BASF and Estée Lauder help eco-certifiers verify sustainable palm oil farmers in Indonesia

21 Nov 2023 --- Hitting a “milestone” in sustainable palm farming accreditation, 313 smallholder farmers in Way Kanan Regency, Lampung, Indonesia, have been certified under the RSPO Smallholder Standard. The farmers under Project Lampung, a multi-year initiative co-led by BASF, The Estée Lauder Companies (ELC), RSPO and The Solidaridad Network, are provided training on making sustainable farming education more widely accessible.

The initiative, launched in 2018, aims to fortify the sustainable palm oil supply chain and empower local farmers with the support of the Indonesian government.

“Over the course of the project, the team facilitated partnerships between the farmers’ organization and relevant stakeholders, such as the local government, to gain support and participation for sustainable development,” Marieke van der Heiden, corporate engagement manager at Solidaridad, tells Personal Care Insights.

Palm oil derivatives are used in cosmetics such as liquid eyeliners, cream foundations, shampoo and lip products.

Paving way for efficient farming
Project Lampung is communicated as the “first of its kind” in Way Kanan Regency. Before the initiative, these farmers lacked exposure to sustainable palm oil practices. 

In addition to educating on sustainable production practices, the program allows farmers with access to certified seedlings, ultimately aiming to raise productivity.

The project team has been actively engaging with the local government to activate them to participate. “As a result, the government actively supported the Internal Control System as part of the Cooperative (KPKSS) in obtaining the RSPO certification. This collaborative effort has recognized the presence of the farmers’ organization, establishing a platform for extended cooperation and government support,” notes van der Heiden. 

“The local government has formally acknowledged KPKSS as a promising partner for future initiatives.”(Image credit: Solidaridad).

Van der Heiden adds this partnership is anticipated to yield ongoing benefits, including access to government programs focused on long-term support and assistance, encompassing resources such as information, capacity development, networking and promotional opportunities for KPKSS.

“We announced the achievement of one of the primary objectives of Project Lampung to have nearly one-third of the supported smallholder farmers achieve certification according to the Smallholder Standard of RSPO within three years,” comments Marcelo Lu, SVP at BASF Care Chemicals. 

“The dedication and commitment of our project partners, in collaboration with the Indonesian government, have been instrumental in fostering a sustainable palm oil production supply chain in Lampung.”

Challenging delays
While initially anticipated to take three years, Project Lampung was extended to five years. The collaboration adapted to shifting priorities, showcasing dedication to supporting farmers during challenging times.

“Mostly, the Farmer Field School was disrupted by the COVID-19 pandemic. The restrictions in the area caused quite some delays in site visits and training activities. This led to an extension of the project,” explains van der Heiden.

“The local team tried to offer the farmer field school training online, but this did not work out due to a slow internet connection and inadequate devices. “Once the project extension was approved, it was decided to postpone the largest part of the Farmer Field School till onsite training was possible.”

“We were able to start the onsite training again in January 2022. On top of that, creating a connection with the farmers to involve them in the project and build a trusting relationship was extremely difficult during the COVID-19 lockdowns,” says van der Heiden.

“Farmers were not used to working with NGOs, and we noticed that it was really valuable to be in the field to create that connection and trusting relationship to ensure the farmers were enthusiastic and motivated to participate in the project,” she adds.

Community-centric approach
According to BASF, the project’s success lies in its “community-centric” approach, ensuring small farmers in Way Kanan are equipped with the technical support and knowledge to adopt climate-smart production practices. (Image credit: Solidaridad).

“The project included the mechanism of Training of Trainers, which is often used in development projects. It refers to a training approach where a select group of individuals, called ‘trainers,’ are provided with comprehensive knowledge and skills. These trained individuals are expected to serve as trainers, disseminating the acquired knowledge and skills to a community or organization,” comments van der Heiden.

“All the trainers that were prepared to train the farmers in the Farmers Field School received support from Solidaridad and Business Watch Indonesia. The Farmer Field School is the method used to reach 1,003 palm oil smallholders in the project areas to deliver practical knowledge on good agricultural practices and further sensitize the smallholders about certification. The training for farmers usually took place at a palm oil farm or community hall in the village.”

Farmers gained knowledge and a better understanding of Good Agricultural Practices through the school.

“To ensure farmers apply their knowledge, our project team conducts field visits. The Internal Control System will keep checking in with the farmers to ensure they are able to apply good agricultural practices,” says van der Heiden.

Is the industry prepared for EUDR?
There is a narrowing focus on the sustainability of palm oil supply chains in the cosmetics sector. With the EU’s Deforestation Regulation (EUDR) rolling out in 2024, whether the palm oil industry is prepared to tackle supply chain transparency remains contested.

In a briefing paper, Solidard shares: “In 2021, 93% of European imports of palm oil were certified as sustainable, of which 67% was ‘Segregated RSPO certified,’ which meant that the palm oil entering the EU can be traced to the plot at which it was originally produced.”(Image credit: Solidaridad).

An EU official previously told Personal Care Insights that operators and traders will have to prove that the products are deforestation-free (produced on land not subject to deforestation after December 2020) and legal (compliant with all relevant applicable laws in force in the country of production).

“Companies will also be required to collect precise geographical information on the farmland where the commodities that they source have been grown, they can be checked for compliance,” adds the spokesperson.

However, in a recent assessment by the Zoological Society of London, the palm oil industry was flagged to be largely unprepared for the EUDR. The organization alarmingly finds that less than 12% have publicly disclosed the geolocations of their third-party supplier plantations, including independent smallholders. These are crucial factors for confirming anti-deforestation pledges, the society argues.

“While the EUDR doesn’t dictate public map disclosure, it mandates comprehensive mapping of supplier plantations,” says Imogen Fanning, sustainable business project analyst at the Zoological Society of London.

Cross collaborations, such as the one between BASF, ELC, RSPO and Solidaridad, stand as an example of progress toward palm plantation transparency.

In collaboration with the Indonesian government and other local organizations, the cooperative conducted Social Impact and Environmental Impact Assessments. The partners mapped farmers’ fields and uploaded data to the RSPO database to verify the absence of deforestation or land conversion.

In previous industry efforts, Beiersdorf, Evonik and the WWF also united to secure deforestation-free palm oil. “In line with the new EU deforestation rules, the project aims to support smallholder farmers in obtaining RSPO certification. RSPO agricultural practices strengthen the integrity of the forest ecosystems and contribute to halting deforestation,” a spokesperson at Beiersdorf told Personal Care Insights.Palm oil derivatives are used in cosmetics such as liquid eyeliners, cream foundations, shampoo and lip products.

Supplier backlash
In September, the EUDR faced backlash from 17 producer countries accusing it of being “inherently discriminatory.” 

Indonesia, Brazil and Malaysia sent a joint letter to the EU and its Commission flagging: “The legislation disregards local circumstances and capabilities, national legislations and certification mechanisms of developing producer countries, their efforts to fight deforestation and multilateral commitments, including the principle of common but differentiated responsibilities.”

“The EU’s ‘one-size-fits-all’ approach, implemented through this model of due diligence and traceability, ignores the different local conditions and will inevitably impose immense costs on exporting and importing countries alike, as well as on producers and consumers.”

Further, Solidard’s briefing paper stresses: “The EU’s demand for certified sustainable palm oil is mainly satisfied by the larger producers who are capable of meeting the stringent sustainability and traceability requirements. Smallholders, even though they collectively account for 35% to 40% of the global production, have only a small share of the EU market.”

“Globally, smallholders produce less than 10% of the total RSPO Certified Sustainable production, while independent smallholders account for less than 2% of total volume of RSPO-certified palm oil. These stringent requirements and the lack of appropriate supply chain mechanisms have limited the access of smallholder products to the EU market. The introduction of the new EUDR is likely to exacerbate this situation and could contribute to excluding smallholders from the EU market.”

In response to the letter, a Commission spokesperson told Personal Care Insights in September that the EU plans to respond “in due course” while stressing that the EUDR is “a climate-oriented, environmental policy tool” and was designed to be compatible with the WTO rules.

An upcoming Team Europe Initiative will launch at COP28, the spokesperson added. This will occur in the UAE from November 30 until December 12 this year.

By Venya Patel