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INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
PALM OIL SOURCING POLICY AND
RESPONSIBLE SUPPLIER GUIDELINES
AUDITING THE
SUPPLY CHAIN
In 2014, we developed and implemented a Palm Oil Sourcing
Policy and the Responsible Supplier Guidelines to help manage
the procurement and traceability of all CPO used at our
refineries. Both documents are in line with ISPO requirements,
prevailing Indonesian regulations, and the conditions for HCV
areas as described under RSPO principles and criteria.
The policy and guidelines were discussed at a briefing in our
Jakarta HQ attended by all our CPO suppliers. They were
invited to complete a questionnaire about environmental,
labour and human rights and declare their understanding
of the new requirements. The aim of this questionnaire is
to assess the current compliance and readiness level of our
CPO suppliers with respect to the audit assessment starting
in 2015. As of end
-
2014, CPO suppliers that supply 97%
To help ensure the CPO suppliers comply with our Palm Oil
Sourcing Policy and Responsible Supplier Guidelines in 2015,
we will engage an accredited auditor to inspect the suppliers’
operations for improvement opportunities. The CPO suppliers
are required to rectify all the discrepancies within the agreed
time frame in order remain a supplier to IndoAgri.
Supplier audits cover the following areas:
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of our CPO requirement have acknowledged our policy and
guidelines. Seventy percent of this supply come from internal
sources that are subject to the policy and guidelines.
This initiative has enabled us to systematically communicate
the Group’s sustainability standards across our palm oil supply
chain. We aim to have 100% sustainable CPO supply by 2020.
Over the next four years, we will be working with our suppliers
to help them fully comply to our policy, after which an audit will
be conducted to quantify the preliminary volumes purchased
from suppliers who comply with our sourcing policies. Please
also see the outcomes of our food safety audit on page 50.
View our Palm Oil Sourcing Policy at
TOWARDS AN INCLUSIVE SUPPLY CHAIN
AND SUPPORTING THE SMALLHOLDERS
IndoAgri fully supports the Indonesian government’s Nucleus
-
Plasma Scheme that requires oil palm plantation companies
(nucleus) to develop oil palm plots next to their plantations for
smallholders (plasma).
These plasma plots for oil palms are typically two hectares.
In 2014, we manage 86,890 hectares of plasma plots, half
of which were managed by smallholders, and the other half
by IndoAgri directly. By the end of 2014, 73% of our plasma
farmers had repaid their original loans and become independent
farmers.
In order to establish a sustainable source of CPO from our
mills, we want to include all our plasma and former plasma
smallholders in our supply chain management, and to help
them achieve RSPO
-
certification standards by 2019.
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