Executive summary — 5 Introduction — 7 Paying the price for sustainability................................................................................................................................8About this report.................................................................................................................................................................8Solidaridad’s role in palm oil...........................................................................................................................................8Co-signatories........................................................................................................................................................................9 Global state of palm oil production — 11 1.1Sustainability issues in oil palm sector.................................................................................12 1.1.1Deforestation and biodiversity......................................................................................................................131.1.2Greenhouse gas emissions..............................................................................................................................131.1.3Land rights...............................................................................................................................................................131.1.4Labor rights............................................................................................................................................................141.1.5Gender and social inclusion............................................................................................................................14 The need for more inclusivity in the palm oil value chain — 19 2.1Defining smallholders in the oil palm value chain...............................................................192.2Smallholder inclusivity...........................................................................................................202.3RSPO and smallholder inclusivity..........................................................................................212.4Smallholder livelihood............................................................................................................222.4.1Climate change vulnerability.........................................................................................................................222.4.2Increasing price volatility.................................................................................................................................222.4.3Sustainability requirements and lack of reward..................................................................................252.5Insufficient premium payments for RSPO certified palm oil..............................................252.5.1Sales of Independent Smallholder Credits..............................................................................................262.6Ecosystem payments and markets for smallholders..........................................................27 Continental spotlight — 31 3.1.1Country spotlight................................................................................................................................................323.1.1.1Indonesia..................................................................................................................................................323.1.1.2Malaysia.....................................................................................................................................................323.1.1.3Thailand.....................................................................................................................................................333.1.1.4India.............................................................................................................................................................333.1.2Social sustainability............................................................................................................................................333.1.2.1Prosperity.................................................................................................................................................333.1.2.2Land rights..............................................................................................................................................343.1.2.3Labor rights.............................................................................................................................................343.1.2.4Gender.......................................................................................................................................................343.1.3Deforestation, land conversion and biodiversity................................................................................343.1.4Smallholder livelihoods...........................