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Powerbroker for

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  • Overall approach
    5/16
    • Overarching commitment on deforestation
      0/6
      Deforestation commitment
      Commodity-specific commitment
      0/6
      Commodities (if applicable): Palm oil
      "Our Sustainable Agriculture Policy ("Policy") guides all our sustainability programmes. The Policy refers to important sustainability principles and standards, including ISPO.Underpinning this policy are the following core commitments to ensure traceable and sustainably produced palm oil:No deforestation, and conservation of High Conservation Value (HCV) and High Carbon Stock (HCS) areas"
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "Our commercial risk assessment covers forest risk, fire risk, peatland and other soil risk. These risks not only affect the commercial value but also the intrinsic value of eco systems, riparian areas and local communities. HCV land that harbours important species must be protected. Careful land management and tenure agreements help secure such value while respecting human rights and families’ livelihoods. Forests lock in stocks of carbon and are habitats for a rich diversity of plants and animals. Peatlands are highly fertile: draining them brings huge negative environmental impacts, including methane emissions (from a lower water table) and transboundary haze risk. Changing biomes such as forest and peatland will exacerbate risk of global climate change. Fires mean high commercial risks, high potential cost and can threaten national climate change goals, environmental sustainability and poverty reduction."
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: All, mainly reputational and commercial
      "The market demands increasing clarity about where palm oil comes from, how it is sourced and what are the impacts of the sourcing practices. We want our customers to have confidence in the products they receive: their purchasing has an impact, and good product information can help to create change. Our customers and other stakeholders want transparency on food safety, genetic reliability, cultivation conditions, processing and distribution. Our business success depends on it. [...] Our commercial risk assessment covers forest risk, fire risk, peatland and other soil risk. These risks not only affect the commercial value but also the intrinsic value of eco systems, riparian areas and local communities."
    • High-level management of deforestion
      0/1
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/3
    • Reporting on emissions from land-use change
      3/3
      Report LUC emissions
      Yes
      3/3
      What is the total volume of GHG emissions arising from land use change?: 0.23MT

      Which method is used to calculate the GHG emissions arising from land use change?: "Calculations are based on site-specific data and published defaults (emissions factors and GWPs) using the ISPO GHG calculation method, which does not include carbon credits or carbon sinks. Peat emissions include only CO2 emissions and are calculated following international guidelines. The calculation relates only to plantations and mill sites under our operational and financial control"
      Indofoodagri reported the following land conversion emission figures from 2019 - "In addition to land conversion, which accounted for 10.6% of our emissions, other sources of GHG emissions are methane from Palm Oil Mill Effluent (POME), fuel usage in our mills and in the transport of FFB, chemical usage in mills and plantations, and nitrous oxide emission from fertilisers. [...] "Direct Emission Estate - Land Conversion tCO2e ('000) = 191, tCO2e/ tonnes = 0.23"
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
      Yes
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 783 hectares
      "We are committed to the rehabilitation of HCV areas and to deliver enriched biodiversity through reforestation especially in riparian areas. Since 2016, we have planted more than 182,000 trees in over 783 hectares of HCV areas."
  • Commodity score
    43/84
    • Palm oil
      61/84
      • Commitment Strength
        22/28
        • Commitment to protect priority forests
          10/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: RSPO
            "Our Commitments Underpinning this policy are the following core commitments to ensure traceable and sustainable agriculture in our plantations:  No deforestation and conservation of High Conservation Value and High Carbon Stock areas  No planting on peat regardless of depth  No burning[...] For our oil palm operations specifically, we commit to achieve Indonesia Sustainable Palm Oil (ISPO) certification for all of our oil palm estates and mills."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "Our Commitments Underpinning this policy are the following core commitments to ensure traceable and sustainable agriculture in our plantations:  No deforestation and conservation of High Conservation Value and High Carbon Stock areas  No planting on peat regardless of depth  No burning[...] For our oil palm operations specifically, we commit to achieve Indonesia Sustainable Palm Oil (ISPO) certification for all of our oil palm estates and mills."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "Our Commitments Underpinning this policy are the following core commitments to ensure traceable and sustainable agriculture in our plantations:  No deforestation and conservation of High Conservation Value and High Carbon Stock areas  No planting on peat regardless of depth  No burning[...] For our oil palm operations specifically, we commit to achieve Indonesia Sustainable Palm Oil (ISPO) certification for all of our oil palm estates and mills."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "Our Commitments Underpinning this policy are the following core commitments to ensure traceable and sustainable agriculture in our plantations:  No deforestation and conservation of High Conservation Value and High Carbon Stock areas  No planting on peat regardless of depth  No burning[...] For our oil palm operations specifically, we commit to achieve Indonesia Sustainable Palm Oil (ISPO) certification for all of our oil palm estates and mills."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          6/8
          • Commitment details
            Yes
            4/4
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            4/4
            Type of commitment: HCS; Peat
            "Our Commitments Underpinning this policy are the following core commitments to ensure traceable and sustainable agriculture in our plantations:  No deforestation and conservation of High Conservation Value and High Carbon Stock areas  No planting on peat regardless of depth  No burning[...] For our oil palm operations specifically, we commit to achieve Indonesia Sustainable Palm Oil (ISPO) certification for all of our oil palm estates and mills."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Subsidary
            "Our Commitments Underpinning this policy are the following core commitments to ensure traceable and sustainable agriculture in our plantations:  No deforestation and conservation of High Conservation Value and High Carbon Stock areas  No planting on peat regardless of depth  No burning[...] For our oil palm operations specifically, we commit to achieve Indonesia Sustainable Palm Oil (ISPO) certification for all of our oil palm estates and mills."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "Our Commitments Underpinning this policy are the following core commitments to ensure traceable and sustainable agriculture in our plantations:  No deforestation and conservation of High Conservation Value and High Carbon Stock areas  No planting on peat regardless of depth  No burning[...] For our oil palm operations specifically, we commit to achieve Indonesia Sustainable Palm Oil (ISPO) certification for all of our oil palm estates and mills."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "Our Commitments Underpinning this policy are the following core commitments to ensure traceable and sustainable agriculture in our plantations:  No deforestation and conservation of High Conservation Value and High Carbon Stock areas  No planting on peat regardless of depth  No burning[...] For our oil palm operations specifically, we commit to achieve Indonesia Sustainable Palm Oil (ISPO) certification for all of our oil palm estates and mills."
        • Commitment to a traceable supply chain
          6/8
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "To establish the traceability of each tonne of palm oil, we record the following: • Name, parent company, address and GeoCoordinates of plantation2 and mill • Nucleus or plasma KUD/kelompok profile and data • Refinery dispatch number • Certification status"
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Subsidary
            "To establish the traceability of each tonne of palm oil, we record the following: • Name, parent company, address and GeoCoordinates of plantation2 and mill • Nucleus or plasma KUD/kelompok profile and data • Refinery dispatch number • Certification status"
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "To establish the traceability of each tonne of palm oil, we record the following: • Name, parent company, address and GeoCoordinates of plantation2 and mill • Nucleus or plasma KUD/kelompok profile and data • Refinery dispatch number • Certification status"
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "To establish the traceability of each tonne of palm oil, we record the following: • Name, parent company, address and GeoCoordinates of plantation2 and mill • Nucleus or plasma KUD/kelompok profile and data • Refinery dispatch number • Certification status"
      • Social Considerations
        18/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced Labour; Child Labour; Freedom of association
          "We commit to comply with Indonesian National Laws and ratified International Treaties on human rights and, notably, indigenous peoples’ rights. Related Indonesian National Laws such as Legislation No. 39 of 1999 Concerning Human Rights, were based on the Universal Declaration on Human Rights promulgated by the United Nations and other International instruments such as the ILO Conventions concerning human rights ratified IndoAgri Sustainable Agriculture Policy the Republic of Indonesia [...] Discrimination [...] Forced Labour [....] Child Labour [...] Freedom of association"
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          What is the nature of that support?: Economic; Other
          "Additionally, we allocate 20% of new plantation land developed from 2007 onwards for plasma smallholders."
        • Gender equality in the supply chain
          Equality and Inclusion of women in the supply chain
          4/4
          Gender equality in the supply chain
          Equality and Inclusion of women in the supply chain
          4/4
          "In accordance with our Code of Conduct, equal employment opportunity is given to every employee, and candidate for employment, regardless of religion, ethnicity, gender and other discriminatory factors. We will use our best endeavors to support the inclusion of women across our operations."
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          " For cases involving land compensation, we have established certification and confirmation processes for proof of ownership, to ensure that the right person is compensated, with the village head present as witness."
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC and the company discloses how many land developments or site acquisitions indicated the use of FPIC
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC and the company discloses how many land developments or site acquisitions indicated the use of FPIC
          4/4
          What is the status of those FPIC processes?: Not disclosed
          "Despite the complex land tenure systems in rural Indonesia, we remain steadfast in respecting the rights of indigenous people through our commitment to the principles of FPIC." "In 2019, there were no recorded incidents of FPIC violations, violations of the rights of indigenous peoples, or land rights issues involving IndoAgri."
      • Reporting and Implementation
        21/38
        • Reporting against commitments
          6/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            (Producers only) How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date on land owned, controlled, or managed by the company?: 0 in 2019

            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
            Progress is reported on via their 2019 sustainability report - "REDUCING ENVIRONMENTAL IMPACT - Compliance with our policy of no deforestation and zero HCV loss = Full compliance"
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
            Progress is reported on via their 2019 sustainability report - "REDUCING ENVIRONMENTAL IMPACT - No planting on peatland and continue maintaining peat water levels = Since 2013, no new planting on peatlands and water levels maintained in all peatlands under our control [...] Compliance with our policy of no deforestation and zero HCV loss = Full compliance"
          • Commitment to a traceable supply chain
            Yes
            2/2
            Commitment to a traceable supply chain
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            In 2019, Indofoods Agri achieved "100% of FFB processed in our owned mills is traceable to estates" and "100% of CPO processed in refineries is traceable to mills".
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/1.3
          • Commitment to protect High Carbon Stock areas and/or peatlands
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          Yes
          2/2
          Deforestation cut off date
          Yes
          2/2
          Cut-off date: 2011
          "We commit to buying palm oil from smallholders and external suppliers that does not originate from areas cleared of primary forest since 2011."
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: Ministry of Environment and Forestry - Fire Initiative [...] Smallholder Certification

          What is the nature of that participation?: Attending & contributing to meetings; Providing support/advice/experience/expertise; Providing technical capacity
          "We have trained fire control teams and fire specialists across all our plantations. Our estates are equipped with vehicles and equipment for firefighting. Our fire specialists are regularly trained in fire prevention and firefighting. Training is done in collaboration with the Ministry of Environment and Forestry, the military, police, and the local government. IndoAgri delivered 39 fire control training days in 2019. As of 2019, we have a total of 194 fire towers across all our estates. We continued with the implementation of our community collaboration programmes to build local capacity and knowledge to prevent fires. Since the launch of the programme in 2016, we have engaged 38 local villages, and in 2019, assisted in fire-fighting efforts at 26 villages" [...] "Our Smallholder Programme aims to increase ISPO certification for plasma and independent smallholders. The smallholders in this programme understand that the ISPO certification will improve their agricultural practices, labour practices, and access to markets. In 2019, we assisted ten KUDs in the first and second stage ISPO audits. One of the ten KUD is awaiting certificate issuance in 2020."
        • 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?: Prior to new planting
          "Prior to any new planting, HCV and HCS assessments are required. During new planting and replanting in 2019, no primary forest or HCV land was affected."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "We commit to comply with all relevant laws and regulations. We also commit to adhere to, and act in accordance with, the Principles and Criteria of National and International certification programmes to which we have registered." "All our plantations, processing units (palm oil mills and other crop factories) and third party suppliers must demonstrate their understanding and acceptance of our Sustainable Agriculture Policy, and must respond to questionnaire-based information collection to help affirm this.  Audit all our suppliers annually, or at least every two years, and work with them on resolving areas of concerns identified.  Not source from suppliers who are in contravention of this policy, or failing to set reasonable time bound targets to adopt this policy."
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the non-certified/non-compliant volume?: 3,645,000 tonnes

          What is the compliant volume?: 503,000 tonnes
          "In 2019, we produced 4,148,000 tonnes of FFB from our nucleus estates, plasma, and third parties. These FFB were milled into 840,000 tonnes of CPO [...] ISPO-certified production - 503,000 tonnes, or 71% of total nucleus CPO produced in 2019"
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          For what percentage of production units has an ESIA been carried out as part of the land use planning process?: 100%
          " Prior to the development of every estate, we conduct an Environmental Impact Assessment (AMDAL) and Social Impact Assessment (SIA), which enables us to identify baseline conditions and likely social impacts of development. 100% of our operations have undergone AMDAL and SIA, in accordance with Indonesian law. The assessment results and our land development plans are shared with the local village government and community to obtain their input and approval."
        • Upstream: Reporting production/processing locations
          No disclosure
          0/4
        • Upstream: Monitor compliance of production/processing
          Yes using a third-party monitoring system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes using a third-party monitoring system
          4/4
          How frequently is compliance assessed?: Not disclosed

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: ISPO

          Does the company use a certification system?: 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?: 80%

          Does the company use a jurisdictional monitoring mechanism?: Yes
          "All our mills and third party suppliers must demonstrate their understanding and acceptance of our Sustainable Palm Oil Policy, and must respond to questionnairebased information collection to help affirm this. Audit all our suppliers annually, or at least every two years, and work with them on resolving areas of concerns identified.  Not source from suppliers who are in contravention of this policy, or failing to set reasonable time bound targets to adopt this policy." "As more than 75% of our CPO supply is from our own mills, we focus our Policy compliance audit on our internal supply chains. In 2019, we conducted 191 visits, workshops, and audits on 100% of our mills and their supplying estates. " "100% internal mills audited to Policy requirements". "All of our plantations have been registered for ISPO certification, out of which 80% have been certified and audited. We extended the deadline of our target to achieve 100% ISPO certification to 2023 due to new areas under development."
    • Pulp & Paper *
      5/84
      • Commitment Strength
        0/28
        • Commitment to protect priority forests
          0/12
          • Commitment details
            No commitment
            0/8
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
        • Commitment to reduce use of virgin wood fibre
          0/8
          • Commitment details
            No
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
        • Commitment to a traceable supply chain
          0/8
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced Labour; Child Labour; Freedom of association
          "We commit to comply with Indonesian National Laws and ratified International Treaties on human rights and, notably, indigenous peoples’ rights. Related Indonesian National Laws such as Legislation No. 39 of 1999 Concerning Human Rights, were based on the Universal Declaration on Human Rights promulgated by the United Nations and other International instruments such as the ILO Conventions concerning human rights ratified IndoAgri Sustainable Agriculture Policy the Republic of Indonesia [...] Discrimination [...] Forced Labour [....] Child Labour [...] Freedom of association"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          "Equal employment opportunity In accordance with our Code of Conduct, equal employment opportunity is given to every employee, and candidate for employment, regardless of religion, ethnicity, gender and other discriminatory factors"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No commitment
          0/4
      • Reporting and Implementation
        0/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to reduce use of virgin wood fibre
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/1.3
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    15/28
    Avg. score
  • Reporting and Implementation
    14/38
    Avg. score
  • Social considerations
    14/18
    Avg. score

Profile

Salim Group is a large Indonesian conglomerate. Its subsidiary Indofood Agri is a vertically integrated agribusiness company spanning the entire palm oil supply chain from cultivation to product manufacturing and marketing. Products produced include cooking oils and margarines under several brands which are sold both directly and through retailers. Salim Group is selected as a powerbroker for palm oil.

Sector
Industry sector 
Agri commodities, Agriculture, Oils & fats
Segments
Producer
HQ
HQ 
Indonesia
Company Type
Company type 
Public listed
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.