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Responsible Sourcing Print ThisPrint this page

Of all the CPO we refine, 100 % can be traced back to a supplier mill.

Around 72% of CPO we process is sourced from our own plantations.

Of the FFB processed at mills we control, 100% can be traced back to a plantation of origin.

We seek to meet the standards required by our stakeholders and customers so they can be confident of traceable, responsibly sourced products.



Responsible Sourcing

Traceability

All our mills are subject to certification audits; We have extended our target of achieving 100% ISPO certification to 2023 due to new areas under development. Our Policy expects CPO suppliers to achieve ISPO certification.

Supplier engagement is underway, using our Responsible Supplier Guidelines, and focuses on:

Monitoring of Agronomic Conditions using Drones.
Technological advancements have enabled our usage of drones in monitoring replanted areas on our estates. Equipped with cameras and controlled remotely via computer or remote control, the drones take aerial photographs of plantation areas on a large scale , using photogrammetry techniques. We are able to quickly identify blocks with less ideal conditions and mitigate the issues to maximise yield while improving productivity.
Novel Trait Programme.
To improve harvesting efficiency in view of anticipated labour and machine shortages during bunch harvesting period, we embarked on the Novel Trait Programme in 2004, which aimed to combine three traits from different palm into a single palm that is more time and cost-efficient. Over the years, we have undergone several rounds of breeding trials and are finally ready to begin field experiments in 2021.

Human Rights Assessment

We use the ISPO certification process as part of our efforts to mitigate risk for labour, human rights, and social issues. We report that 100% of operational sites units have been formally assessed for human rights risk in 2020. The competence developed through ISPO also informs and guides our other sites which are preparing for ISPO certification. Our whistle blower mechanism yielded no alerts of Policy breaches on human rights in 2020.

All ISPO audits include criteria for assessing this risk for new suppliers.

Smallholders Engagement and Livelihoods

Smallholders are crucial stakeholders in our commitment to a traceable and sustainable supply chain. In Indonesia, smallholder plantations represent at least 40% of all palm oil cultivation, they generate exports and create jobs. The Indonesian Government plans to make ISPO mandatory for smallholder farmers; we aim to support and assist our smallholders achieve the ISPO certification once it is mandated. In 2019, we assisted ten KUDs in the first and second stage ISPO audits. One of the ten KUDs successfully completed the audit process and received ISPO certification in 2020.

Yield uplift is key to alleviating negative sustainability impacts. Plasma and other smallholders are expected to meet the same quality criteria as nucleus suppliers of FFB, so plasma plantations are closely aligned with our agricultural practices and management system.

If a grower is operating inefficiently it will erode their livelihood and create pressure to clear forests for agriculture. Our Smallholder Programme aims to minimise this risk. As plasma smallholders can be vulnerable to volatile market conditions, IndoAgri offers them free agronomic advice and training and makes essential resources such as seed stocks and fertilisers affordable to them using through discounts. We also help them to build the capacity of cooperatives on the journey to achieving ISPO certification. Our engagement with smallholders also involve training and workshop activities on sustainable palm oil.

Sustainable Oil Palm Smallholder Forum.
Indoagri launched the Sustainable Oil Palm Smallholder Forum (Forum Petani Kelapa Sawit Berkelanjutan) in 2019, in collaboration with our long-time partner and non-profit SNV. We invited KUDs and smallholders to be a part of this forum, through which we conducted capacity building and training programmes on HCV management, better farming techniques to increase productivity, leadership and management skills.

Sourcing Goals

A key target is for our mills and nucleus plantations to become ISPO-certified by 2023.



Food Safety

We recorded no incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products in 2020.

In 2020, 42% or 360,543 tonnes of CPO Produced by EOF Division were certified to Food Safety Management Standard FSSC 22000.

IndoAgri's experienced laboratory team account for food safety risk while working on specific product formulations to meet evolving needs of customers. Our Quality Control teams undergo regular management training on hygiene, safety and Halal risk and control. They are at the heart of our product quality assurance.

An approved Halal certification system applies to all our products and refineries, it is accredited to LPPOM MUI, The Assessment Institute for Foods, Drugs And Cosmetics, the Indonesian Council of Ulama.

Marketing.
In line with increased digitalisation and physical distancing in 2020, we strengthened our social media presence to continue to engage customers over the pandemic. For example, our cooking demos were hosted weekly on our Instagram page, @Palmia_ID, and were well-received by individual consumers and SMEs. We plan to continue these engagements beyond 2020.

Food Safety and Quality Goals

Sustainability