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Olam International Ltd

Timber and pulp assessment
  • Latest update: July 2019
  • Next scheduled: July 2020

  • About this company:

    Established in 1989, Singapore based commodity producer and

  • Landbank
    2,200,000 hectares
  • Market cap:
    4,659,893,427 USD
  • Thomson Reuters ticker:
    OLAM.SI
  • Bloomberg ticker:
    OLAM:SP
  • ISIN:
    SG1Q75923504
  • Website:

Company assessment: Olam International Ltd – July 2019

Assessment date:

Total: 78.3% 88.5 / 113
  • Sustainability policy and leadership Sustainability policy and leadership
    9 / 11 81.8%
    • Yes
      1 / 1

      1. Sustainable forestry policy or commitment for all its operations?

      The company has a Living Landscapes Policy, as well as a Plantations, Concessions and Farms Code that applies to upstream operations and joint ventures, and an Environmental Sustainability Policy. It has a separate Supplier Code that applies to any entity that sell goods or services to the company

    • Yes
      1 / 1

      2. Sustainability policy or commitment applies to all sourcing?

      The company's Living Landscape Policy applies to all the company's agricultural commodity businesses, including upstream production and third-party sourcing.

    • Yes
      1 / 1

      3. High-level position of responsibility for sustainability?

      Head of Corporate Responsibility and Sustainability

    • Yes
      1 / 1

      4. One or more board members have responsibility for sustainability?

      Four members of the Board are part of the company's Corporate Responsibility and Sustainability Committee

    • Yes
      1 / 1

      5. Percentage or number of women board members?

      10%

    • Partial
      0.5 / 1

      6. Percentage or number of women in senior management team?

      0 (0%) - The company does not explicitly report number or percentage of women in senior management team

    • Yes
      1 / 1

      7. Sustainability report published within last two years?

      Sustainability sections included in 2018 annual report. Stand alone sustainability report last published in 2015

    • Yes
      1 / 1

      8. Member of multiple industry schemes or other external initiatives to improve forest management or transparency?

      FSC, PEFC, UNGC, Natural Capital Coalition, CDP, GRI, ATIBT, Congo Basin Forest Partnership (CBFP), European Coalition for Sustainable Tropical Timber (STTC), WBCSD, TFA 2020, HCVRN

    • Yes
      1 / 1

      9. Activities with government, NGOs or academic institutions to improve the sustainability of forest products?

      The company has a REDD+ partnership with the Republic of Congo government in the Congo Basin

    • No
      0 / 1

      10. Climate risks assessment available?

    • Partial
      0.5 / 1

      11. Natural capital assessment available?

      The company has published a natural capital assessment but it does not follow the Natural Capital Protocol

  • Landbank, mills and traceability Landbank, mills and traceability
    17 / 19 89.5%
    • Yes
      1 / 1

      12. Lists countries and operations?

      Republic of Congo (forest concessions and production facilities), Myanmar (production facility)

    • Yes
      1 / 1

      13. Total area of natural forest designated for wood/wood fibre production (ha)?

      2,200,000 - This is an approximate figure excluding area preserved under REED+ program

    • 14. Total area of forest plantation (ha)?

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from natural forests

    • 15. Area of plantation/natural forest within outgrower schemes (ha)?

      This indicator is disabled as the company has informed ZSL that it doesn't use outgrower schemes for wood/wood fibre production

    • 16. Unplanted (areas designated for future development as plantation forest) (ha)?

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from natural forests

    • Partial
      0.5 / 1

      17. Conservation set-aside and/or HCV area (ha)?

      433,699 - The company publishes the area for conservation (serie de conservation, total of 47,253 ha) and for protection (série de protection, total of 386,446 ha) for each FMU in the summaries of the management plans. However, only one of these documents is dated. Half a point has been awarded for the area covered by this document (93,300 ha)

    • Partial
      0.5 / 1

      18. Area of Intact Forest Landscape (ha)?

      177,000 - Partial points on the basis of IFL assessment for one FMU Mimbeli Ibenga

    • Yes
      1 / 1

      19. Number of Forest Management Units (FMUs)?

      4

    • Yes
      1 / 1

      20. Maps of forest management units (FMUs)?

    • Yes
      1 / 1

      21. Forest management plans available for all FMUs?

    • No
      0 / 1

      22. Monitoring of forest management plan implementation?

      Monitoring results of the implementation of Kabo, Pokola and Loundoungou Forest Management Plans are only publicly available upon request

    • Yes
      1 / 1

      23. Company has provided valid legal documents to Open Timber Portal on use rights (at the time of SPOTT assessments)?

      100% - Score of CIB in this OTP category.
      Please note: Company scores on Open Timber Portal are updated daily. Visit the OTP website to review the company's current performance by clicking on the source link

    • Yes
      1 / 1

      24. Company has provided valid legal documents to Open Timber Portal on forest management (at the time of SPOTT assessments)?

      93.3% - Score of CIB in this OTP category.
      Please note: Company scores on Open Timber Portal are updated daily. Visit the OTP website to review the company's current performance by clicking on the source link

    • Yes
      1 / 1

      25. Company has provided valid legal documents to Open Timber Portal on timber harvesting (at the time of SPOTT assessments)?

      50% - Score of CIB in this OTP category.
      Please note: Company scores on Open Timber Portal are updated daily. Visit the OTP website to review the company's current performance by clicking on the source link

    • 26. Number of company owned pulp and paper mills?

      This indicator is disabled as the company has informed ZSL that it doesn't own pulp or paper mills

    • 27. Maps or addresses of company owned pulp and paper mills?

      This indicator is disabled as the company has informed ZSL that it doesn't own pulp or paper mills

    • Yes
      1 / 1

      28. Number of company owned sawmills?

      5 - The company owns and operates four sawmills in the Republic of Congo and one in Myanmar

    • Yes
      1 / 1

      29. Maps or addresses of company owned sawmills?

    • 30. Number of supplier mills?

      This indicator is disabled as the company only sources from one supplier which does not have mills

    • 31. Maps or addresses of supplier mills?

      This indicator is disabled as the company only sources from one supplier which does not have mills

    • Yes
      1 / 1

      32. Procedures to trace raw materials to country of harvest?

    • Yes
      1 / 1

      33. Procedures to trace raw materials to FMU level?

    • Yes
      2 / 2

      34. Percentage of supply traceable to country level (above 80%)?

      100%

    • Yes
      2 / 2

      35. Percentage of supply traceable to FMU level (above 75%)?

      100%

  • Deforestation and biodiversity Deforestation and biodiversity
    10.5 / 11 95.5%
    • Yes
      1 / 1

      36. Commitment to zero conversion of natural forest?

      The company states that it will allow no conversion or degradation of critical habitats such as High Conservation Value (HCV) areas and other nationally-recognised conservation priorities; plus no conversion or degradation of other natural habitats with high levels of organic carbon such as High Carbon Stock (HCS) forests. These committments are to be fulfilled in a time-bound manner

    • Yes
      1 / 1

      37. Zero conversion commitment applies to all sourcing?

      The company states that its requirements for eliminating unacceptable land use practices applies to all of its suppliers

    • Yes
      1 / 1

      38. Commitment to minimise the impact of logging roads?

      The company details how it minimises the impact of logging roads in all forest management plans and in the company's approach to HCVF

    • Yes
      1 / 1

      39. Commitment to protect forest areas from illegal activities?

    • Yes
      1 / 1

      40. Evidence of monitoring deforestation?

      The monitoring of forest extent and condition is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 1,251,050 ha (61% of total operational area)

    • Partial
      0.5 / 1

      41. Amount of deforestation recorded?

      1.25% - The company only reports the amount of deforestation resulting from road construction (1.25% of the company's operational area)

    • Yes
      1 / 1

      42. Commitment to biodiversity conservation?

    • Yes
      1 / 1

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

      The management and restoration of habitat is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 1,251,050 ha (57% of total operational area)

    • Yes
      1 / 1

      44. Implementing a landscape-level approach to biodiversity conservation?

    • Yes
      1 / 1

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

    • Yes
      1 / 1

      46. Commitment to sustainably manage the use of non-timber forest products (NTFPs)?

    • 47. Commitment not to use genetically modified organisms?

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from natural forests

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    7 / 7 100%
    • Yes
      1 / 1

      48. Commitment to conduct High Conservation Value (HCV) assessments?

    • Yes
      1 / 1

      49. HCV commitment applies to all sourcing?

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

      This indicator is disabled until sufficient number of HCV ALS licensed assessors are available for the location where the company operates

    • Yes
      1 / 1

      51. High Conservation Value (HCV) assessments available?

    • Yes
      1 / 1

      52. High Conservation Value (HCV) management and monitoring plans available?

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

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from natural forests

    • 54. High Carbon Stock (HCS) assessments available?

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from natural forests

    • Yes
      1 / 1

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

    • Yes
      1 / 1

      56. Social and environmental impact assessments (SEIAs) available?

    • Yes
      1 / 1

      57. Company has provided valid legal documents to Open Timber Portal on impact assessments (at the time of SPOTT assessments)?

      90% - Score of CIB in this OTP category.
      Please note: Company scores on Open Timber Portal are updated daily. Visit the OTP website to review the company's current performance by clicking on the source link

  • Soils, fire and GHGs Soils, fire and GHGs
    7.5 / 8 93.8%
    • Yes
      1 / 1

      58. Commitment to best management practices for soils and/or peat?

      The company states that it takes measures to minimise the risk of erosion and soil degradation, and to maintain or enhance soil fertility and that it follows international best practice to identify and conserve forests and other natural habitats with high levels of biomass or organic carbon

    • Yes
      1 / 1

      59. Commitment to reduced impact logging?

      The company commits to reduced impact logging techniques within the forest management plans of all its FMUs

    • 60. Commitment to no planting on peat of any depth?

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from natural forests and that it does not have landbank on peat

    • 61. Commitment on peatland planting applies to all sourcing?

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from natural forests

    • 62. Landbank or planted area on peat (ha)?

      This indicator is disabled as the company has informed ZSL that it doesn't have landbank on peat

    • Yes
      1 / 1

      63. Evidence of best management practices for soils and/or peat?

      The conservation of soils including soil health, erosion control, water regulation, soil fertility is covered by a Living Landscape Policy and the company has informed ZSL that it doesn't have landbank on peat

    • 64. Commitment to zero burning?

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from natural forests

    • 65. Commitment to zero burning applies to all sourcing?

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from natural forests

    • Yes
      1 / 1

      66. Evidence of management and monitoring fires?

    • Partial
      0.5 / 1

      67. Details/number of hotspots/fires in FMUs controlled by the company?

      The company published information on the risks and potential causes of fire within their concessions but the total number of fires over a specified time frame is not specified. Half a point has been awarded

    • Yes
      1 / 1

      68. Time-bound commitment to reduce GHG emissions intensity?

      2,030 (50%) - The company had a target to achieve a 10% reduction in GHG intensity (MTCO2e/MT) by 2020 that it has already met. The company has set a new target to reduce GHGs by 50% by 2030 both in its own operations and in its supply chain

    • Yes
      1 / 1

      69. Progress towards reducing GHG emission intensity?

      The company achieved its original target of a 10% reduction in GHG intensity by 2020

    • 70. Report GHG emissions from land use change?

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from natural forests

    • Yes
      1 / 1

      71. Methodology used to calculate GHG emissions?

  • Water, chemical and waste management Water, chemical and waste management
    4.5 / 9 50%
    • No
      0 / 1

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

      The company only has a target to achieve 100% compliance with wastewater discharge limits by 2020

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1

      74. Commitment to protection of natural waterways through buffer zones?

    • 75. Evidence of treatment of pulp and paper mill effluent?

      This indicator is disabled as the company has informed ZSL that it doesn't own pulp or paper mills

    • No
      0 / 1
      No source

      76. Evidence of sawmill run-off containment and wastewater treatment?

    • 77. Time-bound commitment to improve water use intensity?

      This indicator is disabled as the company has informed ZSL that it doesn't own pulp or paper mills

    • 78. Progress towards commitment on water use intensity?

      This indicator is disabled as the company has informed ZSL that it doesn't own pulp or paper mills

    • 79. Commitment to eliminate chlorine and chlorine compounds for bleaching?

      This indicator is disabled as the company has informed ZSL that it doesn't own pulp or paper mills

    • Yes
      1 / 1

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

    • Yes
      1 / 1

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

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1

      83. Integrated Pest Management (IPM) approach?

      The company mentions integrated pest management training but unclear if using IPM within forestry operations

    • Yes
      1 / 1

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

  • Community, land and labour rights Community, land and labour rights
    21 / 24 87.5%
    • Yes
      1 / 1

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

      The company has committed to not be directly or indirectly involved in the violation of human rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004 V2-0 EN), which defines human rights as those established through the UN Declaration of Human Rights

    • Yes
      1 / 1

      86. Commitment to human rights applies to all sourcing?

      The company has committed to not be directly or indirectly involved in the violation of human rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004 V2-0 EN), which defines human rights as those established through the UN Declaration of Human Rights

    • Yes
      1 / 1

      87. Commitment to respect indigenous and local communities' rights?

    • Yes
      1 / 1

      88. Commitment to respect legal and customary property rights?

    • Yes
      1 / 1

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

    • Yes
      1 / 1

      90. FPIC commitment applies to independent suppliers?

    • Partial
      0.5 / 1

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

      The company states it follows the UN REDD FPIC guidelines but no details provided on how these guidelines are implemented

    • No
      0 / 1

      92. Examples of local stakeholder engagement to prevent conflicts?

    • Yes
      1 / 1

      93. Details of process for addressing land conflicts available?

    • Yes
      1 / 1

      94. Commitment to support the inclusion of women across forestry operations, including addressing barriers faced?

    • Yes
      1 / 1

      95. Commitment to provide essential community services and facilities?

    • Yes
      1 / 1

      96. Company has provided valid legal documents to Open Timber Portal on population rights (at the time of SPOTT assessments)?

      60% - Score of CIB in this OTP category.
      Please note: Company scores on Open Timber Portal are updated daily. Visit the OTP website to review the company's current performance by clicking on the source link

    • Yes
      1 / 1

      97. Commitment to respect all workers' rights?

    • Yes
      1 / 1

      98. Reference to Fundamental ILO Conventions?

      The company has committed to not be directly or indirectly involved in the violation of any of the ILO Core Conventions. This commitment is made through the FSC Policy for Association (FSC-POL-01-004 V2-0 EN)

    • Yes
      1 / 1

      99. Commitment to eliminate gender related discrimination with regards to employment and occupation?

    • Yes
      1 / 1

      100. Company has provided valid legal documents to Open Timber Portal on labour regulations (at the time of SPOTT assessments)?

      71.43% - Score of CIB in this OTP category.
      Please note: Company scores on Open Timber Portal are updated daily. Visit the OTP website to review the company's current performance by clicking on the source link

    • Yes
      1 / 1

      101. Percentage or number of temporary employees?

      36,500 (48.99%) - The company refers to seasonal, casual and temporary, and all contract workers

    • Yes
      1 / 1

      102. Percentage or number of women employees?

      29% - The company reports that 29% of its workforce are women

    • Yes
      1 / 1

      103. Payment of minimum wage?

    • No
      0 / 1
      No source

      104. Reporting of salary by gender?

    • Partial
      0.5 / 1

      105. Commitment to address occupational health and safety, referencing the ILO Code of Practice on Safety and Health in Forestry Work?

      The ILO Code of Practice on Safety and Health in Forestry Work is not referenced

    • Yes
      1 / 1

      106. Time lost due to work-based injuries?

      0.29 - Lost Time Injury Frequency rate

    • Yes
      1 / 1

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

      12

    • Yes
      1 / 1

      108. Provision of personal protective equipment and related training?

  • Certification standards Certification standards
    3.5 / 12 29.2%
    • No
      0 / 1

      109. Time-bound plan for achieving 100% third-party legality verification of FMUs or achieved?

    • No
      0 / 1
      No source

      110. Time-bound plan to source only wood/wood fibre that is in legal compliance verified by a third party?

    • Yes
      1 / 1

      111. Percentage area (ha) verified as being in legal compliance by a third party?

      1,920,640 (87%) - FSC certified

    • Yes
      1 / 1

      112. Percentage of all wood/wood fibre supply traded/processed verified as being in legal compliance by a third party?

      100% - The company only has one supplier in Myanmar.
      Legality verification standard: Myanmar timber legal assurance system (MTLAS)

    • No
      0 / 1
      No source

      113. Time-bound plan for achieving 100% FSC FM certification of FMUs or achieved 100% FSC-certification of FMUs?

    • No
      0 / 1
      No source

      114. Commitment to source only wood/wood fibre that meets FSC Controlled Wood requirements?

    • Partial
      1.5 / 2

      115. Percentage area (ha) FSC FM certified?

      1,251,050 (57%) - 1,251,050 ha (57%)

    • No
      0 / 2
      No source

      116. Percentage of wood/wood fibre supply from outgrower scheme and/or independent suppliers that is FSC FM certified?

    • No
      0 / 2
      No source

      117. Percentage of all wood/wood fibre supply traded/processed that are FSC certified (above 75%)?

    • 118. Percentage area (ha) PEFC certified (excluding FSC certified area)?

      This indicator is disabled as the company reports that it doesn't operate in a country with a PEFC-endorsed SFM standard

  • Smallholders and suppliers Smallholders and suppliers
    1.5 / 4 37.5%
    • 119. Programme to support outgrower scheme smallholders?

      This indicator is disabled as the company has informed ZSL that it doesn't use outgrower schemes for wood/wood fibre production

    • 120. Percentage of outgrower scheme smallholders involved in programme?

      This indicator is disabled as the company has informed ZSL that it doesn't use outgrower schemes for wood/wood fibre production

    • Yes
      1 / 1

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

    • Partial
      0.5 / 1

      122. The company has a Due Diligence System (DDS)?

      Company states to have a DDS for sourcing timber but no details given

    • No
      0 / 1

      123. Suspension or exclusion criteria for suppliers?

      The company is developing a mechanism for addressing non-compliance but no further details are given

    • No
      0 / 1
      No source

      124. Percentage of suppliers assessed and/or engaged on compliance with company requirements?

  • Governance and grievances Governance and grievances
    7 / 8 87.5%
    • Yes
      1 / 1

      125. Commitment to ethical conduct and prohibition of corruption?

    • Yes
      1 / 1

      126. Company has provided valid legal documents to Open Timber Portal on legal registration (at the time of SPOTT assessments)?

      100% - Score of CIB in this OTP category.
      Please note: Company scores on Open Timber Portal are updated daily. Visit the OTP website to review the company's current performance by clicking on the source link

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1

      128. Company has provided valid legal documents to Open Timber Portal on taxes, fees and royalties (at the time of SPOTT assessments)?

      92.31% - Score of CIB in this OTP category.
      Please note: Company scores on Open Timber Portal are updated daily. Visit the OTP website to review the company's current performance by clicking on the source link

    • Yes
      1 / 1

      129. Whistleblowing procedure?

    • Yes
      1 / 1

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

    • Yes
      2 / 2

      131. Details of grievances disclosed?

      The company published a grievance log covering four grievances received between 2011 and 2019 and including the date, issue, source, action taken, and status

Media monitor: Olam International Ltd

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.

Category filter:
No article found for the selected categories.

Scoring criteria: Olam International Ltd

Scoring criteria 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 indicator framework contains 131 indicators across 10 categories.

SPOTT is a ZSL initiative.
Zoological Society of London (ZSL)