Kencana Agri Ltd

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

The company has published a sustainable palm oil policy which covers all palm oil operations.

2. Sustainable palm oil policy or commitment applies to all suppliers?

3. High-level position of responsibility for sustainability?

The company has Head of Sustainability who is in charge of the Sustainability Team.

4. One or more members within the board of the company have responsibility for sustainability?

The company reports having a Vice-Chairman appointed by the Board of Directors and is responsible for implementing sustainability initiatives.

5. Reports gender balance of senior management team?

0 (0%) - The company reports having a key management team and the profiles are available but the gender balance is not reported directly.

6. Reports gender balance of board members?

1 (14.28%) - The company reports having one woman member on the board of directors out of seven directors.

7. Member of multiple industry schemes or other external initiatives to reduce negative environmental or social outcomes associated with palm oil production?

8. Collaboration with stakeholders to reduce negative environmental or social outcomes associated with palm oil production?

The company is working with a variety of stakeholders on forest fire prevention and management in East Kalimantan. these stakeholders include: Indonesian National Defence Forces (TNI), Indonesian National Police (Polri), Indonesian National Police (Satpol PP), Muara Kaman subdistrict, DLHK (Environmental Agency), Dishub (Transportation Agency), and village authorities.

9. Sustainability report published within last two years?

The company has published a sustainability report for 2023.

10. Reports through standardised reporting systems?

The company has published its Sustainability Report 2023 following GRI 1: Foundation 2021 requirements.

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

This indicator is disabled as the company is not a POIG member.

12. Climate risks assessment available?

13. Lists countries and operations?

The company has plantations, mills and crushers located in Indonesia.

14. Lists countries sourcing from?

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

66846 - The company only reports the total planted area of oil palm as 66,846 ha.

16. Total oil palm planted area (ha)?

66846 - The company reports its total planted area as 50,436 ha of nucleus and 16,410 ha plasma area.

17. Scheme smallholders planted area (ha)?

16410 - The company reports its plasma area.

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

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

42600 - The company in its sustainability report 2019 reports that it conserves and protects more than 42,600 ha of HCV forest inside its concession areas. Data is between two and five years old.

20. Maps of estates/management units?

The company has only provided a static map of all its estates which is not to a local scale.

21. Maps of all scheme smallholders?

22. Maps of all third-party supplying plantations?

23. Number of company-owned mills?

7 - The company reports operating seven mills.

24. Names and locations of company-owned mills?

The company provides the map of six of seven company-owned mills on the GFW Universal mill list.

25. Number (or percentage) of company-owned mills that source from company-owned operations and third parties?

26. Reports total volumes (or percentages) sourced by company-owned mills that come from company-owned operations and third-parties?

The company reports that it produced a total of 775,280 tonnes of fresh fruit bunches (623,068 tonnes and 152,212 tonnes from the nucleus and plasma estates respectively), it is unclear if this is all processed at company owned mills and no figure for third-party is provided.

27. Number of third party supplying mills?

28. Names and locations of all third-party supplying mills?

29. Number (or percentage) of third party supplying mills that source from their own plantations and third party plantations?

30. Reports total volume (or percentages) sourced from third-party supplying mills that come from the supplying mills' own operations and third parties?

31. Total volume (or percentage) sourced for refineries that comes from intermediary traders and/or refiners rather than directly from mills?

This indicator is disabled as the company does not own refineries.

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

33. Percentage of supply traceable to mill level?

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

35. Percentage of fresh fruit bunches (FFB) supply to own mills traceable to plantation level?

36. Percentage of supply from third-party mills traceable to plantation level?

37. Publishes traceability data at refinery level?

This indicator is disabled as the company does not own refineries.

38. Publishes traceability data at crusher level?

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

40. 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?

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

42. Percentage of area (ha) RSPO-certified?

43. Percentage of mills RSPO-certified?

44. Time-bound plan for achieving 100% RSPO certification of estates and mills within 5 years?

45. Time-bound plan for achieving 100% RSPO certification of all palm product processing facilities within 5 years?

46. Percentage of scheme smallholders (ha) RSPO-certified?

47. Time-bound plan for achieving 100% RSPO certification of scheme/associated smallholders and outgrowers within 5 years or target already achieved?

48. Percentage of FFB supply (tonnes) from independent smallholders/outgrowers/third-party FFB suppliers that is RSPO-certified?

49. Percentage of all palm oil and oil palm products handled/traded/processed (tonnes) that is RSPO-certified?

50. Sells RSPO-certified palm oil through Segregated or Identity Preserved supply chains?

51. Processes/trades RSPO-certified palm oil through Segregated or Identity Preserved supply chains?

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

The company reports four subsidiaries are ISPO certified but no certificate was available.

53. Malaysia Sustainable Palm Oil (MSPO) certified?

This indicator is disabled as the company does not operate in Malaysia.

54. Certified under voluntary sustainability certification scheme (e.g. ISCC, SAS, RSB)?

55. Commitment to zero conversion of natural ecosystems?

56. Commitment to zero conversion of natural ecosystems applies to all suppliers?

57. Commitment to zero deforestation?

The company commits to no development in High Conservation Value (HCV), High Carbon Stock (HCS) and peatland areas.

58. Commitment to zero deforestation applies to all suppliers?

59. Criteria and cut-off date for defining deforestation and/or ecosystem conversion?

The company reports no deforestation of high carbon stock forest areas and no further land clearing of potential HCS areas until the results of the proposed HCS study but no specific cut-off date is mentioned.

60. Criteria and cut-off date for defining deforestation and/or ecosystem conversion in supplier operations?

61. Evidence of monitoring deforestation and/or ecosystem conversion?

62. Evidence of monitoring deforestation and/or ecosystem conversion in supplier operations?

63. Amount of deforestation and/or ecosystem conversion recorded in own operations since cut-off date?

64. Amount of deforestation and/or ecosystem conversion recorded in supplier operations since cut-off date?

65. Commitment to restoration of deforestation/conversion in own operations since cut-off date?

66. Commitment to restoration of deforestation/conversion in supplier operations since cut-off date?

67. Implementing a landscape or jurisdictional level approach?

The company is working with a variety of stakeholders on forest fire prevention and management in East Kalimantan. these stakeholders include: Indonesian National Defence Forces (TNI), Indonesian National Police (Polri), Indonesian National Police (Satpol PP), Muara Kaman subdistrict, DLHK (Environmental Agency), Dishub (Transportation Agency), and village authorities.

68. Biodiversity policy?

69. Biodiversity policy applies to all suppliers?

70. Identified species of conservation concern, referencing international or national system of species classification?

The company reports documenting and classifying all wildlife within the estates classified as vulnerable or higher on the protected species list, as specified in Ministry of Environment and Forestry Regulation No. P.106 of 2018.

71. Examples of species and/or habitat conservation management?

The company reports habitat conservation management along with examples of high-conservation value flora and fauna in the operational region.

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

73. Commitment to no hunting or only sustainable hunting of species applies to all suppliers?

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

The company commits to conduct HCV assessments.

75. Commitment to conduct High Conservation Value (HCV) assessments applies to all suppliers?

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

77. High Conservation Value (HCV) assessments for all estates planted/planned planting since January 2015?

78. High Conservation Value (HCV) or combined HCV/HCS management and monitoring plans for all estates planted/planned planting since January 2015?

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

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

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

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

The company reports leveraging the framework of the High Carbon Stock Approach (HCSA) for the conservation but does not clearly commit to apply the HCS Approach, as defined by the HCS Approach Toolkit.

83. Commitment to the High Carbon Stock (HCS) Approach applies to all suppliers?

84. High Carbon Stock (HCS) assessments available?

85. Peer review of all High Carbon Stock (HCS) assessments undertaken since April 2015 by the HCSA Quality Assurance Process?

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

87. Commitment to conduct social and environmental impact assessments (SEIAs) applies to all suppliers?

88. Social and environmental impact assessments (SEIAs) available, and associated management and monitoring plans?

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

The company commits to no planting on peat of any depth.

90. Commitment to no planting on peat of any depth applies to all suppliers?

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

92. Implementation of commitment to no planting on peat of any depth?

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

The company implements best management practices only for soil but does not report for peat.

94. Commitment to best management practices for soils and peat applies to all suppliers?

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

The company reports some best management practice implementation for soil only but no information is available for peat.

96. Commitment to zero burning?

The company commits to no burning.

97. Commitment to zero burning applies to all suppliers?

98. Evidence of fire monitoring and management?

The company has a satellite mapping program which maps hotspots. It also has firefighting specialists that conduct regular training sessions for subsidiary employees, covering fire monitoring, management, and emergency procedures.

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

The company reported zero fires in its operational area during 2023.

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

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

102. GHG emissions intensity?

The company reports in 2023, its GHG intensity was 0.102 tonCO2/ton FFB.

103. GHG emissions from land use change in company's own operations (scope 1)?

104. GHG emissions from land use change in supplier operations (scope 3)?

105. Progress towards commitment to reduce GHG emissions intensity?

The company reports GHG emissions intensity as 0.070 tonCO2/ton FFB in 2022 and 0.102 tonCO2/ton FFB in 2023, the intensity figure has not improved from the previous year.

106. Methodology used to calculate GHG emissions?

The company uses the ISCC EU System 205 V.3.0 standard methodology to calculate GHG emissions.

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

108. Time-bound commitment to improve water use intensity?

109. Water use intensity?

1.49 - The company reports water use intensity as 1.49 m3 per ton FFB.

110. Progress towards commitment on water use intensity?

The company reports water use intensity as 1.32 m3 per ton FFB for 2022 and 1.49 m3 per ton FFB for 2023. Intensity has not improved.

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

The company reports that its BOD levels are below the authorised BOD threshold, but it does not make a clear commitment.

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

The company reports that its BOD is 648 mg/L, which is below the authorised BOD threshold of 5,000 mg/L. It does not report multiple years of data.

113. Treatment of palm oil mill effluent (POME)?

The company reports that no POME is discharged from the operational sites into water bodies.

114. Treatment of palm oil refinery effluent (PORE)?

This indicator is disabled as the company does not own refineries.

115. Commitment to protect natural waterways through buffer zones?

The company commits to protect natural waterways through buffer zones.

116. Implementation of commitment to protect natural waterways through buffer zones?

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

The company reports a commitment to reducing the use of chemicals including pesticides in relation to pest control only. No commitment is made to reduce chemical fertiliser use.

118. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers, applies to all suppliers?

119. Commitment to no use of paraquat?

120. Commitment to no use of paraquat applies to all suppliers?

121. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides?

122. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides applies to all suppliers?

123. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

124. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention applies to all suppliers?

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

126. Implementation of commitment to minimise inorganic fertiliser use?

The company reports using empty fruit bunches, mesocarp fibre, and palm kernel shells as organic fertilisers on its plantation.

127. Integrated Pest Management (IPM) approach?

The company reports implementing an Integrated Pest Management approach (IPM) through use of owls to manage rodents, insects, and other crop-damaging pest populations. It has also planted species to repel pests and provide habitat for natural predators of leaf-eating pests of oil palms, including bagworms and caterpillars.

128. Waste management system in place to avoid negative impacts?

The company reports a waste management system in place emphasising recycling and responsible disposal methods wherever feasible.

129. Commitment to human rights?

The company commits to the Universal Declaration of Human Rights.

130. Commitment to human rights applies to all suppliers?

131. Progress on human rights commitment?

132. Commitment to respect Indigenous Peoples' and local communities' rights?

The company commits to respecting the rights of indigenous and local communities to provide their Free, Prior, and Informed Consent (FPIC). However, it does not refer to the UN Declaration on the Rights of Indigenous Peoples or the ILO Indigenous and Tribal Peoples Convention.

133. Commitment to respect Indigenous Peoples' and local communities' rights applies to all suppliers?

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

The company commits to respect legal and customary land tenure rights.

135. Commitment to respect legal and customary land rights applies to all suppliers?

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

The company commits to respect FPIC.

137. Commitment to free, prior and informed consent (FPIC) applies to all suppliers?

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

139. Examples of local stakeholder engagement to prevent conflicts?

The company reports it holds feedback and awareness meetings, stakeholder forums for complaints, and grievance resolution to prevent conflict.

140. Details of process for addressing land conflicts available?

The company reports having a process to resolve conflicts, but limited details are provided.

141. Supports the inclusion of women across palm oil operations, including addressing barriers faced?

142. Commitment to mitigate impacts on food security?

143. Progress on commitment to mitigate impacts on food security?

144. Commitment to provide essential community services and facilities?

The company commits to provide essential community services and facilities.

145. Progress on commitment to provide essential community services and facilities?

The company reports enhancing access to community health through various health programs, improving educational outcomes through support for local schools and scholarships, and developing sustainable infrastructure projects.

146. Commitment to provide business/work opportunities for local communities?

The company reports that it is dedicated to improving community livelihoods by fostering partnerships that bolster local economic growth. It does not make a clear commitment to provide business/work opportunities for local communities.

147. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles?

148. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles applies to all suppliers?

149. Progress on commitment to respect all workers' rights?

150. Commitment to eliminate gender related discrimination with regards to employment?

The company commits to prevent employment-related discrimination based on gender.

151. Commitment to eliminate gender related discrimination with regards to employment applies to all suppliers?

152. Progress on commitment to eliminate gender related discrimination with regards to employment?

153. Percentage or number of temporary employees?

5463 (66.05%) - The company reports 5,463 non-permanent employees in its workforce.

154. Reports gender balance of employees?

1411 (17.06%) - The company reports 1,411 female employees and 6,859 male employees.

155. Commitment to pay a living wage?

The company reports employees including operative and entry-level jobs, are paid at or above the local minimum wage ("UMR") in every business locations.

156. Commitment to pay a living wage applies to all suppliers?

157. Progress on commitment to pay a living wage?

The company reports having a standard entry-level wage by gender compared to the local minimum wage and data between two and five years old.

158. Reporting of salary by gender?

159. Commitment to address occupational health and safety?

The company commits to address health and safety at work for all workers.

160. Commitment to address occupational health and safety applies to all suppliers?

161. Provision of personal protective equipment and related training?

The company reports enforcing strict procedures for the use of all personal protective equipment (PPE). The company does not report related training.

162. Time lost due to work-based injuries?

233.1 - The company reports an accident severity rate of 233.10. This is calculated as the number of recordable work-related injuries/ number of hours worked* 1,000,000.

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

0 - The company reported zero fatalities in 2023.

164. Commitment to support smallholders?

The company has published a commitment to support scheme smallholders only.

165. Programme to support scheme smallholders?

The company reports having multiple programmes to support its plasma smallholders.

166. Percentage of scheme smallholders involved in programme?

167. Programme to support independent smallholders?

The company reports a programme for independent smallholders but the information is between two and five years old.

168. Percentage of independent smallholders/outgrowers involved in programme?

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

170. Number or percentage of suppliers assessed and/or engaged on compliance with company's policy and/or legal requirements?

171. Suspension or exclusion criteria for suppliers?

172. Time-bound action plans (including Key Performance Indicators) for suppliers to be in compliance with palm oil sourcing commitments?

173. Proportion of supply from suppliers that is verified as deforestation- and/or conversion-free (DCF)?

174. Time-bound plan to engage with all high risk mills within 3 years?

175. Programme to support high risk mills to become compliant with sourcing policies?

176. Regularly engages with a subset of high risk mills?

177. Procedures in place to assess all own and third party supplying palm oil mills for risk level?

178. Regularly assesses and categorises the risk level of all their own and third party supplying mills?

179. Regularly reports the risk level of all own and third party supplying mills identified in its supply chain?

180. Commitment to ethical conduct and prohibition of corruption?

The company commits to ethical conduct and the prohibition of corruption.

181. Commitment to ethical conduct and prohibition of corruption applies to all suppliers?

182. Progress on commitment to ethical conduct and prohibition of corruption?

183. Disclosure of the company's management approach to tax and payments to governments?

184. Whistleblowing procedure?

The company reports it has a whistleblowing policy and procedure in place with proper reporting channels but no details are provided.

185. Own grievance or complaints system open to all stakeholders?

The company reports having a grievance system but provides limited information.

186. Details of complaints and grievances disclosed?