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Powerbroker for

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  • Overall approach
    1/10
    • Overarching commitment on deforestation
      0/4
      Overall commitment
      Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
      0/4
      Which commodities does the commodity-specific commitment apply to?: Palm oil

      Do they have a commitment for other non-Forest 500 commodities, if so which?: NA
      [translation]..."PT. Perkebunan Nusantara III (Persero) is committed and determined to fulfill: Protect forests, peatlands and work with farmers, non-governmental organizations and stakeholders to bring about positive change and implementation with the principles of no deforestation and peatland conservation."
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "The company’s concern for the environment is realized by a commitment toprotect forests and peatlands, as well as collaborating with farmers, non-governmental organizations, and stakeholders to bring a positive change and implementation of no deforestation and peatland conservation principles"
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      0/1
    • Executive compensation linked to deforestation
      Executive compensation
      No
      0/0
      Does it disclose the percentage of pay at risk?: No
    • 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
    23/90
    • Palm oil
      23/90
      • Commitment Strength
        7/17
        • Commodity-specific deforestation commitment
          7/9.5
          • Commitment details
            Zero-gross deforestation
            4/6
            Commodity-specific deforestation commitment
            Zero-gross deforestation
            4/6
            If other certification, specify: ISPO

            Which certification schemes are used?: RSPO

            Does the company have a commitment to the protection of other specific named ecosystems?: HCS

            When was this commitment set?: 2020
            [translation]..."PT. Perkebunan Nusantara III (Persero) is committed and determined to fulfill: Protect forests, peatlands and work with farmers, non-governmental organizations and stakeholders to bring about positive change and implementation with the principles of no deforestation and peatland conservation."[...]"The national and international certifications obtained by Holding Perkebunan Nusantara PTPN III (Persero) are the Company’s commitments and efforts in business management which are based on the triple bottom line, namely the people, planet and profit approach, for business sustainability assessment. RSPO certification provides confidence that palm products and their derivatives are sustainable products"[...]"No development in High Conservation Value areas (NKT)."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            [translation]..."PT. Perkebunan Nusantara III (Persero) is committed and determined to fulfill: Protect forests, peatlands and work with farmers, non-governmental organizations and stakeholders to bring about positive change and implementation with the principles of no deforestation and peatland conservation."[...]"The national and international certifications obtained by Holding Perkebunan Nusantara PTPN III (Persero) are the Company’s commitments and efforts in business management which are based on the triple bottom line, namely the people, planet and profit approach, for business sustainability assessment. RSPO certification provides confidence that palm products and their derivatives are sustainable products"[...]"No development in High Conservation Value areas (NKT)." PPTN III is the holding company's exposure to palm oil"[...]"PTPN Group targets all (100%) mills and plantations achieved Indonesia Sustainable Palm Oil (ISPO), Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC)gradually by 2025."
          • Target date
            2025
            0.8/1
            Target date
            2025
            0.8/1
            What actions or steps are identified for time-bound implementation?: RSPO Certification
            [translation]..."PT. Perkebunan Nusantara III (Persero) is committed and determined to fulfill: Protect forests, peatlands and work with farmers, non-governmental organizations and stakeholders to bring about positive change and implementation with the principles of no deforestation and peatland conservation."[...]"The national and international certifications obtained by Holding Perkebunan Nusantara PTPN III (Persero) are the Company’s commitments and efforts in business management which are based on the triple bottom line, namely the people, planet and profit approach, for business sustainability assessment. RSPO certification provides confidence that palm products and their derivatives are sustainable products"[...]"No development in High Conservation Value areas (NKT)." PPTN III is the holding company's exposure to palm oil"[...]"PTPN Group targets all (100%) mills and plantations achieved Indonesia Sustainable Palm Oil (ISPO), Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC)gradually by 2025."
          • Interim target date
            No
            0/0.5
            Interim target date
            No
            0/0.5
            What date is given for the interim milestone?: NA
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            0/2
          • Target date
            0/1
          • Interim target date
            0/0.5
      • Associated Human Rights Abuses
        5/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          How far back in the supply chain does this commitment apply?: Tier 1

          Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association
          "Respect human rights by avoiding involvement in human rights violations, providing freedom of association to all workers, respecting workers' rights and dignity, treating workers fairly and free from all forms of discrimination, preventing all forms of sexual harassment, preventing violence against women and children, protect the reproductive rights of all workers, as well as prohibit all forms of forced labor for every worker, labor trade practices, exploitation of children and the use of underage labor."
        • Inclusion of small-scale farmers
          No
          0/2
        • 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?: Tier 1
          "Respect the indigenous people and local communities’ rights by giving free prior and informed consent (FPIC) prior to the development and establishment of new plantations."
        • 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
        12/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          0/2
          Reporting is independently verified
          0/2
          [translation]..."PT. Perkebunan Nusantara III (Persero) is committed and determined to fulfill: Protect forests, peatlands and work with farmers, non-governmental organizations and stakeholders to bring about positive change and implementation with the principles of no deforestation and peatland conservation."[...]"The national and international certifications obtained by Holding Perkebunan Nusantara PTPN III (Persero) are the Company’s commitments and efforts in business management which are based on the triple bottom line, namely the people, planet and profit approach, for business sustainability assessment. RSPO certification provides confidence that palm products and their derivatives are sustainable products"[...]"No development in High Conservation Value areas (NKT)." PPTN III is the holding company's exposure to palm oil"[...]"PTPN Group targets all (100%) mills and plantations achieved Indonesia Sustainable Palm Oil (ISPO), Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC)gradually by 2025."
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: Ministry of BUMN's Strategic Priority initiative

          What is the nature of that participation?: Attending & contributing to meetings; Providing support/ advice/ experience/ expertise
          "Holding Perkebunan Nusantara PTPN III (Persero) together with Perum Perhutani held a Plantation & Forestry Cluster Launching Plantation & Forestry which was carried out virtually through a zoom meeting on Friday (02/07). This is a manifestation of the Ministry of BUMN's Strategic Priority initiative, namely Function Transformation Learning Center/Corporate University, Research Center & Innovation Center which is integrated and consolidated in the BUMN cluster." "Holding Perkebunan Nusantara PTPN III (Persero) together with Perum Perhutani held a Plantation & Forestry Cluster Launching Plantation & Forestry which was carried out virtually through a zoom meeting on Friday (02/07). ; "PT Perkebunan Nusantara (PTPN) V collaborated with the Association of Indonesian Palm Oil Farmers (Apkasindo) in following up on the Palm Oil for the People program, which is a government program for SOEs. Jatmiko explained that the MoU is expected to increase the productivity of smallholder oil palm plantations, both in terms of human resources (HR), plantation institutions, and accelerate the implementation of smallholder oil palm replanting programs. "We welcome the collaboration with Apkasindo in encouraging the government's program for the welfare of farmers through rejuvenation, increased productivity, improvement of human resources and certification of sustainable palm oil"
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Which issues does the grievance mechanism cover?: Social

          What is the nature of the grievance mechanism used by the company?: Own mechanism
          "Whistleblowing System is a system that can be used as a medium for reporters to convey information regarding indications of violations that occur within a company....Whistle Blowing System di alamat wbs.holding-perkebunan.com"
        • Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          What product types/sectors is this in?: Palm Oil Processing

          Total volume: 618575.87 Metric Tonnes

          Reporting certified/compliant volume: 2627010.1 Metric Tonnes

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          Reporting non-certified/non-compliant volume: 2334980.1 Metric Tonnes
          In 2020, PT Perkebunan Nusantara III reported a total production volume of 618575.87 metric tonnes of palm oil. The reported certified and non-certified volumes refer to Fresh Fruit Bunches (FFB).
        • 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
          No
          0/4
        • Upstream: Reporting production/processing locations
          Reports location of company-owned processing facilities
          1/4
          Upstream: Reporting production/processing locations
          Reports location of company-owned processing facilities
          1/4
          For what percent are boundaries disclosed?: 0%

          For what percent are boundaries (of certified land holdings) disclosed?: NA

          For what percent are point locations (of certified land holdings) disclosed?: NA

          For what percent are boundaries (of holdings under conservation) disclosed?: na

          What is the total land area owned, managed, or controlled by the company for the forest risk commodity?: 164887.86ha

          What types of ecosystems are these?: NA

          What is the total area of land (in ha) that is available for future production, e.g. concessions?: NA

          What type of conservation designation and/or conservation status is used?: NA

          From what sub-national jurisdiction(s) does the company source material?: NA

          In what country(ies) does the company operate and/or source material?: Indonesia

          In what jurisdiction(s)/subnational region does the company operate and/or source material?: North Sumatra ; Aceh

          What is the volume of each forest risk commodity that the company produced/processed/sourced in the previous year from each national or subnational location?: NA

          What is the area, in hectares of production units, on which non-DCF commodities are produced or processed, by country and jurisdiction: NA

          For what percent are point locations (of holdings under conservation) disclosed?: na

          For what percent are point locations (of land holdings and processing facilities) disclosed: 100%

          What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: 5960.4ha

          What is the total area in production (in ha)?: 158927.46ha
          PT Perkebunan Nusantara III provides a map detailing the locations of their plantations, with no further information e.g. boundaries or certification beyond that.
        • Downstream: Reporting suppliers
          No
          0/4
        • Upstream: Monitor compliance of production/processing
          No
          0/4
          Upstream: Monitor compliance of production/processing
          No
          0/4
          Does the company use a certification system?: No

          Does the company use a jurisdictional monitoring mechanism?: No
        • 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
          No engagement or exclusion
          0/2
          Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No

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

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
          Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
  • Commitment strength
    7/17
    Avg. score
  • Implementation and Reporting
    12/56
    Avg. score
  • Associated Human Rights Abuses
    5/17
    Avg. score

Profile

Perkebunan Nusantara is an Indonesian state-owned plantation company comprised of fourteen individual but interrelated business enterprises. The group cultivates and processes several agricultural commodities, including rubber, tobacco, sugar cane, tea, and palm oil. It is a major producer and processor of palm oil, estimated to have more than 500,000 hectares for palm plantations and a processing capacity of more than 3,000 fresh fruit bunches per hour from more than 65 facilities. Perkebunan Nusantara is selected as a powerbroker for palm oil.

Sector
Industry sector 
Agricultural Products
Segments
Trader, Processor
HQ
HQ 
Indonesia
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.