Royal Lestari Utama

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

The company has published a sustainability policy that covers all rubber operations.

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

The company has published a sustainability policy that applies to all suppliers.

3. High-level position of responsibility for sustainability?

The company has a Head of Sustainability.

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

Corporate Affairs Director.

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

6. Percentage or number of women board members?

20% - The company reports the percentage of women board of directors' members.

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.

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

The company has a sustainability bond partnership with TLFF, UNEP, BNP Paribas, ADM Capital Foundation and World Agroforestry Centre (ICRAD) to reduce negative environmental and social outcomes associated with natural rubber production. It also has a collaboration with Bukit Tigapuluh National Park and is involved in regional partner activities such as the Bukit Tigapuluh Collaboration Platform (BTCP). In addition, a partnership with Partnerships for Forests (P4F) has established 9,700 ha WCA.

9. Sustainability report published within last two years?

The company's latest sustainability report was published in 2020.

10. Reports through standardised reporting systems?

11. Climate risks assessment available?

12. Lists countries and operations?

Indonesia (plantations and processing).

13. Lists countries sourcing from?

This indicator is disabled as it is not applicable to this company.

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

88761 - The company reports the total land area managed for natural rubber is 88,761 ha.

15. Total natural rubber planted area (ha)?

23087 - Total natural rubber planted area 23,087 ha.

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

378 - The company reports the figures of smallholders planted area for the year 2020.

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

10913 - Data as of 2020.

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

28353 - Data as of 2020.

19. Maps of estates/management units?

Maps are available, however, they are not at a local scale with coordinates.

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

21. Monitoring of management plan implementation available for all estates/management units?

22. Maps of scheme/outgrower smallholders?

23. Names and locations of all third-party supplying industrial estates/management units?

24. List of jurisdictions where sourcing from smallholders?

25. Number of company owned natural rubber processing facilities?

1 - The company reports that it has only one processing facility in East Kalimantan managed through its subsidiary, PT. MKC.

26. Names and locations of company owned natural rubber processing facilities?

The company has published the name and rough location of its only processing facility, however, coordinates and geo-referenced maps are not available.

27. Number (or percentage) of company-owned processing facilities that source from company-owned operations and/or third parties?

1 - The company reports the number of company-owned processing facilities that source natural rubber from company-owned plantations and third parties.

28. Reports total volumes (or percentages) sourced by company-owned processing facilities that come from company's own operations and/or third-parties?

29. Number of third party supplying processing facilities?

This indicator is disabled as it is not applicable to this company.

30. Names and locations of all third party supplying processing facilities?

This indicator is disabled as it is not applicable to this company.

31. Number (or percentage) of third party supplying processing facilities that source from their own plantations and/or third party plantations?

This indicator is disabled as it is not applicable to this company.

32. Reports total volume (or percentages) sourced from third-party supplying processing facilities that come from the supplying facilities' own operations and/or third parties?

This indicator is disabled as it is not applicable to this company.

33. Total volume (or percentage) sourced for manufacturing that comes from intermediary traders rather than directly from processing facilities?

This indicator is disabled as it is not applicable to this company.

34. Time-bound commitment to achieve 100% traceability to processing facility level?

This indicator is disabled as it is not applicable to this company.

35. Percentage of supply traceable to processing facility level?

This indicator is disabled as it is not applicable to this company.

36. Time-bound commitment to achieve 100% traceability to industrial plantation level?

The company commits to establish a traceable and transparent supply chain. The commitment is neither time-bound nor specific to industrial plantation level.

37. Percentage of supply from own processing facilities traceable to industrial plantation level?

38. Percentage of supply from third-party processing facilities traceable to industrial plantation level?

This indicator is disabled as it is not applicable to this company.

39. Time-bound commitment to achieve 100% traceability to jurisdictional level for smallholders?

40. Percentage of supply from own processing facilities traceable to smallholder at jurisdictional level?

41. Percentage of supply from third party processing facilities traceable to smallholders at jurisdictional level?

This indicator is disabled as it is not applicable to this company.

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

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

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

The company is a joint venture between Michelin and Barito Pacific and only Michelin has submitted a self-declaration form for the SNR-i.

44. Percentage area (ha) FSC certified?

45. Time-bound plan for achieving FSC FM certification of estates/management units?

46. Percentage of scheme/outgrower smallholders (ha) FSC-certified?

47. Time-bound plan for achieving FSC certification of scheme/outgrower smallholders?

48. Percentage of natural rubber supply (tonnes) from independent smallholders/outgrowers/third-party natural rubber suppliers that is FSC-certified?

49. Percentage of all natural rubber products handled/traded/processed (tonnes) that is FSC-certified?

This indicator is disabled as it is not applicable to this company.

50. Percentage area (ha) PEFC certified (excluding FSC certified area)?

51. Certified under voluntary sustainability certification scheme?

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

53. Commitment to zero conversion of natural ecosystems?

54. Commitment to zero conversion of natural ecosystems applies to all suppliers?

55. Commitment to zero deforestation?

The company has a no deforestation commitment and the company also commits to no development in High Conservation Value (HCV), High Carbon Stock (HCS) and peatland areas.

56. Commitment to zero deforestation applies to all suppliers?

The company commits all suppliers to no development in High Conservation Value (HCV), High Carbon Stock (HCS) and peatland areas, and also no deforestation.

57. Criteria and cut-off date for defining deforestation and/or ecosystem conversion?

The company specifies HCV and HCS areas as the criteria used to define areas that are not eligible for conversion. However, it does not specify a cut-off date beyond which deforestation or conversion would not be accepted.

58. Evidence of monitoring deforestation and/or ecosystem conversion?

[Externally verified] The company has set up a partnership with Bukit Tigapuluh National Park to jointly patrol areas and has also partnered with Satelligence, to monitor land cover throughout the concession areas. Information is externally verified by an assurance audit.

59. Evidence of monitoring deforestation and/or ecosystem conversion in supplier operations?

60. Amount of deforestation and/or ecosystem conversion recorded in own operations since cut-off date?

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

61. Amount of deforestation and/or ecosystem conversion recorded in supplier operations since cut-off date?

62. Commitment to restoration of deforestation/conversion?

The company states it is working to restore critical habitats, but it is unclear what the cut-off date beyond which conversion would not be accepted and therefore restorative action is required.

63. Commitment to restoration of deforestation/conversion applies to all suppliers?

64. Implementing a landscape or jurisdictional 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. Information is externally verified by an assurance audit.

65. Biodiversity policy?

66. Biodiversity policy applies to all suppliers?

67. 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. Information is externally verified by an assurance audit.

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

[Externally verified] The company has specified that it has a dedicated conservation team working to prevent poaching, protect animals and reduce human/animal conflict. Information is externally verified by an assurance audit.

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

70. Commitment to no hunting or only sustainable hunting of species applies to all suppliers?

71. 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.

72. Commitment to protect forest areas from illegal activities applies to all suppliers?

The commitment applies to all suppliers however the commitment is only related to HCV/HCS protection, and not for all concession areas.

73. Evidence of protecting forest areas from illegal activities?

[Externally verified] The company has an important buffer area to protect TNBT from poaching, logging and other illegal activities and forest rangers are responsible for carrying out routine patrols in the concessions. Information is externally verified by an assurance audit.

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

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

75. Commitment to conduct High Conservation Value (HCV) assessments applies to all suppliers?

The company commits suppliers to not develop HCV and HCS areas and to protect them.

76. High Conservation Value (HCV) assessments available for all new plantings since 1st April 2019?

[Externally verified] Only one integrated HCV-HCS assessment summary is publicly available online however, two integrated HCV-HCS reports have been submitted and are under review at the time of assessment. Information is externally verified by an assurance audit.

77. High Conservation Value (HCV) management and monitoring plans available for all new plantings since 1st April 2019?

[Externally verified] HCV management and monitoring plans summaries are only available for some parts of the company's operations. Information is externally verified by an assurance audit.

78. 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 reference to the HCS Approach toolkit.

79. Commitment to the High Carbon Stock (HCS) Approach applies to all suppliers?

The company's suppliers have a commitment to not develop HCS forests and to protect them but do not provide a clear reference to the HCS Approach toolkit.

80. High Carbon Stock (HCS) assessments available?

[Externally verified] One integrated HCV-HCS assessment summary is publicly available online however, two integrated HCV-HCS reports have been submitted and are under review at the time of assessment.

81. Peer review of all High Carbon Stock (HCS) assessments undertaken since April 2015 by the HCSA Quality Assurance Process?

[Externally verified] Two reports have been reviewed and considered satisfactory by HCVRN.

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

The company commits to conduct SEIAs for all its operations.

83. Commitment to conduct social and environmental impact assessments (SEIAs) applies to all suppliers?

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

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

The company commits to not develop on peat but does not reference a definition of peat or state 'peat of any depth'.

86. Commitment to no planting on peat of any depth applies to all suppliers?

The company commits suppliers to not develop on peat but does not reference a definition of peat or state 'peat of any depth'.

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

Two subsidiary HCS assessments confirm there is no peat in their landbanks, however this does not cover all company operations.

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

This indicator is disabled as it is not applicable to this company.

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

90. Commitment to best management practices for soils and peat applies to all suppliers?

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

92. Commitment to best/sustainable tapping practices?

The company commits to sustainable tapping practices.

93. Commitment to best/sustainable tapping practices applies to all suppliers?

The company has a commitment to sustainable tapping practices that applies throughout its value chain. However, it is not clear if this applies to all suppliers.

94. Evidence of best/sustainable tapping practices?

[Externally verified] The company has specified that the capacity building training was provided to members of the CPP community, including cultivation and proper rubber tapping techniques in addition to this, a tapping school was established in line with international and Michelin Agronomic standards as part of the transfer of knowledge. The information is audited by independent auditor Ramboll Consulting.

95. Commitment to zero burning?

The company commits to no burning.

96. Commitment to zero burning applies to all suppliers?

The company commits all suppliers to no burning.

97. Evidence of fire monitoring and management?

[Externally verified] The company has specified that it has formed a Forest and Land Fire Emergency Preparedness and Response Team (TPKD) in the Jambi and East Kalimantan concessions as well as it is establishing forest and land fire control facilities and infrastructure in accordance with applicable regulations. Information is externally verified by an assurance audit.

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

105 - The company reports both the number of fires registered (105) and hectares burnt (40.71 ha).

99. Details/number of hotspots/fires in suppliers operations/jurisdictions?

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

101. GHG emissions intensity?

The company reports GHG emission figures but not as intensity figures.

102. GHG emissions from land use change?

103. Progress towards commitment to reduce GHG emissions intensity?

[Externally verified] The company reports that progress in GHG emission but the emission is not improving. Information is externally verified by an assurance audit.

104. Methodology used to calculate GHG emissions?

Verified Carbon Standard's VM0037 methodology.

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

106. Water use intensity?

107. Progress towards commitment on water use intensity?

108. Time-bound commitment to improve water quality (BOD or COD)?

109. Progress towards commitment on water quality (BOD or COD)?

110. Treatment of effluents from processing facilities?

The company states some facilities are equipped with wastewater treatment systems but no detail is provided. Information is not externally verified.

111. Treatment of effluents from manufacturing facilities?

This indicator is disabled as it is not applicable to this company.

112. Commitment to protect natural waterways through buffer zones?

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

The company has specified that its conservation management actively preserves the waterways and riparian areas. Information is not externally verified.

114. Reducing odours from natural rubber processing or manufacuring facilities?

The company mentions the use of biofilters in some processing facilities but gives no detail. Information is not externally verified.

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

The company states that it follows IFC standards for its ESG performance, however, the company is neither a member nor complying with all standards of IFC.

116. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers, applies to all suppliers?

117. Commitment to no use of paraquat?

118. Commitment to no use of paraquat applies to all suppliers?

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

The company states that it follows IFC standards for its ESG performance, however, the company is neither a member nor complying with all standards of IFC.

120. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides applies to all suppliers?

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

The company states that it follows IFC standards for its ESG performance, however, the company is neither a member nor complying with all standards of IFC.

122. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention applies to all suppliers?

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

124. Implementation of commitment to reduce chemical usage?

125. Integrated Pest Management (IPM) approach?

126. Commitment to human rights?

The company commits to the Universal Declaration of Human Rights.

127. Commitment to human rights applies to all suppliers?

The company commits suppliers to the Universal Declaration of Human Rights.

128. Progress on human rights commitment?

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

The company commits to the UN Declaration on the Rights of Indigenous Peoples.

130. Commitment to indigenous and local communities' rights applies to all suppliers?

The company commits suppliers to the UN Declaration on the Rights of Indigenous Peoples.

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

The company commits to respect legal and customary land tenure rights.

132. Commitment to legal and customary land rights applies to all suppliers?

The company commits suppliers to respect legal and customary land tenure rights.

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

The company commits to respect FPIC.

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

The company commits all suppliers to respect FPIC.

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

The company provides limited information on the FPIC process.

136. Examples of local stakeholder engagement to prevent conflicts?

[Externally verified] The company runs regular local stakeholders community forums attended by company staff, community representatives, local authorities, and NGO partners to discuss issues such as land return, fire prevention, in-situ smallholder CPP amongst others. The information is externally verified.

137. Details of process for addressing land conflicts available?

The company provides details of the process for addressing land conflicts.

138. 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.

139. Commitment to mitigate impacts on food security?

The company commits to ensure food security for local communities through assisting with culturally relevant and appropriate crop diversity.

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

[Externally verified] The company provides examples of mitigating impacts on food security by developing an integrated farming program that has helped families in Jambi. Information is externally verified by an assurance audit.

141. Commitment to provide essential community services and facilities?

The company commits to provide essential community services and facilities.

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

[Externally verified] The company has expanded its livelihood opportunities, access to markets as well as improved health and education to the local communities through its Community Partnership Program (CPP). Information is externally verified by an assurance audit.

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

The company commits to provide business opportunities for local communities through Forest Farmers Groups in Tebo.

144. 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).

145. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles applies to all suppliers?

The company commits all its suppliers to Fundamental ILO Conventions except Right to Organise and Collective Bargaining (No. 98) and Equal Remuneration (No. 100).

146. Progress on commitment to respect all workers' rights?

[Externally verified] The company has strengthened its policy through Company Regulation, Ethics, and the Supplier Ethical Commitment Letter. The information is audited by independent auditor Ramboll Consulting.

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

The company commits to prevent employment-related discrimination based on gender.

148. Commitment to eliminate gender related discrimination with regards to employment applies to all suppliers?

The company commits all suppliers to prevent employment-related discrimination based on gender.

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

The company has partnered with UN Women and TLFF to conduct a women's study in RLU's Jambi concession. However, it does not provide any training to eliminate gender-related discrimination.

150. Percentage or number of temporary employees?

2697 - The company reports the total number of temporary employees for 2020.

151. Percentage or number of women employees?

1280 - The company reports the total number of women employees for 2020.

152. Commitment to pay a living wage?

The company commits to paying a decent wage to its employees.

153. Commitment to pay a living wage applies to all suppliers?

154. Progress on commitment to pay a living wage?

[Externally verified] The company provides evidence that workers are paid above provincial minimum wage standards. The information is audited by independent auditor Ramboll Consulting.

155. Reporting of salary by gender?

156. Commitment to address occupational health and safety?

The company commits to address health and safety at work for all workers.

157. Commitment to address occupational health and safety applies to all suppliers?

The company commits to address health and safety at work for all workers.

158. Provision of personal protective equipment and related training?

The company has implemented community-level COVID-19 health and safety training and provided PPE.

159. Time lost due to work-based injuries?

The company has reported the Total Case Incident Rate (TCIR) is 0.60 in the year 2020.

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

0 - The company reports that the number of accidents causing death is 0 in the year 2020.

161. Commitment to support smallholders?

The company commits to support smallholders.

162. Percentage of supply from smallholders?

611 - The company states that it sources from around 611 smallholders from Jambi 213 and East Kalimantan 398 however, it is unclear what percentage of supply this represents.

163. Programme to support scheme smallholders/outgrowers?

[Externally verified] The company has a smallholder Community Partnership Program (CPP) where it gives services (training on tapping techniques and rubber cultivation) in return for products (rubber). The programme is verified via an ESG Audit by Ramboll Environ Singapore PTE LTD.

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

611 - The company reports to have engaged 213 smallholders in Jambi and 398 in East Kalimantan for it's smallholder Community Partnership Program (CPP) where it gives services (training on tapping techniques and rubber cultivation) in return for products (rubber). Figures are not externally verified.

165. Programme to support independent smallholders?

The company states 398 smallholders supply its East Kalimantan factory, and they are provided with technical training but there is no detail on what the training entails. Information is not externally verified.

166. Percentage of independent smallholders involved in programme?

The company states 398 smallholders supply its East Kalimantan factory, and they are provided with technical training but there is no detail on how many of the smallholders are trained. Information is not externally verified.

167. 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 also receive various training to support sustainable rubber production.

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

[Externally verified] 611 - The company reports to have engaged 213 smallholders in Jambi and 398 in East Kalimantan. Information is externally verified by an assurance audit.

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

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

171. Suspension or exclusion criteria for non-smallholder suppliers?

172. Time-bound action plans (including Key Performance Indicators) for suppliers to be in compliance with natural rubber sourcing commitments?

173. Proportion of direct and indirect supply that comes from natural rubber plantations which are compliant with natural rubber sourcing policies?

174. Percentage of supply coming from agroforestry?

The company has specified an integrated agricultural program (agroforestry) in several villages. However, no details were found relating to supply coming from agroforestry.

175. Commitment to ethical conduct and prohibition of corruption?

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

176. Commitment to ethical conduct and prohibition of corruption applies to all suppliers?

The company commits all suppliers to ethical conduct and the prohibition of corruption.

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

[Externally verified] The company reports a review of its grievance mechanism but gives little detail. Information is verified via an ESG Audit by Ramboll Environ Singapore PTE LTD.

178. Disclosure of the company’s management approach to tax and payments to governments?

179. Whistleblowing procedure?

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

The company has its own grievance system open to all stakeholders.

181. Details of complaints and grievances disclosed?

The company discloses 11 grievances were received as of 31 December 2020, and names one complainant and grievance from October 2020.