The tripartite partnership is an extension of the P&G Smallholder Program, which aims to create Positive Impact on People, Planet and Profitability for a community of independent smallholder farmers in Johor, Malaysia. Malaysia has close to 6 million hectares of oil palm plantation land, of which approximately 1 million hectares is managed by independent smallholder farmers (ISHF).
A meeting on 21 June 2023 marked the beginning of the five-year partnership, attended by Temasek Foundation Deputy CEO, Benedict Cheong and Manager Jielin Zhuang, Procter & Gamble (P&G) representatives Harish Harlani, Vice President of P&G Chemicals, Eugene Han, Senior Director for Strategic Sourcing and ESG Sustainability, and Girish Deshpande, P&G Sustainability Director. Professor Sanjay Sarma, CEO, President and Dean and professor Joe Cherian Deputy CEO represented ASB.
Present at this landmark meeting was ASB Founding Chair and Co-Chair of ASB Board of Governors, Tan Sri Dr. Zeti Akhtar Aziz. The SSF project will commence on 1st July 2023, and will be delivered by P&G Center for Sustainable Small-owners (CSS) led by CSS Director, Professor Asad Ata. The SSF project is an extension of the P&G Smallholder Program, that has successfully delivered over 300 ISHFs to achieve RSPO Independent Smallholder Standard (RISS) certification and who have started receiving RSPO premiums for supplying Certified Sustainable Palm Oil.
This extension aims to benefit an additional 450 ISHF, who will embark on a continuous improvement program to increase the oil palm yield with sustainable and good agricultural practices supported and financed by a nutrient management program. These efforts counter the need for opening new lands (no deforestation), demonstrating better chemical, peat and waste management practices and reducing the overall ecological footprint of oil palm production by these very small farmers.
CSS was established in 2019 as part of P&G’s strategy to deliver on its Ambition 2030 goals through the P&G Smallholders initiative. The CSS mission is to ensure ethical and responsible sourcing for oil palm with commitments to No Deforestation, No new plantation on Peatlands, and No Exploitation in the supply chain while safeguarding the interests of the independent smallholder farmers and growers.
The 2023 CSS Impact Report was presented and released at this occasion.