The management systems in place at the group's existing palm oil mills and storage facilities have been certified to be in compliance with the Roundtable on Sustainable Palm Oil (RSPO) Supply Chain Certification Standard (SCCS). This accreditation is designed to enable buyers to purchase palm oil or palm kernel oil from RSPO certified sources. In some cases it may be possible for an RSPO certified producer to sell the Certified Sustainable Palm Oil (CSPO) or Palm Kernel Oil (CSPKO) they produce through a segregated supply chain, which assures the buyer that the palm oil purchased originated from a RSPO certified plantation. However, at present the REA Group does not produce CSPO or CPKO in sufficient quantities for it to be feasible to segregate this from non-certified palm oil during processing and transport. The REA Group has therefore been certified under the 'mass balance' model for RSPO Supply Chain Certification. This model permits the mixing of certified and non-certified palm oil but ensures that the total volume sold as CSPO or CPKO does not exceed the volume produced by the REA Group's RSPO certified plantations over a specified time period. However, unlike the segregated supply chain model this does not guarantee that every batch of CSPO or CPKO purchased originated from an RSPO certified plantation. Read more about REA's Accreditation.

Thursday, April 26, 2012