Golden Agri Resources – Green Tigers Index Rankings

 

SCORE

71

Company insiders and independent authorities have noted that there have been repeated problems in the company’s implementation. After GAR extended its Forest Conservation Policy to its third party suppliers in February, 2014, it has continued to do business with producers that other companies with No Deforestation policies have suspended – leading to questions about the sincerity of its commitment to this aspect of its responsibility policy as well.

Finally, insiders report that GAR has not taken seriously the joint industry initiative through the Indonesian Chamber of Commerce (Kadin) to support the Indonesian government’s efforts to improve forest governance, even as other companies have given it serious backing. In addition, in May 2015, Greenomics published a report showing that GAR has been extensively clearing HCS forests in Papua, further evidence of the company’s lack of commitment to its stated sustainability policies.

GAR’s regression comes despite tremendous overall progress in the industry. Its competitors Wilmar International, Cargill, Musim Mas, and Bunge have all adopted and are implementing No Deforestation policies; although some of these companies have faced challenges, none of those challenges have reached the level reported for GAR.

Forest Heroes has communicated at the highest levels the need for GAR to take immediate and substantial remedial steps, and encouraged customers and investors to immediately and seriously reevaluate any commercial relationships with GAR. The company only adopted its initial Forest Conservation Policy after Nestle, Burger King, BNP Paribas and others terminated relationships with the company. Unfortunately, it seems the company requires a dose of that harshest of medicines again.

Forest Heroes continues to monitor GAR’s performance.

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.

YES

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.

HALF

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.

HALF

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.

2020

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.

HALF

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.

YES

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.

HALF

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.