Wilmar International Limited and the Malaysian Palm Oil Certification Council (MPOCC) are joining hands to assist all of Wilmar’s suppliers in Malaysia to obtain the Malaysian Sustainable Palm Oil (MSPO) certification by the end of 2019. 

Over 260 million suppliers covering more than 55 per cent of the entirety of mills in Malaysia are expected to benefit from this partnership.

With underlying mutual sustainability interests, three areas of collaboration have been identified to generate the biggest impact within the two-year timeframe. 

They are conceptualized to engage, share knowledge and lend support to the suppliers in preparing them for MSPO certification.

The first identified area of collaboration is the supplier reporting tool which is developed by Wilmar, this tool enables suppliers to measure their performance against the MSPO requirements and with Wilmar’s No Deforestation, No Peat, No Exploitation (NDPE) Policy. 

Wilmar and MPOCC, on the other hand, will be able to identify gaps and deploy resources such as audit assistance more effectively. 

The tool is expected to be rolled out towards the end of March to suppliers of Wilmar’s PGEO refinery in Johor Bahru.

It will be extended to all of Wilmar’s suppliers in Malaysia by the end of the year.

The second identified area of collaboration is the group certification for small and medium suppliers in Sabah which applies to the several small and medium growers in the Sapi region who are facing challenges in meeting the MSPO requirements that are identified by Wilmar.

These suppliers will be linked to specific mills and will have access to training and assistance for group certification under the MSPO Certification Scheme.

The final identified area of collaboration is the sustainable best practices training for suppliers in Sarawak whereby a roadshow is planned in collaboration with MPOCC to assist on capacity building for suppliers in Sarawak to adopt sustainable practices including good agriculture practices which forms part of MSPO requirements.

“We have always believed that working together with the different actors across the supply chain is crucial in transforming the palm oil industry. 

“With MPOCC, our collective effort will hopefully pave the way forward for a sustainable palm oil industry in Malaysia that includes smallholders benefiting from higher productivity, yields and income. 

“We also see this as a step towards higher compliance and fulfilling Wilmar’s commercial policies as well as meeting demands from consumers globally for certified sustainable palm oil,” said  Wilmar chief sustainability officer Jeremy Goon.

MPOCC, he said,  welcomes the initiative by Wilmar towards promoting and sourcing from MSPO certified entities in the supply chain.

Its chairman, Datuk M. Nagarajan said the initiative by Wilmar will also encourage other major plantation companies to extend their cooperation by bringing on board their suppliers towards meeting mandatory MSPO certification by the end of next year.

“We believe this will further enhance the positive image of certified sustainable palm oil from Malaysia to the global markets,” he concluded.

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