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Kencana Agri Ltd

  • Parent company:
    Kencana Holdings Pte Ltd
  • Landbank (oil palm):
    185,709 hectares
  • Palm cultivation revenue:
    100%
  • Market cap:
    78,519,976 USD
  • Thomson Reuters ticker:
    KCAL.SI
  • Bloomberg ticker:
    KAGR SP
  • ISIN:
    SG1X16940808
  • RSPO member?
    No. However, subsidiary PT Sawindo Kencana has been an RSPO member since 2015.
  • Website:

Company assessment: Kencana Agri Ltd

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.

43.5% 52 / 119.5 Total:
  • Sustainability policy and leadership Sustainability policy and leadership 2.5 / 6 41.7%
    • 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 Environmental Sustainability Policy.

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

      3. High-level position of responsibility for sustainability?

      The company refers to an internal sustainability team however it is not stated who has high-level responsibility.

    • Yes
      1 / 1
      Source

      4. Sustainability report published within last two years?

      Last published in 2015.

    • No
      0 / 1
      No source

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

    • 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.

    • No
      0 / 1
      No source

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

  • Landbank, maps and traceability Landbank, maps and traceability 6.5 / 13 50%
    • 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)?

      185,709

    • Yes
      1 / 1
      Source

      9. Total oil palm planted area (ha)?

      68,220

    • Yes
      1 / 1
      Source

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

      14,045

    • Partial
      0.5 / 1
      Source

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

      The company reports an unplanted area figure of 117,489 ha however it is unclear how much of this is available for future planting and how much of this covers infrastructural areas and areas for conservation.

    • Partial
      0.5 / 1
      Source

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

      17,895.4 - Data is more than one year old (2015).

    • No
      0 / 1
      No source

      13. Area for infrastructure (ha)?

    • Yes
      1 / 1
      Source

      14. Number of company owned mills?

      5

    • Partial
      0.5 / 1
      Source

      15. Maps of company owned mills?

      A static map of mills without coordinates or mill names is available in the 2016 annual report.

    • n/a
      -
      No source

      16. Number and names of supplying mills?

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

    • Partial
      0.5 / 1
      Source

      17. Maps of estates/management units?

      Concession boundaries have been made available to the RSPO for subsidiary PT Sawindo Kencana, but not all are publicly available due to ongoing legal issues and these may not cover all the company's operations.

    • 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 (is 100%)?

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

    • Partial
      0.5 / 2
      Source

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

      22,567 (14%) - The company states "Our CSPO is traceable to its mill and estates" and "The Group produced 22,567 tons of Certified Sustainable Palm Oil ("CSPO") in 2015, which accounted for 14% of the entire Crude Palm Oil ("CPO") produced within that year".

    • n/a
      -
      No source

      23. Percentage of fresh fruit bunches (FFB) from supplying 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 5 / 12 41.7%
    • 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. Commitment applies to scheme smallholders and independent suppliers?

      The company's policy applies to its scheme smallholders but not its independent FFB suppliers.

    • Yes
      1 / 1
      Source

      27. Criteria for defining deforestation?

      HCV, HCS, peatland.

    • 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 of set-aside areas?

    • No
      0 / 1
      No source

      31. A landscape-level approach?

    • No
      0 / 0.5
      No 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?

    • No
      0 / 1
      No 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?

    • No
      0 / 1
      No source

      36. Evidence of species conservation?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 3 / 11 27.3%
    • 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. Commitment applies to scheme smallholders and independent suppliers?

      The company's policy applies to its scheme smallholders but not its independent FFB suppliers.

    • No
      0 / 1
      Source

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

      The company only states it uses accredited independent HCV assessors.

    • No
      0 / 1
      No source

      40. High Conservation Value (HCV) assessments undertaken between November 2005 and December 2014, and management and monitoring plans?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      43. Satisfactory review of all High Conservation Value (HCV) assessments undertaken since January 2016 by the HCV ALS Quality Panel?

    • Partial
      0.5 / 1
      Source

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

      The company commits to carrying out HCS assessments but does not specifically refer to the HCS Approach.

    • No
      0 / 1
      No source

      45. High Carbon Stock (HCS) assessments?

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      No source

      47. Social and environmental impact assessment (SEIAs) undertaken since November 2005, and management and monitoring plans?

  • Peat, fire and GHG emissions Peat, fire and GHG emissions 6.5 / 17 38.2%
    • 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. Commitment applies to scheme smallholders and independent suppliers?

      The company's policy applies to its scheme smallholders but not its independent FFB suppliers.

    • Partial
      0.5 / 1
      Source

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

      The company commits to best management practices for soils but not for peat.

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

      52. Evidence of best management practices for soils and/or 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. Commitment applies to scheme smallholders and independent suppliers?

      The company's policy applies to its scheme smallholders but not its independent FFB suppliers.

    • Yes
      1 / 1
      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?

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      No source

      59. Commitment applies to scheme smallholders and independent suppliers?

    • Partial
      0.5 / 1
      Source

      60. GHG emissions?

      The company does not report ghg emissions for its whole palm oil operations.

    • No
      0 / 1
      No source

      61. GHG emissions from land use change?

    • Yes
      1 / 1
      Source

      62. Methodology used to calculate GHG emissions?

      ISCC EU 205 (EU Directive 2009/28/EC).

    • No
      0 / 1
      No source

      63. Progress towards commitment to reduce GHG emissions?

    • No
      0 / 1
      Source

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

      The company have biomass plants to produce green energy however it is unclear how much of this is produced from palm oil biomass or from other sources.

  • Water, chemical and pest management Water, chemical and pest management 6 / 12 50%
    • 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. Commitment to manage water use and water quality?

    • No
      0 / 1
      No source

      66. Time-bound commitments to improve water use and water quality?

    • Partial
      0.5 / 1
      Source

      67. Progress towards commitment on water use?

      The company states that 1.12 m3 of water was used per ton of CPO produced in, showing an improvement of 13% in comparison to last year, however the company's commitment was not time-bound.

    • No
      0 / 1
      Source

      68. Progress towards commitment on water quality?

      The company measures BOD levels but do not report progress over time.

    • 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?

    • No
      0 / 1
      Source

      72. No use of paraquat?

      Kencana are phasing out the use of paraquat but do not have a time-bound plan.

    • 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?

    • Partial
      0.5 / 1
      Source

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

      The company provides chemical usage data but it is not reported per hectare.

  • Community, land and labour rights Community, land and labour rights 10.5 / 18 58.3%
    • 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?

    • Partial
      0.5 / 1
      Source

      79. Commitment to respect indigenous and local communities' rights?

      The company commits to respect indigenous rights but they do not refer to the UN Declaration on Rights of Indigenous Peoples or the ILO Indigenous and Tribal Peoples Convention.

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      Source

      81. Commitment applies to independent suppliers?

      The company's policy applies to its scheme smallholders but not its independent FFB suppliers.

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      Source

      83. Process for addressing land conflicts?

      The company "endeavours to resolve community complaints and conflicts through an open, transparent and consultative process" however no further details could be found.

    • No
      0 / 1
      No source

      84. Commitment to ensure food security for local communities?

    • Yes
      1 / 1
      Source

      85. Commitment to respect workers' rights, including all workers (i.e. direct, indirect, migrant, temporary, casual, etc.)?

    • 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?

      8,163

    • No
      0 / 1
      No source

      88. Percentage or number of temporary employees?

    • Yes
      1 / 1
      Source

      89. Percentage or number of women employees?

      1,761 (21.6%)

    • Yes
      1 / 1
      Source

      90. Minimum wage that the company pays?

    • Yes
      1 / 1
      Source

      91. Commitment to address occupational health and safety?

    • No
      0 / 1
      No source

      92. Lost time accident rate?

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

      94. Provision of personal protective equipment and pesticide training?

  • Certification standards Certification standards 3 / 14.5 20.7%
    • 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.

    • Partial
      0.5 / 1
      Source

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

      2015 - The company's plantation subsidiary, PT Sawindo Kencana, has been an RSPO member since 2015.

    • Yes
      0.5 / 0.5
      Source

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

    • No
      0 / 0.5
      Source

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

      The subsidiary PT Sawindo Kencana states all the countries and regions in which it operates: Indonesia (Bangka-Belitung). However, Kencana Agri Ltd as a whole operates in additional regions in Indonesia: East Kalimantan, South Kalimantan, Gorontalo and Central Sulawesi.

    • 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?

      2018 - Only for the subsidiary PT Sawindo Kencana.

    • No
      0 / 0.5
      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?

      2025 - Only for the subsidiary PT Sawindo Kencana. More than 5 years away.

    • 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?

      Sawindo Kencana joined the RSPO in 2015 and plans to achieve its first certification in 2018.

    • No
      0 / 2
      Source

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

      0 (0%)

    • No
      0 / 2
      Source

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

      0 (0%)

    • No
      0 / 2
      Source

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

      0 (0%)

    • 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.

    • No
      0 / 1
      Source

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

      Mass Balance.

    • Partial
      0.5 / 1
      Source

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

      The company's subsidiary PT. Sawindo Kencana is ISPO certified.

    • n/a
      -
      No source

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

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

    • Yes
      1 / 1
      Source

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

      The company's subsidiary PT. Sawindo Kencana is ISCC certified.

  • Smallholders and suppliers Smallholders and suppliers 5 / 9 55.6%
    • 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.

    • Yes
      1 / 1
      Source

      111. Programme to support scheme smallholders?

    • Yes
      1 / 1
      Source

      112. Details of support programme for scheme smallholders?

      Credit provision, purchase guarantees, training, supporting the development of plantations.

    • Yes
      1 / 1
      Source

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

      8,000

    • Yes
      1 / 1
      Source

      114. Programme to support independent smallholders?

    • Yes
      1 / 1
      Source

      115. Details of support programme for independent smallholders?

      The company provides training on and introduction to ISCC, RSPO and ISPO standards.

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • 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 4 / 7 57.1%
    • 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?

    • Partial
      0.5 / 1
      Source

      121. Whistleblowing procedure?

      The company has a whistleblowing policy but the procedure is not detailed.

    • Partial
      0.5 / 1
      Source

      122. Own grievance or complaints system?

      The company states they have a grievance system but not much detail is provided.

    • Yes
      1 / 1
      Source

      123. Accessible to internal stakeholders (i.e. employees)?

    • Yes
      1 / 1
      Source

      124. Accessible to external stakeholders?

    • No
      0 / 2
      No source

      125. Grievance details, if anonymity not requested?

Media monitor: Kencana Agri Ltd

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Map of concessions: Kencana Agri Ltd

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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.

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