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Established in 1989, Singapore based commodity producer and trader Olam International operates forestry concessions in

  • Landbank (timber/pulp):
    1,990,300 hectares
  • Market cap:
    4,928,309,167 USD
  • Thomson Reuters ticker:
    OLAM.SI
  • Bloomberg ticker:
    OLAM:SP
  • ISIN:
    SG1Q75923504
  • Activities:
    Timber production, timber processing and manufacturing, trading and distribution
  • Locations:
    Republic of Congo (Brazzaville), Myanmar
  • Headquarters:
    SIngapore
  • Website:

Company assessment: Olam International Ltd – July 2018

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.

Assessment date:

Total: 60.3% 57 / 94.5
  • Sustainability policy and leadership Sustainability policy and leadership 6 / 6 100%
    • 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 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 entities that sell goods or services to Olam

    • Yes
      1 / 1
      Source

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

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

    • Yes
      1 / 1
      Source

      3. High-level position of responsibility for sustainability?

      Head of Corporate Responsibility and Sustainability

    • Yes
      1 / 1
      Source

      4. Sustainability report published within last two years?

      Sustainability sections included in 2017 annual report. Stand alone sustainability report last published in 2015

    • Yes
      1 / 1
      Source

      5. 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
      Source

      6. 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

  • Landbank, FMUs and mills Landbank, FMUs and mills 4 / 11 36.4%
    • Companies should publicly report figures on their total landbank and details of different areas under their management. They should also disclose maps of their forest management units and provide forest management plans, as well as details on supplier pulp and paper mills.

    • Yes
      1 / 1
      Source

      7. Lists countries and operations?

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

    • No
      0 / 1
      Source

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

      1,990,300 - Sum of FMUs (does not include Pikounda that is preserved as a REDD+ project). Figures are undated

    • n/a
      -
      Source

      9. Total area of forest plantation (ha)?

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No source

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

    • n/a
      -
      No source

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

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      Source

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

      92,000 - The company states that 92,000 ha of HCV forest are preserved under a REDD+ programme, but also reports other figures for the same REDD+ area (82,530 ha and 92,530 ha). This area only relates to one of the company's FMUs and not all and the figures are undated

    • No
      0 / 1
      No source

      13. Area of Intact Forest Landscape (ha)?

    • Yes
      1 / 1
      Source

      14. Number of Forest Management Units (FMUs)?

      4 - The company's FMUs are given in FSC certification reports

    • Yes
      1 / 1
      Source

      15. Maps of forest management units (FMUs)?

      The locations of FSC certified FMUs are given in FSC certification reports

    • Partial
      0.5 / 1
      Source

      16. Forest management plans available for all FMUs?

      The company states that four management plans have been undertaken and one more is to be finalised by 2018. Three management plans are publicly available (Pokola, Loundoungou-Toukoulakao and Kabo)

    • No
      0 / 1
      No source

      17. Monitoring of forest management plan implementation?

    • n/a
      -
      No source

      18. Number of company owned pulp and paper mills?

      This indicator is disabled as the company's reporting broadly suggests that it does not own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • n/a
      -
      No source

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

      This indicator is disabled as the company's reporting broadly suggests that it does not own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • Partial
      0.5 / 1
      Source

      20. Number of company owned sawmills?

      7 - Six in Republic of Congo and one in Myanmar. It is unclear if this is all of their sawmills and data is more than two years old

    • No
      0 / 1
      No source

      21. Maps or addresses of company owned sawmills?

  • Deforestation and biodiversity Deforestation and biodiversity 11.5 / 13 88.5%
    • 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.

    • Yes
      1 / 1
      Source

      22. 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

    • Yes
      1 / 1
      Source

      23. Zero conversion commitment applies to outgrower scheme and independent suppliers?

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

    • Yes
      1 / 1
      Source

      24. 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
      Source

      25. Commitment to protect forest areas from illegal activities?

      According to the company's FSC certification reports 'CIB-Olam has a policy to prevent illegal activities related to wildlife and other forest products'

    • Yes
      1 / 1
      Source

      26. 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 (60.4% of total operational area)

    • No
      0 / 1
      No source

      27. Amount of deforestation recorded?

    • Yes
      1 / 1
      Source

      28. Commitment to biodiversity conservation?

    • Yes
      1 / 1
      Source

      29. Commitment to set aside areas for conservation?

    • Yes
      1 / 1
      Source

      30. Examples of habitat management and/or habitat restoration of set-aside areas?

      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 (60.4% of total operational area)

    • Partial
      0.5 / 1
      Source

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

      The company has a Living Landscapes Policy, but there is little information on implementation in relation to the company's forestry operations.

    • Yes
      1 / 1
      Source

      32. Commitment to protect species of conservation concern, referencing international or national system of species classification?

    • Yes
      1 / 1
      Source

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

    • n/a
      -
      Source

      34. Commitment not to use genetically modified organisms?

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • n/a
      -
      No source

      35. Commitment to only use alien species where impacts can be controlled?

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • Yes
      1 / 1
      Source

      36. Examples of species conservation activities?

      The protection of rare, threatened and endangered species and their habitats, and the maintenance of ecological functions and values 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 (60.4% of total operational area)

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 4 / 7 57.1%
    • 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.

    • Yes
      1 / 1
      Source

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

    • Partial
      0.5 / 1
      Source

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

      The company has committed to not be directly or indirectly involved in the destruction of High Conservation Values in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004). For this half points are awarded

    • Partial
      0.5 / 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 states that its assessments will be reviewed in compliance with legal requirements and the quality control mechanisms of the HCV Resource Network. However, they do not specifically mention the use of ALS assessors

    • Partial
      0.5 / 1
      Source

      40. High Conservation Value (HCV) assessments available?

      An HCV assessment could not be identified for the company's 671,000 ha Mimbeli-Ibeng concession

    • Partial
      0.5 / 1
      Source

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

      An HCV management and monitoring plan could not be identified for the company's 671,000 ha Mimbeli-Ibeng concession

    • n/a
      -
      Source

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

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • n/a
      -
      No source

      43. High Carbon Stock (HCS) assessments available?

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      No source

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

  • Soils, fire and GHG emissions Soils, fire and GHG emissions 4 / 9 44.4%
    • Companies should commit to protect peatland and undertake best management practices for soils and peat, as well as commit to reduced impact logging. 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.

    • Yes
      1 / 1
      Source

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

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

    • Partial
      0.5 / 1
      Source

      47. Commitment to reduced impact logging?

      The company states it implements reduced impact logging procedures in its FSC certification reports, but does not have a clear commitment which covers all of its operations

    • n/a
      -
      Source

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

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • n/a
      -
      Source

      49. Commitment on peatland planting applies to outgrower scheme and independent suppliers?

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

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

      The conservation of soils, including control of erosion and minimising damage during operations is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). However, specific provisions are not set out for peatland operations. Half 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 (60.4% of total operational area)

    • n/a
      -
      Source

      52. Commitment to zero burning?

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • n/a
      -
      No source

      53. Commitment to zero burning applies to outgrower scheme and independent suppliers?

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No source

      54. Evidence of management and monitoring fires?

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

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

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

    • Yes
      1 / 1
      Source

      57. Progress towards reducing GHG emission intensity?

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

    • n/a
      -
      No source

      58. Report GHG emissions from land use change?

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from plantations. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No source

      59. Methodology used to calculate GHG emissions?

  • Water, chemical and waste management Water, chemical and waste management 4 / 10 40%
    • Companies should commit to managing water use and water quality, providing evidence through time-bound reduction plans, policies on toxic chemical use, waste management and treatment of wastewater and mill effluents.

    • No
      0 / 1
      Source

      60. Time-bound commitment to improve water quality?

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

    • No
      0 / 1
      Source

      61. Progress towards commitment on water quality?

    • Yes
      1 / 1
      Source

      62. Protection of natural waterways through buffer zones?

    • n/a
      -
      No source

      63. Evidence of treatment of pulp and paper mill effluent?

      This indicator is disabled as the company's reporting broadly suggests that it does not own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No source

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

    • n/a
      -
      No source

      65. Time-bound commitment to improve water use?

      This indicator is disabled as the company's reporting broadly suggests that it does not own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • n/a
      -
      No source

      66. Progress towards commitment on water use?

      This indicator is disabled as the company's reporting broadly suggests that it does not own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • n/a
      -
      No source

      67. mmitment to eliminate chlorine and chlorine compounds for bleaching?

      This indicator is disabled as the company's reporting broadly suggests that it does not own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • Yes
      1 / 1
      Source

      68. Evidence of minimising or recycling solid waste produced during sawmilling processes?

    • Partial
      0.5 / 1
      Source

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

      The company commits to minimising the use of pesticides only

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

      72. Integrated Pest Management (IPM) approach?

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

    • No
      0 / 1
      No source

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

  • Community, land and labour rights Community, land and labour rights 16 / 19.5 82.1%
    • 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.

    • Yes
      1 / 1
      Source

      74. Commitment to human rights, referencing the UN Declaration of 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), which defines human rights as those established through the UN Declaration of Human Rights

    • Yes
      1 / 1
      Source

      75. Commitment to human rights applies to outgrower scheme and independent suppliers?

      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), which defines human rights as those established through the UN Declaration of Human Rights

    • Yes
      1 / 1
      Source

      76. Commitment to respect indigenous and local communities' 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), which encompasses the rights of Indigenous and Tribal Peoples as established by the ILO Convention 169

    • Partial
      0.5 / 1
      Source

      77. Commitment to respect legal and customary property rights?

      The company has committed to not be directly or indirectly involved in the violation of traditional rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which encompasses customary rights. This policy does not reference legal rights and no reference to legal rights could be found in company sources

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

      79. FPIC commitment applies to independent suppliers?

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

      81. Details of process for addressing land conflicts available?

      The FSC reports states CIB has a conflict management procedure in place and the company's HCV report states it has an independent social compliance observatory to identify possible disputes and conflicts between CIB and populations. No details are provided on the process for addressing identified land conflicts

    • Partial
      0.5 / 1
      Source

      82. Commitment to mitigate impacts on food security?

      The company states that 'in addition to strict hunting controls and food security, food alternatives are developed at forestry sites, including the importation of beef and frozen products, and economic alternatives are encouraged'. However the company do not have a full commitment in place

    • Yes
      1 / 1
      Source

      83. Commitment to provide essential community services and facilities?

      FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require certified organisations to contribute to the social and economic development of local communities. 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 (60.4% of total operational area)

    • Yes
      1 / 1
      Source

      84. Commitment to respect all workers' rights?

    • Yes
      1 / 1
      Source

      85. 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)

    • Yes
      0.5 / 0.5
      Source

      86. Total number of employees?

      72,000 - Across all operations

    • Yes
      1 / 1
      Source

      87. Percentage or number of temporary employees?

      31,600 - The company refers to 'seasonal, contract or temporary workers'

    • Yes
      1 / 1
      Source

      88. Percentage or number of women employees?

      30%

    • Partial
      0.5 / 1
      Source

      89. Commitment to pay minimum wage?

      The company states that they operate in accordance with all payment laws, however no evidence is provided

    • Partial
      0.5 / 1
      Source

      90. 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
      Source

      91. Time lost due to work-based injuries?

      0.3 - Lost Time Injury Frequency rate

    • Yes
      1 / 1
      Source

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

      7

    • Yes
      1 / 1
      Source

      93. Provision of personal protective equipment and related training?

  • Certification standards Certification standards 3 / 8 37.5%
    • Companies should be certified by credible certification standards, or have time-bound commitments to achieve 100% certification of both forest management units and outgrower schemes. They should also commit to only sourcing certified wood/wood fibre and ensuring that their supply is verified as being in legal compliance.

    • Partial
      0.5 / 1
      Source

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

      1,251,050 (60.4%) - FSC certified

    • No
      0 / 1
      Source

      95. Percentage wood/wood fibre supply verified as being in legal compliance by a third party?

      The company states they conduct their own verification where timber products come from an external source, but not further details are provided

    • Yes
      1 / 1
      Source

      96. Time-bound plan for achieving 100% FSC FM certification of FMUs?

      2018 - The company states that its newest concession is 'on target' to achieve FSC certification by 2018. If achieved the company will have 100% FSC certification of its FMUs (assuming no other acquisitions in this period)

    • No
      0 / 1
      No source

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

    • Partial
      1.5 / 2
      Source

      98. Percentage area (ha) FSC FM certified?

      1,251,050 (60.4%)

    • No
      0 / 2
      No source

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

    • n/a
      -
      No source

      100. Percentage area (ha) PEFC certified?

      This indicator is disabled as the company's reporting broadly suggests that it does not operate in a county with a PEFC-endorsed SFM standard. Please note that ZSL has been unable to confirm this

  • Smallholders and suppliers Smallholders and suppliers 1 / 5 20%
    • 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

      101. Programme to support outgrower scheme smallholders?

    • No
      0 / 1
      No source

      102. Percentage of outgrower scheme smallholders involved in programme?

    • Yes
      1 / 1
      Source

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

      The company report that they conduct their 'own verification' to determine if timber supplied from external sources is 'legal and traceable'. They are also developing a mechanisms for supplier engagement and monitoring in relation to the Olam Supplier Code

    • No
      0 / 1
      Source

      104. 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

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

  • Governance and grievances Governance and grievances 3.5 / 6 58.3%
    • 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

      106. Commitment to ethical conduct and prohibition of corruption?

    • Yes
      1 / 1
      Source

      107. Whistleblowing procedure?

    • Partial
      0.5 / 1
      Source

      108. Own grievance or complaints system?

      Details of the company's grievance system are not clear

    • Yes
      1 / 1
      Source

      109. Grievance or complaints system is accessible to internal and external stakeholders?

    • No
      0 / 2
      Source

      110. Details of grievances disclosed?

      The company states that 42 grievances about labour practices were filed and 51 resolved in the period. No further information could be identified

Media monitor: Olam International Ltd

SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground.

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