Perkebunan Nusantara III PT (Persero) (previously assessed subsidiary Kharisma Pemasaran Bersama Nusantara PT (PT. KPBN))

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

The company has multiple policies relating to sustainability which covers all palm oil operations.

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

The company has multiple policies relating to sustainability which covers all palm oil operations and apply to all suppliers.

3. High-level position of responsibility for sustainability?

The company reports an ESG team, but no specific position of responsibility for sustainability.

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

The company reports that its bard of directors acts as the ESG Trustee.

5. Reports gender balance of senior management team?

6. Reports gender balance of board members?

0 (0%) - The company directly reports that all eight board members are male.

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

[Externally verified] The company's subsidiary, PT Perkebunan Nusantara IV is a member of the UNGC.

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

9. Sustainability report published within last two years?

The company published its most recent sustainability report for 2022.

10. Reports through standardised reporting systems?

The company references use of GRI Standards but does report the necessary statement set out by GRI. The company has not responded to CDP questionnaires.

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?

The company provides a summary of a climate risk assessment. It does not include metrics and targets.

13. Lists countries and operations?

The company has operations in plantations, mills, crushers, refineries and is a trader. Indonesia is the only country referenced in relation to its operations but it does not directly report a list of countries and operations.

14. Lists countries sourcing from?

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

The company only reports the total area managed for all commodities which is 1,181,751.03 ha, figure is not specific to oil palm. This information is undated.

16. Total oil palm planted area (ha)?

562440 - The company has 562,440.99 ha of oil palm plantations.

17. Scheme smallholders planted area (ha)?

202.21 - The company reports 202.210 ha of plasma oil palm area. Information is undated.

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

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

30758 - The company reports that it has 30,758 ha of conservation set-aside.

20. Maps of estates/management units?

The company has 23 estate maps on GFW, however it is unclear if this covers all operations.

21. Maps of all scheme smallholders?

22. Maps of all third-party supplying plantations?

23. Number of company-owned mills?

73 - The company has 73 mills.

24. Names and locations of company-owned mills?

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?

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?

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

The company has already achieved 100% traceability to mill level.

33. Percentage of supply traceable to mill level?

The company has achieved 100% traceability 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?

93% of the company's FFB supply to mills is traceable to plantation.

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

37. Publishes traceability data at refinery level?

38. Publishes traceability data at crusher level?

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

[Externally verified] 2006 - The company has been a RSPO member since 2006.

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?

[Externally verified] 2010 - The company became certified in 2010.

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

The company has submitted its ACOP for 2023.

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

34.5% - The company has 34.50% of area (ha) RSPO-certified.

43. Percentage of mills RSPO-certified?

[Externally verified] 82.19% - The company has 60 of 73 mills RSPO-certified.

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

2026 - The company commits to achieve 100% RSPO certification of estates and mills by 2026. This is 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?

0% - The company reports 0% of scheme smallholders land (ha) is RSPO-certified.

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

2028 - The company commits to achieve 100% RSPO certification of scheme/associated smallholders and outgrowers by 2028. This is within 5 years.

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

0% - The company has 0% 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?

The company sell 0% of 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?

This indicator is disabled as the company only reports a Grower ACOP.

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

The company reports that it has ISPO certification but does not specify the percentage certified. No certificates are available.

53. Malaysia Sustainable Palm Oil (MSPO) certified?

This indicator is disabled as the company is only a trader.

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

[Externally verified] The company has multiple ISCC certificates.

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 zero deforestation, however the commitment was not clearly in place prior to 1st January 2020.

58. Commitment to zero deforestation applies to all suppliers?

The company commits all suppliers to zero deforestation, however the commitment was not clearly in place prior to 1st January 2020.

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

The company defines deforestation as removal of HCV and HCS areas and specifies any deforestation/conversion past March 2023 will not be accepted.

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

The company defines deforestation for suppliers as removal of HCV and HCS areas and specifies any deforestation/conversion past March 2023 will not be accepted.

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

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

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?

68. Biodiversity policy?

The company only reports a general commitment to protect biodiversity with no details on the scope.

69. Biodiversity policy applies to all suppliers?

The company only reports a general commitment for suppliers to protect biodiversity with no details on the scope.

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

Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also self-reports that it keeps species listed according to the IUCN red list and the Convention on International Trade of Endangered Species (CITES) list including Agarwood, Yellow Meranti, Elephant, Tiger, Orangutan. However, the full list is not publicly available.

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

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

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

The company only reports a commitment to no hunting of endangered animals only.

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 under the RSPO New Planting Procedures (NPP) as an RSPO member reporting as a grower. The company also makes this commitment in its own reporting.

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?

[Externally verified] The company has two combined HCV-HCS assessments publicly available. This covers all new planting included in the company's ACOPs.

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

[Externally verified] Both of the company's assessment have management and monitoring plans.

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

The company commits under the RSPO New Planting Procedures (NPP) as an RSPO member reporting as a grower.

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?

[Externally verified] Both of the company's HCV assessments undertaken since January 2015 have been deemed satisfactory by the HCV ALS Quality Panel.

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

The company commits under the RSPO New Planting Procedures (NPP) as an RSPO member reporting as a grower. The company also makes this commitment in its own reporting.

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

84. High Carbon Stock (HCS) assessments available?

[Externally verified] The company has two combined HCV-HCS assessments publicly available. This covers all new planting included in the company's ACOPs.

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

[Externally verified] All assessments are combined HCV-HCS assessments and have been peer reviewed.

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

The company commits under the RSPO New Planting Procedures (NPP) as an RSPO member reporting as a grower. The company also reports to SIA's only in its own reporting.

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 under the RSPO New Planting Procedures (NPP) as an RSPO member reporting as a grower. The company also makes this commitment in its own reporting.

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

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

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?

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

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

Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

96. Commitment to zero burning?

The company commits to no burning.

97. Commitment to zero burning applies to all suppliers?

The company commits all suppliers to no burning.

98. Evidence of fire monitoring and management?

Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports that it manages fire risk through monitoring towers, a hotspot dashboard, and a Rapid Fire Response Team,.

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

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 absolute emissions for scope 1 as 1,968,870.48 tonsCO2eq and 197,533 tonsCO2eq for scope 2. Figures are not intensity based and are not specific to palm oil operations.

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)?

The company report scope 3 emissions as 135.962,14 tonCO2e. Figures are not specific to palm oil or land use change.

105. Progress towards commitment to reduce GHG emissions intensity?

The company reports a reduction in scope 1 and 2 emissions from the previous year but the company does not have a target and figures are not specific to palm oil operations.

106. Methodology used to calculate GHG emissions?

The company uses the IPCC emissions accounting methodology to calculate GHG emissions.

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

The company reports that some mills have methane capture, it is unclear how many.

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

109. Water use intensity?

2.3 - The company reports total water usage as 2.3 m3/ton in 2022. This is not specific to palm oil operations.

110. Progress towards commitment on water use intensity?

The company's water use intensity decreased from 2.6 m3/ton in 2021 to 2.3 m3/ton. The figures are not specific to palm oil operations.

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

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

The company reports BOD and COD level for 2022 only and does not have a commitment.

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

Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also self-reports this information.

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

115. Commitment to protect natural waterways through buffer zones?

The company commits to maintaining vegetative buffers but does not specify it is to protect natural waterway.

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

Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

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

The company commits to minimise the use of chemical fertilisers and pesticides.

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?

Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports using empty FFB bunches as fertiliser.

127. Integrated Pest Management (IPM) approach?

Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports carrying out integrated pest control by establishing a program for planting white buttercup flowers (Turnera subulata) and coral vines (Antigonon leptopus).

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

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports separating out hazardous and toxic waste and well as reducing, reusing and recycling non-hazardous waste. It also reports that it uses a third-party to manage its waste in order to minimise the possibility of environmental damage due to hazardous waste.

129. Commitment to human rights?

The company commits to the Universal Declaration of Human Rights.

130. Commitment to human rights applies to all suppliers?

The company commits suppliers to the Universal Declaration of Human Rights.

131. Progress on human rights commitment?

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports that the irresponsibility of the implementation of the policy is the Head of Human Resources Division with the supervision of the Director of Human Resources. in 2022, 790 (0.86% of workforce) employees were trained on human rights topics.

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

The company commits to the ILO Indigenous and Tribal Peoples Convention (no. 169).

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

The company commits suppliers to the ILO Indigenous and Tribal Peoples Convention (no. 169).

134. Commitment 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 under the RSPO New Planting Procedures (NPP) as an RSPO member reporting as a grower. The company also makes this commitment in its own reporting.

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

The company commits all suppliers to respect FPIC.

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

The RSPO Principles and Criteria 2018 contain guidance and requirements on the process to conduct free, prior and informed consent (FPIC). Points have therefore been awarded on the basis of the company's commitments under the RSPO New Planting Procedures (NPP) as an RSPO member reporting as a grower.

139. Examples of local stakeholder engagement to prevent conflicts?

140. Details of process for addressing land conflicts available?

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

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company reports that it offers scholarships for courses with few female workers in order to encourage more women to work for plantation companies, established mentorship programmes, and has sexual harassment hotlines and accommodation for women to create a safe workspace.

142. Commitment to mitigate impacts on food security?

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

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

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?

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company reports providing heath services, worship facilities, and schools for local communities.

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

The company reports that it has a programme to support micro and small enterprises as well as local communities. It is not a clear commitment to provide business/work opportunities for local communities.

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

The company commits to all Core ILO Conventions.

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

The company commits all suppliers to International Labor Organization ("ILO") Conventions relating to Labor Standards but does not specify Fundamental or Core ILO Conventions.

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

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

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

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

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

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

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

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company reports setting up hotlines for sexual harassment, offering scholarships for courses with few female workers in order to encourage more women to work for plantation companies, and mentorships in business divisions with low female participation.

153. Percentage or number of temporary employees?

13570 (14.82%) - The company reports 13,570 female non-permanent employees out of a total of 91,583 non-permanent employees.

154. Reports gender balance of employees?

16779 (13.72%) - The company reports 16,779 female employees out of a total of 122,215 employees.

155. Commitment to pay a living wage?

The company only commits to pay works adequate wages.

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

The company commits all suppliers to pay a Living Wage to all workers.

157. Progress on commitment to pay a living wage?

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

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?

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports that it provides PPE and conducts training.

162. Time lost due to work-based injuries?

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

5 - The company reports that there were five fatalities in 2022 across the company's operations.

164. Commitment to support smallholders?

165. Programme to support scheme smallholders?

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

166. Percentage of scheme smallholders involved in programme?

167. Programme to support independent smallholders?

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

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?

The company reports that it regularly monitors and audits suppliers' sustainability performance with priority place on high-risk suppliers. It does not provide details on the process used to prioritise, assess and/or engage suppliers on compliance.

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?

The company only reports targets for high-risk supplier compliance which covers 20% of all suppliers. It states that by 2030, 100% of high-risk suppliers will be audited within 5 years.

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?

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

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

[Externally verified] Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also provides opportunities for the Board of Commissioners, Directors and employees to attend training on anti-corruption and has socialised its policies across stakeholders. It also reports that concerns regarding ethical conduct and corruption can be reported through it whistleblowing system.

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

184. Whistleblowing procedure?

The company has a whistleblowing procedure and includes information on steps taken and how the whistleblower is protected.

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

The company has a grievance system open to all stakeholders and reports a flowchart of steps taken.

186. Details of complaints and grievances disclosed?