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Palm oil assessments

Company assessment: London Sumatra PP Tbk PT – October 2016

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: 53.7% 29 / 54
  • RSPO reporting requirements RSPO reporting requirements 8 / 14 57.1%
    • The Roundtable on Sustainable Palm Oil (RSPO) is an international association and certification scheme to promote the development of sustainable palm oil, whose Annual Communications of Progress (ACOP) reports require members to submit information relating to certification targets for their estates, scheme smallholders and independent FFB suppliers.

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      Source

      1.1. Is the company an RSPO member?

      Yes, PT PP London Sumatra Terbuka has been an RSPO member since 2004

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      1.2. Has the company submitted its most recent Annual Communication of Progress (ACOP) report to the RSPO?

      Yes

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      1.3.1. In the company's most recent and up-to-date RSPO ACOP report, does the company refer to itself as an oil palm grower?

      Yes, London Sumatra refers to itself as an oil palm grower

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      1.3.2. In the company's most recent and up-to-date RSPO ACOP report, does the company state all the countries and regions in which it operates?

      Yes. London Sumatra correctly states the country and regions in which the company operates: Indonesia (East Kalimantan, North Sumatra, South Sumatra)

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      1.4.1. Has the company RSPO-certified its first plantation estate: a) By November 2010, for companies joining prior to finalisation of the RSPO certification systems in November 2007? b) Within three years of joining the RSPO or of acquiring plantation operations as an RSPO member?

      Yes. London Sumatra joined the RSPO in 2004 and certified its first plantation estate in 2009. London Sumatra has a time-bound plan to complete certification by 2017

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      Source

      1.4.2. Has the company missed any of its public targets to be 100% RSPO-certified?

      No. However, an original target of 2016 was extended to 2019 and then changed back to 2016 again, and then to 2017

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      1.5. What percentage of the company's total plantation estates is RSPO-certified?

      57.9% of PP London Sumatra's plantation estates are RSPO-certified.

      Calculation: 54,411 ha (total area RSPO-certified) divided by 94,019 ha (planted area) x 100

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      1.6. Are the company's RSPO Principles and Criteria certification assessments publicly available?

      Yes

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      1.7.1. Have the first of the company's independent FFB suppliers achieved RSPO certification?

      This indicator has been disabled as London Sumatra does not have independent FFB suppliers. The company only has independent smallholders that are ex-plasma (schemed) smallholders

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      No source

      1.7.2. Has the company missed any public targets for 100% of its independent FFB suppliers to be RSPO-certified?

      This indicator has been disabled as London Sumatra does not have independent FFB suppliers. The company only has independent smallholders that are ex-plasma (schemed) smallholders

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      1.8.1. Has the company RSPO-certified its first scheme smallholders?

      No. London Sumatra certified its first plantation estate in 2009 and has yet to certify its first scheme smallholders. London Sumatra has a time-bound plan to complete certification of its smallholders by 2019

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      1.8.2. Has the company missed any public targets for 100% of its scheme smallholders to be RSPO-certified?

      No. However, an original target was extended from 2018 to 2019

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      1.9. What percentage of the company's scheme smallholder plantations is RSPO-certified?

      0% of London Sumatra's scheme smallholder plantations are RSPO-certified.

      Calculation: 0 ha (total area RSPO-certified) divided by 1,692 ha (scheme smallholder hectarage) x 100 (the company also has 30,550 ha of independent smallholders that are ex-plasma, none of which are certified)

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      1.10. Does the company have any open complaints filed through the RSPO complaints system?

      Yes, London Sumatra has the following open complaint filed through the RSPO complaints system:
      April 2009: London Sumatra is accused by AidEnvironment and Sawit Watch to have breached Principle 2 of the RSPO Principles and Criteria with regards to land rights

  • Landbank and maps Landbank and maps 5 / 8 62.5%
    • A company's landbank refers to the total area of land for oil palm cultivation, planted areas, and areas set aside for conservation, within its concessions. Companies should detail their criteria for acquiring land in the form of a statement that also applies to their smallholders and independent FFB suppliers, and disclose concession maps where compliant with local and national laws.

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      2.1.1. Does the company have a publicly available statement detailing its land acquisition criteria?

      Yes, IndoFood Agri follows Indonesian law for every land transaction, has a land conflict resolution mechanism and actively engages with local landowners and community leaders to alleviate conflicts relating to land rights

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      No source

      2.1.2. Does this statement apply to all of the company's scheme smallholders and independent FFB suppliers?

      No information could be found using the research protocols

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      2.2.1. Has the company publicly disclosed its total landbank area for oil palm cultivation?

      Yes, landbank for oil palm cultivation is 109,000 ha

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      2.2.2. Has the company publicly disclosed its total planted area?

      Yes, planted area is 94,173 ha

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      2.2.3. Has the company publicly disclosed its total scheme smallholder area?

      Yes, scheme smallholder hectarage is 1,692 ha
      (the company also has 30,550 ha of independent smallholders that are ex-plasma, none of which are certified)

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      2.2.4. Has the company publicly disclosed its total area of land managed for conservation that is set aside (i.e. including areas of High Conservation Value)?

      Yes, landbank for conservation is 11,775.58 ha

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      No source

      2.3.1. Are all of the company's concession maps publicly available for all countries in which it operates?

      Concession boundaries have been made available previously, which are viewable on the SPOTT map. However, ZSL is currently unable to ascertain if the maps disclosed constitute 100% of the company's' palm oil estates

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      No source

      2.3.2. Are all of the company's scheme smallholders' concession maps publicly available for all countries in which it operates?

      No information could be found using the research protocols

  • Environmental management Environmental management 7 / 14 50%
    • Managing the environment within a concession is a complicated process, but companies should attempt to address deforestation using a High Carbon Stock (HCS) approach, protect High Conservation Value (HCV) areas, obtain Free, Prior and Informed Consent (FPIC) from communities prior to new planting; reduce pesticide use and manage water effectively.

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      3.1.1. Does the company have a publicly available statement to address deforestation resulting from its operations?

      Yes, IndoAgri is committed to a no-planting policy on primary forests and High Conservation Value (HCV) areas for new plantings

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      3.1.2. Does this statement apply to all its scheme smallholders and independent FFB suppliers?

      No, the company does not state that the above commitment applies to its scheme smallholders (the company does not have independent FFB suppliers). However, a page on the company's sustainable palm oil policy commits to "no new planting on HCV areas", and this commitment also applies to plasma smallholders

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      3.2.1. Does the company have a publicly available commitment to undertake Free, Prior and Informed Consent (FPIC) prior to any new planting taking place?

      Yes

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      No source

      3.2.2. Does the company make its Free, Prior and Informed Consent (FPIC) process publicly available?

      No information could be found using the research protocols

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      3.3.1. Does the company have a publicly available commitment to conduct SEIA (Social and Environmental Impact Assessments) assessments prior to any new planting taking place?

      Yes

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      No source

      3.3.2. Are all SEIA assessments conducted after November 2005 publicly available?

      No SEIA assessments could be found using the research protocols

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      3.4.1. Does the company have a publicly available commitment to conduct High Conservation Value (HCV) assessments prior to any new planting taking place?

      Yes, the company states "For new plantations, the HCV identification will be done before the land is cleared for farming"

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      3.4.2. Has the company publicly committed to only using licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?

      Yes, Indofood Agri states "for future development, we will appoint assessors acredited by HCV Resource Network's Assessor Licensing Scheme (ALS)"

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      No source

      3.4.3. Are all of the company's High Conservation Value (HCV) assessments conducted after November 2005 publicly available?

      No HCV assessments could be found using the research protocols

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      No source

      3.4.4. Does the company make its High Conservation Value (HCV) management and monitoring plans for all of its estates publicly available?

      No HCV management plans could be found using the research protocols

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      3.5. Has the company publicly committed to applying a High Carbon Stock (HCS) methodology to all of its landholdings and not developing on HCS areas?

      No. IndoAgri only states: "New plantation development must minimise net GHG emissions by avoiding the conversion of forest land with ‘high carbon stock' (HCS) into oil palm plantations" "

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      3.6. Does the company have a publicly available Water Management Plan or equivalent for its operations?

      Yes

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      3.7. Does the company have a publicly available Integrated Pest Management Plan for its operations?

      Yes

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      3.8. Does the company have a publicly available commitment to not use WHO Class 1A and 1B pesticides and paraquat, or time-bound plan for phasing out their use?

      No. IndoAgri aims to phase out the use of paraquat by 2018. No such statement could be found relating to WHO Class 1A and 1B pesticides

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      No source

      3.9. Has the company been mentioned in any relevant media stories and/or reports that make reference to wildlife conflict or deforestation within the company's plantation estates and/or its scheme smallholders' or independent FFB suppliers' plantations?

      Please find the relevant media stories listed in the media monitor below

  • Fragile, marginal and peat soils Fragile, marginal and peat soils 2 / 2 100%
    • Peatlands are wetlands with a thick water-logged organic soil layer made up of dead and decaying plant material. Drainage, conversion to farmland and fertilisation turns peatlands into wastelands due to soil subsidence and fires. Companies, their smallholders and independent FFB suppliers should therefore commit to no new development on peat.

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      4.1.1. Does the company have a publicly available statement stating that it is committed to a strict 'no new development on peat' policy?

      Yes. IndoAgri has a policy of no new planting on peatland regardless of depth since 2013

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      4.1.2. Does this policy apply to all its scheme smallholders and independent FFB suppliers?

      Yes, this policy applies to scheme smallholders. The company does not have independent FFB suppliers

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      No source

      4.2. What percentage of the company's landbank for oil palm cultivation is located on peat?

      No information could be found using the research protocols

  • Zero burning Zero burning 2 / 2 100%
    • A "zero burning" policy commits the company, smallholders and independents, to follow the zero burning technique, in which logged over secondary forest or old plantation land is not burned, but instead felled, shredded, stacked and left in situ to decompose naturally, thereby reducing emissions and improving soil fertility.

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      5.1.1. Does the company have a publicly available statement stating that it is committed to a strict policy of zero burning?

      Yes. Indoagri has a zero burn policy on land clearing

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      5.1.2. Does this policy apply to all its scheme smallholders and independent FFB suppliers?

      Yes

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      No source

      5.2. Has the company been mentioned in any relevant media stories and/or reports that make reference to fires found within the company's plantation estates and/or its scheme smallholders' or independent FFB suppliers' plantations?

      Please find the relevant media stories listed in the media monitor below

  • Greenhouse gas emissions Greenhouse gas emissions 2 / 6 33.3%
    • Companies should have a publicly available time-bound plan to reduce their emissions of greenhouse gases such as carbon dioxide and methane, which contribute to global warming by trapping heat in the Earth's atmosphere. Companies should report on their progress and ensure the plan applies to smallholders and independents.

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      6.1.1. Does the company have a publicly available time-bound plan to reduce greenhouse gas (GHG) emissions?

      No. However, the company commits to reducing GHG emissions and aims to develop GHG targets during 2016

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      No source

      6.1.2. Does this time-bound plan apply to all its scheme smallholders and independent FFB suppliers?

      No information could be found using the research protocols

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      No source

      6.2. Does the company publicly report on progress made towards achieving its time-bound plan?

      No information could be found using the research protocols

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      6.3. Does the company publicly report its GHG emissions from land use change associated with new planting?

      Yes

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      6.4. Has the company made a public commitment to report and to reduce effects from Palm Oil Mill Effluent (POME)?

      Yes

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      6.5. Has the company made a public commitment to eliminate methane emissions from all of its palm oil mills?

      No. However, 2 mills are already eqiupped with methane capture technology through Aerated Bunker Composting, resulting in around a 30% reduction in methane emissions

  • Traceability Traceability 3 / 8 37.5%
    • Traceability refers to the company's potential for tracing goods along the distribution chain. We assessed this indicator in terms of the public availability of mill location and mill certification data, independent FFB supplier fresh fruit bunch certification data, and commitments to adopting more traceable physical supply chain models.

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      No source

      7.1. Are all of the company's mill locations publicly available for all countries in which it operates?

      Mill locations have been made available previously, which are viewable on the SPOTT map. However, ZSL is currently unable to ascertain if the maps disclosed constitute 100% of the company's palm oil mills

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      7.2. What percentage of the company's total palm oil mills is RSPO-certified?

      54.5% of PP London Sumatra's palm oil mills is RSPO-certified.

      Calculation: 6 (stated number of palm oil mills RSPO-certified) divided by 11 palm oil mills (stated number of palm oil mills operated) x 100

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      No source

      7.3. What percentage of the company's total fresh fruit bunches (FFBs) purchased from independent suppliers (not including outgrowers and scheme smallholders) is RSPO-certified?

      This indicator has been disabled as London Sumatra does not have independent FFB suppliers. The company only has independent smallholders that are ex-plasma (schemed) smallholders

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      No source

      7.4. Does the company have a public commitment to move towards Segregated and/or Identity Preserved certified sustainable palm oil (CSPO)?

      No information could be found using the research protocols

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      7.5. Does the company prioritize certified sustainable palm oil (CSPO) from Segregated or Identity Preserved supply chain models over Mass Balance or GreenPalm?

      Book & Claim

Media monitor: London Sumatra PP Tbk PT

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: London Sumatra PP Tbk PT

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.
Zoological Society of London (ZSL)