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  • Overall approach
    4/10
    • 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
      Do they have a commitment for other non-Forest 500 commodities, if so which?: Rubber, Sugar, Cocoa and Tea

      Which commodities does the commodity-specific commitment apply to?: Palm oil
      "No Deforestation No new development on HCV areas within IndoAgri’s operations and no primary forest clearance.[...]• No deforestation; 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
      "We are committed to minimising negative impacts on the environment while consuming resources responsibly across our operations. In protecting forests, peatlands and biodiversity, we regularly evaluate environmental risks and actively conserve HCS and HCV areas"
    • 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?: NA

      What poportion of a company’s annual revenue depends on each forest risk commodity?: NA

      What type of risk is recognised?: Financial; Operational; Reputational
      "Fires also incur long-term commercial, reputational, and financial costs to businesses. All operations and suppliers must comply with our zero-burning regulations as set out in our Policy. All land-clearing – for example, of nonproductive oil palms – must be done mechanically, and good practices are shared with the communities"
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: NA

      Which commodities does it apply to?: Palm oil
      "The CEO steers and updates the Board on the Group’s sustainability performance, and is personally involved in all discussions and correspondences relating to sustainability. The CEO is supported by the management team, an ERM unit, R&D team, as well as sustainability representatives from all business units [...] "Key Policy commitments to deliver sustainably produced products are: • No deforestation"
    • 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
      1/1
      Emissions reporting
      Yes
      1/1
      What is the total volume of GHG emissions arising from land use change?: 12000t CO2e emissions

      Which method is used to calculate the GHG emissions arising from land use change?: Unclear
      In their 2021 Sustainability Report IndoAgri report 12000t CO2e emissions from land conversion
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
      Reforestation disclosure
      Yes
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 783ha
      "Since 2016, we have planted approximately 194,322 trees in over 783 hectares of HCV area"
    • Target to reduce emissions in scope 1/2
  • Commodity score
    33/90
    • Palm oil
      47/90
      • Commitment Strength
        11/17
        • Commodity-specific deforestation commitment
          6/9.5
          • Commitment details
            Zero-gross deforestation
            4/6
            Commodity-specific deforestation commitment
            Zero-gross deforestation
            4/6
            When was this commitment set?: 2020

            Does the company have a commitment to the protection of other specific named ecosystems?: HCS; Peat
            "Our Sustainable Agriculture Policy (Policy) guides all our sustainability programmes. It applies to all our operations, including our plasma smallholders and other third-party suppliers from whom we purchase for our factories. Key Policy commitments to deliver sustainably produced products are: • No deforestation; conservation of High Conservation Value (HCV) and High Carbon Stock (HCS) areas • No planting on peat regardless of depth"[...]"Material Topic Protection of Forests, Peatlands and Biodiversity Target Compliance with our policy of no deforestation and zero HCV loss Progress in 2021: 100% Compliance"
          • 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?: NA

            If Other, specify: NA

            What subsidiaries are explicitly included?: IndoFood Agri

            What is the rationale for any exclusions?: Policy just applies to subsidary

            If no, what is excluded?: Subsidiary

            What percentage of commodity production/sourcing is excluded?: NA
            Policy just applies to subsidary IndoFood Agri
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: NA
            "Key Policy commitments to deliver sustainably produced products are: • No deforestation; conservation of High Conservation Value (HCV) and High Carbon Stock (HCS) areas • No planting on peat regardless of depth • No burning"[...]"As part of our commitment to responsible sourcing, we aim to have 100% of our mills and estates ISPO certified by 2023."
          • 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
            "Key Policy commitments to deliver sustainably produced products are: • No deforestation; conservation of High Conservation Value (HCV) and High Carbon Stock (HCS) areas • No planting on peat regardless of depth • No burning"
        • Commitment to a traceable supply chain
          6/7.5
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            When was this commitment set?: 2020
            "Full traceability from plantations to IndoAgri mills: 100% of FFB processed in IndoAgri mills are from our nucleus and plasma estates...Full traceability of PK to plantation: 100% of PK processed in our crushers are from IndoAgri mills...100% of CPO processed in our refineries are traceable from palm oil mills"
          • 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?: IndoFood Agri

            If no, what is excluded?: Subsidiary
            "Full traceability from plantations to IndoAgri mills: 100% of FFB processed in IndoAgri mills are from our nucleus and plasma estates...Full traceability of PK to plantation: 100% of PK processed in our crushers are from IndoAgri mills...100% of CPO processed in our refineries are traceable from palm oil mills"
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: NA
            "Full traceability from plantations to IndoAgri mills: 100% of FFB processed in IndoAgri mills are from our nucleus and plasma estates...Full traceability of PK to plantation: 100% of PK processed in our crushers are from IndoAgri mills...100% of CPO processed in our refineries are traceable from palm oil mills"
          • 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
            "Full traceability from plantations to IndoAgri mills: 100% of FFB processed in IndoAgri mills are from our nucleus and plasma estates...Full traceability of PK to plantation: 100% of PK processed in our crushers are from IndoAgri mills...100% of CPO processed in our refineries are traceable from palm oil mills"
      • Associated Human Rights Abuses
        8/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Details of commitment: ILO; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          Other workers' rights commitments: Only work legal working hours

          How far back in the supply chain does this commitment apply?: Tier 1
          ""Respect for Labour and Human Rights, including Freedom of Association and non-discrimination" - Sustainability Report 2021 "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 by Indonesia" - Sustainable Agriculture Policy"[...]"We adhere to all national and local laws, including laws on employees’ freedom of association and collective bargaining, decent pay and working hours, non-discrimination and equal opportunities, and the elimination of forced and child labour as stated in our Labour Policy."
        • Inclusion of small-scale farmers
          Yes
          2/2
          Inclusion of small-scale farmers
          Yes
          2/2
          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: NA

          What is the nature of that support?: Education and training, Economic
          "We also support our smallholder cooperatives (“KUD”) in achieving ISPO certification through knowledge sharing and training"
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/2
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          0.5/2
          "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
          1/1
          Commitment to remediation
          Yes
          0.5/1
          What does the commitment cover?: Social harm; Environmental harm
          " 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 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
          "Through annual audits, we ensure 100% of our plantations, including plasma smallholders, comply with our Sustainable Agriculture Policy, including our key commitments around no deforestation, conservation of HCV and HCS areas, no planting on peat, no burning, respect for labour and human rights, and FPIC."
        • 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
        28/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          Yes, using an internal verification system
          0/2
          Reporting is independently verified
          Yes, using an internal verification system
          0/2
          What percent of the company's supply volume is verified using company verification systems?: NA

          Which processes or groups does the company use for third party verification?: NA

          Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: NA

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: NA

          What methods are used for verification?: NA

          Which tools, approaches, third-party verification, including certification, schemes are used?: NA
          "100% of mills audited to Policy requirements"
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          3/3
          Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          3/3
          "Environmental protection requires cooperation and collaboration from across the value chain. As such, we expect our suppliers to comply with our sustainability standards, in line with our Policy"
        • Deforestation cut off date
          Yes, for partial sourcing regions/operations
          1/2
          Deforestation cut off date
          Yes, for partial sourcing regions/operations
          1/2
          What cut-off date is specified?: 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?: Fire Prevention Schemes

          What is the nature of that participation?: Attending & contributing to meetings; Providing support/ advice/ experience/ expertise
          "Due to the pandemic, we conducted several scaled-down fire training programs in collaboration with government agencies and the surrounding community. Our estates are equipped with vehicles and equipment for firefighting. We continued with the implementation of our community collaboration programs to build local capacity and knowledge to prevent fires. We also continue to explore collaborations with universities and research institutions to accelerate some of the important R&D programmes, such as Ganoderma research"
        • 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?: NA

          How frequently are assessments conducted?: Prior to new planting
          "HCV and HCS assessments are required before any new planting can take place. During new planting and replanting in 2021, no primary forest or HCV land was affected. Regular training on HCV Monitoring and Rehabilitation is conducted for employees in our estates to ensure that knowledge on HCV management and implementation of best practices is fresh and relevant."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "SUSTAINABLE AGRICULTURE & PRODUCTS  Regulatory compliance 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."
        • 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 product types/sectors is this in?: Food Processing

          Reporting non-certified/non-compliant volume: NA

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

          Total volume: 3,455,000 Metric Tonnes of FFB

          Reporting certified/compliant volume: NA
          In their 2021 Annual Report IndoFoodAgri report they produced 3,455,000 Metric Tonnes of FFB during 2021.
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What is the status of those FPIC processes?: NA

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What steps has the company taken to implement their labour rights commitment?: NA
          "Respect for Labour and Human Rights including Freedom of Association and nondiscrimination [...] Audit all our suppliers annually, or at least every two years, and work with them on resolving areas of concerns identified."
        • 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
          For what percentage of production units has an ESIA been carried out as part of the land use planning process?: 100%

          How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: NA
          "We comply with Indonesian law and our Policy for all land transactions we are involved in. Prior to the development of every estate, we conduct an Environmental Impact Assessment (locally known as 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: Reporting production/processing locations
          No disclosure
          0/4
          From what sub-national jurisdiction(s) does the company source material?: Kalimantan ; Sumatra

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

          How frequently is compliance assessed?: NA

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

          Does the company use a certification system?: No

          Does the company use a jurisdictional monitoring mechanism?: No
          "With 70% of our CPO supply coming from our own mills, we focus our Policy compliance audit on our internal supply chains. In spite of the ongoing pandemic, we managed to conduct 88 visits, workshops, and audits on 100% of our mills and their supplying estates in 2021.... To ensure our third-party CPO suppliers comply with our Policy, we regularly engage with them on major findings and recommendations. We cease sourcing from suppliers who are non-compliant. In 2021, no sourcing from suppliers was disrupted due to reasons of non-compliance with our Policy or our CPO quality requirements. While all suppliers must meet regulatory and commercial conditions, we treat them equally with respect to price, quality, and capacity"
        • Upstream: Reporting hectares of deforestation
          No
          0/4
    • Pulp & Paper *
      6/90
      • Commitment Strength
        0/17
        • Commodity-specific deforestation commitment
          0/9.5
          • Commitment details
            No commitment
            0/6
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        6/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Other workers' rights commitments: Only work legal working hours

          Details of commitment: ILO; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply?: Tier 1
          ""Respect for Labour and Human Rights, including Freedom of Association and non-discrimination" - Sustainability Report 2021 "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 by Indonesia" - Sustainable Agriculture Policy"[...]"We adhere to all national and local laws, including laws on employees’ freedom of association and collective bargaining, decent pay and working hours, non-discrimination and equal opportunities, and the elimination of forced and child labour as stated in our Labour Policy."
        • Inclusion of small-scale farmers
          No
          0/2
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/2
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          0.5/2
          "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
          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
          "Through annual audits, we ensure 100% of our plantations, including plasma smallholders, comply with our Sustainable Agriculture Policy, including our key commitments around no deforestation, conservation of HCV and HCS areas, no planting on peat, no burning, respect for labour and human rights, and FPIC."
        • 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
        0/56
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • 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
          No
          0/4
        • Report volumes of commodity sourced/used
          No reporting
          0/3
        • Monitor compliance for labour rights and FPIC
          No
          0/5
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          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: 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
    7/17
    Avg. score
  • Implementation and Reporting
    19/56
    Avg. score
  • Associated Human Rights Abuses
    7/17
    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 
Agricultural Products, Paper Packaging
Segments
Producer
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.