• RSPO has issued guidance helping certified palm oil producers use existing sustainability data to support IFRS S1 and S2 disclosures.
• More than 30 jurisdictions representing about 60% of global GDP are moving toward IFRS Sustainability Disclosure Standards adoption.
• The framework also helps banks, insurers and investors assess how labour, traceability and environmental risks may affect financial performance.

The Roundtable on Sustainable Palm Oil has introduced new guidance to help palm oil producers connect certification practices with emerging global sustainability reporting requirements.

The document, “Leveraging RSPO Principles and Criteria for IFRS Sustainability Disclosure Standards,” focuses on IFRS S1 and IFRS S2. These standards are becoming a key reference point for sustainability-related financial reporting across major markets.

More than 30 jurisdictions, representing roughly 60% of global GDP, are moving toward adopting the IFRS Sustainability Disclosure Standards. That shift is placing greater pressure on companies to explain how environmental and social issues affect their financial position, strategy and long-term prospects.

For certified palm oil producers, RSPO’s guidance aims to reduce duplication. Companies can use information already collected through compliance with RSPO’s Principles and Criteria to support their reporting processes.

Connecting certification with financial disclosure

Certification and financial disclosure serve different functions. RSPO’s framework, developed with support from PwC Malaysia, seeks to connect the two.

It helps companies translate operational sustainability information into evidence that can inform investor-focused disclosures. This includes existing sustainability topics, metrics and documentation collected through certification.

The guidance follows a four-step approach. It covers the applicability of IFRS sustainability standards, reporting boundaries and the identification of sustainability-related risks and opportunities. It also addresses how those issues may connect with financial performance.

Seven practical examples show how RSPO requirements can support reporting across several areas. These include ethical conduct, legal compliance, environmental protection and worker health and safety.

For companies already facing multiple reporting regimes, the ability to repurpose verified sustainability information could reduce the administrative burden associated with disclosure.

Joseph D’ Cruz, RSPO Chief Executive Officer, said: “As sustainability reporting becomes an integral pillar of financial performance, this guidance bridges certification and disclosure, providing RSPO members with a practical framework to demonstrate sustainability performance in ways that resonate with global capital markets. In line with the growing importance of sustainability disclosures in financing and investment decision-making processes, this guidance illustrates how RSPO Principles and Criteria practices can complement an organisation’s strategy and risk assessment processes.”

Investors gain another lens on palm oil risk

The guidance is also aimed at financial institutions.

Banks, insurers and investors are increasingly expected to understand how sustainability risks within their portfolios could translate into financial exposure. Palm oil presents several material issues, including labour disputes, traceability failures, regulatory risks and environmental impacts.

RSPO says certification information can help financial institutions assess those risks more systematically. It could also support clearer risk profiling when lenders and investors make financing decisions.

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Andrew Chan, Partner, Sustainability Leader at PwC Malaysia, said: “This guidance responds to the broader shift towards measuring sustainability through a financial lens, with the adoption of the IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2). For RSPO growers, this creates an opportunity to demonstrate how sustainability practices contribute to business resilience as well as value creation — building investor confidence for the long term.”

The approach reflects a broader change in sustainability reporting. Environmental and social performance is increasingly being assessed through its effect on enterprise value, capital access and financial resilience.

Certification data moves closer to capital markets

RSPO also plans to explore stronger connections between certification systems and sustainability disclosure frameworks.

Future work could examine how certification-related metrics and assurance processes support more integrated corporate reporting. Verified operational data may become increasingly useful as regulators and investors demand comparable sustainability information.

For palm oil companies, that creates a governance challenge as well as an opportunity. Existing certification systems may provide a foundation, but companies will still need to assess material risks through a financial lens.

The development is also relevant beyond palm oil. As IFRS S1 and S2 adoption expands, companies across commodity supply chains will face growing pressure to connect sustainability programmes with financial reporting.

For executives and investors, the direction is increasingly clear: sustainability data is moving closer to the core systems used to assess risk, resilience and access to capital.