76 SUSTAINABILITY RESPONSIBLE SOURCING PURCHASING INDEPENDENT SMALLHOLDER RSPO CREDITS Independent smallholder RSPO credits provide farmers the means to participate in the global sustainable palm oil market. Purchasing smallholder credits provides farmers an opportunity to receive a premium for the sale of sustainable palm, which provides them with additional funds to further invest in their businesses and communities. To support smallholder farmers, we increased our purchase of RSPO Independent Smallholder credits to represent just over 29% of our annual palm volumes in 2020 (up from 25% in fiscal 2020). Through these purchases, we supported groups containing more than 2,200 independent smallholder palm oil farmers in Indonesia and Malaysia. PROJECT LAMPUNG In 2019, we launched Project Lampung in partnership with Solidaridad, a global NGO; BASF, a long-term supplier; the Roundtable on Sustainable Palm Oil; Business Watch Indonesia; and the Indonesian Agency for Agricultural Extension, a local farmers association, to build the capacity of 1,000 smallholder farmers in the Lampung Province of Indonesia to produce sustainable palm oil and improve incomes and livelihoods. A key component of the project includes the development and training of farmers in good agricultural and best management practices that protect the environment and the health of workers. While the training program was delayed due to COVID-19, more than 50% of farmers participated in Farmer Field School training in fiscal 2021, with the remaining farmers to be trained by the end of calendar 2021, pending COVID-19 restrictions. MOSAIK INITIATIVE In fiscal 2021, The ELCCF approved and initiated a grant to ASD to kickstart an innovative pooled-funding model to generate large-scale positive impact on the ground in priority production landscapes. The grant is to be used to expand the Mosaik Initiative, a proven jurisdictional certification approach to sustainable palm production and landscape management and restoration in Central Kalimantan, Indonesia, led by nongovernmental organization partner Institute Penelitian Inovasi Bumi (Inobu). COMMUNITY ENGAGEMENT More than 3 million smallholder farmers produce more than 40% of global palm oil and rely on palm oil to support their livelihoods. These small-scale farmers face significant challenges, including limited access to markets and finance; lack of training on agricultural best practices, which leads to low productivity; and land tenure insecurity. Effectively addressing the challenges related to inclusive sustainable palm sourcing requires collaboration among governments, civil society, local communities, and private enterprise. We are committed to supporting smallholder farmers by helping to build their capacity and improve their livelihoods with the goal of increasing their participation in the palm oil supply chain. Initiatives include: Read more about palm oil on our website.