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Powerbroker for

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  • Overall approach
    8/12
    • Overarching commitment on deforestation
      4/4
      Conversion-free/zero-gross conversion/zero-net conversion commitment or a zero deforestation/deforestation-free commitment that explicitly includes all other natural ecosystems
      4/4
      "Commit to protect the environment by: Practicing zero deforestation and zero conversion of High Conservation Value (HCV) and High Carbon Stock (HCS) areas where all new development is preceded by HCV and HCS Assessment conducted by assessors accredited by HCVRN and HCSA" 
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "Forests are one of the most important biome in the world and provide many important services to the environment [...] Permata Hijau fully appreciates the importance of conserving forest and therefore has committed to zero deforestation."
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      1/1
      Yes
      1/1
      Which commodities does it apply to?: Palm oil
      They have a diagram showing their sustainability governance which includes certification (in this instance it would RSPO for palm oil). 
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      2/2
      Yes
      2/2
      What is the total volume of GHG emissions arising from land use change?: 0 tonnes
      "Our land use change emission is calculated to be zero because we had not cleared any new land for oil palm cultivation since early 2000s."
    • Disclosure of conservation activity
      Yes
      0/0
      How many hectares of conservation area are being supported or facilitated by the company on land it does not own or manage?: 100 HA
      Permata discloses a number of hectares of conversation but further details are not provided - "Conservation area = 100 HA"
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
  • Commodity score
    41/88
    • Palm oil
      41/88
      • Commitment Strength
        17/20
        • Commitment to protect priority forests
          7/8
          • Commitment details
            Zero-gross conversion
            6/6
            Commitment to protect priority forests
            Zero-gross conversion
            6/6
            Which certification schemes are used?: RSPO
            "Commit to protect the environment by: Practicing zero deforestation and zero conversion of High Conservation Value (HCV) and High Carbon Stock (HCS) areas where all new development is preceded by HCV and HCS Assessment conducted by assessors accredited by HCVRN and HCSA" 
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "Commit to protect the environment by: Practicing zero deforestation and zero conversion of High Conservation Value (HCV) and High Carbon Stock (HCS) areas where all new development is preceded by HCV and HCS Assessment conducted by assessors accredited by HCVRN and HCSA" 
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
        • Commitment to protect High Carbon Stock areas and/or peatlands
          4/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            "We commit to zero-deforestation (using HCSA definition of forest) and will not establish no plantations in high conservation value (HCV) and high carbon stock (HSC) areas. All of our new development will be preceded by HCV and HSC Assessment conducted by assesors accredited by HCVRN and HCSA. Any non HSCA compliant deforestation after 2020 will be remediated or compensated in accordance with RSPO RACP procedure [...] We will not establish new plantations on peat land. Existing plantations on peat will be managed in accordance with RSPO's Best Management Practice"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "We commit to zero-deforestation (using HCSA definition of forest) and will not establish no plantations in high conservation value (HCV) and high carbon stock (HSC) areas. All of our new development will be preceded by HCV and HSC Assessment conducted by assesors accredited by HCVRN and HCSA. Any non HSCA compliant deforestation after 2020 will be remediated or compensated in accordance with RSPO RACP procedure [...] We will not establish new plantations on peat land. Existing plantations on peat will be managed in accordance with RSPO's Best Management Practice"
          • Target date
            Past target date, not updated or not achieved
            0/0.7
          • Interim target date
            No
            0/0.3
        • Commitment to a traceable supply chain
          6/6
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "We aim to achieve 100% traceability to plantation by 2025." They have a long list of requirements that the plantation companies need to provide in order to be deemed as traceable: "We consider our oil or kernel to be traceable to palm oil mill if we have the following information of the supplying mills: name of the mill, address of the mill, and GPS coordinate of the mill. This traceability information will be updated on half-yearly basis."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "We aim to achieve 100% traceability to plantation by 2025." They have a long list of requirements that the plantation companies need to provide in order to be deemed as traceable: "We consider our oil or kernel to be traceable to palm oil mill if we have the following information of the supplying mills: name of the mill, address of the mill, and GPS coordinate of the mill. This traceability information will be updated on half-yearly basis."
          • Target date
            2025
            0.3/0.7
            Target date
            2025
            0.3/0.7
            "We aim to achieve 100% traceability to plantation by 2025." They have a long list of requirements that the plantation companies need to provide in order to be deemed as traceable: "We consider our oil or kernel to be traceable to palm oil mill if we have the following information of the supplying mills: name of the mill, address of the mill, and GPS coordinate of the mill. This traceability information will be updated on half-yearly basis."
          • Interim target date
            No
            0/0.3
      • Social Considerations
        8/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          "we will respect the human rights (as per the definition of UN declaration of Human Rights) of the people we work or interact with as well as people who are impacted by our operations, including workers, local communities and human right defenders, by:- not employing forced labor and child labor- compensate all of our workers at least at the minimum wage level- respecting the right of workers to join trade union- not tolerating harrassment, abuse, or discrimination- complying to all national, local laws, as well as the core ILO conventions- protecting the right of indigenous people as is enshrined in UN declaration on the right of indigenous people"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        16/50
        • Reporting against commitments
          0/2
          • Commitment to protect priority forests
            No
            0/1.7
          • Commitment to protect High Carbon Stock areas and/or peatlands
            No
            0/1.7
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            No
            0/1
          • Commitment to protect High Carbon Stock areas and/or peatlands
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What is the nature of that participation?: Providing support/advice/experience/expertise

          What initiatives does the company participate in?: "Permata Hijau Group (PHG), in partnership with Cargill and CORE held its first supplier workshop in JW Marriott Hotel, Medan"
          "Permata Hijau Group (PHG), in partnership with Cargill and CORE held its first supplier workshop in JW Marriott Hotel, Medan. The workshop aimed to communicate to PHG suppliers the importance of sustainability and transparency and to introduce the updated sustainability/ NDPE policy of PHG as well as PHG’s new supplier code. The event was attended by more than 50 participants."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Not specified
          "We commissioned HCV assessments for all of our plantations to identify the important environmental and social values present within the boundary of our plantations. We have also established and implemented a management and monitoring plan to protect and conserve the HCV area identified. We also engage qualified and registered assessors to conduct HCV-HCS assessments and plan our expansion following recommendations outlined in our HCV-HCS assessments."
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          Which issues does the grievance mechanism cover?: Social; Environmental

          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: yes

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: own
          "Permata Hijau invites stakeholders to lodge any grievances and complaints through our grievance and complaint system.[...] Grievances and complaints can be delivered through the following channels: By Email to: Grievance@permatagroup.comBy Phone to: +62-61-457777By Fax to: +62-61-4569755By Mail to:Jl. Iskandar Muda No. 107Medan, 20154, Indonesia Attn: Grievance and Complaint Team"List of Grievances and Complaints can be found in a link
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 300000 tonnes. 
          According to the 2019 RSPO ACOP report, the total amount of crude oil produced is 300000 tonnes. 
        • Report verified volumes of commodity
          Some disclosure of compliant commodity/unclear % of volume/no verification of reporting
          1/6
          Report verified volumes of commodity
          Some disclosure of compliant commodity/unclear % of volume/no verification of reporting
          1/6
          What is the non-certified/non-compliant volume?: 300000 tonnes

          What is the compliant volume?: 0 tonnes

          What third-party verification is used?: RSPO

          What is the certified volume?: 0 tonnes
          None of the palm oil is currently certified. 
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Upstream: Impact assessments for land development/acquisition
          No
          0/4
          Upstream: Impact assessments for land development/acquisition
          No
          0/4
          "if we ever need to clear new land for new oil palm development, we will engage qualified and registered assessors to conduct HCV-HCS assessments and will plan our expansion following recommendations outlined in our HCV-HCS assessments."
        • 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
          What is the total area in production (in ha)?: 13,000 hectares

          In what country(ies) does the company operate and/or source material?: Indonesia
          Permata Hijau have reported the location of their company-owned processing facilities. They also report their total planted areas as 13,000 hectares but do not disclose the location of these hectares.
        • Downstream: Publishing supplier lists
          Yes, report direct suppliers; Yes, report indirect suppliers
          4/4
          Downstream: Publishing supplier lists
          Yes, report direct suppliers; Yes, report indirect suppliers
          4/4
        • Upstream: Monitor compliance of production/processing
          No
          0/4
        • Upstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: Not specified 

          Details of monitoring: Using internal monitoring and verification systems
          "We will commence a thorough review of our supplier list to ensure full transparency so that we will not have any more commercial relationship with problematic companies."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "Moving forward, we have ceased all commercial relationship with PT. Kallista Alam with immediate effect on 10 June 2020. In addition to ceasing relationship with PT. Kallista Alam, we will do the following steps:We will commence an investigation into how this oversight happened so that it will not happen again in the future.We will commence a thorough review of our supplier list to ensure full transparency so that we will not have any more commercial relationship with problematic companies. The result of the review will be reflected in our updated supplier list.We will create a regularly updated list of non-compliant suppliers to guide us in our purchasing and socialise it to our procurement team.We will increase training for our procurement team on sustainability and traceability. We will engage our suppliers located around Leuser ecosystem to educate and support them on their sustainability."
        • Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
          They have a list of suppliers that were excluded last year for grievances related to deforestation and other issues. 
  • Commitment strength
    17/20
    Avg. score
  • Reporting and Implementation
    16/50
    Avg. score
  • Social considerations
    8/18
    Avg. score

Profile

The Permata Hijau Group (PHG) is a palm oil company that has operations across the entire palm oil supply chain from cultivating to manufacturing and distribution. Its products include crude palm oil, oleochemicals, biodiesel, specialty fats and cooking oil. PHG is one of the top five importers and exporters of palm oil in Indonesia and is among the top ten importers of palm oil into China. Permata Hijau Group is selected as a powerbroker for palm oil.

Sector
Industry sector 
Agri commodities, Agriculture, Chemicals
Segments
Producer, Trader, Processor, Manufacturer
HQ
HQ 
Indonesia
Company Type
Company type 
Private
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.