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RSPO certification: the four supply chain models explained

The Roundtable on Sustainable Palm Oil (RSPO) is the primary international certification standard for sustainable palm oil. RSPO certification operates at two levels: (1) grower/mill certification confirming the palm oil comes from farms meeting RSPO's Principles and Criteria (P&C) on land rights, environmental protection, labour standards, and traceability; and (2) supply chain certification (SCC) at each link in the supply chain (processor, trader, refiner, buyer) confirming the certified palm oil is appropriately tracked or segregated.

The RSPO offers four supply chain models, each representing a different level of physical traceability and segregation:

1. Identity Preserved (IP): The highest traceability standard — certified palm oil from a single certified mill/plantation is kept physically separate and uniquely identifiable throughout the entire supply chain to the final buyer. IP certification guarantees the specific mill of origin. Most costly to implement and limited in scale — typically relevant for premium brands requiring single-origin sustainability narrative. Very small proportion of RSPO total volume.

RSPO and EUDR: how EU deforestation regulation affects palm oil sourcing

From December 2024 (enforcement date subject to updates), the EU Deforestation Regulation (EUDR — Regulation 2023/1115) requires operators placing palm oil (and products containing palm oil) on the EU market to demonstrate that the product was not produced on land deforested after 31 December 2020, and complies with the relevant legislation of the country of production.

Key EUDR requirements for palm oil buyers supplying the EU:

Geolocation data: Operators must provide GPS coordinates (polygon mapping) of all plots of land where the palm oil was harvested — down to farm level.
Due diligence statement: Operators must file a due diligence statement through the EU Information System before placing the product on the EU market.
Traceability to plot of origin: The supply chain must be traceable back to the specific farm/plot level — this requires mill-level traceability at minimum and ideally plantation-level geolocation.

RSPO and EUDR interaction: RSPO certification (particularly SG and IP tiers) provides a framework for supply chain traceability but does not on its own satisfy EUDR requirements. EUDR requires specific geolocation data that RSPO may or may not capture depending on the tier. Buyers should verify that RSPO suppliers are also working towards EUDR-compliant geolocation data collection.

Country risk under EUDR: EUDR applies a country risk classification. Suppliers from countries classified as 'high risk' for deforestation face higher due diligence requirements. Buyers sourcing from certified Malaysian or Indonesian suppliers should verify their suppliers' EUDR readiness and whether they have mill-to-plot geolocation data.

Practical guidance for buyers: Request from your palm oil supplier: (1) current RSPO supply chain certificate; (2) RSPO certificate scope (which supply chain model and which products); (3) EUDR geolocation data availability and format; (4) percentage of supply from certified mills (for MB models, the certified volume ratio matters); (5) EUDR due diligence statement capability for each shipment.

Frequently asked questions

Do I need RSPO certification if I buy palm oil for manufacturing in Asia?

RSPO certification requirements depend on your downstream market and buyer contractual requirements, not on where you manufacture. If your finished product is sold in EU or UK markets, your supply chain may fall under EUDR or retailer sustainability policies that require RSPO certified palm oil regardless of where manufacturing occurs. Many global food manufacturers (Unilever, Nestlé, Mondelēz, etc.) have public commitments to 100% RSPO certified palm oil in their supply chains globally — manufacturing location does not exempt them. Check your customers' sustainability policies and the final market regulatory requirements to determine whether RSPO certification is required in your supply chain.

What is the RSPO premium (RTRS certificate price) currently?

RSPO premiums are set by the market through negotiated contracts between certified sellers and buyers. Segregated RSPO palm oil typically commands a premium of US$20–60 per MT over standard CPO or RBD Palm Olein, depending on supply availability, destination market, and grade. Mass Balance premiums are lower — typically US$5–20 per MT. Book and Claim credits trade separately on the RSPO PalmTrace platform at much lower per-MT cost (historically US$0.20–2.00 per credit). Premiums fluctuate — check current RSPO PalmTrace market data for current credit prices.

Can RSPO certification replace EUDR compliance?

No — RSPO certification and EUDR compliance are separate requirements that address overlapping but distinct concerns. RSPO addresses a broad range of sustainability criteria (environmental, social, labour) through audited standards. EUDR specifically addresses deforestation and legality, requiring specific geolocation data and traceability to plot of origin that RSPO's existing standards do not uniformly capture across all certification tiers and regions. A supplier can be RSPO-certified but not yet EUDR-compliant (due to incomplete plot-level geolocation data). Buyers supplying the EU market must separately verify EUDR compliance in addition to, not instead of, RSPO certification.

Proveedores de aceite de palma RSPO — Suministro Sostenible

RSPO certification: the four supply chain models explained

Proveedores de aceite de palma RSPO — Suministro Sostenible

RSPO certification: the four supply chain models explained

RSPO and EUDR: how EU deforestation regulation affects palm oil sourcing

Frequently asked questions

Do I need RSPO certification if I buy palm oil for manufacturing in Asia?

What is the RSPO premium (RTRS certificate price) currently?

Can RSPO certification replace EUDR compliance?

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