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Palm oil assessments

Established in 1985, IJM Plantations is an associate of IJM Corporation and is engaged in

  • Parent company:
    IJM Corporation Bhd
  • Landbank (oil palm):
    76,655 hectares
  • Palm cultivation revenue:
    100%
  • Market cap:
    515,200,000 USD
  • Thomson Reuters ticker:
    IJMP.KL
  • Bloomberg ticker:
    IJMP MK
  • ISIN:
    MYL2216OO009
  • RSPO member?
    No. IJM joined the RSPO in 2004, but resigned in February 2016.
  • Website:

Company assessment: IJM Plantations 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: 58.7% 67.5 / 115
  • 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?

    • Partial
      0.5 / 1
      Source

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

      The policy applies to all operations of the company and its relevant business associates

    • Yes
      1 / 1
      Source

      3. High-level position of responsibility for sustainability?

      The company has a Group Sustainability Steering Team and Operations Sustainability Working Teams. The Group's Sustainability Strategy is overseen by the Board of Directors, and delivery overseen by the Management Committee

    • Yes
      1 / 1
      Source

      4. Sustainability report published within last two years?

      The company published its Sustainability Report as part of its latest Annual Report

    • 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?

      Ongoing collaborative project with The Forest Trust (TFT) on improving smallholders productivity and livelihood. Partnerships with Sabah Wildlife Department and Wildlife Rescue Unit on wildlife relocation and conservation, with WWF Sabah on river water stewardship and forest fire mitigation, Borneo Bird Club on avian fauna surveys and awareness programme, and Sabah Forestry Department on environmental education, among others

  • Landbank, maps and traceability Landbank, maps and traceability 9.5 / 13 73.1%
    • 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)?

      76,655 - This figure was calculated based on figures given on p.100 of the company's 2018 Annual Report

    • Yes
      1 / 1
      Source

      9. Total oil palm planted area (ha)?

      60,981 - Data as of 2018

    • Yes
      1 / 1
      Source

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

      9,151 - The company states it has more than 7,000 ha under the Plasma scheme in Indonesia and 2,151 ha of schemed smallholders in Malaysia

    • Yes
      1 / 1
      Source

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

      3,000 - The company states approximately 3,000 ha will be cultivated over the next two years

    • Yes
      1 / 1
      Source

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

      4,255

    • No
      0 / 1
      No source

      13. Area for infrastructure (ha)?

    • Yes
      1 / 1
      Source

      14. Number and names of company owned mills?

      6

    • 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.

    • Partial
      0.5 / 1
      Source

      17. Maps of estates/management units?

      The company provides coordinates of estates but does not show estate boundaries. There is a basic image file showing point locations of plantations

    • No
      0 / 1
      No source

      18. Maps of scheme/plasma smallholders?

    • 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%)?

      98%

    • 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 7.5 / 10 75%
    • 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 the policy is cascaded to smallholders and contractors, but it is unclear if it applies to all suppliers

    • Yes
      1 / 1
      Source

      26. Criteria for defining deforestation?

      Primary forest, HCV, HCS, peat

    • No
      0 / 1
      Source

      27. Evidence of monitoring deforestation?

      The company plans to use drones in the future to detect any encroachment activities in HCV areas

    • Yes
      1 / 1
      Source

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

      Rehabilitation of conservation sites and ex-situ mangrove rehabilitation project

    • Partial
      0.5 / 1
      Source

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

      The company states its recognition of the importance for a landscape approach, however limited details are given on its activities to implement this

    • 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 refers to wildlife protection and to endangered, rare and threatened species, and makes reference to the IUCN Red List, but does not have a clear commitment to protect species

    • 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?

      Biodiversity surveying, anti-poaching patrols, conservation awareness and managing human-wildlife conflict

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 4.5 / 11 40.9%
    • 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?

    • Partial
      0.5 / 1
      Source

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

      The company states the policy is cascaded to smallholders and contractors, but it is unclear if it applies to all suppliers

    • 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
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      40. Satisfactory review of all High Conservation Value (HCV) assessments undertaken since January 2015 by the HCV ALS Quality Panel?

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      No source

      42. High Carbon Stock (HCS) assessments?

    • Yes
      1 / 1
      Source

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

    • 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 10 / 15 66.7%
    • 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?

    • Partial
      0.5 / 1
      Source

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

      The company states it will strive to commit new development contractors and relevant stakeholders within the supply chain but it is unclear if this applies to all suppliers

    • 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?

      10%

    • Partial
      0.5 / 1
      Source

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

      The company details best management practices for peat, but not for soils

    • Yes
      1 / 1
      Source

      50. Commitment to zero burning?

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

      52. Evidence of management and monitoring fires?

    • Yes
      1 / 1
      Source

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

      Reports total number of fire incidences and area (ha) affected by fires for 2016, 2017 and 2018

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

      The company aims to minimise emissions, but it does not have a time-bound commitment to reduce GHG intensity

    • No
      0 / 1
      No source

      56. GHG emissions from land use change?

    • Yes
      1 / 1
      Source

      57. Methodology used to calculate GHG emissions?

      GHG Protocol

    • Partial
      0.5 / 1
      Source

      58. Progress towards commitment to reduce GHG emissions intensity?

      The group reports GHG emission intensity, but does not have a time-bound commitment to reduce this

    • Partial
      0.5 / 1
      Source

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

      The company's palm oil mill in Indonesia has a biogas capture plant

  • Water, chemical and pest management Water, chemical and pest management 7.5 / 12 62.5%
    • 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?

      The company has a target to reduce water use from 1.5 m3 to 1.4 m3 per tonne of FFB processed in the next three years

    • Partial
      0.5 / 1
      Source

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

      The company states that it strives to maintain effluent discharge quality at less than 500 mg/l (in excess of the regulatory stipulated limit). It does not refer to COD

    • Yes
      1 / 1
      Source

      62. Progress towards commitment on water use?

      The company reports an overall improvement in water usage per tonne of FFB processed from 2015 to 2018

    • Partial
      0.5 / 1
      Source

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

      The company reports BOD levels are within legal limits, but does not report on COD

    • Partial
      0.5 / 1
      Source

      64. Protection of natural waterways through buffer zones?

      The company states it has set-aside buffer zones, but it is unclear if this covers all of the company's operations

    • Yes
      1 / 1
      Source

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

    • Partial
      0.5 / 1
      Source

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

      The company states a commitment to minimise the use of chemicals and states it is exploring alternatives to reduce pesticide use. However, it does not mention fertiliser reduction

    • Partial
      0.5 / 1
      Source

      67. No use of paraquat?

      The company states it has stopped purchasing paraquat for Malaysian operations since 2015. However, it is unclear if the company still uses Paraquat in its Indonesian operations

    • No
      0 / 1
      Source

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

      The company states that "the Group is committed to reducing and phasing out chemicals that fall under the World Health Organization Class 1A and 1B" but no time-bound plan for achieving this is provided

    • No
      0 / 1
      Source

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

      The company states that "the Group is committed to reducing and phasing out chemicals that fall under the Stockholm or Rotterdam Conventions" but no time-bound plan for achieving this is provided

    • Yes
      1 / 1
      Source

      70. Integrated Pest Management (IPM) approach?

    • Yes
      1 / 1
      Source

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

      The company reports pesticide usage in kg/ha/annum from 2016 to 2018

  • 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?

    • Partial
      0.5 / 1
      Source

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

      The company states it has communicated its policy to its employees, contractors and smallholders and that it strives to commit its employees and the partners in its business supply chains to adhere to this policy, but it is not clear if the policy is applicable to all suppliers

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      No source

      77. FPIC commitment applies to independent suppliers?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No 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. tal number of employees?

      9,931 - Data as of 2018

    • No
      0 / 1
      No source

      85. Percentage or number of temporary employees?

    • Yes
      1 / 1
      Source

      86. Percentage or number of women employees?

      3,177 (32%)

    • Partial
      0.5 / 1
      Source

      87. Commitment to pay minimum wage?

      The company states that the minimum wage is paid. However, no evidence is provided

    • Yes
      1 / 1
      Source

      88. Commitment to address occupational health and safety?

    • Yes
      1 / 1
      Source

      89. Time lost due to work-based injuries?

      4.1 - Lost Time Injury Frequency Rate (per 1,000,000 hours worked)

    • Yes
      1 / 1
      Source

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

      0

    • Yes
      1 / 1
      Source

      91. Provision of personal protective equipment and pesticide training?

  • Certification standards Certification standards 2 / 15.5 12.9%
    • 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.

    • No
      0 / 1
      No source

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

      The company became an RSPO member in 2004. However, it resigned from the RSPO in February 2016

    • No
      0 / 0.5
      No source

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

    • No
      0 / 0.5
      No source

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

    • No
      0 / 0.5
      No source

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

    • No
      0 / 0.5
      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?

    • 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
      No 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?

    • No
      0 / 2
      No source

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

    • No
      0 / 2
      No source

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

    • No
      0 / 2
      No source

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

    • No
      0 / 2
      No source

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

    • 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.

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

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

      The company states its target to complete all Stage 1 audits was achieved, with the exception of two estates where certain pending documentation are yet to be issued by the relevant authorities

    • Partial
      0.5 / 1
      Source

      106. Malaysia Sustainable Palm Oil (MSPO) certified?

      The company states one mill and its three supplying estates are MSPO-certified

    • Yes
      1 / 1
      Source

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

      The company has ISCC certification for its operations in Malaysia

  • Smallholders and suppliers Smallholders and suppliers 3 / 7 42.9%
    • 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.

    • Partial
      0.5 / 1
      Source

      108. Programme to support scheme smallholders?

      The company is supporting smallholders, but it is unclear what types

    • Partial
      0.5 / 1
      No source

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

      The company states 82 smallholders had participated and were assessed under the Rurality project, but it is unclear if these are scheme or independent smallholders

    • Partial
      0.5 / 1
      Source

      110. Programme to support independent smallholders?

      The company is supporting smallholders, but it is unclear what types

    • Partial
      0.5 / 1
      No source

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

      The company states 82 smallholders had participated and were assessed under the Rurality project, but it is unclear if these are scheme or independent smallholders

    • Yes
      1 / 1
      Source

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

      The company conducts stakeholder engagement meetings and one-to-one meetings with briefing sessions to cover the Group's sustainability practices. The contractors also sign self-declarations of their commitments to comply with the Group's sustainability policies. The company is currently developing the self-assessment or evaluation forms for all engaged suppliers and contractors targeted to be implemented by the next reporting year

    • 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 5.5 / 6 91.7%
    • 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?

    • Partial
      0.5 / 1
      Source

      117. Own grievance or complaints system?

      The company states its Group Social Manual details its grievance procedures, but this is not publicly available

    • 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: IJM Plantations 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: IJM Plantations 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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