Olam International

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.

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.

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3. High-level position of responsibility for sustainability?

Head of Corporate Responsibility and Sustainability.

4. Sustainability report published within last two years?

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

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.

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.

7. Lists countries and operations?

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

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

1990300 - Sum of FMUs (does not include Pikounda that is preserved as a REDD+ project). Figures are undated.

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.

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

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.

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

92000 - 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.

13. Area of Intact Forest Landscape (ha)?

14. Number of Forest Management Units (FMUs)?

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

15. Maps of forest management units (FMUs)?

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

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).

17. Monitoring of forest management plan implementation?

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.

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.

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.

21. Maps or addresses of company owned sawmills?

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.

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.

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.

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'.

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).

27. Amount of deforestation recorded?

28. Commitment to biodiversity conservation?

29. Commitment to set aside areas for conservation?

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).

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

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

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.

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.

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).

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

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.

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.

40. High Conservation Value (HCV) assessments available?

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

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.

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.

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.

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

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

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.

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.

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.

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.

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

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).

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.

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.

54. Evidence of management and monitoring fires?

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

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.

57. Progress towards reducing GHG emission intensity?

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

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.

59. Methodology used to calculate GHG emissions?

60. Time-bound commitment to improve water quality?

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

61. Progress towards commitment on water quality?

62. Protection of natural waterways through buffer zones?

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.

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

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.

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.

67. Commitment 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.

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

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

The company commits to minimising the use of pesticides only.

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

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

72. Integrated Pest Management (IPM) approach?

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

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

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.

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.

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.

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.

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

79. FPIC commitment applies to independent suppliers?

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

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.

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.

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).

84. Commitment to respect all workers' rights?

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).

86. Total number of employees?

72000 - Across all operations.

87. Percentage or number of temporary employees?

31600 - The company refers to 'seasonal, contract or temporary workers'.

88. Percentage or number of women employees?

30%

89. Commitment to pay minimum wage?

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

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.

91. Time lost due to work-based injuries?

0.3 - Lost Time Injury Frequency rate.

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

7

93. Provision of personal protective equipment and related training?

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

1251050 (60.4%) - FSC certified.

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.

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).

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

98. Percentage area (ha) FSC FM certified?

1251050 (60.4%)

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

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.

101. Programme to support outgrower scheme smallholders?

102. Percentage of outgrower scheme smallholders involved in programme?

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.

104. Suspension or exclusion criteria for suppliers?

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

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

106. Commitment to ethical conduct and prohibition of corruption?

107. Whistleblowing procedure?

108. Own grievance or complaints system?

Details of the company's grievance system are not clear.

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

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.