We seek to meet the standards required by our stakeholders and customers so they can be confident of traceable, responsibly sourced products.
Of all the CPO we refine, 100 % can be traced back to a supplier mill.
Around 64% of CPO is sourced from our own plantations.
Of the FFB processed at mills we control, 100% can be traced back to a plantation of origin.
All our mills are are subject to certification audits, they are scheduled to be RSPO/ISPO certified by end 2019. Our Policy expects CPO suppliers to achieve ISPO certification, and states our preference for suppliers to be RSPO-certified.
Supplier engagement is underway, using our revised Responsible Supplier Guidelines 2017, and focuses on:
We use the RSPO certification process as part of our efforts to mitigate risk for labour, human rights, and social issues. As of December 2017, 53% of operational sites have been certified and audited (stage 2) by RSPO, the remainder is in stage 1 audit. Our whistle blower mechanism yielded no alerts of Policy breaches on human rights in 2017.
All RSPO and ISPO audits include criteria for assessing this risk for new suppliers.
See our RSPO/ISPO progress below
Plasma yields are generally higher than the national average, but we want to find ways to lift yields beyond plasma. In our smallholder project:
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 RSPO certification
Our Policy commits us to uphold and to deliver the principle of Free, Prior and Informed Consent (FPIC), particularly with respect to land acquisition involving local villages. We work to engage with communities and governments to establish land tenure and rights, likely impacts on communities using open negotiation processes and documented agreements. Before a new development takes place, a Social Impact Assessment is carried out to understand the baseline conditions and likely social impacts of development.
In 2017 smallholders FFB production accounted for 23% of our FFB production. We have traceability of all smallholders FFB to individual fields. However, achieving sustainability certification for smallholders has proved very challenging, as the certification comes with high costs for the smallholders. We have extended our target for smallholders certification to 2020, due to our estimate of the necessary time it will take to obtain the Sertfikat Hak Milik (SHM) or Freehold Title, and additional data required by RSPO.
A key target is for our mills, plantations and plasma smallholders to become RSPO-certified by 2019, with mills and nucleus estates also targeting ISPO certification by that date.
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 Research Institute for Food, Drugs and Cosmetics of the Indonesian Ulemas Council.