AIC Services launches Palm Oil Credit Scheme (APOCS) to support sustainable supply chains
5 August 2019
AIC Services’ Palm Oil Credit Scheme (APOCS) has been developed in conjunction with the Roundtable on Sustainable Palm Oil (RSPO) to purchase palm oil credits on behalf of AIC members.
By purchasing RSPO Credits, a business can directly support those palm growers who have changed growing practices to meet all the RSPO Principles and Criteria to produce certified sustainable palm oil products. This supply chain model also supports smallholders who may not have access to the market for certified sustainable oil palm products.
AIC estimates that the UK animal feed industry uses between 40-50,000 tonnes of palm oil each year. Most palm oil is included in blended fats for ruminant feeds along with palm fatty acid distillate (PFAD) and mixed soft acids. AIC estimates PFAD usage at 16-20,000 tonnes annually.
Palm oil is used in many other industries ranging from food to cosmetics.
UK government is committed to securing a 100% sustainable palm oil supply chain by 2020. APOCS provides the feed sector with a simple means of moving towards this target and demonstrating to customers a commitment to sustainable products.
Most palm oil is produced in South East Asia, mainly Malaysia and Indonesia. Its production is associated with deforestation and climate change, loss of habitat for orang-utans and other diverse species, use of peat resources and exploitation of plantation workers. RSPO standards are set to avoid these adverse effects.
John Kelley, Managing Director, AIC Services said: “APOCS should help the UK feed sector meet some of its sustainability targets as well as having a positive impact by supporting growers in the RSPO. We look forward to managing this new initiative.”
Organisations such as RSPO and the European Palm Oil Alliance (EPOA) are raising awareness of palm oil and urging users to move towards sustainable supply chains which work with farmers to promote sustainable practices.
APOCS purchases RSPO Credits on behalf of AIC member companies. This avoids members having to individually join RSPO with the associated fees and audit requirements. APOCS confirms a RSPO Credit purchase price for a defined quantity, carries out the transaction and provides the member with a traceability certificate for the quantity of palm oil purchased. A small fee is charged for this service.
Member companies using APOCs can apply the RSPO Credits logo on their packaging so demonstrating commitment to sustainable supply chains.