Terms of Reference: Building the Business Case for India’s Sustainable Palm Oil: Evidence, Engagement, and Advocacy for India

Stichting IDH (“IDH”) accelerates and up-scales sustainable trade by building impact-oriented coalitions of front running companies, civil society, governments, knowledge institutions and other stakeholders in several commodity sectors. We convene the interests, strengths and knowledge of public and private partners in sustainability commodity programs that aim to mainstream international and domestic commodity markets. We jointly formulate strategic intervention plans with public and private partners, and we co-invest with partners in activities that generate public goods.

On basis of these Terms of Reference (“ToR”), IDH aims to select a service provider to develop the policy briefs and strategic papers along with series of convening and advocacy for advancing India’s sustainable palm oil pathway and adoption.

India plays a dual role in the global palm oil landscape: as the world’s largest importer and as an emerging domestic producer. The Government of India’s National Mission on Edible Oils – Oil Palm (NMEO-OP) has catalyzed investments to scale up domestic production. However, this expansion must be strategically steered to avoid environmental degradation, regulatory backlash, and social friction.

Global markets are increasingly demanding deforestation-free, traceable, and equitable palm oil. Instruments like the EU Deforestation Regulation (EUDR) and evolving ESG frameworks place mounting pressure on companies to demonstrate sustainable sourcing. If India's domestic palm oil production is not aligned with such sustainability standards, future market access, investment flows, and even policy credibility are at risk.

Over the past two years, IDH has supported multiple studies and stakeholder engagements that contextualize global sustainability norms to India’s landscape. These efforts have laid the foundation for defining India-aligned sustainability criteria that reflect both global expectations and domestic realities.

This proposed study will build on IDH’s previous work with a clear, business-oriented focus:

• For the Government of India: Establishing national sustainability criteria under NMEO-OP will help position India as a responsible producer and sourcing country, signaling its commitment to sustainable growth and providing a level playing field for industry players.

• For the Private Sector: Demonstrating that early investment in sustainability safeguards against significantly higher financial and reputational risks in the future.

• For Farmers: Sustainability efforts led by the government and private sector will help farmers achieve higher yields, lower production costs, and better market prices for sustainably grown palm oil, improving their incomes and long-term resilience.

Objectives

• Design and Develop Sustainability Criteria for palm oil production and imports, aligned with India’s national priorities and global best practices.

• Build Robust Business Cases demonstrating the economic, environmental, and social benefits of adopting the criteria for both domestic and import supply chains.

• Engage and Consult Stakeholders from government, private sector, and civil society to gather feedback, understand expectations, and ensure inclusivity in framework development.

• Facilitate Policy Integration and Alignment by working with relevant ministries and state governments to embed the criteria into NMEO-OP, related missions, and import regulations.

• Drive National Adoption through targeted advocacy, consensus-building workshops, and the delivery of an actionable implementation plan for long-term institutional uptake.

To ensure a structured and results-driven approach, the assignment is designed in two sequential phases of four months each. The first phase will focus on analysis, business case development, framework design, and extensive engagement with both government and private sector stakeholders to gather feedback and expectations. The second phase will concentrate on refining the framework based on these inputs, facilitating state and national-level advocacy, and supporting the integration of the criteria into relevant policies and programs. This phased approach enables comprehensive groundwork in Phase 1, followed by targeted policy alignment and adoption in Phase 2.

Phase 1 – Criteria Design, Business Case Development, and Stakeholder Engagement (4 months)

• Review and Synthesis of Existing Research:

• Analyse the body of sustainability-focused research supported by IDH and other credible sources.

• Map key principles from global standards (EUDR, NDPE, RSPO, MSPO/ISPO) to Indian regulatory frameworks (Forest Conservation Act, Biodiversity Act, ESG mandates, etc.).

Drafting of India-Aligned Sustainability Criteria:

• Develop a tiered framework for both domestic production and imports:

• Core Criteria: Minimum compliance requirements such as legality, traceability, zero-deforestation, no peatland use, no child/forced labour, and smallholder benefits.

• Progressive Criteria: Biodiversity conservation, soil health management, fair pricing, regenerative practices.

• ESG Cluster: Grouped under Environmental, Social, and Governance dimensions for ease of adoption and monitoring.

Business Case Development – Private Sector:

• Conduct structured interviews and/or focus group discussions with at least 10 key companies across the palm oil value chain (processors, refiners, FMCGs, retailers, traders).

• Identify sourcing models, ESG risks, missed opportunities, investment appetite, and enabling conditions for sustainability adoption.

• Quantify financial implications of adopting the criteria, including cost savings, compliance benefits, access to premium markets, and ESG-linked investment opportunities.

Business Case Development – Government:

• Assess alignment with India’s national development priorities, trade commitments, and climate objectives.

• Analyse cost implications, benefits for smallholder livelihoods, and opportunities for positioning India in international trade narratives.

Stakeholder Consultations:

• Organise targeted consultations with government, industry, civil society, and farmer organisations to gather feedback on the draft criteria.

• Document inputs, concerns, and recommendations for integration into the revised framework.

Draft Criteria Framework & Roadmap:

• Synthesize findings into a Draft Sustainability Criteria Framework and Adoption Roadmap for discussion in Phase 2.

Phase 2 – Policy Integration, Advocacy, and National Adoption (6 months)

• Framework Finalisation:

• Incorporate all stakeholder feedback from Phase 1 and finalise the sustainability criteria framework.

Advocacy and Consensus Building:

• Conduct 2–3 multi-stakeholder roundtables with ministries, private sector leaders, and state authorities to build consensus on adoption pathways (e.g., voluntary codes, public schemes, private protocols).

Policy Integration Support:

• Draft one or more policy-facing advocacy tools such as a White Paper, draft guidelines, and/or ESG-linked incentive design.

• Map institutional mandates and administrative windows for integrating the criteria into NMEO-OP, import regulations, state-level missions, and ESG reporting frameworks.

Capacity Building and State-Level Dialogues:

• Facilitate state-level workshops with government and industry to prepare for practical roll-out.

Final Adoption of National Standards:

• Getting the adoption of voluntary sustainable palm oil criteria for domestic and imports by government of India.

Deliverables

The deliverables of this assignment will be:

Phase 1 : Sep–Dec 2025

Key Activities: Review & mapping of standards; draft tiered criteria; private sector consultations; government engagement; business case development; targeted stakeholder dialogues

Deliverables:

• Draft Sustainability Criteria Framework
• Business Case Report (Govt & Private Sector)
• Consultation Summary Reports
• Draft Adoption Roadmap

Phase 2: Jan–Jun 2026

Key Activities: Incorporation of feedback; multi-stakeholder roundtables; state and national advocacy dialogues; policy integration support; White Paper drafting; roadmap finalization

Deliverables:

• Final Sustainability Criteria Framework
• White Paper / Advocacy Package
• Convening Reports (3)
• Policy Mapping & Integration Note
• Final National Adoption of sustainability framework

The procedure will be as follows:

• Publishing the tender and/or inviting services providers to submit a proposal based on this ToR.
• Evaluation of the proposals by the chair of the evaluation committee. The 3 proposals that receive the highest scores will be presented to the evaluation committee. The chair of the evaluation committee and the evaluation committee will evaluate the proposals based on the selection criteria as published in this ToR. OR Evaluation of the proposals by the evaluation committee. The evaluation committee will evaluate the proposals based on the selection criteria as published in this ToR.
• Decision on selection of the service provider.
• Inception meeting with the selected service provider.

The schedule below indicates the timelines for the tender procedure:

• ToR published                                                 20.08.2025
• Deadline for submission of proposals*         10.09.2025
• Selection of service provider                         20.09.2025
• Start of assignment                                        01.10.2025

* Proposals submitted after the deadline will be returned and will not be considered in the tender procedure.

After the deadline to submit a proposal has passed, the IDH evaluation committee will assess the proposals.

The proposals will first be tested for completeness:

• The absence of the documents referred to in Section 6 of this document can lead to exclusion from further participation in the tender procedure. This is also the case when minimum requirements listed in this ToR are not met.
• If the proposal is complete, the selection committee will evaluate the proposal based on the criteria as set forth in Section 6.

The assignment will be awarded to the service provider with the most economically advantageous tender. This is determined based on the evaluation criteria price and quality (see Section 6).

IDH will reject the proposal if any illegal or corrupt practices have taken place in connection with the award or the tender procedure.

IDH is requesting that service providers submit a proposal of no more than 15 pages (excluding CVs, annexes, and references). The proposal must be handed in a MS Word or PowerPoint version next to a PDF submission to facilitate any copy-and-pasting of content that we may need during evaluation.

The proposal must at least include:

Content:

• A brief about the organization should be completed in a maximum 2 pages.

• Relevant experience in conducting similar kinds of assignments, minimum three credentials in last 3 years of such studies need to be submitted with broad activities and outcomes. Details of past credentials should not exceed more than 3 pages.

• A section on “Our Understanding” of the assignment where the bidder has to clearly articulate their understanding on the brief ask from the ToR. Our understanding section has to be very precise and should be restricted to the limit of 2 pages.

• A succinct, well-documented approach and methodology addressing the requirements set out this ToR. We request that the proposal structure matches the selection criteria as closely as possible. Approach and methodology adopted to complete the study should not exceed more than 8 pages.

• An overview of the project team, including the CVs of the project team members.

• Budget (as per template in Annex 1),

• Statement on Ground for exclusion (see Section 7 below).

Administrative:

• Completed detail request form (Annex 4),

• Copy of most recent (audited) financial accounts, if available,

• Statement of acceptance draft contract (Annex 5).

The proposal must be submitted to Vidit Ajmera at ajmera@idhtrade.org on or before 10th September 2025 at 05:00 pm IST.

Applicants shall be excluded from participation in this tender procedure if:

• they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;
• they or persons having powers of representation, decision-making or control over them have been convicted of an offence concerning their professional conduct by a judgment which has the force of res judicata;
• they have been guilty of grave professional misconduct proven by any means which the IDH can justify;
• they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established, or with those of the Netherlands or those of the country where the contract is to be performed;
• they or persons having powers of representation, decision making of control over them have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organization, money laundering or any other illegal activity.
• Optionally: conflict of interest (see below).

Applicants must confirm in writing that they are not in one of the situations as listed above.

• Applicants shall not make use of child labor or forced labor and/or practice discrimination and they shall respect the right to freedom of association and the right to organize and engage in collective bargaining, in accordance with the core conventions of the International Labor Organization (ILO).

Conflict of interest

Applicants shall not have a conflict of interest in submitting a tender application to IDH. Conflict of interest refers to any situation where an Applicant’s application may be compromised or not impartial and objective for reasons involving family, personal life, political or national affinity, economic interest or any other connection or shared interest with another person. Should the Applicant suspect any potential conflicts of interest on its part, it shall submit a written statement setting forth all conditions and circumstances of such potential conflict(s) of interest to IDH together with its application. A conflict of interest that cannot be solved effectively by less restrictive means constitutes an optional exclusion ground to an applicant, pursuant to article 2.87(1)(e) of the Dutch Procurement Act.

Minimum criteria

Applicants or Proposals not fulfilling the minimum criteria will be excluded from the tender procedure and will not be assessed against the other criteria.

• Minimum 5 years of institutional experience in sustainability, ESG advisory, or sustainable agriculture programs, with a proven track record in Agri-commodity supply chains (experience in palm oil is preferred).
• Minimum average annual financial turnover of INR 10 Cr in last 3 years.
• Demonstrated familiarity with global sustainability standards and frameworks as well as the Indian agricultural policy landscape.
• Documented experience in facilitating high-level multi-stakeholder engagements, including government, private sector, civil society, and producer groups.
• Strong in-house capacity for research, data analysis, and policy/market studies, with proven ability to translate insights into compelling policy and business narratives.
• Registered legal entity with at least 3 consecutive years of audited financial statements, and not blacklisted by any government, multilateral, or donor agency.

The assignment will be awarded to the Applicant with the most economically advantageous tender. The most economically advantageous tender is determined on the basis of the evaluation criteria of Price and Quality.

The evaluation criteria are compared and weighed according to the procedure below. This concerns a general outline of the scoring methodology and an explanation how the service provider can demonstrate compliance with the requirements.

Step 1 - Criterion Quality

Evaluation scores will be awarded for each of the components. The evaluation committee will score each component unanimously.

The proposal will be assessed based on the following selection criteria:

Proposal overall

• Max Grading: 5
• Criteria: The extent to which the proposal demonstrates a comprehensive understanding of the assignment and meets the requirements outlined in Section 3 of this ToR. This includes:
  • Clear articulation of objectives and outcomes.
  • Evidence that the proposed approach can deliver all required deliverables within the timeframe.
  • A coherent and feasible solution that addresses both technical and practical dimensions of the assignment.

Design and Development process

• Max Grading: 5
• Criteria: The extent to which the Applicant presents a clear, structured, and feasible methodology for delivering the assignment. This includes:
  • A well-defined process for design, consultation, and development of outputs.
  • Demonstration of how IDH will be engaged and consulted at key stages.
  • Clarity on the inputs required from IDH (human resources, digital assets, other support) and assurance that these are proportionate and not overly demanding.

Track record

• Max Grading: 5
• Criteria: The extent to which the Applicant demonstrates relevant expertise and proven experience to deliver the assignment. This includes:
  • Evidence of delivering similar assignments in sustainability, ESG, agriculture, or commodities (preferably palm oil).
  • Qualifications, relevant experience, and time allocation of the proposed project team.
  • Clear description of team roles and responsibilities.
• Relevant experience in the non-profit or development sector will be considered an advantage.

The evaluation committee will unanimously score each component by assigning scores from 1 to the maximum grading, with the maximum grading representing optimal performance on the component and 1 representing extremely poor performance on the respective component.

Step 2 - Criterion price

The Applicant shall follow the Budget template (attached as Annex 1 to these Terms of Reference).

Please note that a combined price in Euros (excluding VAT) is to be presented. This is to be broken down by team member rate and hours.

Given the non-for-profit nature of IDH, we encourage Applicant to clearly mention if the budget might be positively impacted by partial pro-bono work or reduced rate as a contribution to the successful delivery of the assignment.

The criterion of assessment is “the best price for the proposed level of quality” with a maximum grading

of 5.

Step 3 - Weighting

The final score will be weighted 75% on Quality and 25% on Price.

If scores of service providers are equal, priority will be based on the total scores that were given for the Criterion Quality. The assignment will be awarded to the service provider that has received the highest score for the Criterion Quality. If the evaluation of the Criterion Quality does not lead to a distinction, the score for the component “Proposal overall” will be decisive. If this does not lead to a distinction, the ranking will be determined by the drawing of lots.

Award

Once IDH has decided to which Applicant it intends to award the assignment, a written notification thereof is sent to all Applicants participating in the tender procedure.

The Applicant is contracted via a letter of assignment, following IDH’ s template.

Please note: the payment schedule set out in the letter of assignment template may be amended, subject to unilateral decision of IDH.

All participants will ensure that all its contacts with IDH, with regards to the tender, during the tender procedure take place exclusively in writing by e-mail to Vidit Ajmera via ajmera@idhtrade.org . The participants is thus explicitly prohibited, to prevent discrimination of the other participants and to ensure the diligence of the procedure, to have any contact whatsoever regarding the tender with any other persons of IDH than the person stated in the first sentence of this paragraph.

The documents provided by or on behalf of IDH will be handled confidentiality. The Applicants will also impose a duty of confidentiality on any parties that it engages. Any breach of the duty of confidentiality by the Applicant or its engaged third parties will give IDH grounds for exclusion of the Applicant, without requiring any prior written or verbal warning.

All information, documents and other requested or provided data submitted by the Applicant will be handled with due care and confidentiality by IDH. The provided information will after evaluation by IDH be filed as confidential. The provided information will not be returned to the Applicant.

IDH respects the effort and time that participants are expected to put into this tender procedure. However, IDH has to use its financial means as economically as possible. Therefore, IDH will not remunerate participants for their interest and/or participation in the tender procedure.

IDH reserves the right to update, change, extend, postpone, withdraw, or suspend the ToR, this tender procedure, or any decision regarding the selection or contract award. IDH is not obliged in this tender procedure to make a contract award decision or to conclude a contract with a participant.

Participants in the tender procedure cannot claim compensation from IDH, any affiliated persons or entities, in any way, in case any of the afore-mentioned situations occur.

By handing in a proposal, participants accept all terms and reservations made in this ToR, and subsequent information and documentation in this tender procedure.

Annex 1: Budget template 

Annex 2: Detail request form 

Annex 3: IDH General Terms and Conditions for Services 

Annex 4: Statement of acceptance 

Annex 5: Statement on grounds of exclusion