Comparison

of the ISPO, MSPO

and RSPO Standards
Aim management; technical guidelines for
The Indonesian Sustainable Palm Oil palm oil cultivation and processing;
Standard, Malaysian Palm Oil Standard, environmental management and
and Roundtable on Sustainable Palm Oil monitoring; responsibilities for
Standard have been developed to workers; social and community
ensure sustainability in palm oil responsibility; strengthening
cultivation and supply chains. Buyers community economic activities; and
may encounter these certifications sustainable business development. By
while sourcing sustainable palm oil. design, ISPO criteria are strongly
This document was developed by Efeca aligned with existing legal and
to outline the key differences between regulatory requirements, and for this
the standards and aid buyer decision- reason the ISPO is sometimes referred
making. to as Indonesia’s “legality standard” for
palm oil. The system relies heavily on
Indonesian Sustainable Palm Oil AMDAL – the Indonesian Environmental
(ISPO) Standard Feasibility Assessment, in its
The Indonesian Sustainable Palm Oil requirements.
(ISPO) standard, introduced in 2011 by
Because of its national reach, ISPO
the Government of Indonesia, is
offers the potential of improving the
designed to ensure that all Indonesian
entire Indonesian plantation industry.
oil palm growers, not just those
exporting to foreign markets, conform However, this will take some time. By
to higher agricultural standards. Based December 2015, 400 oil palm plantation
companies were awarded ISPO
on existing Indonesian legislation, it
certificates. Voluntary implementation
aims to improve the sustainability and
of ISPO for independent smallholder
competitiveness of the Indonesian palm
oil industry, whilst contributing to the farmers began in 2015, and the Ministry
Indonesian government’s commitments of Agriculture has set a target for
mandatory ISPO certification by 2022
to reducing greenhouse gas emissions.
for smallholders. See the ISPO website
It is mandatory for all oil palm growers
for more information.
operating in Indonesia to adhere to the
Standard, from large plantation
Malaysian Sustainable Palm
companies to smallholders, although
requirements for each vary. Large Oil (MSPO)
producers were required to comply The Malaysian Sustainable Palm Oil
with the standards by 2014, or face (MSPO) standard is a national
penalties and risk losing their license to certification standard created by the
operate. Malaysian government and developed
with input from stakeholders in the
The seven principles of the ISPO are: palm oil industry. First launched in
licensing system and plantation November 2013, it officially came into

Comparison of the ISPO, MSPO and RSPO i Efeca



implementation in January 2015 and Accreditation of Certification

aims to issue 1000 certifications by the Body (ACB) for oil palm management
end of 2016. It aligns the management system along the supply chain from
of palm oil production with many Standards Malaysia. The MSPO standard
existing national laws and regulations, will be up for review in 2018.
although unlike ISPO, it is not currently
mandatory. According to the Malaysian The standard documents are currently
Palm Oil Board (MPOB), which oversees available to purchase online. See the
it, the standard was launched in order MSPO website for more information.
to help small and mid-range cultivators,
who historically could not afford RSPO Roundtable on Sustainable Palm
certification, to operate sustainably. Oil (RSPO)
The Roundtable on Sustainable Palm Oil
The MSPO standard is split into four (RSPO) is the main certification
parts: general principles, general standard for the use of palm oil and its
principles for smallholders, general fractions in food and oleo-chemicals.
principles for palm oil plantations and Currently 20% of palm oil worldwide is
organised smallholders, and general RSPO certified. Founded in 2004, it is a
principles for palm oil mills. It follows multi-stakeholder, non-profit group that
seven principles on the themes of unites seven sectors of the palm oil
‘Management’, ‘Social Equity’, industry in regular dialogue, including
‘Environmental Protection’ and investors, growers, retailers and NGOs,
‘Economic Progress’. These include using a consensus voting system to
management and commitment develop standards and criteria on an
responsibilities; transparency; on-going basis. It uses a business-to-
compliance to legal requirements; social business model to encourage the
responsibility; health, safety and adoption of sustainable practices by
employment conditions; environment, members (particularly producers) and
natural resources, biodiversity and promotes the uptake of certified
ecosystems; best practices; and sustainable palm oil internationally.
development of new planting. While voluntary, it requires that
Traceability is based on the RSPO companies abide by national laws and
supply chain models of identity requirements.
preserved, segregated and mass balance
palm oil. The Principles and Criteria, which form
the basis of the RSPO certification
In 2015 the Malaysian and Indonesian scheme, comprise eight basic principles:
governments announced a plan to Commitment to Transparency;
merge their two national sustainability Compliance with Applicable Laws and
standards – ISPO and MSPO – to form Regulations; Commitment to Long–term
the ‘Council of Palm Oil Producing Economic and Financial Viability; Use of
Countries’ (CPOPC), with the aim of appropriate Best Practices by Growers
coordinating control of the palm oil and Millers; Environmental
market. The MPOB is also working for Responsibility and Conservation of
MSPO certification to be recognised by Natural Resources and Biodiversity;
importing countries, and to obtain Responsible Consideration of
endorsement for the MSPO Employees and of Individuals and

Comparison of the ISPO, MSPO and RSPO ii Efeca



Communities Affected by Growers and Comparison of the

Mills; Responsible Development of New Standards
Plantings; and Commitment to
While the principles and criteria are
Continuous Improvement in Key Areas
structured differently across the
of Activity. In order to claim compliance
standards, they cover a similar set of
with the P&C and achieve RSPO
general themes: legality, environmental
certification, growers must be assessed
responsibilities, social responsibilities,
by a third-party RSPO-accredited
and business practices. The ISPO and
certification body every five years, with
MSPO, which are considered by some to
an annual audit for continued
be more streamlined and practical to
compliance. The current P&C can be
implement, have far fewer criteria than
found here on the RSPO website, with a
RSPO, which in some instances requires
breakdown of the indicators and
companies to go beyond what national
guidance on how to become certified.
law dictates.


Members of the RSPO must submit
The greatest difference between RSPO
Annual Communications of Progress
and ISPO/MSPO is the inclusion of
(ACOP) reports in order to assess their
directives on business practices and
progress towards producing and
plantation management, requiring a
procuring RSPO-certified sustainable
commitment to transparency and
palm oil to any of the four supply chain
ethical conduct in business operations
models for RSPO Certified Sustainable
and transactions. The ISPO/MSPO
Palm Oil (CSPO): identity preserved,
mention this topic, but do not make it an
segregated, mass balance, and book and
explicit principle. RSPO is also far more
claim (see here for more information on
transparent in its standard
supply chain models). A crucial
development and auditing results than
component of the ACOPs are Time-
both the ISPO and the MSPO, and as it is
bound plans (TBPs), in which members
not legally binding, it is more flexible to
must state clear timelines for producing
change.
or sourcing 100% RSPO CSPO.


Main areas of difference are outlined
RSPO NEXT, which was launched in
below.
2015, is a voluntary commitment in
addition to the existing P&Cs and Environment
incorporates more stringent assessment
RSPO has the most clearly explained
standards, with guidelines regarding and strongly worded principles, criteria,
deforestation, fire, peat, human rights indicators, guidance and requirements
and landscape approaches, among other
for compliance with environmental
issues. See here for more information on
provisions. ISPO/MSPO rely heavily on
RPSO Next.
national legislation and are
comparatively liberal and undetailed.
For example, RSPO has the most
comprehensive EIA requirements, while
ISPO and MSPO’s are vague.

High Conservation Value Land

RSPO is the only standard to adopt a

Comparison of the ISPO, MSPO and RSPO iii Efeca



High Conservation Value (HCV) New Planting Cut-off Dates

approach that is clearly defined. ISPO Cut-off dates after which plantations are
requires HCV identification, but does considered “new plantings,” and for
not define identification procedures which specified criteria may apply, are
clearly. However, ISPO states that HCV handled differently by the standards.
areas cannot be cleared - RSPO requires RSPO has a cut-off date of November
that HCVs be maintained or enhanced, 2007, after which new plantings should
but minimum requirements for not replace primary forest or areas
maintaining HCVs are subjective. MSPO required to maintain HCV areas. Areas
does not mention HCV protection. cleared after this are unable to become
certified unless an RSPO-approved
RSPO also has the strongest biodiversity compensation plan is developed (in line
measures, relying heavily on the HCV with its newly released guidance for
process. ISPO appears to provide the compensation). ISPO and MSPO do not
least stringent overall protection for have cut-off dates for applicability for
biodiversity in land zoned for any criteria.
agriculture, relying on the EIA and
undefined HCV safeguards to protect Social
biodiversity. The MSPO states that High On social themes, RSPO ranks most
Biodiversity Areas must have highly. It has the most comprehensive
management plans, and that oil palm Social Impact Assessment (SIA)
should not be planted on land with high requirements, strongly emphasizing a
biodiversity value unless it is carried participatory process. ISPO relies on the
out in compliance with the national AMDAL process for SIA and does not
biodiversity legislation. provide extensive requirements for a
management system. MSPO requires a
Peatland social impact assessment and a system
RSPO encourages members to make for complaints but this is not outlined in
voluntary commitments to avoid great detail.
peatlands but does not prohibit planting
on peat. ISPO allows planting on peat
but only under specified conditions; Free, Prior and Informed Consent
peat may not be developed where >70% (FPIC)
of the concession is >3 m deep. Where The ISPO makes no explicit reference to
peatlands are developed for oil palm, applying “free, prior and informed
ISPO requires adverse impacts be consent” (FPIC) standards during a
avoided and water levels maintained at plantation land acquisition process,
specified levels; RSPO requires although there is an explanation
implementation of Best Management regarding land conflict settlement and
Practices (BMPs) for peatland compensation. MSPO mentions that
management. MPOB has developed FPIC shall be recorded, and RSPO
guidelines for best practices on provides detailed guidelines related to
peatland, as state law allows planting on FPIC.
peatland that has been gazetted for
agriculture use. Worker’s Rights
ISPO does not have a requirement for
employee/worker contracts, and only

Comparison of the ISPO, MSPO and RSPO iv Efeca



states that employees/workers must be ISPO have established

enrolled in the government’s social complaint procedures, but details of the
security program, as per applicable systems and timelines for resolution
regulations. RSPO provides detail and vary across the standards. In general,
guidance on worker rights and health grievance mechanisms appear to be
and safety. MSPO requires a policy on best defined under the RSPO system,
workers rights, in accordance with and have gone through a process of
national standards, and provides some evolution based on lessons learned over
detail on what this should entail. MSPO the past several years. RSPO provides
also requires compliance with national on-line status updates and a relatively
occupational safety and health high level of transparency throughout
legislation, but independent the complaint resolution process.
smallholders need not have a formal
health and safety plan. For independent References
smallholders with temporary workers,
it states that work conditions shall be in Adnan, Hanim (2015) Newly-
accordance with a mutual verbal implemented Malaysian Sustainable
agreement “made transparently and Palm Oil Means More Business, Jakarta
freely.” Post.

RSPO prohibits the use of forced labour, Brandi, et al. (2013) Sustainability
and MSPO refers to labour laws that Certification in the Indonesian Palm Oil
prohibit the use of forced labour. ISPO Sector, Deutsches Institut für
makes no mention of forced labour. Entwicklungspolitik.
MSPO allows child labour on family
farms, “under adult supervision, and Indonesia Palm Oil Platform (InPop)
when it does not interfere with their Newsletter (2015), UNDP.
education.” Finally, RSPO is the only
standard that specifically has a policy Indonesian Sustainable Palm Oil
aimed at protecting women in the Standard (2016)
workplace – though MSPO prohibits
sexual harassment and violence at Mahmud, Shahnaz (2014) Malaysia’s
work. Push for Sustainable Palm Oil Success,
Global Ag Investing.
Compliance
RSPO, ISPO and MSPO rely on third Malaysian Sustainable Palm Oil Standard
party accredited auditors to carry out (2016)
certification. RSPO and ISPO require
full compliance with all criteria in order Paoli at al. (2014) A Comparison of
to be certified, or an approved time- Leading Palm Oil Certification Standards
bound plan for addressing minor non- applied in Indonesia, Daemeter
compliances. MSPO requires that Consulting.
internal audit procedures and results
are documented and evaluated, in order Roundtable on Sustainable Palm Oil
to implement necessary corrective (2016) Impacts
action through continuous
improvement action plans. RSPO and

Comparison of the ISPO, MSPO and RSPO v Efeca



Sustainable Palm Oil Transparency

Toolkit (SPOTT) (2016) Standards and
Certification, ZSL.

Winarni et al. (2014) Beyond EU, RSPO
and ISPO Sustainability Requirements,
Perkumpulan Transformasi untuk
Keadilan Indonesia.

For further information

T: +44 (0) 1305 261050
E: info@efeca.com
W: www.efeca.com

Comparison of the ISPO, MSPO and RSPO vi Efeca