SUPPLY CHAIN SYSTEMS: WHAT IT MEANS
Palm oil or palm oil derivatives certified by the RSPO can be purchased through four supply chain systems. Each of these systems comes with its own advantages, requirements and pre-approved consumer claims. These four systems ensure that market claims about the production and use of sustainable palm oil remain transparent and accurate.
1) “IDENTITY PRESERVED (IP)”:
Means that palm oil grown sustainably is strictly segregated from non-sustainable oil along the entire supply chain. The sustainable palm oil is at no time mixed with non-sustainable palm oil; the produce is 100 per cent traceable back to one palm oil mill.
Similar to ‘IP’, this means that certified palm oil is kept apart throughout the supply chain; but for a product to be certified ‘Segregated’ it can come from a mixture of several certified sustainable palm oil mills – as opposed to just one source for ‘IP’. It cannot be traced back to its original plantation/mill.
3) "MASS BALANCE (MB)":
Means that certified palm oil is mixed in with conventional palm oil but monitored administratively so that claimed volumes are matched.
4) "BOOK & CLAIM (GREENPALM)":
A trade-able certificate is issued for the producers who are certified, and this is then sold. This means that the sustainable palm oil (the physical product), and the sustainability certificates are traded separately and that there is no direct transparency or traceability.
Source: Stephenson Personal Care