25 - Sustainable Development of Palm Oil Industry

Abstract

The United Nations Conference on Environment and Development (UNCED) or the Earth Summit in Rio de Janeiro in 1992 laid the foundation for a global shift toward sustainable development. The past decade has seen an ongoing debate over the sustainability of the palm oil industry. While palm oil has been a key driver for economic development in the tropics, through creation of rural employment and reduction of poverty, the rapid growth of the industry to meet increasing demand for palm oil, for both food and non-food uses, has met with criticisms over practices deemed unsustainable and detrimental to nature and local/indigenous communities. This chapter discusses the significant sustainability issues confronting the sector and how the entire supply chain is addressing the problem through the establishment of a multi-stakeholder platform, the Roundtable on Sustainable Palm Oil (RSPO), to promote the production and use of sustainable palm oil. While sustainable production is critical, it must also make economic sense to the producers; therefore, the business case for supporting sustainable palm oil is also discussed in the chapter, using case studies of the companies who pioneered the production of certified sustainable palm oil.