A review on adoption of the Malaysian Sustainable Palm Oil (MSPO) certification scheme

Abstract

The implementation of the Malaysian Sustainable Palm Oil (MSPO) certification scheme is essential for promoting sustainability within the palm oil industry. The palm oil industry plays a significant role as a global vegetable oil supplier but faces substantial environmental criticism. Since its mandatory adoption in 2018, the MSPO certification has aimed to ensure sustainability throughout the palm oil supply chain. Through a systematic literature review conducted from January to April 2024, utilizing databases such as Scopus, Web of Science, and Google Scholar, this study analyzed fifteen relevant studies spanning from 2016 to 2023. The examination identified key determinants influencing the adoption of MSPO certification among smallholders, including heightened awareness of sustainability, access to financial resources, governmental support, provision of training, and facilitation of market entry. However, challenges persist, including financial constraints, knowledge gaps, inadequate extension services, and restricted market opportunities. Notably, government assistance in the form of financial incentives and training programs has been instrumental in expediting the adoption process. This study underscores the importance of internal factors such as education level and age, highlighting the need to address these variables to promote sustainable practices effectively. Effective communication strategies and transparent mechanisms are crucial for enhancing smallholders’ understanding and compliance with certification standards. Targeted interventions are imperative for overcoming existing challenges and fostering broader adoption of sustainable practices among smallholder farmers in the palm oil industry.