Bumitama Agri – Green Tigers Index Rankings

SCORE

51

Bumitama Agri is a rapidly growing palm oil producer that is majority owned by the Hariyanto family, with a significant minority stake owned by the Lee family’s IOI Group (see above). Bumitama has repeatedly been found to be engaged in deforestation, including on orangutan habitat, as well as deforestation of peatland. As a result, it has drawn perhaps more scrutiny from NGOs and consumer companies than perhaps any other palm oil grower. Bumitama Agri—PT Gemilang Makmur Subur and PT Gunajaya Harapan Lestari—are not owned by Bumitama Agri itself but by the Hariyanto family. Bumitama has engaged in deforestation and illegal operations across many of its plantations. For instance, the company’s Gemilang Makmur Subur plantation in Central Kalimantan was found to be operating without any of the critically required national permits in violation of Indonesia’s Forestry Act, the Environmental Act, and the Plantation Act. All in all, Bumitama has deforested an estimated 20,000 hectares directly.

In addition, Bumitama operates joint ventures with IOI Group members such as the Bumi Sawit Sejhatera (BSS)—see above. The RSPO Complaints Panel confirmed that the company had been clearing land before carrying out the necessary HCV assessments. The panel noted that the noncompliant practices of Bumitama might be “systemic in nature.” More recently, Bumitama has promised repeatedly to stop deforestation on its plantations, and it has set aside 11,000 hectares for conservation. It has also started working with the HCS assessor Ata Marie to determine what areas are eligible for development and what should be protected. As a result of this HCS pilot study, Bumitama announced in September 2014 that it would protect more than 13,000 ha of forest across five subsidiaries. However, the policy does not apply to all subsidiaries, or to third party suppliers. In addition, NGO reports find that it has continued to operate a palm oil plantation on which more than 7,000 ha of land were cleared in clear violation of a July, 2014 Indonesian Supreme Court order.54 Although Bumitama’s HCS announcement marks an important step forward, the company still has many sustainability issues to address. It has told customers and the public that it is working to have a comprehensive approach in place by the end of 2014.

POLICY

1.A

The company has a forest policy for palm oil produced, traded or processed that applies to its global operations including all subsidiaries and joint ventures. The company also requires its suppliers to follow the policy.

HALF

1.B

The policy excludes the sourcing of  raw materials or products originating from natural forests including both primary and secondary forests.

NO

1.C

The policy specifically excludes the sourcing of raw materials or products originating from High conservation Value (HCV) areas.

YES

1.D

The palm oil policy specifically excludes development on peat soil regardless of depth.

YES

1.E

The palm oil policy excludes the sourcing  of raw materials and products from developments in High Carbon Stock (HCS) Forests.

YES

1.F

The palm oil policy excludes the sourcing of raw materials and products from lands where burning has been used to clear vegetation.

YES

1.G

The company has pledged to use (or uses) a third party for compliance verification of its policy.

NO

1.H

The company has developed and published a non-compliance procedure that outlines thresholds for the suspension and/or cancellation of contracts with suppliers in breach of the policy.

NO

1.I

The company has committed to developing a traceability system that documents palm oil back to the plantation of origin within its entire supply chain.

YES

1.J

The company specifically commits (and requires its suppliers to do so) to respect the rights of Indigenous and local communities to give or withhold their Free, Prior and Informed Consent (FPIC) to development on their lands.

YES

1.K

The company has programs that support small holders in its supply chain with support that goes beyond purely financial considerations and the palm oil supply chain but addresses longer term development.

YES

1.L

The company has policy to reduce the environmental and health impacts of chemical pesticides and/or fertilizers.

YES

IMPLEMENTATION & TRANSPARENCY

2.A

Date by which the company aims to achieve full traceability to plantation for its entire supply chain.

CURRENT

2.B

The company or the relevant third party publishes detailed processes and results of the policy verification assessments.

NO

2.C

The company has established and published an accessible and transparent grievance and dispute resolution mechanism.

NO

2.D

The company reports on its progress towards meeting its policy goals at least annually against measurable indicators.

YES

2.E

The company has published the  names or  detailed locations (that allow for coordinates to be obtained) of all palm oil mills in its supply chain.

NO

3.A

Points are deducted for the following (occurring since January 1, 2015). There is public evidence that since January 1, 2015 the company has in its own operations not met criteria 1.C, 1.D, 1.E or 1.J (or uses palm oil from protected areas). Or the company has sourced from suppliers that have not met these criteria. Or the company had its RSPO license revoked or suspended since that date. Or there is evidence of significant workers rights violations or social conflicts.

YES

See all of the rankings of major palm oil and soy companies on their adherence to forest conservation requirements on the Green Tiger and Green Jaguar index.