When it comes to palm oil, sustainability is a hot topic, and Malaysia has taken a significant step with the Malaysian Sustainable Palm Oil (MSPO) Standard. This certification ensures that palm oil production in Malaysia meets rigorous environmental, social, and economic criteria, aimed at reducing the industry’s impact while supporting local communities.
Why Does MSPO Matter?
Introduced in 2013, the MSPO Standard sets guidelines that every player in the Malaysian palm oil industry must follow. It became mandatory for all Malaysian palm oil producers by the end of 2019, covering plantations of all sizes, from smallholders to large corporations. This national effort guarantees that products carrying the MSPO certification meet internationally recognised sustainability standards.
Key Pillars of the MSPO Standard:
- Environmental Protection: MSPO requires companies to adopt the NDPE, no deforestation, no peatland use nor exploitation. This includes zero-burning practices and using sustainable land management techniques. As of December 2023, over 92% of oil palm planted areas in Malaysia are MSPO-certified, helping reduce carbon emissions and soil degradation.
- MSPO trace was created in 2019 to monitor the certification process by monitoring ACBs, using geo-location features, collecting data from around the country and traceability.
- Social Responsibility: The MSPO certification enforces compliance with national labour laws, ensuring fair wages and safe working conditions for the 570,000 workers employed in Malaysia’s palm oil sector. It also promotes gender equality and provides support for smallholder farmers, who make up around 40% of Malaysia’s palm oil production.
- Economic Viability: By encouraging sustainable practices, MSPO ensures long-term profitability for farmers. MSPO also offers training programs for smallholders, helping them improve yields and reduce costs. It brings better income to plantation owners and smallholders, with 99.7% of palm oil smallholders’ incomes above the national poverty level.
- Biodiversity Conservation: MSPO-certified plantations have taken steps to protect local wildlife. This includes buffer zones near forests and rivers to safeguard biodiversity, including endangered species like the Bornean orangutan. Alongside NGOs, the sustainable palm oil industry has introduced a programme of replanting 100 million indigenous trees. In Sabah alone, they have 1.87 million hectares of conservation areas, with 40,000 orangutans living in these protected areas all across Malaysia.
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