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Established in 2007, Hap Seng Plantations Holdings Berhad is a Malaysia-based investment holding company, which

Company assessment: Hap Seng Plantation Holdings Bhd – 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.

Assessment date:

Total: 74.4% 77 / 103.5
  • Sustainability policy and leadership Sustainability policy and leadership 4.5 / 6 75%
    • 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.

    • Yes
      1 / 1
      Source

      1. Sustainable palm oil policy or commitment for all its operations?

      The company has a Sustainable Agriculture Policy

    • Partial
      0.5 / 1
      Source

      2. Policy or commitment applies to direct and third-party suppliers?

      The company only states it encourages the application of its policy among business partners, including contractors, suppliers, trading and JV partners, as well as investment where it does not hold a controlling interest

    • Yes
      1 / 1
      Source

      3. High-level position of responsibility for sustainability?

      CSR & Sustainability Committee chaired by the Chief Executive - Group Plantations

    • Yes
      1 / 1
      Source

      4. Sustainability report published within last two years?

    • No
      0 / 1
      No source

      5. Member of multiple industry schemes or other external initiatives to improve sustainability in relation to palm oil?

    • n/a
      -
      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.

    • Yes
      1 / 1
      Source

      7. Activities with government, NGOs or academic institutions to improve palm oil sustainability?

      The company engages with the government on riparian areas to protect waterways, and is working with NGOs to help smallholders achieve RSPO certification

  • Landbank, maps and traceability Landbank, maps and traceability 10 / 11 90.9%
    • 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.

    • Yes
      1 / 1
      Source

      8. Total land area managed/controlled for oil palm (ha)?

      40,178.6

    • Yes
      1 / 1
      Source

      9. Total oil palm planted area (ha)?

      38,776.6 - The company also reports a figure of 36,103 ha in its Annual Report

    • n/a
      -
      No source

      10. Plasma/scheme smallholders planted area (ha)?

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

    • Yes
      1 / 1
      Source

      11. Unplanted (areas designated for future planting) (ha)?

      113 - The company reports a "reserve plantable" area of 113 ha, however an area of 0 ha is reported in the company's ACOP

    • Yes
      1 / 1
      Source

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

      1,401.98

    • Yes
      1 / 1
      Source

      13. Area for infrastructure (ha)?

      2,679

    • Yes
      1 / 1
      Source

      14. Number and names of company owned mills?

      4

    • Yes
      1 / 1
      Source

      15. Maps or coordinates of company owned mills?


    • n/a
      -
      No source

      16. Number and names of supplier mills?

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

    • Yes
      1 / 1
      Source

      17. Maps of estates/management units?

      Concession boundaries have been made available to the RSPO and the company declares these represent 100% of its concession sites, but not all may be publicly available due to ongoing legal issues. Maps will become available on GeoRSPO

    • n/a
      -
      No source

      18. Maps of scheme/plasma smallholders?

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

    • n/a
      -
      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.

    • No
      0 / 1
      No source

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

    • n/a
      -
      No source

      21. Percentage of supply traceable to mill level (above 80%)?

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

    • Yes
      2 / 2
      Source

      22. Percentage of fresh fruit bunches (FFB) from own mills traceable to plantation level (above 75%)?

      75% - The company states that 75% or 541,814 MT of FFB purchased from own estates and local outgrowers/smallholders was processed by identity preserved mills in 2017

    • n/a
      -
      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.

  • Deforestation and biodiversity Deforestation and biodiversity 8.5 / 10 85%
    • 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.

    • Yes
      1 / 1
      Source

      24. Commitment to zero deforestation?

    • Partial
      0.5 / 1
      Source

      25. Deforestation commitment applies to scheme smallholders and independent suppliers?

      The company states: "This policy statement applies to HSPHB and all of its subsidiaries. In situation where HSPHB has minority interest, we will encourage the application of this policy among our business partners including contractors, suppliers, trading and JV partners, as well as investment in which we do not hold a controlling interest." The company does not have scheme smallholders

    • Yes
      1 / 1
      Source

      26. Criteria for defining deforestation?

      HCS, HCV, peat

    • Yes
      1 / 1
      Source

      27. Evidence of monitoring deforestation?

      The company patrols the perimeter of its forest reserves on a monthly basis to identify illegal encroachment

    • Yes
      1 / 1
      Source

      28. Examples of habitat management and/or habitat restoration?

      The company states it has worked to conserve the Jelutong tree by strong replanting efforts, 60 ha has been set aside for planting of Sepat, a wetland timber species, and management plans for the HCV area are being updated annually by its internal assessment team

    • Partial
      0.5 / 1
      Source

      29. Implementing a landscape-level approach to biodiversity conservation?

      The company has complete guidelines on biodiversity management at the landscape level using an HCV approach but no further updates could be found

    • Yes
      1 / 1
      Source

      30. Commitment to biodiversity conservation?

    • Partial
      0.5 / 1
      Source

      31. Commitment to not endanger species of conservation concern, referencing international or national system of species classification?

      The company has a Rare, Threatened and Endangered Species Policy but no mention of a species classification system could be found

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

      33. Examples of species conservation activities?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 3.5 / 7 50%
    • 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.

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      Source

      35. HCV commitment applies to scheme smallholders and independent suppliers?

      The company states: "This policy statement applies to HSPHB and all of its subsidiaries. In situation where HSPHB has minority interest, we will encourage the application of this policy among our business partners including contractors, suppliers, trading and JV partners, as well as investment in which we do not hold a controlling interest." The company does not have scheme smallholders

    • Yes
      1 / 1
      Source

      36. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?

    • No
      0 / 1
      Source

      37. High Conservation Value (HCV) assessments for planting undertaken prior to January 2015, and associated management and monitoring plans?

      The company only states an HCV assessment and management plan has been completed for one area, but no summaries or documents are publicly available

    • n/a
      -
      No source

      38. High Conservation Value (HCV) assessments for all estates planted since January 2015?

      This indicator is disabled as according to 2015, 2016 and 2017 RSPO ACOPs no new planting has occurred

    • n/a
      -
      No source

      39. High Conservation Value (HCV) management and monitoring plans for all estates planted since January 2015?

      This indicator is disabled as according to 2015, 2016 and 2017 RSPO ACOPs no new planting has occurred

    • n/a
      -
      No 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 2015, 2016 and 2017 RSPO ACOPs no new planting has occurred

    • Yes
      1 / 1
      Source

      41. Commitment to the High Carbon Stock (HCS) Approach?

    • n/a
      -
      No source

      42. High Carbon Stock (HCS) assessments?

      This indicator is disabled as according to 2016 and 2017 RSPO ACOPs no new planting has occurred

    • Partial
      0.5 / 1
      Source

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

      This company does not have an explicit commitment itself, but commits under the RSPO New Planting Procedures (NPP) as an RSPO member

    • No
      0 / 1
      No source

      44. Social and environmental impact assessments (SEIAs) undertaken, and associated management and monitoring plans?

  • Peat, fire and GHG emissions Peat, fire and GHG emissions 11 / 15 73.3%
    • 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.

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      Source

      46. Peat commitment applies to scheme smallholders and independent suppliers?

      The company states: "This policy statement applies to HSPHB and all of its subsidiaries. In situation where HSPHB has minority interest, we will encourage the application of this policy among our business partners including contractors, suppliers, trading and JV partners, as well as investment in which we do not hold a controlling interest." The company does not have scheme smallholders

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

      48. Landbank or planted area on peat?

      0

    • Yes
      1 / 1
      Source

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

      The company details best management practices for soils. It does not operate on peatland

    • Yes
      1 / 1
      Source

      50. Commitment to zero burning?

    • No
      0 / 1
      Source

      51. Zero burning commitment applies to scheme smallholders and independent suppliers?

      The company states: "This policy statement applies to HSPHB and all of its subsidiaries. In situation where HSPHB has minority interest, we will encourage the application of this policy among our business partners including contractors, suppliers, trading and JV partners, as well as investment in which we do not hold a controlling interest." The company does not have scheme smallholders

    • Partial
      0.5 / 1
      Source

      52. Evidence of management and monitoring fires?

      The company patrols the perimeter of its forest reserves on a monthly basis to identify signs of fire. It states "Our next step in monitoring fires/hotspots is by using the Global Fire Watch Portal."

    • Yes
      1 / 1
      Source

      53. Details/number of hotspots/fires in company estates?

    • No
      0 / 1
      No source

      54. Details/number of hotspots/fires within surrounding landscape/smallholders?

    • Yes
      1 / 1
      Source

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

      The company has a commitment to reduce GHG emissions to between 1.0 to 1.5 tonnes CO2e/tonne CPO by 2021

    • Yes
      1 / 1
      Source

      56. GHG emissions from land use change?

      The company states in its 2017 Sustainability Report that land conversion constitutes 69% of gross emissions, and gives a figure for emissions from land clearing in 2017

    • Yes
      1 / 1
      Source

      57. Methodology used to calculate GHG emissions?

      RSPO PalmGHG calculator v3.0.1

    • Yes
      1 / 1
      Source

      58. Progress towards commitment to reduce GHG emissions intensity?

      The company states that the GHG value of the Group was reduced to 1.89 mt CO2e/metric tonne (mt) Crude Palm Oil (CPO) or equivalent to 6% lower than year 2016

    • Partial
      0.5 / 1
      Source

      59. Percentage of mills with methane capture (100%)?

      2 (50%)

  • Water, chemical and pest management Water, chemical and pest management 8.5 / 12 70.8%
    • 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).

    • Yes
      1 / 1
      Source

      60. Time-bound commitment to improve water use per tonne of FFB Processed?

      2,016 - The company had a target of 1.3 tonnes of water used per tonne of processed FFB, which was met in 2016

    • Partial
      0.5 / 1
      Source

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

      2,020 - The company has a target to achieve BOD levels of 20ppm at all mills by 2020, but does not have a commitment to improve COD levels

    • Partial
      0.5 / 1
      Source

      62. Progress towards commitment on water use?

      In 2017, the company did not achieve its 2016 target of 1.3 MT Water/MT FFB. It reports a figure of 1.52 MT Water/MT FFB which went up from 1.33 in 2016

    • Partial
      0.5 / 1
      Source

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

      The company is progressing towards its target to reduce BOD levels to 20ppm, but does not report COD levels

    • Yes
      1 / 1
      Source

      64. Protection of natural waterways through buffer zones?

    • Yes
      1 / 1
      Source

      65. Evidence of treating palm oil mill effluent (POME)?

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

      67. No use of paraquat?

    • No
      0 / 1
      Source

      68. No use of World Health Organisation (WHO) Class 1A and 1B pesticides?

      The company states it is in the preliminary stage to minimise and phase out the use of WHO 1A and 1B category chemicals and is exploring the possibility of replacing them with more suitable alternatives, however no time-bound plan for phasing them out is given

    • No
      0 / 1
      No source

      69. No use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

    • Yes
      1 / 1
      Source

      70. Integrated Pest Management (IPM) approach?

    • Yes
      1 / 1
      Source

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

      Reports toxicity per hectare of herbicides used

  • Community, land and labour rights Community, land and labour rights 13.5 / 19.5 69.2%
    • 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.

    • Yes
      1 / 1
      Source

      72. Commitment to human rights, referencing the UN Declaration of Human Rights or UN Guiding Principles on Business and Human Rights?

    • No
      0 / 1
      Source

      73. Commitment to human rights applies to scheme smallholders and independent suppliers?

      The company states: "This policy statement applies to HSPHB and all of its subsidiaries. In situation where HSPHB has minority interest, we will encourage the application of this policy among our business partners including contractors, suppliers, trading and JV partners, as well as investment in which we do not hold a controlling interest." The company does not have scheme smallholders

    • Yes
      1 / 1
      Source

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

    • Partial
      0.5 / 1
      Source

      75. Commitment to respect indigenous and local communities' rights, referencing the UN Declaration on the Rights of Indigenous Peoples or ILO 169?

      The company respects the rights of indigenous and local communities, but does not reference the UN Declaration of the Rights of Indigenous Peoples

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      Source

      77. FPIC commitment applies to independent suppliers?

      The company states: "This policy statement applies to HSPHB and all of its subsidiaries. In situation where HSPHB has minority interest, we will encourage the application of this policy among our business partners including contractors, suppliers, trading and JV partners, as well as investment in which we do not hold a controlling interest"

    • No
      0 / 1
      No source

      78. Details of free, prior and informed consent (FPIC) process available?

    • Yes
      1 / 1
      Source

      79. Details of process for addressing land conflicts available?

    • No
      0 / 1
      No source

      80. Commitment to mitigate impacts on food security?

    • Yes
      1 / 1
      Source

      81. Commitment to provide essential community services and facilities?

    • Yes
      1 / 1
      Source

      82. Commitment to respect all workers' rights?

    • Yes
      1 / 1
      Source

      83. Reference to Fundamental ILO Conventions or Free and Fair Labour Principles?

    • Yes
      0.5 / 0.5
      Source

      84. Total number of employees?

      7,192

    • No
      0 / 1
      No source

      85. Percentage or number of temporary employees?

    • Yes
      1 / 1
      Source

      86. Percentage or number of women employees?

      Female management: 14%
      Female staff: 38%
      Female workers: 37%

    • Partial
      0.5 / 1
      Source

      87. Commitment to pay minimum wage?

      The company states it pays minimum wage but no evidence is given

    • Yes
      1 / 1
      Source

      88. Commitment to address occupational health and safety?

    • Yes
      1 / 1
      Source

      89. Time lost due to work-based injuries?

      1.1 - Lost time accident rate (per 200,000 working hours)

    • Yes
      1 / 1
      Source

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

      1

    • Yes
      1 / 1
      Source

      91. Provision of personal protective equipment and pesticide training?

  • Certification standards Certification standards 9.5 / 12 79.2%
    • 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.

    • Yes
      1 / 1
      Source

      92. Member of the Roundtable on Sustainable Palm Oil (RSPO)?

      2,005

    • Yes
      0.5 / 0.5
      Source

      93. Submitted most recent RSPO Annual Communication of Progress (ACOP)?

    • Yes
      0.5 / 0.5
      Source

      94. Listed all countries and regions in which operates in most recent RSPO Annual Communication of Progress (ACOP)?

      The company states it operates in Malaysia (Sabah)

    • Yes
      0.5 / 0.5
      Source

      95. Time-bound plan for achieving 100% RSPO certification of estates within 5 years or achieved 100% RSPO-certification of estates?

      2,019

    • n/a
      -
      No source

      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?

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

    • n/a
      -
      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.

    • No
      0 / 0.5
      Source

      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?

      2,012 - The company joined the RSPO in 2005 and certified its first plantation estate in 2012

    • Yes
      2 / 2
      Source

      99. Percentage of mills RSPO-certified (above 75%)?

      4 (100%)

    • Yes
      2 / 2
      Source

      100. Percentage of area (ha) RSPO-certified (above 75%)?

      32,816.6 (81.6%)

    • n/a
      -
      No source

      101. Percentage of scheme/associated smallholders (ha) RSPO-certified (above 75%)?

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

    • No
      0 / 2
      Source

      102. Percentage of FFB supply (tonnes) from independent FFB suppliers that is RSPO-certified (above 75%)?

      0 (0%)

    • n/a
      -
      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.

    • Yes
      1 / 1
      Source

      104. Sells or processes/trades RSPO-certified palm oil through Segregated or Identity Preserved supply chains?

      Mass Balance, Segregated, Identity Preserved

    • n/a
      -
      No source

      105. Indonesia Sustainable Palm Oil (ISPO) certified (100%)?

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

    • Yes
      1 / 1
      Source

      106. Malaysia Sustainable Palm Oil (MSPO) certified?

      The company has achieved 100% MSPO certification

    • Yes
      1 / 1
      Source

      107. Certified under voluntary sustainability certification scheme (e.g. ISCC, SAN, RSB, etc.)?

      ISCC certified

  • Smallholders and suppliers Smallholders and suppliers 2 / 5 40%
    • 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.

    • n/a
      -
      No source

      108. Programme to support scheme smallholders?

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

    • n/a
      -
      No source

      109. Number or percentage of scheme smallholders involved in programme?

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

    • Yes
      1 / 1
      Source

      110. Programme to support independent smallholders?

      The company is helping smallholders achieve RSPO certification

    • Yes
      1 / 1
      Source

      111. Number or percentage of independent smallholders involved in programme?

      3

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      113. Suspension or exclusion criteria for suppliers?

    • No
      0 / 1
      No source

      114. Percentage of suppliers assessed and/or engaged on compliance with company requirements?

  • Governance and grievances Governance and grievances 6 / 6 100%
    • 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.

    • Yes
      1 / 1
      Source

      115. Commitment to ethical conduct and prohibition of corruption?

    • Yes
      1 / 1
      Source

      116. Whistleblowing procedure?

    • Yes
      1 / 1
      Source

      117. Own grievance or complaints system?

    • Yes
      1 / 1
      Source

      118. Grievance or complaints system is accessible to internal and external stakeholders?

    • Yes
      2 / 2
      Source

      119. Details of grievances disclosed?

Media monitor: Hap Seng Plantation Holdings Bhd

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.

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Research protocols: Hap Seng Plantation Holdings Bhd

Research protocols 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.

SPOTT is a ZSL initiative.
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