**2.2 Sustainability certification**

Sustainability certification is a market-based process in which consumers pay a higher price for products that meet particular environmental and social requirements during manufacturing and throughout the value chain. The Roundtable Sustainable Palm Oil (RSOP) is the most well-known international certification for palm oil, but national schemes such as the Malaysia Sustainable Palm oil (MSPO) and Indonesia Sustainable Palm Oil (ISPO) exist in Malaysia and Indonesia respectively [52]. Oil palm sustainability certification includes RSPO, MSPO, ISPO, International Sustainability and Carbon Certification (ISCC) and the Roundtable on Sustainable Biomaterials and Sustainable Agriculture Networks (RSBAN) (SPOTT, 2015). MSPO and ISPO are mandatory government-led certification schemes, whilst the RSPO and ISCC are implemented on a voluntary basis [53].

The RSPO, non-profit organization, which was formed in 2004 develops and implements global standards for sustainable palm oil by bringing together stakeholders from the seven sectors of the palm oil industry: oil palm producers, processors or traders, consumer goods manufacturers, retailers, banks/investors, and environmental and social non-governmental organizations (NGOs).

In order to produce Certified Sustainable Palm Oil (CSPO), enterprises must meet a set of environmental and social criteria specified by the RSPO. These criteria, when appropriately followed, can assist to reduce the detrimental effects of oil palm cultivation on the environment and communities in palm oil-producing areas. The RSPO is a global organization with over 4,000 members from 92 countries who represent all aspects of the palm oil supply chain. They have pledged to produce, source, and/or utilize sustainable palm oil certified by the RSPO.

MSPO as at 31st December, 2019 had certified 3.6 million hectares or about 62.26% of the total area under oil palm cultivation using the certification standards. The standards contains principles, criteria and indicators generally aimed at sustainable production with the intention of mitigating the negative social and environmental impacts and encompasses traceability system, good agricultural practices, improved natural resource management and environmental responsibility and compliance with existing regulations [54]. Before the certification of oil palm producers, these standards must have been complied and audited by the RSPO, MSPO and ISPO. The principles of RSPO, MSPO and ISPO are shown in **Table 1**. The principles for certification involves transparency, legal operation, efficient production systems, respect for community and human right, small holder inclusion, rights of workers should be respected and operation that conserve the environment. Within this framework, the MSPO and ISPO have these'd out their own principles to suit them as indicated in **Table 1**.

Carlson et al. [55] reported that certification reduced deforestation by 33%. Saswattecha et al. [56] also reported that RSPO certified producers at the Tapi Basin in Thailand caused lowering of environmental impact (23–34%) compared to non-certified producers (58–75%). Studies in Indonesia indicated that smallholders who adopted the RSPO certification improved their livelihoods and increased their economic returns; they were also better trained in fertilizer, herbicide and pesticide application and handling than non-certified independent smallholders [54].

Although the certification of smallholders are increasingly challenging due to increased oil palm plantation management cost and fees resulting in less adoption of the RSPO certification, the need to put efficient and viable system such



**Table 1.** *Principles of RSPO, MSPO and ISPO.* as support system for small holders may help the oil palm production to be more sustainable and also go a long way to achieving the UN's Sustainable Development Goals (SDG).
