Indofood Agri Resources Ltd

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

The company has a Sustainable Palm Oil Policy.

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

Policy applies to plasma smallholders and third party suppliers from whom purchase crude palm oil (CPO) for refineries.

3. High-level position of responsibility for sustainability?

Group Sustainability Coordinator and Sustainability Think Tank, which is led by the CEO, comprised of the Executive Directors of the Group and its principal subsidiaries.

4. Sustainability report published within last two years?

5. Member of multiple industry schemes or other external initiatives to improve sustainability in relation to palm oil?

6. Verification report on compliance with POIG Charter, if a POIG member?

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

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

The company states it engages with government on ISPO certification, relevant laws and regulation through public forums and regular meetings. The company also engages with NGOs on biodiversity rehabilitation, climate change, labour rights and good agricultural practices through the RSPO and other NGO meetings. The company also has a project with IDH (Sustainable Trade Initiative) on smallholder sustainability.

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

364195 - The figure is reported by Indofood's subsidiary, Salim Ivomas Pratama, which includes the area for London Sumatra.

9. Total oil palm planted area (ha)?

247430 - The company's subsidiary, Salim Ivomas Pratama, reports a planted area in it's 2016 ACOP as 264,201 ha, however this also includes area for infrastructure.

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

87204 - The company also reports a figure on its website of 90,463 ha which includes plasma for palm oil and rubber, and the company's subsidiary, Salim Ivomas Pratama, only reports an area of 56,715 ha in its 2016 RSPO ACOP.

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

20000

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

23279

13. Area for infrastructure (ha)?

16771

14. Number of company owned mills?

24

15. Maps or coordinates of company owned mills?

Some of the company's mill locations are available on Global Forest Watch, however, it is unclear if the maps disclosed constitute 100% of the company's palm oil mills.

16. Number and names of supplier mills?

32 - The company states it has 56 mills supplying CPO, of which 24 are IndoAgri mills.

17. Maps of estates/management units?

Some of the company's estate locations are available on Global Forest Watch. The company's subsidiaries are RSPO members and are not listed as having not submitted its concessions maps. However, ZSL is currently unable to ascertain if the maps disclosed constitute 100% of the company's palm oil estates. Maps will become available on GeoRSPO.

18. Maps of scheme/plasma smallholders?

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

2020 - The company commits to "Achieve 100% product traceability and sustainable palm oil sourcing by 2020" and state "100% of CPO arriving at our refineries can be traced back to the palm oil mill".

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

2020 - The company commits to "Achieve 100% product traceability and sustainable palm oil sourcing by 2020" by they do not specify to plantation level.

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

100% - The company states "100% of CPO arriving at our refineries can be traced back to the palm oil mill".

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

100%

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

24. Commitment to address deforestation?

25. Commitment to zero deforestation?

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

27. Criteria for defining deforestation?

Primary forests, High Conservation Value, High Carbon Stock areas, peatland.

28. Evidence of monitoring deforestation?

The company states that they carry out remote-sensing to prevent clearance of HCV land and regularly monitor HCV areas.

29. Commitment to set aside areas for conservation?

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

The company's states that it planted trees to restore HCV and riparian areas.

31. A landscape-level approach?

32. Commitment to biodiversity conservation?

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

The company refers to the IUCN Red List and Indonesian Regulation No. 7 of 1999 on the Preservation of Flora and Fauna, and states a commitment to "continuously conserve the existing biodiversity, rare/endangered species".

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

The company states that it regularly communicates with employees and communities on importance of restriction of hunting activities, and that the collecting of rare/endangered species is prohibited, but they do not have a clear commitment to no hunting.

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

36. Evidence of species conservation activities?

The company states it records every species found on estates, and gives examples of educational activities.

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

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

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

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

The company only states that "HCV assessments using accredited third-party assessors are now complete on all of our oil palm estates".

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

There is public availability of the following HCV assessments:
PT. PP London Sumatra Indonesia - Wilayah Pahu Makmur Estate and Kedang Makmur Estate
PT. PP London Sumatra Indonesia - Wilayah Indah Permai Estate

It is unclear it these cover all estates planted since January 2015.

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

The following HCV management and monitoring plans are available:
PT. PP London Sumatra Indonesia - Wilayah Pahu Makmur Estate and Kedang Makmur Estate
PT. PP London Sumatra Indonesia - Wilayah Indah Permai Estate

It is unclear it these cover all estates planted since January 2015.

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

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

IndoAgri states "We commit to use the HCS evaluation methodology agreed upon by RSPO, before any new development takes place", but does not clearly refer to using the HCS approach.

45. High Carbon Stock (HCS) assessments?

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

The company states that a social impact assessment is done before new development, but only that all plantation sites passed the compulsory Environmental Impact Assessment, known as AMDAL, during their development. However, through its subsidiaries being RSPO members it commits to SEIAs under the RSPO NPP.

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

There is public availability of the following SEIA assessments:
PT. PP London Sumatra Indonesia - Wilayah Pahu Makmur Estate and Kedang Makmur Estate
PT. PP London Sumatra Indonesia - Wilayah Indah Permai Estate.

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

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

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

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

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

53. Commitment to zero burning?

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

55. Evidence of management and monitoring fires?

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

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

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

The company commits to reducing GHG emissions in their sustainability policy, but does not have a time-bound plan for reducing emissions - it is planning to develop reduction targets for carbon emissions. The company only states targets in relation to reducing energy consumption in palm oil mills and refineries up to 5% and 3% respectively by 2018.

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

60. GHG emissions?

61. GHG emissions from land use change?

62. Methodology used to calculate GHG emissions?

RSPO PalmGHG Calculator V2.1.1.

63. Progress towards commitment to reduce GHG emissions?

The company reports that net emissions were 1.79 tonne CO2e per tonne of CPO production in 2016, no change from 2015 - the company does not currently have a time-bound target for reducing emissions. In relation to its energy consumption targets, the company reports an increase of 1.2% per tonne of FFB processed in mills from 2015 to 2016, but energy consumption at refineries decreased by 6%.

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

2 (8.3%)

65. Time-bound commitment to improve water use?

The company has a target to reduce water consumption in palm oil mills up to 3% by 2018.

66. Time-bound commitment to improve water quality?

67. Progress towards commitment on water use?

The company reports figures on reduction in water consumption at mills and refineries but does not report against its time-bound target yet as this target was only set in 2016.

68. Progress towards commitment on water quality?

The company reports improving figures on BOD levels of effluent, but does not have a time-bound commitment to report on.

69. Protection of natural waterways through buffer zones?

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

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

The company only states "We attempt to reduce chemical use on our estates" but do not have a clear commitment.

72. No use of paraquat?

The company states in its 2016 sustainability report that it will phase out paraquat by the end of 2017, however in their updated 2017 sustainable palm oil policy they state "We commit to immediately stop the use of Paraquat (and products containing Paraquat and its related compounds)".

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

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

75. Integrated Pest Management (IPM) approach?

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

The company reports the amount of herbicides, fungicides, insecticides, rodenticides and paraquat used in '000 litres, but not the names of chemicals used nor use per hectare.

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

The company states it respects human rights, and will comply with national laws and ratified internationally treaties. It references the Indonesian law on human rights, which it states "were based on the Universal Declaration on Human Rights promulgated by the United Nations", but does not clearly state its compliance with the UN Declaration.

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

The company states that they engage with local communities and governments to establish land tenure rights and that their land acquisition process complies with Indonesian law and regulations.

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

The company states it commits to comply with indigenous peoples' rights, but does not reference any specific relevant international treaties.

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

81. FPIC commitment applies to independent suppliers?

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

83. Process for addressing land conflicts?

The company only states "IndoAgri's land conflict resolution mechanism investigates claims and disputes with the involvement of local government, village administrative teams and community elders. A community development forum is held annually to discuss important issues affecting the community and to provide advice to address their needs".

84. Commitment to ensure food security for local communities?

The company only states "We have a PROKLIM project in our Kayangan estate in Riau involving water catchment planning, soil protection, community housing and food security.".

85. Commitment to respect all workers' rights?

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

The company does not commit to equal remuneration or no discrimination.

87. Total number of employees?

74434 - The company states "In 2016, IndoAgri employed 38,104 people in permanent full-time positions, and 1,548 people on short-term contracts in Indonesia. We also employed 34,782 casual labourers.".

88. Percentage or number of temporary employees?

36330 (49%)

89. Percentage or number of women employees?

15159 (20%)

90. Minimum wage that the company pays?

91. Commitment to address occupational health and safety?

92. Lost time accident rate?

Accident frequency rate of 1.6 accidents per million man-hours in 2016.

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

5 - 2016.

94. Provision of personal protective equipment and pesticide training?

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

The subsidiary PT Salim Ivomas Pratama Terbuka has been an RSPO member since 2007, and its subsidiary PT PP London Sumatra Terbuka has been an RSPO member since 2004.

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

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

Salim Ivomas Pratama states all the countries and regions in which the company operates: Indonesia (West Kalimantan, East Kalimantan, Central Kalimantan, Riau, North Sumatra, South Sumatra).

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

2019 - However, an original target of 2013 was extended to 2016 and subsequently to 2019, then 2016, then back to 2019 again.

99. Time-bound plan for achieving 100% RSPO certification of scheme/associated smallholders within 5 years or achieved 100% RSPO-certification of scheme/associated smallholders?

2019 - An original target of 2016 was extended to 2019.

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

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?

2009 - London Sumatra joined the RSPO in 2004 and certified its first plantation estate in 2009, and Salim Ivomas Pratama joined the RSPO in 2007 and certified its first plantation estate in 2009.

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

10 (42%) - The company also reports a figure of 12 mills being RSPO certified in its 2016 sustainability report but this includes mills that has only been through second stage audit of RSPO.

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

94128 (26%) - The company also reports a figure of 110,657 ha in its 2016 sustainability report but this includes hectarage that has only been through second stage audit of RSPO.

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

0 (0%) - The company reports a target to achieve 14,573 ha of RSPO certified plasma estates in 2017.

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

0 (0%)

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

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

Book & Claim; Mass Balance; Identity Preserved.

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

The company states that 31% of its CPO production is ISPO certified.

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

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

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

ISO 14001.

111. Programme to support scheme smallholders?

112. Details of support programme for scheme smallholders?

Price and quality of FFB, income and profit stability level, cooperations, cultivation practices, labour standards and attitudes to forest risk, yield maximisation and safety, sustainable agricultural practices, RSPO/ISPO certification.

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

114. Programme to support independent smallholders?

115. Details of support programme for independent smallholders?

Price and quality of FFB, income and profit
stability level, cooperations, cultivation practices, labour standards and attitudes to forest risk, yield maximisation and safety, sustainable agricultural practices, RSPO/ISPO certification.

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

159 smallholders had been audited and completed the RSPO certification process in 2016.

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

The company states "all our mills and third party suppliers must demonstrate their understanding and acceptance of our Sustainable Palm Oil Policy, and must respond to questionnaire based information collection to help affirm this" and also state that they will annually audit suppliers.

118. Suspension or exclusion criteria for suppliers?

The company states that they will "Not source from suppliers who are in contravention of this policy, or failing to set reasonable time bound targets to adopt this policy" They also states that "In 2016, after a period of engagement, we decided to exclude certain CPO suppliers who were unable to meet our Responsible Supplier Guidelines".

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

The company states that "Suppliers that supply 80% of our CPO requirement have undergone initial audit against our sourcing policy".

120. Commitment to ethical conduct and prohibition of corruption?

121. Whistleblowing procedure?

122. Own grievance or complaints system?

The company only states that it has grievance mechanisms in place for employees and local communities.

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

124. Grievance system accessible to external stakeholders?

Accessible to local communities.

125. Details of grievances disclosed?

The company only states it had one grievance in relation to land rights in 2009.