Palm oil assessments

R.E.A. Holdings plc https://www.spott.org/palm-oil/r-e-a-holdings-plc/

Founded in 1906, UK based producer R.E.A. owns palm oil operations in Indonesia. The company... Read more.

Landbank (oil palm):

93,581 hectares
Palm cultivation revenue:

100%
Market cap:

176,466,032 USD
Thomson Reuters ticker:

REAH.L
Bloomberg ticker:

RE/ LN
ISIN:

GB0002349065
Sedol:

234906
RSPO member?

Yes

Website:

http://www.rea.co.uk/
Latest annual report (2016)|Sustainability report (2016)

Company assessment: R.E.A. Holdings plc – November 2017

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.

Transparency
score ranges:

lower
< 33%

moderate
33-66%

higher
> 66%

Expand all categories

Assessment date:

Total: 67.4% 80.5 / 119.5

Sustainability policy and leadership 4 / 6 66.7%
- 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.
- 1 / 1
  
  Source
  
  1. Sustainable palm oil policy or commitment for all its operations?
  
  The company has a number of sustainability policies, including its Environment and Biodiversity Conservation Policy
- 0 / 1
  
  No source
  
  2. Policy or commitment applies to direct and third-party suppliers?
- 1 / 1
  
  Source
  
  3. High-level position of responsibility for sustainability?
  
  Group Sustainability Manager and Head of Sustainability
- 1 / 1
  
  Source
  
  4. Sustainability report published within last two years?
- 0 / 1
  
  No source
  
  5. Member of multiple industry schemes or other external initiatives to improve sustainability in relation to palm oil?
- 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.
- 1 / 1
  
  Source
  
  7. Activities with government and/or NGOs to improve palm oil sustainability?
Landbank, maps and traceability 10 / 13 76.9%
- 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.
- 1 / 1
  
  Source
  
  8. Total land area managed/controlled for oil palm (ha)?
  
  93,581.2 - The company's 2016 annual report gives a figure of 108,215 ha
- 1 / 1
  
  Source
  
  9. Total oil palm planted area (ha)?
  
  45,458 - Figure is nucleus area. The company's 2016 annual report gives a figure of 42,846 ha
- 1 / 1
  
  Source
  
  10. Plasma/scheme smallholders planted area (ha)?
  
  3,567
- 1 / 1
  
  Source
  
  11. Unplanted (areas designated for future planting)(ha)?
  
  22,648
- 1 / 1
  
  Source
  
  12. Conservation set-aside area, including HCV area (ha)?
  
  18,341 - The company also states in their 2016 sustainability report "The area designated as conservation reserves within the group's titled land bank totals approximately 23,950 hectares"
- 0.5 / 1
  
  Source
  
  13. Area for infrastructure (ha)?
  
  The company reports a figure of 27,738 to include infrastructure and undeveloped land
- 1 / 1
  
  Source
  
  14. Number of company owned mills?
  
  3
- 0.5 / 1
  
  Source
  
  15. Maps or coordinates of company owned mills?
  
  Mill locations for two of the company's mills are available on Global Forest Watch (GFW). The company has submitted all mill locations to ZSL and GFW however only two of them have made available by GFW
- n/a
  
  -
  
  No source
  
  16. Number and names of supplier mills?
  
  This indicator is disabled as it is not applicable to this company.
- 1 / 1
  
  Source
  
  17. Maps of estates/management units?
  
  Concession boundaries have 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
- 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.
- 0.5 / 1
  
  Source
  
  20. Time-bound commitment to achieve 100% traceability to plantation level?
  
  2016 - The company had a target to achieve a "100% traceable supply base for all three mills" by 2016, but this has only been completed for 2 mills so far
- n/a
  
  -
  
  No source
  
  21. Percentage of supply traceable to mill level (above 80%)?
  
  This indicator is disabled as it is not applicable to this company.
- 1.5 / 2
  
  Source
  
  22. Percentage of fresh fruit bunches (FFB) from own mills traceable to plantation level (is above 75%)?
  
  66% - The company states in regards to achieving a 100% traceable supply base for all three mills that "smallholder mapping and traceability project is complete for the two REAK mills (POM & COM) but ongoing for our third mill at, SOM"
- n/a
  
  -
  
  No source
  
  23. Percentage of fresh fruit bunches (FFB) from supplier mills traceable to plantation level (is above 75%)?
  
  This indicator is disabled as it is not applicable to this company.
Deforestation and biodiversity 10.5 / 12 87.5%
- 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.
- 0.5 / 0.5
  
  Source
  
  24. Commitment to address deforestation?
- 1 / 1
  
  Source
  
  25. Commitment to zero deforestation?
- 0.5 / 1
  
  Source
  
  26. Deforestation commitment applies to scheme smallholders and independent suppliers?
  
  The commitment applies to R.E.A. Holdings' associated smallholders, but not to its independent FFB suppliers
- 1 / 1
  
  Source
  
  27. Criteria for defining deforestation?
  
  HCV, HCS, peat
- 1 / 1
  
  Source
  
  28. Evidence of monitoring deforestation?
  
  The company engaged remote sensing experts to produce high resolution maps of conservation reserves using drones in November 2015 indicating that 6.6% or 5,324 ha may be impacted by encroachment.
- 1 / 1
  
  Source
  
  29. Commitment to set aside areas for conservation?
- 1 / 1
  
  Source
  
  30. Evidence of habitat management and/or habitat restoration?
- 0.5 / 1
  
  Source
  
  31. A landscape-level approach?
  
  The company states "The group maintains substantial conservation reserves that safeguard landscape level biodiversity" however it is unclear how the company is implementing this landscape scale approach
- 0.5 / 0.5
  
  Source
  
  32. Commitment to biodiversity conservation?
- 1 / 1
  
  Source
  
  33. Commitment to not endanger species of conservation concern, referencing international or national system of species classification?
  
  The company has a commitment to protect rare, threatened and endangered species, and makes reference to the IUCN red list
- 0.5 / 1
  
  Source
  
  34. Commitment to no hunting or only sustainable hunting of species?
  
  The company prohibits capturing or killing any rare, threatened or endangered species, but does not mention all species
- 1 / 1
  
  Source
  
  35. Commitment not to operate within internationally and nationally designated protected areas?
- 1 / 1
  
  Source
  
  36. Evidence of species conservation activities?
HCV, HCS and impact assessments 7.5 / 11 68.2%
- 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.
- 1 / 1
  
  Source
  
  37. Commitment to High Conservation Value (HCV) approach?
- 0.5 / 1
  
  Source
  
  38. HCV commitment applies to scheme smallholders and independent suppliers?
  
  The commitment applies to R.E.A. Holdings' associated smallholders, but not to its independent FFB suppliers
- 1 / 1
  
  Source
  
  39. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?
- 1 / 1
  
  Source
  
  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:
  East Kalimantan: PT Cipta Davia Mandiri; PT Persada Bangun Jaya; PT. Kutai Mitra Sejahtera
- 0.5 / 1
  
  Source
  
  41. High Conservation Value (HCV) assessments for all estates planted since January 2015?
  
  The company has a HCV summary report for new plantings done since Jan 2015 but it is unclear if this covers all of the company's new plantings
- 0.5 / 1
  
  Source
  
  42. High Conservation Value (HCV) management and monitoring plans for all estates planted since January 2015?
  
  The company has a HCV summary report for new plantings done since Jan 2015 but it is unclear if this covers all of the company's new plantings
- 0.5 / 1
  
  Source
  
  43. Satisfactory review of all High Conservation Value (HCV) assessments undertaken since January 2015 by the HCV ALS Quality Panel?
  
  One HCV assessment, under subsidiary Bumitama Gunajaya Agro Lestari, is under review by HCV Quality Panel - first submission was declared unsatisfactory and the assessor has been asked to make corrections
- 0.5 / 1
  
  Source
  
  44. Commitment to the High Carbon Stock (HCS) approach?
  
  The company states that prior to developing any new land it undertakes carbon stock assessments and avoids development of high carbon stock areas, but does not clearly refer to HCS approach
- 0 / 1
  
  No source
  
  45. High Carbon Stock (HCS) assessments?
- 1 / 1
  
  Source
  
  46. Commitment to conduct social and environmental impact assessments (SEIAs)?
- 1 / 1
  
  Source
  
  47. Social and environmental impact assessment (SEIAs) undertaken, and associated management and monitoring plans?
  
  There is public availability of the following SEIA assessments:
  East Kalimantan: PT Cipta Davia Mandiri; PT Persada Bangun Jaya; PT. Kutai Mitra Sejahtera
Peat, fire and GHG emissions 11 / 17 64.7%
- 1 media report
  
  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.
- 0.5 / 1
  
  Source
  
  48. Commitment to no planting on peat of any depth?
  
  The company states it 'will not develop any contiguous area of >10 ha which has been identified as peat' regardless of depth
- 0.5 / 1
  
  Source
  
  49. Peat commitment applies to scheme smallholders and independent suppliers?
  
  The commitment applies to R.E.A. Holdings' associated smallholders, but not to its independent FFB suppliers
- 0.5 / 1
  
  Source
  
  50. Commitment to best management practices for soils and peat?
  
  The company commits to maintaining soil fertility and preventing erosion however they do not commit to implement best practice for peat
- 0.5 / 1
  
  Source
  
  51. Landbank or planted area on peat (ha)?
  
  1,067 - Data more than 2 years old
- 1 / 1
  
  Source
  
  52. Evidence of best management practices for soils and peat?
- 1 / 1
  
  Source
  
  53. Commitment to zero burning?
- 0.5 / 1
  
  Source
  
  54. Zero burning commitment applies to scheme smallholders and independent suppliers?
  
  The commitment applies to R.E.A. Holdings' associated smallholders, but not to its independent FFB suppliers
- 1 / 1
  
  Source
  
  55. Evidence of management and monitoring fires?
- 0.5 / 1
  
  Source
  
  56. Details/number of hotspots/fires in company estates?
  
  The company reports the area of oil palm or conservation reserves lost to fire as 0 ha in 2016 and 379 ha and 282 ha respectively in 2015
- 0 / 1
  
  No source
  
  57. Details/number of hotspots/fires within surrounding landscape/smallholders?
- 0.5 / 1
  
  Source
  
  58. Time-bound commitment to reduce greenhouse gas (GHG) emissions?
  
  2017 - The company has a target to reduce the intensity of GHG emissions per planted hectare by 2017 but do not state by how much
- 0 / 1
  
  No source
  
  59. GHG commitment applies to scheme smallholders and independent suppliers?
- 1 / 1
  
  Source
  
  60. GHG emissions?
- 1 / 1
  
  Source
  
  61. GHG emissions from land use change?
- 1 / 1
  
  Source
  
  62. Methodology used to calculate GHG emissions?
  
  PalmGHG tool
- 1 / 1
  
  Source
  
  63. Progress towards commitment to reduce GHG emissions?
  
  Net emissions per planted hectare have been reduced year by year from 2012 to 2016. Also state a reduction by 50% of GHG emissions from POME between 2011 and 2015
- 0.5 / 1
  
  Source
  
  64. Percentage of mills with methane capture (is above 75%)?
  
  2 (66.7%)
Water, chemical and pest management 9.5 / 12 79.2%
- 1 media report
  
  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).
- 0.5 / 1
  
  Source
  
  65. Time-bound commitment to improve water use?
  
  2,017 - The company has a target to reduce the volume of water 'as far as possible' used to process each tonne of FFB in all 3 mills but they do not say by how much
- 0.5 / 1
  
  Source
  
  66. Time-bound commitment to improve water quality?
  
  The company has a target to maintain the quality of ground and surface water but is it not time bound
- 0.5 / 1
  
  Source
  
  67. Progress towards commitment on water use?
  
  The company states "Water consumption per tonne of FFB processed decreased at COM from 2015 to 2016 but increased at POM and SOM"
- 0 / 1
  
  Source
  
  68. Progress towards commitment on water quality?
  
  The company only reports water quality through providing BOD figures for its POME
- 1 / 1
  
  Source
  
  69. Protection of natural waterways through buffer zones?
- 1 / 1
  
  Source
  
  70. Evidence of treating palm oil mill effluent (POME)?
- 1 / 1
  
  Source
  
  71. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?
- 1 / 1
  
  Source
  
  72. No use of paraquat?
- 1 / 1
  
  Source
  
  73. No use of World Health Organisation (WHO) Class 1A and 1B pesticides?
- 1 / 1
  
  Source
  
  74. No use of chemicals listed under the Stockholm Convention and Rotterdam Convention?
- 1 / 1
  
  Source
  
  75. Integrated Pest Management (IPM) approach?
- 1 / 1
  
  Source
  
  76. Chemical usage per ha or list of chemicals used?
  
  Report toxicity per hectare
Community, land and labour rights 13.5 / 18 75%
- 2 media reports
  
  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.
- 1 / 1
  
  Source
  
  77. Commitment to human rights, referencing the UN Declaration of Human Rights or UN Guiding Principles on Business and Human Rights?
  
  Reference International Bill of Human Rights that contains UN Declaration on Human Rights
- 1 / 1
  
  Source
  
  78. Commitment to respect legal and customary land tenure rights?
- 0.5 / 1
  
  Source
  
  79. Commitment to respect indigenous and local communities' rights, referencing the UN Declaration on the Rights of Indigenous Peoples or ILO 169?
  
  The company commits to respect the rights of local communities but do not refer to the UN Declaration on Rights of Indigenous Peoples or ILO Indigenous and Tribal Peoples Convention
- 1 / 1
  
  Source
  
  80. Commitment to free, prior and informed consent (FPIC)?
- 0 / 1
  
  No source
  
  81. FPIC commitment applies to independent suppliers?
- 0 / 1
  
  No source
  
  82. Free, prior and informed consent (FPIC) process?
- 0.5 / 1
  
  Source
  
  83. Process for addressing land conflicts?
  
  The company only states that "conflicts will be resolved through an open, transparent and consultative process"
- 0 / 1
  
  No source
  
  84. Commitment to ensure food security for local communities?
- 1 / 1
  
  Source
  
  85. Commitment to respect all workers' rights?
- 0.5 / 1
  
  Source
  
  86. Reference to Fundamental ILO Conventions or Free and Fair Labour Principles?
  
  The company's policy does not refer to equal remuneration
- 1 / 1
  
  Source
  
  87. Total number of employees?
  
  8,368
- 1 / 1
  
  Source
  
  88. Percentage or number of temporary employees?
  
  2,868 (34%)
- 1 / 1
  
  Source
  
  89. Percentage or number of women employees?
  
  2,311 (27.6%)
- 1 / 1
  
  Source
  
  90. Minimum wage that the company pays?
  
  The company states "all of our male and female permanent and casual workers receive a wage that is in line with the minimum monthly wage for the district of Indonesia where they work"
- 1 / 1
  
  Source
  
  91. Commitment to address occupational health and safety?
- 1 / 1
  
  Source
  
  92. Lost time accident rate?
  
  The company reports Lost Time Accident Rates
- 1 / 1
  
  Source
  
  93. Number of fatalities as a result of work-based accidents?
  
  Three employees and two relatives of employees involved in fatal accidents within boundaries of company's operations in 2015, with two of these considered as work-related. Three fatalities between January 2016 and January 2017
- 1 / 1
  
  Source
  
  94. Provision of personal protective equipment and pesticide training?
Certification standards 7.5 / 14.5 51.7%
- 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.
- 1 / 1
  
  Source
  
  95. Member of the Roundtable on Sustainable Palm Oil (RSPO)?
  
  2007
- 0.5 / 0.5
  
  Source
  
  96. Submitted most recent RSPO Annual Communication of Progress (ACOP)?
- 0.5 / 0.5
  
  Source
  
  97. Listed all countries and regions in which operates in most recent RSPO Annual Communication of Progress (ACOP)?
  
  The company states all the countries and regions in which the company operates: Indonesia (East Kalimantan)
- 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?
  
  2022
- 0.5 / 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?
  
  2019 - The company states "This only applies to the plasma scheme co-operatives which supply REA's existing mills." The company also gives a date of 2025 which applies to associated smallholders and outgrowers
- 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.
- 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?
  
  2011
- 1.5 / 2
  
  Source
  
  102. Percentage of mills RSPO-certified (is above 75%)?
  
  2 (66.7%)
- 1 / 2
  
  Source
  
  103. Percentage of area (ha) RSPO-certified (is above 75%)?
  
  34,489 (37%)
- 0 / 2
  
  Source
  
  104. Percentage of scheme/associated smallholders (ha) RSPO-certified (is above 75%)?
  
  0 (0%)
- 0 / 2
  
  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.
- 0 / 1
  
  Source
  
  107. Sells or processes/trades RSPO-certified palm oil through Segregated or Identity Preserved supply chains?
  
  Mass Balance, Book & Claim
- 1 / 1
  
  Source
  
  108. Indonesia Sustainable Palm Oil (ISPO) certified (100%)?
  
  The company's three mills are 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.
- 1 / 1
  
  Source
  
  110. Certified under voluntary sustainability certification scheme (e.g. ISCC, SAN, RSB, etc.)?
  
  ISCC certification
Smallholders and suppliers 5 / 9 55.6%
- 1 media report
  
  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.
- 1 / 1
  
  Source
  
  111. Programme to support scheme smallholders?
- 1 / 1
  
  Source
  
  112. Details of support programme for scheme smallholders?
  
  financial support, field surveys to help smallholders comply with company's policy on HCV/HCS,
- 0 / 1
  
  Source
  
  113. Number or percentage of scheme smallholders involved in programme?
- 1 / 1
  
  Source
  
  114. Programme to support independent smallholders?
- 1 / 1
  
  Source
  
  115. Details of support programme for independent smallholders?
  
  Implementation of a 'train-the-trainer' programme to improve the practices of independent smallholders, including best agricultural practices and cooperative management, providing oil palm seedlings, fertilisers, herbicides and technical assistance
- 0.5 / 1
  
  Source
  
  116. Number or percentage of independent smallholders involved in programme?
  
  At end of 2015, 15 cooperatives of semi-independent smallholders (PPMD) established
- 0 / 1
  
  Source
  
  117. Process used to prioritise, assess and/or engage suppliers on compliance with company's policy and/or legal requirements?
- 0.5 / 1
  
  Source
  
  118. Suspension or exclusion criteria for suppliers?
  
  The company only accepts FFB from farmers who participate in a traceability mapping exercise.
- 0 / 1
  
  No source
  
  119. Number or percentage of suppliers assessed and/or engaged?
Governance and grievances 2 / 7 28.6%
- 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.
- 1 / 1
  
  Source
  
  120. Commitment to ethical conduct and prohibition of corruption?
- 0.5 / 1
  
  Source
  
  121. Whistleblowing procedure?
  
  The company only state they provide "anonymity for complainants and whistle blowers"
- 0.5 / 1
  
  Source
  
  122. Own grievance or complaints system?
  
  The company states a "formal grievance mechanism and an industrial relations officer are in place" but no further details are given
- 0 / 1
  
  No source
  
  123. Grievance system accessible to internal stakeholders (i.e. employees)?
- 0 / 1
  
  No source
  
  124. Grievance system accessible to external stakeholders?
- 0 / 2
  
  No source
  
  125. Details of grievances disclosed?

Media monitor: R.E.A. Holdings plc

SPOTT gathers reports and stories from global media sources, covering specific company activities related to the assessment indicator categories. ZSL does not assess the validity of these reports.

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September 2015

The palm oil plantations powering communities and tackling climate change

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October 2014

RSPO Complaint filed Oct 2013 - PT REA Kaltim Plantations (a subsidiary of REA Holdings) (Status H: Closed)

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Research protocols: R.E.A. Holdings plc

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 125 indicators across 10 categories, aligned with corporate reporting initiatives.

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Map of concessions: R.E.A. Holdings plc

Explore our interactive mapping tool for a satellite view of deforestation and fires in and around concession sites of companies featured on the SPOTT scorecard. These data can support SPOTT users in conducting further research to verify whether or not company commitments are being implemented on the ground.

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.

R.E.A. has submitted all mill locations to ZSL and Global Forest Watch (GFW); however, only two of them have made available on GFW. Concession boundaries have 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. Some of the concessions are available on the SPOTT map.