IOI Loders Croklaan – Green Tigers Index Rankings

SCORE

61.5

Through its IOI Loders Croklaan affiliate, IOI Group is one of the world’s largest palm oil players, controlling an estimated 10 percent plus of global palm oil trade. In addition to purchasing from hundreds of third-party supplier mills, the company also operates its own plantations and participates in a number of palm oil joint ventures. The company’s clearance of orangutan habitat, peatland, and forests has long pegged it as one of the least responsible actors in the palm oil industry,58 and it was named “the worst company you’ve never heard of” by Forest Heroes in a public campaign.However, in November 2014, IOI announced a “No Deforestation, No Peat, No Exploitation” policy for its global palm oil supply chain. The company said that the policy would apply to all its third party suppliers, subsidiaries, and joint ventures in which it had management control. Advocates both praised the move, and at the same time warned that they would be closely scrutinizing implementation efforts, given the company’s recent history of deforestation and serious labor and human rights issues. In addition, although IOI has said in writing that the policy covers both IOI Loders Croklaan and IOI Group, IOI Group has yet to formally adopt the policy, and also has not announced a credible implementation partner or concrete implementation plans.

IOI’s new policy may make a comprehensive commitment by Indonesian palm oil grower Bumitama more likely. Bumitama, which is 31% owned by IOI, has stated that it is working to launch its own forest conservation policy to be released soon.

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.

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.

NO

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.

YES

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.

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.