Press Release: To restore trust in certification schemes, human rights must be upheld in the audit system

Jakarta, 20 November 2023

In response to the growing concerns over the failure of certification schemes to uphold their own standards, FPP has just published a new report which emphasizes the urgent need to overhaul current audit processes and provides practical solutions on how to accomplish this.

The report titled ‘How to re-build confidence in the audit system of certification schemes’ was released at the Roundtable of Sustainable Palm Oil (RSPO) Conference (RT 2023) in Jakarta, Indonesia, where FPP is advocating for assurance system reform.

The release of this report aims to spark dialogue and action within RSPO, and other certification schemes, by providing a roadmap for reforming auditing systems and ensuring their long-term credibility.

In this vein, one of the report’s major concerns is the inadequacy of social audits to verify adherence to human rights standards:

 

“If social audits are not regarded as credible and rigorous, they can cast doubt on the legitimacy and relevance of certification schemes. This presents a significant reputational risk to downstream companies and investors who have publicly pledged their commitment to sustainable practices, responsible sourcing, and adherence to internationally recognized human rights principles, including the rights of indigenous peoples. These entities often rely on certification schemes to substantiate their adherence to these commitments,” states the new report.

 

Numerous case studies from a range of certification schemes are cited to exemplify the inadequacy of social audits by certification bodies, such as the complaint filed against PT Mutuagung Lestari and their client Golden Agri Resources (GAR) in what appeared as an orchestrated attempt to misrepresent or ignore information to certify the company against the RSPO Standard.

In another case, investigations into the CB, TUV Nord Indonesia, found the assessors “falsely claimed they had used a “purposive sampling” method to justify the fact they had not carried out interviews in all seven of the villages within and adjacent to the concession of the palm oil group, First Resources. The one village not included in their sample was the Muara Tae, a community which claimed customary land rights within the concession”.

 

“Human rights, including labour standards, should not be left to unverified, self-assessed, and self-reported mechanisms,” said Angus MacInnes, author of the report from Forest Peoples Programme

 

The report outlines a series of practical steps (see ten key takeaways below) which certification schemes can take to firewall audits against conflicts of interest and perverse incentives.

The report also argues that ineffectual social audits not only jeopardise the integrity of sustainability commitments but also weaken consumer trust. Moreover, they result in legal compliance issues and expose organizations to supply chain-related risks.

 

“Certification as we have known it... will have to change, because of increased expectations,” shares Kim Carstensen, Director General of the Forest Stewardship Council

 

Anticipating upcoming regulations in the EU, UK, and USA, the report emphasizes that any shortcomings found in certification schemes’ assurance mechanisms could undermine their relevance in the evolving regulatory landscape.

By proactively addressing these concerns, RSPO have the opportunity to restore faith in certification schemes and pave the way for a more robust and trustworthy auditing system that aligns with global standards and balances industry expansion with environmental protections and respect for human rights.

For further information and clarification on the report, please contact Angus MacInnes via angus[at]forestpeoples.org .

Ten Key Takeaways from the report

1. Restructure audit incentive models to ensure independence, whereby selected auditors selected are paid by the certification scheme through an escrow account, with contributions from downstream companies and scheme members.
2. Combat audit complacency by enforcing Certification Body (CB) and auditor rotation.
3. Improve auditor comprehension of core social standards, including customary land rights and Free, Prior, and Informed Consent (FPIC).
4. Auditors should have logistical independence from the companies they assess.
5. Implement risk-level assessments for audits.
6. Prohibit CBs from certifying consistently non-compliant companies.
7. Extend audit periods to accommodate varying risk levels.
8. Revise procedures to allow in-depth stakeholder consultations.
9. Implement safeguards for informant protection.
10. Inform impacted stakeholders of their right to be accompanied by advisors and observers of their choice.

Read the full report in English or Bahasa

Read a two-page report summary in English or Bahasa