The Exchange and the Malaysian Palm Oil Certification Council signed a Memorandum of Understanding to promote sustainability and responsible practices amongst palm oil players across the supply chain.
Based on the MoU, both Bursa Malaysia Derivatives and MPOCC will commit to a framework of cooperation and collaboration in the areas of information exchange, including exploring opportunities to develop and promote sustainability-related initiatives in the palm oil industry. “We are committed to sustainability initiatives that go beyond standard-setting and certification by building a conducive environment for sustainability to grow and making MSPO as one of the globally accepted certified sustainable palm oil,” said Mohammad Hafezh Abdul Rahman, Chief Executive Officer of MPOCC.
“We are working towards the continuous improvement of our systems, standards, and governance to ensure credible schemes with high integrity are available in the market. This strategic partnership will intensify our efforts together with Bursa Malaysia Derivatives in the relevant sector.”
“As the ESG agenda gains prominence, it is critical that the local palm oil industry mainstreams the adoption of environmental-friendly practices and compliance with the Sustainability Audit Standards,” said Samuel Ho, Chief Executive Officer of Bursa Malaysia Derivatives. “The MoU signed with MPOCC today not only reinforces our commitment to drive sustainable development in the palm oil supply chain through our product offerings,
but also to collaborate closely with MPOCC to enhance the overall competitiveness and appeal of the Malaysian palm oil to importing countries.”
The Malaysian Sustainable Palm Oil certified Crude Palm Oil is integrated into the derivatives market delivery process through Bursa Malaysia Derivatives’ Crude Palm Oil Futures and East Malaysia Crude Palm Oil Futures contracts. Since the implementation of this requirement for FCPO physical delivery took effect on April 2021, approximately 897,075 metric tonnes were delivered through the Exchange from April to December 2021.
This represents a significant increase of 65.8% over the 540,975 metric tonnes traded via FCPO during the same period in 2020, showcasing strong industry demand for derivatives products.