Asian Agri Group https://www.spott.org/palm-oil/asian-agri-group/
Indonesian producer Asian Agri was established in 1979. The Company focuses on palm oil production... Read more.
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Parent company:RGE Group
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Landbank (oil palm):161,890 hectares
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Thomson Reuters ticker:Private company
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Bloomberg ticker:Private company
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RSPO member?Yes
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Website:
Company assessment: Asian Agri Group – November 2018
SPOTT assesses companies against over 100 indicators across ten categories. Click on the icons or bars below to expand each category for further details, scoring and links to reports and sources.
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Sustainability policy and leadership
5.5 / 6
91.7%
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Companies should publish sustainability policies or similar covering their entire supply chain — including third party suppliers — implemented and enforced through high-level leadership that engages with wider industry schemes.
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1 / 1Source1. Sustainable palm oil policy or commitment for all its operations?
The company has a Sustainability Policy, dated 2014
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1 / 1Source
2. Policy or commitment applies to direct and third-party suppliers?
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1 / 1Source
3. High-level position of responsibility for sustainability?
Head of Sustainability and Head of Operational Sustainability, who both report to the Managing Director
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1 / 1Source
4. Sustainability report published within last two years?
The company's most recent sustainability report is for the year 2016
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1 / 1Source
5. Member of multiple industry schemes or other external initiatives to improve sustainability in relation to palm oil?
The company is a member of the Fire Free Alliance (FFA), TFT, HCS Approach Steering Group, and TFA 2020
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-No source
6. Verification report on compliance with POIG Charter, if a POIG member?
This indicator is disabled as it is not applicable to this company.
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0.5 / 1Source7. Activities with government, NGOs or academic institutions to improve palm oil sustainability?
The company has worked with NGOs, including WWF and Solidaridad, on supporting smallholders and their certification. It also reports working with the government to launch the Fire Free Villages Programme
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Landbank, maps and traceability
9.5 / 13
73.1%
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Companies should publicly report figures on their total landbank and details of different areas under their management. They should also disclose maps of their management areas and provide details on traceability of their products, both to mill and plantation level.
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1 / 1Source
8. Total land area managed/controlled for oil palm (ha)?
161,890 - ACOP is for operating holding company PT Inti Indosawit Subur, but all palm oil operations appear to be managed through this company. Data as of 2017
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1 / 1Source
9. Total oil palm planted area (ha)?
104,540 - ACOP is for operating holding company PT Inti Indosawit Subur, but all palm oil operations appear to be managed through this company. It is unclear whether this area includes smallholders. Data as of 2017
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1 / 1Source
10. Plasma/scheme smallholders planted area (ha)?
57,350 - ACOP is for operating holding company PT Inti Indosawit Subur, but all palm oil operations appear to be managed through this company. Sum of certified and uncertified areas which are reported in 2017 ACOP
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1 / 1Source
11. Unplanted (areas designated for future planting) (ha)?
0 - ACOP is for operating holding company PT Inti Indosawit Subur, but all palm oil operations appear to be managed through this company. Data as of 2017
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0 / 1Source12. Conservation set-aside area, including HCV area (ha)?
The company reports 0 ha of conservation set-aside area in PT Inti Indosawit Subur's 2017 ACOP, but in its 2016 Sustainability Report it states it does set aside areas of HCV, riparian areas and areas of high cultural value
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0 / 1No source
13. Area for infrastructure (ha)?
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1 / 1Source
14. Number and names of company owned mills?
20 - The company reports on its website and in its 2016 Sustainability Report that it has 20 mills. Only 19 mills are reported in PT Inti Indosawit Subur's 2017 RSPO ACOP. Names for all 20 mills are available on the company website
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1 / 1Source
15. Maps or coordinates of company owned mills?
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-No source
16. Number and names of supplier mills?
This indicator is disabled as it is not applicable to this company.
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0.5 / 1Source
17. Maps of estates/management units?
The company states it has 28 plantations, and provides names of 36 estates in its 2016 Annual Report. Some concession boundaries are available on Global Forest Watch, but not all. Some maps are available on GeoRSPO, but it is not clear if these cover all estates
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0 / 1No source
18. Maps of scheme/plasma smallholders?
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-No source
19. Time-bound commitment to achieve 100% traceability to mill level?
This indicator is disabled as it is not applicable to this company.
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1 / 1Source
20. Time-bound commitment to achieve 100% traceability to plantation level?
2,017 - The company stated a goal of 100% FFB traceability by 2017 in its 2016 Sustainability Report. It now reports on its website it achieved 100% traceability of FFB by 2017
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-No source
21. Percentage of supply traceable to mill level (above 80%)?
This indicator is disabled as it is not applicable to this company.
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2 / 2Source
22. Percentage of fresh fruit bunches (FFB) from own mills traceable to plantation level (above 75%)?
100%
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-No source
23. Percentage of fresh fruit bunches (FFB) from supplier mills traceable to plantation level (above 75%)?
This indicator is disabled as it is not applicable to this company.
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Deforestation and biodiversity
7.5 / 10
75%
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Companies should commit to address deforestation and to set aside areas for conservation. They should report on any activities to manage or restore habitat in their conservation areas, or monitor deforestation in their supply chains. They should also provide evidence of species conservation and biodiversity protection.
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1 / 1Source
24. Commitment to zero deforestation?
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1 / 1Source
25. Deforestation commitment applies to scheme smallholders and independent suppliers?
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1 / 1Source
26. Criteria for defining deforestation?
HCV, HCS, peat
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0 / 1No source
27. Evidence of monitoring deforestation?
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1 / 1Source
28. Examples of habitat management and/or habitat restoration?
The company refers to monitoring peat subsidence and marking HCV areas with signs
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0.5 / 1Source
29. Implementing a landscape-level approach to biodiversity conservation?
The company committed in its 2014 Sustainability Policy to adopt a landscape planning approach to conservation, but it is not clear if this is yet being implemented
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1 / 1Source
30. Commitment to biodiversity conservation?
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1 / 1Source
31. Commitment to not endanger species of conservation concern, referencing international or national system of species classification?
The company states that areas are set-aside for endangered species identified in the estates, and makes reference to the IUCN Red List
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0 / 1Source
32. Commitment to no hunting or only sustainable hunting of species?
The company states that "socially valuable HCV areas are marked with signboards to create awareness for the surrounding community such as prohibitions on trapping, hunting and fishing" but does not make a clear commitment to no hunting or sustainable hunting
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1 / 1Source
33. Examples of species conservation activities?
Signs for no hunting, poaching or fishing, HCV training for smallholders, species monitoring
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HCV, HCS and impact assessments
6.5 / 7
92.9%
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Companies should commit to the High Conservation Value (HCV) and High Carbon Stock (HCS) approaches, and to conduct social and environmental impact assessments (SEIA). They should develop and publish monitoring and management plans, and provide evidence through SEIA, HCV and HCS assessments, typically published in summary form due to the sensitive nature of certain sites.
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1 / 1Source
34. Commitment to conduct High Conservation Value (HCV) assessments?
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1 / 1Source
35. HCV commitment applies to scheme smallholders and independent suppliers?
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0.5 / 1Source
36. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?
The company does not have an explicit commitment itself, but commits through the RSPO NPP as its operating holding company PT IIS is an RSPO member and seems to encompass all its palm oil operations
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1 / 1Source
37. High Conservation Value (HCV) assessments for planting undertaken prior to January 2015, and associated management and monitoring plans?
The following HCV assessment is publicly available:
Sumatra: PT Usaha Sawit Unggul -
-Source
38. High Conservation Value (HCV) assessments for all estates planted since January 2015?
This indicator is disabled as according to PT IIS's 2015, 2016 and 2017 RSPO ACOPs no new planting has occurred
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-Source
39. High Conservation Value (HCV) management and monitoring plans for all estates planted since January 2015?
This indicator is disabled as according to PT IIS's 2015, 2016 and 2017 RSPO ACOPs no new planting has occurred
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-Source
40. Satisfactory review of all High Conservation Value (HCV) assessments undertaken since January 2015 by the HCV ALS Quality Panel?
This indicator is disabled as according to PT IIS's 2015, 2016 and 2017 RSPO ACOPs no new planting has occurred
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1 / 1Source
41. Commitment to the High Carbon Stock (HCS) Approach?
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-Source
42. High Carbon Stock (HCS) assessments?
This indicator is disabled as according to the 2016 and 2017 RSPO ACOPs no new planting has occurred
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1 / 1Source
43. Commitment to conduct social and environmental impact assessments (SEIAs)?
The company commits in its 2014 Sustainability Policy to not undertake forest clearance or peatland development until an SEIA is conducted
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1 / 1Source
44. Social and environmental impact assessments (SEIAs) undertaken, and associated management and monitoring plans?
The following SEIA assessment is publicly available:
Sumatra: PT Usaha Sawit Unggul
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Peat, fire and GHG emissions
10.5 / 15
70%
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Companies should commit to protect peatland and undertake best management practices for soils and peat. They should also have policies on zero burning and to reduce their greenhouse gas (GHG) emissions. Companies should report their GHG emissions, as well as any fires that occurred in or around their estates, along with plans for managing and monitoring fires.
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1 / 1Source
45. Commitment to no planting on peat of any depth?
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1 / 1Source
46. Peat commitment applies to scheme smallholders and independent suppliers?
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1 / 1Source
47. Commitment to best management practices for soils and peat?
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1 / 1Source
48. Landbank or planted area on peat?
27,409 - Data as of 2016
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1 / 1Source
49. Evidence of best management practices for soils and peat?
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1 / 1Source
50. Commitment to zero burning?
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1 / 1Source
51. Zero burning commitment applies to scheme smallholders and independent suppliers?
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1 / 1Source
52. Evidence of management and monitoring fires?
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0 / 1No source
53. Details/number of hotspots/fires in company estates?
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0.5 / 1Source
54. Details/number of hotspots/fires within surrounding landscape/smallholders?
The company states the total number of hectare burned in areas under its Fire Free Village Programme (FFVP) was 7.98 ha in 2016 and 82 ha in 2017, and that 12 of the 16 villages involved were fire-free in 2017. Information on fires outside of the FFVP is not given
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0 / 1Source
55. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?
The company states it will strive to progressively reduce GHG emissions, but does not have a time-bound commitment or a specific target, and does not frame its commitment around GHG intensity
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0 / 1No source
56. GHG emissions from land use change?
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1 / 1Source
57. Methodology used to calculate GHG emissions?
ISCC guidelines and RSPO GHG Palm Tool
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0.5 / 1Source
58. Progress towards commitment to reduce GHG emissions intensity?
The company reports some reductions in emission intensity, but does not have a time-bound commitment in place
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0.5 / 1Source
59. Percentage of mills with methane capture (100%)?
5 (25%) - Five mills have biogas plants already, but not all. The company states plans to have biogas capture at all mills by 2020
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Water, chemical and pest management
5.5 / 12
45.8%
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Companies should commit to managing water use and water quality, providing evidence through time-bound reduction plans, policies on toxic chemical use and treatment of palm oil mill effluent (POME).
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0 / 1No source
60. Time-bound commitment to improve water use per tonne of FFB Processed?
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0 / 1No source
61. Time-bound commitment to improve water quality (BOD and COD)?
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0 / 1Source
62. Progress towards commitment on water use?
The company reports annual river water and ground water usage in cubic metres, but does not report any figures per tonne of FFB processed and it is not clear whether the company is improving its water use
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0.5 / 1Source
63. Progress towards commitment on water quality (BOD and COD)?
The company reports figures for BOD, but not for COD. These figures have improved slightly for its Jambi operations, but generally not for its operations in North Sumatra or Riau. It is therefore not clear if overall water quality is improving
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1 / 1Source
64. Protection of natural waterways through buffer zones?
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1 / 1Source
65. Evidence of treating palm oil mill effluent (POME)?
The company states that its POME is either applied on the land as fertiliser, or released into rivers "after anaerobic and aerobic treatment in order to render the chemical and physical characteristics compliant with national regulations"
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1 / 1Source
66. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?
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0 / 1No source
67. No use of paraquat?
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0 / 1No source
68. No use of World Health Organisation (WHO) Class 1A and 1B pesticides?
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0 / 1No source
69. No use of chemicals listed under the Stockholm Convention and Rotterdam Convention?
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1 / 1Source
70. Integrated Pest Management (IPM) approach?
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1 / 1Source
71. Chemical usage per ha or list of chemicals used?
The company states fertiliser usage per hectare, for both mature and immature oil palm plantations. Similar figures could not be found for pesticides or herbicides
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Community, land and labour rights
15 / 19.5
76.9%
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Companies should commit to respect human rights, including those of indigenous peoples and local communities, consulted with free, prior and informed consent (FPIC). Companies should respect the rights of workers, report relevant workforce data, and comply with health and safety legislation.
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1 / 1Source
72. Commitment to human rights, referencing the UN Declaration of Human Rights or UN Guiding Principles on Business and Human Rights?
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1 / 1Source
73. Commitment to human rights applies to scheme smallholders and independent suppliers?
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0.5 / 1Source
74. Commitment to respect legal and customary land tenure rights?
The company only refers to respecting the rights of indigenous and local communities in relation to FPIC
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0.5 / 1Source
75. Commitment to respect indigenous and local communities' rights, referencing the UN Declaration on the Rights of Indigenous Peoples or ILO 169?
The company refers to respecting the rights of indigenous and local communities in relation to FPIC, and to respecting the rights of communities it partners with. However, it does not refer to the UN Declaration on Indigenous Rights, or to relevant ILO conventions
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1 / 1Source
76. Commitment to free, prior and informed consent (FPIC)?
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1 / 1Source
77. FPIC commitment applies to independent suppliers?
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0 / 1No source
78. Details of free, prior and informed consent (FPIC) process available?
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0 / 1No source
79. Details of process for addressing land conflicts available?
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1 / 1Source
80. Commitment to mitigate impacts on food security?
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1 / 1Source
81. Commitment to provide essential community services and facilities?
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1 / 1Source
82. Commitment to respect all workers' rights?
The company states it respects fair rights for all its employees and commits to a "fair treatment policy" which respects the rights of employees including contract, temporary and migrant workers
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0.5 / 1Source
83. Reference to Fundamental ILO Conventions or Free and Fair Labour Principles?
The company does not refer to all of the fundamental ILO conventions - it does not refer to equal remuneration or no forced labour
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0.5 / 0.5Source
84. Total number of employees?
22,084 - Figure from 2016
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1 / 1Source
85. Percentage or number of temporary employees?
60% - Figure from 2016
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1 / 1Source
86. Percentage or number of women employees?
26% - Figure from 2016
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0.5 / 1Source
87. Commitment to pay minimum wage?
The company stated in its 2014 Sustainability Report that it "follows minimum wage agreements" but does not provide further detail
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1 / 1Source
88. Commitment to address occupational health and safety?
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1 / 1Source
89. Time lost due to work-based injuries?
For the year 2016, the company provides lost day rates for North Sumatra, Riau and Jambi as 1.07, 1.72 and 0.68, respectively
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1 / 1Source
90. Number of fatalities as a result of work-based accidents?
0 - For the year 2016, the company states there were zero fatal work incidents for North Sumatra, Riau and Jambi
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0.5 / 1Source
91. Provision of personal protective equipment and pesticide training?
The company states that relevant workers are provided with PPE, but does not explicitly state it provides related training
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Certification standards
11.5 / 14.5
79.3%
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Companies should become members of credible certification standards and report in accordance with all appropriate categories of membership. The Roundtable on Sustainable Palm Oil (RSPO) requires members registered as growers to submit data relating to certification targets for their estates, scheme smallholders and independent fresh fruit bunch (FFB) suppliers, via an annual communications of progress (ACOP) report.
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1 / 1Source
92. Member of the Roundtable on Sustainable Palm Oil (RSPO)?
2,006 - Through holding company PT Inti Indosawit Subur
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0.5 / 0.5Source
93. Submitted most recent RSPO Annual Communication of Progress (ACOP)?
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0.5 / 0.5Source
94. Listed all countries and regions in which operates in most recent RSPO Annual Communication of Progress (ACOP)?
PT Inti Indosawit Subur, the holding company for the company, states all the countries and regions in which it operates: Indonesia (Jambi, Riau and North Sumatra)
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0.5 / 0.5Source
95. Time-bound plan for achieving 100% RSPO certification of estates within 5 years or achieved 100% RSPO-certification of estates?
2,018
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0.5 / 0.5Source
96. Time-bound plan for achieving 100% RSPO certification of scheme/associated smallholders within 5 years or achieved 100% RSPO-certification of scheme/associated smallholders?
2,018
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-No source
97. Year expected to achieve 100% RSPO certification of all palm product processing facilities?
This indicator is disabled as it is not applicable to this company.
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0.5 / 0.5Source
98. RSPO-certified within three years of joining the RSPO or by November 2010, for companies joining prior to finalisation of the RSPO certification systems in November 2007?
2,010
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2 / 2Source
99. Percentage of mills RSPO-certified (above 75%)?
18 (90%)
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1.5 / 2Source
100. Percentage of area (ha) RSPO-certified (above 75%)?
90,564 (55.9%)
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2 / 2Source
101. Percentage of scheme/associated smallholders (ha) RSPO-certified (above 75%)?
53,132 (92.6%)
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0 / 2No source
102. Percentage of FFB supply (tonnes) from independent FFB suppliers that is RSPO-certified (above 75%)?
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-No source
103. Percentage of all palm oil and oil palm products handled/traded/processed (tonnes) that are RSPO-certified (above 75%)?
This indicator is disabled as it is not applicable to this company.
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1 / 1Source
104. Sells or processes/trades RSPO-certified palm oil through Segregated or Identity Preserved supply chains?
Mass Balance and Identity Preserved
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0.5 / 1Source
105. Indonesia Sustainable Palm Oil (ISPO) certified (100%)?
The company stated in its 2016 Sustainability Report it was 91% ISPO-certified. It also has a target of achieving 100% ISPO certification by 2018 on an undated webpage
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-No source
106. Malaysia Sustainable Palm Oil (MSPO) certified?
This indicator is disabled as it is not applicable to this company.
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1 / 1Source
107. Certified under voluntary sustainability certification scheme (e.g. ISCC, SAN, RSB, etc.)?
The company is 100% ISCC- and ISO 14001-certified
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Smallholders and suppliers
4.5 / 7
64.3%
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Companies should report details of any programmes or schemes to support both schemed and independent smallholders, as well as criteria to assess suppliers on compliance with company policies, and in what cases suppliers should be suspended or excluded due to non-compliance.
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1 / 1Source
108. Programme to support scheme smallholders?
The company describes support provided to plasma smallholders
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0.5 / 1Source
109. Number or percentage of scheme smallholders involved in programme?
19,000 - The company has around 30,000 scheme smallholders. In its 2014 Sustainability Report it stated 19,000 had been supported in achieving RSPO certification. No exact figures were available
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1 / 1Source
110. Programme to support independent smallholders?
The company has a programme supporting independent smallholders to improve yields and market access, which involves a "multipronged approach that involves training, knowledge transfer of best management practices, and establishment of cooperatives". It also states plans to support independent smallholders with RSPO certification
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0.5 / 1Source
111. Number or percentage of independent smallholders involved in programme?
The company reports a goal to engage with "60,000 ha of independent smallholders" and reports having partnerships linked to 10,000 independent smallholders. It also reports engaging with 152 groups of independent smallholders. A 2017 company news article reports 501 smallholders signed up in 2016 to a support programme with the company and WWF. The total number of independent smallholders directly engaged with is not clear
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1 / 1Source
112. Process used to prioritise, assess and/or engage suppliers on compliance with company's policy and/or legal requirements?
The company states that its requires "all direct independent smallholder suppliers to provide a declaration letter that their fruit supplies to Asian Agri are only from legal sources. The letter is validated by regional government offices following the sighting of legal documents, such as land ownership title deeds or relevant licenses." The company also engages in regular dialogue with stakeholders to communicate its policy
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0.5 / 1Source
113. Suspension or exclusion criteria for suppliers?
The company states "We will cease to do business with any suppliers who breach this policy and do not take immediate action to correct their violation. However, regardless of remedial action, we will not do business with serious repeat violators of this policy." It does not give detail of steps taken or specific timeframes for action
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0 / 1No source
114. Percentage of suppliers assessed and/or engaged on compliance with company requirements?
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Governance and grievances
3.5 / 6
58.3%
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Companies should operate in an ethical manner at all levels, providing accessible channels and clear procedures for both employees and external stakeholders to raise any grievance or complaint with the company, as well as allowing for whistleblowing.
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0.5 / 1Source
115. Commitment to ethical conduct and prohibition of corruption?
The company makes a reference to anti-corruption, but not to fair/ethical conduct
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0 / 1No source
116. Whistleblowing procedure?
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1 / 1Source
117. Own grievance or complaints system?
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0 / 1Source
118. Grievance or complaints system is accessible to internal and external stakeholders?
The company states its grievance procedure has been "developed to resolve all verifiable complaints and conflicts with all parties in our supply chain" and reports it is for "stakeholders" but it is not clear if it applies to both internal and external stakeholders
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2 / 2Source
119. Details of grievances disclosed?
The company provides details of one grievance, received in May 2018
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Media monitor: Asian Agri Group
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 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.
June 2019
Greenpeace Report: Countdown to Extinction: What will it take to get companies to act?
January 2019
Investigation: Neste still buying palm oil from mills caught in illegal rainforest harvests
September 2018
Sawit di tangan segelintir pengusaha (Palm is in the hands of a handful of entrepreneurs)
July 2018
Investigasi EoF Sebut Perusahaan-perusahaan Sawit Ini Turut Hancurkan Taman Nasional (EoF Investigations Call These Palm Companies Destroy National Parks)
June 2018
Asian Agri target punya 100.000 hektare lahan kemitraan dengan petani di 2018 (Asian Agri targets to have 100,000 hectares of land in partnership with farmers in 2018)
February 2018
Bangun Menara Pengawas Api, Asian Agri Ajak Warga Desa Cegah Kebakaran Lahan (Building a Fire Monitoring Tower, Asian Agri Invites Villagers to Prevent Land Fires Artikel ini telah tayang di Tribunpekanbaru.com dengan judul Building a Fire Monitoring Tower, Asian Agri Invites Villagers to Prevent Land Fires)
January 2018
Menteri Jonan Resmikan PLTBg Asian Agri di Jambi (Minister Jonan Inaugurated the Asian Agri PLTBg in Jambi)
November 2017
Paradise Papers: Leaked records reveal offshore companies' role in forest destruction
August 2017
Chain Reaction Research: 2017 Indonesian Palm Oil Sector Benchmark: Revenue at Risk vs. Palm Oil NDPE Sourcing
March 2017
Fire Free Alliance claims to have dramatically reduced forest fires in Sumatra since 2015
January 2017
Konflik Lahan 2016, Sektor Perkebunan Tertinggi Didominasi Sawit (2016 Land Conflict, Highest Plantation Sector Dominated by Palm)
December 2016
2016 Sustainability Benchmark: Indonesian Palm Oil Growers Methodology
December 2016
Consumer pressure to ditch deforestation begins to reach Indonesia's oil palm plantation giants
April 2016
Companies with Zero-Deforestation Pledges Still Using Illegal Palm Oil
October 2015
South Sumatra residents to file class action suit against firms causing haze
June 2015
Asian Agri and Apical Team Up with TFT to Enhance Supply Chain Traceability
June 2015
Oil palm company accused of violating RSPO, IPOP standards in Indonesia
May 2015
GAR, Wilmar punish palm oil supplier for clearing rainforest in New Guinea
September 2014
WORLD'S FIVE BIGGEST PALM OIL GROWERS AGREE TO MORATORIUM IN HIGH CARBON AREAS
September 2014
Companies at risk of sourcing illegal palm oil despite zero deforestation commitments, finds investigation
September 2014
Tiger in your tank? Destruction of Riau's Bukit Batabuh tiger corridor for palm oil
May 2014
Vast hidden profits: from Asia's palm oil giants to a tiny British tax haven
February 2014
Media briefing on Greenpeace International's investigation of how P&G's palm oil suppliers are pushing Sumatran tigers and orang-utans closer to extinction
Scoring criteria: Asian Agri Group
Scoring criteria guide how ZSL conducts SPOTT assessments and allocates scores to ensure a fair and consistent approach, setting the expectations for companies on how they should publish ESG data. The full palm oil indicator framework contains 119 indicators across 10 categories, aligned with corporate reporting initiatives.
