Address
Jl. Raya Dumai, Basilam Baru Km. 14, Kel. Lubuk Gaung, Kec. Sungai Sembilan, Dumai - 28882, Indonesia
Phone
+62765438 615 /616 /617/ 618
Email
info@pacificindopalm.com

SUSTAINABILITY

Responsible Sustainable Palm Oil Policy

Incorporating NDPE (No Deforestation, No Peat, No Exploitation)

 

INTRODUCTION 

Palm oil is a vital vegetable oil crop which contributes to economic development, and requires less land to produce more oil than any other vegetable oil crop. Palm oil is a crucial commodity to the world. It is because palm oil are the most cost effective oilseed crop since the production of palm oil gives the highest yield per hectare while using the least area compared to other vegetable oil crop. Palm oil is seen as a solution when it comes to feeding the growing number of people on our planet. By 2050, it is estimated that the global population will increase up to 9 billion people. The production of this vegetable oil provides job opportunities, supports livelihoods and eradicates poverty for communities and workers in developing countries in whole world.

 

PURPOSE 

By adopting the Responsible Palm Oil Policy incorporating NDPE commitments, as palm oil Company, PII believes that the producing palm oil sustainably safeguards environment, economic viability and supports social elevation of communities living and working in palm oil plantations. PII commits to play a significant role in supporting sustainable practices in the palm oil industry. PII also compels to adopt these sustainability standards in its own business operations.

 

SCOPE 

This policy is applicable with immediate effect to all PII operations and we expect all our third party suppliers of palm oil, palm kernel oil and its derivatives to adhere to these commitments in their operations. PII will work to ensure that our third party suppliers comply to our policy and PII will only source our supplies through transparent and traceable network

 

PRINCPLES 

The following principles reflect to the core of our policy which consists of three elements as described below.

 

No Deforestation

  • High Carbon Stock Forest
    PII commit to preserve High Carbon Stock Forest (High, Medium, Low Density Forest, Regenerating Forest, Young Scrub and Cleared)
  • High Conservation Value Areas
    PII commits to preserve and ensure there is no new development on, High Conservation Value Land areas.
  • No Burning
    PII commits to no burning for all operations including land development such as new planting or replanting.

 

No New Development on Peat Land

  • No new development activities on peat lan
  • Ensure all third parties do not develop their business on peat land and ensure Best Management Practice on their existing operation 

 

No Exploitation of People and Local Communities

  • Respect and support universal declaration of human right
  • Respect and recognize the rights of all workers
  • Respect to Labor Fairness
  • Respect and recognize the right of Indigenous and Local Communities
  • Respect to the rights of employees’ health and safety during working in the company

Note: Those above principles will be elaborated as detail below

 

COMMITMENT

Refers to the above principles, PII is committed to ensure a transparent, traceable and responsible supply chain by adopting no deforestation, no peat land planting and no exploitation of local communities and workers in plantation. It is further explained in the following core commitments;

  1. Compliance
  1. Environmental Responsibility
  1. Social Responsibility
  1. Engagement and Inclusivity
  1. Transparent and Traceable Supply Chain

 

Compliance

  • Legal Compliance
    PII adheres to all national laws (regulations), existing industry best practices in our operations. We expect our third party suppliers to adhere to national legislation as compliance, including the national certification scheme requirement, if any.

  • RSPO Role
    PII is a proud member of the Roundtable on Sustainable Palm Oil (RSPO), a global palm oil industry certification scheme operator, and remains committed to engaging and maintaining dialogue with its business associates, clients and wider stakeholders to achieve the mutual goal of responsible and sustainable palm oil development. Wherever possible, we will encourage our suppliers to join as RSPO member and implement RSPO Best Practices.

 

Environmental Responsibility

  • No Deforestation

    PII requires no development on High Conservation Value (HCV) areas and/or High Carbon Stock (HCS) forests in our supply chain management, from our suppliers to our business operations.

    The third parties which are running in plantation business must ensure plantation development activities identify HCV areas and/or HCS Forest for complying best practice guidance from RSPO principles and criteria, High Conservation Value Resource Network (HCVRN) 1 and the High Carbon Stock (HCS) Approach2.

    ____________________________________________

    1For more details, refers to https://www.hcnetwork.org/

    2For more details on methodology, refers to https://highcarbonstock.org/

    PII also requires that third parties commit to implement best management practice for environment and sustainable management of natural resources by respecting the traditional rights of indigenous groups and communities to hunt with controlled manner and in areas designated for those purposes provided that their hunting activities are legal, non-commercial, do not involve rare, threatened, or endangered species, do not threaten the long-term viability of the species, and do not have negative impacts on ecological processes important for agriculture and local ecosystem sustainability.

  • No New Development on Peat Land
    PII will not tolerate and accept any new development on peat-land, regardless of the depth, in accordance to the scope of this policy. For plantations that have been established in peat-land areas, these are required to implement the best management practice of peat-plantation, which is aligned to RSPO BMP for Management & Rehabilitation of peat-lands.

  • Zero Burning
    PII will not accept the use of fire / burning in oil palm production and require third parties not to use fire in land preparation for new planting, or re-planting or any other development, in accordance with the full scope of this policy. Any deliberate burning activities for land clearing by our suppliers will not be tolerated.

  • GHG Reduction
    PII is committed to progressively reduce greenhouse gas (GHG) emission by implementing Best Management Practice prescribed by RSPO. We encourage suppliers to also adopt these practices.

Social Responsibility

PII consistently ensures that human and worker right, right of indigenous and local communities, and labor fairness is respected, recognized and implemented properly.

  • Human Right and Worker Right
    PII commits to respect and protect human rights, the rights of all workers which includes contract, temporary and migrant workers, the elimination of discrimination in employment, promotion of equal rights and constantly ensures that PII is not complicit in human rights abuse.

    The position of PII on No Exploitation aspect in NDPE, action plans and management system are guided by National Labor Laws/Regulations which are mostly established by Ministry of Labor of Indonesia. These provisions apply for all workers, contractors, indigenous people, local communities and anyone affected by our operations under the full scope of this policy, as outlined in our Human Rights Policy.

  • Indigenous and Local Communities
    PII pledges to respect and recognize the rights of indigenous and local communities to give or withhold their Free, Prior, and Informed Consent (FPIC) to operations on lands to which they hold legal, communal or customary rights and individual right. PII strongly encourages engagement with local stakeholder communities to ensure FPIC processes are correctly implemented and continuously improved.

  • Labor Fairness

    PII will not accept the use of child labor, forced or bonded labor in its operations and similarly, will be intolerant of its third-party suppliers that are using children as their workers. PII will ensure all the workers are able to access grievance mechanism which is related to their rights. PII has implemented several practices of labor fairness to protect worker’s fairness which is mentioned as below:

    1. Be paid at least the legal minimum wages (refers to the laws of Labor Ministry of Republic Indonesia)
    2. No retention to employees’ passport, ID card, personal documents and belongings.
    3. Upholding the right of workers, decent work and living conditions and resignation from employment.
    4. Ensure the ethical requirements such that workers do not incur any recruitment fees at any stage of the recruitment process.
    5. Eliminate indentured labor slavery and trafficking of persons, and restrictions on workers’ freedom of movement
    6. Provide accident insurance for the employees. 

Health and Safety
In health and safety aspect, PII strictly ensures the following points that support to protect workers’ health and safety while under employment in the company

  • Ensures the right of employees to a secure and safe working environment and condition, as outlined in PII’s health and safety policy 
  • Respects diversity, and provision of a working environment free from discrimination, harassment and abuse

 

Engagement and Inclusivity

PII commits to be proactive and constructive in engaging with all stakeholders including communities, governments, and customers regarding the impacts of PII’s operations. PII will adjust and improve our policy implementation in ways that are consistent with our goals of protecting forests (no burning), peat lands, local communities and human rights.

 

Supplier Engagement
PII will engage with suppliers to implement and uphold our commitments, consistency and also to comply our policies which will include several activities such as verification, complaint or grievance monitoring and supplier’s progresses towards meeting our responsible palm oil (sourcing) policy. 

  • Client Engagement
    PII is committed to share the sustainability mechanisms for improvement with our clients for evaluation and assessment to create better services. 

  • Smallholders Inclusivity
    PII is committed to supporting the inclusion of smallholders into its supply base chain. Smallholders are a critical part of the industry and they face unique challenges in meeting sustainability compliance which could sideline them from the palm oil supply chain.

 

Transparent and Traceable Supply Chain Management

In this part, PII will conduct transparent and traceable supply chain management which means access specific resources throughout its supply chain.

  • Traceability
    PII will work towards a traceable, transparent and responsible supply chain as required by this policy.  PII will work with suppliers to achieve full traceability to mills and plantations. This information will be updated periodically. We will engage with suppliers to disclose data on traceability to plantation.

PII also commits to:

Traceability to Mill by Year 2020

Traceability to Plantation by Year  2025

 

Grievance and Compliant Guarantee

PII is committed to resolve grievance and complaint through an open, transparent and consultative process. PII will establish a transparent grievance mechanism procedure (recently refers to PII Procedure) to ease stakeholder reports grievance and complaint as well as a process to resolve complaints within our supply base. We will work with relevant parties to accomplish all the conflict solution in a timely manner.

 

Continuous Improvement 

PII commits to continuous improvement to meet the standards or requirement and expectations of stakeholders in an evolving global market and customers’ needs.

PII will intensely develop and review its own NDPE implementation plan. PII also recognizes that policy commitment alone is no substitute for transparency and credible implementation.

We will continue to analyze the policies as well as implementation processes, and engage constant review and improvement process. As new development or requirements are implemented, PII will adjust and improve our policies in ways that are consistent with our  sustainability commitments of protecting forests, peat lands, indigenous and local communities and human rights.