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RSPO

THEORY OF CHANGE
Table of
Contents

Introduction...................................................................... 2
What is the Theory of Change?....................................... 3
Working Towards Change................................................ 4
RSPO Today................................................................... 4
RSPO in the Future....................................................... 5
Key Assumptions.......................................................... 6
How to Read the Theory of Change................................ 7
A Narrative of Change...................................................... 10
The Destination............................................................ 10
Vision....................................................................... 10
Goals........................................................................ 10
Impacts.................................................................... 11
Long-Term Outcomes.............................................. 12
The Roles of RSPO in Driving Change...................... 13
How Change Happens.................................................. 14
Process of Change................................................... 14
Inputs....................................................................... 15
Causal Chains........................................................... 16
Document Title : RSPO Theory of Change
Supporting Elements.................................................... 32
Document Code : RSPO-POL-P03-001 V1.0 ENG
Guiding Principles.................................................... 32
Scope : International
Annex 1: Chronology of Theory of Change
Document Type : Policy
Development................................................... 33
Approval /
Endorsement Date : Endorsed by the Board of Governors on 18 September 2017
Annex 2: RSPO’s Roadmap for Sustainable Palm Oil 34

Contact : rspo@rspo.org Annex 3: Unpacking the Vision...................................... 36


Annex 4: How the Theory of Change Links
to the RSPO Principles & Criteria................... 37
Cover photo
© Jonathan Perugia

Table of Contents 1
WHAT IS THE
INTRODUCTION
THEORY OF CHANGE?

The Roundtable on Sustainable Palm Oil (RSPO) is The Theory of Change (ToC), and to define the pathways by common core indicators
through the infographic and which RSPO can achieve these and the UN Sustainable
a not-for-profit, multi-stakeholder organisation that supporting narrative describes outcomes through mobilising Development Goals (SDGs).
works to advance the production and use of sustainable the impacts that RSPO wishes stakeholders and resources. Through monitoring and
to achieve, as well as the key evaluation, RSPO will be able to
palm oil. RSPO’s vision is to transform markets to make causal chains that can achieve The ToC is presented as a assess progress, performance,
sustainable palm oil the norm. them. These causal chains¹ graphical version on pages 8-9 and impact, as well as
capture the basic cause and for communicating to a wider provide the evidence and
effect logic of “if we do this, audience. A more technical insight to validate or negate
RSPO has improved its Monitoring & Evaluation then the result is this”, along and detailed version of the assumptions.
with assumptions about the key causal chains is used for
(M&E) System through the Theory of Change to better underlying logic of change. operationalising the ToC and is The ToC and M&E System will
articulate, manage, and measure progress towards this An important feature of the not part of this document. help inform strategy and drive
ToC is that it requires strategic innovation and continuous
vision, provide insights into its effectiveness, and assess thinking as to how RSPO The ToC provides a guiding improvement through learning
expects strategies and activities framework for the Monitoring and adaptive management.
its long-term impact. to lead to expected outputs and Evaluation (M&E) System
and outcomes, and how to provide insight into the The ToC also provides a
these outcomes contribute to effectiveness of strategies clear guiding framework
impacts. and the supporting activities. for the Principles & Criteria
Based on the ToC and (P&C) revision process and
In 2016, RSPO commenced the causal chains, indicators are for monitoring, evaluating,
work of developing the ToC developed to monitor and and reporting the effects of
with stakeholder input (see evaluate progress from direct the standard and assurance
Annex 1). The actual process of outputs, to outcomes and system. This allows for
developing a ToC is as critical as impacts on critical pathways, innovation and testing to
the final ToC “product” itself, as well as to develop key adjust the P&C and assurance
in order to build a consensus evaluation questions. The strategy and activities to
on the priority outcomes and indicators also use reference deliver key outcomes more
impacts RSPO seeks to achieve, points such as the ISEAL effectively over time.

1 Causal chains are sometimes referred to as causal pathways, impact pathways or results chains.

2 Introduction What is the theory of change? 3


WORKING TOWARDS
CHANGE

RSPO TODAY RSPO IN


What stakeholders say • Wildlife corridors are flourishing, as are the landscapes
THE FUTURE and ecosystems in palm producing areas, including no
RSPO has successfully brought • Stakeholders are raising issues that require leadership, e.g. conversion of High Conservation Value/High Carbon Stock
stakeholders together to seek deforestation, human rights (HCV/HCS) or peatland areas
solutions to the challenges of • Confidence in the quality of certification is being We see a future where the • Verification methods (including but not limited to
the palm oil sector, creating questioned and new verification methods are needed in standard practice is that palm certification) and assurance mechanisms distinguish
a platform to transform how addition to the current certification model oil is cultivated, traded and sold between good and bad practice
palm oil is produced, traded, • The system has deliberately focused on large growers according to good sustainability
• Conflicts between communities and companies are a thing
and sold. RSPO has seen in Indonesia and Malaysia, but is not right-sized for principles, realising benefits
of the past—they work together to determine shared value
impressive growth and can smallholders or other countries to meaningfully engage and for all stakeholders through
from palm oil production
claim that approximately succeed improved conservation,
20 per cent of global palm poverty reduction, sustainable • Those that work in palm oil have their rights respected and
• There is limited government engagement in key producing livelihoods, valuing make a fair living
oil production is certified in
countries, which is a missed opportunity as a lever for participation of communities, • Smallholders are producing palm oil in a sustainable
accordance with its P&C, set
enabling policies (Green Growth) and creating legal ensuring fair labour practices
forth in its global sustainable way—implementing good practices, accessing markets
frameworks for smallholders and economic viability of
palm oil standard. Europe has that recognise their efforts, and are supported by a viable
moved significantly towards • There is a lack of balancing supply and market to ensure businesses. economic model of production and trade that provides
its 2020 targets of 100 per uptake of certified sustainable palm oil, as uptake is a key them security and livelihoods
cent certified palm oil. To stimulus for grower certification
• Governments have smart policies that provide appropriate
reach scale and sustainability • There are unfulfilled commitments by members across regulation supported by enforcement that creates a level
(the RSPO vision), the market various segments of the membership playing field, enabling the market to adopt good practices
needs to be more inclusive, • There is little traction in Asian consumption markets to
competitive, innovative, • Modern tools and technologies enable effectiveness, scale,
stimulate uptake of sustainable palm oil practices effective monitoring, and business analytics in performance
transparent and resilient,
proactively responding to risks • There is an emergence of competing solutions, including and impact
and changes to transform as alternative certifications, and both buyers and governments • All major consumption markets are sourcing significant
a sector. While the strategies are increasingly challenging the relevance of RSPO volumes of sustainable palm oil
used to date have worked to • There is limited evidence of the value proposition and • RSPO is recognised and respected as the thought leader in
create a critical mass, “business perceived or real cost/benefits of certification sustainable palm oil production
as usual” is no longer a viable
approach if RSPO is to remain • Members come together via the platform to collaborate
relevant, let alone grow. and address challenges, continuous improvement and
innovation
• Companies recognise their obligations as corporate citizens
as well as the business case for sustainable production and
meaningful community engagement

4 Working towards change Working towards change 5


HOW TO READ THE
KEY
ASSUMPTIONS
• RSPO Principles & Criteria (P&C) are the blueprint for
socially responsible, economically, and environmentally
sustainable palm oil production, as agreed upon through a
THEORY OF CHANGE
multi-stakeholder process
• Some form of assurance to verify the effective
implementation of the P&C is necessary but may take
different forms — from community-based monitoring to
independent third-party certification, depending on market
and risk factors
• There are clear and demonstrable benefits for growers On the far right is the destination or Vision.
that apply the P&C and for buyers that source sustainably
produced palm oil; however, market commitment and The ToC map outlines the basic cause and effect logic, which starts at the top left with the guiding
uptake, and a financial community that commits through principles and RSPO roles serving as the foundation.
policies and incentives to sustainable production are
essential for P&C adoption in the near to medium term The change strategy runs through the lines. Moving up in the process, over time, the activity and
• RSPO needs to be bigger and go broader in terms of its investment Strategies are designed to deliver on the RSPO vision.
reach:
-- RSPO needs to provide solutions for upgrading of Outputs are the shorter-term direct results of activities and investments that then link to
smallholders that make it economically viable for Intermediate Outcomes.
them to adopt the P&C
-- RSPO needs market commitments and uptake in Over time and as more actors are involved, there are Long-Term Outcomes that are multiplied and
emerging markets that consume large volumes of supported by efforts leading to ultimate Impacts and Goals.
palm oil
A comprehensive version of the ToC is shown in the next page. However, a more simplified version
• RSPO no longer work in isolation: it needs to work with of the ToC can be referred to in Annex 22.
governments and other actors (including national schemes/
standards/initiatives) to address structural barriers for
smallholders and ensure consistent enforcement to enable
change at scale IMPACTS
• Market intervention (e.g. supply and demand matching)
is needed in the near to medium term as well as
accountability for buyers to fulfil their commitments and
ensure the uptake of sustainably produced palm oil

GOALS

SUSTAINABLE PALM
OIL IS THE NORM

2 Both versions of the ToC can be downloaded from http://www.rspo.org/theoryofchange

6 Working towards change How to read the theory of change 7


THEORY OF CHANGE
RSPO'S ROADMAP FOR SUSTAINABLE PALM OIL
GUIDING PRINCIPLES RESEARCH & EVIDENCE
VISION
RELEVANCY TRUST
Continuous Alignment SUSTAINABLE PALM
improvement
Innovation
Credibility OIL IS THE NORM
Inclusiveness

COMMITMENT, COLLABORATION MORE MARKETS, NEW MORE GROWERS, INTERMEDIATE


& ACCOUNTABILITY
ACTORS ENGAGED, HECTARES AND OUTCOMES GOALS
INSTITUTIONAL VOLUMES
SUPPORT
Reduced Consistent Resilient & Healthy Landscapes & Communities
ROLES pollution accountability Green & Inclusive Growth
& GHG & enforcement
Effective emissions
standards & Incentives
implementation Ecosystems
Increased systems better Supportive
Engagement commitments, protected policies IMPACTS
Sustainability Standards
leadership system platform markets Implemented
& uptake BMPs Resource use Increased
minimised investments
Increased Increased Productivity
membership knowledge Sustainable vs
optimised
& capacity unsustainable PEOPLE PROSPERITY PLANET
Improved distinguished
MOBILISE value chain Recognition &
Improved risk
management Sustainable livelihoods Competitive, Conserved, protected
traceability harmonisation Global & poverty reduction resilient & & enhanced
Safe & decent availability of Human rights sustainable ecosystems that
Platform Smallholder work sustainable
STRATEGIES & dialogues participation PO & PKO protected, respected sector provide for the
Human rights & remedied next generation
Increased Mobilised upheld
promotion growers
& awareness & actors
Innovating Generating
standards & demand, LONG-TERM
benchmarks commitments OUTCOMES
& uptake BUSINESS CASE TRUST

Agency & voice Biodiversity protected


Credible certification,
verification & Inclusive access Ecosystem
grievance Matching supply to benefits services enhanced
& demand Market for
OUTPUTS Sustainable
Palm Oil
Communities and
companies in harmony
Land degradation
neutrality
Participatory
approach RSPO
Sustainable & Sustainable
for smallholders Engaging the resilient businesses land use planning
supporting ACT RSPO & other
sector Level playing field
actors drive
Jurisdictional outcomes and
approaches impacts

TRANSFORM
rspo.org

8 9
A NARRATIVE Impacts

OF CHANGE Impacts are the positive and negative long-term effects on planet, people, markets, and systems
resulting from strategies and interventions.

These may be direct or indirect effects, and intended or unintended.

Note: Impacts and Outcomes are deliberately introduced first because these serve as the RSPO’s
compass. If these impacts and outcomes are incorrect, then the rest of the change theory (strategies,
Sustainable The palm oil sector protects and improves rural
inputs, and outputs) would need to be reconsidered. livelihoods and livelihoods, equality3, and social well-being4.
PEOPLE poverty reduction Human rights are respected. People participate
THE DESTINATION in processes that affect them with shared access
Human rights and benefits. Everyone engaged in palm oil
protected, respected production has equal opportunities to fulfil their
and remedied potential in work and community, with dignity
SUSTAINABLE PALM OIL and equality, and in a healthy working and living
IS THE NORM environment.

Resilient & Healthy Landscapes & Communities Competitive, resilient, Sustainable palm oil reaches its full potential in
Green & Inclusive Growth and sustainable sector terms of contributing to innovative economies
and accelerated prosperity, and as a model
for green and inclusive growth for emerging
PROSPERITY
economies. A sustainable, competitive, and
resilient palm oil sector ensures long-term
viability of the entire supply chain and shared
benefits for the private sector, as well as the
PEOPLE PROSPERITY PLANET livelihoods of the people and communities where
Sustainable livelihoods and Competitive, resilient, and Conserved, protected, and enhanced palm oil is grown.
poverty reduction sustainable sector ecosystems that provide for the next
Human rights protected, generation
respected & remedied

Conserved, protected, Ecosystems and their goods and services are


Vision RSPO will transform markets to make sustainable palm oil the
norm.
and enhanced conserved, protected, enhanced, and made
ecosystems that resilient through sustainable consumption,
PLANET provide for the next production, and management of natural
Resilient and healthy landscapes and communities generation resources [sustainably managing forests,
Protection and restoration of resources, and people have the combating desertification, halting and reversing
means to provide for themselves and advocate for their rights. land degradation, halting biodiversity loss (SDG
Goals 15)]. Climate change is addressed through
Green and inclusive growth continuous GHG reductions, and air and water
pollution are controlled.
Sustainable palm oil is a driver for economic growth and
development at the local, regional, and national level, ensuring
that natural assets continue to provide the resources and
environmental services on which well-being relies. Benefits 3 Equality means equal opportunity, equal access and equal results.
accrue to all involved. 4 SDG 2.4.1 productive and sustainable agriculture as defined by FAO.

10 A narrative of change A narrative of change 11


Long-Term Outcomes THE ROLES OF RSPO IN DRIVING CHANGE

ECOSYSTEM LAND AGENCY


BIODIVERSITY SERVICES DEGRADATION AND
PROTECTED ENHANCED NEUTRALITY VOICE

COMMUNITIES LEVEL
SUSTAINABLE INCLUSIVE SUSTAINABLE
AND PLAYING
ACCESS TO LAND USE
COMPANIES IN AND RESILIENT
BENEFITS PLANNING FIELD
HARMONY BUSINESSES

BIODIVERSITY PROTECTED considering land productivity, INCLUSIVE ACCESS TO


Biodiversity, or the variety land cover and change, and BENEFITS
of life, forms the foundation carbon stocks. Economic, social, and
of the health of ecosystem environmental value accrues
services and allows for AGENCY AND VOICE to all involved in the palm oil
ecosystems to adjust to All rights holders (e.g. workers, sector.
disturbances (resiliency). communities, women,
Conservation of biodiversity migrants, indigenous people, SUSTAINABLE LAND USE
includes the preservation vulnerable populations, etc.) PLANNING
of rare, threatened, and can activate, access, and National/subnational practices
endangered species, and claim their rights through and technologies integrate
preservation of HCV areas. their engagement in palm oil the management of land, RSPO IS A RSPO IS AN RSPO IS A LEADER IN
production and trade. water, biodiversity, and other STANDARDS SYSTEM ENGAGEMENT PLATFORM SECTOR SUSTAINABILITY
ECOSYSTEM SERVICES environmental resources to
ENHANCED COMMUNITIES AND meet human needs while In its Standards System role, This role reinforces RSPO as RSPO assumes the role of
Essential ecosystem services COMPANIES IN HARMONY ensuring the long-term RSPO is responsible for leading the convener of civil society, leading sector transformation
from natural and managed There is dissolution of disputes sustainability of ecosystem the multi-stakeholder activities government, business, and through a shared vision,
ecosystems are preserved, and grievances between services and a competitive, involved in the effective industry, who come together coordination, thought
contributing to planet and communities, palm oil growers, resilient palm oil sector. development, implementation, to tackle the challenging leadership, and acting as a
people well-being. These and other actors in the palm and verification of standards issues, innovate, develop, catalyst for change. RSPO
include clean air and water, oil sector, which are replaced LEVEL PLAYING FIELD to drive impact. This is not and invest in sector solutions. leads the effort to impact
food, fuel, and culture. by shared understanding, Consistent, unbiased, and only setting the standard, but RSPO in this role helps scale and influence the broader
dialogue, and amicable and equitable policies and systems supporting the standard’s sector solutions through ecosystem, mobilise actors
LAND DEGRADATION peaceful resolution. for all actors provide clarity of credible implementation— collective action on critical and resources, and set the
NEUTRALITY the rules and define the spirit as both a facilitator and issues and local priorities global agenda for sustainable
A state whereby the SUSTAINABLE AND RESILIENT of participation. A level playing provider of tools and services through facilitating bilateral palm oil with private actors,
amount and quality of land BUSINESSES field requires consistent to drive sustainability of and multilateral dialogue civil society, and governments.
resources necessary to Businesses of all sizes and application of rules and their the production, processing, actions. It functions as a Sustainable palm oil sets
support ecosystem functions scales can compete in the long- enforcement. This creates a trading, and use of palm oil, platform for testing, thought the example for sustainable
and services, and enhance term and weather economic situation of fair competition, including capacity building, leadership, and innovation, development that becomes a
food security remain stable shocks. access to markets and finance, assurance, labelling, data and has the ability to replicate model for commodities and
or increase (SDG 15.3.1), and opportunity for all.   collection, monitoring and and disseminate learning regions pursuing inclusive and
evaluation, and corrective through peers as well as create green growth.
Pre-condition for Long-Term Outcomes and Impact: action where needed. social capital. The platform
is the “go-to” for sustainable
A Market for Sustainable Palm Oil
palm oil knowledge, tools, and
Greater volumes of sustainable palm oil from a variety of production setups are moving into more guidance.
markets via more companies⁵. This requires growers of all sizes across the globe to participate with
greater volumes of sustainably produced palm oil, selling into more markets, with more actors buying,
investing in, and using sustainable palm oil.
5 Sustainable palm oil as defined by the RSPO P&C whether or not certified – recognising that it may be benchmarked or verified through other means
in the future.

12 A narrative of change A narrative of change 13


HOW CHANGE HAPPENS

Process of Change Inputs


This is the backbone of the RSPO change theory, which is fundamental to triggering the
transformation of the palm oil sector. The change is characterised by a progression of Mobilise, Act,
Note: The Secretariat (along with specific working groups) will have more specific details for inputs they
and Transform.
are using to drive outputs for each of the respective strategies being used to generate change. This is the
generic RSPO-wide list of inputs; the RSPO toolkit.

RSPO brings together stakeholders and supporters through various


MOBILISE mechanisms (roundtables, working groups, task forces, governance
Inputs are the resources used in activities and investments that RSPO (in cooperation with its
members and other stakeholders) use to drive its strategies into implementation to produce results
structures, etc.) around a common vision, opportunities to engage, and (outputs). These include, but are not limited to:
clear strategies for change. This mobilisation also extends to investments
and resources to support implementation.

Underpinning this mobilisation are Commitment, Collaboration, and


Accountability.

Tools
COMMITMENT COLLABORATION ACCOUNTABILITY

All the actors commit Recognising the need Commitments are to be Outreach Policies
to their contribution to to work together and fulfilled with a shared
transforming markets. making that happen: responsibility for impact.
transformation of markets The expectation of
can’t happen without partners and all members
collaboration. is that they actively
participate and work Communications Systems
together to transform the
markets and that there
is a mutual and agreed
accountability for results.

Engagements Capacity
building
RSPO and all of the mobilised actors collaborate and implement the
strategies and supporting activities. Actions include implementation of
the P&C, verification/assurance, providing support, seeking solutions,
ACT learning, and measuring progress. As evidence and results become
available, these are disseminated, leading to adaptive management
and scale. Multi-stakeholder Technical
participation and assistance
processes
Behaviour of actors shifts, and outputs and outcomes become tangible
and measurable. As a result, markets and the actors that influence those
TRANSFORM markets behave differently, with the objective of making sustainable palm Partnerships Funds
oil the norm.

14 A narrative of change A narrative of change 15


Causal Chains INNOVATION IN STANDARDS AND BENCHMARKS
The principles (goals), necessary criteria, and practices that operationalise sustainability of
palm oil production as documented in the RSPO P&C, were defined and developed through a
multi-stakeholder approach. When applied, the P&C drive positive environmental, social, and
Causal chains (also known as impact pathways because of multiple factors, influences, and economic outcomes. Interoperability with other systems is created through benchmarking.
or results chains) make explicit how RSPO and interdependencies, including those outside of
its members and partners bring about change the control of RSPO. An overview of the key
by linking strategies to expected outputs, which causal chains in the RSPO ToC are outlined Current state The RSPO standard serves as an important cornerstone of the
lead to intermediate and longer-term outcomes, below. Please keep in mind that while presented movement in transforming markets. However, new tools and
and ultimately impacts. There is not a one- separately, they are all necessary pieces of the models are needed to meet stakeholders where they are in
to-one relationship, as change comes about puzzle in making sustainable palm oil the norm. their sustainability journey.

Goal Inclusive, accessible, and credible tools and models that drive
performance and deliver impact.

Credible
certification, Key • Codify social, environmental, and agronomics minimum
verification, and approaches practices, good practices, and best practice in the P&C
grievance that are applicable to different types of production in
Innovation in Participatory diverse landscapes across the globe
standards and approach for • Benchmarking and harmonisation with the standards
benchmarks smallholders and principles of other organisations and institutions that
have similar goals to create synergies, efficiencies, and
accessibility
• Leverage learning and expertise to ensure that the
standards and benchmarks are responsive to current and
emerging issues
Jurisdictional • Ensure processes for national and local adaption
Engagement of • Ensure that standards drive continuous improvement
approaches for
supporting sector
collective impact

Key • Stakeholders must be willing to accept different levels of


assumptions requirements
• Stakeholders must be willing to focus on performance and
impact of the standard rather than specific agendas
Matching Demand generation, • Government mandatory programmes (e.g. national
supply and commitments, schemes/standards/initiatives) harmonised, with
demand and uptake interoperability as an opportunity for RSPO

Outputs Trainings, technical assistance, access to inputs lead to:


• Consistent and streamlined standards
• Recognition/harmonisation with other systems
The following descriptions do not attempt to cover every possible cause and effect, but instead
• Standards that work for smallholders
focus on the key pathways to impacts.
• Increased knowledge and capacity on social,
environmental, and agronomic production and processing
• Effective production and management systems
• Implemented Best Management Practices (BMPs)

16 A narrative of change A narrative of change 17


CREDIBLE CERTIFICATION, VERIFICATION AND GRIEVANCE
Intermediate Effective implementation and more growers’ uptake of the
outcomes Assurance that builds stakeholder confidence and trust that
P&C leads to:
sustainability requirements are met
• Resource use minimisation (soil, water, energy), input use
reduction, and cost reduction Current state The RSPO Certification and Assurance system is seen as
• Reduced pollution (water, air, greenhouse gases) inflexible, and is not sufficiently or consistently identifying
• Improved risk management, management plans, and all problem areas. While increased rigour is expected, at
assessments the same time, costs and bureaucracy have to be scaled
• Ecosystem better protected back, and the system has to become more user-friendly and
• Optimised productivity user-centric, particularly, but not only, to enable smallholder
• Human rights upheld uptake. Up to now, certification and assurance have
• Safe and decent work for all workers functioned as a “police and control mechanism,” yet offer
untapped opportunities for system improvement and learning.
Linkages to • Agency and voice – stakeholder engagement in
long-term the development and implementation of the P&C, Goal A trusted and credible assurance system, which is fit for the
outcomes participation, and decision making in processes affecting purpose, transparent, and consistent, will drive support and
them through tools (Free Prior and Informed Consent increase uptake of sustainability requirements as well as serve
(FPIC), Social and Environmental Impact Assessment as a channel for system improvement and learning.
(SEIA), etc.) and mechanisms (complaints and appeals)
• Inclusive access to benefits – equitable opportunities, Key • Quality management of assurance and oversight processes
safeguarding social and community interests approaches including continuous improvement through data analytics
• Sustainable land use planning – jurisdiction-wide planning • Effective grievance mechanisms providing fair resolution
including trade-offs and compensation • Streamlining of the standard for consistency and
• Communities and companies in harmony – multi- effectiveness
stakeholder platform to achieve a balance between • Applying new verification methods that assure users of
multiple and sometimes conflicting objectives. Effective specified performance
compensation mechanisms
• Ecosystem services enhanced and biodiversity protected
• Land degradation neutrality – increased yield through best Key • Stakeholders and other parties engage within RSPO
management practices (BMPs) and protected areas assumptions certification processes (seeking and supporting solutions
• Level playing field – all actors are treated fairly by an inside the system, such as interpretation platforms,
objective certification system or other verification assurance and grievance processes), instead of “outside
methods and via effective grievance processes and resolutions” (i.e. media campaigns)
remedies • Certification and accreditation bodies are willing to invest
in learning and employing new approaches
• While we aim at 100 per cent compliance at all times, it
Links to other • Participatory approach for smallholders – streamlined P&C is accepted that voluntary certification is not without its
causal chains and systems for accessibility own challenges (being transparent about weaknesses and
• Jurisdictional approach – use of the P&C as a blueprint for improvements)
jurisdiction-wide sustainable land use planning • Markets are willing to accept risks of different verification
• Credible certification, verification, and grievance – methods
verification fit for different models, recognised standards,
step-wise approaches, and future models
• Monitoring and evaluation – research and evidence on Outputs Trainings, analytics, interpretation platforms, and complaints
the impacts of the P&C, driving continuous improvement and appeals mechanisms lead to:
through ongoing monitoring • Continuous improvement of the implementation of the
assurance systems
-- Conformity Assessment Body, auditor performance,
non-conformities
-- Consistency and streamlining of the standards
• Innovation in verification and grievances leads to new
verification methods, smallholder participation, and
access to remedy

18 A narrative of change A narrative of change 19


PARTICIPATORY APPROACH FOR SMALLHOLDERS
Intermediate A more consistent, impartial, and competent system leads to More smallholders producing sustainably and benefiting
outcomes trust. from sustainable palm oil production and trade
• Improved Conformity Assessment Body, Assessment Body,
and auditor conformance and performance
• Consistent, streamlined and effective standards – focusing Current state The system has historically put more emphasis on large
on risk areas and creating efficiencies growers in Indonesia and Malaysia. More customisation is
• Trust: strengthened accountability with stakeholders needed for smallholders to be able to participate and benefit
• Increased adoption of P&C (more growers, hectares and from RSPO P&C adoption and access to the market.
volumes)
• Increased markets and actors supporting sustainable palm
oil production Goal Inclusion of more smallholders in the system to produce
sustainably while earning a sustainable livelihood from palm
oil.
Linkages to • Agency and voice – stakeholder engagement in the
long-term assurance process, participation, and decision-making in
outcomes processes affecting them, and mechanisms (complaints Key • Mobilising aggregation points (groups) as a means for
and appeals). Reduced incidents through more consistent approaches working with smallholders: efficient delivery of training,
and streamlined processes inputs, financing, implementation of P&C and certification
• Level playing field – consistency, impartiality, and • Stepwise approach to certification: P&C and supporting
competency for all actors tools ”right-sized,” and new mechanisms added to verify
• Trust in the RSPO systems will drive uptake of sustainable compliance
palm oil by the supply and demand base, which in turn • Specific demand pull, tools, and incentives for
leads to improved performance on the ground and smallholders, including financing and risk management
achievement of longer-term sustainability impacts

• Willingness of smallholders to organise, participate, and


Links to other • Participatory approach for smallholders – models that Key engage
Causal chains are fit for purpose including the use of technology and assumptions • Training and financing the upgrading of smallholders to
community-based monitoring participate in formal value chains
• Jurisdictional approach – models that enable entry at • Tools, strategies, and BMPs right-sized for smallholders
different levels • A verification/ certification system that is appropriate for
• Innovation in standards and benchmarks – models that smallholders but rigorous enough for the market
facilitate different levels and claims, with flexibility for • Government policies and regulation to support
emerging issues smallholder inclusion
• Monitoring and evaluation – real time data analytics to
drive performance and continuous improvement
Outputs Trainings, resources, P&C, mobilisation of growers into groups
and streamlined standards and new verification methods lead
to:
• Smallholder participation
-- Increased numbers of organised independent
smallholders
-- Improved enabling environment for smallholders
• Increased knowledge and capacity­—P&C, business
administration, pricing, etc.
• Effective production and management systems
• Implemented BMPs

20 A narrative of change A narrative of change 21


JURISDICTIONAL APPROACHES
Intermediate Effective implemention of the P&C through groups for Catalysing a platform for collective impact
outcomes independent smallholders leads to:
• Resource use minimisation (soil, water, energy), input use
reduction, reduced costs Current state The system is designed to certify distinct bounded areas.
• Reduced pollution (water, air, greenhouse gases) The reality is that palm oil production happens across large
• Improved risk management, management plans, and landscapes that may include multiple entities/owners,
assessments smallholders, outgrowers, and other commodities and
• Ecosystem better protected sectors that affect the desired outcomes and impacts.
• Optimised productivity Farm boundaries are often insufficient for addressing key
• Human rights upheld—free, prior, and informed consent sustainability issues (such as wildlife corridors and HCV areas),
(FPIC) or understanding trade-offs and tensions in development and
• Increased adoption of P&C (more growers, hectares, and protection. The RSPO system is underutilised as a blueprint
volumes) for sustainable development.
• Increase markets and actors support

Goal Healthy and resilient landscapes deliver multiple societal


Linkages to • Sustainable and resilient businesses – more profitable, impacts, including conservation, economic, and livelihood
long-term manage for shocks, produce sustainably benefits using jurisdictional approaches to drive scale and
outcomes • Agency and voice – professionalisation, negotiation power sector transformation, working with governments and all
• Inclusive access to benefits – through participation in actors in the region.
global value chains
• Land degradation neutrality – higher yields reduce
pressure to expand Key • Leadership in establishing a holistic and inclusive
• Ecosystem services enhanced and biodiversity protected – approaches management process with a shared vision and goals
improved soil health, minimised pollution (air, water, soil), • Government engagement and dialogue
protected areas, access to resources and protection of • Tools and capacity building to create knowledge transfer,
cultural landmarks and apply P&C and verification across a broad range of
• Communities and companies in harmony – smallholders actors
working in tandem with other actors in the community
• Level playing field – all actors are treated fairly by an
objective certification system or other verification Key • Diverse stakeholders willing to come together around
methods and via effective grievance processes and assumptions common objectives with a view to the long-term
remedy • Lead actor (backbone organisation) to convene and push
the concept to reality; perception and acceptance by
multi-stakeholders as legitimate
Links to other • Innovation in standards and benchmarks – standards and • RSPO is not the convener; convener needs to be a local
causal chains benchmarks are appropriate for smallholders actor
• Jurisdictional approach—improved yields lead to reduced • Capacity, capability of government to engage and provide
land clearing, landscape level requirements a fair and transparent platform
• Credible certification, verification, and grievance –new • Transparent and spatially explicit inventory of natural,
models fit for purpose human, physical, social, and financial assets
• Monitoring and evaluation – making the business case for
smallholders cost and benefits, proof of concept
Outputs Trainings, partners outreach, streamlined standards, and new
verification methods facilitate the establishment of:
• Mobilised growers and actors
• National/ regional platforms and dialogues - for
negotiation of goals and creating a shared vision and
management plan
• Implemented BMPs

22 A narrative of change A narrative of change 23


• Increased knowledge and capacity - P&C, business Links to other • Innovation in standards and benchmarks – step-wise
administration, pricing, etc. causal chains approaches for smallholders with the jurisdictional
• Smallholder participation—inclusion of smallholders in the approach
process • Credible certification, verification and grievance –
• Access to remedy verification fit for purpose including technology (remote
sensing) and community-based monitoring
• Participatory approach for smallholders – strengthen
Intermediate If a multi-stakeholder platform is established, it facilitates producer organisations to participate and to address
outcomes the effective adoption of P&C. Activities and investments by landscape level impact areas in the holistic land use
government and other actors support in addressing barriers to management plan (identification, management and
adoption of sustainable practices and will lead to: monitoring of HCV, HCS, SEIA, FPIC), legality
• Effective implementation of the P&C: • Monitoring and evaluation – testing models for innovation
-- Resource use minimisation (soil, water, energy), input and learning through research and evidence, driving
use reduction, reduced costs continuous improvement through ongoing monitoring
-- Reduced pollution (water, air, greenhouse gases)
-- Improved risk management, management plans, and
assessments
-- Ecosystem better protected
-- Optimised productivity
• Human rights upheld
• Safe and decent work for all workers
• Increased investments­—model attracting new players and
financing tools
• Increased adoption of P&C (more growers, hectares, and
volumes)
• Increased markets and actors support

Linkages to Increased adoption of P&C (more growers, hectares,


long-term and volumes) expanded across the landscape leads to
outcomes improvements in:
• Agency and voice – inclusive multi-stakeholder platform,
smallholder participation
• Level playing field – negotiated goals, consistent and
transparent processes
• Inclusive access to benefits – equitable opportunities,
safeguarding social and community interests
• Sustainable land use planning – jurisdiction-wide planning
including trade-offs and compensation
• Communities and companies in harmony – multi-
stakeholder platform to achieve a balance between
multiple and sometimes conflicting objectives. Effective
compensation mechanisms
• Ecosystem services enhanced and biodiversity protected
– improved soil health, minimised pollution (air, water,
soil), protected areas, access to resources, and protection
of cultural landmarks

24 A narrative of change A narrative of change 25


DEMAND GENERATION, COMMITMENTS, AND UPTAKE
Furthering commitments and uptake Outputs Communications, outreach, engagement, and research lead to:
• Awareness, promotion, and visibility of sustainable palm oil
Current state Although there are substantial commitments from Europe • New buyers and markets
and growing interest in North America, the uptake is not • Increased membership
fulfilled. There are untapped/under-tapped opportunities • Increased commitments from buyers
in emerging markets with high consumption of palm oil (e.g. • Increased uptake
China, India and Indonesia) as a low cost food staple for low • National/regional platforms and dialogues
income growing populations. Obstacles to increasing demand
include a negative perception of palm oil as a commodity that
is in conflict with people and the environment in developed Increased market commitments will drive increased P&C
markets concerned with reputation and risk, as well as adoption, leading to more sustainable production and
general lack of awareness of sustainability in major consuming innovation in standards and benchmarks outcomes.
markets.

Intermediate Broadening awareness and stimulating the commitment for


Goal Ensure there is a growing global and diverse market with sustainable production leads to:
outcomes
increased commitments and purchases of sustainable palm • Distinction between sustainable and unsustainable palm oil
oil to incentivise and support implementation of sustainable • Increased investments in sustainable palm oil (production
production.
and procurement)
• Incentives in the form of (corporate) sourcing policies,
Key market access, preferential terms of trade
• Change perception with positive stories, evidence,
approaches • Improved risk management
and local endorsement (influencers/ambassadors) and
transparent communications
• Build awareness of sustainable (versus unsustainable)
Linkages to Demand and market conditions incentivise sustainable palm oil
palm oil supported by evidence of the P&C and
long-term production, making it the norm, and leading to all of the long-
certification, driving/delivering impacts and leveraging
outcomes term outcomes and desired impacts.
SDGs where possible
• Specific country strategies (China, Indonesia, India,
Malaysia) implemented with local partners
• Accountability mechanisms on existing commitments Links to other • Matching supply and demand – increased market demand
leveraging and strengthening Annual Communications of causal chains and uptake requires ensuring sufficient supply and meeting
Progress (ACOP)
market requirements
• Engagement of the supporting sector – governments and
financial institutions can require market commitments and
Key • RSPO can make the business case of benefits of
uptakes
assumptions sustainable palm oil and risks of unsustainable production
• Credible certification, verification and grievance – trust is a
• Government policies where support is needed and
precondition to market commitments and uptake
incentivised sustainable production and consumption
• Emerging market companies (brands and retailers) willing
to commit to sustainability
• Certification and verification rigour and perception to
build market confidence
• Members are held to account for unfulfilled commitments

26 A narrative of change A narrative of change 27


MATCHING SUPPLY AND DEMAND
Growing both the volume and diversity of the supply base and markets and matching them Intermediate • Increased investments—buyers, growers, and the supply
to shore up long-term security of supply for the market and market access for growers outcomes chain invest in sustainable production
• Global availability of sustainable palm oil (PO) and palm
kernel oil (PKO)
Current state There is more supply of palm oil than current uptake, • Trust, transparency, and mutual dependency improve
which inhibits interest in grower participation in RSPO. relationships between actors
Insecurity about markets inhibits investment and longer- • Incentives for buyers and growers to get more deeply
term commitments. From the market perspective, there is involved in production and sourcing
an undersupply of palm kernel oil, which undercuts market
commitments.
Linkages to • Market for sustainable palm oil – this precondition is
long-term dependent on a steady increase in supply, demand, and
Goal Matching of supply and demand, which provides secure outcomes uptake
markets for growers and their supply chain partners and • Sustainable and resilient businesses—growers and other
security of supply for buyers of palm oil and palm oil businesses will only be able to make investments for the
derivatives. This balance should drive participation, uptake, long-term if they know they have continuous market
and investment, and should be underpinned with greater access
traceability where required.

Links to other • Demand generation, commitments and uptake –


Key • Mapping supply chains and leveraging PalmTrace and causal chains confidence to make commitments based on current or
approaches Annual Communications of Progress (ACOP) to identify future available supply
gaps • Participatory approach for smallholders – markets may
• Communicating to growers, buyers, and traders about specify or specifically desire to invest in smallholder
gaps in supply and demand production
• Membership drives targeting growers, crushers, mills and
refiners, traders, and buyers
• Using traceability to better connect buyers, growers, and
the supply chain

Key • Real time, accurate and accessible data and analysis


assumptions • Long-term commitments of growers, buyers, and their
supply chains

Outputs Policies, monitoring systems, outreach, and engagement to


improve supply chain management and access to markets
lead to:
• Improved traceability (and visibility), market linkages with
supply chains
• Mobilised growers and actors—growers, crushers, mills
and refiners, traders, and buyers can source and sell
sustainable palm oil
• New buyers and markets, with increased commitments
from buyers and increased uptake because of confidence
in being able to source

28 A narrative of change A narrative of change 29


ENGAGEMENT OF THE SUPPORTING SECTOR
Creating an enabling environment through being a catalyst, advocate, and partner for Intermediate • Increased investments in infrastructure, upgrading of
policies and incentives, investment, regulation, and enforcement outcomes smallholders
• Incentives in the form of investment guidelines,
preferential terms, policies
Current state Production, consumption, and trade policies in key markets • Distinction between sustainable and unsustainable
could provide a level playing field as well as needed production and consumption
infrastructure, investments, and services that enable • Production, consumption, and trade policies – promoting
growers of all sizes to implement the P&C. More incentives and stimulating sustainable production and procurement
are needed to stimulate the adoption of P&C as well as • Consistent accountability and enforcement
stimulate the uptake of sustainable palm oil by the market.
There is inconsistent public and/or private sector regulation,
which can promote a race to the bottom in terms of valuing Linkages to • Sustainable land use planning – with the support of
sustainability. long-term government institutions
outcomes • Level playing field – through a setting of rules,
expectations and enforcement mechanisms
Goal Ensure there is an enabling environment that helps bring in
growers, buyers, investors, and donors to participate in the
sustainable palm oil sector. Links to other • Participatory approach for smallholders – helping to
causal chains provide the legal infrastructure and extension services
• Jurisdictional approach – role for governments, donors
Key • Advocacy and government engagement and dialogue • Demand generation – procurement requirements and/or
approaches • Communication of sustainable palm oil production’s incentives
contribution to the SDGs
• Engagement with other systems (national schemes/
standards/initiatives)
• Leveraging banks, investors, banking associations, and/or
banking regulators
• Engagement with donors

Key • Governments willing to address land rights and enforce


assumptions laws
• Government policy to support and incentivise
investments in upgrading smallholders
• Emerging markets’ commitment to sustainable
production and consumption
• Government programmes (national schemes/standards/
initiatives) willing to work collaboratively
• Banks, particularly local banks, willing to set investment
policies
• Willingness for banking regulators to engage

Outputs Communications, outreach, engagement, and partnerships


lead to:
• Increased membership – financial institutions (FI) and
potentially governments as members (or active partners)
• Increased commitments – FI, governments
• National/regional platforms and dialogues
• Mobilised growers and actors – a result of regional,
national, and international engagement

30 A narrative of change A narrative of change 31


SUPPORTING ELEMENTS ANNEX 1
CHRONOLOGY OF THEORY OF
CHANGE DEVELOPMENT
Guiding Principles

The guiding principles are the foundation that form the RSPO, achoring how the RSPO works.
They are headlined by Relevancy and Trust. 2016
Time frame Activity Description

RELEVANCY Continuous improvement July – August Sustainability Priorities Survey was distributed to members in order to gain a
RSPO and its members engage in an ongoing effort to always survey better understanding of where RSPO should focus in
RSPO is adapting to realities better tools, systems, services, processes, transparency, delivery, order to enhance palm oil sustainability
and changing needs of the and the organisation.
market, local conditions and August Workshop Developing M&E System for RSPO Workshop with
context, emerging issues, and Innovation members and RSPO Secretariat
the evolving sustainability RSPO and its members seek solutions that meet new
agenda. Relevancy is requirements, challenges, unarticulated needs, and November World Café on “Desired Stakeholder engagement for input to ToC
underpinned by continuous opportunities. This includes thinking differently and trying new Change for RSPO” development
improvement and innovation. approaches, experimenting, failing, and learning from failures.
Today’s innovations are tomorrow’s better practices, to be
standardised and mainstreamed into RSPO.
2017
Time frame Activity Description
TRUST Alignment
This means ensuring all aspects (leadership, programmes, staff, February-April Listen & Learn Interviews with 56 stakeholders
Ambitious sector change relies strategies, management) of the RSPO organisation and RSPO Review of key documents
on building trust for impact, stakeholders are synched and focused with the vision, goals, and Review of other systems
which entails the ability of priorities to achieve better results and drive impact.
RSPO and its members to cross April Workshops Board of Governors (BoG) Workshop
boundaries and find common Credibility Secretariat Workshop
ground, and to then work Credibility is established via trustworthiness and expertise. To
together, despite significant continue to gain credibility, RSPO and its members (we are June Stakeholder Workshops Two stakeholder workshops at European Roundtable
organisational differences all RSPO) can demonstrate this value through transparency, (approximately 80 participants)
and objectives. Trust is built communication, sharing knowledge, and relying on the expertise
along the way through the of its members and partners as well as developing its own June RSPO Vision Meeting with subgroup of the BoG to align on the
process of developing a vision, capacities. vision
identifying shared goals, and
developing and launching Inclusiveness July Theory of Change Development Version One: Presented July 24 to BoG Subgroup for
aligned strategies. Trust is thus All types of growers, businesses, supply chain actors, production feedback
underpinned by alignment, systems, communities, geographies, NGOs, local authorities, etc.,
credibility, and inclusiveness. are welcome to be part of RSPO’s vision and missions. The system August Causal Chains Workshop Workshop to develop causal chains with secretariat
is intended to benefit all palm oil stakeholders and supply chains
that are willing to transform and participate in the sustainability August Theory of Change Development Version Two: Presentation to BoG Subgroup for
journey. feedback

September Theory of Change Development Final Version: Presentation to the BoG for
endorsement. Theory of Change is endorsed by the
BoG on 18 September 2017.

Annex 1
32 A narrative of change 33
ANNEX 2
RSPO’S ROADMAP FOR
SUSTAINABLE PALM OIL

THEORY OF CHANGE
RSPO'S ROADMAP FOR SUSTAINABLE PALM OIL

GUIDING PRINCIPLES OUTCOMES VISION

RELEVANCY TRUST
Agency & voice Biodiversity protected SUSTAINABLE PALM OIL
COMMITMENT, COLLABORATION Inclusive access Ecosystem IS THE NORM
& ACCOUNTABILITY to benefits services enhanced

Communities and Land degradation


ROLES companies in harmony neutrality

Sustainable & resilient Sustainable


businesses land use planning
GOALS
Sustainability Standards Engagement Level playing field
leadership system platform
Resilient & Healthy Landscapes & Communities
Green & Inclusive Growth

MOBILISE TRANSFORM
STRATEGIES
Market for Sustainable Palm Oil
IMPACTS

Innovating RESEARCH & EVIDENCE TRUST BUSINESS CASE


Generating
standards & demand,
benchmarks commitment MORE MARKETS, NEW MORE GROWERS,
s & uptake ACTORS ENGAGED, HECTARES AND VOLUMES
INSTITUTIONAL SUPPORT
Credible certification,
verification & PEOPLE PROSPERITY PLANET
grievance Matching IMPROVED INCREASED TRANSPARENCY INCREASED
supply & ENABLING MARKET & INCLUSION P&C Sustainable Competitive, Conserved,
demand ENVIRONMENT UPTAKE ADOPTION livelihoods & poverty resilient & protected &
reduction sustainable enhanced
Participatory sector ecosystems that
Human rights
approach protected, respected provide for the
for smallholders & remedied next generation
Engaging the OUTPUTS
supporting
sector
Jurisdictional
approaches ACT

RSPO RSPO & other actors drive outcomes and impacts rspo.org

34 35
ANNEX 3 ANNEX 4
UNPACKING THE VISION HOW THE THEORY OF CHANGE LINKS
TO THE RSPO PRINCIPLES & CRITERIA

In June 2017, a discussion with the sub-group of members of the Board of Governors was held The RSPO Standard and related Currently, RSPO reports on embed M&E elements into the
in London to unpack the vision of RSPO. The outputs of the discussion were presented to and tools and systems have served impact in terms of reach of the RSPO Standard and assurance
subsequently approved by the BoG. as the cornerstone of RSPO RSPO standard, e.g. number system itself.
strategy for achieving its of growers, hectares, and
The Vision is the future change RSPO wants to create and thus serves as the compass point for the vision. Developed through a smallholders. While this serves Looking at the basic
Theory of Change. All strategies, activities, outputs, outcomes and impacts should lead and link to multi-stakeholder process, it as a proxy for potential impact, (oversimplified) causal chain
this vision of success. defines the principles (goals) there is growing demand for of the P&C, Figure 1 below
and necessary criteria and evidence of outcomes and highlights the great potential
practices that operationalise impacts of implementing the to embed indicators within the
sustainability. When the P&C. There is some evidence criteria themselves or design
RSPO P&C are effectively in audit reports, but this is the M&E system to capture
implemented, the assumption inconsistent and generally in data along the causal pathway.
RSPO will transform markets to make is that they will lead to positive an inaccessible format.
sustainable palm oil the norm environmental, social, and The Theory of Change presents
economic outcomes. an excellent opportunity to

WHAT THIS MEANS


Figure 1 Example Causal Pathway P&C
Activities/Inputs Outputs Outcomes Impacts

Short-term Intermedite Long-term


OUTREACH, GROWERS AWARE OF
Markets imply all actors in palm oil supply chains. TRAINING, BENEFITS OF RSPO
GROWERS SOCIAL,
ECONOMIC, AND
RESILIENT, PLANET,
PEOPLE, AND
IMPLEMENTING HEALTHY,
CAPACITY CERTIFICATION, PROSPERITY
RSPO P&C ENVIRONMENTAL LANDSCAPES, AND
MARKETS BUILDING KNOWLEDGE/SKILL
(ADOPTING BMPS) RESULTS COMMUNITIES

RESULTS

RSPO aspirations and definitions will be framed within


the Sustainable Development Goals.The goals are global, The RSPO P&C and certification greenhouse gas emissions, The ToC provides a clear
represent multi-stakeholder voices, and link to people, planet, system contributes to direct optimising farm productivity, guiding framework not only for
SUSTAINABLE and prosperity. results in the form of increased resource use efficiencies, risk the standard-setting process
knowledge and skills to management and profitability, but also for monitoring,
implement Best Management and improving the well-being evaluating, and reporting the
Practices (BMPs) and of growers, workers, and the effects of the standard and
“The new normal”-the desired and accepted way of working effective farm planning and communities. When these assurance system, allowing
that is sufficiently large and embedded in culture (e.g. management systems. sustainability benefits are for innovation and testing to
attitudes and beliefs) and practice. expanded across landscapes adjust the P&C, and assurance,
NORM These short-term results, and supported with activities strategy, and activities to
in turn, are expected to and investments by other deliver key outcomes more
contribute to intermediate stakeholders, RSPO can achieve effectively over time.
The transformation is a journey in which RSPO “raises the ceiling and the floor” through a results in the form of improved the broader longer-term
process of helping stakeholders through continuous improvement, moving from good practice farm sustainability for impact of resilient, healthy
to best practice, and adapting to changing circumstances and environments. conserving natural resources, landscapes and communities.
and reducing waste and

36 Annex 2 Annex 3 37
The RSPO is an international non-profit organisation formed in 2004 with the
objective to promote the growth and use of sustainable oil palm products through
credible global standards and engagement of stakeholders.

www.rspo.org

Roundtable on Sustainable Palm Oil


UNIT A-37-1, Level 37, Tower A,
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No.5 Jalan Bangsar Utama 1,
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Other Offices:
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Beijing, China
London, United Kingdom
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rspo@rspo.org
www.rspo.org

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