Certified Palm Oil Research Articles

Are consumers still barking up the wrong (palm) tree? Insights into perceptions towards palm oil-related labels and claims

Labels and claims representing inherent health- or environment-related attributes contribute to shaping consumer product preferences and perceptions. Palm oil-related labels and claims foster assumptions about individual, social and planetary health. Although consumers in palm oil-importing countries view this commodity with scepticism, a consumer-endorsed trend towards its elimination may cause unintended shifts in environmental impacts. Instead of eliminating palm oil from industries, scientists often acknowledge the benefits of sustainably produced palm oil as a better alternative. A research gap exists to better explain consumer acceptance or rejection of products containing palm oil. To understand how palm oil-related labels and claims influence the perceived sustainability and healthiness of products, an online study was conducted with German consumers (n = 411). Predictors influencing sustainability perceptions were integrated into a Structural Equation Model to explore how these leverage positive or negative perspectives towards the absence of palm oil or the presence of certified sustainable palm oil. This study reveals that products containing no palm oil are perceived to be healthier and more sustainable. We find that sentiments towards palm oil do not necessarily follow traditional trajectories, but are underpinned by disjoint relationships and previously established judgments. Label heuristics are more influential in shaping these perceptions, making them prone to misinterpretation. A proliferation of ‘free from’ claims haloed with sustainability assumptions compromises the progress achieved within the certified sector. This calls for more sensitivity towards products containing certified palm oil, so that assumptions align with reality and consumer perceptions are not barking up the wrong tree.

Trade Competitiveness and Sustainability Policies of Malaysian Palm Oil in the European Union: Strategic Responses by Stakeholders Agencies

The Malaysian palm oil industry is a significant contributor towards national development and economic growth. However, the industry has been facing rising tension to ensure sustainable development, as global demand for palm oil continue to grow in the coming years. The necessity for producing and trading sustainably produced palm oil is amplified with the European Union’s stringent requirement for importing responsibly sourced commodities into its market, with the aim to achieve climateneutral by 2050. The palm oil industry is also inundated with anti-palm oil campaigns and agendas, which emphasize allegations of unsustainable agricultural practices as large-scale plantations damage the natural ecosystem in producing countries. Collectively, these challenges could pose a formidable impact on the trade of palm oil between Malaysia and the European Union. Therefore, the article seeks to examine the strategic responses undertaken by Malaysian stakeholder agencies to address the regulations pertaining to sustainable production of palm oil. Using a qualitative approach, a total of ten sessions of in-depth interviews were held with expert informants in stakeholder agencies, both in Malaysia and the European Union. Among the key findings were the formulation and implementation of the National Agricommodity Policy, deployment of various missions to the European Union, implementation of Malaysian Sustainable Palm Oil (MSPO) certification as the national sustainability scheme, dissemination of accurate information on sustainable and certified palm oil, and continuous engagement through bilateral and multilateral platforms. Based on the findings, this study suggests that inclusive and transparent engagement must be conducted continuously. Constantly held dialogue sessions will help to promote better understanding and fruitful collaboration among stakeholder agencies in Malaysia and the European Union to balance environmental concerns with trade interests.

Enhancing Sustainable Palm Oil Production in West Kalimantan: Paradiplomacy and Solidaridad's Role in Achieving Environmental Goals

The global palm oil industry, particularly in West Kalimantan, Indonesia, faces significant environmental scrutiny, with deforestation for oil palm plantations adversely impacting its reputation. This challenge is compounded by the European Union's regulations against products causing environmental harm, pressuring regional governments to safeguard the sustainability of local agriculture. This study examines the West Kalimantan government's collaboration with Solidaridad Indonesia, a renowned educational and cooperative agency, in transforming the local palm oil industry towards sustainability. Employing a qualitative methodology with a focus on secondary data, the research explores West Kalimantan's paradiplomatic initiatives in the global market through its partnership with Solidaridad. This collaboration is analyzed through the lenses of paradiplomacy and sustainable development goals (SDGs). The findings reveal that West Kalimantan's paradiplomacy has significantly enhanced the image of its palm oil commodities. Key strategies include educational programs for local farmers, promotion of certified palm oil standards, and alignment with SDGs. The study highlights the success of this collaborative approach in meeting the aspirations of West Kalimantan's government towards sustainable development, offering a model for other regions facing similar environmental challenges in the palm oil sector.

The Effect of Sustainability Certification Towards Firms’ Profitability: The Case of Malaysian Shariah Compliant Palm Oil Companies

In Islam, the preservation of environment is one of the fundamental in maqasid al-shariah (objectives of shariah). As world’s leading hub of Islamic finance and the second largest palm oil producer, a positive respond on environment preservation had been given by Malaysia towards sustainable palm oil industry. Moreover, almost 70% of Malaysian palm oil companies are complied with shariah. It is necessary to the shariah compliant companies to put into consideration regarding environment sustainability in their main objective of the firms. Therefore, Malaysia urges these companies to adopts Roundtable on Sustainable Palm Oil (RSPO) and Malaysian Sustainable Palm Oil (MSPO) certifications which ensure sustainable operation and production of certified palm oil. However, these companies have concern on profitability over sustainability due to additional cost to subscribe the certification. Therefore, this study is conducted to identify the effect of the sustainability certification on the profitability of 29 shariah-compliant palm oil companies listed in Bursa Malaysia from 2013 to 2017. It is important to provide evidence on certified companies’ profitability to encourage more adoption of sustainability certification, promote sustainable practices and increase production certified palm oil among shariah compliant companies. The results of generalized least squares (GLS) regression show that certified companies enjoy profits that are 2.3% higher than those of non-certified companies. These findings support the sustainability policy in palm oil industry by the Malaysian through MSPO certification which became mandatory in late 2019.

Sustainability Practices and Financial Profitability: The Case of the World’s Top 20 Crude Palm Oil Producers

Sustainability certifications have been introduced for the palm oil industry to ensure its sustainable operation and the production of highly demanded palm oil. At present, there are several sustainability certifications in the market, namely the Roundtable on Sustainable Palm Oil (RSPO), the Malaysian Sustainable Palm Oil (MSPO), and the Indonesian Sustainable Palm Oil (ISPO) certifications. As the crude palm oil (CPO) becomes the largest product been produced and exported in the palm oil industry, it is assumed that the major CPO producers would adhere to the call for sustainability practices by producing certified palm oil. However, the additional cost of acquiring sustainability certification might hinder them from doing so. Besides, it is unclear on the effect of these certifications on firm profitability since there are very few studies have provided quantitative evidence empirical research focuses specifically on the sustainability certification in palm oil industry context. Thus, this intends to fill this gap by examining the effect of local, that is, MSPO or ISPO and international, that is, RSPO certifications on the financial profitability of the world’s top 20 CPO producers which comprises of the leading global palm oil companies based in Malaysia and Indonesia for the period of 2013 to 2018. General Least Regression is employed due to the problems of non-normality of data, heteroscedasticity, and autocorrelation. The main variable under investigation in this study is RSPO, MSPO, and ISPO, proxied by dummy variable. The results showed no significant difference in profitability of locally certified and non-certified CPO producers. Meanwhile, CPO producers with international certification, that is, RSPO recorded reduced profitability of 5% compared to locally certified producers. Hence, the adverse effect of sustainability certifications calls for intervention from both Malaysian and Indonesian governments as well as palm oil authorities in the respective countries, for example, introduction of tax incentives and/or subsidies to compensate for the reduced profitability and the cost of certification.

The Challenge of Implementing Corporate Social Responsibility in Sustainability Certified Palm Oil Mills (Case Study PT X and PT Y)

CSR is the company's responsibility for the impact of its activities and decisions on society and the environment. Implementation of CSR guided by the principles of ISO 26000 can optimize CSR efforts in the company. CSR has an important role in improving people's welfare and reducing environmental impact, but the implementation of CSR is still not optimal. This shows that palm oil mills need to make improvement efforts so that CSR implementation becomes more optimal, the research aims to determine the challenges in implementing CSR programs and provide recommendations to overcome dominant challenges. This research used delphi methods to assess the relevance of challenge and TOPSIS methods for prioritize the challenge. The first step in formulating improvement efforts is identifying the challenging factors in CSR implementation. The Delphi method aims to assess the relevance of challenges; the Delphi results show one additional challenge: "The emergence of the latest laws and regulations that cause significant changes to existing operations". Sixteen challenges become input in the TOPSIS method. The TOPSIS calculation results show three main challenges in this study. These three challenges include (1) Factor A5, "Company coordination with stakeholders (government, local communities, society, NGOs) is not good” 0.659984), (2) Factor E5 "The company's regulatory structure is complex in supporting the implementation of CSR programs" (0.596638), and (3) Factor D2 "Lack of certainty of economic benefits from technology investment initiatives that support CSR programs" (0.586047). This research showed that coordination between stakeholders is the most challenging factor when a company implements CSR programs. A recommendation in line with ISO 26000 is implementing a stakeholder engagement strategy through discussion forums. Regular communication forums will strengthen collaboration between stakeholders and will facilitate the society or local community in voicing the need for the program to be funded by the company.

Exploring Farmers' Decision in Utilizing Certified Palm Oil Seeds in Riau Province

Exploring Farmers' Decision in Utilizing Certified Palm Oil Seeds in Riau Province

Complexities of sustainable palm oil production by smallholders in sub‐Saharan Africa

AbstractSub‐Saharan Africa is increasingly viewed as an important area for oil palm cultivation and expansion. Palm oil is a commodity that can help developing countries like Cameroon attain their sustainable development goals (SDGs) targets through poverty alleviation (SDG 1) and by providing revenue to smallholder farmers to buy a variety of food thereby reducing hunger. However, due to the many negative environmental and social consequences, the sector needs to be made more sustainable. In this study, we set out to unpack the complexities including costs and benefits for smallholder farmers to practice sustainable palm oil production. We use both gray and peer‐reviewed literature, conversational interviews with smallholder farmers and managers of certified palm oil mills, and a workshop with smallholders in Cameroon. We found that smallholders face several challenges including weak land tenure rights, the use of poor‐quality seeds and low‐yielding oil palms, and a lack of skills, expertise, and access to financing. Certification could help alleviate some of the challenges by providing access to financing, training to improve yields, access to better seedlings, and increased access to higher value markets. However, the certification cost is very high compared to the income from oil palm cultivation for most farmers. Farmers will therefore need considerable assistance from organizations and brokers to remain financially viable. Our study provides important insights to countries such as the EU, United Kingdom, and United States that are in the process of adopting legislation to regulate deforestation associated with imports of key commodities such as palm oil.

Can consumers understand that there is more to palm oil than deforestation?

Environmental factors, such as climate change, with an array of social conflicts from labour conditions to land rights continue to refocus the spotlight on palm oil. Often depicted alongside deforestation, habitat destruction and biodiversity loss, palm oil tends to be viewed critically, especially by societies in palm oil importing countries. Oil palm cultivation, when poorly managed, can have severe ecological effects. However, the fact that it is the highest yielding vegetable oil complicates discussions around palm oil. Even if all palm oil was replaced with the second highest yielding vegetable oil, soybean oil, a six-fold amount of land would be required to make ends meet. Aspects such as these are not often at the forefront of consumers' minds. Using an online survey, this paper explores what German consumers (n = 1220) associate with palm oil and what they know about the geography of its production. Building on this, we investigate how society deals with the concept of indirect land use change and the role that information can play in encouraging a move away from a binary (good/bad) opinion of palm oil, and instead towards one that considers both the indirect effects related to oil palm cultivation and the feasibility of alternatives. Results show that while the effect size for different variables varies, the provision of information can especially influence how individuals understand issues of indirect land use change. However, when comparing the perceived sustainability of certified palm oil to other vegetable oils, it does not fare much better. Hence, while information can be useful to raise awareness about specific aspects, it alone is generally insufficient to encourage deeper thinking related to the complexity of different sustainability dimensions compared to more readily understandable aspects such as biodiversity loss. These findings are salient as they highlight the risk that perceptions of vegetable oil sustainability may not be in keeping with actual environmental sustainability, whereby alternatives are more glorified than their reality. This is especially important when considering which vegetable oil is capable of continuing to supply our increasing demands while doing so in the most environmentally- and socially benign way possible.

Factors Influencing the Malaysian Sustainable Palm Oil (MSPO) Certification Process During the Certification Phase for Independent Smallholders

The MSPO certification scheme was adopted nationwide and made mandatory for all smallholders, plantations, and mills starting January 1, 2020. In Malaysia, an independent smallholder is defined as an individual who owns land less than 40.46 hectares in aggregate, and they account for 17% of the total oil palm planted area. However, the long duration required to obtain MSPO certification for independent smallholders affects their eligibility to supply their fresh fruit bunches (FFB) to certified palm oil mills for export. The study showed that during the certification phase for independent smallholders, the preparation of the Stage 2 audit plan and stakeholders’ consultation required the longest time to be completed in 52 days, followed by drafting of the final audit report with 29 days and preparation of the Stage 1 audit plan with 25 days. Meanwhile, the issuance of the MSPO certificate required the shortest time to be completed in one day. Therefore, it is only proper that Malaysia, as one of the leading palm oil producers, has a comprehensive certification scheme that is locally adaptable and meets the sustainability requirements internationally, following the principles of sustainability upon which the MSPO standard was built.

The Impact of The European Union’s Environmental Policy towards Competitiveness in Malaysia’s Palm Oil Industry

Palm oil can’t be isolated from the environment and sustainability issues. The consumption of edible palm oil has decreased in recent years due to increased environmental problems. Unfortunately, palm oil has also been portrayed negatively by some groups who claim that palm oil production would cause higher global GHG emissions than conventional fossil fuels due to the conversion of forests and peatlands. The European Union has aimed to increase its use of renewable energy from biofuels, with one of the potential feedstock being palm oil. However, European countries appear to have the most stringent requirement on certified palm oil despite such pros. The growing environmental and sustainability concerns of oil palm farming may adversely affect palm oil’s import demand and hence the Malaysian economy. Therefore, the objective of this study is to investigate the effect of environmental policy on Malaysia’s competitiveness in palm oil products. The relative trade advantage (RTA) index is used to measure the competitiveness index, and the dynamic generalized method of moment (DGMM) is employed in the study. The data used for this study spans from 2009 to 2016. The results indicate that environmental regulations in the EU positively impact palm oil industry competitiveness, which is technically consistent with the Porter Hypothesis, which argues that more stringent environmental regulations can trigger innovation that may offset the costs of complying among the producers. The progress of palm oil downstream is crucial to improving the overall competitiveness of the palm oil industry and the national economy. As per the findings of this study, the Malaysian government should implement appropriate environmental intervention models to meet international standards. Environmental protection, in general, necessitates significant capital expenditure and long-term investment decisions to fund innovation, which may offset the costs of regulatory compliance and eventually improve trade competitiveness, particularly in the downstream industry.

Life cycle assessment and life cycle costing analysis for uncertified and Malaysia sustainable palm oil - MSPO-certified independent smallholders

The Malaysian Sustainable Palm Oil (MSPO) Scheme was established by the government of Malaysia to mandate MSPO certification on all palm oil stakeholders within the country by year 2019 as an initiative for sustainable palm oil production. However, independent smallholders (ISH) who account for 16.71% of the total palm oil plantation area in Malaysia have shown a low MSPO registration rate of 24.82% by midyear 2020. Therefore, it is vital to encourage MSPO certification and incorporation of sustainable production practices in ISHs in order to maintain the supply of certified palm oil. The current study has compared the environmental life cycle assessment (LCA) and life cycle costing (LCC) on the uncertified and MSPO-certified fresh fruit bunches (FFB) production among independent smallholders to determine the impacts of MSPO implementation. Based on the LCA findings using ReCiPe 2016 Endpoint (H), a net decline in environmental impacts will result when independent smallholders adopt MSPO certification. With at least 10.116% decrease in all impact categories except the Mineral Resource Scarcity category (18.065% increase), the endpoint results indicate that MSPO implementation in independent smallholders can overall reduce the environmental impacts from Human Health (99.913%), Ecosystem Quality (99.958%), and Resources (90.223%) categories. The study also finds out that certified ISH systems can further improve by replacing mineral fertilizers with organic fertilizers. In terms of LCC, the net present value in MSPO-certified ISHs (127,092.56 USD) for a 3.94 ha plantation and 25-year life cycle was found to be approximately 39% higher than uncertified ISHs (91,017.84 USD), indicating an increased economic profitability in an ISH system when MSPO is implemented.

Industry-driven mitigation measures can reduce GHG emissions of palm oil

Tropical peatland stores a large amount of carbon. In the last 20 years, drainage of Asian peat soil has increased to satisfy the demand of land for plantation agricultures. Industrial oil palm plantations occupy large areas of peatland in Indonesia and Malaysia, with associated GHG emissions and biodiversity loss, here referred to as nature occupation impact. This study performs a detailed Life Cycle Assessment (LCA) of 1 kg of palm oil for two case studies: PT SMART's Hanau and Sungai Rungau facilities in Central Kalimantan, Indonesia. The objective is to quantify the reduction in GHG emissions and nature occupation that has been achieved by implementing the following industry-driven measures: reducing the area of cultivated peat soil, reducing the peat drainage depth, and setting aside part of the land-bank for nature conservation. The results show that 1 kg of palm oil causes 2.72 and 2.25 kg CO 2 -eq./kg palm oil from Hanau and Sungai Rungau facilities respectively. These are 20%–34% lower than average RSPO certified palm oil and 49%–58% lower than average non-certified palm oil. Sungai Rungau achieves the reduction mainly due to a completely peat soil-free supply base. Hanau's peat emissions are instead 0.28 kg, compared to the 0.77 and 2.36 kg CO 2 -eq for RSPO certified and non-certified palm oil respectively, due to a very low drainage depth (18–25 cm compared to 57–73 cm in average of RSPO certified and non-certified respectively) and an overall lower share of oil palms on peat land. The impact on nature occupation is 24%–43% lower in Hanau and Sungai Rungau compared to non-certified oil and 4%–29% lower compared to RPSO certified respectively. About 8% of the total land bank of the Hanau supply-base has been set aside for nature conservation, reducing GHG emissions by 2% and nature occupation by 9%. Both Hanau and Sungai Rungau could also significantly reduce GHG emissions in the palm oil milling stage, by implementing biogas capture in palm oil mill effluent (POME) treatment. • Avoiding the cultivation of peat soil reduces the GHG emissions of palm oil production. • When oil palms are on peat soil, reducing the peat drainage depth reduces the GHG emissions. • Nature conservation initiatives reduce GHG emissions and nature occupation of palm oil production. • Capturing the biogas produced in palm oil mill effluents (POME) treatment reduces GHG emissions. • Using the captured biogas in boiler or biogas engine further abates the GHG emissions of palm oil.

The role of information in consumer preferences for sustainable certified palm oil products in Germany.

Food products are often subject to information asymmetries, which are commonly supposed to be reduced by labels and certifications. However, as the number of labels increases, consumers tend to get confused, bored or impatient and stop using them to make product choices. This study uses data from a discrete choice experiment, conducted in Germany, to analyze consumers’ preferences and willingness-to-pay (WTP) for sustainability indicators on products that contain palm oil as an ingredient. Since information is crucial to the assessment and awareness of, or attendance to, labels on consumer products, this study assesses the effect of factual information on preferences as well as attribute-processing strategies. We use a hybrid latent variable model that allows us to jointly examine the response to the stated choice component and the responses to attribute processing questions, thus capturing attribute non-attendance (ANA) to specific labels while controlling for heterogenous preferences. Our results reveal that the attribute ‘organic’ receives the highest monetary valuation in the overall sample as well as in the information intervention, and the no-information intervention groups. The results also show that providing additional information tends to change consumers’ non-attendance patterns as well as WTP values. In particular, the information intervention tends to increase consumers’ WTP and decreases their ANA for sustainability-indicating attributes. The findings suggest that the attribute ‘organic’ has the potential to be ranked highest across the entire latent variable structure, making it the most promising attribute for promoting sustainable palm oil use across consumer groups.

Marketing Mix Strategy of Certified Palm Oil Seedling in Bungo Regency

The study aims to analyze the marketing mix strategy of certified palm oil seedlings. The method used was descriptive qualitative by describing and interpreting marketing strategy using marketing mix concept. Formulating a certified palm oil seed marketing strategy based on an assessment of the role of variables in the marketing mix implemented. The product strategy was expected to maintain the quality of certified palm oil seedlings. In the pricing strategy was to increase the price compliance with the quality of certified palm oil seedlings and apply discounts for consumers, especially small farmers. For the distribution line mix strategy should be able to shorten the distribution channel of certified palm oil seedlings and supervise the distribution process to the hand of farmers. Then, implementing a promotional mix strategy with more publicized promotional activities and expanding the dissemination of information on certified palm oil seedlings.

The issue in Indonesian palm oil stock decision making: Sustainable and risk criteria

The palm oil industry has a strategic role in economic development in Indonesia, especially in alleviating poverty and creating other businesses that can support the industry. Operational activities in the palm oil industry are closely related to environmental issues (deforestation, land-use change, and air pollution) and social conflict. The certification program is an effort for the palm oil industry to implement sustainable development. The certified palm oil industry will increase industrial profitability in the long run to increase investor interest in the future. The decision to choose palm oil industry stocks that carry out sustainable practices and generate maximum returns is an exciting issue, but how investors can choose the right stocks and the minimum risk level. This study aims to apply the decision-making model to choose the optimal stock in the palm oil industry, which involves sustainable certification and risk criteria. The method used in this study was the Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) based on the Indonesia Stock Exchange (IDX) data. Determinants of stock selection decisions from previous research are considered criteria for decision making. Through the PROMETHEE method, a list of the rankings of the oil palm industry shares can be generated. The sustainable certification and risk criteria can be used as a reference for relevant stakeholders such as investors. Further studies need to be developed by adding non-financial criteria in the firm and developing the criteria to differentiate each other.

Organic, conventional and sustainable palm oil (RSPO): Formation of 2- and 3-MCPD esters and glycidyl esters and influence of aqueous washing on their reduction

Palm oil is a type of vegetable oil which presents a variety of applications including food, energy, and international trading. However, one of the major concerns associated with palm oil uses as a food ingredient is the significant amount of processing contaminants, such as monochloropropanediol esters (MCPDE) and glycidyl esters (GE) which are formed during the refining process. These contaminants may pose a health risk to consumers due to their carcinogenicity. Thus, mitigation strategies have been studied to reduce these substances in palm oil. In this study, we investigated the effect of the application of an aqueous washing step, as a mitigation strategy, prior to deodorization in three different palm oil cultivation systems: organic, conventional and certified palm oil by the Roundtable on Sustainable Palm Oil (RSPO). In addition, we evaluated the quality parameters after the application of the washing step. For the organic, conventional and RSPO palm oil samples, the aqueous washing step reduced approximately 41%, 34% and 36% of the 3-MCPDE, respectively. The levels of 2-MCPDE for the organic, conventional and RSPO palm oil presented a reduction of 55%, 41% and 32%, respectively. The GE levels are considerably low for all the deodorized palm oils, and presented no statistically significant difference (p > 0.05). Besides, the quality parameters such as free fatty acids, color, and OSI met the recommended limits. Therefore, the aqueous washing could be used as a supplementary strategy to reduce these contaminants from palm oil.

No Palm Oil or Certified Sustainable Palm Oil? Heterogeneous Consumer Preferences and the Role of Information

Public concerns about the adverse effects of palm oil production and consumption have contributed both to the development of certification standards for sustainable palm oil and to the promotion of palm-oil-free products. While research on consumer preferences for palm oil is growing, potential trade-offs between these two options—products containing certified palm oil versus palm-oil-free products—are still largely unexplored. Focusing on this research gap, a discrete choice experiment involving chocolate cookies was implemented as part of a web survey among consumers in Germany. Results indicate that consumers on average prefer palm-oil-free cookies, although a latent class analysis identifies several consumer segments that differ in terms of preferences, attitudes, and characteristics. Many respondents are highly price-sensitive. After the provision of additional information, stated preferences for certified palm oil increase, but four out of five consumer segments still prefer palm-oil-free products. Prevailing health concerns and a potential lack of trust in certification might explain this choice behavior. As alternatives to palm oil are not necessarily more sustainable, initiatives supporting the uptake of certified sustainable palm oil should be further strengthened. Targeted information campaigns might be a suitable instrument to raise awareness and increase knowledge about palm oil.

Certified palm oil reduces greenhouse gas emissions compared to non-certified

Consumers are increasingly demanding products containing palm oil produced without harm to the environment. The industry response to this demand has been the creation of the Roundtable on Sustainable Palm Oil (RSPO) and the development of a certification system to ensure sustainable palm oil production. However, currently there is no scientific evidence of the benefit gained through the RSPO certification schema. This paper quantifies the environmental impacts of RSPO certified and non-certified through a detailed Life Cycle Assessment (LCA) of 1 kg of RBD palm oil to factory gate, produced in Indonesia and Malaysia in 2016, to identify potential benefits and trade-offs of RSPO certification. The ISO 14040/14044 compliant LCA is carried out following both a consequential and an attributional LCA approach. The inventory model presents a high level of detail. Primary inventory data describing the certified production system are obtained from RSPO assessment reports, covering 73% (634 estates) of the certified estate, including 111 smallholders, and 58% (165 oil mills) of the certified mills. Data for the total industrial production are drawn from national statistics and scientific literature. The non-certified flows are derived by subtracting the certified flows from the total industry flows. The consequential results show that RSPO certified oil reduces GHG emission by 35% compared to non-certified i.e. 3.41 (2.61–4.48) kg CO2 eq./kg for certified vs 5.34 (3.34–8.16) kg CO2 eq./kg for non-certified. Based on a thorough data quality assessment and uncertainty analysis, this result is deemed sufficiently robust and thus conclusive. Certified production achieves the largest GHG emissions reduction because of higher yields, i.e. less land use per unit of product, less oil palm cultivated on peat soil and higher share of palm oil mill effluents treated with biogas capture technologies. We also found that nature occupation is reduced by 20% in certified production while respiratory inorganic is slightly higher (3%) in certified production, due to the larger use of fertilisers. For other impact categories, results are associated with a larger uncertainty and therefore shall be considered as indicative. Similar results are found in attributional modelling.

Can Protection Motivation Theory Predict Consumer’s Behavioural Intention Toward the Choice of Certified Sustainable Palm Oil in Klang Valley Malaysia?

Encouraging consumers to participate in the promotion of sustainably certified palm oil production and consumption, may require their support towards the supply value chain mechanism. Value chain mechanism are often adopted to promote sustainability and assure the consumers and protect the environment from threat associated with palm oil. we applied Protection motivation theory in this research, and analyse through many set of its indicators to serve as a valuable framework to explain pro-environmental choice. There is dearth of empirical research that test the Protection Motivation Theory on the risk of unsustainable oil palm and its consequences. We equally adopted Structural Equation Model approach, and surveyed 332 consumers in Klang Valley Malaysia. And finally we access the perception of the consumers towards exposure to environmental threat caused by uncertified oil palm production, and coping strategy they adopt to minimize the threat. Though, consumers did not perceived high threat from the uncertified oil palm production, because they trust their perceived self-efficacy and response efficacy to cope up with the consequences of uncertified oil palms. However, even though they indicates, absence of institutional arrangement such as RSPO can expose them to threat of uncertified oil palm, but they perceive the coping strategy adopted by Roundtable on Sustainable Palm Oil (RSPO) was not adequately effectively to ensure compliance with RSPO principles, that would not address the problems associated with uncertified oil palms.