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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 2017

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: 66.2% 71.5 / 108
  • Sustainability policy and leadership Sustainability policy and leadership 4 / 6 66.7%
    • 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.

    • Partial
      0.5 / 1
      Source

      7. Activities with government and/or NGOs to improve palm oil sustainability?

      The company engages with the government on riparian areas to protect waterways, but no further details are given

  • Landbank, maps and traceability Landbank, maps and traceability 8.5 / 11 77.3%
    • 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)?

      40,279

    • Yes
      1 / 1
      Source

      9. Total oil palm planted area (ha)?

      38,776.6

    • 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)?

      0

    • Yes
      1 / 1
      Source

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

      1,401.98

    • Partial
      0.5 / 1
      Source

      13. Area for infrastructure (ha)?

      The company reports a figure of 4,020 ha to include "Buildings, roads, reserves, etc." but it is not clear how much of this is specifically for infrastructure

    • Yes
      1 / 1
      Source

      14. Number of company owned mills?

      4

    • Yes
      1 / 1
      Source

      15. Maps or coordinates of company owned mills?

      Names and coordinates of mills are published in the 2014 Sustainability Report and 2015 RSPO ACOP. Location of one mill has been disclosed through Global Forest Watch

    • 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 their 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.

    • Partial
      1 / 2
      Source

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

      47% - The RSPO reports the company has two mills that are identity preserved, covering 21,343 ha. This represents 47% of its total landbank of 40,279 ha

    • n/a
      -
      No source

      23. Percentage of fresh fruit bunches (FFB) from supplier mills traceable to plantation level (is above 75%)?

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

  • Deforestation and biodiversity Deforestation and biodiversity 8 / 12 66.7%
    • 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
      0.5 / 0.5
      Source

      24. Commitment to address deforestation?

    • Yes
      1 / 1
      Source

      25. Commitment to zero deforestation?

    • Partial
      0.5 / 1
      Source

      26. 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". Hap Seng does not have scheme smallholders

    • Yes
      1 / 1
      Source

      27. Criteria for defining deforestation?

      No deforestation of areas defined as high carbon stock (HCS) by the HCS Approach or areas containing high conservation values (HCV)

    • No
      0 / 1
      No source

      28. Evidence of monitoring deforestation?

    • Yes
      1 / 1
      Source

      29. Commitment to set aside areas for conservation?

    • Yes
      1 / 1
      Source

      30. Evidence 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

      31. A landscape-level approach?

      The company has a commitment to "complete guidelines on biodiversity management at landscape level using an HCV approach" by 2016 but no further updates could be found

    • Yes
      0.5 / 0.5
      Source

      32. Commitment to biodiversity conservation?

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      No source

      35. Commitment not to operate within internationally and nationally designated protected areas?

    • Yes
      1 / 1
      Source

      36. Evidence of species conservation activities?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 4 / 7 57.1%
    • 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

      37. Commitment to High Conservation Value (HCV) approach?

    • Partial
      0.5 / 1
      Source

      38. 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". Hap Seng does not have scheme smallholders

    • Yes
      1 / 1
      Source

      39. 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

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

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

    • n/a
      -
      Source

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

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

    • n/a
      -
      Source

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

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

    • n/a
      -
      Source

      43. 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 and 2016 RSPO ACOPs no new planting has occurred

    • Yes
      1 / 1
      Source

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

    • n/a
      -
      No source

      45. High Carbon Stock (HCS) assessments?

      This indicator is disabled as no new planting in 2016 as reported in RSPO ACOP

    • Partial
      0.5 / 1
      Source

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

      The company is an RSPO member and therefore commits under the RSPO NPP, but does not have an explicit commitment itself

    • No
      0 / 1
      No source

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

  • Peat, fire and GHG emissions Peat, fire and GHG emissions 10 / 17 58.8%
    • 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

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

    • Partial
      0.5 / 1
      Source

      49. 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". Hap Seng does not have scheme smallholders

    • Yes
      1 / 1
      Source

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

      The company commits to implementing best management practices for peat and adhere to best soil conservation practice

    • No
      0 / 1
      Source

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

      0 - The company only states that they have not planted on any peat since 2011

    • Partial
      0.5 / 1
      Source

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

      The company only details best management practices for soils

    • Yes
      1 / 1
      Source

      53. Commitment to zero burning?

    • Partial
      0.5 / 1
      Source

      54. 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". Hap Seng does not have scheme smallholders

    • No
      0 / 1
      No source

      55. Evidence of management and monitoring fires?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

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

      The company has a commitment to reduce GHG emissions but it is not time-bound

    • Partial
      0.5 / 1
      Source

      59. GHG 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". Hap Seng does not have scheme smallholders

    • Yes
      1 / 1
      Source

      60. GHG emissions?

      The company details GHG emissions for each mill and a total Group average which amounts to 2MTCO2e in 2016. The company also discloses its GHG emissions through the RSPO

    • Yes
      1 / 1
      Source

      61. GHG emissions from land use change?

      Land conversion constitutes 69% of gross emissions

    • Yes
      1 / 1
      Source

      62. Methodology used to calculate GHG emissions?

      RSPO PalmGHG calculator v3.0.1

    • Yes
      1 / 1
      Source

      63. Progress towards commitment to reduce GHG emissions?

      The company states it has reduced the Group emission average from 2.35MTCO2e in 2014 to 2.00MTCO2e in 2016

    • Partial
      0.5 / 1
      Source

      64. Percentage of mills with methane capture (is above 75%)?

      2 (50%)

  • Water, chemical and pest management Water, chemical and pest management 9 / 12 75%
    • 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

      65. Time-bound commitment to improve water use?

      2016 target of 1.3 tonnes of water used per tonne of processed FFB

    • Partial
      0.5 / 1
      Source

      66. Time-bound commitment to improve water quality?

      The company states that in sensitive areas along major rivers it has a target of 20 ppm for BOD. The year for achieving this varies by palm oil mill from 2017 to 2020

    • Yes
      1 / 1
      Source

      67. Progress towards commitment on water use?

      The company states it has achieved its 2016 target of 1.3 tonnes of water used per tonne of processed FFB

    • Partial
      0.5 / 1
      Source

      68. Progress towards commitment on water quality?

      The company has targets to reduce BOD level to 20ppm for various mills over time, and reports figures on progress towards targets but target not yet met

    • Yes
      1 / 1
      Source

      69. Protection of natural waterways through buffer zones?

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

      72. No use of paraquat?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

      75. Integrated Pest Management (IPM) approach?

    • Yes
      1 / 1
      Source

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

      Report toxicity per hectare

  • Community, land and labour rights Community, land and labour rights 13.5 / 18 75%
    • 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

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

    • Yes
      1 / 1
      Source

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

      The company states "We are committed to respecting legal and customary land rights of communities" and that it respects land tenure rights

    • Partial
      0.5 / 1
      Source

      79. 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

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

    • Partial
      0.5 / 1
      Source

      81. 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

      82. Free, prior and informed consent (FPIC) process?

    • Partial
      0.5 / 1
      Source

      83. Process for addressing land conflicts?

      The company states in its 2015 ACOP it has a conflict resolution document but it is not publically available and it is unclear whether this refers to land conflicts

    • No
      0 / 1
      No source

      84. Commitment to ensure food security for local communities?

    • Yes
      1 / 1
      Source

      85. Commitment to respect all workers' rights?

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

      87. Total number of employees?

      7,331

    • No
      0 / 1
      No source

      88. Percentage or number of temporary employees?

    • Yes
      1 / 1
      Source

      89. Percentage or number of women employees?

      Female management: 11.3%
      Female executive: 41.2%
      Female workers: 35.9%

    • Yes
      1 / 1
      Source

      90. Minimum wage that the company pays?

    • Yes
      1 / 1
      Source

      91. Commitment to address occupational health and safety?

    • Yes
      1 / 1
      Source

      92. Lost time accident rate?

      1.6 - Per 200,000 working hours

    • Yes
      1 / 1
      Source

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

      0

    • Yes
      1 / 1
      Source

      94. Provision of personal protective equipment and pesticide training?

  • Certification standards Certification standards 9 / 12 75%
    • 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

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

      2005

    • Yes
      0.5 / 0.5
      Source

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

    • Yes
      0.5 / 0.5
      Source

      97. 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

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

      2019

    • n/a
      -
      No source

      99. 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

      100. Time-bound plan for achieving 100% RSPO certification of all supply chains?

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

    • No
      0 / 0.5
      Source

      101. 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?

      2012 - Hap Seng joined the RSPO in 2005 and certified its first plantation estate in 2012

    • Yes
      2 / 2
      Source

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

      4 (100%)

    • Yes
      2 / 2
      Source

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

      32,816.6 (81.5%)

    • n/a
      -
      No source

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

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

    • No
      0 / 2
      No source

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

      0 (0%)

    • n/a
      -
      No source

      106. Percentage of all palm oil and oil palm products handled/traded/processed (tonnes) that are RSPO-certified (is above 75%)?

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

    • Yes
      1 / 1
      Source

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

      Mass Balance, Identity Preserved

    • n/a
      -
      No source

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

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

    • Partial
      0.5 / 1
      Source

      109. Malaysia Sustainable Palm Oil (MSPO) certified (100%)?

      The company has one estate MSPO-certified

    • Yes
      1 / 1
      Source

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

      ISCC certified

  • Smallholders and suppliers Smallholders and suppliers 2 / 6 33.3%
    • 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

      111. Programme to support scheme smallholders?

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

    • n/a
      -
      No source

      112. Details of support programme for scheme smallholders?

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

    • n/a
      -
      No source

      113. 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

      114. Programme to support independent smallholders?

    • Yes
      1 / 1
      Source

      115. Details of support programme for independent smallholders?

      The company supports independent smallholders in gaining RSPO certification and to be integrated into the supply chain

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      Source

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

      The company only states "To ensure that we will eventually be able to deliver 100% RSPO certified CPO from all our mills, we are engaging with outgrowers in order to raise awareness about sustainable palm oil and the benefits of becoming certified"

    • No
      0 / 1
      No source

      118. Suspension or exclusion criteria for suppliers?

    • No
      0 / 1
      No source

      119. Number or percentage of suppliers assessed and/or engaged?

  • Governance and grievances Governance and grievances 3.5 / 7 50%
    • 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

      120. Commitment to ethical conduct and prohibition of corruption?

    • Yes
      1 / 1
      Source

      121. Whistleblowing procedure?

    • Partial
      0.5 / 1
      Source

      122. Own grievance or complaints system?

      The company state they have a grievance procedure but no further details could be found

    • Yes
      1 / 1
      Source

      123. Grievance system accessible to internal stakeholders (i.e. employees)?

    • No
      0 / 1
      No source

      124. Grievance system accessible to external stakeholders?

    • No
      0 / 2
      No source

      125. Details of grievances disclosed?

Media monitor: Hap Seng Plantation Holdings Bhd

SPOTT gathers reports and stories from global media sources, covering specific company activities related to the assessment indicator categories. ZSL does not assess the validity of these reports.

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Research protocols:

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 125 indicators across 10 categories, aligned with corporate reporting initiatives.

Map of concessions: Hap Seng Plantation Holdings Bhd

Explore our interactive mapping tool for a satellite view of deforestation and fires in and around concession sites of companies featured on the SPOTT scorecard. These data can support SPOTT users in conducting further research to verify whether or not company commitments are being implemented on the ground.

Use the map search bar to find specific company concessions or locations. Click the concession sites marked by pins to zoom in for more information, then go to the company pages of featured concessions to view their assessments.

Hap Seng Plantation Holdings makes all of its mill locations available. Concession boundaries have been made available to the RSPO and the company declares these represent 100% of their concession sites, but not all may not be publicly available due to ongoing legal issues. Maps will become available on GeoRSPO. Some of the concessions are available on the SPOTT map.

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