SUSTAINABILITY REPORT 2019 RESPONSIBLE SOURCING About This Contents Report About This Report 1 Statement from the Board 6
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SUSTAINABILITY REPORT 2019 RESPONSIBLE SOURCING About this Contents report About this report 1 Statement from the Board 6 2019 Highlights 10 Wilmar International Limited (‘Wilmar’ or ‘the Group’) has prepared this report in Targets and progress 12 accordance with the Global Reporting Initiative Sustainability Reporting Standards About Wilmar 16 (GRI Standards): Core option. The report Business overview 16 also complies with the requirements of the Singapore Exchange Securities Trading Governance and management 24 Limited (SGX-ST) Sustainability Reporting Upholding ethics and integrity 27 Guide Listing Rules 711A and 711B, and Practice Note 7.6 Sustainability Reporting Our approach to sustainability 28 Guide. Sustainability in Wilmar’s operations 33 Striving for sustainability in our supply chains 38 SCOPE AND BOUNDARIES Environmental custodianship 52 This report examines sustainability; our environmental, Managing climate change risks 55 social and governance (ESG) principles; and commitments, initiatives, and performance of our palm oil and sugar Fire monitoring and management 66 operations. Unless otherwise noted, it contains information for the financial year 1 January to 31 December 2019. Given Managing waste 70 the timing of this report, key highlights from 2020 have been included where significant. The report is intended to Increasing water efficiency and protecting waterways 73 be read in conjunction with our Annual Report 2019 and the sustainability-related disclosures on our website. Optimising chemical use 80 Championing people 84 Unless otherwise stated, the scope of our report covers: Ourdedication to human rights 86 • All of Wilmar’s global upstream operations, which Responsible employment 88 includes: Working with communities 102 – Palm oil: plantations and mills in Indonesia, Malaysia, Ghana and Nigeria. Base data 110 – Sugar: plantations and mills in Australia, Myanmar and India. GRI content index 128 • All of Wilmar’s downstream palm oil operations in Indonesia and Malaysia. Assurance statement 147 • All of Wilmar’s global downstream sugar operations, namely its refineries in Australia, New Zealand, Glossary 152 Indonesia and India. Contact us 157 2 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 3 Unless otherwise noted, the sites included The report also covers sustainability in this report are those where we have a initiatives and performance data on our shareholding above 50% with operational supply chain, where available. These control. There has been no significant include our traceability initiatives; our No change to the size, structure, or ownership Deforestation, No Peat, No Exploitation of our palm operations since the previous (NDPE) policy implementation; and supplier report. In June 2018 we increased our stake monitoring and engagement, which can in the Mumbai-based Shree Renuka Sugars be found in the supply chain section. We Limited (SRSL) to 58%. Consequently, we do not disclose key supplier information Topic Stakeholder Engagement have included SRSL in the scope of this restricted by confidentiality agreements. Topic Prioritisation report. Identification EXTERNAL ASSURANCE Having identified the relevant ESG topics, we We identified ESG topics that Ernst & Young LLP (EY) was engaged to details may be found in the Assurance prioritised those that would most significantly may be material to our business provide independent, limited assurance on Statement on pages 147-151. impact our ability to deliver long-term value and stakeholders by reviewing selected disclosures in this report. Further to our business and stakeholders. This process key industry and sustainability involved multiple forums and engagement trends and reviewing ESG topics with internal and external stakeholders, which identified by sustainability FOCUS ON ESG MATERIALITY included: reporting and rating frameworks. Materiality is an essential filter to determine Our materiality process adheres to GRI This includes the GRI Standards, the most important ESG topics in creating Standards Reporting Principles and AA1000 • Conducting internal materiality workshops the Sustainability Accounting long-term value for our business and AccountAbility Principles. This involves a with key palm business departments from Standards Board (SASB), the stakeholders. These topics influence how four-step approach, outlined in the diagram Indonesia and Malaysia. Dow Jones Sustainability Indices the Board and senior management steer below. The material ESG topics of our palm • Seeking online input from our sugar business (DJSI), and the Zoological Society our sustainability strategy, initiatives, and oil and sugar business are shown in the in Australia, New Zealand, Indonesia and of London (ZSL)’s Sustainability reporting. To ensure continued stakeholder materiality matrixes on the next page. India. Policy Transparency Toolkit confidence in our sustainability approach, • Distributing an online materiality survey to (SPOTT). we review materiality annually. Wilmar employees. • Engaging an external sustainability consultant to conduct independent interviews with external stakeholders such as our customers and suppliers. Integration Validation and Sign-off We integrated the final list of material ESG topics into Following a review our sustainability strategy by Wilmar's senior and management initiatives, management, the Board targets, and performance of Directors reviewed indicators. These topics and approved our list of also form the basis of our material ESG topics. sustainability reporting. Fertiliser application crew at Wilmar's Sabahmas estate 4 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 5 Since 2018, several business issues WILMAR’S SUSTAINABILITY VALUES Conserving forests and species (environment) Reducing climate change impacts have become increasingly important. Giving back to the people (social) Sustainable business PALM OIL MATERIALITY MATRIX 2019 Supplier / supply chain Supply chain monitoring transformation For our palm oil business, Fire & Labour conditions HCS / HCV & haze deforestation these include supply chain Child protection Corporate governance / ethics & anti-corruption Sustainability certification monitoring, supply chain Peat development Smallholder Community inclusiveness relations & transformation, fire and haze, Wildlife conservation conflicts GHG emission child protection, sustainability Health & safety certification, greenhouse gas Water impacts Pesticides & emissions, and ethics and TO EXTERNAL STAKEHOLDERS IMPACT chemical usage Investment in community infrastructure anti-corruption. MODERATE SIGNIFICANT PRIORITY IMPACT TO WILMAR'S BUSINESS SUGAR MATERIALITY MATRIX 2019 For our sugar business, these Cane burning & air quality Sustainability certification include labour-related topics, water management and use, sustainability certification, Sugar consumption Health & safety Human rights Child labour cane burning, and air quality. Traceability Labour conditions Water management & usage Water pollution Forced labour IMPACT TO EXTERNAL STAKEHOLDERS IMPACT We have also consolidated or removed several topics by subsuming management Paraquat Grievances / remedy approaches or outcomes as part of others to better capture key issues in the matrixes. MODERATE SIGNIFICANT PRIORITY IMPACT TO WILMAR'S BUSINESS 6 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 7 Statement from the Board KUOK KHOON HONG PUA SECK GUAN TEO LA-MEI KUOK KHOON EAN KUOK KHOON HUA RAYMOND GUY YOUNG Chairman and Chief Operating Officer and Executive Director, Group Legal Non-Executive and Non-Executive and Non-Executive and Chief Executive Officer Executive Director Counsel and Company Secretary Non-Independent Director Non-Independent Director Non-Independent Director In 2019, we updated our NDPE policy to incorporate detrimental to the wider adoption of sustainable the commitments, policies and procedures that practices in the sector especially amongst smaller Welcome to Wilmar International’s Wilmar adopted after 2013, and to include updated and locally-focussed companies. terminology and approaches to identifying forest areas, notably the use of the High Conservation We understand the expectations from external 2019 Sustainability Report. Value-High Carbon Stock Approach (HCV-HCSA) stakeholders, in particular our NGO stakeholders, on integrated assessment toolkit and the linked quality meeting our commitments to removing deforestation assurance processes. The updated policy strengthens from our palm oil supply chain. We have risen to It has been ten years since the publication of our first Sustainability Report in 2009. many sustainability commitments that were this challenge since we pledged to do so in 2014 We started sustainability reporting years before it became a regulatory requirement in introduced post 2013, notably the deforestation as a signatory to the New York Declaration on Singapore, as we saw that as critical to strengthening transparency and accountability cut-off date, recovery plan requirements, suspension Forests. Through active monitoring of our estates for our stakeholders. approach, our Human Rights Framework and and suppliers, and then following through where Women’s Charter published in 2019, enhanced health and safety responsibilities, and more robust whistleblowing and grievance mechanisms. Over the last decade, sustainability