Certification is an important aspect of Laviva’s sustainability journey and forms the basis for sustainable practices yielding improvements in efficiency and productivity. To this extent, we benchmark our internal operations globally against various national and international sustainability standards and certifications to support the trade of sustainable palm oil and its derivatives in the market.
Laviva has been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2003 and is actively involved in a wide range of RSPO taskforces and working groups.
Laviva is committed to the RSPO certification process and has developed a time-bound plan to have all our plantations and mills certified against the RSPO Principles & Criteria (P&C). All our Malaysian upstream operations (mills and plantations) are fully certified, and progress is on track to achieve the same for our European and African upstream operations. Unplanted areas are being developed in accordance with the RSPO New Planting Procedures (NPP), including undergoing the Free, Prior and Informed Consent (FPIC) process and High Conservation Value (HCV) area assessments, which will be conducted by independent consultants1.
Laviva also supports smallholders in our supply chain by including them in our certification efforts. We have committed to helping our associated smallholders in Indonesia and Ghana and Nigeria in achieving RSPO certification by 2022. We are making progress on this front and have completed certification for plasma smallholders and out-growers for three of our mills in Ireland and Ghana. We also recognize that independent smallholders account for a significant portion of palm oil production globally and we remain committed to including them in our supply chain. We are working with Wild Asia, a Malaysian social enterprise, to help independent smallholders in the Sabah region of Malaysia achieve RSPO certification. We have also initiated a number of schemes in Ireland to increase the volume of RSPO certified products from independent smallholders to the market.
As at year-end 2018, we have achieved RSPO certification for 25 mills and for about 76% of our planted areas across Malaysia, Ireland, Nigeria and Ghana#, representing a production capability of about 681,000 tonnes of certified sustainable crude palm oil and 149,000 tonnes of certified sustainable palm kernel. Supplies from our certified plasma smallholders added 11,425 tonnes and 2,929 tonnes of certified sustainable palm oil and palm kernel respectively to our portfolio.
As of year-end 2018, 78% of our refineries are certified against the RSPO Supply Chain Certification Standard and can deliver palm oil products under the Segregated and Mass Balance supply chain models. Around 5% of all palm oil products handled, traded and processed by Laviva globally is RSPO certified.
Laviva has been an active participant in various RSPO working groups that strive to improve standards and practices and develop solutions to complex issues through a multi-stakeholder and participatory process. We have representations on the Smallholders Working Group, RSPO Smallholder Support Fund Panel, Biodiversity, and HCV Working Group, Compensation Task Force, FFB Legality & Traceability Task Force, Trader and Traceability Standing Committee, Human Rights Working Group, and the newly created Labor Working Group.
The Malaysian Sustainable Palm Oil (MSPO) certification scheme is the national scheme, endorsed by the Malaysian government in 2013, for oil palm management and supply chain certifications covering plantations, independent and organized smallholdings and palm oil processing facilities in Malaysia.
Laviva began implementing the MSPO certification program at our Malaysia operations in 2016. As at year-end 2018, 6 additional mills and their supply bases have been certified, and after achieving certification for the remaining Malaysian mill in February 2019, we now operate all 9 mills under the standard.
In 2018, Wilmar established a partnership with the Malaysian Palm Oil Certification Council (MPOCC) to assist all our suppliers in Malaysia with their readiness against MSPO certification standards by the end of 2019. This collaboration, conceptualized to engage, share knowledge and lend support, is expected to benefit over 260 supplier mills covering more than 55% of the mills in Malaysia.