Sustainable Palm Oil Sourcing Policy
Patum Vegetable Oil Co., Ltd is committed to developing the palm oil and palm oil industry to achieve economic sustainability along with environmental and social stewardship by recognizing the importance of stakeholder participation throughout the supply chain, especially in the upstream sector. Sustainable Palm Oil Sourcing Policy was set on the objective to support and promote oil palm farmers, millers, oil collectors and other stakeholders to be able to operate in a sustainable manner focusing on Crude Palm Oil (CPO) and Crude Palm Kernel Oil (CPKO). For clarity, the policy details are as follows:
1) Environmental Policy
The company pays great attention to environmental protection and natural resource conservation and focuses on these following areas.
- No Deforestation
Crude Palm Oil (CPO) and Palm Kernel Oil (CPKO) shall not be produced from oil palm plantations which have caused deforestation. The company does not support palm oil production which caused deforestation. January 1, 2018 is applied as cut-off date.
- High Conservation Values: HCVs
Palm oil plantation in areas with potential of High Conservation Values (HCVs), which are areas of biological, ecological, social or cultural value, must be properly assessed and evaluated by experts together with stakeholders to establish appropriate conservation guidelines as well as impact monitoring plan.
- High Carbon Stock: HCS
Oil palm plantations must not be proceeded on High Carbon Stock (HCS) areas, the areas with higher level of carbon sequestration e.g. High Density Forest, Medium Density Forest, Low Density Forest, Young Regenerating Forest. For new-planted oil palm plantations, High Carbon Stock Approach (HCSA) assessment needs to be taken prior to planting with appropriate measures.
- Greenhouse Gas: GHGs
The company supports the extraction mills to manage their operations towards pollution reduction and participate in activities with farmers to improve palm oil production to the direction that helps reduce GHG (Greenhouse Gas) emissions.
- No Development on Peat
Cultivation of oil palm on peatlands is unacceptable due to the fact that peatlands can absorb, store carbon dioxide and sustain a high range of habitats which is an important area of biodiversity including plant and animal species. For existing plantations on peatlands Best Management Practices (BMPs) for palm oil cultivation on peatlands should be applied especially with regard to water management, zero burning, fertilizer application, soil subsidence and ground cover plants.
- Zero Burning
The company supports the extraction mills to formulate a policy to support and participate in activities with farmers to develop guidelines to avoid the use of fire in their farm practices in all cases.
2) Social Policy
The company has the policy on labor that is in line with national and all relevant local laws, including supporting palm oil mills, oil collectors to have consistent practices as follows:
- Human Rights
- Respect human rights without any violation or discrimination against anyone’s rights. The company believes in the principle, “Everyone should have freedom are equality, we shall respect the basic rights of individuals”. We respect and accept the rights of all employees, including temporary contract and foreign workers. Consequently, the company does not accept discrimination on national origin, nationality, religion, sexual orientation, marital status, gender identity, age, disability, social status, or political affiliation. Respect the equality of each person. Therefore, standard such as TLS8001 or Sedex SMETA has been implemented based on the principle of International principles related to human rights and has been applied according to the International Labor Organization’s international labor standards (ILO). Moreover, the United Nations Framework and Guiding Principles on Business and Human Rights (UNGP) has been adopted by adhering to three principles, namely, protection of human rights (Protect), respect for human rights (Respect), and Remedy.
- Respect and accept the rights of all employees, including temporary contract and foreign workers.
- Comply with all relevant labor laws and legislations;
- Establish and maintain working environment and conditions of employment to ensure that all employees are treated equally and fairly. The language which are understandable by all workers applied in all related documents including methodology guidelines for consideration of wages, welfare and career advancement with fair consideration by the principle of no discrimination based on any ground such as gender, gender expression or sexual orientation, age, language, religion, culture, disability, and economic status.
- Deny any form of racial discrimination, abuse, harassment and intimidation.
- Ensure that proper complaint mechanisms are in place for responding to employees’ complaints of discrimination.
- Prohibit forced, bonded and child labor;
- Avoid risk-to-health working condition for vulnerable groups of workers such as women or pregnant women by taking into account the safety of all labors considering suitable working condition that is not exposed to danger or at risk of adverse health effects.
- Provide freedom of labor to claims for various labor rights as appropriate.
- Provide freedom of association for all workers as long as it does not contravene business ethics or affects company’s image or economic performance. If workers are associated with political groups shall be deemed to be decisions based on individual rights. The company does not have any policy of support such a formation at any level.
- Land Right
- Respect land right, ownership and right to use, both legally and customarily which has no conflict to the local community;
- Commit to the principle of Free, Prior, and Informed Consent (FPIC) process with local communities in order to make proper agreed decision to operate on lands.
- Oil Palm Farmers
Support group formation of smallholders in the supply chain to strengthen and Sustainability Palm Oil.
3) Traceability Policy
The company gathers relevant information of CPO and CPKO suppliers in order to make raw materials traceable. The objective is to understand supply chain practices and be able to exercise sustainable measures properly.
4) Farmer Promotion and Smallholder Farmers Entering Sustainable Processes
The company supports oil palm farmers, particularly smallholders, together with extraction mills and collectors in developing sustainability in their production. The aim is to raise awareness of the importance of farmers in the supply chain and to generate appropriate principles and guidelines for sustainable oil palm and palm oil production.
5) Complaints and Grievances
The company realizes the importance of stakeholders throughout the supply chain to our business operations. Any complaint and conflict from stakeholders are well taken in all channels through an open, transparent, and consultative process. The correction is published to the public within appropriate time period.