Olam International

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

The company has a Sustainable Palm Oil Policy that outlines its commitments for its plantations, outgrowers and third-party suppliers, and also a separate Supplier Code. It also has a Plantations, Concessions and Farms Code that defines the processes and standards for upstream operations.

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

3. High-level position of responsibility for sustainability?

Head of Corporate Responsibility and Sustainability and Corporate Responsibility and Sustainability Committee.

4. Sustainability report published within last two years?

2016 sustainability report included in 2016 annual report. Stand alone sustainability report last published in 2015.

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

Member of UN Global Compact, Natural Capital Coalition, Global Agri-business Alliance, Tropical Forest Alliance 2020, HCV Resource Network and WBCSD.

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 and/or NGOs to improve palm oil sustainability?

Olam has engaged in dialogue with NGOs, including with Mighty Earth, and has agreed to collaborate with them on forest conservation and sustainable agriculture. Olam also has a joint venture with the government of Gabon on reducing reliance on imported food and supporting rural livelihoods for smallholders.

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

121810 - Olam has a total leased landbank of 300,000 ha for palm and rubber, of which 128,000 ha is currently being developed as palm oil plantations. Olam's 2016 ACOP states its total land area for palm oil cultivation as 121,810 ha.

9. Total oil palm planted area (ha)?

51763

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

Olam has a joint venture with the Republic of Gabon on the GRAINE smallholder programme covering 70,000 ha in which it has a 49% stake, through the company Sotrader. 30,000 ha will be planted out of 58,000 ha that has been assessed under RSPO New Planting Procedures, but it is unclear what has been planted to date.

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

14737

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

55310

13. Area for infrastructure (ha)?

Infrastructure figures for the different concessions can be found in the new planting procedure (NPP) reports over time. However, there is not a overall recent figure.

14. Number of company owned mills?

2

15. Maps or coordinates of company owned mills?

16. Number and names of supplier mills?

The company states it is sourcing directly from 14 major suppliers, which it names, and has identified 1,821 mill names and over 1,100 coordinates of mills to date.

17. Maps of estates/management units?

Olam provides information on its website where its palm oil estates are located through a map with polygons of its plantations. The shapefiles are available on request. Concession boundaries have also been made available to the RSPO and the company declares these represent 100% of their concession sites, but not all may not be publicly available due to ongoing legal issues. Maps will become available on GeoRSPO.

18. Maps of scheme/plasma smallholders?

Olam has a joint smallholder scheme with the Republic of Gabon in which it has a 49% stake (GRAINE program). A map of the GRAINE concession is available within the RSPO NPP Summary Report.

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

2020 - Olam is committed to tracing CPO and PKO to mill by 2018, and palm oil derivatives by 2020.

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

Olam are working towards establishing traceability to plantation, but a time bound commitment is unclear.

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

62%

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

The company states "For processing units located in Gabon (Awala POM, Awala KCP and OPG refinery), we are sourcing from our own plantations, all of which is fully traceable and progressing towards full RSPO certification". Olam has one other palm oil mill (POM) that is does not specify whether it has achieved traceable to plantation for.

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

24. Commitment to address deforestation?

25. Commitment to zero deforestation?

Olam has a commitment to no deforestation or conversion of HCV or HCS forest or peatlands. However, Olam has a right to convert a small percentage of its least valuable, logged or secondary forests to meet the governments needs for growth, and states itself that it does not have a "no deforestation" policy.

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

27. Criteria for defining deforestation?

Olam has a commitment to no deforestation or conversion activities in high conservation value (HCV) forests, including primary forests, and other HCV ecosystems such as wetlands, no deforestation or conversion of High Carbon Stock (HCS) forests, as defined through a recognised national or international process in key origins, and no deforestation or conversion of peatlands.

28. Evidence of monitoring deforestation?

29. Commitment to set aside areas for conservation?

30. Evidence of habitat management and/or habitat restoration?

The company states it has a team at each site dedicated to managing the buffer zones and set-aside areas.

31. A landscape-level approach?

The company is working with the Government of Gabon on a landscape scale approach to select the most suitable land with high economic potential and low environmental and social impacts.

32. Commitment to biodiversity conservation?

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

Olam only mentions that it protects rare species in its palm oil policy, but does not reference a system of species classification.

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

The company states its commitment to prohibiting hunting within its HCV and SEIA reports. Within its policy the company states "Implementation of partnerships with law enforcement and NGOs to reduce and eliminate illegal hunting, especially protected species, within and around our concessions".

35. Commitment not to operate within internationally and nationally designated protected areas?

The company states it is committed to holding the designation of Ramsar wetlands, and returned land to the government that contained extensive primary forest and important wetlands, and that they "select broad areas in landscapes that are far from national parks and where the natural environment has already been degraded" for oil palm development in Gabon.

36. Evidence of species conservation activities?

Olam has an ape management plan which includes monitoring, habitat management, hunting controls and education, among others. It has also implemented a partnership with WWF and the Government of Gabon to prevent illegal hunting and enforce wildlife laws in its Mouila plantations.

37. Commitment to High Conservation Value (HCV) approach?

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

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

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

There is public availability of the following HCV assessments:
Olam Palm Gabon - Mouila Lot 1; Olam Palm Gabon - Mouila Lot 2; Olam Palm Gabon - Lots 8, 9 & 11; Olam Palm Gabon - Mouila Oil Palm Nursery Site; Olam Palm Gabon - Mouila Lot 3; Olam Palm Gabon - Mouila Lot 3 Extension.

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

There is public availability of the following HCV assessments:
Mouila Lot 3 and Olam Palm Gabon - Mouila Lot 3 Extension.
In addition there is a HCV assessment for SOTRADER, the smallholder program in which Olam has a 49% stake.

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

There is public availability of the following HCV management and monitoring plans: Mouila Lot 3 and Olam Palm Gabon - Mouila Lot 3 Extension. In addition there is a HCV management and monitoring plan for SOTRADER, the smallholder program in which Olam has a 49% stake.

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

There is satisfactory review of Mouila Lot 3 and Mouila Lot 3 Extension, as well as for SOTRADER, the smallholder program in which Olam has a 49% stake.

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

Olam states that it commits to "no conversion of High Carbon Stock (HCS) forests, as defined through a recognised national or international process in key origins. Where we source from South East Asia origins, such as Indonesia, where most forest landscapes are fragmented and degraded, we follow the High Carbon Stock Approach.".

45. High Carbon Stock (HCS) assessments?

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

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

There is public availability of the following SEIA assessments:
Olam Palm Gabon - Mouila Lot 1; Olam Palm Gabon - Mouila Lot 2; Olam Palm Gabon - Lots 8, 9 & 11; Olam Palm Gabon - Mouila Oil Palm Nursery Site, Olam Palm Gabon - Mouila Lot 3, Olam Palm Gabon - Mouila Lot 3 extension, as well as for SOTRADER, the smallholder program in which Olam has a 49% stake.

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

The company states it does not ever develop peatland and does not operate in peatland.

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

The commitment applies to smallholders under the GRAINE programme and third party suppliers.

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

Olam's states in relation to implementing its palm oil policy in Gabon that land is subject to good practice, such as spatial design to avoid sensitive soils, careful management of soil fertility and use of ground cover crops to minimise soil erosion. The company has no peat.

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

The company states there is no peat in any of its Gabon concessions.

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

The company has trained smallholders in soil fertility (although unclear if inclusive of palm oil smallholders).

53. Commitment to zero burning?

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

55. Evidence of management and monitoring fires?

Smallholders trained on forest conservation, including the impact of converting forest through burning, along with other Climate-Smart Agricultural practices.

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

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

Olam only states that it partnered with WRI and identified fire incidents within a 50km sourcing radius of mills as part of its work to assess and rank supplier mills.

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

2020 (10%) - Olam had a target to 'achieve a 10% reduction in GHG intensity' by 2020. It reported having achieved this target in 2015 and states it will determine a revised target for 2020.

59. GHG commitment applies to scheme smallholders and independent suppliers?

60. GHG emissions?

61. GHG emissions from land use change?

Only report estimated land use change emissions for one concession (Mouila Lot 3).

62. Methodology used to calculate GHG emissions?

RSPO Palm GHG Calculator in combination with the HCS+ methodology for carbon assessment.

63. Progress towards commitment to reduce GHG emissions?

Olam had a target to 'achieve a 10% reduction in GHG intensity' by 2020. It reported having achieved this target in 2015, reducing emissions by 52% in Olam-managed plantations, concessions and farms.

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

Olam is planning to install methane capture facility at its Awala mill in 2017.

65. Time-bound commitment to improve water use?

The company has a 2020 target of "10% reduction in process water intensity in Olam Tier 1 factories from 2013 baseline" and a "5% reduction in surface and groundwater intensity in Olam-managed plantations, concessions and farms from 2013 baseline", which it achieved in 2015, and is developing a new 2020 target in 2017.

66. Time-bound commitment to improve water quality?

Olam only has a target to achieve 100% compliance with wastewater discharge limits for water quality by 2020.

67. Progress towards commitment on water use?

The company states in 2015 it met its target of a 5% reduction in surface and groundwater intensity for Olam plantations and farms, but not its target of a 10% reduction in water process intensity. In 2016 it reports a 31% improvement in irrigation and process water per tonne of product (intensity) for Olam's own operations for FY16 versus FY15, but that total value chain water intensity increased by 1.6%.

68. Progress towards commitment on water quality?

Olam only states it is on target in relation to its target of 100% compliance with wastewater discharge limits for water quality by 2020, but do not report figures.

69. Protection of natural waterways through buffer zones?

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

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

The company states "The use of pesticides shall be minimised and continually evaluated" and refers to minimal use of agrochemicals as part of integrated pest management and controlling the quantity of fertiliser use, but does not have a clear commitment to minimise chemicals across its operations.

72. No use of paraquat?

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

Olam's 2015 Plantations, concessions and farms code states "pesticides in WHO Classes 1a, 1b shall not be used" and the 2016 annual report states "It should be noted that we limit the use of WHO Class 1A and 1B chemicals to exceptional circumstances".

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

75. Integrated Pest Management (IPM) approach?

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

The company reports in its RSPO certification report a summary of herbicides, insecticides and fungicides used, but the data is from Aug-Dec 2015.

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

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

The company states "if communities wish to maintain customary use of land, these areas are demarcated and maintained for community use. Any development on lands belonging to local communities are subject to a written Social Contract signed off by the community, local government and Olam, specifying the nature of the compensations Olam provides in return for the use of the land", but not a clear reference to legal and customary land tenure.

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

The company states "respect the rights of local communities through Free, Prior and Informed Consent (FPIC)" and that "Community rights and access will be addressed through FPIC, and where applicable, measures for smallholders or outgrower relations should be consistent with Olam policies and the Olam Livelihood Charter". However, it does not reference the UN Declaration on Indigenous Rights.

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

81. FPIC commitment applies to independent suppliers?

The company only states that suppliers are required to respect the rights of indigenous peoples and their cultural heritage.

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

83. Process for addressing land conflicts?

The company provides a document on its Conflict Resolution procedure.

84. Commitment to ensure food security for local communities?

85. Commitment to respect all workers' rights?

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

The company states it is 'guided by' the ILO Declaration on Fundamental Principles and Rights at Work. It refers to the equivalent of all of the conventions.

87. Total number of employees?

69772 - This figure covers their entire global operations and includes full-time, seasonal, contract and temporary workers.

88. Percentage or number of temporary employees?

34727 (49.8%) - This figure covers their entire global operations and includes "seasonal, contract or temporary" workers.

89. Percentage or number of women employees?

26%

90. Minimum wage that the company pays?

91. Commitment to address occupational health and safety?

92. Lost time accident rate?

0.43 - Lost Time Injury Frequency Rate. This figure covers their entire global operations.

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

4 - This figure covers their entire global operations, however all fatalities were recorded in Africa.

94. Provision of personal protective equipment and pesticide training?

Olam states "We ensure the safe use and handling of all chemicals. We provide training and instructions for safe application and use of appropriate personal protective equipment".

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

2011 - The company has a joint smallholder scheme with the Republic of Gabon in which it has a 49% stake, under the company SOTRADER, who is also an RSPO member as of 2015.

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

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

The company states it operates in Gabon.

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

2021

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?

2018 - Olam has a joint smallholder scheme with the Republic of Gabon in which it has a 49% stake. Olam has a time bound plan to achieve 100% certification of smallholders and outgrower by 2018.

100. Time-bound plan for achieving 100% RSPO certification of all supply chains?

2020 - Target extended from 2016 to 2020.

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?

2016 - Olam joined the RSPO in 2011, but did not certify its first estate until 2016, due it not having built a mill until 2015.

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

1 (50%)

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

20030 (16.4%)

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

Olam has a joint smallholder scheme with the Republic of Gabon in which it has a 49% stake. It is yet to certify its smallholders.

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

This indicator is disabled as Olam does not source FFB from independent suppliers according to its 2016 ACOP.

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

301556 (3.1%) - Total volume of all palm oil and oil palm products handled/traded/processed in the year divided by total volume handled/processed/traded in year RSPO certified (tonnes).

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

Only sells Mass Balance, but processes/trades Mass Balance and Segregated.

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

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

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

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

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

111. Programme to support scheme smallholders?

Olam's palm oil policy states "Support outgrowers (primarily under the GRAINE programme) to build capacity, improve yields, apply good practices and avoid deforestation according to our Commitment to Forest Conservation".

112. Details of support programme for scheme smallholders?

"Olam manages the project, providing technical expertise and supporting cooperatives with training and improved planting stock, inputs and logistics to manage profitable plantations for palm oil and food crops such as cassava, banana, tomatoes and pepper".

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

The company states "By the end of 2016, almost 16,000 people in over 775 cooperatives had signed up to the scheme".

114. Programme to support independent smallholders?

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

115. Details of support programme for independent smallholders?

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

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

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

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

The company engages suppliers to ensure compliance with the company's policy, as well as carrying out risk assessments of mills.

118. Suspension or exclusion criteria for suppliers?

Olam states "If any supplier is found to be non-compliant, they will be investigated and corrective actions sought. However, if suppliers continue to be non-compliant, we will cease trading with them. This applies to both their own plantations and their third party supplies" and that in 2016 it reduced its suppliers from 48 to 14 based on Supplier Code risk factors.

119. Number or percentage of suppliers assessed and/or engaged?

The company states "Since the release of Olam's updated SPOP in February 2017, we have reached out to our current 14 suppliers to share the Policy and discuss the changes made as well as address any concerns/questions they may have with the verification process".

120. Commitment to ethical conduct and prohibition of corruption?

121. Whistleblowing procedure?

122. Own grievance or complaints system?

123. Grievance system accessible to internal stakeholders (i.e. employees)?

124. Grievance system accessible to external stakeholders?

125. Details of grievances disclosed?