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  • Overall approach
    6/16
    • Overarching commitment on deforestation
      0/6
      Deforestation commitment
      No overarching deforestation commitment
      0/6
      Commodities (if applicable): 0
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "Sampoerna Agro continuously upholds efforts to implement principles of sustainability in producing sustainable palm oil as well as related products and services within its operational activities. In doing so, The Company commits to prioritizing stakeholders satisfaction i.e customers, colleagues, employees, shareholders, communities, governments, as well as other relevant stakeholders. [...] To enforce zero burning in our land clearing activities and prohibit land clearing activities in environmentally protected areas, High Conservation Value (HCV) areas, peatlands, and forest with High Carbon Stock (HCS)."
    • 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.: competition, operational, reputational
      “In implementing sustainable practices of palm oil production and distribution, as well as in formulating business plans and executing them, Sampoerna Agro has been fully compliant with the prevailing regulations and the standards of various international certifications (ISPO, ISCC, RSPO, and ISO among them). Aiming to sustain our business competitiveness and make a resounding legacy of development for generations to come, the Company continues to uphold industry best practices, ensuring that occupational health and safety measures as well as environmental management are observed in every phase of our business.”
    • 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
      Company has an audit committee and risk management committee who look after compliance in relation to company policies (which includes palm oil/HCV). In addition they have a sustainability department who carry out various assessments. "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. It is aimed at creating 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, as a means to ensure business sustainability."
    • 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
      Which method is used to calculate the GHG emissions arising from land use change?: "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)."

      What is the total volume of GHG emissions arising from land use change?: 0 unclear
      "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. [...] To mitigate GHG emissions, the Company performs: [...] Calculating carbon stocks before opening new land (HCSA); andMonitoring of emissions, carried out annually based on the previous year’s operational dataFrom emissions monitoring in 2019, the two methane capture facilities processed 280,794 m3 of POME into biogas. Thus, the methane capture unit reduced potential GHG emissions by 44,927,040 kg CO2e. "
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
  • Commodity score
    48/84
    • Palm oil
      48/84
      • Commitment Strength
        18/28
        • 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
            "For Sampoerna Agro, sustainability is articulated through green initiatives, including adhering to the highest criteria for sustainable palm oil development and other environmentally friendly benchmarks. 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. We have also complied with the local best practices under the Indonesian Sustainable Palm Oil (ISPO) certification."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "For Sampoerna Agro, sustainability is articulated through green initiatives, including adhering to the highest criteria for sustainable palm oil development and other environmentally friendly benchmarks. 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. We have also complied with the local best practices under the Indonesian Sustainable Palm Oil (ISPO) certification."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "For Sampoerna Agro, sustainability is articulated through green initiatives, including adhering to the highest criteria for sustainable palm oil development and other environmentally friendly benchmarks. 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. We have also complied with the local best practices under the Indonesian Sustainable Palm Oil (ISPO) certification."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "For Sampoerna Agro, sustainability is articulated through green initiatives, including adhering to the highest criteria for sustainable palm oil development and other environmentally friendly benchmarks. 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. We have also complied with the local best practices under the Indonesian Sustainable Palm Oil (ISPO) certification."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          8/8
          • 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: [...] To enforce zero burning in our land clearing activities and prohibit land clearing activities in environmentally protected areas, High Conservation Value (HCV) areas, peatlands, and forest with High Carbon Stock (HCS)."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "Our commitments: [...] To enforce zero burning in our land clearing activities and prohibit land clearing activities in environmentally protected areas, High Conservation Value (HCV) areas, peatlands, and forest with High Carbon Stock (HCS)."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "Our commitments: [...] To enforce zero burning in our land clearing activities and prohibit land clearing activities in environmentally protected areas, High Conservation Value (HCV) areas, peatlands, and forest with High Carbon Stock (HCS)."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "Our commitments: [...] To enforce zero burning in our land clearing activities and prohibit land clearing activities in environmentally protected areas, High Conservation Value (HCV) areas, peatlands, and forest with High Carbon Stock (HCS)."
        • 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
        11/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          "Sampoerna Agro’s commitments are encapsulated as follows: [...] To respect and uphold human rights, including the right of employees to form labor unions and discuss issues collectively. To not discriminate anyone based on race, ethnicity, nationality, religion, physical disabilities, gender, sexual orientation, membership in labor unions, politicalaffiliations, or age. To allow no forced or illegal labor. To respect human rights activists.”
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          What is the nature of that support?: Certification
          "As part of the Company’s sustainability strategy, Sampoerna Agro continues to empower smallholders in its plasma estates, in addition to improving the quality of its nucleus estates, as a crucial part of its business development strategy. By the end of 2019, around 50% of the Company’s plasma estates have been RSPO and/or ISCC certified. Sampoerna Agro Group had 4 ISCCcertified subsidiaries, includes 4 mills, 4 nucleus estates, and 11 KUDs under guidance. The total of RSPO-certified units from 7 subsidiaries are 6 mills (75% of the total number of mills), 14 nucleus estates (37% of the total), and 25 KUDs (45% of the total)."
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          "Sampoerna Agro’s commitments are encapsulated as follows: [...] To not discriminate anyone based on race, ethnicity, nationality, religion, physical disabilities, gender"
        • 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/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          What is the status of those FPIC processes?: Current
          “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.”
      • Reporting and Implementation
        19/38
        • Reporting against commitments
          4/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            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
            Company uses RSPO as certification within their operations - "RSPO certification status: “By the end of 2019, around 50% of the Company’s plasma estates have been RSPO and/or ISCC certified. Sampoerna Agro Group had 4 ISC Ccertified subsidiaries, includes 4 mills, 4 nucleus estates, and 11 KUDs under guidance. The total of RSPO-certified units from 7 subsidiaries are 6 mills (75% of the total number of mills), 14 nucleus estates (37% of the total), and 25 KUDs (45% of the total). “
          • 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?: Yes
            "Our commitments: [...] To enforce zero burning in our land clearing activities and prohibit land clearing activities in environmentally protected areas, High Conservation Value (HCV) areas, peatlands, and forest with High Carbon Stock (HCS)." [...] "Since November 2018, on any new clearing for oil palm planting, the Company will conduct an HCV-HCS combined assessment with the HCVRN’s ALS scheme and comply with all new planning provisions according to the rules set by Roundtable on Sustainable Palm Oil (RSPO). The implementation of HCV Areas Management and Monitoring Program is carried out based on the periods specified in the “HCV Areas Management and Monitoring Program Guideline”. Documentation of activities carried out on planned programs are reported in the “HCV Areas Management and Monitoring Report” annually.Total HCV area managed by the Company by 31 December 2019 covered 11,838.17 ha, including 3,265.12 ha in Sumatra and 8,573.05 ha in Kalimantan."
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          3/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Which processes or groups does the company use for third party verification?: RSPO Certification

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certification
            Company uses RSPO as certification within their operations - "RSPO certification status: “By the end of 2019, around 50% of the Company’s plasma estates have been RSPO and/or ISCC certified. Sampoerna Agro Group had 4 ISC Ccertified subsidiaries, includes 4 mills, 4 nucleus estates, and 11 KUDs under guidance. The total of RSPO-certified units from 7 subsidiaries are 6 mills (75% of the total number of mills), 14 nucleus estates (37% of the total), and 25 KUDs (45% of the total). “
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certification

            Which processes or groups does the company use for third party verification?: RSPO Certification
            Progress is reported within their 2019 ACOP report
          • 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
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          “Sampoerna Agro’s commitment to improving the functionsand strengthening the roles of each entity in its corporategovernance structure goes hand in hand with our compliancewith the prevailing regulations and with the standards ofvarious international certifications (ISPO, ISCC, RSPO, and ISO)." [...] The Audit Committee’s activities in 2019 are summed up asfollows: Performed discussions with legal officer of the Company mainly in relation to the development of legal issues that may materially affect company business activities, changes to government regulations and policies and company compliance with regulations pertinent to the Company’s business activities and operations, activities of the Company as a publicly listed entity, as well as all legal risks that may be faced by the Company as a result of its business activities that may have certain material impacts in the Company"
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Own mechanism - email and address for submitting a Whistleblowing Report

          Details of the mechanism: Social; Environmental
          "All reports must be submitted to WBS Team through electronic mail or written mail. (i) If submitted via electronic mail, reports must be addressed to: pengaduan@sampoernoagro.com. (ii) If submitted via mail (in sealed envelope), marked "Private and Confidential", Reports must be addressed to: Pengaduan SGRO, PT Sampoerna Agro Tbk., Sampoerna Strategic Square, North Tower, 29th floor, JL. Jend. Sudirman Kav.45, Jakarta 12930, Indonesia
        • 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 certified volume?: 624,221 tonnes

          Which certification schemes are used?: RSPO

          What is the non-certified/non-compliant volume?: 1,018,138 tonnes
          As reported within their 2019 Annual Report - "Total Fresh Fruit Bunches 1,095,801 tonnes, total RSPO certified 555,121 [...] Total crude oil production 385,080, total RSPO certified 47,850 [...] Total Crude Palm Kernel 92,378, total RSPO certified 21,250"
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          "Since November 2018, on any new clearing for oil palm planting, the Company will conduct an HCV-HCS combined assessment with the HCVRN’s ALS scheme and comply with all new planning provisions according to the rules set by Roundtable on Sustainable Palm Oil (RSPO). The implementation of HCV Areas Management and Monitoring Program is carried out based on the periods specified in the “HCV Areas Management and Monitoring Program Guideline”. Documentation of activities carried out on planned programs are reported in the “HCV Areas Management and Monitoring Report” annually."
        • 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
          Does the company use a jurisdictional monitoring mechanism?: Yes

          If so, what jurisdictions and mechanisms does the company use?: obligations according to the Minister of Environment Regulation No. 15/2017

          Does the company use a certification system?: No

          How frequently is compliance assessed?: annually
          “In 2019, the Company fulfilled its obligations according to the Minister of Environment Regulation No. 15/2017 in areas designated by the Government where peat management was to be applied. These obligations included installation of piezometers, peat subsidence, and rainfall gauges. The Company consistently obliges to provide information on monitoring results of peat areas, with contents that include: location, coordinates, elevation of compliance points, water level, rainfall, measurement times and dates, and rate of peat subsidence, to the Director General of PPKL-KLHK once every 3 months. “ [....] The Company is committed to obtaining RSPO certification for all its subsidiaries, including its plasma estates. To achieve this goal, the RSPO Certification Timebound is established, and under such scheme, 100% of the Company’s subsidiaries are to be certified by 2025. The Company consistently reports progress of RSPO certification for its subsidiaries via the Annual Communication of Progress (ACOP). “Sampoerna Agro’s commitment to improving the functionsand strengthening the roles of each entity in its corporate governance structure goes hand in hand with our compliance with the prevailing regulations and with the standards ofvarious international certifications (ISPO, ISCC, RSPO, and ISO).Starting from the top management down to the employees on the grassroots level, all have been inculcated with the spirit to execute their responsibilities alongside the principles of good corporate governance and best practices in the industry. Sampoerna Agro’s current risk management strategy and initiatives have enabled the Company to identify the risk factors in day-to-day business activities across different areas and situations. Effective strategic decisions to measure potential risks were robustly implemented through regular updating and reporting by the management to the Board of Commissioners and its supporting committees. This ensures that the Company’s business plans and prospects remain known to and supported by our shareholders."
  • Commitment strength
    18/28
    Avg. score
  • Reporting and Implementation
    19/38
    Avg. score
  • Social considerations
    11/18
    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 
Agri commodities
Segments
Producer, Processor
HQ
HQ 
Singapore
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.

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