Welcome to our Sustainability Home
IndoAgri total plantation
82% is Palm Oil
nucleus and plasma
RSPO CERTIFICATION UPDATE
of CPO production
in 2017 is RSPO-certified
Please read our new Sustainability Report 2017. Please find our Sustainability Policies here.
Sustainability Report 2017
At A Glance
- No primary forest clearance on our sites.
- No degradation of High Conservation Value (HCV) areas.
- High Carbon Stock (HCS) study completed at 11 estates.
- Improved fire risk control: IndoAgri invested in a further 72 fire towers, bringing our total to 183.
Reducing social conflict
- Zero fatalities in palm oil in 2017, 93% of IndoAgri sites have an certified SMK3 system in place.
- Strict compliance with minimum wage regulations, no operations or suppliers so far identified where collective bargaining or freedom from forced or child labour are at risk. No registered IndoAgri worker is below age 18.
- Seasonal workers' contracts respect government regulation.
Reducing social conflict
- Smallholders benefit from technical and financial support of IndoAgri and the RSPO certification process is used to ensure no risk for human rights or Free, Prior and Informed Consent (FPIC).
- No Sustainable Palm Oil Policy breaches relating to human rights in 2017.
- Community needs of all sites based on Social Impact Assessment (SIA).
- Another year of no new planting, as well as correct water levels maintained on peatlands under our control.
- Overall guidance on sustainability is led by the CEO in a think tank which comprises Executive Directors of the Group and principal subsidiaries.
- Best CEO (Mid Cap) Award at the Singapore Corporate Governance Awards 2017.
- Full transparency in ongoing enquiries on labour conditions.
Making a positive impact at work
We preserve areas of High Conservation Value (HCV) and High Carbon Stock (HCS) within our operations. Prior to any new planting we use the HCS Approach Toolkit which allows estates to quantify carbon stocks of assets and gauge FPIC in the community. We have conducted HCV assessment on all sites with resultant Rehabilitation Plans on 100% of sites. They are designed to enhance what is there, and principally cover riparian areas.
- Paraquat phase out
We have eliminated the use of Paraquat from our operations. All procurement of Paraquat ceased permanently in 2017.
- Innovation: yield
Whilst land is finite, and whilst we are working with an efficient and high-yielding crop, we are targeting better yields for commercial performance and to help deliver our Sustainable Palm Oil Policy. The main focus areas are:
- Crop health: fighting pests and diseases for productivity and waste minimisation.
- Careful fertiliser dosages, precision agronomy.
- Physical protection: using hydrology and ecology to promote beneficial plants, insects, and soil micro-fauna.
- Our Smallholder Programme aims to minimise economic risks they face by helping to improve yields; growers understand that their participation in our Smallholder Certification Programme will provide improved productivity, less pressure on natural forests (and safer labour practices).
- Yield maximisation advice and training on Good Agricultural Practices is provided on all plasma estates by specialist Plasma Assistants. Plasma and other smallholders are expected to meet the same quality criteria as nucleus estate suppliers.
- Smallholders Certification
Rising at 6am, Pairan, a KUD (cooperative) Group Manager, makes his way by moped along red clay roads to discuss the next steps with another smallholders.
IndoAgri's Smallholders Programme has 3,144 independent smallholders working to achieve RSPO certification. Pairan has helped one KUD in South Sumatra to be the first of the four cooperatives in our project to achieve it. He notes the benefits, the changes, the challenges.
"RSPO aims for environmental and social sustainability on the ground, and we want to use it so we can be more widely recognised for our efforts; the hard work and challenges are surmountable over time. In the future, smallholders will be more advanced, so buyers of RSPO products can be more confident in us".