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NPOIPL is committed to produce palm oil in an ethical, environmentally sustainable and socially responsible manner as embodied in our responsible production requirements that aim to deliver palm oil that is produced in accordance with “No Deforestation, No Peat and No Exploitation” (NDPE) practices. Our time-bound roadmap outlines the four pillars that have been the cornerstones of our Palm Policy, guiding its implementation and delivering impact: traceability, supplier engagement, sustainable plantations and smallholder programs.
Our long term development objectives is to alleviate the living standard and raise the economic barometer of the villages we operate. We will work hand in hand with landowners and other stakeholders. We will closely collaborate with the communities, governments, non-governmental organizations, academia and others to achieve our commitments. We will participate in industry and multi-stakeholder forums, and engage with governments to achieve lasting sector-wide sustainability impacts.
NPOIPL commits to a transparent, traceable and sustainable palm oil supply chain that:
1. Protects high conservation value (HCV) areas, high carbon stock (HCS) forests and peatlands regardless of depth.
2. Respects and upholds the rights of workers, indigenous peoples and local communities.
3. Enables smallholders to become successful businesspeople, improving their livelihoods through responsible production, maximizing yields and improving quality.
4. Upholds high standards of transparency through reporting of traceability, timebound implementation plans, resolving grievances and achieving third party verified policy compliance.
The NPOIPL Code of Conduct1, Policy on Forests2, Commitment on Human Rights3 and our Supplier Code of Conduct4 are key pillars of our Palm Policy.
This Policy applies to all the physical palm oil products that NPOIPL produces, trades and processes. We work with our direct and indirect suppliers across all their operations, governments, non-governmental organizations, industry associations and other stakeholders to implement this policy and continuously drive compliance.
1.1. Implement the combined HCV - HCSA-FPIC methodologies to identify areas for protection, preventing clearance of ecologically and socially important forests, habitats, hydrological systems, community and customary lands, and to determine eligible new planting areas6.
1.2. Require and partner with resource owners to implement HCV and HCSA in our own operations and supply chains.
1.3. Support efforts to refine and improve implementation of HCSA to ensure it is a robust, scientifically-sound, socially, politically and economically acceptable approach to achieving a deforestation free supply chain.
1.4. Commit to and require our operations management not to develop peat lands, defined as soil containing greater than 65% organic matter, regardless of depth.
1.5. Utilize the RSPO Manual on Best Management Practices (BMPs) for existing oil palm cultivation on peat and Protocol for Oil Palm Independent Smallholders for Sustainable and Responsible Management of Peat Areas (2017) as primary guidance for optimal peat management. Development taking place without prior implementation of this methodology will be investigated through NPOIPL’s grievance process and may require remedial action.
1.6. Work with experts in developing and implementing guidelines and models for conservation, rehabilitation or alternative uses in areas unsuitable for development.
1.7. Work to protect critical peat domes and forests within our sourcing regions facing threats of developments through the adoption of landscape approaches and in partnership with producers, governments and communities.
1.8. Maintain our long-standing no-burning commitment which includes the preparation of new plantings, re-plantings or any other developments.
1.9. Identify and report towards progressively reducing greenhouse gas (GHG) emissions from our own operations where relevant.
1.10. Use appropriate tools to monitor and regularly report progress, such as the RSPO endorsed Palm GHG tool or its equivalent.
We participate in the UN Global Compact and take guidance from the UN Guiding Principles on Business and Human Rights and the International Labor Organization Fundamental Principles and Rights at Work. These frameworks call on us to engage in due diligence and take action to remedy issues where\ identified in our workplaces, supply chains and extended communities.
2.1 Respect the rights of indigenous and local communities. Concerning the utilization of lands to which they hold legal, communal or customary rights, all new developments where appropriate, must undergo a social impact assessment and implement a legal process prior to commencement of activities, in a manner that is locally relevant to the affected communities.
2.2 Support the Food and Agriculture Organization’s Voluntary Guidelines on the Responsible Governance of Tenure10 and will engage stakeholders in the countries which we operate in to implement the guidelines.
2.3 Prohibit the use of human trafficking, illegal, abusive, forced or child labor11 within our operations anywhere in the world and work with our suppliers to prevent and address such practices across the supply chain. In cases where exploitative practices are identified, we will determine remedial actions to ensure appropriate, timely and transparent responses.
2.4 Respect and protect human rights including rights of all workers regardless of age, ethnicity, gender, language, local customs, physical ability, race, socio-economic status, religion, sexual orientation, gender identity and expression, contract status or migration12.
2.5 Uphold the right to freedom of association and recognize the right to collective bargaining. We will not discriminate against worker trade union representatives.
2.6 Commit to working with our employees, contractors, suppliers, independent organizations and governments to uphold an ethical and transparent recruitment process whether carried out directly or indirectly through sub-contractors. We prohibit any form of unlawful retention of identity documents.
2.7 Require workers, including those managed by sub-contractors, to be paid a wage equal to or exceeding the legal minimum wage. Only lawful deductions can be made and these must be socialized with workers in a manner they comprehend.
2.8 In line with RSPO standards conduct a living wage assessment, initially in our oil palm plantation operations, based on credible methodologies with the goal of ensuring workers have access to decent living wages.
2.9 Commit to upholding a responsible workplace by taking steps to protect all employees and contractors from occupational health and safety hazards. We will also ensure adequate treatment and/or compensation is provided to workers in cases of work-related illness and injury. We expect our suppliers to do likewise.
2.10 We will ensure that conditions of work - working hours, rest days and overtime comply with the law and collective agreements.
2.11 Prohibit harassment, intimidation and the use of violence by anyone associated with NPOIPL during their work or while performing any activity on behalf of NPOIPL. This applies to all employees, suppliers, third parties and contractors. NPOIPL will not tolerate retaliation against anyone who, in good faith, raises a concern or participates in an investigation or whistleblowing.
2.12 Should incidents be identified, take necessary preventive and corrective action, including but not limited to disciplinary or commercial action, such as supporting independent investigations, mediation efforts, and cooperating with law enforcement and international bodies, should such incidents be identified. We will also take steps to protect the anonymity of individuals or groups reporting through our grievance procedure.
2.13 We expect our suppliers to establish an accessible and transparent grievance procedure for workers, individuals, communities and civil society impacted by their supply chain operations to resolve complaints.
3.1 Publish regular reports, including an annual report, on key metrics, time-bound implementation plans, progress and impacts.
3.2 Conduct due diligence of new suppliers, assess risk, and proactively monitor our supply chains and sourcing landscapes using tools such as spatial assessments and social risk methodologies.
3.3 Work with parties to resolve complaints and conflicts relating to non-compliance of this Palm Policy through an open, accessible, transparent and consultative process. NPOIPL’s Palm Grievance Procedure provides a structured and timely approach to ensure external stakeholder grievances are constructively engaged and clear milestones are developed towards resolution of non-compliances. We regularly review our grievance process and commit to continuous improvement of our procedure.
3.4 We will work with credible independent third parties to verify compliance of our suppliers with this Palm Policy, and to audit and evaluate the implementation and performance of this Policy across our supply chain.
NPOIPL’s commitment to building a transparent, traceable and sustainable palm oil supply chain is effective immediately. We continue to actively work with suppliers and establish Standard Operating Procedures to raise awareness and build capacity to guide implementation of this Policy. We expect all suppliers to transparently demonstrate progress against this Palm Policy. Where gaps are identified, we will transparently implement our grievance procedure to ensure compliance.