Sampoerna Agri Resources Pte. Ltd

Overall approach

6/10
- Overarching commitment on deforestation
  
  3/4
  
  Overall commitment
  
  Zero deforestation/Deforestation-free commitment or, for timber, pulp & paper companies only, commitment to well implemented harvest and no deforestation of HCV & HCS areas
  
  3/4
  
  "We maintain a No Deforestation, No Peat, No Exploitation (NDPE) general policy and a host of other environmental commitments."
  
  Open source document
- Signatory to an initiative tackling deforestation
  
  0/1
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "Sampoerna Agro consistently strives for nature conservation in the form of flora and fauna as well as to increase the value of natural resources in all business implementations. One of which was manifested in the renewal of the Sustainability Policy to reaffirm that the Company not only strives to be compliant with land clearing without burning (zero burning) nor opening new land in protected areas, but also opposes opening new land in areas with High Conservation Value (HCV), peatlands and forests with High Carbon Stock (HCS)."
  
  Open source document
- Deforestation as a business risk
  
  0/1
- 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?: Regularly but not specified
  
  Which commodities does it apply to?: Palm oil
  
  "Sampoerna Agro's Sustainability Department, supported by professionals qualified and experienced in their respective fields, is composed of people with diverse competencies, including: agriculture, forestry, biological conservation, geographic information systems, engineering, agricultural technology, sociology, management systems, and economics. The purpose is to create synergies capable to understand and implement principles of sustainability, whose aspects are broad—such as social, economic, environmental—which encompasses all aspects of company activities. Team development continues to be carried out, in quality and quantity, in a planned manner through the Individual Development Plan and Man Power Planning. The Sustainability Team continuously perform improvements across all aspects to ensure sustainability of the business."
  
  Open source document
- 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?: NA
  
  Which method is used to calculate the GHG emissions arising from land use change?: HCSA (High Carbon Stock Approach), GHG emissions reductions have been calculated using the emission factor of 1.05 kg of CO2e/kWh (Biograce v4d 2014)
  
  "The Company is committed to reducing GHG emissions to the atmosphere and increasing the existing absorption of GHG in the atmosphere so as to reduce GHG’s negative impacts on climate change. Calculation of carbon stocks and the valuation of areas with HCS is carried out by the Company on land on which new planting will take place, with reference to HCSA (High Carbon Stock Approach) document issued by the HCSA Steering Committee. After November 2018, if the HCS calculation is carried out with the HCV assessment, the Company will refer to the HCV-HCSA assessment guidelines issued by HCVRN and the HCSA Steering Committee.Until the end of 2021, the Company had conducted 4 Carbon Stock Assessments (CSA), 4 HCS Assessments, and 5 HCV-HCS Combined Assessments for its nucleus and plasma plantations. Management of GHG emissions incorporates calculation and mitigation of GHG emissions. The Company employs three methods for calculating GHG emissions, according to its pertinent needs: RSPO (ton CO2e/ton FFB), ISPO (kg CO2e/kg FFB), and ISCC (kg CO2e/dry ton FFB). [...] From emissions monitoring in 2021, the two methane capture facilities processed 474,811 m3 of POME into biogas. Thus, the methane capture unit reduced potential GHG emissions by 75,970 tons CO2e. In addition, electricity generated from biogas that was delivered to PLN network amounted to 9,348,000 kWh. This allocation of electricity translated to emission savings of 6,797 tons CO2e. Starting in 2021, GHG emissions reductions have been calculated using the emission factor of 1.05 kg of CO2e/kWh (Biograce v4d 2014).Based on data taken from the Company’s latest GHG report, the Company used 385,572 tons of Oil Palm Empty Fruit Bunch (EFB) as organic fertilizer in 2021. This amount is equivalent to 2,352 tons of urea; 655 tons of triple super Phosphate; 6,285 tons of Muriate of Potash and 1,157 tons of kieserite. Thus the use of EFB has eliminated the potential for GHG emissions by 4,842 tons CO2e."
  
  Open source document
- Disclosure of conservation activity
- Disclosure of reforestation activity
- Target to reduce emissions in scope 1/2
Commodity score

40/90
- Palm oil
  
  40/90
  - Commitment Strength
    
    12/17
    - Commitment to protect priority forests
      
      8/9.5
      - Commitment details
        Zero-gross deforestation
        
        4/6
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        4/6
        
        When was this commitment set?: 2021
        
        Which certification schemes are used?: RSPO
        
        "We maintain a No Deforestation, No Peat, No Exploitation (NDPE) general policy and a host of other environmental commitments"[...]"At the moment, Sampoerna Agro has obtained various certifications in palm oil sector such as the Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC) certificates"[...]"HCV area assessment and monitoring is carried out on an ongoing basis in all of the Company’s plantations, both nucleus and plasma."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "We maintain a No Deforestation, No Peat, No Exploitation (NDPE) general policy and a host of other environmental commitments"[...]"At the moment, Sampoerna Agro has obtained various certifications in palm oil sector such as the Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC) certificates"[...]"HCV area assessment and monitoring is carried out on an ongoing basis in all of the Company’s plantations, both nucleus and plasma."
        
        Open source document
      - Target date
        Current/achieved
        
        1/1
        
        Target date
        
        Current/achieved
        
        1/1
        
        What actions or steps are identified for time-bound implementation?: NA
        
        "We maintain a No Deforestation, No Peat, No Exploitation (NDPE) general policy and a host of other environmental commitments"[...]"At the moment, Sampoerna Agro has obtained various certifications in palm oil sector such as the Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC) certificates"[...]"HCV area assessment and monitoring is carried out on an ongoing basis in all of the Company’s plantations, both nucleus and plasma."
        
        Open source document
      - 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
        
        "We maintain a No Deforestation, No Peat, No Exploitation (NDPE) general policy and a host of other environmental commitments"[...]"At the moment, Sampoerna Agro has obtained various certifications in palm oil sector such as the Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC) certificates"[...]"HCV area assessment and monitoring is carried out on an ongoing basis in all of the Company’s plantations, both nucleus and plasma."
        
        Open source document
    - Commitment to a traceable supply chain
      
      4/7.5
      - Commitment details
        Downstream company, traces to First Importer, checks compliance
        
        4/4
        
        Commitment to a traceable supply chain
        
        Downstream company, traces to First Importer, checks compliance
        
        4/4
        
        When was this commitment set?: 2021
        
        "The recording of FFB data is carried out in detail at each plantation and mill, thereby ensuring traceability of their products. The FFB from the nucleus and plasma plantations can be traced down to the oil palm block or plot, while FFB from third parties can be traced down to the collector. The Company requires collectors to show their licensing documents, and while third party FFB suppliers to the Company’s mills are required to provide their land legality documents"
        
        Open source document
      - 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
        
        What subsidiaries are explicitly included?: NA
        
        What percentage of commodity production/sourcing is excluded?: NA
        
        What is the rationale for any exclusions?: Only applies to FFB
        
        If Other, specify: NA
        
        If no, what is excluded?: Product line
        
        "The recording of FFB data is carried out in detail at each plantation and mill, thereby ensuring traceability of their products. The FFB from the nucleus and plasma plantations can be traced down to the oil palm block or plot, while FFB from third parties can be traced down to the collector. The Company requires collectors to show their licensing documents, and while third party FFB suppliers to the Company’s mills are required to provide their land legality documents"
        
        Open source document
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
  - 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: Discrimination; Forced labour; Child labour; Freedom of association
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      "Our commitments [...] To respect and uphold human rights, including the right of employees to form labor unions and discuss issues collectively. We neither discriminate based on race, ethnicity, nationality, religion, physical disabilities, gender, sexual orientation, membership in labor unions, political affiliations, nor age. No forced nor illegal labor. To respect human rights activists."
      
      Open source document
    - Inclusion of small-scale farmers
      Yes
      
      2/2
      
      Inclusion of small-scale farmers
      
      Yes
      
      2/2
      
      What is the nature of that support?: Certification
      
      How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: Not specified
      
      "A key edge to our operations has been our collaboration with our plasma smallholders. While our nucleus-to-total plantation ratio had increased over the years, from lower than 50% back in 2007 to 63% by end of 2021, we continued to foster a dynamic engagement with our smallholders, as we aim to ensure they meet Sampoerna Agro standards for plantation management, productivity, and overall operations. This is also aligned with our goal of having all of our plasma plantations RSPO-certified by 2027."
      
      Open source document
    - 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
      
      "to protect female employees at workplace by strongly prohibiting any sexual harassment and violence towards them, as well as protecting their reproduction rights. We do not employ underaged children and we do facilitate child care."
      
      Open source document
    - Commitment to remediation
      Yes
      
      1/1
      
      Commitment to remediation
      
      Yes
      
      0.5/1
      
      What does the commitment cover?: Environmental harm
      
      "The Company continues to be committed to rehabilitating and restoring damaged HCV areas, including locally-protected areas that have been previously planted with oil palms (inappropriate planting), for example in riparian areas. Throughout 2021, there were no incidents of policy violations related to deforestation and inappropriate land conversion activities"
      
      Open source document
    - Commitment to ensure 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 ensure 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?: NA
      
      "Regarding land ownership, the Company acknowledges and respects land ownership (legal rights, customary rights, and use rights) by the community in accordance with documents owned by the community based on applicable laws and regulations. Therefore, in the acquisition of land for oil palm plantations both core and plasma, the Company applies the principle of FPIC (Free, Prior, Informed, and Consent) so that the land obtained by the Company is the result of mutual agreement between the Company and the community and local government officials. This mechanism has been outlined in the procedures for the implementation of Land Compensation and/ or Growing Compensation which are consistently carried out by the Company."
      
      Open source document
    - Commitment to resolve land conflicts
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    20/56
    - Reporting volumes against commitments
      1-49%
      
      1/3
      
      Reporting volumes against commitments
      
      1-49%
      
      1/3
      
      Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
      
      What is the compliant volume?: 397557.23 Metric Tonnes
      
      How much of this upstream deforestation is in protected areas, primary forests, intact forest landscapes, and/or peatlands?: NA
      
      What is the certified volume?: 397557.23 Metric Tonnes
      
      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?: NA
      
      How many hectares of land owned, controlled or managed is certified?: NA
      
      What is the non-certified/non-compliant volume?: 626477.77 Metric Tonnes
      
      What is the volume with unknown deforestation/conversion risk? Disaggregated by product type or use as relevant.: NA
      
      What is the proportion of total commodity volume sourced with known deforestation/conversion risk?: NA
      
      PT. Sampoerna Agro Tbk report in their 2020 RSPO ACOP report that they consumed 397557.23 Metric Tonnes of RSPO Certified palm oil that year.
    - Reporting is independently verified
      No
      
      0/2
      
      Reporting is independently verified
      
      No
      
      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?: RSPO
      
      Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO
      
      What methods are used for verification?: RSPO
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: NA
      
      Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: NA
      
      PT. Sampoerna Agro Tbk report in their 2020 RSPO ACOP report that they consumed 397557.23 Metric Tonnes of RSPO Certified palm oil that year.
      
      Open source document
    - Suppliers aligned with deforestation commitments across supply chain
      Yes, encouraged
      
      0/3
      
      Suppliers aligned with deforestation commitments across supply chain
      
      Yes, encouraged
      
      0/3
      
      "The Company encourages its plasma estates under guidance to participate in implementing sustainable plantation practices. The Company assists its plasma estates to participate in sustainability certifications such as RSPO and ISCC which begins with the implementation of a management system in their cooperative units (KUD), similar with those of the Company. "
      
      Open source document
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      Yes
      
      2/2
      
      Collaborative actions
      
      Yes
      
      2/2
      
      What is the nature of that participation?: Attending & contributing to meetings; Providing support/ advice/ experience/ expertise
      
      What initiatives does the company participate in?: 1. Indonesian Palm Oil Council (DMSI) 2. Breeding Science Society of Indonesia (PERIPI) 3. Palm Oil Seed Producers Communication Forum (FKPBKS) 4. Indonesian Agronomic Association (PERAGI) 5. Indonesian Peat Association (HGI) 6. International Society for Oil Palm Breeders (ISOPB) 7. International Society for Oil Palm Agronomist (ISOPA) 8. Indonesian Seeds and Nurseries Society (MPPI) 9. Indonesian Seed Association (Asbenindo)
      
      "Since its establishment, Sampoerna Agro has been engaging in research, development, and multistakeholder efforts in the fields relating to agronomic, the creation of high-yielding varieties, and environmental, all of which contribute to the sustainability of the palm oil industry. Currently, the Company is both an active member and management board of the Indonesian Palm Oil Entrepreneurs Association (GAPKI) at the central and regional (provincial) levels where its plantations are located... The Company through its representatives is also active in a number of organizations, including: 1. Indonesian Palm Oil Council (DMSI) 2. Breeding Science Society of Indonesia (PERIPI) 3. Palm Oil Seed Producers Communication Forum (FKPBKS) 4. Indonesian Agronomic Association (PERAGI) 5. Indonesian Peat Association (HGI) 6. International Society for Oil Palm Breeders (ISOPB) 7. International Society for Oil Palm Agronomist (ISOPA) 8. Indonesian Seeds and Nurseries Society (MPPI) 9. Indonesian Seed Association (Asbenindo). As of 2020, the Company had been collaborating with the Faculty of Forestry of IPB in research related to changes in land cover and diversity of flora and fauna in oil palm plantations. This research was funded by the Palm Oil Plantation Fund Management Agency (BPDPKS). During the preparation of the National Interpretation for Indonesia on the 2018 RSPO P&C (INA NI P&C RSPO 2018) the Company played an active role as member of the INA NI P&C RSPO Working Group 2018, representing the plasma smallholders."
      
      Open source document
    - 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
      
      How frequently are assessments conducted?: Prior to new development
      
      For what percentage of material produced or sourced by the company has forest risk been assessed?: NA
      
      "HCV areas in other plantation operational units, which have not yet been planted, remain closely maintained and preserved. The Company adheres to the “HCV Areas Management and Monitoring Program Guideline” as a reference to maintain and/ or enhance the HCV areas’ values that have been identified in the area of the Company’s work units and plasma plantations. The basis for the preparation of this program guideline refers to recommendations from the HCV Areas Assessment Report conducted and compiled by HCV accredited Resource Network (HCVRN) assessors and Assessor Licensing Scheme (ALS) for assessments conducted after 1 January 2015."
      
      Open source document
    - 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
      
      What is the nature of the grievance mechanism used by the company?: Own mechanism
      
      Which issues does the grievance mechanism cover?: Social; Environmental
      
      "The Company possesses a mechanism to handle complaints and grievances from internal as well as external parties, as stipulated in the “Procedures for Communication, Participation, and Consultation”. These procedures include the manner in which these complaints and grievances are received (verbally as well as in writing), the person in charge for receiving and recording them in the stakeholder logbook, and its response time. This stakeholder logbook is present at all estates and mills. All follow ups to the complaints and grievances is properly documented in each work unit." In its WhitsleBlowing Policy, Sampoerna Agri Resources Pte. Ltd provides an email address and postal address to send any reports to."
      
      Open source document
      Open source document
    - Report volumes of commodity
      Reporting total volume
      
      3/3
      
      Report volumes of commodity
      
      Reporting total volume
      
      3/3
      
      Reporting certified/compliant volume: 397557.23 Metric Tonnes
      
      Reporting non-certified/non-compliant volume: 626477.77 Metric Tonnes
      
      What product types/sectors is this in?: Palm Oil Processing
      
      What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA
      
      Total volume: 1024035.0 Metric Tonnes
      
      In their 2020 RSPO ACOP report they reported using a total volume of 1024035.0 Metric Tonnes of palm oil.
      
      Open source document
    - Upstream: Monitor compliance with human rights
      No
      
      0/5
    - Compliance of company-owned operations
      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?: NA
      
      How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: NA
      
      "The Company strives to fulfill all the provisions related to the RSPO’s New Planting Procedures (NPP). For new oil palm planting carried out from 1 January 2010 onwards, the Company adheres to the RSPO’s NPP provisions prior to starting the land clearing. Some provisions related to NPP that the Company has implemented include: consulting with stakeholders, guided by the Free, Prior, and Informed Consent (FPIC) principle in new land clearing, conducting HCV, HCS, SIA, AMDAL assessments, Land Use/Cover Change Analysis (LUCCA), topographic surveys, land/ soil suitability surveys, and GHG assessments. Furthermore, the Company prepares a management and monitoring plan based on the assessments’ results."
      
      Open source document
    - Upstream: Reporting production/processing locations
      No disclosure
      
      0/4
      
      Upstream: Reporting production/processing locations
      
      No disclosure
      
      0/4
      
      In what jurisdiction(s)/subnational region does the company operate and/or source material?: Sumatra ; Kalimantan
      
      In what country(ies) does the company operate and/or source material?: Indonesia
    - Upstream: Monitor compliance of production/processing
      Yes, using a third-party verification system
      
      4/4
      
      Upstream: Monitor compliance of production/processing
      
      Yes, using a third-party verification system
      
      4/4
      
      If so, what jurisdictions and mechanisms does the company use?: NA
      
      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
      
      What tools, processes, bodies carry out monitoring of the company's production or processing operations?: RSPO
      
      Does the company use a jurisdictional monitoring mechanism?: No
      
      For what percentage of suppliers does the company use/rely on external mechanisms 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
      
      Does the company use a certification system?: Yes
      
      How frequently is compliance assessed?: Annually
      
      "The Company is committed to obtaining RSPO certification for all its subsidiaries, including its plasma plantations. To fulfill this commitment, a time-bound commitment for RSPO certification has been made so that 100% of the Company’s subsidiaries and plasma under guidance will have been certified by 2027. For its independent suppliers, the Company plans to obtain its first RSPO certification in 2025. The Company consistently reports its RSPO certification progress of all of its subsidiaries, all of which are located in Indonesia, to the RSPO through the Annual Communication of Progress (ACOP).[...]In 2021, the Company fulfilled its obligations as set by the Minister of Environment Regulation No. 15/2017 in the areas designated by the Government where peat management was to be applied."
      
      Open source document
    - Upstream: Reporting hectares of deforestation
      No
      
      0/4
Commitment strength

12/17

Avg. score
Implementation and Reporting

20/56

Avg. score
Associated Human Rights Abuses

8/17

Avg. score

Profile

Sampoerna Agri Resources Pte. Ltd is one of the leading producers of palm oil and palm kernel in Indonesia. Sampoerna Agri Resources Pte. Ltd is selected as a powerbroker for palm oil.

Sector

Industry sector

Agricultural Products

Segments

Producer, Processor

Indonesia

Company Type

Company type

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

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

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