local law Raise awareness amongst group members on the need to sign a Smallholder Statement, and ensure they clearly understand what is expected from them as group member Ensure each group member signs the Smallholder Declaration and keep records

Template Smallholder Declaration (which includes a series of specific commitments by group members) Generic guidance on group formation and Internal Control System (ICS)


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1.1 MS A Group manager and group members have an established and functional ICS and complete training on and are aware of marketing; group dynamics; and best practices for smallholder organisations.

Incorporate into Group training plans and farm management plan Facilitate delivery of training itself Provide support to group members via templates

Ensure group members are providing information on all plots they own, including those outside their group, in other districts, regions; and including those that are not currently planted;

Training manual for group manager on financial management and record keeping Templates for Standard Operating Procedures/ Smallholder Declaration

1.1MS B Smallholder groups are operating in accordance to best management practices for groups, including:

• Fair and transparent decision making; and

• Sustainable financial management

Support group members to record and report production practices and to verify these against SOPs for themselves

Ensure group members are providing information on all plots they own that are planted, even those outside their group, in other districts/regions

1.2 Smallholders have capacity to effectively

manage their farm.

1.2.E Smallholders sign a Smallholder Declaration which commits them to: d. Declare all land holdings and

provide the following information to the group: i. Location of all SH plots currently planted with palm; ii. Location of all SH plots that are not planted with palm; iii. Details on plans for replanting and/or expansion of oil palm iv. existing land conflicts

e. Continue to meet required milestones for progress

Support group members to: - Document all their FFB sales - working with RSPO and their IT system incorporating this information into a system for the tracking and tracing of FFB produced by the group members, and intend to be sold as RSPO-certified FFB

Documentation shall include; • Invoices and receipts (purchase and sale). • Information on transport (i.e. registration number/number plate). • The relevant group members’ group identification number. • Classification of the FFB sold (i.e. RSPO certified or not), FFB volume and destination. • Information of FFB price.

Template Smallholder Declaration Support by Secretariat on keeping data and records related to sales of certified FFB


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f. Actively participate in group and contribute to the group’s advancement toward sustainable production, including:

• No new plantings or no expansion of existing farms in primary forests, HCV areas, on steep slopes (more than 25 degrees or as in NI)

• No new plantings on peat

• No child labour

• Consulting with communities on any planned new plantings

Copies of all documentation and records to be retained for 5 years

1.2.MS A Smallholders complete training on farm business operations and monitoring and planning, including record keeping for production and transactions, monitoring and tracking data on size, year planted, variety and records of production, including inputs and yields.

Training materials for individual group members on good business practices including record keeping and financial literacy

1.2.MS B Smallholders are managing their farms effectively and maintain records of production and transaction data of all FFB sales.


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1.3 Smallholders implement good

agricultural practices (GAP) on their farms.

1.3.MS A Smallholders complete training on Goods Agriculture Practices (GAP).

Guidance for group members on Good Agricultural Practices (Agronomy Handbook) including videos (materials available by RSPO Smallholder Academy)

1.3. MS B Smallholders have adopted GAP on their farms and improved productivity.

Monitor and review the impact of capacity building activities, adjusting plans accordingly as priorities and objectives evolve along the pathway to certification and improvements in smallholder production and livelihoods

PEOPLE Principle 2 - Legality, Respect for Land Rights and Community Wellbeing Comply with the law and respect communities’ rights Criteria Indicators Responsibilities for Group

Manager Guidance for Group Manager


2.1 Smallholders have legal or customary rights to use the land in accordance with national practice and local laws.

2.1.E Smallholders provide information on the geo-location of their smallholder plots and status of the land.

Collect information from all smallholder group members on location and boundaries of their farm. Support smallholders interested on how to map

Use the RSPO SH/HCV app for both mapping and recording smallholder plots. Other systems for GPS mapping can also be used but results need to be provided by shapefiles

Training for group manager on use of smartphone App and how to upload data collected on a dashboard that aggregates results for all group members


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their plot boundaries. In case boundaries are already mapped, review their findings against HCV app or another source recognised by RSPO.

presenting boundaries of plots each group member. GM may train group members on use of the HCV for SH App so these can help collect data from all members of the group Data and boundaries need to be available for every single plot the group members owns, is planted with palm and is included as part of the group certification

Group manager to train group members to use smartphone App to check the location and upload shapefiles Decision tree that guides the Group manager on how to handle non-compliance situation

2.1 MS B Smallholders can provide evidence of compliance to legal or customary rights with regards to land use

Maintain a register and the maps showing extent, location and boundaries of land holdings of all group members. Register of each member and their plots should also include their rights to use the land and a photocopy of the land registration/type of land rights or use

For each group member the Group Managers should keep a record of: • Info on locations in a single file/document as per HCV for smallholder app. • Maps showing the legal boundaries • Register of land right/title including photocopy of rights or reference to cadastral register where relevant Local practice applies to demonstrate customary rights to the land, include


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reference to those local practices

2.2 Smallholders do not restrict the legitimate land and resource rights of others, particularly, but not limited to, those of vulnerable populations such as women and indigenous peoples.

2.2 E Smallholders provide information on any existing conflict regarding their land

Collect information from each group member on their knowledge of existing land conflicts

Check if individual group members provide information on land conflicts as part of their signed smallholder statement

Template Smallholder Declaration

2.2MS A There is an absence of open conflicts with individuals or communities regarding land and resource-use and access rights; or acceptable conflict resolution processes are implemented and accepted by all parties involved.

Provide guidance to group members on relevant customary and statutory law with respect to land tenure for that location. As necessary, organise participatory mapping with all group members

Become aware and consult relevant sources as needed to gain understanding of the history of any land conflicts in the respective area

Guidance Participatory mapping (included in simplified guidance and tool HCV for SH) Guidance RSPO Smallholder Academy on FPIC

2.2MS B There is an absence of open conflicts with individuals or communities regarding land and resource-use and access rights; or acceptable conflict resolution processes are implemented and accepted by all parties involved.

Maintain log/records of any conflict and resolution processes that involves any member of the group Assess compliance of group members with the terms of any agreements they enter into with local communities on land use and access rights. In case there is a conflict, refer SHs to relevant tools/resources to facilitate management and resolution of conflicts, drawing on support from

Seek written agreement, signed by all concerned parties, as a durable outcome of any negotiations to resolve conflicts over land rights. Such agreements may include measures for benefit sharing. As possible, pursue registration of such agreements with competent local authorities to enable their recognition in law, and avoid repeat occurrence of same conflict.

Template for conflict record keeping RSPO local office to share list of relevant local resources (CSOs, government agencies)


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CSOs and Govt agencies as appropriate

2.3 Smallholder plots are located outside of areas classified as national parks or protected areas, as defined by national, regional or local law or as specified in National Interpretations (NIs).

2..3E Smallholders are not operating plots inside areas classified as national parks or protected areas as defined by national, regional or local law or as specified in National Interpretations.

Review smallholder plot maps against maps/locations of protected areas/ per HCV app or per local government records

Use HCV for smallholder app to compare smallholder plot boundaries with those of as national parks and protected area If there are any group members with plots inside national parks or protected areas, visit the site to verify. If inside areas classified as protected, these plots cannot be subject of certification and should be excluded from the group

Specific protected area map at national level will be made available to the group manager as part of the App GM (currently this map is integrated into the overall HCV probability map)

2.3MS B All smallholder plots are clearly and visibly demarcated and nearby buffer zones and boundaries located near group member plots maintained.

Keep register of group members with plots near buffer zones and keep photo's/records of the areas they demarcated

For plots within the group that are located near protected or HCV areas, conduct field visits to check on demarcation of plot boundaries and buffer zones

Training on buffer and riparian zone management

2.4 Smallholders have not acquired any land from local communities, (including but not limited to indigenous groups and women) without their free, prior and informed consent (FPIC), as

2.4E For new oil palm plantings, smallholders sign a Declaration committing to consult with local communities for new oil palm plantings, (including but not limited to indigenous people and women).

Incorporate information required and process for new plantings by group members into group rules and by-laws; Ensure signing and maintain records of signed smallholder statements for group

Provide template Declaration for members to sign Where necessary, explain Smallholder Declaration to group members This signed Declaration is not legally bounding but is

Template Smallholder Declaration List of talking points for group manager to introduce the Smallholder Declaration to group members.


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expressed through their own freely-chosen representative institutions.

meant to improve SHs understanding of the importance of this commitment.

2.4.MS A Smallholders complete training on how to conduct community mapping in line with the practices of the principles that follow FPIC.

Incorporate into Group training plans and facilitate delivery of training itself

Guidance on participatory mapping techniques and FPIC (to become available through RSPO Smallholder Academy) 2.4MS B Based on practices that

follow the principles of FPIC, local communities (including but not limited to indigenous people and women) jointly agree with smallholders on a plan to new oil palm developments if these involve land-use change.

Support members and ensure they conduct participatory mapping of any rights to tenure, access and use natural resources claimed by neighbouring communities

The GM must be able to demonstrate to a third party that the FPIC process proceeded to the community’s satisfaction. Maps will be necessary but not sufficient for this purpose. All FPIC elements should be addressed, i.e.: free (=without any coercion), prior (=before any development), informed (=providing all relevant information in appropriate form & languages) consent (=right to say no). Group Managers should: ▪ Keep records of all meetings and who attended the meetings – obtain


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signatures or thumb prints. ▪ Ask permission to take photos

PEOPLE

Principle 3 - Respect workers’ rights and conditions Safeguard human rights and protect workers’ rights, ensuring safe and decent working conditions.

Criteria Indicators Responsibility for Group Manager

Guidance for Group Manager


3.1 There is no use of forced labour. (Reference forced labour definition)

3.1.E Smallholder provide information on the source of labour on the farm and commit to no forced, bonded, slave, compulsory labour; and to no human trafficking

Ensure that all members are aware of the requirements of the standard with respect to forced labour and able to interpret these in their own operations; Explain Smallholder Declaration to group members; signing and maintain records of signed smallholder statements for group

Refer to, and where needed adapt existing RSPO training to best support compliance A template for policy to commit to for group manager could be useful

RSPO SH Academy training and awareness materials on forced labour Short video to introduce the concept

3.1.MS A All work is voluntary and following practices are prohibited:

• Retention of identity documents or passports

• Payment of recruitment fees

• Contract substitution

• Involuntary overtime

• Lack of freedom of workers to resign

Ensure the support and commitment of all group members to comply with this criteria Maintain records on behalf of all members on their use of hired labour, whether; • Employed directly or through contractors /agents

The group manager may draft a single policy on use of labour by group members, encompassing all labour related criteria, and shall ensure the support and commitment of all group members to follow this policy

Labour policy template for groups members Self-assessment templates Protocols for how group manager should handle certain situations


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• Penalty for termination of employment

• Debt bondage

• Withholding of wages

• Interference with formation or operation of labour organisations or associations

• On an occasional or permanent basis These records shall include information on; • How the labour was recruited or contractor commissioned, • Basis for payment – piece rate or daily rate Log any complaints or cases of non-compliance that arise and investigate source of claim.

3.1.MS B Workers on the farm, including the worker’s family, have access to their identity documents, the freedom of movement and can declare employment is freely chosen.

3.2 There is no use of child labour.

3.2.E Smallholders commit to no child labour. Including to: 5. Comply with the minimum

age of workers and as defined by local, state, or national law.

6. Not expose children to hazardous work

7. Provide adult supervision of children working on the farm

8. Ensure work on the farm does not interfere with education.

Ensure that all members are aware of the requirements of the standard and able to interpret these in their own operations. Clarify for members the conditions under which persons under the age of 18 may undertake work on smallholder farms and ensure members have sufficient understanding of legal age requirements for that region. Ensure the support and commitment of all group members to comply with this criterion

Refer to, and where needed adapt existing RSPO training to best support compliance A template for policy to commit to for group manager could be useful

Template Smallholder Declaration Short video to introduce the concept

3.2.MS A Group managers, smallholders and workers complete training and aware of

Incorporate into Group training plans and facilitate delivery of training itself;

RSPO SH Academy training and awareness raising materials on child labour


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negative effects from child labour.

Priority for self-assessment check

3.2. MS B Group managers and smallholders implement measures to protect children as follows: 9. There are no workers on

smallholder farms are under the age of 15 or under the minimum age defined by local, state or national law.

10. If young workers are employed their work is not mentally or physically harmful and does not interfere with their schooling, if applicable.

Undertake checks on evidence that the minimum age requirements are being met Investigate promptly any reports of non-compliance with this criterion, shall take appropriate action to effect immediate remedy in any proven instances of non-compliance and shall maintain records of the same.

Children can only work under supervision and do not undertake hazardous work. Children only work on the farm during holidays, outside of school time, are family members, under supervision and only doing non-hazardous work Where local law imposes tighter restrictions on employment of persons under 18 than implied by ILO convention, compliance with local law must be ensured.

3.3 Workers’ pay complies with minimum legal requirements, mandatory industry standards and collective agreements as defined by the national law.

3.3.MS A Workers receive payments as expected and agreed in accordance with at least the legal minimum wage rate (excluding overtime premiums) and without discrimination against vulnerable populations, including women.

Ensure that all members are aware of the requirement to document payments to workers Collate and maintain records on behalf of all members on their use of hired labour, which shall include payment records and basis for payment – piece rate or daily rate

Refer members to group policy and provide training

Guidance on when a worker is considered a worker and not family labour; This because this can qualify for a Skip and will be audited

3.3 MS B Workers receive payments as expected and

Ensure that all members are aware of the requirements of the

For the purposes of checking compliance, piece

Guidance to specify a basis for converting piece rate


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agreed in accordance with at least the legal minimum wage rate (excluding overtime premiums) and without discrimination against vulnerable populations including against women.

standard in this respect and able to interpret these in their own operations

rate payments shall be converted into a daily rate equivalent

payments to daily rate equivalence Guidance on collecting the evidence and meeting the requirements be prepared by the SH academy.

3.4 Workers are given the right and opportunity to file a complaint to group manager or relevant third parties (e.g., RSPO, local government, etc.)

3.4 MS B Workers are aware of and have access to an effective means for filing a complaint.

Ensure that all members are aware of the requirements of the standard in this respect and able to interpret these in their own operations and for their workers.

The group manager may draft a single policy on use of labour by group members, encompassing all labour related criteria (see also under 3.1.MA) Such a policy shall; • Incorporate a mechanism for receiving and addressing complaints from labourers concerning their working conditions or remuneration. Both the process of the dispute and the way it was resolved shall be documented. • Require that group members ensure that workers are familiar with the possibility of a filing a complaint.

Template guidance for group level labour policy and Standard Operating Procedures Training materials RSPO Smallholder Academy

3.5 Working conditions and facilities are safe without risks to health

3.5.MS A Smallholders, workers, and family members complete training and aware of health and safety risks associated with farm

Incorporate health and safety into Group level policy and training plans

Facilitate training to ensure that all members are aware of the main risks related to working conditions on

RSPO Smallholder Academy training materials for Group manager as well as smallholders


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and meet minimum legal requirements.

work, (including that of pesticide use) and how to mitigate these.

Facilitate delivery of training itself smallholder farms and incorporate measures for ensuring the health and safety of workers employed by group members. Training shall also ensure all workers are familiar with the group level health and safety procedure and have access to basic first-aid needs;

3.5.MS B Workers, including smallholder family members, have access to safe working conditions to include:

• Safe and adequate housing, where applicable.

• Health and safety training and equipment, including minimum personal protective equipment (PPE) if appropriate for the type of work

• Basic first aid supplies

• Adequate drinking water, and toilets

Encourage group members to report accidents on their farms and record all accidents reported Review accident records periodically and support action by the group to identify and address any significant risks emerging from these reviews.

Develop list of types of work that are considered to have high health and safety risks Facilitate availability and affordability of the PPE and first aid supplies

Template for recording accidents Guidance on what includes and should be in "basic first aid supplies"

3.6 There is no discrimination, harassment, or abuse on the farm.

3.6.MS A Smallholders complete training of work place discrimination, harassment and abuse.

Incorporate awareness on discrimination, harassment, abuse into Group training plans and facilitate delivery of awareness training itself

The group manager may draft a single policy on use of labour by group members, encompassing all labour related criteria (see also under 3.1.MA)

Template for group policy on good labour practices RSPO Smallholder Academy training module/tool for group managers

3.6. MS B Workers freely express that they are working in a safe


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place that is free from discrimination, harassment or abuse.

Recognise vulnerable populations (women, indigenous people,) that may be likely targets of discrimination/harassment/abuse

Such a policy shall require that group members; • Offer equal opportunities to all their workers • Ensure all their workers are aware of this aspect of the group labour policy • Commit to prevention of sexual, and all other forms of harassment, violence and protection of reproductive rights.

PLANET


Protect the environment, conserve biodiversity, enhance ecosystems and ensure sustainable management of natural resources.

Criteria Indicators Responsibilities for Group Manager

Guidance for Group Manager Supporting guidance, tools and documents

4.1 High conservation value areas (HCVs) on the smallholder plot or within the group are managed to ensure that they are maintained and/or enhanced.

4.1 MS A Smallholders complete training on and aware of: - the importance of maintaining and conserving HCV areas; - human-wildlife conflict and - recognising rare, threatened and endangered species and important ecosystems

Lead the group through implementation of the Simplified HCV approach for independent smallholders Train and raise awareness amongst group members on principle of protection through precautionary practices for existing and low risk new plantings

The HCV for SH approach uses a specialised smartphone App with web dashboard, to collect and aggregate data on farmer group members and their plots. The approach is easier to follow with access to a smartphone or tablet, but if this is not possible, ‘offline’ paper templates can be used. For established smallholder plantations the approach consists of the following 4 phases; Phase 1 - Introduce the HCV concept and procedures to your group members Phase 2 - Visit and register all farmers in your

Group manager training on HCV (identification, management and monitoring) Tools Smartphone/ HCV Apps and dashboard to aggregate data collected


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Participate in training on use of HCV App and/or train group members on how to use it Understand basic concepts of Human Wildlife Conflict and HCVs Follow training or demonstrate knowledge on HCVs and Rear, Threatened and Endangered species (RTE)

group Phase 3 – Information collection: Field survey, Upload data to the dashboard, Download list of farmers and map from dashboard Phase 4 – Implementation of precautionary practices: Scoping & identification of focal species, Dialogue with group members to agree precautionary practices, Verification and monitoring. Ref RSPO Guidance Documents on Simplified Tool for Independent Smallholders – HCV App, for established SH plantations https://rspo.org/publications/download/a48691dcf9dd573 https://www.rspo.org/publications/download/3b95ed16efc90d2

4.1 MS B Smallholders implement precautionary practices and manage and maintain rare, threatened and endangered species and HCV areas, where applicable.

Same as 4.1MA. See Phase 4 of HCV for ISH approach; It is possible to use risk calibrated approach to conduct more regular engagement with members whose plots are close to HCVs

Template to monitor implementation (GM)

4.2 Where the existing smallholder plot is on an area identified as HCV and cleared after November 2005, a remediation and compensation process appropriate for smallholders based

4.2.E Smallholders provide information on all smallholder plots converted and planted with palm after 2005, through use of the HCV App for Smallholders.

Collect information from members on start data of their palm plantings. Verify where possible Collect and record information on each plot where there was land conversion after 2005 and aggregate that information for all members in the group.

Collect and record information on all group members on starting date of their plantings

Template to declare land clearing history

https://www.rspo.org/publications/download/3b95ed16efc90d2


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on Land Use Change Analysis (LUCA) will be applicable. (Reference preamble)

4.2.MS A plan to identify the maximum area for on-site remediation of HCV areas lost between 2005 and November 2019, is developed through a participatory process by all affected individual group members and submitted to the RSPO.

Support understanding of group members of this criterion and coordinate the participatory process, following guidance provided by RSPO Secretariat

LUCA applies to group, not individual LUCA maps Guidance on Remediation and compensation of HCV areas for independent smallholders Training on how to conduct participatory process (for group manager and smallholders)

4.2 MS B An RSPO-approved plan to remediate for HCV areas lost between 2005 and November 2019, is implemented.

Coordinate development of plan for on-site remediation with the group

As possible, on-site remediation plan should apply to a collective of individual members On-site remediation on a case by case basis.

RSPO guidance on RaCP for Smallholder (tbd) SH Group is not expected to pay for compensation. Only on-site remediation.

4.4 New plantings of independent smallholders, since November 2019:

o Do not replace primary forest,

o Do not replace any HCV area

o Are not on steep slopes

4.3E Smallholders provide information on all planned new plantings and commit that no new plantings are in primary forest, HCV areas, on steep slopes (more than 25 degrees or as in NI) or on peat.

Register and collect data on plots that group members plan to plant with palm Collect boundaries of the plot allocated for new plantings, complete questions of HCV App for each plot Apply guidance of the

For new SH planting the HCV for SH approach consists of the following 4 phases; Phase 1 - Introduce the HCV concept and procedures to your group members Phase 2 - Visit and register all farmers in your group Phase 3 – Information collection and processing: Field survey; Uploading survey information to dashboard; Reviewing data and reporting; Follow up on medium risk-level plots Phase 4 - NPP preparation and HCV

Template for Smallholder Declaration Refer to 2.1 E


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(more than 25 degrees or as in NI)

Are not on peat areas of any depth.

Simplified HCV approach and report on and record for each plot the risk level and appropriate protection and management practices, determining whether: - HCVs can be managed through implementation of precautionary practices, where risks are low, or - A full Assessor Licensing Scheme (ALS) HCV assessment must be commissioned

management Ref RSPO Guidance Documents on Simplified Tool for Independent Smallholders – HCV App, for established SH plantations https://rspo.org/publications/download/a48691dcf9dd573 https://rspo.org/publications/download/bdb07d1992be1e2

Where the HCV for SH approach indicates that new SH planting would present a high risk to HCVs the GM will need to organise a full ALS assessment for these plots. For new plantings it is anticipated that the HCV4SH approach will identify high risk due to presence of primary forests, excessive slopes or peat soils.

4.3 MS A Before any land preparation commences, where HCVs and other set-aside areas have been identified [via the HCV for Smallholder App and other processes], an integrated management plan to maintain or enhance these areas is developed through a participatory approach with all group members.

Support SH's in understanding this criterion and the development of an integrated management plan.

Where precautionary practices are deployed under HCV for SH approach, no specific 'HCV areas' are designated Only relevant in case where ALS HCV assessment has been conducted, which is likely to be rare.

Guidance and training on how to develop integrated management plan (part of the SOP)

4.3 MS B Smallholders have an approved integrated management plan for their planned

Support members in developing short and medium term new planting plans

See HCV for SH guidance See HCV for SH guidance


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new plantings and share a notice of this plan with those involved in the participatory mapping before any land preparation commences.

4.4 Where smallholder plot exists on peat, subsidence and degradation of peat soils is minimised by use of best management practices.

4.4 MS A Smallholders complete training on best management practices (BMPs) for peat and group manager has an action plan to minimize risk of fire and manage water system* and apply BMPS for plantings on peat in the certification unit.

Draft a plan and Standard Operating Procedures (SOPs) for the management of group member plantations on peat soils and ensure the support and commitment of all group members to follow the plan and SOPs

In developing a group plan the GM may refer to; - RSPO manual on best management practices (BMPs) for existing oil palm cultivation on peat - Protocol for Oil Palm Independent Smallholder for Sustainable and Responsible Management of Peat Areas - Simplified guidance for smallholders on water management systems.

Simplified guidance for smallholders on water management systems (tbd). Guidance and Training on risk of fire, water management on peat A template for fire, water and peat management and monitoring

4.4 MS B Smallholders implement action plan based on best management practices for existing plantings on peat.

Arrange training for group members as necessary, within the overall Group training plan, to enable their implementation of the group plan for peat management Monitor implementation of the peat management plan and practices on individual group member plantations and take action to remedy any deviation from the plan.

Tool - Monitoring Template (refer 4.4 MA)


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4.5 Plots on peat are replanted only on areas with low risk of flooding, saline intrusion and subsidence as demonstrated by a risk assessment.

4.5 E Smallholders sign a Smallholder Declaration committing to provide information on all plans for replanting and commit that replanting will only be in areas with low risk of flooding, saline intrusion and subsidence (Reference 1.2.E).

Ensure that all members are aware of the requirements of the replanting on peat; Explain Smallholder Declaration to group members; signing and maintain records of signed Smallholder Declarations for group



Support group members to determine when plots on peat will need to be assessed; Arrange training for group members as necessary, within overall group training plan,


Support or conduct training; support members that need to develop alternate land development strategies.

Simplified guidance for BMPS on peat (in development)

4.6 Fire is not used on the farm for preparing land, for pest control, nor

4.6 E There is no physical evidence of burning for land preparation by smallholders.

Assess eligibility following guidance regarding evidence of burning

Where possible, may use Global Forest Watch Fire Alerts to assess and monitor compliance



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for waste management.

Follow up on the ground whenever there is an alert in the proximity of any group member plots to ascertain of there has been an infraction

4.6 MS A Smallholders complete training on and are aware of •Alternatives to fire for land preparation and farm waste management (where possible) •Alternatives to fire for pest control •Fire prevention, how to respond to and manage fires in their community and village.

Ensure group members are aware of this requirement Incorporate requisite training in group training plan

Support group members: --In communicating this requirement to any workers they employ in their plantations --To identify alternative techniques for preparation of planting sites, notably for replanting on sites where pest and disease risk is high

Guidance and Training on fire for farm waste management, pest control, fire prevention and fire management Tools: SOP on fire control

4.6 MS B Smallholders do not use fire or practice burning for land preparation, waste management or pest control on the farm. For pest control, fire may be used only in exceptional circumstances that is where no other effective measures exist and with prior approval of relevant government authority

Monitor compliance and follow up (as above)

Same as above


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4.7 Riparian buffer zones (as per NI) are protected and managed.

4.7.E Smallholders commit to no new plantings in riparian zones.

Arrange training for group members and their workers as necessary, and incorporate with Group training plans


4.7.MS A Smallholders complete training on and aware of riparian buffer zone (as per NI) management.

The GM shall support members to develop a farm management plan to include; •Draft a group policy and Standard Operating Procedures (SOPs) for the protection and management of riparian buffer zones •Ensure the support and commitment of all group members to this policy and SOPs •Arrange training for group members and their workers as necessary to enable the implementation of this policy and SOPs •Monitor implementation of the SOPs and take action to remedy any non-compliance

RSPO SH Academy training module Template for SOP

4.7 MS B Smallholders rehabilitate, manage and maintain riparian buffer zone areas (as per NI).

4.8 Smallholders minimise and control erosion and

4.8 MS A Smallholders complete training on and aware of best management practices to

Arrange training for group members and their workers as necessary, and

RSPO Smallholder Academy Training module


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degradation of soils.

protect marginal and fragile soils, including steep terrain.

incorporate with group training plans

4.8 MS B Smallholders implement best management practices for soil maintenance and protection.

The GM shall; • Obtain a soil map of the area in which group members’ plantations are located and identify any fragile soils at risk within this area • Draft Standard Operating Procedures (SOPs) for the prevent erosion and degradation of soils • Ensure the support and commitment of all group members to these SOPs

For new plantings it is anticipated that the HCV for SH approach will identify high risk due to presence of excessive slopes and fragile soils. For soils in riparian buffer zones, the policy and SOPs referred to at 3.6 will apply.

Guidance HCV for smallholders

4.9 Pesticides are used in ways that do not endanger health of workers, family, communities or the environment.

4.9 MS A Smallholders complete training on best management practices for pesticides including pesticide usage, storage and disposal; and banned pesticides (and in compliance with 3.5).

Arrange training for group members and their workers as necessary, and incorporate with Group training plans, both on handling and use of pesticides and on the basic principles of IPM

Facilitate or provide training to group members on Best Management Practices

RSPO Smallholder Academy training modules

4.9.MS B Smallholders implement best management practices for pesticide use which mandates exclusion of pesticides that are

Conduct periodic check-ins to ensure group members are implementing the practices they learned during the training. Incorporate into farm

Group policy and SOPs shall maintain the following principles; • Application of an Integrated Pest Management (IPM) approach, in order to minimize any pesticide use • No prophylactic use of pesticides, except in

RSPO Smallholder Academy training modules


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categorised as WHO Class 1A or 1B, or those listed by the Stockholm or Rotterdam Conventions, and paraquat, unless when authorized by government for pest outbreaks.

management plan a policy and Standard Operating Procedures (SOPs) for the management of pests, diseases, weeds and invasive species • Ensure the support and commitment of all group members to this policy and SOPs • Maintain records on behalf of the group on all pesticides used in group member plantations, including; o Source of product o Purpose of use (i.e. weeds and pests requiring control) o Quantity used o Date of use o Method and rate of application o Method of disposal of pesticide containers • Monitor implementation of the SOPs and take action to remedy any non-compliance

specific situations • Use of pesticides only in accordance with the product label • Provision of safe, controlled storage and issue for use of pesticides • Handling and application of pesticides only by persons who have completed the necessary training • Provision and use of appropriate safety and application equipment • No use of pesticides that are categorised as World Health Organisation Class 1A or 1B, or that are listed by the Stockholm or Rotterdam Conventions, or of Paraquat except in specific situations identified in national Best Practice guidelines. The use of such pesticides shall be minimised and eliminated as part of a plan and shall only be used in exceptional circumstances • Preclude use of pesticides by pregnant or breast-feeding women • Provision for medical check-ups for any smallholders and their workers in frequent contact pesticides • Feedback from the individual farms and subsequently analyse the data to improve performance Some Groups may opt to be pesticide free. If this is the case the Group Manager should write a simple explanation stating this and the reasons

4.10 Smallholders manage pests,

4.10 MS A Smallholders complete training on and

See 4.8 MA See above 4.8.MA


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diseases, weeds and invasive introduced species using appropriate techniques, including but not limited to Integrated Pest Management (IPM) techniques.

aware of best management practices, including, but not limited to safe chemical use, Integrated Pest Management, weed and invasive species management. 4.10 MS B Smallholders maximize use of IPM approaches to minimize use of pesticides on their farm.

See 4.8 MB See above 4.8.MB


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Annex 1 – Definitions

Child Labour Child labour is work that deprives children of their childhood, their potential and their dignity, and that is harmful to physical and mental development. The term applies to:

• All children under 18 involved in the “worst forms of child labour” (as per ILO Convention No. 182)

• All children aged under 12 taking part in economic activity; and • All 12 to 14-year-olds engaged in more than light work.

The ILO defines light work as work that is not likely to be harmful to children’s health or development and not likely to be detrimental to their attendance at school or vocational training.

Those under 18 years old should not engage in hazardous work that might jeopardise their physical, mental or moral well-being, either because of its nature or the conditions under which it is carried out. For young workers above the legal minimum age but below 18, there should be restrictions on hours of work and overtime; working at dangerous heights; with dangerous machinery, equipment and tools; transport of heavy loads; exposure to hazardous substances or processes; and difficult conditions such as night work at night. Source ILO Minimum Age Convention, 1973 (No. 138).

Forced Labour

All work or service which is exacted from any person under the menace of any penalty and for which said person has not offered him or herself voluntarily. This definition consists of three elements:

1. Work or service refers to all types of work occurring in any activity, industry or

sector including in the informal economy.

2. Menace of any penalty refers to a wide range of penalties used to compel

someone to work.

3. Involuntariness: The terms “offered voluntarily” refer to the free and informed

consent of a worker to take a job and his or her freedom to leave at any time. This is not the case for example when an employer or recruiter makes false promises so that a worker takes a job he or she would not otherwise have accepted.

Sources:

ILO Forced Labour Definition

ILO, Forced Labour Convention, 1930 (No. 29)

ILO, Protocol of 2014 to the Forced Labour Convention, 1930 (P029)

ILO, Abolition of Forced Labour Convention, 1957 (No. 105)

ILO, Forced Labour Recommendation 2014 (No. 203)


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Generic P&Cs

Refers to the existing RSPO Principles and Criteria for the Production of Sustainable Palm Oil (2018) production of large growers and mills approved by the General Assembly in 2018.

Group Manager

Person, group of people or organisation responsible for running the internal control system and managing the group. This can be a mill, an organisation or an individual.

Smallholder Independent Smallholder

All smallholder farmers that are not considered to be Scheme Smallholders [see definition for Scheme Smallholders below] are considered Independent Smallholder farmers.

Scheme Smallholder

Smallholder farmers, landowners or their delegates that do not have the:

• Enforceable decision-making power on the operation of the land and production practices; and/or

• Freedom to choose how they utilise their lands, type of crops to plant, and how they manage them (whether and how they organise, manage and finance the land).

Smallholder farm

Individuals or (extended) families producing oil palm on individual or multiple smallholder plots, under the thresholds currently defined by RSPO for smallholders.

Smallholder plot

Land owned by smallholder that is planted with oil palm or allocated for oil palm expansion or replanting.

Unit of Certification for ISH Standard

The entity that signs the certification agreement and holds the RSPO certificate. This entity takes responsibility for the development and implementation of the group’s internal management system and all member farms’ management systems. The group management assures member farms’ compliance with the Standard.

Worker Men and women, migrants, transmigrants, contract workers, casual workers and employees from all levels of the organisation, on the farm and in the ICS, that are outside of the family, where family is defined as one household.

Young person

Young workers are aged 15, or above the minimum age of employment, but under the age of 18. According to the ILO, “these workers are considered ‘children’ even where they may legally perform certain jobs.”

https://rspo.org/key-documents/certification/rspo-principles-and-criteria

https://rspo.org/key-documents/certification/rspo-principles-and-criteria


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Annex 2 Summary of RSPO’s Simplified HCV Approach & Tool for Independent Smallholders

The RSPO recognises that independent smallholders face challenges in complying with the criteria to identify, maintain and enhance High Conservation Values (HCVs), see criterion 4.1 to 4.3. To help independent smallholders implement these criteria, the RSPO has developed a Simplified HCV Approach. This approach recognises that the probabilities of HCVs being present, and impacted on, differ between existing plantings (criteria 4.1 and 4.2) and new plantings of palm oil (criterion 4.3). It is based on and unifies earlier work on HCV methodologies for smallholders by the Conservation International (CI), the HCV Resource Network (HCVRN) and the SHARP Programme. In existing plantations, natural vegetation has already been cleared for oil palm. Traditional forest use has ceased, and most originally present plants and animals are no longer there. Consequently, the risk of damaging HCVs in established plantings is considered to be low. For those areas where existing plantings are based on clearings after 2005, the Remediation and Compensation procedures for independent smallholders apply (see criterion 4.2). HCVs are more likely to occur in natural habitats, so where such lands are cleared for new oil palm plantings (Criterion 4.3), risks to HCVs are higher. For new plantings, the risk of damaging HCVs depends on the:

• Probability of HCV presence: the more likely that HCVs are present, the higher the risk of

negative impacts from planting oil palm on that site. While biological HCVs (1-3) depend on

the type, size and quality of natural habitats (e.g. forest) and of species present at a site, HCVs

4-6 relate to the dependence of local communities on the site for subsistence or cultural

identity.

• Size/scale of expansion: Large scale oil palm development is likely to have more impact on

HCVs than small scale expansion – the total size of planned new oil palm is therefore also a

factor that determines risk and all new oil palm plantings that > 500ha are considered high

risk. If <500ha, then it depends on probability of HCVs being present whether it is considered

low, medium or high risk.

The combination of probability and size of the expansion determine which HCV procedure is required for new plantings. This approach also serves as the New Planting Procedures (NPP) for independent smallholders (see also figure below).


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The figure below presents an overview of proposed new plantings procedure for independent smallholders.


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Annex 3 Assurance Frameworks for the RSPO Independent Smallholder Standard

This Annex sets out a brief summary for the systems that shall be followed in the implementation of certification against the requirements of the RSPO Independent Smallholder Standard and its National Interpretations. For the purposes of the public consultation, this document is to be read in conjunction with the RSPO Certification Systems version 2017. This document is currently subject to revision and the systems that have to be followed for the Independent Smallholder Standard will be integrated into the updated version later this year. A few key considerations to be taken into account in the certification of an Independent Smallholder Group are:

● Group Entity shall be member of RSPO

● The RSPO certificate of compliance is awarded to a Group Entity.

● Traders of Fresh Fruit Bunches (FFB), who may handle FFB between the group members and

the palm oil mill, must be either:

○ Independently certified to the RSPO Supply Chain Certification Standard; or

○ Part of the Group structure with a chain of custody system under the control of the

Group manager that complies with the applicable parts of the RSPO Supply Chain

Certification Standard.

The certification system includes assessment and verification at each of these three phases. Each phase has its own assurance requirements for assessing compliance, claims that the smallholder can make as well as benefits for the smallholder as shown in the figure below. Assessment of Compliance for Independent Smallholder Standard The requirements outlined in the three stages (Eligibility, Milestone A, Milestone B) and the requirements on the Internal Control System (ICS) mentioned in the Independent Smallholder Standard are auditable at the indicator level. All non-compliances against these indicators are considered major non-compliances. The requirements at every stage are audited cumulatively. For example, an audit of an Independent Smallholder Group at Milestone A would involve auditing the group against all the indicators of the Eligibility phase and all the indicators of Milestone A. RSPO Certificate of Compliance A single certificate is awarded to the Group in the absence of major non-compliances. Group is given 90 days to resolve any major non-compliance raised during the certification or subsequent surveillance audits. If the non-compliances raised during the audits for Milestone A, or Milestone or subsequent surveillance/re-certification are not closed within 90 the days, the certificate will be suspended, and subsequently withdrawn. For example, Smallholder groups who have not successfully closed the non- compliances raised during the audit for Milestone A within the 90 days, will no longer be certified and their volumes cannot be sold as certified.


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The certificate number is shared by all Group members with each member having a unique identification code to be referred to as Unique Member Registration Number. The maximum period of validity of the RSPO P&C certificate is three years valid from Eligibility through Milestone B. The CB shall undertake a remote audit to review the self-assessment reports at Milestone A to ensure continued validity of the certificate. Upon reaching Milestone B, a single certificate is awarded to the group with the maximum validity of five years. The CB shall undertake annual surveillance audits during the certificate’s validity, and a full re-certification audit of compliance shall take place before the end of the five-year period. Inclusion of new members in the Group after certification New members can join the group at any stage and will be assessed according to their readiness to comply with the standard. For example, a group of smallholders who are already at Milestone A can have new members who are at the eligibility phase join the group. The group will be assessed together but the requirements the members will be assessed for will be according the Milestone they are complying with. Sampling for Group Assessments by CB In order to determine the representative sample of Group members for the audits at Eligibility stage and Milestone B, the CB is required to carry out a risk assessment of the members. The risk assessment shall take into account the diversity of the Group members (i.e. range of size, management structure, diversity of terrain, etc.) and any perceived risk relating to the activities being undertaken (e.g. how much replanting or expansion is occurring, how many members are new and, for subsequent assessments, whether there is a history of non-compliances). The risk and subsequent sample size will be also be informed by consultation with Stakeholders.