The Year for Mandatory Certification of Sustainable Goods 2022
Consumer demand for sustainable goods is increasing. 2022 is the year to prove that mandatory certifications like the Malaysian Sustainable Palm Oil (MSPO) scheme is an effective model.
The European Union and the United Kingdom have both proposed legislative measures to reduce deforestation in their imports.
At the centre of their proposals is the ‘due diligence’ of importers to ensure their business does not support deforestation.
‘Due diligence’ suggests the involvement of third-party certification schemes, but critics have warned that third-party certification schemes, in particular voluntary certification schemes, are inadequate to prevent imported deforestation.
As we head into the new year of 2022, the big question is - if voluntary green labels cannot stop the import of commodities that drive deforestation, will national certifications like the Malaysian Sustainable Palm Oil certification perform better? Where should human rights be addressed in a certification scheme?
The international NGO, Forest Peoples Programme (FPP) published an in-depth opinion on the EU’s ambitious initiative to reduce imported deforestation which provides good perspectives from an NGO view of things.
In the case of the Malaysian Sustainable Palm Oil certification scheme, its role in addressing the issues raised by FPP can be seen as a critical one where the MSPO respects Free, Prior and Informed Consent (FPIC) and provides transparency through MSPO-Trace.
As for FPP’s concern on verification and enforcement, these should not be the sole responsibility of the EU member states but through partnerships with producing countries.
It is worth repeating here that Malaysian palm oil as certified under the MSPO is more than capable of meeting any challenges of illegal deforestation or legal deforestation.
9 UNSDG Goals Reinforced by MSPO
Adopted in 2015 by all United Nations Member States, the United Nations Sustainable Development Goals (UNSDG) has listed 17 goals to work towards the 2030 Agenda for Sustainable Development.
Overall, the biggest challenge for the MSPO is that as a global pioneer in national certifications, there are no precedents to gauge its efficiency against. With over 90% of Malaysia’s palm oil operations certified under the MSPO, no other commodity or its producing country can claim such a lofty achievement.
That should not be construed as the final achievement of the MSPO. As Malaysia looks forward to the acceptance of the MSPO as a credible certification scheme for the global market, it has sought to continually improve upon its sustainability credentials. After all, sustainability is defined so differently depending on who you ask.
One of the key issues to be addressed in 2022 will be that of labour rights which has been highlighted by the actions of the US Customs and Border Protection against Malaysian palm oil companies amongst others. This is a complex issue that was covered by Reuters recently. As one of the more developed countries in Southeast Asia, Malaysia has long been favoured by migrant workers from neighbouring countries in search of a better livelihood.
Reports like this one from Bangladesh or this one from Nepal show that migrant remittances to their home countries make a dynamic contribution to the GDP of these countries. According to the Coordinating Minister for Economic Affairs Airlangga Hartarto of Indonesia, Indonesia's migrant workers (PMI) have contributed to the national economy with an annual remittance of US$9.8 billion per year from Saudi Arabia, Malaysia, and Taiwan.
But as long as there are allegations of labour abuse, any credible certification scheme must include labour rights as a human right as opined by US Assistant Secretary of State for Democracy, Human Rights and Labor, Robert Destro.
To address the issue of workers’ rights as a human right, multiple actions have been put in place in the Malaysian palm oil industry to improve the welfare of migrant workers in recent months.
These include a partnership between the World Bank and Bank Negara Malaysia to reduce the cost of remittances to put more money into the pockets of the beneficiaries of those remittances. Through this project, Malaysia has become one of the first countries to achieve the Sustainable Development Goal of reducing remittance costs to 3 percent by 2030.
The agreement between Indonesia and Malaysia on a one-channel system will remove questionable hiring practices and protect Indonesian workers in Malaysia.
To further ensure worker protection, Malaysia has taken a major step towards eliminating forced labour with the launch of a first-ever National Action Plan to combat the practice. This was announced by the International Labour Organization (ILO) whose press statement can be read here.
As part of industry commitment, the Malaysian Palm Oil Association (MPOA) has launched a Responsible Employment Charter which affirms the commitment of its members to respect labour rights, adopt responsible recruitment practices and provide good working and living conditions for workers.
The Charter is based on international guidelines and framework which includes the United Nations (UN) Guiding Principles on Business and Human Rights Framework, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work as well as the guidelines from the International Recruitment Integrity System (IRIS) which was developed by the UN International Organisation for Migration.
To round off the recent developments to protect migrant workers in Malaysia, the US Department of Labor has awarded a grant to Social Accountability International to combat forced and child labour in the garment and palm oil industries of Malaysia.
There is no doubt that with the support and participation of bodies including the World Bank, the ILO, and even the US Department of Labor, that the allegations of labour abuse in Malaysia’s palm oil industries can be addressed effectively.
This will serve to not only address the concerns of the US but that of the EU where Executive Vice-President and Commissioner for Trade Valdis Dombrovskis has said:
“There is no room in the world for forced labour. The Commission is committed to wiping this blight out as part of our broader work to defend human rights.”
While the EU Commissioner urges caution in dealing with human rights issues, that caution would not be needed when national certification schemes like the MSPO exist. As a pioneer in the mandatory certification of sustainable goods, 2022 is the year when national certifications will be substantiated as truly sustainable for human rights and nature.
Here’s wishing you all a Happy and Healthy 2022!
