Wilmar – Green Tigers Index Rankings

 

 

2018 SCORE

2016 SCORE

77

74.5

Wilmar International controls a 327,036 ha landbank and 45 percent of the global palm oil trade. The U.S. company ADM owns 25 percent of Wilmar’s publicly-traded shares. ADM’s CEO sits on Wilmar’s Board. Wilmar also owns 20 percent of Kencana Agri, another Singapore-based palm oil company whose landbank is 187,281 ha. Wilmar scored 77 in 2018 versus 74.5 in 2016

On the one hand, Wilmar is one of the largest buyers of soy from Latin America and is one of the world’s largest sugar companies. In December 2013, it announced a comprehensive NDPE policy that required its suppliers to immediately cease any development of forests, including High Conservation Value areas and High Carbon Stock forests, and peat of any depth. Then, in January 2014, Wilmar took a major step towards making its supply chain transparent to the public by becoming the first trader to establish an online dashboard showing information about all the company’s palm oil suppliers in Indonesia and Malaysia. Finally, Wilmar’s policy applies to all the commodities in which it trades, including soy and sugar, though Wilmar needs to accelerate implementation for soy. Wilmar has partnered with The Forest Trust to implement its policy.

But on the other hand, Kencana Agri, 20 percent owned by Wilmar with a shared board member, has recently engaged in deforestation in Sulawesi. And recently, in July 2018, the co-founder of Wilmar, Martua Sitorus, and Wilmar’s country Head of Indonesia and Sitorus’ brother-in-law, Hendri Saksti, both resigned. Sitorus was Wilmar’s Chief Operating Officer from July 2006 to June 2013 and its Executive Chairman from July 2013 to March 2017. Previously, in June 2018, Greenpeace and Chain Reaction Research both published reports linking Wilmar’s executives to ongoing deforestation via direct and material financial relationships.

In 2014, Wilmar endorsed the New York Declaration on Forests.

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.

YES

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.

Full points are given if this date is by 2018. Half points are given if the date is 2019 or 2020. No points are given if the date is after 2020, no date is given or if the company does not commit to full traceability to plantations including for its third party suppliers.

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.

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.