SUSTAINABLE
PALM OIL
PRODUCTION

MSPO CERTIFICATION
SCHEME

The Malaysian Sustainable Palm Oil (MSPO) Certification Scheme is the national scheme in
Malaysia for oil palm plantations, independent and organized smallholdings, and palm oil
processing facilities to be certified against the requirements of the MSPO Standards.

– development of certification standards
– accreditation requirements and notification of certification bodies
– application by potential clients for certification audits
– supply chain traceability requirements
– guidelines for auditing
– peer reviewing of audit reports
– issuance of logo usage licenses
– procedures for handling of complaints

OBJECTIVES OF MSPO

National standard on sustainability – applicable to all
categories of oil palm industry – small, medium and
large.

Standard that complies with Malaysian laws and ratified
international agreements/conventions.

To ensure that all oil palm premises in Malaysia are
sustainably certified

Standard is based on a balanced three pillars of
sustainability.

THE 7 PRINCIPLES OF
MSPO STANDARDS

The MSPO Standards contains seven (7) principles which form
the general requirements of a management system
framework, based on the three pillars of sustainability, i.e.
economically viable, socially acceptable, and environmentally
sound. The general requirements for the MS2530:2013 are as
follow:

Each of the seven (7) General Principles have specific Criteria
and Indicators that the Certification Bodies (CBs) will use
during audit to determine compliance. The management of
the entity that meets the requirements of the MSPO will be
able to obtain certification under the standard.

PART 2: GENERAL PRINCIPLES FOR
INDEPENDENT SMALLHOLDER

Principle 1:
Management commitment and responsibility
• Policy binding smallholders to MSPO is in place

• Action plan for continual improvement of SPOCs*

is in place

Principle 2:
Transparency
• Records of sales and delivery or transportation of

fresh fruit bunches (FFB) are kept

• Traceability requirements are implemented and

conducted by group management

Principle 3:
Compliance to legal requirements
• All applicable local, state, national & ratified

international laws and regulations are complied

with

• Land use and customary land rights of

independent smallholders are demonstrated

• Legal ownership of customary land rights is

demonstrated using maps

Principle 4:
Social responsibility, health,
safety and employment

conditions

• Complaints and grievances raised are responded to

• Safe work practices and conditions are ensured

• Work conditions are in accordance with mutual verbal

agreements made transparently and freely

• Equal opportunity and treatment are provided

• Where available and practical, living quarters with basic

amenities are provided

• Children and young persons are not employed or exploited

• Workers pay and employment conditions meet legal standards

• Seeking knowledge to increase competency in oil palm

management is encouraged

Principle 5:
Environment, natural resources,
biodiversity and ecosystem

services

• Awareness of environmental impacts is expected

• Use of renewable energy is applied, where possible

• All waste products and souse of pollution are identified

by off appropriately small holders must be disposed

• Quality and availability of surface and ground water are

maintained

• Basic understanding of any species or habitat of concern,

together with the conservation needs, is shown

• Open burning during land preparation for oil palm cultivation

or replanting shall not be practiced

Principle 6:
Best practices are implemented
• A management plan to

demonstrate economic and

financial viability is established by

group management

• Communication and consultation

with dealers, millers, local

communities and other interested

parties are encouraged for

transparent and fair price dealings

Principle 7:
Development of new planting
• No planting of oil palm on land with

high biodiversity value

• Information on soil types,

topography and their suitability for

oil palm plantings is obtained

• Extensive planting on steep terrain,

marginal and fragile soils is avoided

PART 3: GENERAL PRINCIPLES FOR
OIL PALM PLANTATION AND
ORGANISED SMALLHOLDER

Principle 1:
Management commitment
and responsibility

• Malaysian Sustainable Palm Oil (MSPO) Policy

is in place

• Internal Audit shall be conducted periodically

• Management review to ensure adequacy and

effectiveness of MSPO implementation

• Continual improvement plan in place

Principle 2:
Transparency
• Relevant information and documents made

public

• Procedures for consultation and communication

with stakeholders established

• Implement procedures for traceability of

products

Principle 3:
compliance to legal
requirements

• Compliance with applicable laws and

regulations

• Land use and Customary Land Rights

shall be respected

• Legal ownership of land demonstrated

• Free, Prior and Informed Consent (FPIC)

in place

Principle 4:
Social responsibility, health,
safety and employment

conditions

• Social Impact Assessment (SIA)

conducted

• Complaints and grievances mechanism

in place

• Commitment to contribute to local

sustainable development

• Employees safety and health policy in

place

• Good employment conditions established

• Appropriate training is provided

Principle 5:
Environment, natural
resources, biodiversity

and ecosystem services

• Environmental Management Plan (EMP) in place

• Efficiency of energy use and use of renewable

energy

• Reduction of pollution and emission including

greenhouse gases

• Water management plan to maintain the quality

and availability of water resources

• Identification of high biodiversity value areas

and rare, threatened or endangered ecosystems

or species

• Zero burning practices for waste disposal and

land preparation

Principle 6:
Best practices
• Site management to implement best practices

• Economic and financial viability plan

implemented

• Transparent and fair price dealing implemented

• Contractors shall understand and comply with

MSPO requirements

Principle 7:
Development of new planting
• No planting on lands with high

biodiversity value

• No conversion of Environmentally

Sensitive Areas (ESAs)

• New plantings and replanting on peat

lands can be developed as per MPOB

guidelines & industry best practices

• Comprehensive Social and

Environmental Impact Assessment

(SEIA) conducted prior to new plantings

• Adequate information on soil types and

topography needed of new plantings

• Extensive planting on steep areas and

fragile soils avoided

• Recognize customary land rights

and land owners’ through Free, Prior

and Informed Consent (FPIC)

PART 4: GENERAL PRINCIPLES FOR
PALM OIL MILLS

Principle 1:
Management Commitment and
Responsibility

• Malaysian Sustainable Palm Oil (MSPO)

Policy is in place

• Internal Audit shall be conducted periodically

• Management review to ensure adequacy and

effectiveness of MSPO implementation

• Continual improvement plan in place

Principle 2:
Transparency
• Transparency of information and documents

relevant to MSPO requirements

• Transparency in communication and

consultation

• Implementation and maintenance of

Traceability requirements

Principle 3:
Compliance to Legal
Requirements

• Compliance to applicable laws and

regulations

• Land use and Customary Land Rights

respected

• Legal ownership of land demonstrated

• Free, Prior and Informed Consent (FPIC) in

place

Principle 4:
Social Responsibility,
Health, Safety and

Employment Conditions

• Social Impact Assessment (SIA) conducted

• Complaints and grievances mechanism in

place

• Commitment to contribute to local

sustainable development

• Employees safety and health policy in place

• Good employment conditions established

• Appropriate training is provided

Principle 5:
Environment, Natural
Resources, Biodiversity

and Ecosystem Services

• Environmental Management Plan (EMP) in

place

• Efficiency of energy use and use of

renewable energy

• Waste management plan

• Reduction of pollution and emission

including greenhouse gasses

• Water management plan established

Principle 6:
Best Practices
• Mill management to implement best

practices

• Economic and financial viability plan

implemented

• Transparent and fair price dealing

implemented

• Contractors shall understand and comply

with MSPO requirements

CHALLENGES OF MSPO

Recognition and acceptance of MSPO Scheme,
particularly in environmentally sensitive markets for
Malaysian palm oil products (EU, US, Australia).

Existence of other palm rated sustainability standards

Uptake of MSPO certification has been rather gradual
without mandatory.

Limited incentives for companies to embrace
sustainability certification.