SPOTT release new publication on disclosure of smallholder information in supply chains

SPOTT (Sustainability Policy Transparency Toolkit), an initiative developed by ZSL, has published a new report on how companies incorporate smallholders into their commitment; disclose information on the smallholders they source from; and provide details on the levels of support they provide to smallholders in their supply chains.

The report,  reviewed by SHARP partner Proforest, is based on data collected in 2018, and finds that there is a lack of disclosure by palm oil producers and traders on both the extent and locations of smallholders within their supply chain. 71% of the assessed companies with smallholders reported a planted area for their scheme smallholders, whilst only 15% published maps of their scheme smallholder locations. Only five of 58 companies assessed on SPOTT have certified > 75% of their scheme smallholders. The proportion of companies assessed reporting on their independent smallholder support programmes or explicitly extended their sustainability commitments to cover all their palm oil sourcing is less than 50%.

With smallholder farmers producing around 40% of the world’s palm oil, it is crucial that they are incorporated into company sourcing strategies so that companies can effectively implement and verify compliance with their responsible sourcing commitments, as well as ensure that adequate technical and financial support is given to help smallholders produce palm oil sustainably.

This publication also provides recommendations on how companies can better support and integrate smallholders into their supply chains as a means to transform the palm oil sector.

Find out more and download the report on the SPOTT website.