Certifications
Palm oil certification
To promote more environmentally and socially responsible production of palm oil and palm kernel oil, and not least because of worldwide criticism of practices in palm oil cultivation, various certification schemes have developed in recent years. They all pursued the goal of identifying challenges, entering into dialogue with all relevant actors and developing solutions for resilient oil palm cultivation.
Certification schemes are part of the solution towards more resilient palm oil production. On their own, however, they cannot solve the problems in the sector. This also includes support from national policy and European or international legislation (e.g. EUDR/deforestation regulation and the LkSG/Supply Chain Due Diligence Act), enforcement of existing laws, and responsible producers and traders.
Over recent years our Forum has worked to improve certification schemes. Despite all criticism, FONAP still regards certification schemes as an important tool.
Which certification schemes does FONAP accept?
The Forum Palm Oil currently accepts the following certification schemes for implementing its voluntary commitment: RSPO and ISCC PLUS.
Since 2025, organic certification in combination with RSPO Mass Balance or Union for Ethical BioTrade (UEBT) is also recognised. The changes will take effect from the 2026 monitoring round for the year 2025.
How is certified palm oil traded?
When sourcing certified palm oil there are various trading options within supply chains. Common to all options is that palm oil and palm kernel oil are produced on certified and audited plantations. The various trading models differ, however, in whether certified palm oil is actually contained in the product or not. From 1 January 2027 only the trading models “IP = Identity Preserved” and “SG = Segregated” are permitted, as well as the mass-balance model under strict requirements. Details of the mass-balance model are given below.
You are currently viewing a placeholder content from YouTube. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
More InformationTrading models
Identity Preserved
The Identity Preserved (IP) trading option makes it possible to identify, through to the end product, which plantation the palm oil used comes from. Producing palm oil under the IP trading option requires a complex and costly infrastructure. At the same time it is a highly credible way of sourcing, because the palm oil is 100 percent traceable back to the plantation.
Segregation
Similar to the Identity Preserved option, under the Segregation (SG) trading option sustainably certified material is kept separate from non-certified material throughout the entire supply chain. Producers and processors must ensure that the material flows demonstrably do not come into contact. Unlike IP, however, palm oil from several certified plantations can be mixed.
The product flow is checked by independent certification bodies. In this way, manufacturers of end products can ensure that the palm oil traded has been verified for sustainability and controlled along the entire supply chain. Segregated palm oil is particularly relevant when using pure palm oil, because corresponding volumes are available on the market in this option.
Mass balance / Mass Balance
Under the mass balance model (MB), palm oil from certified plantations was previously mixed with conventional, non-certified palm oil in the value chain. The share of certified material was controlled and it was ensured that no more of the end product was labelled as certified than had been introduced from certification before mixing. Certified palm oil is recorded and passed on in the accounts. The mass balance option thus made it possible to declare so-called “more sustainable” material at every stage of the supply chain without having to build additional infrastructure for a parallel supply chain. Because certified and conventional material are not physically separated, MB material could be traded fairly easily within supply chains. That is, however, NO LONGER possible!
Under the new legal requirements, only mixing of EUDR-compliant material is still allowed, i.e. deforestation-free palm oil from various legal and deforestation-free sources, if the geodata of all plots involved can be documented without gaps for the end product and stated in the due diligence statement.
This option is particularly relevant for the use of palm kernel oil and of derivatives. With the entry into force of the European deforestation regulation, however, companies in the EU must ensure that no deforestation has occurred in the physical supply chains for palm (kernel) oil and its fractions.
Independent Smallholder certificates
A special case is so-called I.S. certificates (Independent Smallholder certificates), which are traded in the RSPO. This special form of Book and Claim certificates is produced exclusively by independent smallholders. To date it has been difficult to integrate independent smallholders into global certified commodity flows. The sale of I.S. certificates is therefore the only option for independent smallholders to produce palm oil sustainably and then sell it. FONAP therefore treats I.S. certificates as equal to all other trading options.
What does supply chain certification mean?
Certification of a supply chain to the RSPO supply chain standard certifies uninterrupted monitoring of all stages in the palm oil supply chain: from refining and processing through further processing and transport to distribution and arrival at the consumer.
All actors who legally take possession of RSPO-certified palm oil and physically handle the palm oil are required to certify their supply chain.
In general, a company that wishes to be certified can only use the same trading model as its supplier or switch to a less strict trading route. The raw material input with the lowest certification claim therefore determines the claim of the finished product.
In 2020 the RSPO supply chain standard (RSPO SCC) was revised. At the core of the current standard is, among other things, regular verification of the validity of suppliers’ supply chain certification or of the licence for traders by sites along the supply chain. Furthermore, RSPO members that source their material directly from producers or mills must publish an up-to-date list of certified and non-certified supplying mills online.
More information is available here.
How can certified palm (kernel) oil be sourced?
Certifications in detail
RSPO
The Roundtable on Sustainable Palm Oil (RSPO) was founded in 2004 to counter the negative environmental and social impacts of rapidly growing palm oil production. In a little more than twenty years, RSPO membership has grown from 5 to more than 6,400 (as of August 2026) from across the entire supply chain, and the RSPO has become the most widespread standard in the palm oil sector. Around 16.2 million tonnes of palm oil (grown on 5.3 million hectares) – equivalent to about 20 percent of global production – are certified to this standard. With a holistic view of palm oil cultivation that goes beyond deforestation and legal compliance, RSPO-certified plantations voluntarily do more for nature conservation and human rights than is required by law. Click here to view the current RSPO Impact Report.
The RSPO producer standard (Principles and Criteria) comprises 162 requirements in the areas of environment, social and governance (ESG) that producers must meet and that are reviewed annually. These indicators include:
• Prevention of deforestation: Clearing or conversion of primary forests or ecologically valuable forest areas, such as High Conservation Value (HCV) areas and High Carbon Stock (HCS) forests, is not permitted.
• Ban on the use of fire: “Slash-and-burn” to clear land is not permitted.
• Use and handling of plant protection products: The use of highly hazardous substances is prohibited. In rare exceptional cases and emergencies (e.g. pest or disease outbreaks), exceptions may be granted.
• Protection of peatlands: New plantations on peat soils are prohibited.
• Upholding human rights: The rights and well-being of local communities and indigenous peoples are respected.
• Labour rights: Workers are entitled to housing, catering, wages, collective bargaining, etc.
• as well as many further topics. Click here to view all 162 indicators of the Principles and Criteria standard.
ISCC PLUS
The ISCC (International Sustainability and Carbon Certification) PLUS certification scheme sets strict requirements for environmentally and socially responsible cultivation as well as for the traceability of palm oil. The entire supply chain – from plantation to end product – is controlled and documented to prevent fraud and mixing.
The criteria and principles rest on six central pillars:
1. Protection of habitats: Palm oil must not come from land that was created after January 2008 through clearance of rainforests or the destruction of peatlands and species-rich ecosystems.
2. Environmentally sound management: Soil, water and air must be protected. The use of fertilisers and pesticides is strictly regulated.
3. Social aspects: Companies must ensure safe working conditions, fair wages and appropriate health and safety standards for workers.
4. Human and land rights: Local laws and international human rights must be respected. In particular, traditional land-use rights of indigenous groups must not be violated.
5. Laws and international agreements: Agricultural production must take place in accordance with applicable regional and national laws as well as international agreements. This includes lawful land use and measures against corruption, bribery and conflicts of interest.
6. Management practices: Companies must establish suitable structures and processes that ensure economically stable and responsible operations as well as the continuous improvement of operational practices.
In addition, the voluntary ISCC GHG add-on enables transparent calculation and verification of greenhouse gas emissions along the supply chain.
Learn more: https://iscc-system.org/certification/certification-schemes/iscc-plus/