You are here

Sourcing

Working together to deliver palm oil transformation

Securing a long-term sustainable supply of palm oil for our global operations is a priority. We know that we can only meet this significant goal through working collaboratively. Therefore, we continue to work with our NGO partner the Forest Trust (TFT), our suppliers, joint venture partners and other stakeholders to actively support the responsible development of the palm oil supply chain.

We are committed to ensuring that the palm oil used in our range of Personal Care and Home Care, Beauty and Food & Nutrition products is responsibly sourced, respects local and indigenous communities, protects animal habitats and does not contribute to deforestation.

Our priority is to achieve a fully transparent and traceable supply chain and in 2016, we achieved 100% traceability to refinery and 89% traceability back to the mill. This enhanced visibility enabled TFT to spend time on the ground with our key suppliers in Indonesia and Nigeria to identify priority issues. As part of an action plan to address issues identified on the ground, in early 2017 we funded a programme of TFT training for a third party grower for one of our core suppliers. The training was designed to embed social and environmental practices consistent with our PZ Palm Oil Promise. Working with our supplier and TFT, we will continue to monitor the outcomes and deliver additional training.

Through PZ Wilmar, our joint venture with Wilmar in Nigeria, we are talking to the National Bank of Nigeria and Heritage Bank to create access to finance for smallholders with verifiable land titles. PZ Wilmar is also contributing expertise and hybrid seedlings to smallholder farmers, through collaboration with the Nigerian Institute for Oil Palm Research. Once successful, these initiatives will enable independent farmers to revitalise old and inefficient plantations, improve their yield and meet Round Table on Sustainable Palm Oil (RSPO) criteria.

We will continue to deepen our engagement with suppliers to improve traceability and fund action in Indonesia and Nigeria to address practices which conflict with the PZ Palm Oil Promise, driving real transformation on the ground.

Working with suppliers
We enjoy working with like-minded suppliers and contractors who are diligent, responsible, honest and fair. We expect them to mirror our high ethical standards and we scrutinise how suppliers work when establishing or continuing business relationships.

We have developed robust procedures to govern how suppliers are selected, our engagement with them and how we monitor and conduct audits. For the past few years our Global Technical Team has been using the Supplier Ethical Data Exchange (SEDEX) to drive improvements and standardise how we work with suppliers. In a programme of continuous improvement we screen our supplier landscape to check SEDEX membership status and to monitor ethical and environmental compliance via this industry platform.

Health & safety update
Our business spans diverse geographies with differing levels of regulation and we are committed to delivering globally consistent and excellent standards of health & safety across all operations.

We seek to provide safe working environments for all of our employees, contractors and visitors. To that end, our operations meet local rules and regulations but also comply with our robust Group-wide standards, which invariably exceed local law. All of our sites are either accredited or seeking accreditation to the internationally recognised Occupational Health & Safety Management System OHSAS18001. We employ a team of health & safety specialists to develop, monitor and implement best practices and we empower and encourage our employees to identify and report hazards or near misses.

We regard health & safety as a fundamental business responsibility.The Group’s health & safety performance and its regulatory compliance are regularly scrutinised by the Group’s Executive Committee and the Board.

Reporting our progress
The business tracks and reports on four key health & safety performance indicators, enabling us to review our progress, identify any issues and trends and develop strategies to combat areas for improvement.

In the past year, as part of our G4B business analysis work, in line with industry best practice, we have reviewed how we analyse and report our health & safety statistics. This year we introduced the wider metric of Accident Incident Frequency Rate (AAIFR) which includes First Aid Cases (FAC). For continuity, this year we have reported both FAC and the new AAIFR measurements and from next year we will only report the AAIFR.

See the Strategic Report 2017 for additional information.