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Sustainability Report 2015 11 Global Business Overview Wilmar International Limited Sustainability Report 2015 12 Scope & Boundaries We have sought to apply the guidance of GRI G4 for the boundary settings, focusing on performance data and reporting on aspects which are most significant, as reflected in our No Deforestation, No Peat and No Exploitation Policy. We will report at policy-level on our policies with regards to crude palm oil (CPO) suppliers and fresh fruit bunches (FFB) suppliers. Whilst we now have better insights into the performance of our key suppliers, we have not included these in our metrics, as such information is subject to confidentiality agreements, and we believe that performance metrics should be disclosed by these companies themselves. Performance metrics are focused on Wilmar’s palm oil operations globally in our upstream business. We are primarily focusing on the performance of our own plantations in Indonesia and Malaysia as these are the most scrutinised among our activities and the key concern of our stakeholders. However, we have also included metrics for our African operations where these are considered material. Detailed About This Design Specific Issue Performance Policy Raised By Data On Material Commitments Stakeholders Wilmar International Limited recognises the importance Aspects of transparency and accountability in the supply chain Plantations in order to achieve our end-goal of a deforestation- and Mills in and exploitation-free palm oil industry. Indonesia, Yes Yes Yes Malaysia and Being able to trace supply flows back to palm Africa oil mills and over time to plantations is therefore a means towards that end, including knowing FFB Suppliers No Yes Yes supplier’s locations and practices on the ground. CPO Suppliers No Yes Yes Wilmar went through a process of data collection of information of crude palm oil mills to our Downstream No No Yes refineries, and fresh fruit bunch (FFB) suppliers to Operations our own mills. While obtaining GPS coordinates and/or maps of each FFB supplier is an objective, The performance data disclosed does not cover: Wilmar’s priority is to engage with mill owners who • Operations in which Wilmar has less than 51% ownership or those that the can reach their own FFB suppliers to ensure the Group does not exercise significant influence or operating control; process of transformation can spread across the • The Group’s other upstream and downstream activities outside of oil palm entire supply shed. plantations and mills (in particular suppliers and refineries), including Indonesia and Malaysia; The design for this report drew inspiration from • The Group’s unplanted areas within the plantations for environmental figures, the mapping process, using topographic lines and including those in Indonesia and Malaysia, except for conservation areas and GPS markers as a thematic device to enhance visual fire incidences. treatment. The tagline “Focused on Driving Value” reinforces Wilmar’s ongoing commitment to uphold our “No Deforestation, No Peat and No Exploitation” policy; the GPS markers are used to indicate key Reporting Period points of interest and change that Wilmar supports. This report covers performance data for the calendar years 2014-2015 as Together, these elements present a cohesive theme well as 5-year historical figures, where available. Due to the fast-moving that underpins Wilmar’s aspiration to make a positive nature of the issues described, we have also included some information impact, not just across its business operations, but on activities planned for 2014-15. We believe that this is critical to meeting also driving transformation across the industry. stakeholder expectations. Contents WilmarWilmar International International Limited Limited Sustainability Sustainability Report Report 2014/15 2015 1 Contents Chairman and CEO’S Our Approach to No Exploitation of People 3 Statement 22 Sustainability 56 and Local Communities Sustainability Rights of Workers Report Review Management and Governance 56 Communities and Structure 23 5 Indigenous People Sustainability 60 Smallholders and Certification Targets and 24 Outgrowers 61 Achievements Supply Chain and 7 Traceability 26 Supplier Engagement and Base Data Compliance 31 About Wilmar Engaging Global 63 10 Stakeholders 37 GRI Index Global Business Overview 11 Protecting Our 71 Vertically Integrated Environment Business Model 13 40 Financial About This Report Highlights 15 No Deforestation Corporate 40 77 Governance 17 Fighting The Haze and Preventing Fires Ethics and 45 EY Assurance Anti-Corruption 17 Mitigating Climate Statement Change 47 79 No New Planting On Peat Palm Oil Operations 50 Safeguarding Glossary 18 Water Quality 51 Integrated Pest 82 Management Plantations 53 and Mills 18 Refineries 20 Contents Wilmar International Limited Sustainability Report 2014/15 2 Adopt Landscape Approach Focused on Driving Change Empower Smallholders Pursue Sustainability Certification Chairman and CEO’S Statement WilmarWilmar International International Limited Limited Sustainability Sustainability Report Report 2014/15 2015 3 Chairman and CEO’S Statement Welcome to our fourth Sustainability we are close to it. By end of 2015 we assistance to improve practices and Report, which outlines our efforts and have verified the location of over 95% yields, creating an enabling environment initiatives following the launch of our No of the 840 direct mills supplying our through improved access to markets Deforestation, No Peat, No Exploitation operational facilities in Malaysia and and financing, and by working with (NDPE) policy in December of 2013. Indonesia, and the percentage of total governments to strengthen land tenure volumes traded that is considered rights. Our work with smallholders Since the launch of the policy, we have traceable hovers at around 95%. achieved a key milestone in June successfully built stronger relationships 2016. With support from Wilmar with our business partners and To support our vision to transform the and financial assistance from the stakeholders around the world through palm oil supply chain, we continue Roundtable on Sustainable Palm Oil our policy consultation, socialisation to be an active participant of multi- and implementation process, and stakeholder platforms to raise awareness I believe we can be proud of our of the importance of sustainability achievements so far. in the agribusiness industry, and are Kuok Khoon Hong spearheading numerous collaborative We have made great efforts to be efforts to achieve better socio-economic open, inclusive and transparent about and environmental outcomes in the our implementation progress and landscapes where we operate. setbacks. In January 2015, we launched our sustainability dashboard, which There are still many challenges ahead. set new standards for transparency Smallholders are an integral part of the and accountability in the agribusiness palm oil industry, and they account for industry. We also published our full list approximately 40% of the world’s palm of crude palm oil (CPO) mill sources oil production. We have made significant on our dashboard, and have been headway in working with our plasma conscientious in monitoring our supply smallholders and we are committed chain and addressing grievances raised to empowering independent small by our stakeholders. growers to improve their livelihoods and to ensure that they share in the Due to the realities of commodity benefits of oil palm development. We transport and trading, achieving 100% continue to develop projects to support traceability has not been possible; but smallholders, including technical Chairman and CEO’S Statement WilmarWilmar International International Limited Limited Sustainability Sustainability Report Report 2014/15 2015 4 (RSPO) Smallholder Support Fund, a global supply chains, such as sugar and group of more than 2,700 independent soy. We will begin exploring ways to smallholders covering 5,500 hectares tailor our NDPE policy to commodities in South Sumatra, Indonesia, received beyond palm oil over the next two the RSPO certification. This makes it the years, in consultation with our partners single largest independent smallholder and stakeholders in the industry and group in the world ever to be certified. civil society. Wilmar’s NDPE policy has catalysed I would like to round off by extending the transformation of the palm oil my great appreciation for the strong industry, with almost all our industry support which we have received from our peers having announced similar employees, partners and stakeholders sustainability policies over the last throughout our policy implementation couple of years. However, while major process. Sustainability is a continuous palm oil players have led the push journey and we can only meet our towards higher sustainability standards, aspirations through collective effort, many domestic Asian businesses are a sense of shared responsibility, and far behind and there continues to be high-level support and leadership from a market for unsustainable palm oil. industry, civil society and government. More needs to be done, perhaps by Together, I am confident that we will be NGOs or investors, to encourage these able to demonstrate that socially and small and mid-tier companies to adopt environmentally sustainable plantation NDPE sustainability commitments. capacity can be expanded to meet rising agricultural demands, while National and provincial governments reducing pressure on natural forests have a critical role to play in supporting and enhancing rural livelihoods. the implementation of companies’ sustainability commitments and ensuring
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