Kencana Agri Ltd

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

Environmental Sustainability Policy.

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

3. High-level position of responsibility for sustainability?

The company refers to an internal sustainability team however it is not stated who has high-level responsibility.

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?

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

185709

9. Total oil palm planted area (ha)?

68220

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

14045

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

The company reports an unplanted area figure of 117,489 ha however it is unclear how much of this is available for future planting and how much of this covers infrastructural areas and areas for conservation.

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

17895.4 - Data is more than one year old (2015).

13. Area for infrastructure (ha)?

14. Number of company owned mills?

5

15. Maps or coordinates of company owned mills?

A static map of mills without coordinates or mill names is available in the 2016 annual report, but it is at too broad a scale to accurately determine locations.

16. Number and names of supplier mills?

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

17. Maps of estates/management units?

Concession boundaries have been made available to the RSPO for subsidiary PT Sawindo Kencana, but not all are publicly available due to ongoing legal issues and these may not cover all the company's operations. Maps will become available on GeoRSPO.

18. Maps of scheme/plasma smallholders?

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

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

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

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

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

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

The company states "Our CSPO is traceable to its mill and estates" and "The Group produced 22,567 tons of Certified Sustainable Palm Oil ("CSPO") in 2015, which accounted for 14% of the entire Crude Palm Oil ("CPO") produced within that year".

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

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

24. Commitment to address deforestation?

25. Commitment to zero deforestation?

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

The company's policy applies to its scheme smallholders but not its independent FFB suppliers.

27. Criteria for defining deforestation?

HCV, HCS, peatland.

28. Evidence of monitoring deforestation?

29. Commitment to set aside areas for conservation?

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

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?

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

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

36. Evidence of species conservation activities?

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

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

The company's policy applies to its scheme smallholders but not its independent FFB suppliers.

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

The company only states it uses accredited independent HCV assessors.

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

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

The company has undertaken new planting since January 2015, but no HCV assessments could be found.

42. High Conservation Value (HCV) management and monitoring plans for 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?

The company commits to carrying out HCS assessments but does not specifically refer to the HCS Approach.

45. High Carbon Stock (HCS) assessments?

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

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

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

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

The company's policy applies to its scheme smallholders but not its independent FFB suppliers.

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

The company commits to best management practices for existing plantations on peat, but does not have a commitment to soils.

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

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

The company only details best management practices for soils.

53. Commitment to zero burning?

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

The company's policy applies to its scheme smallholders but not its independent FFB 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?

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

60. GHG emissions?

The company does not report GHG emissions for its whole palm oil operations.

61. GHG emissions from land use change?

62. Methodology used to calculate GHG emissions?

ISCC EU 205 (EU Directive 2009/28/EC).

63. Progress towards commitment to reduce GHG emissions?

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

The company has biomass plants to produce green energy however it is unclear how much of this is produced from palm oil biomass or from other sources.

65. Time-bound commitment to improve water use?

The company is making efforts to improve water use and efficiency, but does not have a clear time-bound commitment.

66. Time-bound commitment to improve water quality?

67. Progress towards commitment on water use?

The company states that 1.12 m3 of water was used per ton of CPO produced in 2015, showing an improvement of 13% in comparison to 2014, but no more recent figures are reported and the company's commitment was not time-bound.

68. Progress towards commitment on water quality?

The company has reported some BOD levels for 2015 but does not report progress over time.

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?

72. No use of paraquat?

Kencana is phasing out the use of paraquat but does not have a time-bound plan.

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 provides some pesticide and fertiliser usage data but it is not reported per hectare, nor are specific chemicals named.

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

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

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

The company commits to respect indigenous and local community rights in relation to FPIC, but it does not refer to the UN Declaration on Rights of Indigenous Peoples or the ILO Indigenous and Tribal Peoples Convention.

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

81. FPIC commitment applies to independent suppliers?

The company's policy applies to its scheme smallholders but not its independent FFB suppliers.

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

83. Process for addressing land conflicts?

The company "endeavours to resolve community complaints and conflicts through an open, transparent and consultative process", but no further details could be found.

84. Commitment to ensure food security for local communities?

85. Commitment to respect all workers' rights?

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

87. Total number of employees?

8163

88. Percentage or number of temporary employees?

89. Percentage or number of women employees?

1761 (21.6%)

90. Minimum wage that the company pays?

91. Commitment to address occupational health and safety?

92. Lost time accident rate?

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

94. Provision of personal protective equipment and pesticide training?

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

2015 - The company's plantation subsidiary, PT Sawindo Kencana, has been an RSPO member since 2015.

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)?

The subsidiary PT Sawindo Kencana states all the countries and regions in which it operates: Indonesia (Bangka-Belitung). However, Kencana Agri Ltd as a whole operates in additional regions in Indonesia: East Kalimantan, South Kalimantan, Gorontalo and Central Sulawesi.

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

2018 - Only for the subsidiary PT Sawindo Kencana.

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?

2025 - Only for the subsidiary PT Sawindo Kencana. Target is more than 5 years away.

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

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

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?

2018 - Sawindo Kencana joined the RSPO in 2015 and plans to achieve its first certification in 2018.

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

0 (0%)

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

0 (0%)

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

0 (0%)

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%)?

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

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

Mass Balance.

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

The company's subsidiary PT. Sawindo Kencana 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.)?

The company's subsidiary PT. Sawindo Kencana is ISCC certified.

111. Programme to support scheme smallholders?

112. Details of support programme for scheme smallholders?

Credit provision, purchase guarantees, training, supporting the development of plantations.

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

8000

114. Programme to support independent smallholders?

115. Details of support programme for independent smallholders?

The company provides training on and introduction to ISCC, RSPO and ISPO standards on request.

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

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

118. Suspension or exclusion criteria for suppliers?

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

120. Commitment to ethical conduct and prohibition of corruption?

121. Whistleblowing procedure?

The company has a whistleblowing policy but the procedure is not detailed.

122. Own grievance or complaints system?

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

124. Grievance system accessible to external stakeholders?

125. Details of grievances disclosed?