Download data

Powerbroker for

Select an assessment year:

  • Overall approach
    3/10
    • Overarching commitment on deforestation
      0/4
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "The New York Declaration on Forest (NYDF) recognise the need to restore 150 million hectares of degraded land and forest by 2020 and 350 million hectares by 2030. Kencana Agri aspires to take part and do our part in this global efforts. For us conserving, restoring, and protecting natural habitat and biodiversity is immensely crucial for sustainability, hence it is integral to Kencana Agri’s environmental and sustainability policy and strategy."
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      What proportion of revenue that comes from relevant industries is exposed to each forest risk commodity?: Palm Oil Production 100%

      What type of risk is recognised?: Competition; Reputational

      What revenue comes from industries relevant to each forest risk commodity?: NA

      What poportion of a company’s annual revenue depends on each forest risk commodity?: Palm Oil 100%
      "In carrying our operations, we also implement the principles from both ISPO and ISCC within our operations. As our commitment, we conduct ISPO surveillance audits yearly and re-certification audits as required at all estates and companies. We also implement at all operation sites PROPER rating – environment performance rating by Indonesia’s Ministry of Environment and Forestry. We believe these initiatives provide competitive advantages in the market and help us ensure the quality, responsibility and sustainability of our products."
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      Which commodities does it apply to?: Palm oil

      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: 3 times a year
      "A Sustainability Team comprising of Head of Sustainability, Manager of Sustainability, and coordinators both in Head Off ice and Site Off ice supports Vice Chairman in to conducting necessary engagement, review and reporting on related sustainability strategy and plans. The Sustainability Team sets the Group sustainability agenda, including strategy, roadmap, monitoring of action plan, overseeing the execution of sustainability initiatives and advises the Board on material ESG matters that contribute to the overall materiality assessment, which is utilized by the Board for strategic planning and long-term value creation. Sustainability risk management is built into the Group’s risk management structure and remains under the Board through the ARC. Sustainability Team hold three meetings a year, together with the ARC meeting."
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/1
    • Reporting on emissions from land-use change
      0/1
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
  • Commodity score
    26/90
    • Palm oil
      26/90
      • Commitment Strength
        9/17
        • Commodity-specific deforestation commitment
          2/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            What subsidiaries are explicitly excluded?: Suppliers

            If no, what is excluded?: Segment

            What is the rationale for any exclusions?: NA

            What subsidiaries are explicitly included?: Kencana Agri and subsidiaries
            "The provisions of this policy apply to all operations of Kencana Agri Limited (Kencana Agri, its subsidiary companies and any associated companies where Kencana Agri has management control."
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: No new developments on peat, alignment with best industry practices
            "Sustainability Strategy: • No deforestation of high carbon stock (“HCS”) forest areas and no further land clearing of potential HCS areas until the results of the proposed HCS study are adopted. • No deforestation of high conservation value (“HCV”) areas. • Apply a zero burning policy in respect of new planting and replanting. • Refrain from undertaking new development on peat land of any depth. • to align ourselves with the industry practices and standards generally adopted by the market in relation to sustainable palm oil production."
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: NA
            "Sustainability Strategy: • No deforestation of high carbon stock (“HCS”) forest areas and no further land clearing of potential HCS areas until the results of the proposed HCS study are adopted. • No deforestation of high conservation value (“HCV”) areas. • Apply a zero burning policy in respect of new planting and replanting. • Refrain from undertaking new development on peat land of any depth. • to align ourselves with the industry practices and standards generally adopted by the market in relation to sustainable palm oil production."
        • Commitment to a traceable supply chain
          6/7.5
          • Commitment details
            Downstream company, traces to Processing Facility, checks compliance
            4/4
            Commitment to a traceable supply chain
            Downstream company, traces to Processing Facility, checks compliance
            4/4
            When was this commitment set?: 2015
            "Traceability in our supply chain is an important aspect in ensuring the production of palm oil is sustainable. By tracing supply flows, we can map our supply base, evaluate supplier performance against our sustainability policy, and engage with our suppliers to drive continuous improvement. We strive to make our supply chain as transparent as possible to all stakeholders. As of the end of December 2021, all FFB products coming out and into the Group are traceable to any of our stakeholders."[...]Since 2015 PT Sawindo Kencana "CSPO is traceable to its mill and estates and output is expected to increase in the near future"
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            What subsidiaries are explicitly included?: PT. Sawindo Kencana

            If no, what is excluded?: Subsidiary

            What is the rationale for any exclusions?: NA

            What percentage of commodity production/sourcing is excluded?: NA

            What subsidiaries are explicitly excluded?: All other subsidiaries
            "PT. Sawindo Kencana received both Indonesian Sustainable Palm Oil (“ISPO”) and International Sustainability & Carbon Certification (“ISCC”) certifications in 2015 and is currently also a member of Roundtable on Sustainable Palm Oil (“RSPO”). 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. Our CSPO is traceable to its mill and estates and output is expected to increase in the near future"
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: NA
            "PT. Sawindo Kencana received both Indonesian Sustainable Palm Oil (“ISPO”) and International Sustainability & Carbon Certification (“ISCC”) certifications in 2015 and is currently also a member of Roundtable on Sustainable Palm Oil (“RSPO”). 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. Our CSPO is traceable to its mill and estates and output is expected to increase in the near future"
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: NA
            "PT. Sawindo Kencana received both Indonesian Sustainable Palm Oil (“ISPO”) and International Sustainability & Carbon Certification (“ISCC”) certifications in 2015 and is currently also a member of Roundtable on Sustainable Palm Oil (“RSPO”). 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. Our CSPO is traceable to its mill and estates and output is expected to increase in the near future"
      • Associated Human Rights Abuses
        4/17
        • Labour rights in the supply chain
          No
          0/3
        • Inclusion of small-scale farmers
          Yes
          2/2
          Inclusion of small-scale farmers
          Yes
          2/2
          What is the nature of that support?: Technical assistance/support; Education and training, Economic

          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 8,000
          "Our plasma partnership programs share the best practices with local smallholder farmers, providing practical trainings and quality seed stock, advising on fertilizers and pesticide procurement and utilization, introducing new farming technologies, and assisting with land titling and transporting of FFB to palm oil mills. [...] Our plasma partnership program has resulted in numerous positive social-economic impacts for the farmers. For instance, the quality-of-life of a small village called Tempilang near our SWK’s operations has improved significantly, generating positive benefits of socio-economic development for the area and the local communities for the last 20 years. Their yield has increased remarkably that a cultural event, Ruahan is organized to celebrate their harvest annually." [...] "Through our Plasma Programme, over 8,000 local villagers who were previously plantation workers have now become new plantation owners."
        • Gender equality in the supply chain
          No commitment
          0/2
        • Commitment to remediation
          No
          0/1
        • Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: Not specified
          "Our Community Development and Social Impact sustainable commitment as follows: [...] • Respect the rights of indigenous and local communities to give or withhold their Free, Prior and Informed Consent (FPIC) on lands to which they hold legal, communal or customary rights in line with applicable government regulations."
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        13/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/3
          Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/3
          "By tracing supply flows, we can map our supply base, evaluate supplier performance against our sustainability policy, and engage with our suppliers to drive continuous improvement."
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What is the nature of that participation?: Attending & contributing to meetings

          What initiatives does the company participate in?: Sustainability Development Program Study
          Kencana Agri, through one of our largest operations PT Sawit Kaltim Lestari, continues our collaboration with Golden Agri Resources (GAR) in a joint Sustainability Development Program study, which aimed to improve sustainability practices especially on product traceability, health and safety, workers’ capabilities and competencies, and many more. On top of that, GAR has been actively support us as one of their suppliers through on-line knowledge sharing sessions, namely trainings seminars, group discussion. The COVID-19 pandemic in 2020 did not subdued this collaboration with GAR in knowledge sharing and workers competencies improvement. As many as 68 employees from Kencana Agri participated in these knowledge sharing sessions which were all held through online platforms with various topics, namely: • Global Forest Watch Webinar, • Fair Employment of Casual Workers, • Setting Fair Targets and Wage Policies, • Mitigate Risk of Child Labour, • Planning and Implementation of Participative Community Empowerment Programs, • Handling Social Grievance and Conflict Resolutions, • FPIC Implementation in Sustainable Palm Oil Industry, • Social Dialogue and Effective Negotiation in Palm Oil Supply Chain, and • Sustainability Report as an Effort Towards Compliance and Seizing Global Markets."
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          For what percentage of material produced or sourced by the company has forest risk been assessed?: 100%

          How frequently are assessments conducted?: Quarterly
          "We follow conducts and principles of No Deforestation of high carbon stock areas and the preservation of high conservation value areas, no burning and no new planting on peat of any depth as well as no exploitation of human rights....The Audit and Risk Committee was formed to assist the board in creating and maintaining an effective internal control system to safeguard the Group’s assets, and integrity of the operations of the Group, and to ensure compliance with relevant regulations and legislations applicable in the Company, including those related to sustainability issues...In carrying out its duties, the Group's risk management committee conducts a meeting quarterly and identifies its key risks to assess the effectiveness of the risk management and internal control systems, especially dealing with financial, operational, compliance and climate change risks. Furthermore, these risks are reviewed and are subsequently reported to the Audit board and the Risk Committee. As part of Kencana Agri’s risk management principles, the Group took our utmost attention to precautionary approaches in everything that we do, including our operational impacts to the environment and society. This precautionary approaches and principles are embedded into our management systems and operational control measures, which are based on the Plan-Do-Check-Action cycle to ensure its consistency
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          What product types/sectors is this in?: Crude Palm Oil

          Total volume: 149,646 tonnes CPO

          Reporting certified/compliant volume: 54,423 tonnes

          Reporting non-certified/non-compliant volume: 95,223 tonnes
          In their 2021 sustainability report Kencana Agri Ltd report that "This year, the Group produced 585,285 tonnes and 134,237 tonnes of FFB from the nucleus and plasma estates respectively, totaling to 719,522 tonnes of FFB which then processed in our mills to produce a total of 149,646 tonnes CPO."
        • Monitor compliance for labour rights and FPIC
          No
          0/5
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: Unclear

          For what percentage of production units has an ESIA been carried out as part of the land use planning process?: NA
          "As our commitment towards environment, we undertake High Conservation Value (HCV) Assessments as well as Social and Environmental Impact Assessments for all our new development areas"
        • Upstream: Reporting production/processing locations
          No disclosure
          0/4
          Upstream: Reporting production/processing locations
          No disclosure
          0/4
          In what country(ies) does the company operate and/or source material?: Indonesia

          From what sub-national jurisdiction(s) does the company source material?: East Kalimantan; Riau; Bangka Belitung; Central Sulawesi; North Sulawesi
        • Downstream: Reporting suppliers
          No
          0/4
        • Upstream: Monitor compliance of production/processing
          Yes, using an internal verification system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes, using an internal verification system
          4/4
          How frequently is compliance assessed?: Regularly

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          Does the company use a certification system?: Yes

          Does the company use a jurisdictional monitoring mechanism?: No

          For what percentage of production or primary processing operations that it owns, manages, or otherwise controls does the company use external processes or actors, such as certification, to monitor compliance?: NA

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA

          If so, what jurisdictions and mechanisms does the company use?: NA

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: SAI Global, TUV Nord, Ministry of Environment and Forestry, Department of Environment, East Kalimantan Province
          "Kencana Agri has been actively implementing ISCC, ISPO and PROPER Principles and Criteria in all of our operations. Our mills and estates have been audited by third-party independent parties to assure that our implementation adheres to the high standards of those standards...PROPER was implemented at all of our operation areas. We work together with regional and national PROPER Committee in conducting regular reviews and assessments. I to ensure that PROPER principles were implemented thoroughly and properly at all plantations".
        • Upstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Training and certification

          What criteria does the policy specify for blacklisting or exclusion?: Not specified

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: Yes

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
          "Stakeholder engagement in Kencana Agri is driven by the desire to build mutual respect and understanding of the ongoing tasks needed to achieve key sustainability goals. The stakeholder engagement process which includes a proactive and both formal and informal approach, is carried out to fully understand our stakeholder’s sustainability concerns and issues with a view to ensuring that their key interests in these areas are aligned with that of our Group. By getting to know our stakeholders, we are able to better understand what they want and how the companies' plans and actions will affect their expectation...The following tables provide an overview of the efforts involved in our group’s focus on stakeholder engagement..."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    9/17
    Avg. score
  • Implementation and Reporting
    13/56
    Avg. score
  • Associated Human Rights Abuses
    4/17
    Avg. score

Profile

Kencana Agri is a palm oil plantation company based in Indonesia with a planted area of over 65,000 ha. Kencana Agri Ltd is selected as a powerbroker for palm oil.

Sector
Industry sector 
Agricultural Products, Food Distributors
Segments
Producer, Trader
HQ
HQ 
Singapore
Company Type
Company type 
CO
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.