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Palm oil assessments

Sarawak Oil Palms Bhd https://www.spott.org/palm-oil/sarawak-oil-palms-bhd/

Sarawak Oil Palms, established in 1968, is a Malaysia based company, whose major business activities

Score:  24.2%

Latest update: 23 Nov 2017
Next scheduled: Nov 2018
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  • Landbank (oil palm):
    120,297 hectares
  • Palm cultivation revenue:
    99.81%
  • Market cap:
    632,364,992 USD
  • Thomson Reuters ticker:
    SOP:MK
  • Bloomberg ticker:
    SOP MK
  • ISIN:
    MYL5126OO007
  • RSPO member?
    No
  • Website:
    http://www.sop.com.my/
    Latest annual report (2016)

Company assessment: Sarawak Oil Palms Bhd – 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.

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Assessment date:

Total: 24.2% 31 / 128
  • Sustainability policy and leadership 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.

    • Yes
      1 / 1
      Source

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

      The company has an Environmental Sustainability Policy and also a Social and Community Policy

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

      3. High-level position of responsibility for sustainability?

      Head of Sustainability

    • Yes
      1 / 1
      Source

      4. Sustainability report published within last two years?

      Sustainability report included in annual report

    • No
      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.

    • Yes
      1 / 1
      Source

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

  • Landbank, maps and traceability Landbank, maps and traceability 7 / 19 36.8%

    • Companies should publicly report figures on their total landbank and details of different areas under their management. They should also disclose maps of their management areas and provide details on traceability of their products, both to mill and plantation level.

    • Yes
      1 / 1
      Source

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

      120,297

    • Yes
      1 / 1
      Source

      9. Total oil palm planted area (ha)?

      87,744

    • Yes
      1 / 1
      Source

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

      2,326 - Native Customary Rights (NCR) land development

    • Partial
      0.5 / 1
      Source

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

      32,553 - Sarawak Oil Palms only states that 32,553 ha are reserves, unplanted and building sites, etc., but it is unclear how much of this has been set aside for future planting

    • No
      0 / 1
      Source

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

      Sarawak Oil Palms only states that 32,553 ha are reserves, unplanted and building sites, etc., but it is unclear if any of this has been set aside specifically for conservation

    • No
      0 / 1
      Source

      13. Area for infrastructure (ha)?

      Sarawak Oil Palms only states that 32,553 ha are reserves, unplanted and building sites, etc., but it is unclear how much of this is for infrastructure. Data more than one year old

    • Yes
      1 / 1
      Source

      14. Number of company owned mills?

      7

    • Partial
      0.5 / 1
      Source

      15. Maps or coordinates of company owned mills?

      The company published a static map of their palm oil mills in their Annual Report however their exact locations are unclear. Mill locations are also made available on One Oil Palm Maps Directory, but unclear which mills belong to the company

    • No
      0 / 1
      No source

      16. Number and names of supplier mills?

    • Partial
      0.5 / 1
      Source

      17. Maps of estates/management units?

      Some of the company's concessions are available on Global Forest Watch. The company has published a static map of its locations but it is not at a local scale and the locations cannot be accurately determined. The company's 2015 annual report states "To further improve transparency towards traceable palm products, the GPS coordinates for the Group's palm oil mills, estates, refinery and kernel crushing plants would be made available by 3rd quarter 2016 on its websites."

    • No
      0 / 1
      Source

      18. Maps of scheme/plasma smallholders?

    • Yes
      1 / 1
      Source

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

      2017 - The company states that it is committed to trace the sources of its palm oil products up to the originating palm oil mills and aims to "Build a traceable, transparent and sustainable palm oil supply chain for all palm products produced by SOP group by 2017."

    • Partial
      0.5 / 1
      Source

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

      The company states it is "committed to trace the sources of its palm products to the originating sources" but unclear if this includes traceability to plantation level

    • No
      0 / 2
      No source

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

    • No
      0 / 2
      No source

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

    • No
      0 / 2
      No source

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

  • Deforestation and biodiversity Deforestation and biodiversity 2.5 / 12 20.8%
    • 3 media reports

      Companies should commit to address deforestation and to set aside areas for conservation. They should report on any activities to manage or restore habitat in their conservation areas, or monitor deforestation in their supply chains. They should also provide evidence of species conservation and biodiversity protection.

    • Yes
      0.5 / 0.5
      Source

      24. Commitment to address deforestation?

      The company 'strives to' only develop oil palm plantations on 'degraded and logged over land'

    • No
      0 / 1
      No source

      25. Commitment to zero deforestation?

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

      27. Criteria for defining deforestation?

      Degraded and logged over land

    • No
      0 / 1
      No source

      28. Evidence of monitoring deforestation?

    • Yes
      1 / 1
      Source

      29. Commitment to set aside areas for conservation?

      The company states "The group is the process of identifying areas to be set aside for conservation reserves and the outcome is expected to be ready by end of 2017" and "The Group is committed to conserve jungle reserves and wildlife sanctuaries as an integral effort to preserve environment"

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      31. A landscape-level approach?

    • No
      0 / 0.5
      No source

      32. Commitment to biodiversity conservation?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      36. Evidence of species conservation activities?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 0 / 11 0%

    • 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.

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      Source

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

      The company only states to use RSPO approved consultants to conduct HCV assessments

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      45. High Carbon Stock (HCS) assessments?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

  • Peat, fire and GHG emissions Peat, fire and GHG emissions 3 / 17 17.6%
    • 2 media reports

      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.

    • Partial
      0.5 / 1
      Source

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

      The company commits to no peat development but it does not specify of any depth

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      Source

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

      65% - Approximately 65% of the Sarawak Oil Palms 2010 yield was planted on peat. Data more than five years old (2011)

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

      53. Commitment to zero burning?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      55. Evidence of management and monitoring fires?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

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

      The company commits to reducing GHG emissions and has a commitment to install biogas plants in the next 5 years to trap methane

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      60. GHG emissions?

    • No
      0 / 1
      No source

      61. GHG emissions from land use change?

    • No
      0 / 1
      No source

      62. Methodology used to calculate GHG emissions?

    • No
      0 / 1
      No source

      63. Progress towards commitment to reduce GHG emissions?

    • No
      0 / 1
      Source

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

      The company states "The Group has set timeline targets for all of its palm oil mills to have biogas plants installed within the next 5 years to help to trap methane gas and prevent it from being released into the atmosphere"

  • Water, chemical and pest management Water, chemical and pest management 4 / 12 33.3%
    • 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).

    • No
      0 / 1
      Source

      65. Time-bound commitment to improve water use?

      The company only states "One of the efforts of the Group is to optimise use of water by rainwater harvesting"

    • Partial
      0.5 / 1
      Source

      66. Time-bound commitment to improve water quality?

      The company has a commitment to reduce water pollution but it is not time-bound

    • No
      0 / 1
      No source

      67. Progress towards commitment on water use?

    • No
      0 / 1
      No source

      68. Progress towards commitment on water quality?

    • Yes
      1 / 1
      Source

      69. Protection of natural waterways through buffer zones?

    • Yes
      1 / 1
      Source

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

    • Partial
      0.5 / 1
      Source

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

      The company has a commitment to the 'gradual' reduction of chemicals but does not mention pesticides or fertilisers specifically

    • No
      0 / 1
      No source

      72. No use of paraquat?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

      75. Integrated Pest Management (IPM) approach?

    • No
      0 / 1
      No source

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

  • Community, land and labour rights Community, land and labour rights 3.5 / 18 19.4%
    • 1 media report

      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.

    • Partial
      0.5 / 1
      Source

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

      The company has a policy which commits to respecting human rights but they do not refer to the UN Declaration of Human Rights

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      81. FPIC commitment applies to independent suppliers?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      83. Process for addressing land conflicts?

    • No
      0 / 1
      No source

      84. Commitment to ensure food security for local communities?

    • No
      0 / 1
      No source

      85. Commitment to respect all workers' rights?

    • Partial
      0.5 / 1
      Source

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

      The company refers to no child labour, minimum age, no forced labour, freedom of association and collective bargaining, no discrimination, but not to equal remuneration

    • Partial
      0.5 / 1
      Source

      87. Total number of employees?

      10,000 - The company states "SOPB Group has more than 10,000 employees" but the figure is undated

    • No
      0 / 1
      No source

      88. Percentage or number of temporary employees?

    • No
      0 / 1
      No source

      89. Percentage or number of women employees?

    • Yes
      1 / 1
      Source

      90. Minimum wage that the company pays?

    • Yes
      1 / 1
      Source

      91. Commitment to address occupational health and safety?

    • No
      0 / 1
      No source

      92. Lost time accident rate?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      94. Provision of personal protective equipment and pesticide training?

  • Certification standards Certification standards 2 / 17 11.8%
    • 1 media report

      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.

    • No
      0 / 1
      No source

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

    • No
      0 / 0.5
      No source

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

    • No
      0 / 0.5
      No source

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

    • No
      0 / 0.5
      No source

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

    • No
      0 / 0.5
      No 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?

    • No
      0 / 0.5
      No source

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

    • No
      0 / 0.5
      No 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?

    • No
      0 / 2
      No source

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

    • No
      0 / 2
      No source

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

    • No
      0 / 2
      No source

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

    • No
      0 / 2
      No source

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

    • No
      0 / 2
      No source

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

    • No
      0 / 1
      No source

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

    • n/a
      -
      No source

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

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

    • Yes
      1 / 1
      Source

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

      The company states "To-date, four palm oil mills, one Refinery and 54% of the Group's planted areas have been certified under MSPO"

    • Yes
      1 / 1
      Source

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

      The company states "To-date, five palm oil mills, one Refinery and 70% of the Group planted areas have been certified under ISCC"

  • Smallholders and suppliers Smallholders and suppliers 1.5 / 9 16.7%

    • 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.

    • No
      0 / 1
      No source

      111. Programme to support scheme smallholders?

    • No
      0 / 1
      No source

      112. Details of support programme for scheme smallholders?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      114. Programme to support independent smallholders?

    • No
      0 / 1
      No source

      115. Details of support programme for independent smallholders?

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

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

      The company has organised MSPO seminars for suppliers and smallholders to encourage adoption of sustainable cultivation practices

    • No
      0 / 1
      No source

      118. Suspension or exclusion criteria for suppliers?

    • Yes
      1 / 1
      Source

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

      Over 380 participants attended a briefing on MSPO certification in September 2016

  • Governance and grievances Governance and grievances 3.5 / 7 50%

    • Companies should operate in an ethical manner at all levels, providing accessible channels and clear procedures for both employees and external stakeholders to raise any grievance or complaint with the company, as well as allowing for whistleblowing.

    • Yes
      1 / 1
      Source

      120. Commitment to ethical conduct and prohibition of corruption?

    • Yes
      1 / 1
      Source

      121. Whistleblowing procedure?

    • Partial
      0.5 / 1
      Source

      122. Own grievance or complaints system?

      The company's whistleblowing policy states that they have a separate policy for handling employee grievances, but no further information could be found

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      No source

      124. Grievance system accessible to external stakeholders?

    • No
      0 / 2
      No source

      125. Details of grievances disclosed?

Media monitor: Sarawak Oil Palms Bhd

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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June 2017

A Close-Up Of The Malaysian Sustainable Palm Oil Scheme

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March 2017

Norway's fund on the look-out in Malaysia

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June 2014

Why Bunge Matters: Agribusiness Giant Excessively Reliant On Peatland-Destroying Palm Oil

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April 2014

FFC TO BUNGE: RECONSIDER SOURCING FROM PALM OIL SUPPLIER SARAWAK OIL PALMS BERHAD

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No article found for the selected categories.

Research protocols: Sarawak Oil Palms Bhd

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.

Download research protocols

Map of concessions: Sarawak Oil Palms Bhd

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.

Sarawak Oil Palms makes its mill locations available on the One Oil Palm Maps Directory; however, ZSL is currently unable to ascertain which mills belong to the company. The company also published a static map of their palm oil mills; however, their exact locations are unclear. Some of the company's concessions are available on Global Forest Watch. The company has published a static map of its locations, but it is not at a local scale and the locations cannot be accurately determined. The concessions are not yet available on the SPOTT map.

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