Overview

The world is currently facing global food crisis. Palm oil is a critical commodity that plays a vital role in supporting the livelihoods of many communities, the GDP of many countries and the achievement of SDGs. This forum will discuss the sustainability aspects of today’s palm oil. The panel will also highlight how we are positioning or have positioned ourselves to fulfil future demand for palm oil without compromising its sustainability.

Panel

The panel discussion was moderated by Ir Prasath Ramani from POPSIG. The panel consisted of:

• Professor Ir Dr Dominic Foo Chwan Yee, Professor of Process Design and Integration at University of Nottingham Malaysia & Founding Director of Centre of Excellence for Green Technologies at University of Nottingham Malaysia
• Dr Steven Lim, Assistant Professor at Universiti Tunku Abdul Rahman & Chairperson of Centre for Photonics and Advanced Material Research
• Dr Carmen Goh Kar Mun, Manager at Eureka Synergy Sdn Bhd & Research and Development Manager at Green Plant Organic Fertilizer Sdn Bhd
• Ir Dr Calvin Chok Vui Soon, Head of Technology at KL-Kepong Oleomas Sdn Bhd

Sustainability in Today's Palm Oil

Topic 1: Sustainable palm oil

Dominic stated that the three fundamental elements of sustainability are environment, economics and social. He stressed that it is needed to put more efforts on social aspect to give good impressions to people outside ASEAN.

Steven believed that the term refers to how to produce palm oil with no irreversible negative impacts to the environment and society, as well as sustainable land use.

Carmen stressed that the emerging concept of NDPE focuses on economic, social welfare, environment and no exploitation of workers.

Calvin added that palm oil plantation growth has been very rapid in the past few years, and the industry observes exponential growth until a cap set by the Malaysian authority.

Topic 2: Mitigate deforestation

Dominic emphasised that each oil palm can last for, on average, 30 years. Oil palm crop shows better yield performance as compared to other seasonal crops. Palm oil can be used for food (edible oil) and fuel (biodiesel).

Steven stressed that palm oil industry has put a great effort on mitigating deforestation. Continuous improvement on RSPO and local authority enforcement can further strengthen the mitigation of this issue. The millers should also take actions if the oil palm was sourced from deforested areas.

Calvin said that each planter needs to get the license from MPOB to perform plantation, oil production and other related tasks. He stated that KLK OLEO is improving oil yield per hectare and productivity.

Topic 3: Malaysia's COP26 pledge

Dominic shared that enforcement is a pressing issue. The authority needs to put the plan into practice.

Carmen stated that Minister of Environment and Water (KASA) had signed to make a COP26 pledge with 8 measurement statement. One is to maintain at least 50% forest cover, and 100 million trees will be planted. Deforestation also occurs with logging, agricultural plantation and housing development activities.

Topic 4: Palm oil industry is meeting SDGs

Cooperation between the regulatory body and the smallholders are vital towards achieving SDGs. Dominic believed smallholders are also major contributors to methane and carbon emissions.

Calvin shared that encouragements, government support and regulatory enforcement are essential. There are very high expectations on the standard in every material and product in the industry.

Steven described that oil palm wastes (biomass) can be transformed into a wide variety of valuable products. Palm oil contains a lot of nutrients and vitamins, of which it can address poverty issue.

Carmen stated that most players are moving towards MSPO certifications. Palm oil industry is actively addressing deforestation issues to improve the overall sustainability.

Topic 5: MSPO certification

Carmen told that there are some similar elements in RSPO and MSPO. RSPO requires annual fees from each applicant, and the requirements are rapidly being upgraded by the committee. MSPO is mandatory certification in Malaysia, from oil mills to refineries.

Calvin believed that there should be regulations for smallholders in Malaysia to meet up the minimum international standard.

Topic 6: Biodiversity

Carmen commented that most agricultural activities would affect biodiversity at a varied severity. She suggested that oil palm plantation can be grown on an unused farmland. Improved practice can start from seedling to produce more yield and be more resistant to pathogens.

Calvin shared oil palm remains as a better choice compared to the alternative oil crops. Forest conservation is part of the CSR programme in oil palm industry. Poverty is a pressing issue in Indonesia, and hence, this programme provides job opportunities for the citizens.

Topic 7: Palm oil's standing in the future

Calvin strongly believed that the only vegetable oil that has sustainable label is palm oil in the global market.

Steven said that the industry is taking proactive steps on palm oil sector development. Financial capability is the major concern to smallholders.

Topic 8: Renewable energy

Steven shared that there were arguments on the use of palm oil as fuel. The critics worried that it would cause food shortage and boost food price. However, he believed that this advancement would not affect the global food supply chain. He added that accessibility would be the more concerned issue for discussion. The advantages of palm oil-based biodiesel are non-toxic and environmentally friendly. He commented that biodiesel is the best fit-in fuel in replacement of fossil fuels. This would save a significant amount of capital cost. Waste-to-wealth development has also begun in Malaysia, where biomass is converted into biofuel and bioproducts.

It is arguable that life cycle analysis has been conducted on palm biodiesel and ISCC body has evaluated the complete LCA of palm oil product. Calvin believed that production of palm oil for biodiesel is mostly a subsidised business.

Topic 9: SDG1 - No poverty

Carmen shared that oil palm plantation is mostly done in the rural areas. People needs to accept the industrial responsibilities without cherry-picking.

Closing remark

Steven believed that the industry is transforming to deliver better working conditions, with the development of AI, robotics and drones. Calvin saw graduates showing interested in the manufacturing of green products to minimise carbon release into the atmosphere. Carmen commented graduates would contribute to monitor technologies and machineries to support the current work. On oil mill and refinery, Ministry of Health pressed that palm oil is a food-graded product, and hence, the industry would require food analyst and nutritionist to support the production. Complete understanding on the ground is needed before proceeding to the next stage of the career. Prasath concluded that everyone needs to get the information right and understands the golden industry.