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Wednesday, February 1, 2023

Comparison MSPO versus Corporate Sustainability Due Diligence (CSDD)

MSPO (Malaysian Sustainable Palm Oil) is a certification scheme for sustainable palm oil production in Malaysia, while Corporate Sustainability Due Diligence (CSDD) is a process used by companies to assess and manage sustainability risks and impacts in their operations and supply chains.


MSPO is a certification standard established by the Malaysian government to promote sustainable palm oil production in the country. It covers the environmental, social, and economic aspects of palm oil production, including environmental protection, human rights, and economic viability.


CSDD is a requirement under the EU's due diligence regulation (Regulation (EU) 2019/2088) which came into effect on 3 January 2021. It requires companies to conduct sustainability due diligence throughout their supply chains, including for palm oil and its derivatives, to ensure that they do not contribute to deforestation, human rights violations, or other environmental and social risks.


Both MSPO and CSDD aim to promote sustainable palm oil production and help address the negative impacts of palm oil production on the environment and communities. However, CSDD has a broader scope, covering all supply chains of a company, while MSPO focuses only on palm oil production in Malaysia.


MSPO (Malaysian Sustainable Palm Oil) is a certification standard for sustainable palm oil production in Malaysia, while Corporate Sustainability Due Diligence (CSDD) is a process in the European Union to assess and manage the environmental and social risks and impacts associated with a company's activities and supply chains.


In terms of sustainability, MSPO focuses specifically on palm oil production, while CSDD is a broader approach to corporate sustainability that covers a range of sectors and products. MSPO aims to promote sustainable palm oil production in Malaysia, while CSDD aims to promote responsible and sustainable business practices throughout the European Union.


While both MSPO and CSDD aim to promote sustainable practices, they differ in their scope, geographic focus, and the specific sustainability standards they cover. MSPO focuses on the palm oil sector in Malaysia and sets standards for environmental, social, and economic sustainability. CSDD, on the other hand, is a broader concept that can apply to any sector or company and is often guided by the EU sustainability due diligence regulations.


CSDD, on the other hand, is a European Union (EU) initiative that aims to address the negative impacts of palm oil production on the environment and human rights. It requires companies to assess and report on the sustainability of their palm oil supply chain.


MSPO is a specific certification scheme for the palm oil sector in Malaysia, while CSDD is a wider process used by companies to assess sustainability risks and impacts in their operations and supply chains.


In summary, while both MSPO and CSDD aim to promote sustainability in palm oil production, MSPO is a national standard specific to Malaysia, while CSDD is a European initiative that applies to companies importing palm oil into the EU.


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