Indofood Agri Resources Ltd

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

The company has a Sustainable Palm Oil Policy.

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

Policy applies to plasma smallholders and third party suppliers from whom it purchases crude palm oil (CPO) for refineries.

3. High-level position of responsibility for sustainability?

Overall guidance on sustainability is led by the CEO in a think tank that comprises Executive Directors of the Group and principal subsidiaries.

4. Sustainability report published within last two years?

Last published for 2017.

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

6. Verification report on compliance with POIG Charter, if a POIG member?

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

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

Working with IDH to certify smallholders to higher standards.

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

356562 - Figure reported by the company's subsidiary, Salim Ivomas Pratama, which includes the area for London Sumatra. Data as of 2017.

9. Total oil palm planted area (ha)?

247629 - Figure reported by the company's subsidiary, Salim Ivomas Pratama, which includes the area for London Sumatra. Data as of 2017.

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

51460 - Figure reported by the company's subsidiary, Salim Ivomas Pratama, which includes the area for London Sumatra. Data as of 2017.

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

20000 - Figure reported by the company's subsidiary, Salim Ivomas Pratama, which includes the area for London Sumatra. Data as of 2017.

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

23279 - Total land designated and managed as HCV areas. Figure reported by the company's subsidiary, Salim Ivomas Pratama, which includes the area for London Sumatra. Data as of 2017.

13. Area for infrastructure (ha)?

14194 - Figure reported by the company's subsidiary, Salim Ivomas Pratama, which includes the area for London Sumatra. Data as of 2017.

14. Number and names of company owned mills?

26 - The company does not provide the names of company owned mills.

15. Maps or coordinates of company owned mills?

Some of the company's mill locations are available on Global Forest Watch. However, it is unclear if the maps disclosed constitute 100% of the company's palm oil mills.

16. Number and names of supplier mills?

31 - The company states it has 56 mills supplying CPO, of which 25 are company mills. The company does not provide the names and parent companies of supplier mills.

17. Maps of estates/management units?

Some of the company's estate locations are available on Global Forest Watch. The company's subsidiaries are RSPO members and aren't listed as having not submitted concession maps. However, ZSL is currently unable to ascertain if the maps disclosed constitute 100% of the company's palm oil estates. Maps will become available on GeoRSPO.

18. Maps of scheme/plasma smallholders?

19. Time-bound commitment to achieve 100% traceability to mill level?

2020 - The company commits to achieve 100% product traceability and sustainable palm oil sourcing by 2020 and states that all CPO arriving at its refineries can be traced back to the supplier mill (data as of 2017).

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

2020 - The company commits to achieve 100% product traceability and sustainable palm oil sourcing by 2020, but it does not specify to plantation level.

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

100% - The company states that all of the CPO arriving at its refineries can be traced back to a supplier mill. Data as of 2017.

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

100% - Data as of 2017.

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

24. Commitment to zero deforestation?

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

26. Criteria for defining deforestation?

Primary forest, HCV, HCS, peat.

27. Evidence of monitoring deforestation?

The company states that it carries out remote-sensing to prevent clearance of HCV land and regularly monitor HCV areas. The company reports no primary forest clearance and no degradation of HCV areas in 2017.

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

HCV Rehabilitation Plans to deliver enriched biodiversity and/or afforestation in existing HCV areas, especially riparian areas.

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

30. Commitment to biodiversity conservation?

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

The company provides a list of IUCN Red List species found on its estates and has a commitment to continuously conserve existing biodiversity and rare/endangered species that are local to its operations.

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

The company states that it regularly communicates with employees and communities the importance of restrictions on hunting activities, and that the collecting of rare/endangered species is prohibited. However, it does not have a clear commitment to no hunting.

33. Examples of species conservation activities?

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

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

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

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

The company states in 2017 that 100% of its sites have HCV Management Plans and Rehabilitation Plans in place. However, an HCV assessment report or summary undertaken prior to January 2015 could not be identified.

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

The following HCV assessments are publicly available: PT. PP London Sumatra Indonesia - Wilayah Pahu Makmur Estate and Kedang Makmur Estate; PT. PP London Sumatra Indonesia - Wilayah Indah Permai Estate. It is unclear if these cover all estates planted since January 2015. The 2017 ACOP for PT. Salim Ivomas Pratama Tbk also states that 1,130.76 ha has been planted and New Planting Procedures notifications have been submitted. However, this could not be identified on the New Planting Procedures Public Notification index.

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

The following HCV management and monitoring plans are publicly available: PT. PP London Sumatra Indonesia - Wilayah Pahu Makmur Estate and Kedang Makmur Estate; PT. PP London Sumatra Indonesia - Wilayah Indah Permai Estate. It is unclear if these cover all estates planted since January 2015. The 2017 ACOP for PT. Salim Ivomas Pratama Tbk also states that 1,130.76 ha has been planted and New Planting Procedures notifications have been submitted. However, this could not be identified on the New Planting Procedures Public Notification index.

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

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

42. High Carbon Stock (HCS) assessments?

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

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

The following SEIA assessments are publicly available: PT. PP London Sumatra Indonesia - Wilayah Pahu Makmur Estate and Kedang Makmur Estate; PT. PP London Sumatra Indonesia - Wilayah Indah Permai Estate.

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

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

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

48. Landbank or planted area on peat?

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

Drainage channels, watergates, and overflows; maintenance of daily soil water depth; soil erosion controls.

50. Commitment to zero burning?

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

52. Evidence of management and monitoring fires?

Satellite monitoring of hotspots; fire control training; awareness-raising work with employees, villages and provincial government; new fire towers.

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

The company reports that daily monitoring of hotspots based on reliable satellite data is undertaken, but no information is provided on the number of hotspots recorded within the company's own estates.

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

The company reports that daily monitoring of hotspots based on reliable satellite data is undertaken, but no information is provided on the number of hotspots recorded within surrounding landscape and/or smallholder estates.

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

The company has a general commitment to reduce GHG emissions, but does not have a time-bound plan for reducing emission intensity. The company only states targets in relation to reducing energy consumption in palm oil mills and refineries up to 5% and 3% respectively by 2018.

56. GHG emissions from land use change?

0.95 tonnes CO2 e/tonne of CPO (2017); 1.16 (2016); 0.98 (2015).

57. Methodology used to calculate GHG emissions?

RSPO Palm GHG Calculator V3.0.1.

58. Progress towards commitment to reduce GHG emissions intensity?

The company reports that total net emissions in 2017 for each tonne of CPO and palm kernel (PK) were 1.54 tonnes CO2e, a decline from 2016 (1.79 tonnes CO2e). The company does not currently have a time-bound target for reducing emissions.

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

3 (8.6%)

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

The company has a target to reduce water consumption per tonne FFB processed in palm oil mills by 3% by 2018 (2016 baseline).

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

62. Progress towards commitment on water use?

Progressing towards commitment: achieved 0.2% reduction in water consumption per FFB processed in palm oil mills (2016 baseline). Data as of 2017.

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

The company reports BOD levels for mills and refinery effluents. These were within regulatory limits in 2015, 2016, and 2017. No data is provided for COD.

64. Protection of natural waterways through buffer zones?

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

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

The company states that it attempts to reduce chemical use on its estates, but does not have a clear commitment mentioning both pesticides and fertilisers.

67. No use of paraquat?

In its 2017 Sustainability Policy the company commits to immediately stop the use of paraquat (and products containing paraquat and its related compounds). However, the company's 2017 Sustainability Report sets a target for the phasing out of paraquat by March 2018, rather than an immediate stop. No information could be identified on whether this target date has been met by the company.

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

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

70. Integrated Pest Management (IPM) approach?

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

The company reports consumption of herbicides, fungicides, insecticides, rodenticides and paraquat in litres. However, the names of chemicals used or levels of use per hectare are not reported.

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

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

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

The company states that it engages with local communities and governments to establish land tenure rights and that its land acquisition process complies with Indonesian law and regulations.

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

The company states it commits to comply with Indonesian National Laws and ratified International Treaties on indigenous peoples' rights, but does not reference any specific relevant international treaties.

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

77. FPIC commitment applies to independent suppliers?

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

79. Details of process for addressing land conflicts available?

The company reports that it has a land conflict resolution mechanism to investigate claims and disputes, but limited details are provided.

80. Commitment to mitigate impacts on food security?

The company reports that it has a project involving food security on its Kayangan estate in Riau.

81. Commitment to provide essential community services and facilities?

82. Commitment to respect all workers' rights?

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

The company does not commit to equal remuneration and lacks a full commitment to no discrimination.

84. Total number of employees?

74434 - 38,104 in permanent full-time positions; 1,548 on short-term contracts; 34,782 casual labourers. Data as of 2016.

85. Percentage or number of temporary employees?

36330 (49%)

86. Percentage or number of women employees?

15159 (20%)

87. Commitment to pay minimum wage?

The company has a commitment to comply with minimum wage regulations and reports that it paid all employees and workers above the minimum wages of its respective region in 2017. However, no evidence is provided to support this claim.

88. Commitment to address occupational health and safety?

89. Time lost due to work-based injuries?

Accident frequency rate of 1.8 accidents per million man-hours in 2017, up from 1.6 in 2016.

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

1 - Data as of 2017. Down from 6 in 2016.

91. Provision of personal protective equipment and pesticide training?

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

The subsidiary PT Salim Ivomas Pratama Terbuka has been an RSPO member since 2007, and its subsidiary PT PP London Sumatra Terbuka has been an RSPO member since 2004.

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

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

The company's subsidiary Salim Ivomas Pratama states all the countries and regions in which it operates: Indonesia (West Kalimantan, East Kalimantan, Central Kalimantan, Riau, North Sumatra, South Sumatra).

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

2019 - NB. Targets of 2013 and 2016 have been extended by the company.

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?

2020 - NB. Targets of 2016 and 2019 have been extended by the company.

97. Year expected to achieve 100% RSPO certification of all palm product processing facilities?

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?

2009 - The company's subsidiaries London Sumatra joined the RSPO in 2004 and certified its first plantation estate in 2009, and Salim Ivomas Pratama joined the RSPO in 2007 and certified its first plantation estate in 2009.

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

11 (42%) - Data as of 2017.

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

106119 (40.5%) - Data as of 2017.

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

0 (0%) - NB. The company has extended its target to achieve RSPO certification of all plasma smallholders estates to 2020.

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

1.4% - 6,200 tonnes of the 444,943.62 tonnes FFB volume supplied to the company is RSPO certified.

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

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

Book and Claim; Mass Balance; Identity Preserved.

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

46% - 389,000 tonnes (46%) of total CPO produced in 2017.

106. Malaysia Sustainable Palm Oil (MSPO) certified?

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

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

The company has a target to certify 24 palm oil mills and 3 refineries to ISO 14001 by 2019, but it is not clear if any facilities currently hold this.

108. Programme to support scheme smallholders?

Smallholders Programme mainly focused on improving yields, income, and RSPO certification.

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

110. Programme to support independent smallholders?

Smallholders Programme working to achieve RSPO certification of ex-plasma and independent smallholders.

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

3144 - Data as of 2017.

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

The company states all of its mills and third party suppliers must demonstrate understanding and accept the requirements of its Sustainable Palm Oil Policy. These actors must respond to a questionnaire to help affirm this. The company also states that it will annually audit suppliers.

113. Suspension or exclusion criteria for suppliers?

The company states that it will not source from suppliers who are in contravention of its Sustainable Palm Oil Policy or fail to set reasonable time-bound targets to adopt it. In 2017, the company reported that all mills were audited against its Policy requirements and by 2020 all CPO suppliers are due to operate in accordance with this Policy.

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

In 2016, the company reported that suppliers of 80% of its CPO requirements had undergone an initial audit against their sourcing policy. However, this does not cover all types of company supplier.

115. Commitment to ethical conduct and prohibition of corruption?

116. Whistleblowing procedure?

117. Own grievance or complaints system?

The company indicates that it has grievance mechanisms in place, but no further details are provided.

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

119. Details of grievances disclosed?

The company only states it had one grievance in relation to land rights in 2009.