IFC Committed to Sustainable Palm Oil

On November 2008, a tanker will deliver 500 tonnes of RSPO-certified palm oil produced in Malaysia to the Port of Rotterdam, the first-ever shipment of RSPO-certified sustainable palm oil to Europe. This is an important milestone and a defining moment for the Roundtable on Sustainable Palm Oil (RSPO) created in 2004 specifically to establish sustainable practices in the sector, and become the central body for allowing certification of sustainable palm oil.

Since October 2005, IFC has been an active member of the RSPO and has been involved in developing guidelines for sustainable and responsible palm oil production across the industry in collaboration with members, over 250, of the multi-stakeholder initiative. These participants represent all levels of the palm oil production supply chain, as well as environmental NGOs such as WWF, Oxfam, Rainforest Alliance, and Conservation International, among others.

IFC also invests in sustainable palm oil and believes that this is an effective way towards poverty reduction. Palm oil production is the basic source of income for millions of the world's poor, and sometimes the only viable employment alternative. It is also the most affordable multi-purpose vegetable oil, used mainly for food consumption,and personal care products.

Frequently Asked Questions: IFC and Palm Oil

• Why is IFC investing in the palm oil sector?
• Why support a sector that is known to pose social and environmental management challenges?
• How does IFC apply its Environmental and Social Performance Standards?
• When IFC invests in palm oil production, how does it ensure that the client conducts its palm oil production operations in a sustainable way?
• When IFC invests in oil palm plantations, how does it ensure the protection of forests, of wildlife habitat and endangered species that could potentially be affected?
• When IFC invests in oil palm plantations, how does it ensure there is local community support for a client's plantation, and that Indigenous Peoples' rights are protected?
• How does IFC deal with alleged or demonstrated violations of the performance standards by a client?
• What is IFC's stance on the expansion of oil palm cultivation in East Asia?
• What is IFC's position on using palm oil to produce biofuel?