Wilmar – Green Tigers Index Rankings

 

 

SCORE

74.5

Wilmar International controls 45 percent of the global palm oil trade, is the largest buyer of soy from Latin America, and is one of the world’s largest sugar companies. In December 2013, it announced a comprehensive “No Deforestation, No Peat, No Exploitation” policy that required its suppliers to immediately cease any development of forests, including HCV and HCS lands, and peat of any depth.

Wilmar has partnered with The Forest Trust (TFT) to implement the policy; they issued their fourth and latest implementation progress report in December 2014. Wilmar has already cut off several suppliers who were found to be continuing to conduct deforestation or to have committed serious human rights abuses following the policy announcement. With more than 800 suppliers, however, Wilmar has inevitably faced serious challenges. Suppliers like Astra Agro Lestari have engaged in extensive land clearing; the independent Indonesian organization Greenomics has found that Kencana Agri, a company 20 percent owned by Wilmar, has recently engaged in deforestation in Sulawesi.

Nonetheless, there are clear signs of progress in eliminating deforestation from Wilmar’s enormous supply chain. The company is currently conducting high carbon stock assessments and other analyses of its supply chain both in Asia and Africa. In January 2014, Wilmar took a major step toward making its supply chain open and transparent to the public by becoming the first trader to establish an online dashboard showing information about all of the company’s palm oil suppliers in Indonesia and Malaysia.

Importantly, Wilmar’s policy applies to all the commodities in which it trades, including soy and sugar, though Wilmar needs to accelerate implementation for soy. While there are challenges, Wilmar’s policy represents a major step forward toward global deforestation-free commodity production and trade, and the company is leading the industry toward responsible production.

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.

YES

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.

NO

2.B

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

YES

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.

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.