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Royal Lestari Utama

Natural rubber assessment
  • Latest update: March 2021
  • Next scheduled: March 2022

Show media reports (15) Show ESG scores Show supply chain scores Modify score weighting

Company assessment: Royal Lestari Utama – March 2021

Assessment date:

Score by disclosure type:

Total: 55% 66.5 / 121
  • Organisation: 15.5 / 29 53.5%
  • Policy: 30.5 / 51 59.8%
  • Practice: 20.5 / 41 50%
  • Self-reported: 2.5 / 41 6.1%
  • External: 18 / 41 43.9%
  • Sustainability policy and leadership Sustainability policy and leadership
    6.5 / 10 65%
    • Organisation: 3 / 5 60%
    • Policy: 1.5 / 2 75%
    • Practice: 2 / 3 66.7%
    • Self-reported: 1 / 3 33.3%
    • External: 1 / 3 33.3%
    • Y
      1 / 1

      1. Sustainable natural rubber policy or commitment for all its operations?

      The company has a sustainability policy.

    • P
      0.5 / 1

      2. Sustainable natural rubber policy or commitment applies to all suppliers excluding smallholders?

      The company has a sustainability policy that applies throughout its value chain. It is not clear if this applies to all suppliers.

    • P
      0.5 / 1

      3. High-level position of responsibility for sustainability?

      An Environmental and Social Advisory Board (ESAB) provides advice on the implementation of the company's sustainability strategy and is comprised of senior management. However, a singular high position of responsibility could not be found outside of the Board.

    • Y
      1 / 1

      4. One or more members within the board of the company have responsibility for sustainability?

      Corporate Affairs Director.

    • N
      0 / 1

      5. Percentage or number of women in senior management team?

    • P
      0.5 / 1

      6. Percentage or number of women board members?

      1 (25%) - Not directly reported by the company, calculated from website information.

    • Y
      1 / 1

      7. Member of multiple industry schemes or other external initiatives to reduce negative environmental or social outcomes associated with natural rubber production?

      [Externally verified] Partnership for Forests, Tropical Landscapes Finance Facility.

    • Y
      1 / 1

      8. Collaboration with stakeholders to reduce negative environmental or social outcomes associated with natural rubber production?

      The company works with multiple NGOs, including WWF and WCS as well as Proforest, Cirad, and Demeter, and the Indonesian government at a local scale.

    • Y
      1 / 1

      9. Sustainability report published within last two years?

      Sustainability Report 2019.

    • N
      0 / 1

      10. Climate risks assessment available?

  • Landbank, maps and traceability Landbank, maps and traceability
    9 / 11 81.8%
    • Organisation: 8 / 10 80%
    • Policy: 1 / 1 100%
    • Practice: 0 / 0 0%
    • Self-reported: 0 / 0 0%
    • External: 0 / 0 0%
    • Y
      1 / 1

      11. Lists countries and operations?

      Indonesia (plantations and processing).

    • Y
      1 / 1

      12. Total land area managed/controlled for natural rubber (ha)?

      88,761 - Report total area of 88,761 ha.

    • Y
      1 / 1

      13. Total natural rubber planted area (ha)?

      20,000 - The figure excludes scheme smallholder areas.

    • Y
      1 / 1

      14. Scheme smallholders/outgrowers planted area (ha)?

      378 - Figure from 2020.

    • Y
      1 / 1

      15. Unplanted area (areas designated for future planting) (ha)?

      14,000 - Unplanted area: 14,000 ha.

    • Y
      1 / 1

      16. Conservation set-aside area, including HCV area (ha)?

      28,353 - Reports conservation set-aside area: 28,353 ha.

    • N
      0 / 1

      17. Maps of estates/management units?

      Maps are available, however, they are not dated or geo-referenced.

    • N
      0 / 1

      18. Management plans for natural rubber production are available for all estates/management units?

    • Y
      1 / 1

      19. Number of company owned natural rubber processing facilities?

      1 - The company reports that it has one processing facility (a remilling factory in Palaran, East Kalimantan).

    • Y
      1 / 1

      20. Names and coordinates of company owned natural rubber processing facilities?

      The company has published the location of the mill which can be found using a search engine.

    • Y
      1 / 1

      21. Commitment to traceability of the whole supply chain?

      The company commits to establish a transparent supply chain.

  • Certification standards/Sustainability initiatives Certification standards/Sustainability initiatives
    0.75 / 5 15%
    • Organisation: 0 / 1 0%
    • Policy: 0 / 1 0%
    • Practice: 0.8 / 3 25%
    • Self-reported: 0 / 3 0%
    • External: 0.8 / 3 25%
    • P
      0.75 / 1

      22. Member of the Global Platform for Sustainable Natural Rubber (GPSNR)?

      [Externally verified] The company is a joint venture between Michelin and Barito Pacific and Michelin is a GPSNR member.

    • N
      0 / 1

      23. Submitted self-declaration form for the Sustainable Natural Rubber Initiative (SNR-i)?

    • N
      0 / 1

      24. Percentage area (ha) FSC certified?

    • N
      0 / 1

      25. Certified under voluntary sustainability certification scheme?

    • N
      0 / 1

      26. Commitment to become 100% certified under voluntary sustainability certification scheme?

  • Deforestation and biodiversity Deforestation and biodiversity
    8 / 13 61.5%
    • Organisation: 0.5 / 1 50%
    • Policy: 3.5 / 8 43.8%
    • Practice: 4 / 4 100%
    • Self-reported: 0 / 4 0%
    • External: 4 / 4 100%
    • Y
      1 / 1

      27. Commitment to zero deforestation or zero conversion of natural ecosystems?

      The company has a no deforestation commitment.

    • P
      0.5 / 1

      28. Commitment to zero deforestation or zero conversion of natural ecosystems applies to all sourcing excluding smallholders?

      The company's commitment to zero deforestation of natural ecosystems applies throughout its value chain. It is not clear if this applies to all suppliers.

    • P
      0.5 / 1

      29. Criteria for defining deforestation?

      The company uses HCV and HCS definitions to identify areas illegible for conversion. However, it does not specify a cut-off date beyond which deforestation or conversion would not be accepted.

    • Y
      1 / 1

      30. Evidence of monitoring deforestation?

      [Externally verified] The company set up a partnership with Bukit Tigapuluh National Park to jointly patrol areas.

    • P
      0.5 / 1

      31. Amount of illegal/non-complaint deforestation recorded in own operations?

      The company reports the number of illegal activities recorded during patrolling however it is unclear how many of these incidents were illegal deforestation.

    • N
      0 / 1

      32. Commitment to restoration of non-compliant deforestation/conversion?

    • Y
      1 / 1

      33. Implementing a landscape or juridictional level approach?

      [Externally verified] The company works together with the Tiga Puluh National Park and local communities and other stakeholders on a conservation landscape project.

    • Y
      1 / 1

      34. Commitment to biodiversity conservation?

      The company provides a commitment to biodiversity conservation.

    • Y
      1 / 1

      35. Identified species of conservation concern, referencing international or national system of species classification?

      [Externally verified] The company states it has identified species of conservation concern according to IUCN, CITES, and Indonesian regulations including the Sumatran tiger and Sumatran elephant.

    • Y
      1 / 1

      36. Examples of species and/or habitat conservation management?

      [Externally verified] The company states that it has a "dedicated Conservation Team working to prevent poaching, protect animals and reduce human/animal conflict" and mentions patrols conducted with WCS and the fitting of GPS collars on a group of Sumatran elephants as well as the creation of a wildlife corridor for them to use.

    • N
      0 / 1

      37. Commitment to no hunting or only sustainable hunting of species?

    • P
      0.5 / 1

      38. Commitment to protect areas from illegal activities?

      The company has a commitment to prevent illegal activities in HCV/HCS areas only and has a team dedicated to preventing poaching.

    • N
      0 / 1

      39. Commitment not to use genetically modified organisms?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    4 / 7 57.1%
    • Organisation: 0 / 0 0%
    • Policy: 2.5 / 3 83.3%
    • Practice: 1.5 / 4 37.5%
    • Self-reported: 0 / 4 0%
    • External: 1.5 / 4 37.5%
    • Y
      1 / 1

      40. Commitment to conduct High Conservation Value (HCV) assessments?

      The company has a commitment to not develop HCV areas and to protect them.

    • P
      0.75 / 1

      41. High Conservation Value (HCV) assessments available?

      [Externally verified] Three integrated HCV-HCS reports have been submitted and are under review at the time of assessment.

    • N
      0 / 1

      42. High Conservation Value (HCV) management and monitoring plans available?

    • P
      0.5 / 1

      43. Commitment to the High Carbon Stock (HCS) approach?

      The company has a commitment to not develop HCS forests and to protect them but does not provide a clear definition or reference to the HCS Approach toolkit.

    • P
      0.75 / 1

      44. High Carbon Stock (HCS) assessments available?

      [Externally verified] Three integrated HCV-HCS reports have been submitted and are under review at the time of assessment.

    • Y
      1 / 1

      45. Commitment to conduct social and environmental impact assessments (SEIAs)?

      The company provides a commitment to conduct social and environmental impact assessments.

    • N
      0 / 1

      46. Social and environmental impact assessment (SEIAs) undertaken, and associated management and monitoring plans?

  • Soils, fire and GHG emissions Soils, fire and GHG emissions
    6.5 / 15 43.3%
    • Organisation: 1.5 / 4 37.5%
    • Policy: 3 / 6 50%
    • Practice: 2 / 5 40%
    • Self-reported: 0 / 5 0%
    • External: 2 / 5 40%
    • N
      0 / 1

      47. Commitment to no planting on peat of any depth?

    • N
      0 / 1

      48. Landbank or planted area on peat (ha)?

    • N
      0 / 1

      49. Implementation of commitment to no planting on peat of any depth?

    • N
      0 / 1

      50. Commitment to best management practices for soils and peat?

    • N
      0 / 1

      51. Evidence of best management practices for soils and peat?

    • Y
      1 / 1

      52. Commitment to best/sustainable tapping practices?

      The company has published this commitment.

    • N
      0 / 1

      53. Evidence of best/sustainable tapping practices?

    • Y
      1 / 1

      54. Commitment to zero burning?

      Committed to zero burning.

    • Y
      1 / 1

      55. Evidence of fire monitoring and management?

      [Externally verified] The company provides examples and evidence for monitoring and management of fire.

    • Y
      1 / 1

      56. Details/number of hotspots/fires in company estates/management units?

      The company reports both the number of fires registered (108) and hectares burnt (143.04 ha).

    • N
      0 / 1

      57. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?

    • P
      0.5 / 1

      58. GHG emissions intensity?

      The company reports GHG emission figures but not as intensity (tCO2).

    • N
      0 / 1

      59. GHG emissions from land use change?

    • Y
      1 / 1

      60. Progress towards commitment to reduce GHG emissions intensity?

      [Externally verified] The company reports that it is a carbon sink (i.e. emissions are lower than sequestration).

    • Y
      1 / 1

      61. Methodology used to calculate GHG emissions?

      Verified Carbon Standard's VM0037 methodology.

  • Water, chemical and pest management Water, chemical and pest management
    4.5 / 17 26.5%
    • Organisation: 0 / 2 0%
    • Policy: 3 / 6 50%
    • Practice: 1.5 / 9 16.7%
    • Self-reported: 1.5 / 9 16.7%
    • External: 0 / 9 0%
    • N
      0 / 1

      62. Time-bound commitment to improve water use intensity?

    • N
      0 / 1

      63. Water use intensity?

    • N
      0 / 1

      64. Progress towards commitment on water use intensity?

    • N
      0 / 1

      65. Time-bound commitment to improve water quality (BOD and COD)?

    • N
      0 / 1

      66. Progress towards commitment on water quality (BOD and COD)?

    • P
      0.5 / 1

      67. Treatment of effluents from processing facilities?

      The company states some facilities are equipped with wastewater treatment systems but no detail is given.

    • N
      0 / 1

      68. Proportion of processing facilities with closed-loop water treatment system?

    • N
      0 / 1

      69. Commitment to protect natural waterways through buffer zones?

    • N
      0 / 1

      70. Implementation of commitment to protect natural waterways through buffer zones?

    • P
      0.5 / 1

      71. Reducing odours from natural rubber processing facilities?

      The company mentions the use of biofilters in some processing facilities but gives no detail.

    • Y
      1 / 1

      72. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

      The company commits to the International Finance Corporation's Performance Standards which cover minimising the use of chemicals.

    • Y
      1 / 1

      73. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides?

      The company commits to the International Finance Corporation's Performance Standards which explicitly mentions no use of WHO Class 1A and 1B pesticides.

    • Y
      1 / 1

      74. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

      The company commits to the International Finance Corporation's Performance Standards which explicitly mentions no use of chemicals listed under the Stockholm Convention.

    • N
      0 / 1

      75. Chemical usage per ha or list of chemicals used?

    • N
      0 / 1

      76. Implementation of commitment to reduce chemical usage?

    • N
      0 / 1

      77. Integrated Pest Management (IPM) approach?

    • P
      0.5 / 1

      78. Waste management system in place to avoid negative impacts?

      The company states it has a waste management system but only limited details are provided. Information is not externally verified.

  • Community, land and labour rights Community, land and labour rights
    19 / 27 70.4%
    • Organisation: 2 / 5 40%
    • Policy: 12 / 16 75%
    • Practice: 5 / 6 83.3%
    • Self-reported: 0 / 6 0%
    • External: 5 / 6 83.3%
    • P
      0.5 / 1

      79. Commitment to human rights?

      The company provides a commitment to respect human rights but it does not make a reference to the Universal Declaration of Human Rights.

    • P
      0.5 / 1

      80. Commitment to human rights applies to all sourcing excluding smallholders?

      The company provides a commitment to respect human rights which apply throughout the value chain but it does not make a reference to the Universal Declaration of Human Rights.

    • Y
      1 / 1

      81. Commitment to respect Indigenous and local communities' rights?

      Committed to respecting Indigenous and local communities' rights.

    • Y
      1 / 1

      82. Commitment to respect legal and customary land tenure rights?

      Committed to respecting legal and customary land tenure rights.

    • Y
      1 / 1

      83. Commitment to free, prior and informed consent (FPIC)?

      Committed to FPIC.

    • P
      0.5 / 1

      84. Commitment to free, prior and informed consent (FPIC) applies to all suppliers excluding smallholders?

      The company provides a commitment to free, prior, and informed consent (FPIC) which applies throughout the value chain. However, it is unclear if this commitment explicitly applies to all suppliers.

    • P
      0.5 / 1

      85. Details on Free, prior and informed consent (FPIC) process available?

      The company provides limited information on the FPIC process.

    • Y
      1 / 1

      86. Examples of local stakeholder engagement to prevent conflicts?

      [Externally verified] The company runs regular local stakeholders dialogues attended by RLU staff, community representatives, local authorities, and NGO partners.

    • Y
      1 / 1

      87. Details of process for addressing land conflicts available?

      Provides details of the process for addressing land conflicts.

    • P
      0.5 / 1

      88. Supports the inclusion of women across natural rubber operations, including addressing barriers faced?

      The company commits to encourage women in the workplace but does not publish evidence of tackling the barriers faced.

    • Y
      1 / 1

      89. Commitment to mitigate impacts on food security?

      The company provides a commitment to mitigate the impacts on food security.

    • Y
      1 / 1

      90. Progress on commitment to mitigate impacts on food security?

      [Externally verified] The company provides examples of how it is mitigating impacts on food security and states that more than 804 farmers have been trained in 2019.

    • Y
      1 / 1

      91. Commitment to provide essential community services and facilities?

      The company provides a commitment to provide essential community services and facilities.

    • Y
      1 / 1

      92. Progress on commitment to provide essential community services and facilities?

      [Externally verified] The company has a community development program covering education, health, disaster relief, facilities, and infrastructure.

    • Y
      1 / 1

      93. Commitment to provide business/work opportunities for local communities?

      Provide business/work opportunities for local communities.

    • P
      0.5 / 1

      94. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles?

      The company is committed to Fundamental ILO Conventions except Right to Organise and Collective Bargaining (No. 98) and Equal Remuneration (No. 100).

    • Y
      1 / 1

      95. Commitment to eliminate gender related discrimination with regards to employment?

      The company provides a commitment to eliminate gender related discrimination with regards to employment.

    • N
      0 / 1

      96. Progress on commitment to eliminate gender related discrimination with regards to employment?

    • Y
      1 / 1

      97. Percentage or number of temporary employees?

      3,278 - Figure for 2019.

    • Y
      1 / 1

      98. Percentage or number of women employees?

      30.28% - The company reports the percentage of women employees.

    • N
      0 / 1

      99. Commitment to pay at least minimum wage?

    • Y
      1 / 1

      100. Progress on commitment to pay at least minimum wage?

      [Externally verified] The company provides examples to pay at least minimum wage.

    • N
      0 / 1

      101. Reporting of salary by gender?

    • Y
      1 / 1

      102. Commitment to address occupational health and safety?

      The company provides a commitment to address occupational health and safety.

    • Y
      1 / 1

      103. Provision of personal protective equipment and related training?

      [Externally verified] The company provides PPE and training to all employees.

    • N
      0 / 1

      104. Time lost due to work-based injuries?

    • N
      0 / 1

      105. Number of fatalities as a result of work-based accidents?

  • Smallholders and suppliers Smallholders and suppliers
    5.5 / 10 55%
    • Organisation: 0.5 / 1 50%
    • Policy: 2 / 4 50%
    • Practice: 3 / 5 60%
    • Self-reported: 0 / 5 0%
    • External: 3 / 5 60%
    • Y
      1 / 1

      106. Commitment to support smallholders?

      The company has a commitment to support the social and economic inclusion of smallholders and to train and provide support in relation to yields and quality management.

    • P
      0.5 / 1

      107. Percentage of supply from smallholders?

      300 - The company states that it sources from around 300 smallholders in East Kalimantan however it is unclear what percentage of supply this represents.

    • Y
      1 / 1

      108. Programme to support scheme smallholders/outgrowers?

      [Externally verified] The company has an economic empowerment program through which they sign partnership agreements with smallholders.

    • Y
      1 / 1

      109. Percentage of scheme smallholders/outgrowers involved in programme?

      [Externally verified] 333 - The company reports it has engaged 33 smallholders in Jambi and 300 in East Kalimantan.

    • 110. Programme to support independent smallholders?

      This indicator is disabled as the company reports that it does not source from independent smallholders.

    • 111. Percentage of independent smallholders involved in programme?

      This indicator is disabled as the company reports that it does not source from independent smallholders.

    • Y
      1 / 1

      112. Process used to engage smallholder suppliers on compliance with company's policy and/or legal requirements?

      Smallholders are audited by a third-party annually and committees meet quarterly to discuss any issues with the programme. Smallholders receive various trainings to support sustainable rubber production.

    • Y
      1 / 1

      113. Number or percentage of smallholder suppliers engaged on compliance with company's policy and/or legal requirements?

      [Externally verified] 333 - The company reports it has engaged 33 smallholders in Jambi and 300 in East Kalimantan.

    • N
      0 / 1

      114. Process used to prioritise, assess and/or engage non-smallholder suppliers on compliance with company's policy and/or legal requirements?

    • N
      0 / 1

      115. Number or percentage of non-smallholder suppliers assessed and/or engaged on compliance with company's policy and/or legal requirements?

    • N
      0 / 1

      116. Suspension or exclusion criteria for suppliers?

    • N
      0 / 1

      117. Percentage of supply coming from agroforestry?

  • Governance and grievances Governance and grievances
    2.75 / 6 45.8%
    • Organisation: 0 / 0 0%
    • Policy: 2 / 4 50%
    • Practice: 0.8 / 2 37.5%
    • Self-reported: 0 / 2 0%
    • External: 0.8 / 2 37.5%
    • Y
      1 / 1

      118. Commitment to ethical conduct and prohibition of corruption?

      The company provides a commitment to ethical conduct and the prohibition of corruption.

    • P
      0.75 / 1

      119. Progress on commitment to ethical conduct and prohibition of corruption?

      [Externally verified] The company publishes an audited ESG report annually. However, reports provide limited detail on how policies committing to ethical conduct and prohibition of corruption are enforced.

    • N
      0 / 1

      120. Disclosure of the company's management approach to tax and payments to governments?

    • N
      0 / 1

      121. Whistleblowing procedure?

    • Y
      1 / 1

      122. Own grievance or complaints system open to all stakeholders?

      The company has a grievance system open to all stakeholders.

    • N
      0 / 1

      123. Details of complaints and grievances disclosed?

Media monitor: Royal Lestari Utama

SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess or score the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground.

Natural rubber media reports (15) Last media reports:
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