SINGAPORE - Media OutReach - 12 September 2018 - A new grouping of oil palm growers, palm oilprocessors, consumer goods manufacturers, not-for-profit organizations andtechnology leaders recently gathered to initiate a blockchain solution that aimsto improve traceability to production areas and accelerate the push towardsNDPE (No Deforestation, No Peat,No Exploitation) compliance in the complex palm oil chain.

SUSTAIN (Sustainability Assurance & Innovation Alliance), a new grouping of oil palm growers, palm oil processors, consumer goods manufacturers, not-for-profit organizations and technology leaders, was officially formed on 07 September 2018 to initiate a blockchain solution that aims to improve traceability to production areas and accelerate the push towards NDPE in the complex palm oil chain. Companies in attendance at the SUSTAIN launch included palm oil companies Apical and Asian Agri; renewable diesel producer Neste; consumer goods manufacturer KAO; facilitation team CORE (Proforest and Daemeter); and technology partner SAP. Additional collaborators from across the palm oil supply chain are expected to join the new alliance as it further develops an industry solution.

SUSTAIN(Sustainability Assurance & Innovation Alliance) brings together relevant stakeholders inthe palm oil industry to collaboratively address landscape-level sustainabilityissues and allow synergy creation among industry players by establishing acommon blockchain-based platform for palm oil. 

Companies in attendance at the SUSTAINlaunch included palm oilcompanies Apical and Asian Agri; renewable diesel producer Neste; consumergoods manufacturer KAO; facilitation team CORE (Proforest and Daemeter); andtechnology partner SAP. Additional collaborators from across the palm oilsupply chain are expected to join the new alliance as it further develops anindustry solution.

"SUSTAIN is notabout building another traceability data collection tool, analytics ordashboard. The key focus of SUSTAIN is to promote collaboration and alignefforts in solving landscape-level issues by leveraging on technology toaddress shared challenges in the supply chain," said Dato' Yeo How, President, Apical Group."We aim to work together with industry partners in creating an industrysolution towards greater transparency and sustainability assurance through thesuccessful integration of sustainability good practices with the latest technologicalsolutions."

It isenvisioned that SUSTAIN will provide open access to a system with downloadabletools that can be utilized by a wide range of users such as dealers andsmallholders. The tools can be used by all parties to establish traceability,monitor policy compliance, efficiently trade FFBs (fresh fruit bunch), obtainbest practice guides, and access innovative ESG-linked micro-financing. 

The newindustry alliance launches at a time when palm oil continues to play a vitalrole in satisfying global demand for vegetable oils driven by the exponentialgrowth of the world's population. Palm oil remains the most feasible option forconsumer products due to its unique properties and yield per hectare ratiowhich is the highest among all vegetable oils. The alliance aims to build onthe increasing push towards collaborative effort and landscape approaches thatthe palm oil industry is driving.   

"SUSTAIN willcapitalize on the advantages of blockchain technology to encourageindustry-level collaboration and wide adoption of a common blockchain-basedplatform as a practical solution to drive supply chain transformation to improvemarket access for palm oil products," Yeo added. "The initiative has beencreated to acknowledge the critical roles of palm oil mills, dealers, agents,and smallholders in the supply chain and works towards inclusion and progressivetransformation."

SAP has joined SUSTAIN as technology partner. Thecompany has been working with more than 60 enterprises across industries tocreate blockchain use cases in supply chain, manufacturing, transportation andpharmaceuticals.

"SAP believes innovation is driven from a deepunderstanding of our customers' business and the environment in which theyoperate and the communities they serve. We are delighted to be working withSUSTAIN as their technology partner," said Jim Cook, Vice President, Industriesand Digital Leader, SAP South East Asia. "SAP Leonardo, our innovation platformsupporting new technologies such as Machine Learning, Artificial Intelligenceand Blockchain, will be used as a platform for SUSTAIN. SUSTAIN will capitalizeon the advantages of blockchain technology to encourage industry-levelcollaboration to improve traceability and management of sustainable sources. Collaborationacross the many stakeholders in this industry is vital to protect thelivelihoods of those who work in the industry and protecting the environment."