CDP Power of Procurement: Catalysing action to end deforestation from palm oil in Indonesia Evaluation
Evaluated oil palm oil supply and demand for the disclosure of sustainable practices to help increase companies' understanding of best practices for eliminating deforestation activities in commodity supply chains.
Background
The project’s overall aim was to end deforestation from the expansion of palm oil plantations, by working at every stage of the supply chain, from both the supply and demand sides. It was facilitated by collaboration between the buyers and suppliers of palm oil produced in Indonesia and Malaysia and exported to the Chinese market. The project was funded by the David and Lucile Packard Foundation.
The PoP project focused on three outcomes from the supply, demand and policy sides to promote disclosure to help promote companies’ understanding of best practices for removing deforestation from their commodity supply chains. First, this project aimed to leverage the procurement power of the buyer companies to drive critical action among their suppliers towards removing the deforestation risk from the palm oil supply chain by implementing the Supply Chain Forests programme. Second, to strengthen the capacity of the palm oil actors in monitoring, measuring and reducing the deforestation risk, CDP provided assistance and capacity building support to companies. Lastly, in order to reveal potential policy interventions and increase transparency for promoting a deforestation-free palm oil industry, CDP aimed to increase public-private sector dialogue and cooperation for deforestation-free palm oil production in Indonesia.
The evaluation team was composed of:
- Azka Azifa
- Francesca Chiu
- Aidy Halimanjaya
- Rodd Myers
Approach
The performance review covered the evaluation of CDP’s PoP project using relevance and effectiveness criteria taken from the OECD Development Assistance Committee (DAC) criteria. The performance review covered all countries where PoP Indonesia had interventions, including Chinese companies, which were major importers of Indonesian palm oil and among the top-three domestic consumers of Indonesian palm oil. Although some of the companies involved in PoP were based in Malaysia or Singapore, for example, they were included in the project as their production was primarily in Indonesia.