Breach of RSPO Code of Conduct Articles 2.2 & 3.7

A formal letter was sent to PT Dutapalma Nusantara stating the outcome of the RSPO Grievance Panel meeting on March 30th, 2011 that addressed complaints that have been brought to RSPO’s attention. 

The RSPO Grievance Panel has concluded that PT Dutapalma Nusantara has breached the following membership mandates and obligations:  

  1. RSPO Code of Conduct 2.2 under Transparency, Reporting and Claims: Members are required to report annually on progress against this Code.
  2. RSPO Code of Conduct 3.7 under Implementation: Existing RSPO members are required to specify steps taken last year, specific steps intended for the coming year and for the long term in the form of a time-bound plan of working towards producing or buying certified sustainable palm oil, applying any or a combination of the RSPO approved supply chain mechanisms and relevant to the scope of the member's operations (e.g. specifying volume or percentage targets, or a commitment to above average proportions of trade or investment volumes in comparison to production or demand trends.

The grievance panel has come up with the following decision that has subsequently been endorsed by the Executive Board on April 1, 2011. In accordance with the RSPO grievance procedure: 

  1. The RSPO membership of PT Dutapalma Nusantara is suspended with immediate effect.
  2. PT Dutapalma Nusantara will be given a period of 60 days from April 21, 2011 to provide as required by Article 3.7 of the Code of Conduct, a complete RSPO Annual Communication of Progress, including time bound plans towards 100% RSPO certification.

Failure to deliver the required proposal within this 60 day period may result in binding consequences within Article 5.2 of the Code of Conduct which explicitly states: “Breaches of this Code, or the by-laws and statutes of the RSPO may lead to exclusion from the organization.” 

RSPO trusts that PT Dutapalma Nusantara will treat this matter with the utmost care and urgency in order to reflect that the organization supports, promotes and works towards the production, procurement and use of Sustainable Palm Oil.  

Progress update – Suspension has been lifted as of 28 Sept 2011.

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