SPOTS namely allows to connect certified smallholders to the market demand for “Zero Deforestation” palm.
As the final off-taker, L’Oréal subscribes a 5-year premium-based commitment to purchase the smallholders’ RSPO certified production.
Through this pilot project, L’Oréal initiates a long-term business relationship with every actor of the value chain, which is inclusive of independent smallholders and disruptive with regard to the rules of a traditional commodity market.
By the end of 2018 :
- 369 small independent farmers joined the SPOTS project, and among them 179 farmers delivering directly to Wilmar obtained the RSPO certification (73% of the target achieved)
- 225 training sessions were conducted alongside small palm producers to provide them with knowledge about the RSPO certification system, best management and sustainable agricultural practices, waste management, soil health, etc.
- Since 2015, 21,357 metric tons of RSPO certified palm oil were generated by the 369 beneficiaries of the project
Following the significant results of SPOTS, L'Oréal launched a second project on the island of Sumatra in Indonesia in 2018, which aims to support 12,500 smallholders over 5 years.In total, 13,000 small producers will benefit from these initiatives.
These projects illustrate L’Oréal’s commitment to achieve the sustainable sourcing all raw materials and zero deforestation by 2020.