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 has become a operations. In 2015, we became the first palm oil mainstream topic and a critical part of any successful company to have a publicly accessible grievance As the Board, we are kept abreast of all the business. To us, sustainability is core to our business procedure that enables any external stakeholder To us, efforts that the Group has put in to achieve our and commercial strategies, and we have never to raise issues relating to our operations or those sustainability commitments, and in some areas, we shied away from taking the lead in pushing the of our suppliers. We published our supplier palm have challenged ourselves to do more than other sustainability boundaries of our own sustainability performance, oil mill list in the same year amid initial reservations industry players. We agree that our size, influence, and that of the wider palm oil industry. from the palm oil industry. And in 2018, after a and global reach bestow on us a critical obligation year-long review of our action taken on suppliers is core to our to be sustainability frontrunners. However, the In 2008, we achieved our first Roundtable on that continue to deforest, we adopted a clear cut- industry will never be able to transform without Sustainable Palm Oil (RSPO) certification and with off date of 31 December 2015 for deforestation the commitment from all players including smaller business and that, the internal adoption and implementation of (including requirements for recovery plans to account companies, and without giving recognition where sustainability best practices. In 2013, we were the for deforestation from the cut-off date), and a sustainability progress has been made. We convey first in the industry to adopt a No Deforestation, suspension approach whereby suppliers verified commercial our concern that the ever increasing support No Peat, and No Exploitation (NDPE) policy for to be deforesting will be immediately suspended for blanket palm oil boycotts may prove to be our entire supply chain, in addition to our own at group level. strategies 8 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 9

LIM SIONG GUAN TAY KAH CHYE KWAH THIAM HOCK KISHORE MAHBUBANI WEIJIAN SHAN TEO SIONG SENG SOH GIM TEIK JUAN RICARDO LUCIANO Non-Executive and Lead Non-Executive and Non-Executive and Non-Executive and Non-Executive and Non-Executive and Non-Executive and Alternate Director to Mr Independent Director Independent Director Independent Director Independent Director Independent Director Independent Director Independent Director Raymond Guy Young

deforestation non-compliance is found, we have progress. For example, we have actively engaged the rural communities we operate in, and we give its grip, many of our employees, communities, and removed 1.5 million hectares of non-compliant oil with the Tropical Forest Alliance, and more local back and support these communities through our supply chains are struggling with disruption and palm plantation areas from our supply chain. We issue-based partnerships like the Palm Oil and Community Support Programme that provides hardship. Faced with an unprecedented crisis, we therefore have confidence that we are on the right NGO Alliance (PONGO), the Fire Free Alliance, funding for community health and safety, youth have committed to providing aid in the form of track to removing deforestation from our palm oil and ongoing business-to-business cooperation with education and skills training, environmental efforts, medical equipment, food supplies as well as financial supply chain by 2020. suppliers and customers to support smallholder and and other youth and community initiatives. contributions in China, Ghana, India, Indonesia, community development. In our sugar business, Malaysia, and Nigeria and will continue to support Some of our most impactful achievements have we have been members of Bonsucro since 2014 We continue to adapt our operations to help the ongoing fight against COVID-19. More than centred on our supply chain. To date, over 90% and have been actively pursuing certification and mitigate climate change. All our palm oil and sugar ever, as members of the agriculture sector, we play of our group-level palm oil suppliers have either participating in the standard’s review. In Queensland, mills generate renewable energy from agriculture our role in supporting rural communities seriously provided a written confirmation of their commitment Australia, we also contribute to various regional by-products such as palm kernel shells, palm fibre, by continuing to provide jobs and stable incomes to to our NDPE policy, published their equivalent cane grower agronomic support organisations, and bagasse. In both Australia and India, our sugar farming communities, critical access to healthcare, policy, reported on NDPE compliance via our such as the Herbert Cane Productivity Services mills generate enough power annually to not only and being a core partner to local governments supplier reporting tool platform, or become a Ltd. where we serve on the Board. We also work meet our own energy needs, but also export enough through infrastructure development and assistance. member of the RSPO. This is a positive sign that with Solidaridad Asia in India to roll out a series of surplus electricity to the national grid to power the We would like to take this opportunity to extend the palm oil industry is reaffirming the need to training programmes on best management practices equivalent of more than 110,000 homes a year. our profound sympathies to all those who have adopt sustainable practices. For those that do not for cane growers supplying our sugar mills in order In India, we are encouraging our cane farmers to been directly or indirectly affected during this meet our sustainability requirements, we are not to support the sustainability of smallholders. switch from chemical fertilisers to organic composts deeply troubling time and to express our thanks afraid of taking action and suspending companies to minimise the impact of salt pan formation on the and appreciation to frontline staff all over the world at group level. However our approach is also a On the social front, we remain committed to soil while reducing our carbon impact. Meanwhile for their efforts in dealing with this pandemic. supportive one, and we continue to engage and protecting and enhancing human rights, as well we are continuing to research on and develop provide guidance to assist suppliers to meet NDPE as supporting the local communities in which we higher-yielding oil palm seedlings and we are In conclusion, we would like to express our heartfelt compliance. In our sugar business, we have started operate. Wilmar works in partnership with external working with oil palm smallholders to replant with gratitude to all our partners and stakeholders who to develop our supplier programme which will organisations to support improvements to the lives higher yield varietals to help reduce the pressure have supported our journey towards a sustainable initially focus on traceability. In Australia, we continue of our local communities and smallholders. Our of expansion of oil palm into potential forest areas. palm oil and sugar industry and our objective to maintain 100% traceability to originating sugar ethos is guided by the United Nations Sustainable to provide sustainable products whilst sharing mill, while consolidating data and working towards Development Goals, particularly in support of Given the timing of this report, it would be remiss of the benefits of our success with the communities reporting our traceability to mill for the entire sugar women, and children’s education and protection. us not to address one of the biggest challenges in around us. business in 2020. Our newly adopted Women’s Charter sets out modern times. As the COVID-19 pandemic tightens guidance in safeguarding women’s rights and We continue our partnerships with multi-stakeholders creating an equitable and inclusive workplace for to expand our sustainability efforts at the grassroot, our female employees. We also continue to work national and international levels. Since becoming a with suppliers, smallholders, and local communities Board of Directors member of the RSPO in 2005, we have supported to ensure that children have access to good quality Wilmar International Limited ongoing multi-stakeholder dialogue at all levels. education and are never engaged in plantation 28 May 2020 Besides the RSPO, Wilmar’s active involvement or other work. Our sugar mills in Queensland, in broader initiatives has achieved commendable Australia, have operated for over 100 years in 10 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 11

2019 Highlights

STRENGTHENED CERTIFICATION & GHG POLICIES AND ACCREDITATION CONSERVATION EMISSIONS GUIDANCE

Updated NDPE policy with clearer 234,396 ha RSPO certified (77% of 31,375 ha conserved at oil palm 51.5% reduction in Group net guidance on our no deforestation and certifiable area). This includes scheme estates—about 10% of total landbank emissions at Wilmar-owned RSPO- no peat policy smallholder areas certified mills 826 ha conserved at sugar estates and 571,596 MT CO e total emissions Updated Grievance Procedure 1 mill completed RSPO certification, mills 2 including new re-entry criteria totalling 26 mills (72% of total mills) avoided due to methane captures

New No Exploitation Protocol being 882,257* MT RSPO-certified CPO/PK developed to support the Grievance Procedure All Wilmar-owned downstream facilities in Indonesia and Malaysia1 are New Human Rights Framework RSPO SCCS certified (100%) EMPLOYEES & CHILDREN AT New Women’s Charter 55.6% of planted area in Australia WORKERS PLANTATIONS is Bonsucro certified

Women’s Working Groups established 143* crèches built to cater for 4,655 in 100% of countries with palm oil children operations 92.2% of school-going age children SUPPLY attend schools CHAIN

90% supplier groups Supplier Group 90%* of grievance cases have either: Compliance Programme closed monitors >20* million ha RECOGNITIONS & provided written ACHIEVEMENTS confirmation to Covering 509 parent 26 supplier groups Wilmar’s NDPE policy groups with more than suspended since 2015, 3,000 plantation units including 22 due to published their own deforestation Ranked 5th of 99 on ZSL SPOTT Recognised by ASEAN-CSR Network NDPE policies Spanning Indonesia, for the 2019 palm oil assessment on Human Rights Disclosure Malaysia, Papua New 1.5 million ha removed for reporting on human rights reported NDPE Guinea, Cambodia, from the supply chain compliance via our Myanmar and Thailand Recognised by the Global Child Forum Recognised by RSPO for excellence in SRT Benchmark study as a global achiever Human Rights and Labour Initiatives are a member of the in children’s rights in business RSPO

1 Covering all refineries, oleochemicals, biodiesel and specialty fats plants within scope of this report in Indonesia and Malaysia * EY has performed limited assurance procedures on this figure 12 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 13

LINK TO MATERIAL ISSUE TARGET PROGRESS AS OF 31 TARGETS Targets and progress LINK TO SDG(S) YEAR DEC 2019 CERTIFICATION, TRACEABILITY AND GRIEVANCES *Continued

Wilmar is committed to the United Nations (UN) global Sustainable Development Goals Complete ISPO Sustainability certification 2023 ON TRACK certification (SDGs) and have identified five that are pertinent to our business. We have combined One mill received ISPO certification audits for our ten in 2019. Three more mills together our targets with the five SDGs, and the relevant material topics within this report. independent palm with another co-operative6 have 5 oil mills in Indonesia received confirmation in March 2020 of their successful ISPO audit pending certificate handover LINK TO MATERIAL ISSUE TARGET PROGRESS AS OF 31 ceremony. TARGETS LINK TO SDG(S) YEAR DEC 2019

CERTIFICATION, TRACEABILITY AND GRIEVANCES Achieve 100% Supply chain monitoring, 2022 ON TRACK traceability to palm supply chain transformation 96.2% of CPO and PKO Sustainability certification Target 2 Achieve 100% MSPO ON TRACK oil mills traceable to mill. certification for all updated to We achieved our initial target in our palm oil Malaysia 2020 2019 when our ninth mill received mills and estates MSPO certification. Wilmar has since acquired a new estate, Laba Utama, Labour conditions, supply 2020 which will undergo certification in Establish a No ON TRACK chain monitoring, supply 2020. Exploitation Protocol To be completed by Q3. to support our chain transformation Grievance Procedure 8, 12 Achieve RSPO Sustainability certification 2020 ON TRACK certification for all (refineries) All but 14 refineries are RSPO our own palm oil certified. These remaining refineries 3 operations in China are expected to be certified in Q24. Achieve a 100% Supply chain transformation Ongoing TARGET ACHIEVED response rate to all Since 2015, a 100% response rate 2023 ON TRACK grievances raised via has been consistently achieved. Wilmar’s Grievance (mills) One mill completed RSPO re- Procedure certification in 2019 totalling 26 mills (72% of total mills). An audit for another mill was performed in ENVIRONMENT September 2019 and achieved certification in March 2020. Complete GHG emissions 2020 ON TRACK construction of 25 One additional methane capture Timebound plan: methane captures at plant was completed in 2019, 2020: two mills in Indonesia CPO mills totalling 24 facilities. Construction of 2021: one mill in Malaysia the remaining facility was completed 2022: one mill in Nigeria in February 2020. 2023: six mills in Indonesia

Sustainability certification 2023 Achieve ISPO ON TRACK Reduce GHG GHG emissions 2023 NEEDS FURTHER WORK certification for all Three mills achieved ISPO emissions intensity Our 2019 GHG emissions intensity our own palm oil certification in 2019, totalling 11 by 15% for all our was 0.77 MT CO e/MT CPO due mills in Indonesia 2 mills (32%). palm oil mills from to a more conservative calculation our 2016 baseline of approach taken for mill effluent

0.82 MT CO2e/MT emissions. CPO (based on GHG Protocol)

2 Although our Malaysian Suburmas mill in Malaysia falls outside the scope of this report (because of Wilmar having less than 50% operational control), we have included it as MSPO certification covers any mill with operational control. 5 3 Following RSPO Principles and Criteria (P&C) for palm oil mills and RSPO Supply Chain Certification Standard (SCCS) for refineries that process Wilmar operates ten independent mills, as defined by ISPO standard requirements; nine independent mills as defined by RSPO standard requirements. palm oil products only. Agrindo Indah Persada 2 is considered independent under ISPO but not RSPO. 6 4 This covers refineries in countries falling outside the scope of this report. ISPO certification is only possible for independent mills when at least 20% of the crop received is certified. 14 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 15

LINK TO MATERIAL ISSUE TARGET PROGRESS AS OF 31 TARGETS LINK TO SDG(S) YEAR DEC 2019

ENVIRONMENT *Continued

Reduce water Water impacts 2023 TARGET ACHIEVED consumption for Central Kalimantan intensity for palm oil (1.10* m3/MT FFB) and mills based on 2016 Sumatra (0.99* m3/MT FFB) baselines with the Humana Students in Sabahmas following absolute ON TRACK targets: for West Kalimantan, Sabah, Sarawak Indonesia: and Ghana 1.2 m3/MT FFB LINK TO MATERIAL ISSUE TARGET PROGRESS AS OF 31 Malaysia and Ghana: TARGETS 1.3 m³/MT FFB LINK TO SDG(S) YEAR DEC 2019 *Continued Note: EMPLOYEES AND COMMUNITIES Target for our new mill in Nigeria to be set once we In Nigeria, upgrading of one school can ensure data robustness. was completed in 2019 and ongoing in four other schools, after which Re-use 100% of solid GHG emissions Ongoing TARGET ACHIEVED redevelopment efforts on the sixth school will commence. waste generated All of the solid waste generated from from our palm oil our palm oil milling processing was milling processes re-used or stockpiled for future use Provide all palm oil Labour conditions 2025 ON TRACK as fuel or organic fertiliser in 2019. workers in Nigeria 31% of permanent workers are with accommodation provided housing in Nigeria. choices Maintain effluent Water impacts Ongoing ON TRACK levels to be within Ghana's effluent discharge standard for local regulation the Oil & Processing Sector was gazetted SMALLHOLDER SUPPORT thresholds for palm and promulgated to Wilmar in August oil mills waterway 2019 with a limit of 50 mg/L (regardless Benefit 100% Smallholder inclusiveness 2020 for ON TRACK discharge of river discharge or land application). of independent Ghana As of end 2019, all 300 farmers We are currently in discussion with smallholder palm oil under the Adum Smallholder the local authority to set a standard suppliers enrolled scheme have been trained under specifically for the palm oil sector. All in/covered by our the alternative livelihood scheme other operations were compliant with smallholder support but planting has only started relevant local thresholds in 2019. programmes for 20 hectares of land due to NPP completion in Aug 2019. EMPLOYEES AND COMMUNITIES Considered as 0% completion.

Establish Women’s Labour conditions Women’s Working Groups have Target Working Groups at been established at 100% of our 2023 for ON TRACK revised to 100% of Wilmar’s oil estates in Indonesia, Malaysia and Nigeria 2020 43 of the 2,000 proposed farmers palm estates Ghana and 70% of our estates in currently benefit from the Pilot Nigeria. We expect to achieve Outgrower scheme as part of 100% for Nigeria in 2020. Phase 1. Discussion is proceeding well with the Central Bank of Upgrade and Investment in community 2020 TARGET ACHIEVED Nigeria for planting to start this modernise schools infrastructure for Ghana in 2019. year. in the vicinity of our oil palm estates (15 In Indonesia, we completed the redevelopment and upgrading of ten in Indonesia, two 2025 for ON TRACK in Ghana and six in out of 15 schools in 2018. However, Indonesia 36% are covered by the ISPO Nigeria) we invested almost US$ 1 million for further upgrading and improvements training programme. in nine schools in 2019.

* EY has performed limited assurance procedures on this figure 16 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 17

About Wilmar

Russia Wilmar International Limited (‘Wilmar’ or United Kingdoms China the ‘Group’) is Asia’s Netherlands Poland United States of America Germany Ukraine

Spain Japan leading agribusiness Italy

Pakistan group and one of the Morocco Bangladesh Myanmar Mexico Laos largest listed firms by Thailand Vietnam Philippines Guatemala Senegal Ivory Coast India Cambodia Liberia Djibouti Ghana Nigeria Ethiopia Srilanka Malaysia market capitalisation on Singapore Uganda Papua New Guinea Kenya Tanzania the Singapore Exchange Brazil Indonesia Fiji Zambia Mozambique Mauritius (SGX). Zimbabwe New Caledonia Australia South Africa Founded in 1991 and headquartered in Singapore, Wilmar NOTE: is a Fortune Global 500 company that ranked 258th in 2019. This map shows the extent of Wilmar’s operations and goes beyond the scope New Zealand Our global operations are supported by a multinational of this report. workforce of over 90,000 employees. #1 PLAYER INDONESIA & IN CHINA MALAYSIA

Largest edible One of the largest oil oils refiner and palm plantation owners AFRICA INDIA Business overview specialty fats and and the largest palm oleochemicals oil refiner, palm kernel One of the largest Largest branded GLOBAL PRESENCE manufacturer and copra crusher, oil palm plantation consumer pack owners, edible oils, specialty fats Leading oilseed flour miller, specialty We are the global leader in palm and lauric oil consumer pack oils. We are also a leading player in oil refiners and and oleochemicals crusher, producer fats, oleochemicals and processing and merchandising, and the production oilseed crushing, flour and rice milling, and one of producers of producer and edible of branded biodiesel manufacturer of oleochemicals, specialty fats, palm biodiesel and the world’s top ten raw sugar producers. consumer pack oils refiner consumer pack oils, oils, soaps and rice and flour Leading oilseed detergents crusher One of the largest AUSTRALIA Third largest sugar flour and rice Leading sugar 900+ Extensive 90,000 producer millers Largest raw sugar miller and refiner manufacturing plants distribution staff producer and in 32 countries and refiner regions Multinational network workforce of about Leading consumer RUSSIA UKRAINE (Including plants owned or in China, India, 90,000 staff globally brands in sugar and operated by subsidiaries, joint EUROPE Indonesia and some Largest manufacturer Largest edible oils ventures and associates) sweetener market 50 other countries and of consumer pack refiner and specialty fats Leading refiner of regions Top 10 global raw margarine and producer tropical oils sugar producer mayonnaise 18 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 19

INTEGRATED AGRIBUSINESS Our operations Wilmar’s entire agricultural commodity value and logistical advantages. Our pioneering chain is driven by a resilient business model approach has allowed us to transform ranging from processing to branding, to the industry towards sustainable growth merchandising and distribution. We are throughout our entire operations—and PALM OIL able to achieve operational synergies and beyond. 9.76 million MT FFB processed cost efficiencies through scale, integration,

Consumer pack edible Oilseed 40.4% TOTAL FFB 4.0% TOTAL FFB 55.5% TOTAL FFB oils meal is Wilmar-owned crop supplied by 16,064 purchased from scheme smallholders third-party suppliers, Bulk edible Rice & NEW ESTATE including independent oils Flour acquired in Malaysia smallholders

Raw & ORIGINATION refined PROCESSING Oleo- TRADING, CUSTOMERS sugar chemicals MERCHANDISING, & DISTRIBUTION

Speciality Biodiesel fats SUGAR 20.7 million MT sugarcane crushed

FINANCIAL AND EMPLOYEE HIGHLIGHTS 97.7% PURCHASED FROM THIRD-PARTY SUPPLIERS The Group recorded a 15% increase in volume for FY2019 climbed by 3.8% but net profit to US$ 1.29 billion in FY2019, lower commodity prices resulted in a 4.2% 2.3% 65.9% 5.0% 26.7% led by strong performances from Tropical decline in revenue to US$ 42.64 billion. sugarcane is purchased from purchased from purchased from Oils and Consumer Products. Overall sales Wilmar-owned 1,423 5,487 66,690 crop leaseholders and contracted smallholders in independent smallholders in India REVENUE 2015-2019 (US$ MILLION) producers in Myanmar Australia 9

21 5% 42% 102 Africa Indonesia

EMPLOYEE BREAKDOWN BY 3% 12% Australia Malaysia GEORGRAPHIC PALM OIL OPERATIONS REGION 2019 (%) 28% 10% China Others Wilmar is one of the world’s largest oil by about 400 hectares as the commitments (incl EU palm plantation owners, managing 232,490 set out with these clusters were completed in SEE PAGE 19 OF 201 201 201 201 FY2019 & USA) OUR ANNUAL hectares of planted area and 45 mills in 2019. They are now part of our independent REPORT 2019 Indonesia, East Malaysia7, Ghana and smallholder supply base. FOR A LIST OF Nigeria. In Indonesia, nine of these mills OUR SUBSIDIARY 8 NET PROFIT 2015 - 2019 (US$ MILLION) are independent of estates , and purchase Our subsidiaries and associates account for AND ASSOCIATE 100% fresh fruit bunches (FFB) from third- over 250 refineries, oleochemical plants, DOWNSTREAM party suppliers. specialty fat plants and biodiesel plants that OPERATIONS NOTE:

1291 process crude palm oil (CPO) and lauric oil FY2017 figures were restated upon In 2019 our total planted area has increased from our own operations and third-party adoption of SFRS (I) 9 Financial 119 by 2,532 hectares due to increased planting suppliers. The total processing capacities Instruments, SFRS (I) 15 Revenue

112 from Contracts with Customers at our estates in Nigeria and the acquisition of these facilities ranges from one to 30 and IFRS Convergence. FY2018 of Laba Utama in Malaysia. Scheme million metric tonnes per year, including

102 figures were restated subsequent 92 smallholder planted areas have decreased both palm oil and soft oils. to the finalisation of purchase price allocation exercise for the acquisition of SRSL and its 7 We have an additional palm oil mill in Malaysia (Suburmas) where we have less than 50% shareholding. Unless subsidiaries. otherwise stated, this mill is outside the scope of this report. 201 201 201 201 FY2019 8 Based on RSPO classification of independent mills. 20 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 21

WILMAR AND SCHEME SMALLHOLDER OIL PALM PLANTED AREA 2015-2019 (HA) Overview of Wilmar’s 272,384 273,176 263,980 266,208 268,331 global palm oil operations 31,428 31,284 13 34,524 35,799 35,391

OIL PALM PLANTATIONS PLANTATION AGE PROFILE AS AT BY GEOGRAPHIC 240,956 241,892 229,456 230,409 232,940 REGION 2019 DECEMBER 2019 (ha, %) (%)

152,754 ha, 65% 59,869 ha, 26% 15% 14% 43% Indonesia Malaysia 0-3 years 4-6 years 7-14 years 2015 2016 2017 2018 2019 4,738 ha, 2% 15,580 ha, 7% 11% 17% Ghana Nigeria 15-18 years >18 years Wilmar-owned area Scheme smallholder area

OIL PALM PLANTATIONS OPERATIONAL OVERVIEW GROUP YIELD AND EXTRACTION RATES 2015-2019 AS OF 31 DECEMBER 2019 • Planted area of 232,940 ha in Indonesia, Malaysia9, Ghana and Nigeria, with an SOUTH EAST ASIA infrastructure area of 14,380 ha

12 • Smallholder scheme area of 35,391 ha 1 5 planted in Indonesia and Africa 2 1 4 10 21.4 21.6 Sabah • Joint venture area of 46,000 ha in 1 19.7 20.1 Uganda and West Africa managing 19.0 1 North Sumatra 5 5 3 smallholder and outgrower scheme areas 1 2 6 3 3 3 1 2 Sarawak 20.5 20.0 20.0 19.9 19.5 1 3 of 157,515 ha 1 2 6 7 5 Riau West Kalimantan West Sumatra 1 9 4 PALM OIL MILLS Central Kalimantan in Indonesia, Malaysia, Ghana 1 5 3 Jambi 7 10 2 1 • 45 mills 1 and Nigeria 3 3 • Including 9 mills that are independent Bengkulu of plantations in Indonesia11 3 1 Lampung 1 2 4.9 4.9 4.8 4.9 4.8 Jakarta 4 3 4 1 PALM OIL DOWNSTREAM East Java OPERATIONS WEST AFRICA • 189 refineries, 23 oleochemical plants, 201 201 201 201 2019 36 specialty fats plants and 14 biodiesel plants across South East Asia, China, Number of palm oil mills Europe, Africa, India, Bangladesh and Number of oil others belonging to subsidiaries and CPO extraction rate (%) PK extraction rate (%) FFB yield (MT FFB/ha) palm plantation associates12 management units

6 1 Edible oil refineries Nigeria Oleochemical 1 1 EXPLORE OUR Specialty fats GLOBAL PALM OIL PRESENCE 9 Excludes one area in Suburmas, that is leased from local government. 10 Outside the scope of this report. 11 Based on RSPO classification of Ghana Biodiesel independent mills. 12 All associates have less than 50% holding and fall outside the scope of this report. 13 Nigeria's scheme smallholder figure from 2018 has been restated to align with Annual Report's categorisation. 22 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 23

SUGAR OPERATIONS TOTAL WILMAR-OWNED AND THIRD-PARTY SUGARCANE PLANTED AREA 2018-2019 (HA)

As one of the world’s top ten raw sugar operations due to less rainfall thereby producers, Wilmar manages 7,440 hectares contributing to dry weather conditions 343,812 of planted sugarcane area. 92% is located affecting cane growth. 306,982 in Queensland, Australia, with the rest in Myanmar. Wilmar also operates 17 mills Wilmar operates seven sugar refineries throughout Australia, India and Myanmar. across Australia, New Zealand, Indonesia Wilmar-owned area Since June 2018 we also have interests in and India with a total processing capacity 336,769 299,542 India, having acquired 58% of Mumbai- of four million MT per year. Our refineries based Shree Renuka Sugars Limited (SRSL). in Australia are part of a joint venture. Third-party area In 2019 our sugarcane yield was 87.6 metric

tonnes per hectare (MT/ha) in Australia and We operate seven mills and one refinery in 7,043 7,440 51.2 MT/ha in Myanmar. Compared to 2018, Morocco through associate companies14. there was a 26% fall in yield at our Myanmar 201 2019

14 With less than 50% holding, our Moroccan sugar business falls outside the scope of this report.

Overview of Wilmar’s SUGARCANE YIELD 2018-2019 (MT/HA) global sugar operations

2 1

1 1 7

914 876 694 512 Australia

7,043 7,440 Myanmar

2018 2019

2

EXPLORE OUR 8 1 4 GLOBAL SUGAR PRESENCE

SUGARCANE ESTATES BY 6,812 ha, 92% Australia # Number of sugar refineries COUNTRY 2019 (ha, %) # Number of sugar mills 628 ha, 8% 1 Total: 7,440 ha Myanmar # Number of estates 1 24 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 25

SUSTAINABILITY GOVERNANCE Governance and management AND MANAGEMENT

At the heart of Wilmar’s strategic management and decision-making is our Wilmar is committed to upholding the highest standards of commitment to sustainability. Our No Sustainability policies corporate governance. Anchored by strong leadership, effective Deforestation, No Peat, No Exploitation internal controls, and accountability to stakeholders, our Board of (NDPE) policy provides a blueprint for our are overseen by Directors is responsible for the strategic direction of the Group. palm oil operations. Other sustainability- The Board is led by Chairman and Chief Executive Officer (CEO), related policies and frameworks guide our global operations. These cover the the chairman and Mr Kuok Khoon Hong and is supported by key management environment, health and safety, equal teams responsible for executing the strategy and operations of opportunities, human rights, labour rights, CEO and supported the Group. child protection, and food safety.

Wilmar’s sustainability department is by the Board's spearheaded by the Chief Sustainability Guided by our Board Diversity Policy, the Board, totalling 13 members with a Wilmar values the benefits a diverse board majority of seven independent directors. Officer, led by the Group Sustainability Risk Management brings to the organisation. Our directors are General Manager and staffed by over sixty drawn from a wide range of backgrounds In August 2019, all Board members attended employees worldwide. The department with diverse skills, qualifications, and an environmental, social and governance is responsible for implementation of Committee on a industry-relevant experience. In February (ESG) group sustainability training session, the Group’s sustainability strategies. A 2019 we appointed the first female delivered by Wilmar’s General Manager – combination of local and technical expertise quarterly basis director to the Board. In December a new Group Sustainability. throughout South East Asia, Africa and independent non-executive director joined Europe enables the department to oversee implementation of the NDPE policy, the through review of principles of the United Nations Global Compact (UNGC), sustainability certification, detailed reporting SEE OUR ANNUAL REPORT 2019 FOR MORE DETAIL supply chain monitoring, stakeholder engagement, and reporting. and emerging issues. Sustainability policies are overseen by the chairman and CEO and supported by the Board’s Risk Management Committee on a quarterly basis through review of detailed party suppliers. We also engage externally with partners and specialists to support Board composition reporting and emerging issues. A Technical Advisory Group and Suspension Committee implementation of the NDPE policy and supply chain compliance. as of December 2019 work with our operations and communication teams to execute implementation of the NDPE policy and evaluate progress. Local Wilmar continuously reviews and enhances teams in Indonesia and Malaysia also exist key sustainability performance indicators to to provide on-the-ground support to third- further strengthen our governance practices. 13 MEMBERS

10 3 7 Singaporeans independent executive 1 SEE WILMAR’S SUSTAINABILITY POLICIES Malaysian 10 1 1 SEE OUR SUSTAINABILITY GOVERNANCE STRUCTURE non-executive female American 1 Chinese from the People’s Republic of China 26 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 27

ESG PRACTICES AND CONTRIBUTING TO THE SDGS Upholding ethics and integrity Decisions and actions are guided by (SDGs) and creating opportunities to address exemplary ESG practices. These stem from these challenges. In 2017 we identified four key value pillars: conserving forests and and aligned our ESG framework with the species, reducing climate change impacts, SDGs. These global objectives form the Wilmar endeavours to uphold the highest levels of integrity and giving back to the people, and maintaining backbone of the Agenda for Sustainable ethical standards through instilling a culture of group personal a sustainable business. Development, a shared plan—adopted responsibility. in 2015 by 193 countries—with a goal of However, we are faced with challenges eradicating worldwide poverty and achieving such as scarce natural resources, wavering sustainable development by 2030. financial markets, limitations to local Our Code of Conduct addresses concerns practice, corruption or ongoing corruption SEE ALL buying power and the need for qualified By reviewing the SDGs' underlying targets, around conflict of interest, and bribery legal cases. Wilmar does not condone CORPORATE talent. Consequently, Wilmar’s business and identifying our key strengths and areas and corruption while our Code of Ethics lobbying practices, nor do we make any POLICIES case necessitates harnessing the United of impact, we have designated five SDG promotes moral and ethical standards political contributions. There were also no Nations Sustainable Development Goals objectives to strive for: expected of our employees. We also have significant incidents of non-compliance a specific Anti-Fraud Policy identifying with any relevant environmental and socio- fraudulent acts and repercussions of economic laws or regulations in our locations WILMAR’S SUSTAINABILITY VALUES dishonest and deceptive behaviour, and of operations covered in this report. a Privacy Policy on how personal data is safeguarded. Our 2018 Whistleblowing All employees at our Singapore headquarters Policy encourages employees to report received internal training on the above suspected wrongdoing, knowing that their policies and other key topics such as concerns will be taken seriously and their guidance on money laundering, trade confidentiality respected. compliance, and sanctions. These training materials were also shared with Wilmar’s CONSERVING REDUCING CLIMATE GIVING BACK TO THE SUSTAINABLE In 2019 there were no reported incidents global offices with the aim of a global rollout. FORESTS AND SPECIES CHANGE IMPACTS PEOPLE (SOCIAL) BUSINESS (ENVIRONMENT) of anti-competitive behaviour, monopolistic

RELEVANT ESG COMPONENTS

• HVC/HCS/no • Air quality • Child protection • Corporate governance deforestation • Fire and haze • Community relations &anti-corruption In 2019 there were • Wildlife conservation • GHG emissions and conflict resolution • Food safety and nutrition • Water and pollution • HCV/HCS/no • Freedom of association impact and deforestation • Food safety and • Grievance resolution no reported incidents management • No peatland nutrition • Jurisdictional • No peatland development • Healty & safety approaches and development certification • Human rights of anti-competitive • Pesticides and • Supply chain monitoring chemical usage • Investment in community • Supply chain infrastructure transformation behaviour, monopolistic • Labour conditions • Sustainability certification • Smallholder inclusiveness • Transparency and accountability practice, corruption or ongoing corruption KEY INDICATOR

• No deforestation • GHG emissions/ • Provision of schools, • NDPE policy legal cases. • HCV/HCS/peat methane recovery daycare facilities and • Supply chain traceability creches • Riparian areas • Fire mitigation and smallholders • School redevelopment • Certification • Anti-poaching programmes (species) • Bank (sustainability • Provision of scholarships • Water management loans) • Community • Research and development development programmes • Partnerships and • Human rights & labour engagement conditions policies & practices • Supplier compliance/ monitoring programme • Philanthropy & CSR Harvester at work in a Wilmar plantation initiatives 28 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 29

Key milestones in 2019

Our approach to sustainability Strengthening policies and guidance

UPDATED NDPE POLICY REVISED GRIEVANCE NEW NO EXPLOITATION NEW HUMAN NEW with clearer guidance on PROCEDURE PROTOCOL RIGHTS WOMEN’S Sustainability continues to our no deforestation and including new re-entry being developed to FRAMEWORK CHARTER no peat policy criteria support Grievance be a fundamental aspect in Procedure our operations and business Own operations Supply chain strategies. CERTIFICATION AND TRACEABILITY SUPPLIER ACCREDITATION ENGAGEMENT Wilmar strives to be at the forefront of sustainability with our AND ASSESSMENT efforts to transform the agricultural sector to be more sustainable 234,396 ha 96.2% 90% supplier groups and responsible. RSPO certified (77% of certifiable area). This includes traceability to palm oil have either: scheme smallholder areas mills across our global • provided written operations confirmation to Wilmar’s NDPE policy We understand that ending deforestation Part of these endeavours include fortifying 1 mill completed RSPO certification, totalling 26 mills (72% of total mills) 100% • published their own NDPE is essential in mitigating the risks of climate and improving our own operations, further policies traceability to plantation change, which is among the reasons strengthening our supply chains to be even • reported NDPE 882,257* MT for all Wilmar-owned Wilmar became a signatory of the New more compliant to our NDPE policy and compliance via our SRT, or 15 RSPO-certified CPO and PK produced palm oil mills across our York Declaration on Forests (NYDF) . collaborating with stakeholders to identify • are a member of the RSPO In 2019, at the NYDF 5th Anniversary and potential gaps and to develop solutions. global operations Leadership Event, Wilmar was among the RSPO SCCS certified (100%) few private sector players invited to share All Wilmar-owned downstream facilities in Indonesia 100% our experiences and challenges in leading Besides oil palm plantation management, and Malaysia16 traceability to sugar mills 470* completed SRT in 2019 (52.3% of supply base) the sustainability-driven transformational Wilmar monitors palm oil deriving from for both origin refineries change for the palm oil industry, together over 20* million hectares of land. While New automatic certification in Australia with the complexities and on-ground eliminating deforestation in our vast and approach for RSPO downstream refineries realities. complex supply chain has been our primary focus, we recognise it is a monumental task We persist to meet our 2020 aspirations and for any organisation to achieve in isolation. 3 mills completed SUPPLIER ISPO certification, totalling 11 mills (32%). This includes GRIEVANCES our sustainability commitments, despite the Nevertheless, we are making significant MONITORING the 1st of 10 independent mills challenges we face, through our endeavours, progress in transitioning our supply chain 90%* Monitoring >20* which include further intensifying our efforts, palm producers away from deforestation. of grievance cases closed million ha channelling additional resources, capacity Guided by our No Deforestation, No 1 mill completed 17 covering 509 parent groups building as well as investing in innovation , we MSPO certification, totalling 9 mills (100%) Peat, No Exploitation (NDPE) policy with more than 3,000 and improvements. are resolute in continuing to work closely 26 supplier All palm oil processing facilities groups suspended since plantation units spanning 2015, including 22 due to Indonesia, Malaysia, Papua have been certified to MSPO SCCS certification (100%) deforestation New Guinea, Cambodia, Myanmar and Thailand 3 downstream operations completed ISCC certification, totalling 39 facilities 1.5 million ha removed from supply chain

INNOVATION AND YIELD IMPROVEMENT * EY has performed limited assurance procedures on this figure 16 Covering all refineries, oleochemicals, biodiesel and specialty fats plants * EY has performed limited assurance procedures on this figure New oil palm clonal lab within scope of this report in Indonesia and Malaysia. 17 15 The New York Declaration on Forests was endorsed by the 2014 United Nations Climate Summit at United —established in Central Kalimantan in January 2020 With the new acquisition of Laba Utama estate, the MSPO target for all Nations headquarters in New York. operations will be updated to 2020. 30 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 31

with the widest range of stakeholders in guide us in economical and sustainable the palm oil industry to implement our production and consumption of palm oil sustainability commitments to protecting goods and resources. forests, peatlands, human and community rights. Our sugar business continues to focus on certification and traceability efforts, as well SDG 12 (Responsible consumption and as supplier engagement in Australia and production) and our NDPE framework form India. the backbone and key strategic marker to

COMPLIANCE: • Certification WILMAR’S OWN • Conservation OPERATIONS • Smallholder supply

SUPPLY CHAIN • Sustainable sourcing & DOWNSTREAM • Third-party supplier compliance

GRIEVANCE GROUP MANAGEMENT SUSTAINABILITY

• Sustainability policy EXTERNAL • Stakeholder engagement ENGAGEMENT • Sustainability communications • Multi-stakeholder partnerships

Overview of the updated NDPE policy

STRENGTHENING POLICIES AND GUIDANCE Provisions cover: Better alignment with Incorporates We focused on strengthening our policies and guidance to our sustainability commitments globally recognised other Wilmar in 2019, particularly in relation to our palm businesses and supply chain. All Wilmar operations frameworks and sustainability- worldwide Any refinery, mill or guidance: related polices Updated NDPE Policy plantation that we own, and commitments manage or invest in • United Nations FAO In November 2019 we updated our NDPE followed by key stakeholders being informed around: (including those of our Voluntary Guidelines policy to capture and reflect the many via two public town hall sessions. Our on Responsible developments that have taken place since suppliers have also been specially informed subsidiaries) regardless • Health and safety of stake. Governance on Tenure the first policy launched in 2013. The of the changes. Our commitments reflected (VGGT) Consortium of Resource Experts (CORE), in the various sections of this report align • Human rights Third-party suppliers non-governmental organisations and with language in the current policy. • United Nations Global other partners helped examined the policy at group-level • Whistleblowing with a 31 December Compact (UNGC) 2015 cut-off date for • Joint statement • International Labour supplier compliance with published in December Organization (ILO) all provisions. 2018 SEE NDPE POLICY conventions Any identified and verified deforestation • RSPO guidance on peat and the integrated In our previous sustainability reports, we to separate the policy frameworks given the and peat development HCV-HCSA assessments shared our intentions for our NDPE policy distinct complexities and material issues non-compliance after for new plantings updates to include provisions to cover our specific to each sector. Thus, in 2020 we the cut-off date requires sugar business. However, following several aim to develop a dedicated programme and remediation action or consultations and further consideration, it framework to address critical sustainability Recovery Plans. was agreed that it would be more effective issues in the sugar industry. 32 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 33

Sustainability in Wilmar’s operations Stakeholder commentary CERTIFICATION AND ACCREDITATION by PepsiCo To provide traceable and certified sustainable palm oil and sugar, Wilmar supports relevant sustainability certification schemes and works diligently to achieve and maintain Natasha Schwarzbach, Sustainable compliance for our upstream and downstream operations. Commodities, PepsiCo Global Sustainability RSPO Working together One mill in West Kalimantan, PT. Agro Nusa in Indonesia and Ghana. In 2019, our mills Investama (ANI) Sambas (Kumpai), achieved produced approximately 720,800* metric is important for RSPO the Roundtable on Sustainable Palm Oil tonnes (MT) of certified sustainable palm (RSPO) re-certification in 2019. Although PT. oil (CSPO) and around 161,400* MT of transformation of Kencana Sawit Indonesia in West Sumatra certified sustainable palm kernel (CSPK)—an was scheduled to achieve re-certification in additional 5.9% of CSPO and 8.4% of CSPK the palm oil sector. 2019, audits were carried out in September compared to 2018. We target to complete and certification was achieved in March RSPO certification for all our own palm oil 2020. We will continue working to achieve mills by 2023. PepsiCo and Wilmar, along with other always forthcoming in providing responses certification for the remaining mills as we industry players, have been finding ways to to any questions or concerns. face delays in finalising Hak Guna Usaha As of December 2019, all our refineries have work collaboratively on impact programmes (HGU) (operation permits). These delays are achieved certification across all regions, and initiatives such as the Child Protection Wilmar’s continued commitment to work with a result of the except for 14 remaining operations in China. and Safeguarding Implementation Manual, like-minded partners will lead to beneficial revised legality requirements set out by the RSPO in June 2018. We are on track to achieve certification in the NDPE Implementation Reporting results for the whole palm oil industry. We 2020 in line with our target to complete Framework (IRF), and Radar Monitoring will continue to co-operate with Wilmar to With the recertification of PT. ANI Sambas RSPO certification for all our own palm oil Technology to Detect Deforestation (RADD) apply these initiatives even more widely achieved in 2019, 26 of our 36 operations refineries in 2020.18 platform in order to stimulate change in the palm oil supply chain and for other have achieved certification, totalling a throughout the palm oil value chain. crops and commodities being sourced by certified RSPO area of 234,396 hectares. Around 4.5% of all the palm oil products PepsiCo. This amounts to 77% of our total area we handle, trade and process are RSPO PepsiCo recognises the role that Wilmar certifiable. This includes our certified plasma certified. plays in addressing systemic issues in About smallholders linked to four of our operations the industry, including through good PepsiCo is a global food and beverage grievance management. In particular, company that sources palm oil from around Wilmar has a strong record of creating the world and Wilmar is one of PepsiCo’s Daphne Hameeteman (2nd from left) from Wilmar and following through on action plans to top three suppliers. Natasha is the global receiving the RSPO award for address grievances and employs a proactive lead for Sustainable Commodities on palm Human Rights in November 2019 monitoring and engagement mindset. oil and cane sugar. Overall, Wilmar is very responsive and are * EY has performed limited assurance procedures on this figure

18 This covers 107 refineries in all countries we have downstream Revised grievance mechanism operations. Apart from Indonesia In June 2019, we updated our Grievance Procedure to better support the implementation of and Malaysia, where we have 64 certified refineries, these fall our NDPE policy. The updates incorporated elements contained within the Joint Statement SEE SECTION ON GRIEVANCE outside the scope of this report. published in December 2018, specifically on the cut-off date for deforestation and peat PROCEDURE development as of 31 December 2015. Any new verified deforestation occurring after FOR MORE 1 January 2019 would therefore be subject to immediate suspension of the supplier at DETAIL group-level. We are also developing a protocol to identify NDPE policy non-compliance based on our No Exploitation of People and Local Communities commitments that New automatic certification approach for warrant action and oversight additional to what is set out in the Grievance Procedure. downstream operations

New guidance on human rights and women SEE SECTION ON Wilmar has implemented an automatic certification provision for our downstream In May 2019, we published our Human Rights Framework as well as our Women’s Charter. CHAMPIONING operations. This means that any newly acquired refinery is automatically scheduled PEOPLE FOR While both documents provide our approach for Wilmar-owned operations, the Human for RSPO certification. Being RSPO certified upon acquisition contributes to achieving MORE DETAIL Rights Framework Policy Statement is applicable to both our operations and suppliers. Wilmar’s target of 100% certification by 2020 for all our downstream operations where we have majority management control. 34 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 35

TIMEBOUND PLAN FOR RSPO MILLS MSPO

In Malaysia, our ninth mill achieved our Malaysia mills21 and estates to achieve TARGET COMPANY, LOCATION STATUS MSPO Malaysian Sustainable Palm Oil (MSPO) 100% MSPO certification by 2020. YEAR certification in May 2019, prior to the mandated government cut-off date of 31 Of our downstream operations in Malaysia, December 2019. This allows us to have a all of our palm oil processing facilities 2020 PT. Kencana Sawit Indonesia, West Sumatra Audit carried out in September 2019. Achieved certification in March 2020. total certified production capacity of around (refineries, kernel crushing plants, biodiesel 202,300* MT of MSPO-certified CPO and and oleochemical plants) are MSPO Supply 39,700* MT of MSPO-certified PK. In 2019, Chain Certification Standard (SCCS) certified PT. Agro Nusa Investma Pahauman, In the process of finalising HGU Wilmar acquired a new estate, Laba Utama, – refineries that are under the cooking oil West Kalimantan in Sabah, making it the last remaining site price stabilisation scheme (COSS) achieved to achieve MSPO certification, which we certification by April 2019 while the aim to carry out in 2020. Consequently, remaining facilities achieved certification 19 2021 Suburmas Palm Oil Mill Sdn. Bhd., Sarawak New mill included based on updated we have updated our 2019 target for all of by year-end. RSPO membership rule requiring Wilmar to include Suburmas in our timebound action plans ISCC

Three additional downstream operations downstream operations including refineries, Pending maturity of plantation and achieved International Sustainability and biodiesel plants, bulking terminals and Biase Plantation Ltd., Calaro ISCC 2022 sufficient crop for efficient mill operation Carbon Certification (ISCC) certification warehouses certified across Malaysia and in 2019. Our total number of ISCC- Indonesia, and one trader in Singapore. 22 certified operations cover 20 mills and 17 PT. Agro Palindo Sakti 2, West Kalimantan In the process of finalising HGU PT. Musi Banyuasin Indah, South Sumatra 2023 PT. Sinarsiak Dianpermai, Riau PT. Sarana Titian Permata 1, Central Kalimantan PT. Sarana Titian Permata 2, Central Kalimantan SEE MORE ON OUR PALM OIL CERTIFICATION PT. Agrindo Indah Persada 2, Jambi

ISPO BONSUCRO

In 2019 three additional Wilmar-owned mills farmer guidance programmes, farmer Out of our total sugarcane planted areas in have certified downstream operations in ISPO received Indonesian Sustainable Palm Oil organisation empowerment, and by BONSUCRO Australia, 55.6% is certified in compliance Australia, New Zealand and Singapore in (ISPO) certification, bringing the total to separate implementation of a traceability with Bonsucro Production Standards, line with the Bonsucro Chain of Custody 11 mills—32% of our Indonesia upstream programme. In 2019 four co-operatives including three raw sugar mills. We also certification. operations. This would translate to around successfully became certified across Riau 163,550* MT and 41,970* MT of ISPO- and Jambi, signifying their capacity to certified CPO and PK respectively. We target comply with international sustainability to achieve ISPO certification for all our own criteria. As such, one independent mill was palm oil mills in Indonesia by 2023. successfully certified in 2019 with three more receiving confirmation in March 2020 SMARTCANE BEST MANAGEMENT PRACTICES (BMP) For independent mills, ISPO certification of their ISPO certification but due to the is only possible if 20% of the crop COVID-19 situation, the official handover In 2019, one additional farm was accredited In 2019 we began the process to accredit SMARTCANE supplied by farmers is also certified ceremony has been postponed for the BMP by Smartcane BMP, now totalling three farm the remaining farms at Plane Creek, with 20. Since 2017 we have assisted farmer time being. We target to complete ISPO areas in Burdekin, Herbert and Proserpine. an objective of completing this by 2020. co-operatives in achieving certification. certification audits for our ten independent This is conducted through integrated mills in Indonesia by 2023.

* EY has performed limited assurance procedures on this figure * EY has performed limited assurance procedures on this figure 19 Out of scope of this report based on operational control being less than 50%. However, it is included as being under Wilmar management control 21 This includes our Suburmas mill in Malaysia which falls outside the scope of this report based on operational control being less than 50%. However, it according to RSPO Certification Systems requirements. is included under our MSPO certification figures which cover any mills over which we have operational control. 20 Classification of ‘independent mills’ differ between ISPO and RSPO requirements. RSPO classifies a mill as independent if 100% of supply is not from 22 In SR2018 this was included as 16 refineries only but now clarified to includes all downstream operations. the company’s own estates. As such, Wilmar has nine independent mills under the RSPO’s criteria and ten under ISPO 36 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 37

R&D to support our IPM programme INNOVATION AND YIELD IMPROVEMENT

Wilmar invests significantly in research and are more resilient and better able to adapt We have been conducting joint research with Orillion, a New Zealand-based pest control development (R&D) to find new ways of to actual and expected climate change. This expert, on a new rodenticide initiative to support our Integrated Pest Management (IPM) boosting our performance while ensuring includes harnessing innovative solutions with programme. We have tested the rat bait preferences in a small enclosure and will expand that we continue to produce our palm oil a focus on reducing our use of resources the programme to a wider area. responsibly and sustainably. Improving and improving process efficiency to lessen our productivity, increasing our yields, and greenhouse gas emissions. We however Through a joint project with University Putra Malaysia (UPM) in Labuk, Sabah, we introduced optimising our use of resources are all vital do not believe in growing or producing non-native barn owls for biological control of the rat population and as a way of minimising as we work towards fulfilling global palm oil genetically modified organism (GMO) crops the use of rat bait. Throughout 2019, we initiated a staged release of ten owls into our demands. It is also imperative that our R&D and do not use GMOs in our palm and sugar estates where they roam freely in hope that they will eventually propagate and make initiatives are focused on ensuring our crops production processes. homes in strategically-placed nesting boxes. In the near future, we will acquire more barn owls from UPM to fast track this biological control programme.

SEE SECTION ON OPTIMISING CHEMICAL USE FOR A CASE STUDY ON CONTROLLING RAT POPULATIONS USING BARN OWLS

Increasing farm productivity using mill by-products

For our sugar plantations, we invested in R&D efforts aimed at increasing farm productivity in our milling regions, and the broader Australian sugar industry. We are focusing our current research on the development of guidelines for the use of sugar milling by-products: mill mud and ash. This involves testing the best ways to apply mill mud and ash to reduce the potential loss of nutrients from the farms while potentially increasing the profits of sugarcane growers who are our suppliers. The research is being conducted at 13 trial sites across Australia, making it one of our biggest trials.

R&D on shortening palm breeding cycles through genetic screening

Since 2009 we have collaborated with Temasek Life Sciences Laboratory to conduct research on using genetic screening to shorten the palm breeding cycle. We have made significant progress to date and are in the process of field-testing selected genetic markers against FFB yields in sampled palms. If it proves successful, this research may enable us to halve the breeding process time compared to conventional methods.

Trialling mechanical wheelbarrows for crop evacuation

In 2019 we began commercial trials on mechanical wheelbarrows to assist in-field evacuation of crops during harvesting. This could also be helpful during a shortage of workers. We will test these wheelbarrows, known as ‘power barrows’ at selected estates with suitable terrain. 38 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 39

TRACEABILITY

Striving for sustainability Wilmar has both a responsibility and an level.23 This translates to about 23.8 million opportunity to lead our supply chain towards tonnes of palm products traceable to mills more sustainable palm oil production. By across our global operations. Over 90% of in our supply chains tracing supply flows, we can map our supply volumes originate from third-party suppliers base, evaluate supplier performance against in Indonesia and Malaysia. our NDPE policy, and engage with suppliers We remain committed to implementing oil trader and one of the largest sugar to drive continuous improvement. We make In 2015, Wilmar committed to achieving best practice within our own estates, but operators, Wilmar is in a unique position to our supply chain as transparent as possible full palm oil mill traceability for all volumes also recognise that a large part of our have a lasting impact on our supply chains. to all stakeholders on our sustainability handled by our refineries. However, securing footprint lies beyond our operations. Our This potential for wider positive sustainability dashboard. While we previously updated 100% traceability continues to be extremely suppliers have a critical role to play in impact is the reason we allocate significant this quarterly, we will now do so bi-annually difficult due to the challenges of commodity more sustainable and responsible palm effort and resources in encouraging the because fluctuation between reporting transportation and trading structures within oil production. As the world’s largest palm industry towards responsible production. periods is minimal. countries like China and India. We continue to work diligently with our suppliers to close As of December 2019, 96.2% of CPO this gap and have revised our target to OVERVIEW OF OUR SUPPLY CHAINS and PKO equivalent is traceable to mill 100% traceability to palm oil mills by 2022. Smallholder training in Riau

Palm oil suppliers

56% of our total fresh fruit bunches (FFB) total third-party FFB supply, 0.59% of it supply for Wilmar-owned mills come from is RSPO-certified. More than 90% of the SEE SUPPLY CHAIN MAP third-party supplier plantations in Indonesia, crude palm oil (CPO) and palm kernel oil Malaysia, Ghana and Nigeria (inclusive (PKO) equivalent we procure comes from of independent smallholders). Of our third-party direct supplier mills. TRACEABILITY TO MILL DATA AS OF 31 DECEMBER 2019 24 56% FFB supply to Wilmar-owned 3,946,737 MT, 40% As of year-end 2019, approximately 15% of our third- mills sourced from third-party Wilmar crop COUNTRY TRACEABILITY (%) party supplying mills within our global supply chain suppliers FFB are traceable to plantation level. We have achieved 392,868 MT, 4% Bangladesh 87.0 PROCESSED BY 100% traceability to plantation for all Wilmar-owned Scheme smallholders China-Oleo 69.7 SOURCE 2019 palm oil mills across our global operations based >90% (MT, %) China-Specialty Fats 76.6 on the set criteria. However, pursuing traceability CPO and PKO equivalent 5,419,319 MT, 56% Third-party suppliers Germany 99.8 to plantation for third-party direct supplier mills is volumes sourced from third- Ghana 100.0 significantly more complex. It is an extremely resource- party direct supplier mills India 92.3 intensive exercise, and many smaller companies do Indonesia 99.0 not have the means to carry it out. In December 2019, there was a breakthrough whereby RSPO member Ivory Coast 100.0 concession maps in Malaysia were made public Malaysia 98.5 Sugar suppliers via the GeoRSPO platform. However, challenges Netherlands 99.7 remain for non-RSPO members and some Indonesia 97% of our sugarcane comes from third- traders from Brazil, Thailand and Australia Nigeria 96.2 suppliers because of recent changes in regulations party farmers and smallholders in Australia, and the remaining 15% from India, South South Africa 99.3 prohibiting public availability of maps. We continue Myanmar and India. Of our total third-party Africa and Latin American countries. Sri Lanka 100.0 to engage with relevant stakeholders to address raw sugar sourced, 85% comes from major these restrictions. Despite this, Wilmar continually Uganda 97.2 looks for more meaningful approaches to monitor Ukraine 99.9 its suppliers to address issues of deforestation and 97% United States of America 100.0 sugarcane sourced from fire use via platforms such as our Supplier Group third-party suppliers 53.9% 17.9% Vietnam 97.6 Compliance Programme. Brazil Thailand Zambia 96.2 For our sugar division, our primary focus has been on WILMAR SUGAR 13.6% 6.1% 77% TRADED BY Australia South Africa tracing raw sugar sourced from third-party suppliers raw sugar sourced from ORIGIN 2019 for our own refineries. We have achieved 100% third-party suppliers 3.4% 5.1% traceability to mill for both origin refineries in Australia Mexico India & West Coast Central since 2018. American countries 23 Including data from downstream operations outside the scope of this report. 24 Including data from downstream operations outside the scope of this report. 40 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 41

Overview of supply chains LEGEND Fresh Fruit Bunch (FFB)

TRADING OFFICE Cane sugar TRADED PARCELS (SINGAPORE) Crude palm oil & palm kernel (CPO/PK) ORIGIN Crude/refined palm & lauric products Raw sugar Palm supply: White sugar Indonesia, Malaysia

Sugar supply: TRADED PARCELS Australia, Myanmar Refinery operation Plantation and mill operation

BULKING TERMINAL Wilmar own/third-party Plantations WILMAR ORIGIN Smallholders WILMAR OWN MILLS REFINERIES Smallgrowers FFB collection centre TRADING OFFICE (SINGAPORE)

Third-party plantations THIRD-PARTY MILLS THIRD-PARTY REFINERIES/TRADERS Smallholders Smallgrowers FFB collection centres BULKING TERMINAL

Wilmar own/ INTERMEDIATE BUYER third-party plantations WILMAR OWN MILLS SUPPLIERS

DESTINATION

Palm supply Rest of the world TRADED PARCELS

Sugar supply WILMAR New Zealand, Indonesia, DESTINATION THIRD-PARTY MILLS BULKING TERMINAL India PROCESSING PLANT

TRADING OFFICE (SINGAPORE) 42 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 43

SUPPLIER ASSESSMENTS

To support providing suppliers with guidance in implementing our NDPE policy, we assess Tracing our sugarcane potential non-compliance, evaluate progress and help identify areas for improvement.

suppliers in India via the Due diligence for potential new suppliers Assessing existing suppliers with the Supplier Reporting Tool Drishticane app A thorough due diligence process is undertaken for 100% of our potential Wilmar assesses all mills that are already supplying mills before it is eligible to enter part of our supply chain annually. We use To track and trace the locations of our Wilmar’s supply chain. The process covers our Supplier Reporting Tool (SRT) to screen various environmental and social criteria, them for environmental and social risks. This sugarcane suppliers in India, Wilmar and allows for collating of information on includes both direct suppliers and Wilmar- various aspects, including but not limited to: owned mills, which we identify based on the uses the Drishticane phone system previous year’s procurement data. Once our • Public information of potential non- suppliers have completed the SRT online, —an Android based mobile application • GPS-based area calculation providing compliances or grievances. via the OnConnect system, they will receive developed to automate sugarcane more precise locations for cane • Location and proximity to forest and a report with an individualised action plan. procurement and management systems availability. peat landscape risks through concession This ensures greater consistency in providing by providing real time input. • An ability for growers to report and maps or supply chain sourcing recommendations and secures clarity on the for buyers to assess cane quality for information. required follow-up procedures. This allows The application allows supplier data to procurement decisions. • Legal compliance. for improved sustainability performance of be captured and stored and is particularly • Ongoing access to master data and • Traceability data. our direct third-party suppliers. useful as our suppliers are predominantly real time reports on any web browser- • High Conservation Value (HCV) and smallholder farmers in India. This includes supported device. High Carbon Stock Approach (HCSA) Since its launch in 2017, the SRT has been grower names, addresses, bank account • Battery-operated Bluetooth printers assessments, where applicable. rolled out to our suppliers in Indonesia, information, type of plantation, soil type, used to issue real-time harvesting Malaysia, Honduras, Guatemala, and irrigation methods used, machine harvesting orders. The printers help to overcome This process is important to mitigate the risk Colombia. Out of our 899 suppliers from (if any), and crop test results. With all field electrical load shedding at villages and of potential breaches to our NDPE policy. If 2018, 470* completed SRTs were submitted data captured, we can generate online minimise maintenance. the company has been involved in an activity as of December 2019. This accounts for business reports and controls for review. • Elimination of data entry errors. that is in breach of our commitments, we will 52.3% of the supply base. The benefits of this systems include: seek clarification from them in order to be able to close the issue or agree on an action Our SRT allows us to collate reports on plan that meets our requirements before specific NDPE related criteria as reported by we begin sourcing from them. Unless the each supplier mill. Based on these reports, company has already published and adopted we can then identify potential risks of our ENGAGING SUPPLIERS ON OUR our NDPE policy in their operations, they direct mill suppliers. The criteria that is NDPE COMMITMENTS Adopting a group-level 25 * EY has performed limited are required to provide written confirmation reported on includes: approach towards supply chain assurance procedures on this Our NDPE policy applies to all third-party of our NDPE policy. figure transformation suppliers at group level, with no exceptions. During the year, Wilmar focused on Since the December 2013 launch of our communicating our NDPE commitments, NDPE policy, action and engagement which was updated in 2019, to our suppliers extends beyond our direct mill suppliers as we continue to address deforestation to also include the supplier at group level. in our global supply chains. We have had This refers to any parent company group formal engagements with all our Group- (or their subsidiaries) that Wilmar has a level palm oil suppliers. As of December palm oil sourcing business relationship. It Environmental Child Legality HCV, HCS Occupational 2019, over 90% of our suppliers have either: is part of our commitment to encouraging and peat impact protection health & safety industry-wide sustainability and forms the protection management • provided written confirmation to bedrock of our belief that accountability Wilmar’s NDPE policy means we must be answerable not only for • published their own NDPE policies our own actions but for those of others too. • reported NDPE compliance via our SRT platform, or While our efforts on traceability and supplier • are a member of the RSPO. assessments are undertaken at mill level, our Supplier Group Compliance Programme and Grievance Procedure complements Labour Access to Free, Prior Legal and Traceability 25 We use the RSPO definition for ‘group’ until clear this approach. internal guidelines for interpretation of rules and rights and grievance and Informed customary (or legislation is complete. standards mechanisms Consent traditional) land rights 44 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 45

SRT data is analysed in combination with a that need to be verified on the ground by mill’s RSPO-certified status and Consortium determining the overall risk levels of NDPE of Resource Experts’ (CORE) neighbourhood non-compliance. The following is done to geospatial risk analysis to prioritise the mills evaluate risks: Assessing risks related to supply chain human rights through the SRT Mills are scored and ranked for individual INDICATORS of risk and for their overall combination The SRT enables us to identify and screen for potential human right risks

within our operations and across our wider define how Wilmar’s third-party compliance Mill-based environmental risk is supply chain, covering mills and plantations team were taking forward human rights then combined with certification owned by our subsidiaries or suppliers. related issues more effectively with suppliers. status and grievances for an overall The intent therefore is to help scale more mill-based risk score Since 2017 we have worked with Verité and rapidly and identify solutions for common Mars—a global consumer goods company— labour challenges in the palm oil industry. to pilot a human rights programme in our extended supply chain, based on existing In 2019, we conducted six site visits to supplier information and findings from our supplier operations. These partners The SRT results are then supplier assessments. The available supplier have supported labour development and integrated with risk assessment information, which was then added to via the indicators for our SRT and the Nimbly SRT assessments are done using hand-held devices scores to determine risk levels SRT reporting in 2018, created a detailed audit tool. We have also developed criteria and the Nimbly tool for faster reporting while allowing roadmap in the Pasir Gudang landscape for when labour and social findings are more assessments to be conducted. in Peninsular Malaysia. The input received triggered as critical aspects requiring more from Verité helped to identify practical urgent intervention. This programme is set interventions for suppliers, and also helped to continue in 2020. Those categorised with higher levels of to be closed out through action plans with risk, or ‘high priority’ mills, then undergo time-bound commitments. We prioritise site assessments and direct engagement to engage the rest of our high priority as part of our NDPE policy implementation mills within the next year of the initial programmes. Any potential breaches are categorisation. SUPPLIER CAPACITY BUILDING

To ensure suppliers can demonstrate their and Wilmar millers in Australia. We have commitments in accordance with our NDPE improved communications through NO. OF policy, we regularly provide capacity building dialogue and regular updates. This included SUPPLIER % training programmes and access to relevant distributing bi-annual newsletters to growers, MILLS facilities. A notable palm oil engagement in publishing weekly mill production reports, 2019 included our support of third-party FFB and reaching out to communicate any suppliers in Malaysia to help achieve MSPO operational or cane supply issues. We also Total direct suppliers 899 100 certification by the government-mandated conduct frequent face-to-face sessions with Suppliers assessed as low priority mills 683 76 deadline of 31 December 2019. With our growers. This includes tours of our mills and (denominator: total direct suppliers) help, 18 FFB suppliers covering 25,223 sugar terminals, pre-season information hectares of plantation successfully achieved forums, sessions on innovative pricing and Suppliers assessed as high priority mills 216 24 certification and can now provide around pooling options, and workshops carried out (denominator: total direct suppliers) 500,000 metric tonnes of certified FFB. with subject matter experts to discuss current

and anticipated trends in the sugar market. Engagement with high priority mills e.g. field 129 60 For our sugar operations, we continually In India, SRSL also engages with cane sugar verification or received Action Plans from engage with suppliers on Bonsucro suppliers to adopt best management Wilmar (denominator: suppliers assessed as certification standards and work with practice in sugarcane farming to address high priority mills) buyers to provide them with sustainability issues such as grub menace, striga weed information such as traceability data required and vermi-compositing. from their customers. In 2019 we invested over US$ 57,000 READ MORE ON OUR SRT In 2019, we continued our work to develop on grower engagement programmes in relationships between sugarcane growers Australia and India. 46 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 47

OUR REVISED GRIEVANCE PROCEDURE SEE LIST AND DETAILS OF GRIEVANCE CASES In June 2019, we published an updated Communities commitments set out within version of Wilmar’s Grievance Procedure, the NDPE policy. This protocol identifies which was first introduced in January 2015, non-compliances that warrant action and We have increased our reporting capabilities response rate for all grievances raised, after a process of consultation with NGOs oversight additional to those described for our new Grievance Procedure. Wilmar and are working to resolve all open cases and subject experts. Apart from streamlining in the Grievance Procedure. We target to continuously target to achieve a 100% effectively and amicably. the document, the grievance mechanism establish the No Exploitation Protocol to now more succinctly addresses NDPE non- support the Grievance Procedure by Q3 compliances. We have communicated this 2020. GRIEVANCE CASES AS OF DECEMBER 2019 updated procedure to all our suppliers. The updated Grievance Procedure is A separate multi-stakeholder process also available in Bahasa Indonesia for our coordinated under Mighty Earth’s Sundaland Indonesian stakeholders. process in 2019 intended to produce 59* cases lodged: 90%* ‘industry accepted re-entry criteria’ that 54 against third-party suppliers of cases closed GRIEVANCES Concurrently in 2019 we also started the would allow previously suspended suppliers 5 against Wilmar-owned operations development of a No Exploitation specific to rejoin NDPE supply chains. However, grievance protocol. The development has so the stakeholders in the Sundaland process far involved two rounds of multi-stakeholder working group could not agree on the consultations. The No Exploitation adoption of all the criteria. The undisputed Open and Wilmar-owned Third-party Nature of open cases: Protocol is being drafted to support portion of the re-entry criteria from the closed cases: operations: suppliers: social conflict and human rights Wilmar’s Grievance Procedure to address Sundaland process has since been adopted 2 open; 3 closed 4 open; 50 closed (5*); deforestation and social objections regarding the implementation by Wilmar. conflict (1*) of our No Exploitation of People and Local *EY has performed limited assurance procedures on this figure.

SEE GRIEVANCE PROCEDURE

Engaging suppliers post suspension

Since 2015, we have suspended 26 parent Through corrective measures and action, UPDATES TO REVISED GRIEVANCE PROCEDURE companies (managing 2.2 million hectares suspended suppliers can re-enter our supply SEE RE-ENTRY of oil palm plantations and 69 mills) from chain. For clarity, we have published criteria CRITERIA our supply chain due to non-compliance with tangible measures for re-engagement, More succinctly addresses NDPE non-compliances Revised with our NDPE policy, 22 of which were otherwise known as ‘Minimum requirements related to deforestation. As of December for supply chain re-entry after suspension ‘Suspend then engage’ approach for development by adopting a conversion 2019, 10 out of the 26 parent companies due to no deforestation and/or no peatland Grievance suppliers at group level cut-off date of 31 December 2015 (managing 0.7 million hectares of oil palm (NDP) non-compliance’. It is the suspended Procedure plantations) met Wilmar’s re-entry criteria supplier’s ability to meet these requirements Effective 1 January 2019, suppliers New re-entry criteria while 16 parent companies (managing 1.5 that determines the resolution of their non- involved in verified cases of deforestation million26 hectares of oil palm plantations) compliance status and any potential return and/or new development on peatland New protocol being drafted to address remain on our suspension list. to our supply chain. The document was face immediate suspension no exploitation aspects of NDPE policy – finalised and published on our website in to be published Q3 2020 It is estimated that 6.4 million hectares have Q3 2019. Recognises the provision of Recovery been spared from oil palm development Plans required for past non-compliances in Indonesia. This is largely attributed We guide our suppliers to close the gaps related to deforestation and peat to the individual NDPE commitments of identified by sharing documentation, key companies, alongside government assisting suppliers to develop standard policies 27. To avoid any suspension from operating procedures (SOP) and Inclusion of commitment towards the protection of human inadvertently contributing to a growing sustainability policies, and helping to rights defenders, whistleblowers, complainants and unsustainable market or negatively conduct field assessments that inform impacting oil palm smallholders, Wilmar supplier compliance. community spokespersons, while ensuring a provision of sees post-suspension engagement as crucial, anonymity for whistleblowing and reporting of grievance enabling us to assist suppliers in bringing cases their operations to compliance.

26 We reported this number as 1.02 million hectares in our Annual Report 2019, which was pending verification at the time of its publication 27 ‘28 Percent of Indonesia’s Palm Oil Landbank Is Stranded’. Chain Reaction Research, 9 July 2019, https://chainreactionresearch.com/report/28- percent-of-indonesias-palm-oil-landbank-is-stranded/ Accessed 18 February 2020. 48 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 49

Successfully re-engaging suspended suppliers

KPN CORPORATION (PREVIOUSLY GAMA PLANTATION GROUP) MOPOLI RAYA GROUP

In June 2018, Greenpeace released a multi-year process to implement their new A 2015 Greenomics report uncovered Wilmar’s ongoing involvement—with report linking GAMA Plantation Group to NDPE policy. So far, they have undertaken deforestation in the biodiversity-rich support of the Earthworm Foundation— deforestation and peat clearance practices. remediation actions to restore riparian areas region of Leuser of North Sumatra that has helped Mopoli Raya to navigate Wilmar responded by suspending trade and develop Recovery Plans in Kubu Raya, was linked to the Mopoli Raya Group, which tenurial conflicts and illegal community immediately with all companies identified Sambas, Jambi and Merauke, with a focus at the time was a Wilmar supplier. Wilmar logging. Mopoli Raya has since announced within this group, thus triggering a on social forestry programmes. subsequently suspended the group that their own NDPE policy and established spate of remedial actions. These former year. Following their suspension, Mopoli a sustainability team to lead on their independent companies (consolidated into In early 2019, Wilmar and Nestlé carried agreed to a moratorium on land clearance commitments. GAMA Plantation Group and now known out a site visit in Papua to witness the in compliance with Wilmar’s NDPE policy. as KPN Plantation) operate around 20 mills implementation of their NDPE policy, A registered assessor was subsequently over a planted area of 200,000 hectares Recovery Plans and understand issues engaged to conduct an HCS assessment in the Indonesian regions of Sumatra, and challenges in the implementation. As a and HCV pre-identification. Kalimantan, Sulawesi and Papua. In 2019, sign of faith in the progress made by KPN KPN Plantation—in collaboration with Plantations, Nestlé publicly reinstated the Aidenvironment Asia—embarked on a group into their supply chain in early 2019. Wilmar’s ongoing involvement— with support of the Earthworm SEE BOTH CASE STUDIES Foundation—has helped Mopoli IN DETAIL Raya to navigate tenurial VIEW A SHORT VIDEO conflicts and illegal community HIGHLIGHTING MOPOLI RAYA’S JOURNEY logging.

July 2018 October 2018 September 2019 Addressing non-compliance

Riparian area with visible signs of remedial action within 3 months due to restoration efforts undertaken through recovery plans

Wilmar acknowledges that establishing In early 2019, Wilmar and Nestlé carried a deforestation-free supply chain from out a site visit in Papua to witness the 2020 onwards requires the provision of implementation of their NDPE policy, remediation measures. Recovery Plans and understand issues We require supplier groups with non-compliant forest engage and support our suppliers throughout and challenges in the implementation. clearing and peat development after the cut-off date this process. Currently, there are no industry-wide of 31 December 2015 to submit Recovery Plans to accepted criteria for what constitutes an adequate address issues on these past non-compliance(s). Recovery Plan. In 2019, through a group process convened by the Mighty Earth, Wilmar worked with Recovery Plans may include protecting and restoring other palm oil companies and NGOs to define such ecosystems or assisting local communities to secure criteria. Working group discussions are ongoing. social forestry rights. Wilmar’s sustainability teams 50 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 51

PROACTIVELY MONITORING Stakeholder commentary DEFORESTATION WITHIN THE SUPPLY CHAIN

by KPN Corporation As part of our full supplier compliance verification framework—and in addition to our SRT and grievance mechanism—Wilmar also launched the Supplier Group Compliance Djuaman Lie, KPN Plantation Division, Legal Head Programme (SGCP) in December 2013 to proactively monitor risk of association at supplier group level. This proactive monitoring programme is delivered by Aidenvironment Asia (now known as Earth Equalizer). The platform provides deforestation and fire alerts that are directly actionable, as the occurrences are directly linked to the concessions The biggest challenge we face on and companies that own them. The platform, therefore, enables us to better identify deforestation or peat development non-compliance occurring within our supply chain. the ground is having to balance our The programme currently monitors over 20* million hectares and covers over 500 parent sustainability commitments with the groups of company-owned or managed lands both within and beyond Wilmar’s existing Examples of longterm community supply chain. Any verified deforestation will trigger the grievance procedure. needs of the communities in areas we livelihood programmes introduced by KPN include fish farming in operate in. Papua. READ MORE ABOUT OUR SGCP APPROACH AND MONITORING METHODOLOGY As most of KPN’s plantations are in rural requirements, an additional challenge was areas where economic development is the time community members needed— limited, communities rely on KPN to help many of whom live day-to-day and therefore develop the local economy. Except for the face unrelenting pressures—to understand company’s established operations, KPN and adapt to long-term programmes. An plantation development is now limited. example of these programmes includes When we began our NDPE journey in 2018, fish-farming projects which were introduced New radar monitoring technology KPN faced difficulties in enforcing a work- by KPN to offer long-term benefits for stop order until we conducted full HCV community members. Besides being a food to detect deforestation and HCS assessments. At the operation source, the intended outcome was to enable sites, members of local communities who the community to rely on aquaculture as an In October 2019, Wilmar joined nine for companies and other stakeholders to were employed by KPN were conducting alternative source of income. Although it was other palm oil producers and buyers at a identify signs of deforestation in near real land clearing activities—which were halted. a time-consuming effort, the community now landscape level to support and fund the time and with greater accuracy, beginning Consequently, KPN had a responsibility to understands the benefits of the programme development of a new, publicly available, with Indonesia and Malaysia. With this find alternative roles within its operations for and appreciates its value in improving their radar-based forest monitoring system known information, we can mobilise rapid follow- the local community. The abrupt transition livelihood. as Radar Alerts for Detecting Deforestation up actions on the ground. posed significant challenges for KPN, (RADD). This partnership will make it easier especially during the initial three months. About In June 2018, Greenpeace (GP) released Fortunately, with support from the rest a report in which a group of companies, of our stakeholders as well as through together as GAMA Plantation Group, had open dialogue and engagement efforts, identified breaches to Wilmar’s NDPE community members understood the policy commitments. The report implicated necessity of halting clearing activities during three plantation companies in particular for READ MORE ABOUT RADD the transition period in order to manage the deforestation and peat clearance activities. company’s sustainability commitments. With Wilmar has never sourced from these said support from KPN, the transition period plantations. However, because of GP also enabled workers to develop new skills. report’s findings, on 22 June 2018 Wilmar During this challenging period, Wilmar suspended all companies that were listed provided us with the necessary support. as GAMA Plantation Group. Full support This included observing progress on-site, and commitment from top management discussing programmes, and providing have played a pivotal role in getting feedback for improvement as required. GAMA Plantation Group (known as KPN Today, KPN and affected communities Plantation since October 2019) to commit have made significant progress towards and implement the NDPE policy across their overcoming this hurdle. Noting the reduction oil palm operations. Wilmar reinstated KPN in total planted area due to our NDPE policy Plantation as a supplier in 2019. * EY has performed limited assurance procedures on this figure 52 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 53

Environmental custodianship

This commitment came after having acknowledged the major Wilmar pledged to reduce greenhouse gas (GHG) risks faced by communities, ecosystems and supply chains due emissions on existing plantations progressively, while to climate change. strictly prohibiting new development on peatland As environmental stewards, we strive to protect rare, threatened and endangered species while focussing efforts towards wildlife regardless of depth and enforcing a strict No Burn conservation. We also continue our ongoing efforts to preserve policy for new developments and land preparation. water quality and, where possible, to reduce the usage of chemicals.

The conservation team in Sabah conducting a species survey in a riparian zone. Key milestones in 2019

CONSERVATION 31,375 ha 826 ha at sugar ENERGY Increase of 16% 350,000 MWh in Australia CONSUMPTION at palm oil estates operations from 2018 in renewable energy mix 183,777 MWh in India —about 10% of Wilmar’s total This covers: within total energy consumption of exported renewable energy to landbank. This is equivalent to 675 ha at Australia estates national grids 58,865 football fields or about the 151 ha at India mills size of the country of Maldives This covers: PEAT 2.55% 0.43% 18 siamangs of total Wilmar planted area classified of total conservation area is peat HCV area: 81.3% successfully reintroduced to PT. KSI as peat Riparian areas: 18.6% conservation area HCS forests: 0.1% > 8,000 812.73 ha people participated in conservation FIRE MONITORING 60% > 20* mil ha & MANAGEMENT Total riparian area restored in awareness programmes reduction in number of fire incidents associated with supply chain monitored Indonesia and Malaysia in 2019 as compared to 2015 which externally for fires via the Supplier had similar rainfall conditions Group Compliance Programme 24 medium and large 32 Wilmar honorary wildlife wardens in Sabah mammals recorded since Wilmar honorary wildlife 2013 38 at Bukit Durang conservation area WASTE rangers in Sarawak 74% in Sarawak. 6 additional species MANAGEMENT solid waste generated re-used as fuel or organic fertiliser recorded from 2018–2020

WATER & Achieved 2023 Within legal limits for GHG EMISSIONS 24th 51.5% reduction EFFLUENT water consumption intensity targets for BOD and COD methane capture facility built in Group net emissions MANAGEMENT Central Kalimantan and Sumatra mills levels for Indonesia and Malaysia for Wilmar RSPO-certified mills upstream and downstream operations

571,596 MT CO2e total emissions avoided due to 47.5% reduction methane captures in overall emissions, incl. outgrower As per Bonsucro’s best practice, emissions CHEMICAL USE Current range of below agro-chemicals application for sugar 1,000 units/ha largely in line with palm industry best crop kept below 5 kg active practice ingredient/ha

*EY has performed limited assurance procedures on this figure. 54 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 55

Managing climate change risks

In the face of unprecedented, Addressing sustainability at scale through interconnected environmental global jurisdictional approaches challenges, we must take action to

Wilmar supports avoid negative consequences for the landscape and people and ecosystems that sustain jurisdictional approaches us. Our practices are aligned with the as alternative strategies to achieving sustainable components in SDG 15 (Life on land). practices at scale. One of our focus areas is managing the Wilmar’s approach includes the elimination These approaches assist in aligning input into the approach for smallholders impacts of climate change due to excess of peatland deforestation and development. interests and coordinate actions in the state. As of late 2019, the JCSC GHG emissions. There is a need for an We are also committed to best management among governments, businesses, local has approved the setting up of a full-time urgent reduction of GHG emissions by practice for soils and peat. We reduce communities, and NGOs to address secretariat to ensure the efforts of the 7.6% per year from 2020 to 2030 in order to resource use and GHG emissions at Wilmar- pertinent challenges such as land-use state of Sabah stay on target. meet the cap of a 1.5°C increase in global owned plantations by converting waste to planning and tenure clarification, temperatures.28 Climate change, and the renewable energy for fuel and composting smallholder inclusion and production Wilmar is also a contributor to a resulting rise in global temperatures, has as organic fertiliser. We also use sugar mill practices. jurisdictional approach initiative convened a direct correlation to increasing pressure by-products to increase farm productivity; re- by the Tropical Forest Alliance (TFA), which on fertile soils. This will lead to drastic use wastewater throughout the production Wilmar is part of the Malaysian state of aims to develop guidelines for sustainable challenges such as severe weather and process; have installed solar panels at plants Sabah’s Jurisdictional Certification Steering production at a landscape level before concerns over food security. Wilmar and methane captures at palm oil mills; Committee (JCSC), which functions to help being localised and adapted to applicable understands the risks posed to agriculture, and employ other best practices. We also the Sabah government to achieve its vision regions in South East Asia. Under this land use, food production and people and monitor land use change and hotspots; of producing 100% certified sustainable umbrella initiative we will work with our has significantly invested in resources and educate community members on fire risk; palm oil under RSPO certification by 2025. peers to support the programme and look focused our initiatives to manage these risks equip them with agronomy techniques; and Wilmar has been part of the working group into implementation in Sabah and the parts in our operations and supply chain through: invest in R&D for high-resistant and high- to map out HCV and HCS areas in the of Indonesia where we operate. yield seeds to adapt to extreme weather. entire state of Sabah and has also provided • Climate change mitigation by We expect our suppliers to adopt climate employing policy and practices to change mitigation and adaptation practices reduce carbon emissions and land in accordance with our efforts to ensure use change, and NDPE compliance at group level. • Climate change adaptation by equipping operations and personnel with measures and programmes to manage the effects of climate change.

28 Emissions Gap Report 2019’. United Nations Environment Programme, Accessed 12 December 2019. 56 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 57

PROTECTING, CONSERVING, RESTORING AND ENHANCING BIODIVERSITY

The New York Declaration on Forests (NYDF) Wilmar’s NDPE policy emphasises that Wilmar conservation recognised the need to restore 150 million high carbon stock (HCS) forests and hectares of degraded landscapes and high conservation value (HCV) areas in programmes 2019 forest by 2020 and 350 million hectares all estates within our global supply chain by 2030.29 We intend to do our part as must be protected and conserved. The conserving, restoring, and protecting High Conservation Value Resource Network REINTRODUCING LOCALLY EXTINCT SPECIES INTO CONSERVATION AREAS biodiversity remains integral to Wilmar’s (HCVRN) and High Carbon Stock Approach environmental management strategy. We (HCSA) toolkit guide identification of these In Solok, Sumatra, Wilmar has overseen an ideal habitat and food source, critical have also strengthened partner engagement areas. As of November 2018, the revised the conservation of 1,760 hectares at to the siamangs’ survival. Following IUCN and industry initiatives to meet the global RSPO Principles and Criteria (P&C) now one of our operations, PT. Kencana Sawit soft release guidelines, we introduced nine commitments designed to halt deforestation include HCSA for upcoming assessments. Indonesia (KSI), which is home to 97 male and nine female siamangs in two by 2020. Strategies include contributing to In most circumstances, we will integrate fauna species and 44 flora species. Of batches, totalling 18: seven in 2015 and platforms such as the RSPO, Tropical Forest HCV and HCSA assessments using HCVRN the wildlife and animals currently found 11 in 2018. The siamangs have adapted Alliance, and the Accountability Framework licensed assessors. in the forest landscape, 18 are classified well, with three infants being born from Initiative. as either endangered, vulnerable, near 2016 to 2019. Unfortunately, one infant threatened or not evaluated according to has since died as a result of a bee sting. the International Union for Conservation of Nature and Natural Resources (IUCN) A monitoring team, including local CONSERVATION AREA 2019 (ha) Red List of Threatened Species. By national community members, works closely with law, 26 species are protected, of which six the Kalaweit Foundation to monitor the have been identified as rare, threatened population’s health and behaviour daily

15,086 and endangered (RTE). to ensure that the sustainably managed production landscape continues to support The identified HCV area was originally the survival of the endangered species. home to gibbons prior to becoming locally A research station was also built by our extinct. In 2014, Wilmar partnered with the operational team in PT. KSI. This is used Kalaweit Foundation (Yayasan Kalaweit) by the monitoring and animal patrol teams to rehabilitate siamang gibbons into the to carry out their work and guard the HCV

6,744 HCV area. The local tree species provides area.

3,009 2,807 APPLYING LOCAL KNOWLEDGE TOWARDS CONSERVATION MANAGEMENT 1,920 1,725 675 HCV and riparian areas are critically certain periods the community safeguard 83 151 important for their high biological and fish in a protected pool (lubuk larangan). entral West Sumatra Saba Saraa ana ieria ustralia India ecological value, but also fundamental to This requires approval from a community alimantan alimantan meeting the needs of local surrounding head who will make a devotion to the river communities and are often essential before permitting fishing as a source of As of December 2019, a total 31,375 the entire periphery of our mills and plants. to their traditional cultural identity. food. hectares at our palm oil estates is conserved, During the course of 2018 and 2019, we Wilmar appreciates these socio-cultural almost 10% of our total landbank. Compared have planted over 9,000 trees, totalling 151 bonds, engaging and learning from local Wilmar’s HCV management team works to 2018, 1,175 hectares in Nigeria have been hectares, at our seven mills. communities who depend on the forest with representatives from the Talau and Sei added due to the inclusion of greenfields in and rivers that surround them. Kunyit communities to protect and manage Calaro, while 675 hectares in Sabah is not Through assessments conducted to date for these HCV and riparian areas. These suitable for planting and has been added our palm oil operations, all identified HCS For instance, water catchment areas in and partnerships were established through to the HCV area. forests and HCV areas are being monitored around our PT. KSI operations in Indonesia formal agreements with the communities and managed as conservation areas under are sources of clean water and protein for in order to uphold their traditions and In Australia, we have reserved 675 hectares dedicated management plans. To ensure that the surrounding village units (Minangkabau employ local knowledge on management of vegetation categorised as ‘endangered’ we consistently improve on the monitoring nagaris), Talau and Sei Kunyit. Traditional of the areas, including settling any HCV or ‘of concern’ at our sugar estates in line and management of these reserved areas local knowledge demands that during management disputes. with local laws. In India we follow regulatory and conserve our biodiversity, we have requirements in allocating 33% of our facility developed a range of programmes involving compound areas to be planted with native our workers and local communities. tree species. These green belts are to cover

29 ‘Goal 5’. New York Declaration on Forest Progress Assessment, Accessed 16 March 2020. 58 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 59

IMPROVING HABITATS THROUGH RIPARIAN RESTORATION CREATING AWARENESS ON RTE SPECIES AND BIODIVERSITY CONSERVATION

Riparian areas bordering rivers and water restoration areas, establishing nurseries and Wilmar has established the annual Wildlife schools. In 2019, the annual programme bodies are critical habitats with significant planting trees in designated areas. Wilmar Outreach and Awareness Project. The was enhanced at our Sabah operations environmental benefits for plants and commissions various experts to join field objective was to raise stakeholders’ as we conducted extensive engagement communities. Natural vegetation also staff and HCV officers to conduct surveys awareness on RTE species and wildlife with more than 1,800 people at Sugut, serves as a buffer to pollutants entering and seedling collection, establishing the conservation in Sabah and Sarawak as Labuk and Segama in July, November a stream from run-off and erosion. However, nurseries, planting and maintaining trees many species risk displacement due to and December of that year. Similarly, in some of these areas have been disturbed as well as monitoring and management of human activity, especially poaching and Indonesia Wilmar’s HCV team conducted in the past through community activities the area. Job opportunities are also given illegal wildlife trading. stakeholder engagement involving workers or agricultural development. to local community members who are hired and local communities. In 2019, the to work at the nurseries. We collaborate with government outreach totalled over 6,200 participants. As part of our management and monitoring agencies such as the Sabah Wildlife plans, trained teams have worked to To date, our total riparian area at our palm Department (SWD) and the Forestry Wilmar is among the few oil palm companies restore degraded areas to their original oil operations make up 5,842 hectares of Sarawak Corporation (FSC) and NGOs with personnel that have been appointed condition to enrich the HCV areas and the land we conserve. Of this total, 812.73 such as HUTAN-Kinabatangan Orangutan as honorary wildlife rangers30 and wildlife improve the local wildlife habitat. This has ha were established via our restoration Conservation Project and the Bornean wardens.31 Honorary wildlife rangers have been applied through frequent monitoring efforts. Sun Bear Conservation Centre (BSBCC) the authority to halt any illegal activity and management by identifying priority who collectively share their considerable threatening wildlife, including to stop and knowledge on wildlife conservation. search airplanes. As of December 2019, we had 32 honorary wildlife wardens in INDONESIA • 2012-2019 We also create awareness by engaging Sabah and 38 honorary wildlife rangers in • 321.53 ha across 8 sites restored with plantation and mill employees, local Sarawak, of which a total of ten are women. • 55,685 trees planted communities, and children from local • 6 nurseries established, with almost 40,000 seedlings and 13,737 trees from 96 species FINDINGS FROM THE UNIMAS PARTNERSHIP BIODIVERSITY STUDY AT BUKIT • annual surveys conducted monitoring mortality. 2019 mortality rate of 25%, DURANG, MIRI, SARAWAK signifying 75% thrived in riparian areas • annual rapid survey indicate that the restored areas are now home to more Since 2014 Wilmar has partnered with the from 2018 to 2020 have recorded an birds and reptiles than prior to 2012 University of Malaysia Sarawak (UNIMAS) additional six species found in the HCV to gather baseline data on the diversity of areas. A cumulative total of 24 species of flora and fauna species found in HCV areas medium and large mammals have been within Wilmar’s Saremas and Segarmas observed and recorded at the Sarawak In Malaysia, we work with the Sabah Forestry Department on our riparian MALAYSIA oil palm plantations in Sarawak. Surveys estate from 2013. restoration programme, which is conducted within two areas at our Sabahmas and Sapi estates. More than RM2.8 million (approximately US$ 650,000) has been Initial findings indicate: invested in the Segama and Sepapayau River projects to date.

• The HCV areas harbour more diverse, endemic and IUCN-classified near threatened species compared to the rest of the estate • Certain areas such as the Bukit Durang forests are rich in biodiversity and specifically Segama River, Sabahmas Sepapayau River, Sapi have a high diversity of undergrowth plant species with the palm and aroids families. According to the 1998 Sarawak Wildlife Protection Ordinance, two protected species • 2009-2014 • 2014-2019 were also recorded, namely the Dendrobium orchid and the longjack flowering plant • riparian area restored and • 20m buffer zone set alongside • There is a diverse composition of fish fauna, which is moderate compared to other rehabilitated, river buffer zone river, amounting to 110.23 ha aquatic habitats in Sarawak increased from 20m to 50m; total • ~28,000 trees seedlings of 51 • The conservation area at Bukit Durang has significant conservation values which ha increased from 93.34 ha to tree species planted needs protection from encroachment and habitat disturbance 380.97 ha (additional 287.63 ha) • initially degraded riparian areas • Tree communities are rich and diverse, with an uneven spatial distribution around • ~68,000 trees seedlings of 19 now enriched and enhanced. Saremas and Bukit Durang’s forested areas tree species planted • suitable habitats and wildlife Wilmar has incorporated these findings into our management and monitoring plans corridor provided for endangered and continually strives to improve our monitoring of the HCV sites. and protected species e.g. proboscis monkey, silvered langur, oriented pied hornbill SEE MORE ON OUR CONSERVATION EFFORTS

30 Appointed under the Sabah Wildlife Conservation Enactment, 1997 31 Appointed under Sarawak Wildlife Protection Ordinance, 1998 60 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 61

Reducing emissions through methane captures facilities

To mitigate mill methane

REDUCING GHG EMISSIONS emissions, we have

We have a commitment to progressively reduce our invested in methane greenhouse gas emissions at Wilmar-owned operations. We have set a capture plants across This will be achieved by our efforts to halt deforestation, best management practices on cultivated peatland, and target to reduce our operations. treating palm oil mill effluent to reduce methane emissions. GHG emissions The GHG Protocol benchmark is used to quantify our We use these for flaring, generating the construction of 25 methane capture palm oil and sugar mill emissions. We have set a target to intensity by 15% electricity or feeding into boilers to plants at CPO mills by commissioning the reduce GHG emissions intensity by 15% for all our palm for all our palm replace burning of palm kernel shells. An flare at PT. Sarina Titian Permata 1 in end oil mills by 2023 (set against our 2016 baseline of 0.82 operational methane capture facility can February 2020. With 25 methane captures in metric tonnes of carbon dioxide equivalent per metric oil mills by 2023 potentially reduce a palm oil mill’s GHG full operation, we estimated in 2015 being tonne of crude palm oil processed (MT CO e/MT CPO)). 2 emissions by 90%. In 2019 we completed able to avoid 500,000 MT CO2e of emissions This applies to all our mills in Indonesia, Malaysia, Ghana construction of our 24th methane capture annually. As of December 2019, we see and Nigeria, regardless of certification status. In 2019, facility at our CPO mill, PT. AMP Plantations, a 571,596 MT CO2e of total emissions our GHG emission intensity was 0.77 MT CO2e/MT CPO, in Sumatra. Subsequently, we have avoided at all our mills, far exceeding our 5% higher compared to 2018 intensity. This is due to our achieved our 2020 target to complete initial estimations. adoption of a more conservative calculation approach for palm oil mill effluent which takes into account the emissions of treated effluent through later stages of anaerobic ponds.

TOTAL METHANE CAPTURE PLANTS AND EMISSIONS AVOIDED 2015-2019

SCOPE 1 & 2 GHG EMISSIONS BY COUNTRY AND BUSINESS ACTIVITY 2019 (MT CO2e) 588,545 571,596 515,027

EMMISION INDONESIA MALAYSIA GHANA AUSTRALIA MYANMAR INDIA 383,235 BY COUNTRY & NIGERIA & NEW ZEALAND

180,000 Scope 1 3,803,456 509,366 47,993 252,977 7,625 334,114 (estimated)180,000

Scope 2 427,083 202,048 63 49,140 292 2,608 9 17 22 23 24

201 201 201 201 2019

NOTE:

EMISSIONS OIL PALM PALM OIL PALM SUGAR SUGAR MILLS SUGAR It can take up to six months for a methane capture facility to operate at BY BUSINESS PLANTATIONS MILLS REFINERIES/ FARMS REFINERIES/ Methane capture plants (no.) full capacity as well as optimum operational efficiency/maintenance to ACTIVITY OTHERS OTHERS maximise the achievable reductions at each plant. Therefore the emission /DIVISION figures are not directly correlated to the number of facilities year-on-year Total emission reduction (MT CO e) 2 but are reflective of those in operation at respective efficiencies from Scope 1 389,875 1,432,962 2,185,802 14,113 226,438 706,341 previous years. Data for 2015 is based on our estimated emission reduction of 20,000 MT CO2e per plant.

Scope 2 3,423 296 625,416 1,224 24,461 26,411 62 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 63

PalmGHG Despite these increases, our overall net This is because an additional mill received GHG emissions have decreased due to a RSPO certification in 2019, resulting in an For our RSPO-certified palm oil operations from our RSPO operations are from historical few factors. We largely attribute this to our increase in planted area figures. Mill credits we also use the RSPO PalmGHG calculator land use change (55%), oxidation of existing peat oxidation figures, which show a drop have also more than doubled from 2018 as to report annual progress in monitoring and planted peat (17%), and palm oil mill effluent in emissions from 30% in 2018 to 17% in additional biogas plants have come into reducing significant pollutants and emissions (POME) (13%). Compared to 2018, emissions 2019, partly due to Wilmar aligning with operation. This replaces the need for palm from plantation and mill operations. We from our land use change increased from the guidance and classification of peat kernel shells as boiler fuel and has led to mapped our 2019 emissions using version 42% to 55%. We attribute this rise to our areas by the Ministry of Environment and an increased amount becoming available four (v4) of the said calculator. improved geographic information system Forestry of Indonesia 32. Conservation area for sale. In 2019, our data recording also (GIS) which now provides more accurate figures increased by 4% thereby contributing improved which can also be attributed to In 2019, our overall net GHG emissions imagery on previous types of land use to the decrease in overall net emissions. the more positive figures. (excluding estimated outgrower emissions) within our estates. In 2019, we used more for the Group’s RSPO mills and estates was compound fertiliser which has also led to

849,226 MT CO2e—a 51.5% decrease from an increase in total emissions from 4% in 2018. The biggest sources of GHG emissions 2017 and 2018 to 7% in 2019. SEE OUR CONSERVING AND RESTORING PEATLANDS SECTION FOR MORE INFORMATION PEAT RECLASSIFICATION

55% 17% EMISSION SOURCES AND SINKS 2018-2019 (MT CO e/YEAR) Historical land use Peat oxidation 2 change allocation

GHG 7% 13% EMISSIONS CO2 emissions from POME BY SOURCE fertilliser 2019 (%) 6% 0% N2O emissions Fuel consumption (mill) 493,938 367,360 485,081 291,609 145,909 196,027 175,868 1,606,786 55,287 51,071 1,522,250 1,074,914 1,752,526 849,226 2% 0% 12,323 11,847 69 62 Fuel consumption Grid electricity (field) utilisation -77,562 -126,745 -1,604,662 -1,670,966 -296,347 -112,367

NET GHG EMISSIONS AND CARBON INTENSITY FOR RSPO OPERATIONS 2017-2019 emissions 2 O emmision 2 Fuel consumption (field) Peat oidation Sequestration in conservation areas POME Fuel consumption (mill) Grid electricity utilisation Mill credits net emissions Group from fertilliser from N 288 277 Historical land use change allocation Crop sequestration CO NOTE: Outgrower emissions are estimated 2018 2019 based on the highest emission intensity of our own estates supplying to each mill multiplied by the total volume of outgrower Including estimated outgrower emissions, operations, which account for 88% of 149 FFB supply. Outgrowers include all our GHG emissions totalled 2,036,815 MT the Group’s emissions. This was due to suppliers that are not from Wilmar 3,881,301 CO e in 2019—a reduction of 47.5% from corresponding emissions after peatland 4,033,437 2 or scheme smallholder estates. 2018. We attribute the reduction to a 50% reclassification. drop in total emissions at our Indonesia 2,036,815

201 201 2019 32 Based on the Ministry of Environment and Forestry of Indonesia’s Ministerial Decision (SK7099/MENLHK-PKTL/IPSDH/PLA.1/8/2019) on Penetapan Indikatif Penghentian Pemberian Izin Baru Hutan Alam Primer dan Lahan Gambut Tahun 2019 (Indicative Determination of the Cessation of Granting Net GHG emission (MT CO e) Carbon intensity (MT CO e / MT CPO) 2 2 of New Permit for Primary Natural Forests and Peatlands 2019) 64 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 65

ENERGY CONSUMPTION CONSERVING AND RESTORING PEATLANDS

In 2019, Wilmar recorded 47,658,835 MWh total energy Peatland forests store twice as much carbon as the rest of the consumption across all palm and sugar operations. world’s forests but once drained or in very dry conditions, are highly prone to catching fire. Out of this total, 35,763,892 MWh is There is minimal usage of other fuel sources, generated from renewable biomass sources which are used for start-up processes or According to Global Forest Watch Fires Kalimantan. Our conservation area currently which comes from our palm and sugar during maintenance periods. data, in 2019, 42% of fire alerts detected comprises 135 hectares of peat, of which 127 operations, representing 75% of total energy in Indonesia occurred on carbon-rich hectares come from our Sumatra operations mix. This is a 16% increase from 2018 when In Australia, Wilmar is the largest producer peatlands 33. Draining one hectare of tropical alone. our renewable energy mix was at 58.8%. of renewable biomass energy. Our peatland will produce an average of 55 cogeneration process generates a total metric tonnes of carbon dioxide per year. For planted peat areas, we use best The main energy sources for our palm oil capacity of about 199 megawatts. Three With a cut-off date of 31 December 2015, management practices as defined by mills come from renewable biomass such as of our mills use cogeneration facilities to Wilmar has prohibited any development on peat experts and the RSPO. This includes empty fruit bunches (EFBs), mesocarp fibre increase their export capacity and further peatland regardless of depth and supports maintaining water tables at appropriate and kernel shells. For our sugar operations drive efficient biomass use. Surplus bagasse the conservation and restoration of these levels and exchanging best practice on in Australia and India, cane bagasse is the is stockpiled on specially designed pads to areas to avoid release of carbon emissions. platforms such as the Tropical Forest Alliance main source of fuel required to power mills. ensure a ready source of renewable energy 2020. We also work with the Indonesian outside the crushing season. Of our total planted area, approximately Peatland Restoration Agency (Badan 6,860 hectares (2.55%) are classified as Restorasi Gambut (BRG)) towards national peat, about two-thirds of which are in West peatland conservation targets.

Exporting electricity from cane bagasse cogeneration to national grids

We export a significant portion of the megawatt hours (MWh) were exported to electricity produced to national grids. national grids: 350,000 MWh from eight PLANTED This contributes to a reduction of regional mills in Australia, and 183,777 MWh from PEAT AREA BY GHG emissions. In 2019, a total of 533,777 five mills in India. REGION 2019 (ha, %) Total: 6,859 ha Promoting green energy in sugarcane farming in India

Karnataka State in India supplies power from banks, which allows the farmers to claim national grids to farmers on a cost-free basis, subsidies. Since 2014, we have progressively but these farmers end up with limited access installed 591 pumping systems across the 0 ha, 0% 4,548 ha, 67% to power, especially during peak summer irrigation sources of our farmer’s operations. Central Kalimantan West Kalimantan months. This causes a detrimental effect This includes open wells, bore wells, and 2,213 ha, 32% 11 ha, 0% to crops because of insufficient energy for rivers. Because of this initiative farmers can Sumatra Sabah maintenance and harvesting. now enjoy electricity throughout the hot summer months and have also recouped 88 ha, 1% Sarawak To address the issue, SRSL has implemented their investments. Crops can continue being solar-powered irrigation pumping systems irrigated as scheduled. This has led to higher as an alternative power source for the productivity yields of 25–30% compared to

farmers and their estates. This scheme was when power access was limited. Tree planting in the riparian area at Wilmar's Sabahmas plantation implemented with financial help from local

33 ‘Fire Report covering data from 1 January 2019–30 September 2019’. Global Forest Watch, Accessed 18 February 2020. 66 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 67

Fire monitoring and management

In recent years we have witnessed longer droughts and a higher plantations and five kilometres outside of compared to 2015, a year that saw similar number of recorded fires, as global temperatures continue to rise our concession boundaries will be relayed rain and weather patterns to 2019. In by our GIS team to the team on-site. A team Sumatra, the number of fires recorded is and the world faces more extreme weather conditions. 2019 saw comprising members from Wilmar’s GIS, higher than the hotspots because some of catastrophic fires throughout Australia and Indonesia—two of Conservation and Management departments these fires were small-scale and therefore the regions where a significant portion of our oil palm and sugar are then mobilised to verify data received not registered by the hotspot monitoring businesses operate. from the satellite imagery. In cases where system. In comparison, Sumatra’s 64* fires fires are confirmed, our fire response teams contributed to 50* hectares burnt while are immediately dispatched to extinguish in West Kalimantan the 27* fires resulted the fires. in 191* hectares burnt thereby signifying From August to September 2019, forest in the north of the state. However, as sugar the size of the small-scale fires in Sumatra. fires resulted in a haze blanketing over is a dry crop subject to erratic weather, we In 2019 there were a total of 143 hotspots Sumatra and Kalimantan, as well as parts are not immune to such crises. We permit detected at our Indonesia operations and Within a five-kilometre radius of our of Malaysia and Singapore. Indonesian burning in our sugarcane farms in the 16636* fires recorded, affecting about 954* concession boundaries, a total of 1,607 forest fires pose a huge risk for both our Burdekin region of Queensland, only during hectares. This represents a reduction in hotspots were recorded in 2019 of which employees and the communities living in cane harvesting and under strict, prescribed number of fire occurrences by 60%, and 214 turned out to be actual fires. and around our estates. It also jeopardises circumstances. The Burdekin is one of the reduction in fires by hectares by 53% when the livelihoods of the local community and regions where burning prior to harvesting impacts our operations requiring resources provides the most environmentally friendly to be diverted to suppress any fires. outcome, due to the cane and soil conditions 34. Wilmar adheres to all applicable local In December 2019, Australia began regulations and have implemented our own experiencing a series of massive bushfires, robust fire standard operating procedures HOTSPOTS VS ACTUAL FIRES HOTSPOTS VS ACTUAL FIRES 2019 - fuelled by record-breaking temperatures (SOP). In 2019, 3,044 hectares were burnt 2019 - WILMAR’S CONCESSIONS WITHIN 5KM RADIUS OF WILMAR’S and months of severe drought. As a result, at our sugar operations using prescribed IN INDONESIA (NO.) CONCESSION BOUNDARIES IN people and wildlife were killed, millions of and controlled methods. INDONESIA (NO.) hectares of land burnt, residential towns were severely affected, and air quality Our Myanmar operations use an overhead diminished drastically. While such blazes irrigation system and do not use burning and haze are cyclical occurrences in both methods for harvesting. While we do not regions during the hotter months, 2019 own farming operations in India, our mills witnessed particularly severe conditions. do encourage no burning methods for all Although major affected areas were in New smallholder suppliers. We also implement South Wales, there was no direct impact to awareness programmes to assist them in 4 1 4 Wilmar’s operations and supplier operations their understanding. 4 4 Hotspots detected 1 11 Actual fires Internal fire monitoring entral West Sumatra entral West Sumatra Wilmar has always taken a strong stand Our hotspot alerts are identified via alimantan alimantan alimantan alimantan against the illegal use of fire and our no-burn satellite imageries, which are monitored stance is an integral part of our NDPE policy. daily. However, because satellites capture Within our palm oil operations, we monitor changes of temperature, all alerts need to fires in Indonesia via our Fire Free Alliance be verified on the ground because not all (FFA)35 programme to quickly detect, necessarily translate to fires in the field. Any suppress and report on fire incidences. hotspot notification located within Wilmar’s

34 Burdekin’s flat landscape coupled with dry climate requires flood irrigation for production. Cutting the cane green would leave a thick cane 36 As reported in Wilmar’s Annual Report 2019, the 2019 fire figure has been restated following EY’s limited assurance procedure. trash blanket which would obstruct water flow and result in water percolation into soil. This would increase the water table leading to a number of *EY has performed limited assurance procedures on this figure. production and environmental issues.

35 The FFA is a multi-stakeholder alliance launched in February 2016, to share information, knowledge and techniques that will lead a lasting solution for a fire and haze-free Indonesia. 68 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 69

External fire monitoring Updated fire protocol Our monitoring also extends to our suppliers fire alerts were either false or that the fires under our Supplier Group Compliance detected were not deliberately set by the Programme (SGCP). This currently covers companies themselves. Most importantly over 20* million hectares associated with the fires were not used by the companies In 2019, an internal our supply chain and includes monitoring for land clearing. Unfortunately, during of fire alerts. In cases where a fire alert is the dry seasons, strong winds and dry protocol was formalised highlighted via reports from the monitoring vegetation provide an easy way for these to better prevent, platform or in the media, we will seek fires to spread. immediate clarification from relevant monitor, suppress, and suppliers. In all cases, we found that the report fire incidences. Minimising risk in surrounding communities This protocol consolidated procedures as the lands owned by our suppliers. The and protocols developed since 2007. As fire risk map is generated using information While occurrence of fire is usually due to part of prevention and monitoring, we such as past fire incidences, proximity to extreme dry weather conditions, some begin by mapping the risk of fires in our roads, river and population, accessibility, instances in Sumatra and Borneo are linked estates and within a five-kilometre radius and soil type. In places of high risk such as to illegal slash-and-burn methods by local outside of our plantation. To enforce this, peat areas, we have prepared a series of farmers. This technique is still employed FIRE ALERTS we take great pains to identify hotspots via boreholes which will provide the necessary despite it being against the law and BY LAND satellite imagery and verify fires within our water resource for the purpose of fire increasing pressure from industry players like USE AREA IN own operations and a five-kilometre radius suppression. Wilmar to stamp these practices out within INDONESIA (%) outside our concession boundaries, as well the supply chain. This trend is documented by the World Resources Institute’s (WRI) Forest Fire analysis which shows that most occurrences of fires based on fire alerts occur outside of the palm oil concession FIRE MONITORING AND MANAGEMENT FOR OIL PALM PLANTATIONS boundaries.

A key component of our FFA fire 19% 15% Pulpwood plantations Palm oil Concessions management efforts and strategies centres APPROACH RESULT upon community engagement and raising 5% 61% awareness on the risks surrounding the use Logging concessions Outside concessions of fires for land clearance and preparation. Another factor are enforcement efforts to NOTE: deter or apprehend intentional fire starters. • Improved systems for fire risk-mapping While data covers 18 February 2019 - 17 February 2020, it However, in order to influence areas outside • Increased monitoring within and outside Improved effectiveness is indicative of the percentage of fires that occur outside Wilmar and our suppliers’ control, there is concessions. Source: WRI Global Forest Watch concessions (5km radius) in fire detection a further need for collaboration between • Increased investment in fire-suppression government agencies, the private sector equipment and local communities to facilitate a lasting • Formalisation of SOP on fire prevention Quicker response time to solution. • Increased annual awareness and training programmes for employees and communities fire suppression

SEE MORE ON FIRE MONITORING AND MANAGEMENT

* EY has performed limited assurance procedures on this figure 70 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 71

Managing waste PALM OIL WASTE MANAGEMENT: PLANTATIONS AND MILLS

Wilmar follows waste management best practice for our upstream palm oil facilities and seeks to recover and re-use all waste. The MULCH solid waste produced from our production processes includes Old stems & leaves are made into mulch At the time of replanting old stems & leaves empty fruit bunches (EFB), mesocarp fibre, and palm kernel shells. are shredded or pruned & placed in the soil These are used as energy for fuel and composed or mulched as to become organic fertiliser. They also help to organic fertiliser. We also produce palm oil mill effluent (POME) maintain soil moisture. which is used as a fertiliser or treated prior to local river discharge.

In 2019, approximately 74% of solid compound was stockpiled for later re-use. waste generated from our palm oil milling With the inclusion of waste stockpiles, processing was re-used as fuel or organic our target to re-use 100% of solid waste PALM FRUIT IS HARVESTED FROM OIL PALM TREES fertiliser. In addition, the remaining one generated from our palm oil milling IN THE FORM OF FRESH million metric tonnes of waste within the processes has been met in 2019. FRUIT BUNCHES FFB is sent to the mills After extracting the within 24 hours of CPO and PK we are left harvest with 4 by-products UPSTREAM SOLID WASTE MANAGED 2019 (MT, %)

MESOCARP EMPTY FRUIT FIBRE AND BUNCHES PALM KERNEL (EFB) SHELLS Total: 2,146,963 MT Total: 1,854,196 MT EFB POME Fibre Shells (Solid waste) (Liquid waste) (Solid waste) (Solid waste)

150,328, 7% 1,566,478, 73% 1,247,846, 67% 276, 0% Consumed for Mulched / Consumed for Mulched / energy recovery composted energy recovery composted

430,157, 20% 606,074, 33% Stockpiled for Stockpiled for POME later use later use is treated at our waste water treatment pond to reduce acidity, Biological Oxygen Demand (BOD) & Chemical UPSTREAM SOLID WASTE RE-USED 2018-2019 (MT) Oxygen Demand (COD) levels so ORGANIC FERTILISER that it becomes safe for use as an FUEL Fertiliser produced Fibre & shells are used 44 411 organic land fertiliser. A specific from composted empty as boiler fuel in the NOTE: application permit is obtained for 44 fruit bunches and the mills 11 each location, with close monitoring of The total volume of upstream solid waste treated POME is used produced is estimated from recorded volume for the oil palm trees in environmental impact as required by of FFB processed using industry accepted our plantation the authorities. approximations.

14 4 BIOGAS Solid waste re-used Methane capture plants are installed at the mills to capture the biogas generated from POME which can Solid waste stockpiled either be used for energy or flared off. 201 2019 72 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 73

SUGAR UPSTREAM WASTE MANAGEMENT: PLANTATIONS AND MILLS Increasing water efficiency and protecting waterways Growing Sugarcane is grown from seed canes IRRIGATION Water is an essential global resource and least 25 years in most of the regions where (billets) or subsequent growths home to a vast array of aquatic life that we operate. Based on these records and (ratoons). Harvesting conducted is increasingly facing supply pressures recent trends, water stress is still not a on an annual basis SOIL AMELIORATION aggravated by climate change and pollution. material issue for our oil palm estates. While we face reduction in rain during weather Wilmar has adopted a life cycle approach phenomena, such as El Niño, this is not in the management of our water footprint significant. Land irrigation of POME, mainly – from the design to the construction and done to help boost fertiliser, continues to be running of our mills, refineries, processing carried out during these periods. This land plants. Our production facilities focus irrigation helps alleviate the impacts of the Pre-harvest strongly on water use efficiency, an approach lack of rain during times of water scarcity. For specific areas, cane is burnt to that delivers long-term cost savings. We Mulch remove much of the leafy material conduct water assessments prior to the Wilmar has implemented measures to (solid waste) which can make harvesting and Boiler ash development or new plant construction. increase water efficiency – especially for irrigation operations difficult. Matter left on the field as mulch to (solid waste) This highlights potential water risks to the our most water intensive mills – followed maintain soil moisture, stop weed growth and mitigate soil erosion. Boilers ash is the residual from natural ecosystem and local communities by nursery irrigation and household use. combusting bagasse to power the that rely on the water source for sanitation, mills, and export renewable electricity. nutrition, and livelihoods.

Animal feed Mill Mud Wilmar diligently tracks and monitors our (solid waste) Harvest (solid waste) site water use. This includes the availability Water is an essential Matter may be collected and Cane trash, leaves and other matter Mill mud is the separated field soil of water at given sources to measure and processed for animal feed. from the cane supplied to the mill is seperated during harvesting mitigate disruptions to our operations. We global resource and also collaborate with local authorities to Effluent understand their future water availability home to a vast array (liquid waste) strategies. of aquatic life. Surplus water produced during the milling process discharged or We have been monitoring rainfall patterns at irrigated. our palm oil plantations since the inception Processing of each estate, resulting in records for at After extracting the sugar and molasses, the main products left are bagasse, mill mud and water. WATER CONSUMPTION INTENSITY 2016-2019 (M3/MT FFB PROCESSED) DISCHARGE PALM OIL OPERATIONS

Our sugar operations produce solid waste For farmer suppliers in India, both Wilmar and the government encourage such as bagasse, press mud, ash, sludge the implementation of drip-irrigation systems for efficient water use. and yeast sludge. We use bagasse as boiler fuel and other waste as raw material for composting purposes. At our mills we SEE THE MANAGING EFFLUENT SECTION FOR MORE ON 1 collect excess water from washing and gland MANAGING LIQUID WASTE 1 14 11 11 1 1 1 1 11 1 1 14 1 14 1 1 1 14 1 1 14 1 1 1 14 leakages at pits before being recycled back for use in the process after treatment. SEE THE ENERGY CONSUMPTION SECTION FOR HOW WE USE CANE BAGASSE AS RENEWABLE ENERGY entral alimantan West alimantan Sumatra Saba Saraa ana ieria

2016 2017 2018 2019 *EY has performed limited assurance procedures on this figure. ** 2016-2018 data have been restated to exclude Suburmas in the calculations. 74 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 75

Our 2019 mill water usage levels were in line For our sugar operations, some of our with industry levels across all regions. Based estates are rain-fed while others are irrigated on 2016 baselines, we target to reduce water farms. In accordance with the Bonsucro consumption intensity to 1.2m³ per tonne of Production Standard, we monitor net water FFB processed (m³/MT FFB processed) for consumed per unit mass of product for Indonesia and 1.3m³ / MT FFB processed for our sugarcane plantations and mills and both Malaysia and Ghana by 2023. In 2019, in 2019 our consumption was well within these targets were achieved for Central the water usage limits. We also attempt to Kalimantan and Sumatra in Indonesia. Our ensure that all irrigated water is efficiently water consumption intensity in Sumatra used and applied to our fields. In 2019, we has been steadily declining and is at two- exceeded the Bonsucro threshold for our thirds of its 2016 rate. Once our new mill in Burdekin operations due to low rainfall that Nigeria is operating at full capacity, we will resulted in increased water consumption. set a target supplemented with more robust data. Sarawak data has been updated to reflect the current reporting scope (excluding Suburmas mill from calculations) and the increase in 2019 intensity is due to lower efficiencies of the old boilers in Saremas Wilmar Sugar Agronomist measuring apparent electrical conductivity of the soil 1 mill.

NET WATER CONSUMED PER UNIT MASS PRODUCT AND WATER EFFICIENCY IN AUSTRALIA 2017–2019 WATER CONSUMPTION IN WATER-STRESSED AREAS

NET WATER CONSUMED PER UNIT MASS EFFICIENT USE OF WATER Wilmar has production sites in water-stressed installed a secondary reverse osmosis plant PRODUCT (kg of water of mass product) (kg/ha)/mm areas in India and Australia. Based on the to treat the rejected water from the primary World Resources Institute’s Aqueduct tool, 37 plant to convert into raw water. We have our refinery in Gujarat, India operates in an also become member of Federation of 2017 2018 2019 Bonsucro 2017 2018 2019 Bonsucro limit limit extremely high-stress water area. All other Kutch Industries Association (FOKIA), a India-based mills across Maharasthra and government aided organisation to support PLANTATIONS 97.89 107.35 81.84 130 95.90 88.43 115.19 90 Karnataka and one of our mills in Victoria, industries in the region to mitigate water Australia operate in high-stress water areas. scarcity issues by installing common MILLS 0.64 0.38 0.41 20 NOT APPLICABLE desalination plants. In Maharasthra and (Burdekin only) All of the water sourced by our Australia Karnataka, mills that have distilleries and co- refineries is from municipal sources, while generation plants in their vicinity implement our India operations heavily rely on the water a zero-discharge approach, where the excess NOTE: contained within the cane they process. process condensate can be used for cooling Efficient use of water only applies to fully irrigated sugarcane. Therefore, data is only representative for all farms in Burdekin where irrigation is used. In Gujarat, we use surface water supplied towers after secondary treatment. The Our remaining farms are rain-fed or supplemented with irrigation. by third party government agencies. This remainder discharge is mostly used for green plant is a zero-discharge facility, where all belt irrigation within the mills’ premises and water withdrawn is treated and re-used supplied to neighbouring farmers. back in the operations. We have recently 37 Aqueduct’s tools map water risks Sugar water initiatives such as floods, droughts, and stress, using open-source, peer reviewed FACILITIES IN AREAS WITH WATER STRESS 2019 data. As one of the largest producers and development, much of which will depend buyers of sugarcane in Australia, Wilmar on customer interest and potential demand. is a pioneer in implementing sustainable VICTORIA, GUJARAT, MAHARASTHRA, KARNATAKA, sugarcane growing practices. Wilmar is As a founding member of the Baratta Creek AUSTRALIA INDIA INDIA INDIA seeking consultation from customers during Action Group (BCAG), Wilmar is active the initial stages of a programme designed in its initiatives around improving water WATER 259,751 313,511 347,633 1,165,590 to raise funds to support best practice quality flowing to the Great Barrier Reef. WITHDRAWAL (kL) implementation for sugarcane farms in We are also a member of the Cane Supply WATER the reef regions of Australia. Our aim is Improvement Programme (CSIP) in helping 106,023 313,511 89,589 909,528 to comply with reef regulation to facilitate develop recommendations on the use of CONSUMPTION (kL) the protection of the Great Barrier Reef. mill by-products for industry application. The project is still in the early stages of NOTE: 1 kilolitre = 0.001 megalitres (ML). Water consumption is calculated as total water withdrawal deducting total water discharge. 76 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 77

An example of how water is managed

at our Yarraville refinery

The water used at our Yarraville refinery in Victoria is primarily for steam generation and for operations such as dissolving raw sugar and the de- sweetening processes.

The water leaves the refinery in its liquid implemented a new recovery pan. Both products as trade waste or storm water to measures contributed to larger reductions sewer and as condensed vapour in cooling in subsequent years. We intended these water which is then returned to the adjacent upgrades to recover condensed vapour river. Other smaller flows include amenity for re-use in the refinery, also adding to a activities to sewer and direct vapour loss to reduction in emissions and easing impacts the atmosphere. We continuously employ on the surrounding environment. In 2021 we practices to minimise water use, thereby plan to install a pan calandria which will allow reducing our environmental footprint. for an increase in condensate return to our boiler station, thereby reducing water usage Water usage intensity at the Yaraville by eliminating wastage of surplus hot water. refinery has decreased by 46% over the When installed, we aim to further reduce last ten years. In 2014 we installed a water usage intensity to below 0.95 kL/MT. triple-effect evaporator and in 2016 we

YARRAVILLE REFINERY WATER USAGE INTENSITY 2010-2019 (L/MT)

Triple-effect evaporator installed

Recovery pan installed Water usage intensity (L/MT) Water 1 1 1 1 1 4 1 1 11 1

2010 2011 2012 201 201 201 201 201 201 2019

Cut sugar cane being transported to a Cane Train 78 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 79

MANAGING EFFLUENT

Wilmar has implemented comprehensive procedures to safeguard POME BOD LEVELS BY DISCHARGE RIVER DISCHARGE water quality. We regularly report our progress in monitoring and DESTINATION BY REGION 2016-2019 reducing significant pollutants. (mg/L)

Palm oil mill effluent (POME) is wastewater For our upstream and downstream sites, from fresh fruit bunches (FFB) processing biological oxygen demand (BOD) and and palm oil refinery effluent (PORE) is COD levels are monitored for both land 2016 2018

wastewater from refining crude palm oil application and river discharge. In 2019, 4 4 (CPO). While POME is mainly organic in Wilmar was within the legal limit for BOD 2017 2019

nature, it is not discharged directly, as we levels for our upstream operations in 1 1 1 repurpose it through land application or Indonesia and Malaysia and because of treat it via anaerobic digestion prior to local low mill utilisation in Nigeria, there was no West alimantan Sumatra Saba land irriation Saraa NOTE: waterway discharge. The chemical oxygen effluent discharge in 2019. For Ghana, a new demand (COD) content for PORE is much effluent discharge standard was promulgated 1. BOD legal limits for river discharge range LAND APPLICATION lower than POME but as the refining of to Wilmar in August 2019 which stipulates from 20mg/L to 100mg/L across our various CPO involves higher usage of chemical a limit of 50 milligrams per litre (mg/L) for operations. For Sabah, limits may vary processes than the mill extraction process, BOD discharge, regardless of river discharge depending on the year a mill was constructed. 2. BOD legal limits for land application in PORE requires a chemical treatment step or land application. These guidelines were Indonesia is 5,000 mg/L and are not applicable to remove the oil and grease and inorganic developed based on Ghana’s existing for Ghana. substances before further aerobic treatment guidelines for the Oil and Fat Processing 3. The 2019 BOD data for Sarawak and Sumatra prior to discharge. One refinery in Indonesia Sector and we are currently in discussion (land application) has been adjusted as sends its effluent to a municipal treatment with the local authority to set a standard that compared to data reported in Wilmar's Annual 14 1 1

Report 2019, following EY's limited assurance 1 111 144 1 1 1 4

centre for external treatment. We have will apply to the palm oil sector. We were 1 1 procedure. an ongoing target to maintain effluent also within legal limits for COD levels in our entral alimantan West alimantan Sumatra ana discharge levels to be within local regulation upstream and downstream operations.38 thresholds for palm oil mills and refineries *EY has performed limited assurance procedures on this figure. waterway discharge.

With water forming a big part of the sugarcane crop, sugar mills generate effluent water through its milling process. As the effluent does not contain high COD similar to POME, the water is suitable for re-use in irrigation systems after a simple treatment. During seasons of drought, effluent water discharged from sugar mills is diverted to rain-fed PORE EXTERNAL WATER BODIES COD farms to supplement any further water needs. For our LEVELS BY COUNTRY 2019 sugar operations in Australia, most effluent is discharged (mg/L) 44 411 via land application for irrigation purposes on farms surrounding its mills and is not governed by a specific discharge limit. In Myanmar, we do not discharge via land application and were within BOD legal thresholds for river discharge in 2019. In India, due to the fact that our facilities are located in water-stressed areas, there is a heightened awareness on re-using water from the milling 1 and distillery processes. Wastewater is treated and used at distillery and cogeneration plant cooling towers, for molasses dilution (following further ultraviolet treatment) and to irrigate the green belts within the mill compounds. Indonesia alaysia Spent wash from distilleries is bio-digested and, along with other solid waste, re-used in incineration boilers NOTE: Co-gen facility at a Wilmar mill in Riau at dusk and as compost or liquid fertiliser. We are implementing COD regulatory limits range from 80 mg/L to 250 mg/L across our various further measures with an aim of achieving zero liquid operations depending on permits. discharge for our distillery plants in India.

38 This covers our downstream operations within the scope of this report, which may include biodiesel and oleochemical plants. 80 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 81

Optimising chemical use

We aim to minimise the use of chemicals, Conventions pesticides are strictly including pesticides and chemical prohibited except for specific instances fertilisers. Any fertiliser use is guided by that follow WHO recommendations and a management plan and is included in guidelines. We only allow the use of our SOP. Safeguards are implemented paraquat in our sugar business due to an to eliminate exposure to hazardous absence of viable alternatives. Its use is the chemicals for workers, communities, and the most practical and may even curb overall environment. In India we have a programme environmental impacts in Australia as it for farmers to switch to manure or organic is considered reef friendly. Workers are fertiliser to minimise the impact of salt pan provided with adequate personal protective formation due to high nitrogen use, and equipment and require specific licences to in Australia we provide farmers with mill handle these chemicals. mud to help with fertilising. For palm oil operations we work with our smallholder For any substance that poses a potential suppliers on appropriate use of pesticides hazard to workers to the environment, to prevent overuse. This includes training toxicity is closely monitored on a regular on the types of pesticides for specific basis and risk assessments are carried out. weeds and also to switch to path and circle As only a few oil palm plantation companies spraying only—which largely reduces the disclose toxicity levels, comparison can overall use of pesticides. be difficult. However, we believe that our current range of below 1,000 units per World Health Organization (WHO) Class hectare is largely in line with industry best 1A or 1B and Stockholm or Rotterdam practice.

TOXICITY UNITS PER HECTARE BY REGION (TOXICITY UNITS/HA) 2012-2019 PALM OIL OPERATIONS We also conduct Integrated Pest 1000 Management (IPM) combining cultural, 00 mechanical, biological and chemical 00 strategies to control pests.

00 Our R&D teams in Indonesia continually attempt to develop and adopt environmentally friendly solutions. We also collaborate with local stakeholders to determine and implement

200 alternative pest control strategies.

2012 2013 2014 2015 2016 2017 2018 2019

Central Kalimantan 367 318 337 328 253 283 209 218

West Kalimantan 327 296 416 464 256 271 277 306

Sumatra 258 219 231 257 317 563 304 320

Sabah 452 508 801 737 647 617 687 921

Sarawak 471 694 718 534 541 684 937 586

Ghana - - - - 259 316 382 261

Nigeria - - - - 629 111 193 410 82 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 83

Using barn owls to control the rat population

In accordance to the Bonsucro Production Standard we monitor the level of active Rats can consume food ± 10% of their ingredients per hectare for our sugar operations. This covers all applied agro-chemicals, body weight in a single day and bring including pesticides, herbicides, insecticides, fungicides and ripeners. In 2019, chemical usage at our Australia and Myanmar operations were within the Bonsucro limit. food to their nests 40 times per day.

In oil palm plantations they contribute to the barn owls. With high reproduction rates damaging of fronds, oil palm flowers, and and a high dependency on rats as their TOTAL ACTIVE INGREDIENT PER HECTARE 2017-2019 (KG/HA) SUGAR OPERATIONS fruits, thereby significantly affecting yield. main source of food, barn owls are natural While rodenticides (with active ingredients predators and serve as an optimal solution. such as Brodifacoum and Bromadiolone) By applying this measure, we have been in ready-mix bait form has been effective able to minimise chemical rat bait use in 414 in controlling the rat population, they can the plantation since 2011 at our Central 2019 cause chemical pollution to the environment Kalimantan estates. Apart from a slight contributing to disturbances in the plantation increase in rodenticide usage in 2016, due area and the disruption of predators. Bait to an outbreak in several blocks that could application and acceptance levels also not be handled by the existing barn owl require close supervision and monitoring. population in these areas, the amount of 201 rat bait usage has drastically decreased. 4

As an IPM solution, we have been controlling limit onsuro the rat population by breeding and releasing

4 CHEMICAL RAT BAIT USAGE VS. BARN OWL POPULATION 201 AT WILMAR’S CENTRAL KALIMANTAN ESTATE 2008-SEPTEMBER 2019

0000 000 000 00 100 10 200 20 00 0 00 0 00 0000 000

0000 Australia Myanmar 000 0000 000 NOTE: 0000 While we have 2017 data for Myanmar, it is not comparable as reporting 2000 initially followed harvesting cycles and not calendar years. 20000 emial rat bait use s

10000 1000

yto alba barn ol population no o ols yto Due to heavy rainfall in 2018 and 2019, areas, followed by a series of workshops 0 there has been a rise in white grub (or root and demonstrations with technical experts. grub) in Belagavi, Karnataka. This pest Farmers were taught to adopt integrated 200 2009 2010 2011 2012 201 201 201 201 201 201 2019 feeds on sugarcane roots and subsequently and community approaches through damages the undersoil portion of the cane. cultural, mechanical, physical, and biological Chemical rat bait Barn owl (no.) SRSL operates four mills in Belagavi, which methods for effective and efficient control of account for 20% of total cane crushing root grub menace in sugarcane cultivation. Owls are released to field nest boxes in box rates. In September it was recorded in the district. In 2019, we taught IPM to Such approaches have proven effective in planted oil palm blocks. Owl chicks from that 52.5% of the total existing 3,822 field control the pest menace and prevent its controlling the target pest in an economical, the boxes are nursed at our hatcheries nest boxes were occupied across the whole spread to other areas. This was achieved environmentally friendly way and has set a before being sent back to the owl pairs in estate, signifying an effective and productive by mapping the species across operational benchmark for sustainable cultivation. the field nest boxes. This helps to increase IPM method. We are currently looking into barn owl population in the fields. increasing the barn owl population and increasing the field nest box ratio from SEE BASE DATA SECTION FOR A LIST OF HERBICIDES Since 2013, the barn owl population has one box per 40 hectares to one box per USED IN WILMAR PLANTATIONS significantly increased in the fields, based 20 hectares ratio. on our monthly census on occupational nest 84 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 85

Championing people

We are guided by international standards, including the United Wilmar is firmly committed Nations (UN) Guiding Principles on Business and Human Rights, the conventions of the International Labour Organization (ILO), the Universal Declaration of Human Rights and its covenants, the towards respecting, protecting UN Global Compact, the United Kingdom (UK) Modern Slavery Act as well as the Bonsucro Production Standards for respecting and upholding the human rights human rights and labour standards.

of people, communities and More importantly, Wilmar strives to support the empowerment and progress of our workers, local communities as well as scheme every worker associated with and independent smallholders. our business. Smallholder training and capacity building in Riau

Key milestones in 2019

GUIDANCE New Human Rights Recognised by RSPO OCCUPATIONAL Cane rail Steady decline Support of the AND RECOGNITION Framework for excellence in Human Rights SAFETY AND accident of loss time injury local chapter and Labour Initiatives HEALTH simulations frequency rates of an Australian conducted in (LTIFR) at Central government mental Australia Kalimantan health campaign: Recognised by Recognised by Global plantations and mills ‘R U OK?’ ASEAN-CSR Network Child Forum Benchmark since 2016 on Human Rights Disclosure for study as a global achiever in reporting on human rights children’s rights in business

SCHEME 392,868 MT 100% covered 11.9% SMALLHOLDERS WOMEN New Women’s Charter Women’s Working Groups FFB by smallholder RSPO-certified total established in Nigeria, now available processed, 4.0% of programmes hectarage in all countries of palm oil operations total FFB supply

CHILDREN 143 crèches 92.2% of children built catering to 4,655 children of school-going age attend schools INDEPENDENT 594,418 MT 5.4% About 94% SMALLHOLDERS FFB RSPO-certified covered New collaboration New collaboration processed, 6.1% of volumes sourced by smallholder for a Child Protection and Safeguarding for a Children in Plantation Directory total FFB supply programmes Implementation Manual in Malaysia

COLLECTIVE 5 collective labour 100% BARGAINING agreements of workers are covered under WILMAR SCHOOLS 10/15 2/2 5/6 AGREEMENTS in Indonesia mills and plantations collective bargaining agreements in FOR COMMUNITIES schools in Indonesia schools in Ghana schools in Nigeria covering 7,730 employees; another Malaysia, Ghana and Nigeria’s mills 3,700 employees covered for & plantations downstream operations in Indonesia 86 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 87

Our dedication to human rights Key human rights framework areas of focus

Wilmar’s global palm oil and sugar businesses employ over 71,000 workers, provide economic opportunity to more than 15,000 smallholders, and support hundreds of rural communities surrounding our operations. Given that we have an impact on a vast number of lives, it is imperative that we champion and lead with measures that uphold our enduring respect for human rights.

On 1 May 2019, Wilmar launched a dedicated Human Rights Framework We are active to better address emerging human rights Respecting Respecting Protecting the right challenges. In addition to advocating for participants in human rights, the document embeds three labour rights indigenous & to raise grievance pillars of Protect, Respect and Remedy as joint partnerships community rights and right to remedy outlined in the United Nations Guiding and various multi- Principles (UNGP) on Business and Child protection Respecting community and Whistleblowing Human Rights. The Policy Statement in the stakeholder platforms indegenous land rights framework applies to our operations and Women’s rights Grievance supply chain and is additional to the existing to promote, respect commitments in our No Deforestation, No Non-discrimination / equal Supporting smallholders Peat, No Exploitation (NDPE) policy and and provide support opportunity other sustainability policies on aspects such as equal opportunities, sexual harassment, for human rights. Freedom of association violence and abuse, reproductive rights, child protection, whistleblowing, and No forced or bonded labour modern slavery. Our framework outlines Wilmar’s approach to implementing these to underpin an effective non-judicial Occupational health commitments throughout our operations. mechanism and reflects our commitment & safety to the protection of human rights defenders, In 2019, our updated NDPE policy was whistleblowers, complainants, and better aligned with globally recognised community spokespersons—consistent frameworks and guidance for human with the guiding RSPO Human Rights rights, such as the Food and Agriculture Defenders Policy. We are also finalising Organization’s Voluntary Guidelines on a stand-alone protocol to address supplier Responsible Governance of Tenure (VGGT), non-compliance to the no exploitation aspect of our NDPE policy that warrants ADDRESSING IMPACTS AND RISKS RELATED TO and the UN Global Compact and the HUMAN AND LABOUR RIGHTS WITHIN OUR OPERATIONS International Labour Organization (ILO) action and oversight, additional to that described in the Grievance Procedure. conventions. Our updated Grievance Through our collaboration with Verité, we namely exploring possible root causes of Procedure is also in line with the UNGP Once finalised it will be added to the procedure. explore systemic human rights and labour child labour, understanding the link between rights risks that can occur in plantations, work and pay practices, and screening for specifically in the Indonesian context. emergent labour issues. SEE LIST OF STAKEHOLDER ENGAGEMENTS FOR MORE DETAIL Since we began the partnership in 2017, we have undergone a 12-month programme We aim to launch the programme and developed a three-year strategy to throughout Indonesia to both strengthen We are active participants in joint and expert, Verité. During this time, we change mindsets and entrench sustainability Wilmar’s sustainability structure and partnerships and various multi-stakeholder developed and are implementing robust as a priority approach for our company. design value-based labour and community platforms to promote, respect and provide solutions to address systemic labour issues We have since improved worker pay and engagement initiatives. This is expected to support for human rights. This includes in our operations, while simultaneously conditions at PT. Daya Labuhan Indah and be rolled out in 2020 after completion of consulting with human rights experts and equipping our employees with the tools and PT. Perkebunan Milano in North Sumatra. Verité’s final assessment in North Sumatra. civil society organisations to ensure feedback knowledge to raise awareness on human We continue to raise awareness throughout The Indonesia-wide roll out will be based is received. Over the last three years we rights and labour concerns. our operations while we work to mitigate on the model applied in North Sumatra. have collaborated with our technical partner labour rights risks issues in priority areas, 88 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 89

Responsible employment

In accordance with SDG 8 (Decent work and economic growth), we view it as our responsibility to provide a good livelihood and development opportunities for all our workers and their families.

IMPLEMENTING BEST PRACTICE FOR FAIR WORKING CONDITIONS We provide free housing, We commit to ensuring international best practice for fair working conditions, facilities, and benefits for particularly where legal frameworks are not yet in place, and will use the principles those who choose to stay defined in the Free and Fair Labor in on site. We also provide Palm Oil Production: Principles and Implementation Guidance as reference. childcare facilities and All employees and workers are paid at least the applicable local minimum wage in line access to schools. Isham Harris and Mare Habe work in our Sabahmas Estate with legal regulations, and comprise basic pay as well as fixed and variable allowances. In Australia, wages are paid consistent with the sugar industry award agreement which for consultation and negotiation with are higher than the minimum requirements. employers. In employee contracts and In Ghana, our lowest monthly wage is 794 CBAs, payment terms for overtime and “We have been here for more cedi, 60% more than minimum wage of official rest days for workers are explicitly 319 cedi. outlined. In a language they understand, than 25 years. The company all workers are given information in writing At oil palm estates operating in remote areas details of their working conditions, including with limited accessibility to urban areas we but not limited to the nature of the work provides us with everything – provide free housing, facilities, and benefits that will be undertaken, rate of pay and for those who choose to stay on site. As our pay arrangements, working hours, vacation housing, schooling for the kids, operations are still developing in Nigeria, and other leave, and all other employment only 31% of permanent workers are currently benefits. provided access to accommodation within and pays us the same as locals. our estates, but 20% more than in 2018. We Through our work with Verité, we are looking target to provide all workers in Nigeria with to calculate wages for work completed We are happy here.” accommodation choices by 2025. after regular hours for piece-rate workers with the aim of better compensating work We also provide childcare facilities and rendered upon exceeding the minimum , and his wife funded school in Sabahmas. access to schools, which are either Wilmar- productivity output. We are also considering Isham Harris Mare run or government schools operated by alternative measures to financial penalties Habe, who are 52 and 48 years Both Isham and Mare have Wilmar. Transportation to nearby schools for breaches in company regulations on old respectively, have worked in applauded the company for their is also provided to all children of school- discipline and performance. Such measures Wilmar’s Sabahmas estate since focus on prioritising education going age. Workers are also provided a may include alternating our approach to 1994. Isham is a driver, and Mare for migrant worker’s children. meal allowance and healthcare. positive reinforcement for any non-breaches. is a child minder at the crèche. Mare appreciates her role as Before we implement any significant Wilmar has been an active member of the Together they had all four of she helps provide other working operational change, employees are RSPO Labour Task Force. Recently, we have their children in Sabahmas. Two mothers – her neighbours in given three to six months’ notice. Notice contributed to the development of a first- of their elder adult children are Sabahmas – support to allow periods leading up to termination and of-its-kind guidance document for the oil already working, and the third is them to go to work without resignation is made clear to all employees palm industry regarding the payment of a studying for an undergraduate worrying about the safety and and workers in employee handbooks and decent living wage (DLW). The methodology collective bargaining agreements (CBAs). adopted that from the global living wage degree in a university in Jakarta. security of their pre-school aged These documents also include provisions Their youngest attends a Wilmar- children. 90 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 91

As sugarcane is a seasonal crop, all our sugar permanent workforce where we have sugar operations rely on seasonal and temporary plantations and mills. In Myanmar, we rely on workers during the main crop season. It contractors to carry out our main sugarcane is therefore not possible to have a 100% growing operations.

WORKER BY CONTRACT TYPE 2019 (NO.)

39,532

Permanent

Temporary

Of the total palm oil and sugar workers 14,205 employed by the company, about 9.5% of these are temporary workers. 3,261 2,310 2,393 1,552 1,545 690 483 749 395 0 9 167 10 507

Indonesia alaysia ana ieria ustralia e ealand yanmar India

MIGRANT WORKERS IN WILMAR’S MALAYSIAN OPERATIONS coalition and was assisted with Wilmar’s lifestyle. This approach takes into account methodology to calculate whether prevailing family needs such as adequate housing, In recent years, the treatment of employees only. Migrant workers wages were meeting the DLW benchmark sanitation facilities, a clean water supply, migrant workers in Malaysia has are also eligible to receive at least in RSPO-certified units for all workers. As an medical care, and children’s educational been subject to much scrutiny due to the minimum wage, in addition important element of the recently adopted requirements. a general imbalance of benefits and to free housing, healthcare, and 2018 Principles and Criteria (P&C), this safeguards with regard to human education for their accompanying guide will assist members in assessing A full list of our commitments on fair working and labour rights. Migrant workers children. Wilmar also provides MIGRANT whether the remuneration provided to their conditions that apply to our operations and from Indonesia and the Philippines long-term employment contracts. WORKERS IN workers is sufficient for the worker and those of our suppliers can be found in the account for 76% of Wilmar’s Wilmar recruits and documents MALAYSIA 2019 his/her family to afford a basic but decent annex of our updated NDPE policy. plantation operations in Sabah all our workers through the (NO., %) and Sarawak. All migrant workers proper channels with no effect TEMPORARY WORKERS employed by Wilmar are entitled on their wages. We also ensure to the same pay and benefits there are no language barriers Temporary workers play an important all temporary contracts to permanent ones. enjoyed by local workers, except when communicating to workers, role, filling seasonal harvesting needs and Since 2018, the following workers enjoy for contributions to the Employees’ whether verbally or through specialist, timebound jobs in the palm oil permanent status: Central Kalimantan Provident Fund—a mandatory, documentation. and sugar industries. Of the total palm (100%), Sumatra (93.2%), West Kalimantan statutory requirement for local 2,795, 24% oil and sugar workers employed by the (69.8%). The disparity in West Kalimantan Malaysian company, about 9.5% of these are temporary is because many workers who are also workers. smallholders prefer a more flexible work 8,899, 76% arrangement. We are working to address Migrants In Indonesia, not all temporary workers this concern in West Kalimantan, including receive similar benefits to permanent exploring a pilot under the Decent Rural SEE MORE ON OUR LABOUR RELATIONS workers. We have endeavoured to convert Living Initiative (DRLI). 92 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 93

IMPROVING WELFARE WOMEN IN OUR OPERATIONS 2018-2019 (%) AND OPPORTUNITIES FOR WOMEN

Gender distribution within the Group 2018 2019 significantly varies between the different Wilmar has focused countries and regions in which we operate. In many regions it is more prevalent for on increasing women’s NOTE: 1. Data includes permanent men to work in the agricultural industry and % % women may not have access to the formal representation and workers, temporary workers, and/or workers hired through labour market. leadership in all levels of third parties. 11% 1% 2. Palm 2018 figure excludes Nevertheless, all employees have the the workforce data from Indonesia's palm right to equal opportunity and treatment, oil downstream operations. regardless of race, colour, gender, age, social alm oil Suar class, religion, sexual orientation, politics or disability. This is outlined in our Equal Opportunity Policy and in recruitment, In April 2019, a Women’s Committee training, and development. Regardless Steering Group (WCSG), headed by Wilmar’s New Women’s Charter of gender, all employees and workers are General Manager – Group Sustainability, was paid equally based on the nature of their established to ensure WoW consistency with work—a ratio of one-to-one. the five key issue objectives. Membership of the WCSG is comprised of women leads In May 2019, Wilmar launched its Women’s Charter setting out core In 2019, Wilmar has focused on increasing representing specific geographical groups areas with an objective of ensuring a fairer and more inclusive workplace women’s representation and leadership in all of operational units. Quarterly regional for women. The charter is Indonesia- and Malaysia-focused, outlining our levels of the workforce and we believe we meetings will be held to report relevant approach to respecting and ensuring women’s rights and the welfare of have made good progress addressing key issues. their families within Wilmar-owned operations. The charter incorporates issues faced by women, particularly in the five key objectives: Indonesian and Malaysian palm oil industry. Wilmar is also proud to be a part of Diversity In our efforts to convert temporary contracts Council Australia Limited, an independent to permanent ones for our Indonesia oil organisation spearheading equitable palm estates, we have also ensured that diversity and inclusion in the workplace with all female workers are awarded similar a goal of developing or supporting initiatives opportunities to permanent ones, such to establish a diverse and accommodating as maternity leave and menstrual leave workplace for all employees. procedures. We have initiated women’s sexual health awareness programmes for Protection from sexual Protection and care Recognising that sugar mills are important harassment and violence of female health workers and the wives of workers who are employers in the region, Wilmar has opened not working in the plantation but living in its doors to apprenticeships for young the vicinity of Wilmar operations. women in Queensland which will begin in 2020. Since 2007, we have implemented stand- alone gender committees, or Women’s Working Groups (WoW), in all of our oil palm estates. This is not limited to our RSPO- certified operations in Indonesia, Malaysia and Ghana but also includes Nigeria as of October 2019. 70% of our estates in Nigeria Measures for non- Continuing Better provisions have established WoWs and we target discrimination, fair and education for for care of family to establish Women’s Working Groups in 100% of Wilmar’s oil palm estates by 2020. equal opportunities improvement life and welfare Core members of each WoW are made up at work and in worker of personal and of and led by women to empower female representation family life members in the workforce and promote their access to decision-making positions. 94 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 95

A HOLISTIC APPROACH TO CHILD PROTECTION

Protecting and safeguarding children’s 2019, we supported 8,807* children rights to education and growth has of compulsory school-going age in CHILDREN LIVING IN PLANTATIONS been at the forefront of our efforts their education through provision of OF SCHOOL- since the 2017 launch of our Child school facilities within plantations, GOING AGE WHO ATTEND SCHOOL Protection Policy. In accordance free transportation to schools, 2019 (NO.,%) with SDG 4 (Quality education), subsidies in school fees and uniforms. Total: 9,555 we have placed significant emphasis This translates to around 92.2% of on providing children with access to such children at our plantations education. Wilmar was recognised attending schools in 2019. This is by the Global Child Forum (GCF) monitored by a census at each estate. in a benchmark study39 in 2019 to We also operate 143* crèche across 8,807*, 92.2% 748, 7.8% be among the top global achievers our estates in Indonesia, Malaysia Attending school Not attending school in creating a positive impact on and Ghana. As of December 2019, children’s rights. We were previously these crèches tend to 4,655 children NOTE: assessed as the best performing of Wilmar employees. In Ghana a School-going ages for children vary company in Southeast Asia for further 18 children from surrounding between countries, ranging from protecting children’s rights in a communities attend Wilmar crèches. five to 18 years old. report published by GCF in 201840. In Australia, we have developed 39 GCF Global Benchmark Study Our estates are equipped with a series of child safety education titled “The State of Children’s Rights schools and crèches for children of all programmes in schools and and Business: From Promise to ages, which includes transportation kindergartens. Called the ‘Cane Practice” 40 GCF Report (September 2018) and safe bus stops. Train’, this programme is aimed at titled “Corporate Responses to educating children who live or go Protecting Children’s Rights in All children of compulsory school- to school around sugar mills and Southeast Asia" going age that live in Wilmar distilleries. It outlines what sugar plantations are required to attend production looks like and how to * EY has performed limited assurance procedures on this figure full-time education programmes. In stay safe in the surroundings.

We have conducted annual child safety assessments since 2018, and we report the results annually based on data from July in the preceding year to June in the current year. The focus on child safety and prevention of accidents involving children in our estates has been effective, with a reduction in serious incidents from 2018 to 2019. Measures that have contributed to this are:

Creating safer environments for children: Road related incidents were the biggest threats to children on our estates. Wilmar has implemented safety measures to mitigate vehicles transporting heavy equipment, including gates, speed bumps and pedestrian paths around residential areas, creches, and schools. Trucks and heavy equipment must be placed in designated parking areas away from residents and children. For other risks we have also filled unused open ponds and erected warning signs around open bodies of water. The focus on child safety and prevention of accidents Educating caretakers and children: Wilmar provided training to schools, parents and children on safety around plantations— involving children in our estates especially in relation to food handling, fire, natural disasters, and haze. Furthermore, we educated students at Wilmar-owned schools on sexual harassment issues. has been effective, with a reduction in serious incidents Protecting the health of children and families: Wilmar implemented an immunisation programme for children at our Sabahmas Estate, from 2018 to 2019. and worm prevention medication was offered to children at our Kiabau estate. We also provided families of all employees with face masks as protection from haze pollution in Indonesia. 96 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 97

ETHICAL TREATMENT: New collaborations ELIMINATING THE RISK OF FORCED, TRAFFICKED OR BONDED LABOUR to improve children welfare Wilmar forbids any form of forced, trafficked At our Malaysian and Indonesian palm oil or bonded labour within our operations operations, Wilmar recruits personnel directly or supply chain. Wages, identification without engaging third-party agencies. This We have begun a collaboration with Kelapa Sawit Indonesia (GAPKI)), the Palm documents and personal belongings are eliminates any risk of force, coercion or Business for Social Responsibility (BSR) Oil Labour Unions Network (Jaringan Serikat not withheld from employees and workers, contract misrepresentation. In Nigeria and and consumer companies including Pekerja dan Serikat Buruh Sawit Indonesia unless with their consent. Secure lockers are Ghana, we limit use of any contracted agent Nestlé, Colgate-Palmolive, PepsiCo, (JAPBUSI)) and the Centre for Child Rights provided for workers to store their personal to logistical and administrative purposes. To Neste and Procter & Gamble to develop and Corporate Social Responsibility (CCR belongings. prevent any risk of exploitation, all monetary a Child Protection and Safeguarding CSR). transactions are directly between Wilmar Implementation Manual. This is done and the workers. alongside a series of capacity building There is also a collaborative effort in workshops to enable suppliers to learn, Malaysia with Earthworm Foundation (EF), discuss and adopt pragmatic measures Archer Daniel Midland Company (ADM), to strengthen the rights and protection Avon and Nestlé to develop a directory of WORKING WITH UNIONS AND ESTABLISHING for children. We conducted the first social services to guide the private sector in COLLECTIVE BARGAINING AGREEMENTS workshop in November 2019 in Jakarta improving the health, safety, and education and 70 participants from supplier of children living on or near plantations. Wilmar respects collective bargaining, and In Australia, all waged employees are companies, government representative, The Children in Plantation (CiP) Directory— the right of all employees to form and join covered by an industrial agreement trade unions, and civil society organisations available in English and Bahasa Malaysia— trade unions. In the absence of a proper (Award or Enterprise Agreement), while the attended. Amongst the speakers were is the first publication of its kind in the collective agreement or association, workers remaining staff and managerial employees the commissioner of the Indonesian country. It contains four priority areas: are free to join any other unions. are covered through stand-alone contracts. Child Protection Commission (Komisi education, community engagement, birth There is one major union association Nasional Perlindungan Anak (KPAI)) and registration, and other child protection In Indonesia, our strong working relationship presence in Myanmar. representatives from the Indonesian Palm related services for children and youth with labour unions helps ensure continuous Oil Association (Gabungan Pengusaha living in rural areas of Sabah. improvement for our workers’ quality of life at our oil palm estates. Wilmar’s work on converting workers’ employment status to READ MORE ON THE CHILD PROTECTION AND SAFEGUARDING permanent ones and providing subsidies WORKERS UNIONISED OR COVERED BY CBAs IMPLEMENTATION MANUAL and wages would not have been possible BY COUNTRY AS AT DECEMBER 2019 (%)

without collaboration with the unions. We PERCENTAGE OF WORKERS also recognise that unions serve as effective REGION UNIONISED OR COVERED BY CBAs mechanisms for raising grievances. To date, five collective bargaining agreements Indonesia 27% (CBAs) (Perjanjian Kerja Bersama) have been established in across several locations. Malaysia 81% These have been formed in partnership Ghana 98% Leading the way with Serbundo and HUKATAN-Konfederasi Serikat Buruh Sejahtera Indonesia (KSBSI). Nigeria 31% with our work on The agreements in West Sumatra and West Kalimantan cover multiple Wilmar sites. children’s rights Australia 100% While our Malaysian mills and plantations New Zealand 100% According to a 2019 independent Wilmar surpassed the industry and company are not unionised due to a lack of union benchmark international report on the average score of 5.6. Moreover, our scores presence in Sabah and Sarawak, ongoing India 0% state of children’s rights and business have doubled since 2014 thanks to our engagement with workers on pay and published by the Global Child Forum (GCF), intensified efforts in addressing children’s conditions has been established and all NOTE: Wilmar ranked amongst the top global rights and well-being in our operations and estates have dedicated social and welfare 1. All inclusive of permanent and part-time employees. achievers in creating a positive impact on surrounding communities. committees to address wages. In Ghana, Temporary workers generally do not join unions due to the children’s rights. Scoring 7.4 out of 10, managerial staff are precluded from monthly dues, but interests are protected as the agreements union membership to prevent conflict of set the minimum conditions to be met. 2. Following local regulations in Ghana, management staff is interest. However, in Nigeria all permanent excluded to prevent a conflict of interest. staff and management are eligible for 3. Data on Myanmar is not disclosed for regulatory/sensitivity SEE THE GLOBAL CHILD FORUM BENCHMARK STUDY 2019 union membership. This is in line with reasons. FOR MORE DETAIL the regulations set out in the respective 4. As per India’s Labour Law, there is no requirement to cover countries. employees under CBAs. 98 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 99

IMPLEMENTING REPORTING MECHANISMS AT OUR SITES ENSURING SAFE AND HEALTHY ENVIRONMENTS

Our Grievance Procedure is open to all our Sabahmas estate in Sabah, Malaysia. Providing a safe working environment and exposure and maintain safe chemical external and internal stakeholders, but is The tool allows workers to raise concerns upholding high health and safety standards levels for our workers. Once successfully primarily used by external stakeholders anonymously, make enquiries, or provide remains an ongoing priority. In accordance implemented in North Sumatra, the rotation for cases related to our suppliers. All our feedback related to working conditions with health and safety policies, we ensure system will be scaled up and implemented employees, workers, and local communities directly with RSPO. Ultimately, RSPO hopes that all measures and facilities are up-to-date throughout our plantation operations. As have separate dedicated site-level remedial to make more tools available to assist and conduct regular training for workers. part of our partnership work with Verité, a mechanisms and resolution processes for members in addressing and improving All workers are provided with personal review will be conducted in 2020. any complaints. labour conditions. protective equipment (PPE) and share best practice between sites. Free medical care is India In 2016, BSR conducted an assessment Similarly, Wilmar has developed a also given to all workers and their families In India, national safety weeks are organised that found workers in Indonesia had a low customised reporting mobile phone across all estates. by SRSL on health and safety programmes level of awareness of available grievance application for our sugar mills, farms and for employees. At the same time, awareness mechanisms. To facilitate a greater level of bioethanol operations in Australia. The Indonesia trainings are also conducted for housewives engagement, in 2019 Wilmar contributed application can be used to report potential We have in place an air pollution and haze to understand better and safer utilisation of to a programme organised by RSPO issues allowing for images to easily be emergency response procedure that was liquid petroleum gas (LPG) at their homes. and Ulula—an organisation involved in attached thus eliminating the need for a established in 2018. This covers the provision transparency and accountability for social paper-based reporting system and enabling READ MORE of adequate PPE measures, such as the Australia development—on trialling a mobile Wilmar to swiftly allocate the appropriate ON THE ULULA wearing of face masks, following procedures Wilmar Sugar Australia supports the national phone-based grievance reporting tool at resources to tackle any logged issues. PILOT PROJECT for workers with respiratory issues, issuing ‘R U OK?’ initiative through efforts to stop-work orders in dire situations, and raise mental health awareness amongst EMPLOYEE DEVELOPMENT AND RETENTION following established procedures for medical employees. This encourages them to reach treatment or evacuations. A similar haze out and support colleagues who may be Wilmar invests in the capabilities of our response procedure is available in Malaysia. going through a difficult time. workforce. Workers and employees have Wilmar’s retention and development access to leadership training programmes programmes are guided by our Equal In North Sumatra, we are undergoing trials to In October 2019, there was a fire incident to further develop their managerial skills and Opportunity Policy. Besides rewarding gather sufficient data around implementing at one of our mills at Burdekin, which to allow for better transitions into leading performance, we encourage all our mandatory rotation systems for workers was quickly contained and extinguished. roles. Rather than limit these opportunities employees to approach their line manager handling pesticides. This rotational system Our comprehensive safety and health to single job categories, we provide job or human resources department to discuss will require these workers to switch roles procedures ensured a rapid response rotation to broaden exposure and develop career prospects and potential training every three months to work with no chemical allowing all employees and workers to be wider skills. We provide long-term incentives opportunities that may lead to career exposure. This is to minimise prolonged safely evacuated. for both senior and junior management. We progression. also offer soft-skill management training programmes and personal development Since 2016, total Group turnover rates have holistic growth initiatives for all employees been relatively low, signifying a consistent Cane rail incident simulations in order to increase transferrable skills for and satisfied workforce. future employment opportunities. In Australia we GROUP TURNOVER RATES 2016-2018 (%) continue to place a top 20 priority on health and

1% safety, including our 1 14% 1,600-kilometre cane 1% rail network. 10 Each year we simulate cane rail incidents in enabled us to trial Wilmar’s new track layer all four of our Queensland milling regions over the Google Earth system. Cane train NOTE: to better prepare crews for emergency crews were able to provide police, fire and situations. One of our new initiatives involved ambulance crews with exact GPS coordinates 2019 data is being finalised at the using GPS technology to help improve of the training incident, enabling the fastest time of publish and will be updated emergency service response times. A mock possible emergency response time. 0 for our next report. railway incident in the Herbert region in 2019 201 201 201 100 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 101

Lost time injury frequency rates Fatalities

We work persistently to reduce the occurrence of workplace joining the new mill with little prior safety experience, it We regret to report seven workplace- FATALITIES 2015-2019 (NO.) accidents and injuries. At our oil palm plantations, our lost took some time for the strict safety measures at our Nigeria related fatalities in 2019. Three occurred time injury frequency rates (LTIFR) decreased by more than mill to be fully implemented. Also, an experienced EHS in Indonesia, three were in Malaysia, and 50% in Sarawak compared to 2018. In Central Kalimantan, officer was employed towards the end of 2018 and the one fatality occured at one of our refineries 1 rates have been steadily declining over the past few years, changes implemented since has helped to improve safety. in India. Two of the deaths were related to 1 now 70% less than 2016. However, we see increased rates at While these improved rates are a testament to our stricter the employees’ own pre-existing health

all other sites, almost double at Sabah and a 76% increase health and safety measures, our Group-wide operational conditions. One was a workplace accident 4 1 in Nigeria compared to 2018. health and safety data collection system has improved involving a tractor, two were from falls, and which allows for more accurate reporting figures. one from entanglement in an empty fruit 1 At our mills, LTIFR have decreased across all of our Indonesia bunch (EFB) conveyor belt. One recorded operations. In Central Kalimantan and Sabah, rates have also Rates remain relatively low at our palm refineries and there fatality was linked to the use of a lathe 4 been steadily declining since 2016. Our Nigeria mill also were no recorded accidents at our sugar plantations or machine for metalwork during an employee’s 1 showed a 65% drop in the past year. With many workers Indonesia and India refineries in 2019. personal day off. 1

LTIFR PER 200,000 WORKING HOURS 2016-2019 Structural conditions of equipment or work areas related to these incidents have 201 201 201 201 2019 been assessed and improved. Workplace COUNTRY OF OPERATION 2016 2017 2018 2019 standard operating procedures (SOP) Indonesia Ghana Australia New Zealand PLANTATIONS have been updated to address tractor and Sabah 1.01 0.54 0.56 0.97 conveyor belt safety, and trainings have Malaysia Nigeria Myanmar India Sarawak 2.96 3.21 4.06 1.96 been conducted on these safety measures. Central Kalimantan 4.18 2.82 1.91 1.27 Safety barriers and sensors have now been West Sumatra 1.06 1.54 1.43 1.83 installed on our lathe machines. To ensure and control of work and management of Sumatra 6.10 5.90 6.03 6.23 that employees do not enter premises contractors at our sites were not adequately and use equipment on their days off, we supported by senior site management. In Ghana 0.47 0.23 0.17 0.30 now provide security guards with on-duty January 2020, Wilmar formalised a Fatality Nigeria 5.40 5.00 1.67 2.94 employee lists. Mill managers have also and Permanent Disability Incident Process MILLS created related compliance procedures stipulating that disciplinary action will take Sabah 2.66 1.99 1.79 1.37 that will result in disciplinary action if not place at the site’s senior management level Sarawak 2.15 2.90 2.70 3.03 adhered to. should systems and training fall short of required standards. Through this more Central Kalimantan 1.18 1.55 0.81 0.42 Recognising that we continue to see an stringent approach, we hope to avoid West Sumatra 0.16 0.70 0.48 0.17 unacceptably high number of fatalities, any repeat incidences which could have PALM OIL OPERATIONS PALM Sumatra 0.67 0.32 0.31 0.27 Wilmar implemented site-level reviews been reasonably avoided through proper Ghana 0.53 0.78 0.00 1.13 in 2019. The findings indicated that the execution of improvement plans. Nigeria 3.86 1.34 standards aimed at improving planning

REFINERIES Indonesia 0.13 0.20 Malaysia 0.42 0.69

PLANTATIONS Responsible Australia 0.00 2.30 0.00 0.00 Myanmar 0.00 0.00 sugar consumption

MILLS Australia 1.09 1.87 1.30 Sugar consumption is rising in many parts Our operations in Australia and New Myanmar 0.10 0.10 of the world, particularly in developing Zealand also support a nutrition information India 0.61 countries in tandem with lower domestic website—Sugar Nutrition Resource sugar prices.41 We are aware that Centre—which publishes sugar and REFINERIES excessive sugar consumption can lead nutrition facts, reviewed by a panel of Australia 1.99 0.75 1.26 1.70 to adverse health effects and commit to independent scientific experts. The aim is SUGAR OPERATIONS New Zealand 2.70 0.56 1.64 1.10 full transparency by including nutritional to provide science-based information within Indonesia 0.13 0.00 0.00 labelling on all our products. As such, the context of the region to help address India 0.00 our CSR Sugar business has a range of issues around the role of sugar in nutrition. products called ‘Better for You’ which The information provided is in line with the NOTE: contain alternative sugar products with a Australian Dietary Guidelines. Newsletters 1. The 2019 LTIFR figures for Nigeria & Myanmar plantations and Australia & India mills have been updated from data presented in Wilmar’s Annual naturally low glycemic index. and resources addressing topics such as Report 2019 after further review by site operations and are accurate as of 25 May 2020. obesity, dental health and sugar tax are 2. While we have data for Myanmar in 2016 and 2017, it is not comparable as reporting initially followed harvesting cycles and not calendar years. also made available. 3. As this is the first year of reporting for India, there is a need to review the robustness of their reporting systems and data.

41 ‘Food Outlook – Biannual Report on Global Food Markets’. United Nations, Accessed 9 April 2020. 102 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 103

GHANA Working with communities Target: 300 farmers by 2020 Covered: 0% Wilmar respects the rights of Indigenous peoples and local communities’ lands, territories and resources. In 2018, we launched the Adum Smallholder In August 2019, the New Planting Procedure This includes surrounding community members in the Scheme designed to provide assistance for the project area was completed and 20 vicinity of our operations and smallholders who may to 300 smallholders in developing 1,400 hectares of planting was initiated but yet to also have rights to Indigenous or local territories and hectares of their farmlands into a smallholder allocate out. We are on track to complete oil palm plantation by employing sustainable all planting by 2020 before being allocated the explicit right to develop their own land. and best agricultural practices. The to all farmers. In the meantime, the farmers programme introduced an alternative can benefit from the ALS trainings provided ASSISTING SMALLHOLDERS livelihood scheme (ALS) to help diversify earlier. income through activities such as baking, Smallholders account for 40% of the Out of 42,849 total hectares (including poultry farming, and beekeeping. world’s palm oil production and are a 35,391 planted hectares) owned by critical part of the palm oil industry. In scheme smallholders, 5,095 hectares comparison to companies with access (11.9%) in Indonesia and Ghana are SMALLHOLDER FFB VOLUMES to resource and agronomic expertise, RSPO certified. This contributed to SOURCED 2019 (MT, %) NIGERIA smallholders are faced with unique 15,241 MT of CSPO and 3,843 MT of Target: 2,000 farmers by 2023 challenges in meeting sustainability CSPK in production in 2019, about compliance. Smallholders account 2% of our total certified output. We Covered: 0% for 10.1% of Wilmar’s supply base. also sourced 31,955 MT of FFB from In 2019, we received 392,868 metric independent smallholders that was In 2017, we launched the Pilot Outgrower assistance to 43 independent smallholders tonnes (MT) of FFB from 16,064 RSPO certified, accounting for 5.4% Scheme with four co-operatives from covering 150 hectares. scheme smallholders and 594,418 of the total independent supply the surrounding areas of Wilmar’s Biase Plantation Ltd. (BPL) at Cross River state. In 2019, we have been in discussions with MT of FFB from 18,099 independent sourced. SCHEME Under the programme, BPL works with the Central Bank of Nigeria to scale up the smallholders—4.0% and 6.1% of our SMALLHOLDERS total supply respectively. outgrowers to establish their plantations programme in Phase Two with hopes to Total: 392,868 MT during planting season, following our cover 60 farmers by 2020 (200 hectares) sustainable agricultural procedures. The and 400 farmers in 2021 (1500 hectares). Smallholder programmes company also provides low interest funding We target to cover the remaining 1,540 for the entire project. Since the start of the farmers in Nigeria by 2023. We are committed to supporting the 100% of our scheme smallholders are programme, we have provided agricultural inclusion of smallholders into the covered by a Wilmar programme. We supply chain. This is done through particularly strive to help our palm consultation and collaboration with oil scheme smallholders achieve 368,684, 94% 24,184, 6% Indonesia Ghana the farmers, providing technical certification under applicable national INDONESIA assistance, and supporting them in certifications and, where relevant, Target: 24,218 farmers by 2025 achieving compliance with our NDPE RSPO guidance. policy for palm oil smallholders. Covered: 36% We are working to ensure that For our independent smallholders, we Since the start of setting our target in 9,389 hectares. The programme covers 100% of our smallholder suppliers have programmes specific for each 2018, 8,699 independent smallholders training on best management practices are supported by smallholder country to engage all smallholders. have participated in our ISPO certification and sustainability requirements. programmes. This means that each We target to benefit 100% of training programme, collectively covering scheme and independent smallholder independent smallholder palm oil INDEPENDENT linked to our supply chain will have suppliers enrolled in/covered by our SMALLHOLDERS access to a platform for expertise smallholder support programmes by Total: 594,418 MT and the sharing of best practice 2020 for Ghana, 2023 for Nigeria, in order to meet their targets for and 2025 for Indonesia. These sustainable production and economic programmes are sometimes linked growth. We encourage our third- to sustainable certification, but is We particularly strive to help party suppliers to develop their not exclusively an objective for our own programmes and welcome independent smallholders. 495,853, 83% 75,088, 13% our palm oil scheme smallholders support from governments, CSOs Indonesia Malaysia and customers to assist smallholders achieve certification under in reaching compliance. 620, 0.1% 22,857, 4% Ghana Nigeria applicable national certifications 104 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 105

Throughout 2019, we also partnered In Malaysia programmes are being Building capacity with first-tier suppliers in Latin America with four co-operatives of independent implemented at three of our mills in smallholders in Riau and Jambi to achieve Sabah until 2020 to assist independent In Latin America, we are working with Through the Wilmar Supports Sustainable ISPO certification. The co-operatives smallholders. This is in collaboration with our first-tier palm oil suppliers to build Entrepreneurs (WISSE) programme, we consist of 735 smallholders who manage Wild Asia’s smallholder programme and capacity and provide training to their initially trained 3,300 smallholders as a total of almost 1,863 hectares of land. entails building capacity to achieve MSPO smallholder suppliers through innovative sustainable entrepreneurs. We are now The smallholders received assistance and RSPO certification, classroom training local partnership platforms. training an additional 1,800 smallholders on practices such as integrated farmer and a fertiliser credit scheme. Out of the and began a follow-up programme in guidance programmes, farmer organisation 720 smallholders supplying our mills, 220 In 2019 we began the second phase of our September 2019 to assist 900 of these empowerment, and implementing a of them are covered by this programme. Wilmar Small Growers Support Colombia scheme smallholders in becoming RSPO traceability programme to help track palm (WISSCo) programme, called WISSCo2. We certified. In 2019, pre-audits of two mills oil from the plantations to the refinery. One In total, more than US$ 3.27 million was plan to reach 437 smallholders in Colombia were carried out and a ‘toolbox’ was created co-operative achieved ISPO certification in invested in smallholder engagements in to enhance their sustainable practices and containing SOPs, templates and document 2019, with three more to follow in 2020. 2019. encourage them on their path to certification appropriate for smallholder certification. We by training trainers, training smallholders, are scheduled to carry out training in 2020. We also have a voluntary fertiliser and implementing audit assessments. This The programme will take three years and programme for our Indonesian independent In total, more than follows the completion of our first two-year is sponsored by Olenex and its customers, smallholders which covers aspects of training programme under WISSCo. The through a crowd funding scheme called fertiliser, price incentives and best practice. US$ 3.27 million was programme is fully sponsored by our joint Mariposa. Since 2017, participation has increased invested in smallholder venture partner, Olenex, and customer, from 8,864 to 15,572, accounting for a 75% FrieslandCampina. increase by 2019. engagements in 2019.

READ THE WISSCO2 DECEMBER 2019 PROGRESS REPORT FOR MORE INFORMATION

Supporting sugarcane outgrowers

We have implemented training programmes for sugar outgrowers in Myanmar covering good farming practices for land preparation, planting systems, cane nutrient requirements, fertiliser application, weed control, and the safe handling and application of chemicals.

In July 2019, our India sugar operations began a best management practice training programme for cane growers associated with SRSL in collaboration with Solidaridad Asia, which covers:

• Training and capacity building to create awareness about new cane varieties, innovative technologies of certain grub and weed menaces and mechanisation. • Adopting wide-row planting to benefit from higher productivity, water saving, and raising intercrops for additional income. • No-trash burning practices and using in-situ mulching to conserve moisture, control weeds, and enrich soil fertility. A unique audio tune has also been activated on mobiles phones of field staff to create mass awareness amongst supplying farmers, which can be heard when the farmers call Wilmar employees on their mobile phones. • On-site production of vermi-compost to improve soil health through recycling farm waste and in-situ mulching of trash while avoiding burning. 2000 ready-made ‘vermi- beds’ have been supplied to farmers cost-free in the project area to date.

SEE MORE ON OUR SMALLHOLDER PROGRAMMES

FFB Grading at SSDP Mill 106 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 107

COMMUNITY ENGAGEMENT, DEVELOPMENT AND EMPOWERMENT

Many of our operations are in rural areas and the neighbouring communities. We Update on the of developing countries and our activities want to ensure we contribute in a positive have direct and indirect impacts on the way as good corporate citizens in the rural Pasaman Barat Community conflicts livelihoods of employees, their families, communities where we operate.

Respecting community rights Wilmar takes every allegation of human

We are committed to respect and uphold with all stakeholders, for example through rights violations seriously and ensure legal and customary land tenure rights mediation. Our operations teams will also follow up by a thorough investigation of communities and individual rights of work to identify and provide remediation Indigenous and local communities. Prior to whenever Wilmar has caused or contributed into the cause. any new planting, Free, Prior and Informed to negative human rights impacts, such Consent (FPIC) must be granted to ensure as in relation to Indigenous and local In September 2018, Wilmar commissioned to resolve the related conflicts in Pasaman local communities have clear and specific communities’ rights and labour rights. Earthworm Foundation (EF) to conduct Barat. avenues to negotiate the conditions of a comprehensive evaluation into issues any project. This is in accordance with the While there are formal avenues to raised against Wilmar’s internal systems on In November 2018, Wilmar explored a United Nations Declaration on the Rights of raise grievances through our grievance social grievance and resolution at three of desktop-based risk assessment related Indigenous People (UNDRIP) and the High mechanism and via site-level complaints its subsidiaries in Pasaman Barat in West to Wilmar in Pasaman Barat with the Carbon Stock Approach (HCSA) toolkit. We mechanisms, a dedicated protocol related to Sumatra, including that of our subsidiary PT. Forest Peoples Programme (FPP) and the expect the same of our suppliers. the no exploitation component of our NDPE Primatama Mulia Jaya. These issues date RSPO Investigation Monitoring Unit. We policy will be published in 2020 to better back to a land acquisition in the 1990s and communicated this position to FPP and In land-related planning, participatory address breaches of legal and customary reflect the challenges of the complex land the RSPO after we shared the report in mapping is carried out to involve the Indigenous and community rights. use and ownership matters with overlapping March 2019. communities, governments, and supporting or un-delineated land rights in concessions NGOs. If a dispute or conflict arises, we We also seek to support food security for in Indonesia. Hundreds of stakeholders in There are currently three active RSPO will honour long-term relationships with local communities through assisting with Pasaman Barat were engaged, including complaint cases involving Wilmar and local the communities and amicably solve issues crop diversity and/or security of food prices. members of the affected community, communities in West Sumatra. In October village heads, community and customary 2019, we published the latest updates leaders, smallholder co-operative units, local via our Sustainability Brief detailing the NGOs, and Wilmar management. Multiple progress of conflict cases in Pasaman specific community-related issues and Barat. Wilmar continues to engage and recommendations were identified to address work closely with the RSPO to ensure the these concerns and achieve resolutions. We cases are handled properly and with higher began working on implementing Earthworm accountability and will transparently report Foundation’s recommendations to address bi-annually on our progress to resolve We are committed to respect and specific gaps while continuing engagement intrinsic issues within the region. uphold legal and customary land with the affected communities in an attempt tenure rights of communities and DETAILS ON RECOMMENDATIONS PUT FORWARD AND OUR PROGRESS individual rights of Indigenous AS AT OCTOBER 2019 CAN BE FOUND IN EF’S FIRST PHASE REPORT. and local communities.

Closed RSPO complaint case on PT. Permata Hijau Pasaman (PHP) Community infrastructure and programmes In April 2018, a complaint was submitted Unit (IMU) to monitor implementation of We provide infrastructure and programmes around plantations. In 2019, Wilmar invested to the RSPO against one of Wilmar’s the action plan. The investigation by RSPO to facilitate community self-reliance at our US$ 10 million in community development subsidiaries, PT. PHP regarding plasma co- was concluded in January 2020 with the operations for worker families and local initiatives and provisions. Some examples operation with the local community. The case resolution agreement signed by all parties communities. This includes the provision of community programmes are shown in was closed in September 2018, passing the in April 2020. of schools, maintaining worker housing, page 108-109. case to RSPO’s Investigation and Monitoring and establishing public facilities in and 108 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 109

Wilmar school upgrades Disaster relief

Wilmar has ongoing school redevelopment programmes in Indonesia, Nigeria and Ghana to Wilmar provides in-kind contributions for disaster relief efforts in times of need, such as ensure that schools are upgraded with adequate facilities including computer labs, science the unprecedented floods in North Queensland in February 2019. This is in addition to labs and libraries. We also aim to ensure that all settings are equipped for extracurricular the ongoing support we provide to community festivals and events through our various activities, such as music, arts, sports and uniformed groups. The redevelopment programme sponsorships and donations. We are also proud supporters of youth programmes, including annually benefits between 6,500 and 7,000 children from pre-primary school age through partnering with the North Queensland Cowboys National Rugby League team to host junior to secondary school age. rugby league clinics in our milling regions.

In support of the 2019 Australia bushfires, Wilmar Sugar Australia donated AUS $20,000 to the Victorian Bushfire Appeal as monetary aid. We have also been approached to provide sugar to beekeepers in several states where bushfires have destroyed hives and natural vegetation. The Queensland government has purchased the first order of 35 pallets of sugar, which was delivered in March 2020. One of our employees was also a volunteer firefighter during this time to assist efforts in New South Wales.

Supporting local communities in Australia SCHOOL REDEVELOPMENT PROGRESS

We were honoured to be recognised for our continuous community support at the inaugural SCHOOLS IN 10/15 INDONESIA Hinchinbrook Business Awards, where we received the Heart of Hinchinbrook Community Spirit Award 2019. The judging panel commended Wilmar for our commitment to the local community, and the contribution made to the social fabric of the region. SCHOOLS IN 5/6 NIGERIA

SCHOOLS IN Supporting local 2/2 GHANA communities in India

Children’s safety In India, our SRSL operations have close relationships with surrounding communities. We have contributed to infrastructure by providing access to drinking water, office buildings, education programmes canteens and banking facilities. The operations provided drinking water and food provisions to the communities as well as monetary donations in the face of the massive flooding that took place in 2019. Medical check-ups and dispensaries are provided to employees, safety training programmes are given to homemakers who live in the area, mosquito fogging is Our operations in Australia are 100 years old with communities built around these areas implemented, and vaccinations are provided to local communities. to specifically support these operations. There is therefore a high dependence on our provisions. We have placed a significant focus on children’s safety education programmes. We run ‘Cane Train’ safety awareness campaigns for the community. This includes our ‘Cane Train’ safety programmes in schools and kindergartens, multimedia advertising campaigns, and media releases highlighting the potential hazards of ignoring signals and warnings at cane train crossings. In 2019, we expanded our ‘Use your Train Brain’ campaign, with the SEE MORE ON OUR COMMUNITY DEVELOPMENT WORK development of print, TV and radio ads, postcards, billboards, and collateral for children. 110 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 111

Base data

INCOME STATEMENT – GROUP PRODUCTION – PALM OIL

US$ MILLION FY2019 FY2018 42 FY2017 FY2016 FY2015 FY2019 FY2018 FY2017 FY2016 FY2015

REVENUE 42,641 44,498 43,574 41,402 38,777 FFB PRODUCTION (MT) 3,914,613 4,189,728 3,922,904 3,817,969 4,481,022

PROFIT BEFORE TAX 1,698 1,612 1,563 1,300 1,379 FFB YIELD (MT FFB/HA) 20.11 21.6 19.7 19.0 21.4

NET PROFIT 1,293 1,125 1,196 972 1,023 CPO (MT) 1,903,413 1,966,505 1,742,618 1,740,298 1,995,800

PK (MT) 467,064 482,977 421,574 424,913 472,968

CPO EXTRACTION RATE (%) 19.5 19.9 20.0 20.0 20.5

PK EXTRACTION RATE (%) 4.8 4.9 4.8 4.9 4.9

BALANCE SHEET - GROUP

US$ MILLION FY2019 FY2018 FY2017 FY2016 FY2015

TOTAL ASSETS 47,049 45,713 40,933 37,032 36,926 PRODUCTION – SUGARCANE (OWN FARMS ONLY)

TOTAL LIABILITIES 29,172 28,938 23,947 21,653 21,625

SHAREHOLDERS’ FUNDS 16,763 16,046 15,964 14,435 14,394 FY2019 FY2018 FY2017 FY2016

SUGARCANE PRODUCTION (MT) – AUSTRALIA 461,557 484,038 491,340 521,777

SUGARCANE PRODUCTION (MT) – MYANMAR44 28,434 21,325 29,146 13,979

SUGARCANE YIELD (MT/HA) – AUSTRALIA 87.6 91.4 94.0 102.0

SUGARCANE YIELD (MT/HA) – MYANMAR 51.2 69.4 64.8 73.1 SEGMENTAL SALES VOLUME - GROUP

MT ‘000 FY2019 FY2018 FY2017 FY2016 FY2015

TROPICAL OILS 43 25,581 24,275 23,163 23,368 23,500

SUGAR 13,636 11,742 10,974 13,544 13,118

42 FY2018 figures were restated subsequent to the finalisation of purchase price allocation exercise for the acquisition of Shree Renuka Sugars Limited 44 FY2018 Myanmar data is reported based on the calendar year (January to December 2018) due to unpredictable shifts in harvesting cycles and is not (SRSL) and its subsidiaries. comparable to previous years’ data, where they were first collated based on an April to March harvesting cycle. Moving forward, all sugarcane production data will be reported as at end-December of the reporting period. 43 Excludes plantation volume.percent-of-indonesias-palm-oil-landbank-is-stranded/ Accessed 18 February 2020. 112 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 113

SMALLHOLDERS – PALM OIL OPERATIONS CONSERVATION AREA (HA) – PALM OIL ESTATES

HECTARES FY2019 FY2018 FY2017 FY2016 FY2015 REGIONS FY2019 FY2018 FY2017 FY2016 FY2015

CENTRAL 15,086 15,084 15,083 15,088 15,087 TOTAL NO. OF SCHEME SMALLHOLDERS KALIMANTAN INDONESIA 15,583 15,402 7,527 WEST 1,920 2,010 2,041 2,036 2,033 KALIMANTAN GHANA 438 438 438 SUMATRA 3,009 3,011 3,114 3,128 3,043 NIGERIA 43 43 43 SABAH 6,745 6,069 6,063 6,060 6,083 TOTAL 16,064 15,883 8,008 SARAWAK 1,725 1,722 1,705 1,721 1,658 TOTAL SCHEME SMALLHOLDER AREA (PLANTED) GHANA 83 83 83 83 83 33,742 34,149 32,874 29,634 31,428 INDONESIA NIGERIA 2,807 1,633 1,653 1,635 1,635 1,650 1,650 1,650 GHANA TOTAL 31,375 29,613 29,742 29,751 29,622 NIGERIA45 0 0 0

TOTAL 35,391 35,799 34,524 CONSERVATION AREA (HA) – SUGARCANE FARMS TOTAL RSPO-CERTIFIED SMALLHOLDER AREA

INDONESIA 3,445 2,040 4,01246 COUNTRIES FY2019 FY2018 FY2017 FY2016 FY2015 GHANA 1,650 1,650 1,650 AUSTRALIA 675 675 675 675 NIGERIA 0 0 0 MYANMAR 0 0 0 0 TOTAL 5,095 3,690 5,662 INDIA 151

TOTAL 826 675 675 675 PROPORTION OF FFB PROCUREMENT BUDGET ALLOCATED FOR INDEPENDENT SMALLHOLDERS INFRASTRUCTURE AREA – PALM OIL OPERATIONS

COUNTRIES FY2019 FY2018 FY2017 FY2016 FY2015 REGIONS FY201947 FY2018 FY2017 FY2016 FY2015 INDONESIA 7%

MALAYSIA 9% CENTRAL 3,776 3,794 KALIMANTAN GHANA 27% WEST 1,221 1,236 NIGERIA 34% KALIMANTAN SUMATRA 2,232 2,173

SABAH 3,570 3,396

SARAWAK 2,461 2,403

GHANA 145 135

NIGERIA 974 870

TOTAL 14,380 14,008

45 Nigeria scheme smallholder areas have been restated to align with Annual Report's categorisation.

46 Certified smallholders planted area in Indonesia was restated. It was reported as 3,876 in SR2017. 47 2019 infrastructure data has been updated with inclusion of nursery areas on top of previous areas for mills, housings and roads. 114 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 115

FIRE INCIDENTS – PALM OIL AND SUGAR OPERATIONS CARBON EMISSIONS (RSPO PALMGHG) – PALM OIL MILLS

CENTRAL WEST YEAR ITEM SUMATRA AUSTRALIA MYANMAR KALIMANTAN KALIMANTAN FY2019 FY2018 FY2017 FY2016 FY2015

PLANTED AREA BURNT (HA) 504.30 9.11 428.30 2,808 119 NET GHG EMISSIONS (MT CO2e/YEAR)

2015 UNPLANTED AREA BURNT (HA) 1,028.40 2.00 205.10 0 0 TOTAL 2,036,815 3,881,301 4,033,437 2,943,672 3,412,351

TOTAL FIRES (NO.) 323 9 82 0 0 NET OUTGROWER EMISSIONS 1,178,589 2,128,775 1,916,554 1,079,983 1,724,430

PLANTED AREA BURNT (HA) 0 1.37 0.02 2,807 312 NET GROUP EMISSIONS 849,226 1,752,526 2,116,883 1,863,689 1,687,921

2016 UNPLANTED BURNT (HA) 82.88 0 0 0 0 EMISSION SOURCES AND SINKS (MT CO2e/YEAR)

TOTAL FIRES (NO.) 17# 5# 1# 0 0 LAND CLEARING 1,606,786 1,522,250 1,733,027 1,637,743 1,478,029

FIRES WITHIN CONCESSION (NO.) 20 1 2 149 0 CROP SEQUESTRATION -1,670,966 -1,604,662 -1,867,781 -1,738,834 -1,602,795

AFFECTED AREA WITHIN 307.9 2.25 0.91 FERTILISER 196,027 145,909 183,310 143,267 137,170 CONCESSION (HA)

N2O 175,868 291,609 349,525 298,324 224,442 201748 FIRES WITHIN 5KM RADIUS 20 6 2 OF CONCESSION (NO.) FIELD FUEL USE 51,071 55,287 60,822 57,606 61,127

PLANTED AREA BURNT (HA) 2,859 0 PEAT 485,081 1,074,914 1,261,404 968,422 1,002,722

53 UNPLANTED BURNT (HA) 60 0 CONSERVATION AREA OFFSET -77,562 -126,745 -58,718 -62,170

FIRES WITHIN CONCESSION (NO.) 51 11 2 0 0 METHANE FROM POME 367,360 493,938 546,262 647,223 556,585

AFFECTED AREA WITHIN 371.6 37.2 14.4 MILL FUEL USE 11,847 12,323 18,866 19,419 16,902 CONCESSION (HA) MILL ELECTRICITY CREDIT -296,347 -112,367 -109,959 -107,450 -186,261 2018 FIRES WITHIN 5KM RADIUS 40 16 42 OF CONCESSION (HA) GRID ELECTRICITY UTILISATION 62 69 125 139

PLANTED AREA BURNT (HA) 2,917 0 NET GHG EMISSIONS BY COUNTRY (MT CO2e/YEAR)

UNPLANTED BURNT (HA) 0 0 MALAYSIA 225,124 291,285 324,651

HOTSPOTS WITHIN CONCESSION 83 48 12 INDONESIA 1,785,814 3,577,717 3,681,437 DETECTED (NO.) GHANA 25,877 12,299 27,346 FIRES WITHIN CONCESSION (NO.) 75* 27* 64* 151 552

GHG EMISSION INTENSITY BY REGION (MT CO2e/MT CPO) AFFECTED AREA WITHIN 713.42* 190.98* 49.52* CONCESSION (HA) SABAH 0.51 0.73 0.81 0.74 0.87

201950 HOTSPOTS WITHIN 5KM RADIUS 497 439 671 SARAWAK 0.77 0.73 0.75 0.86 0.78 OF CONCESSION DETECTED (NO.) MALAYSIA 0.57 0.73 0.79 0.77 0.85 FIRES WITHIN 5KM RADIUS 101 37 76 OF CONCESSION (NO.) CENTRAL KALIMANTAN 0.26 0.92 1.17 1.46 0.86

PLANTED AREA BURNT (HA) 3044 90 WEST KALIMANTAN 8.06 22.47 16.04 7.5 10.41

UNPLANTED AREA BURNT (HA) 0 0 SUMATRA 2.36 4.70 4.66 4.08 5.52

INDONESIA 1.92 3.68 3.83 3.03 3.36 # EY has previously performed limited assurance on this figure as disclosed in Wilmar Sustainability Report 2016. * EY has performed limited assurance procedures on this figure. GHANA 0.71 0.40 0.98 1.04 48 Since 2017, reporting is based on area burnt within concession boundaries and area burnt outside concession boundaries (within 5km radius). GROUP 1.49 2.77 2.88 2.27 49 Accidental fires. 50 Beginning FY2019, fire incidents reporting includes hotspots detected to better reflect effectiveness of Wilmar’s early detection system and rapid 53 response team/instances of potential fires against actual fires. For our 2018 PalmGHG calculations we have included breakdown by area. Therefore, sequestration in conservation area figures are significantly higher than 2017 figures, due to the HCV area breakdown for Central Kalimantan. 51 Accidental fires.

52 Accidental fires. 116 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 117

WATER CONSUMPTION INTENSITY – PALM OIL OPERATIONS WATER WITHDRAWAL – SUGAR OPERATIONS

WATER CONSUMPTION INTENSITY (M³/MT FFB) – MILLS FY2019 FY2018 FY2017 FY2016 FY2015 FY2019 FY2018 FY2017 FY2016 FY2015

CENTRAL KALIMANTAN 1.10* 1.19 1.46 1.33 1.61 WATER WITHDRAWN (M³) – PLANTATIONS WEST KALIMANTAN 1.53* 1.57 1.27 1.53 1.49 AUSTRALIA 28,148,340 37,134,908 32,673,000 31,708,000 34,596,000 SUMATRA 0.99* 1.02 1.12 1.55 1.40 MYANMAR 52,782 SABAH 1.64* 1.60 1.64 1.55 1.68 162,874 77,174 57,412

54 SARAWAK 2.00* 1.32 1.39 1.69 1.55 WATER WITHDRAWN (M³) – MILLS

GHANA 1.48* 1.38 1.52 1.43 1.63 AUSTRALIA 6,121,412 5,826,354 NIGERIA 1.54* 1.62 1.20 1.25 1.00 MYANMAR 11,970,552 * EY has performed limited assurance procedures on this figure.

INDIA 1,513,223

WATER WITHDRAWAL – PALM OIL OPERATIONS

EFFLUENT DISCHARGE BY REGION AND DISCHARGE WATER WITHDRAWN (M³) – FY2019 FY2018 FY2017 FY2016 FY2015 MILLS AND PLANTATIONS DESTINATION – PALM OIL OPERATIONS

CENTRAL KALIMANTAN 1,954,075 2,406,110 3,042,559

WEST KALIMANTAN 1,102,164 1,091,947 3,871,662 FY2019 FY2018 FY2017 FY2016 FY2015

SUMATRA 5,584,614 6,002,148 5,565,308 EFFLUENT DISCHARGE TO RIVER (M³) – MILLS SABAH 993,299 1,077,822 1,061,177 WEST KALIMANTAN 68,111 40,512 35,177 SARAWAK 349,664 403,286 351,789 SUMATRA 133,004 181,900 144,392 GHANA 361,265 SABAH 1,126,502 1,460,791 1,404,832 NIGERIA 198,923 SARAWAK 504,662 670,102 819,249

EFFLUENT DISCHARGE TO LAND APPLICATION (M³) – MILLS

CENTRAL KALIMANTAN 167,099 155,747 256,042

WEST KALIMANTAN 155,641 178,493 82,536

SUMATRA 175,121 146,692 122,720

GHANA 98,324

54 2016-2018 data have been restated to exclude Suburmas mill in the calculations. 118 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 119

POME BOD LEVELS BY REGION AND DISCHARGE DESTINATION (mg/L) WATER DISCHARGE BY REGION AND DISCHARGE DESTINATION – PALM OIL OPERATIONS – SUGAR OPERATIONS

FY2019 FY2018 FY2017 FY2016 FY2015 FY2019 FY2018 FY2017 FY2016 FY2015

RIVER DISCHARGE WATER DISCHARGE TO SURFACE WATER (M³) – MILLS

WEST KALIMANTAN 87* 89 94 90# 83 AUSTRALIA 30,000

SUMATRA 52* 58 94 52# 79 MYANMAR 7,092,425 7,279,166

SABAH 28* 32 26 25# 32 WATER DISCHARGE TO THIRD PARTY (RECYCLED TO CANE LAND IRRIGATION) (M³) – MILLS

# SARAWAK 20* 17 19 17 16 AUSTRALIA 4,522,329

LAND APPLICATION INDIA55 514,106

CENTRAL KALIMANTAN 566* 1,052 506 271# 363

WEST KALIMANTAN 934* 312 317 251# 169

SUMATRA 1,244* 982 1,171 1,065# 928 HERBICIDE USAGE GHANA 150* 175 134 60 77

FY2019 FY2018 FY2017 FY2016 FY2015 * EY has performed limited assurance procedures on this figure. # EY has previously performed limited assurance on this figure as disclosed in Wilmar Sustainability Report 2016. HERBICIDE USAGE (TOXICITY UNITS/HA) – PALM OIL OPERATIONS

SABAH 921 687 617 647 737

SARAWAK 586 937 684 541 534

CENTRAL 218 209 283 253 328 PORE COD LEVELS BY COUNTRY (mg/L) – PALM OIL OPERATIONS KALIMANTAN

WEST 306 277 271 256 464 COUNTRY FY2019 FY2018 FY2017 FY2016 FY2015 KALIMANTAN

INDONESIA 76 SUMATRA 320 304 563 317 257

MALAYSIA 187 GHANA 261 382 316 259

NIGERIA 410 193 111 629

HERBICIDE USAGE (TOTAL ACTIVE INGREDIENT/HA) – SUGAR OPERATIONS

AUSTRALIA 4.14 3.60 4.07

MYANMAR 2.20 3.05 2.65

55 India’s discharge volume is mostly to cane land irrigation with some being used for green belt irrigation within mill compounds. 120 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 121

HERBICIDE TYPES – PALM OIL PLANTATIONS AND SUGAR ESTATES

HERBICIDES CURRENTLY USED HERBICIDES CURRENTLY USED USAGE PALM SUGAR USAGE PALM SUGAR IN WILMAR PLANTATIONS IN WILMAR PLANTATIONS

Glyphosate (isopropylamine/ Systemic and non-selective herbicide to control Imperata X X56 Sodium chlorate Non-organic and selective herbicide used for general X isopropylammonium) cylindrical, Paspalum conjugatum and Ottochloa nodosa. weeds control, such as Ottochloa nodosa, Paspalum conjagatum, Axonopus compressus, Mikania micrantha Paraquat Non-selective contact herbicide used to control a wide X and Gingantochloa levi. range of annual grasses and broad-leaved weeds and the tips of established perennial weeds. Paraquat is not Clethodim Selective post-emergence herbicide. Systemic, rapidly X systemic so it can be applied up to the four-leaf stage of absorbed and translocated from treated foliage to the sugarcane without lasting damage. root system and growing parts of the plant. Mostly used to control Eleusine indica. Pendimethalin Herbicide used in pre-mergence and post-emergence X applications to control annual grasses and certain Monosodium Methanearsonate Broad-spectrum herbicide used to control grasses and X broadleaf weeds. It inhibits cell division and cell (MSMA) broad leaf weeds. elongation. Fluazifop-p-butyl Selective phenoxy herbicide used for post-emergence X control of annual and perennial grass weeds. Metsulfuron-methyl Systemic herbicide used to control both narrow and broad X X leaf weeds when mixed with glyphosate isopropylamine. Indaziflam Pre- and post-emergence herbicide. Often mixed with X Glyphosate isopropylammonium to prevent or control Selective herbicide used to control certain broad leaf and Isoxaflutole X common and major weeds in plantation such as Paspalum grass weeds. conjagatum, Axonopus compressus, Ottochloa nodosa, Hedyotis verticillata, Asystasia intrusa, Ageratum S-metolachlor Isomer herbicide mixture used to control grasses and some X conyzoides, Cyperus rotundus and Digitaria ciliaris. broad-leaved weeds in a wide range of crops.

Imazapic Selective herbicide for both the pre and post-emergent X Haloxyfop Selective herbicide for the control of grass weeds in broad X control of some annual and perennial grasses and some leaf crops. Originally it was produced as a racemic mixture. broad leaf weeds. Flumioxazin Broad-spectrum contact herbicide, which works by X Non-selective herbicide used for the control of a broad interfering with the plants’ production of chlorophyll. Imazethapyr (ammonium/ X isopropylammonium) range of weeds including terrestrial annual and perennial MCPA Herbicide used in sugarcane production to control: Blue X grasses and broad leaf weeds. Top, Chinese Burr, Flannel Weed, Gambia Pea, Bell Vine, 57 Selective systemic herbicide used to control broad leaf Streaked Rattle Pod, Bindweed, Pink Convolvulus, Cupids Diuron X X weeds and grasses. Flower, Merremia Vine, Morning Glory.

Metribuzin Herbicide used to control certain broadleaf weeds and X Triclopyr butotyl (triclopyr butoxy Systemic and selective broad leaf weeds used to control X grassy weed species. ethyl ester) Asystasia intrusa, Mikania micrantha, Clidemia hirta and Melostoma malabathricum. Ametryn Herbicide which inhibits photosynthesis and other X enzymatic processes. It is used to control broad leaf weeds Glufosinate ammonium Used as a general narrow leaf weed control such as X X and annual grasses in pineapple, sugarcane and bananas. Paspalum conjugatum, Ottochloa nodosa, Fimbristylis miliacea and Borreria latifolia. Acifluorfen Contact diphenolic ether herbicide used to control broad X leaf weeds and grasses, which can be applied before or 2,4-D-(dimethylamine/ 2,4-D- (dimethylamine/dimethylammonium) is a systemic X X after crop emergence. dimethylammonium) and selective herbicide from the group of aryloxyalkanoic acids. This herbicide is used to control Mikania micrantha, Atrazine Herbicide of the triazine class, used to prevent pre- and X Borreria latifolia, Ageratum conyzoides, Paspalum post-emergence broad leaf weeds in crops such as maize conjagatum, Ottochloa nodosa and Nephrolipis bisserata. (corn) and sugarcane. Fluroxypyr-meptyl Used to control broad leaf and common weeds such X X Asulam Broad-spectrum herbicide used for post-emergent weed X as Asystasia intrusa, Mikania micrantha, Melostoma control in sugarcane. malabathricum, Ottochloa nodosa, Paspalum conjagatum and Axonopus compressus

56 For our sugarcane operations, Glyphosate is only used for managing weeds in fallow, end of row and headlands areas. Glyphosate is not applied 57 Strict controls in place for when and how much can be applied for Australia operations. in sugarcane crop. 122 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 123

WILMAR’S LOWEST WAGE RATES AND LEGAL MINIMUM WAGE BREAKDOWN OF WILMAR EMPLOYEES BY GENDER – PALM OIL AND BY COUNTRY – PALM OIL AND SUGAR OPERATIONS SUGAR OPERATIONS – PLANTATIONS, MILLS, REFINERIES

WILMAR LOWEST FY2019 FY2018 FY2017 FY2016 FY2015 PALM OIL OPERATIONS MONTHLY WAGE LEGAL MINIMUM WAGE (EXCL. PIECE-RATE) Male Female Male Female Male Female Male Female Male Female

Indonesia (Rupiah)58 2,040,407/ month 2,040,407 59/month SABAH 5,396 3,143 5,410 3,243 3,96860 2,41459 3,649 2,157 4,053 2,155 Malaysia (Ringgit) 1,100/month 1,100/month

Ghana (Cedi) 794/month 319/month SARAWAK 1,976 1,179 2,121 1,248 1,601 1,028 1,560 1,057 1,808 1,137

Nigeria (Naira) 30,000/month 30,000/month MALAYSIA 2,013 498 1,777 413 (DOWNSTREAM) SUGAR OPERATIONS WILMAR LOWEST WAGE LEGAL MINIMUM WAGE CENTRAL 11,734 4,160 10,952 4,170 10,604 3,984 9,689 3,923 11,223 4,694 KALIMANTAN Australia (AUD) – farms and mills 26.81 hour 19.49/hour

WEST Australia (AUD) - refineries 26.20/hour 19.49/hour 4,515 1,096 4,444 1,405 4,478 1,280 4,105 1,478 4,974 1,628 KALIMANTAN New Zealand (NZD) 24.14/hour 17.70 / hour

Myanmar (Burmese Kyat) 144,000/month 144,000/month SUMATRA 9,519 2,823 10,552 3,150 10,590 3,365 8,543 2,760 9,928 3,771 (PALM OIL OPERATIONS) (PALM Indonesia (Rupiah) 3,932,193/month 3,932,193/month INDONESIA 8,251 1,463 (DOWNSTREAM) India (INR) 9,530/month 8,213.4/month Number of male and female employees GHANA 1,051 457 1,151 496 1,035* 739* 1,808 1,137

NIGERIA 3,819 1,821 3,939 1,827 1,604 821 898 463

AUSTRALIA 1,860 455 1,868 452 1,717 61 342 60

NEW 167 36 146 41 185 39 ZEALAND

INDONESIA 580 19 612 22

MYANMAR 62 431 259 542 172 843 255 (SUGAR OPERATIONS)

INDIA 63 1,925 22 Number of male and female employees

* Figures reported in Sustainability Report 2018 excluded number of women and men in temporary workforce as gender data was not available for temporary workers. This has been restated to now include temporary workers.

60 Restated for 2017

61 Excludes data from refinery operations as gender data was not available.

58 Indonesia’s 2019 list of legal minimum wages in different provinces can be accessed at wageindicator.org 62 Figures exclude women and men in temporary workforce as gender data was not available for temporary workers. 59 This refers to the lowest legal minimum wage listed among the provinces where Wilmar has oil palm operations 63 Figures exclude number of women and men hired through third party agents. 124 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 125

LOST TIME INJURY FREQUENCY RATE (LTIFR) LOST TIME INJURY FREQUENCY RATE (LTIFR) PER 200,000 WORKING HOURS - PLANTATIONS PER 200,000 WORKING HOURS - REFINERIES

FY2019 FY2018 FY2017 FY2016 FY2015 63 FY2019 FY2018 FY2017 FY2016 FY2015

OIL PALM PLANTATIONS PALM OIL REFINERIES

Central Kalimantan 1.27 1.91 2.82 4.18 Malaysia 0.69 0.42 West Kalimantan 1.83 1.43 1.54 1.06

Sumatra 6.23 6.03 5.90 6.10 Indonesia 0.20 0.13

Sabah 0.97 0.56 0.54 1.01 SUGAR REFINERIES

Sarawak 1.96 4.06 3.21 2.96 Australia 1.70 1.26 0.75 1.99 1.82 Ghana 0.30 0.17 0.23 0.47 New Zealand 1.10 1.64 0.56 2.70 0 Nigeria 2.94 1.67 5.00 5.40

SUGARCANE PLANTATIONS Indonesia 0 0 0.13

Australia 0 0 2.3 India 0 Myanmar 0 0 0

LTIFR PER 200,000 WORKING HOURS – MILLS

FY2019 FY2018 FY2017 FY2016 FY2015

PALM OIL MILLS

Central Kalimantan 0.42 0.81 1.55 1.18

West Kalimantan 0.17 0.48 0.70 0.16

Sumatra 0.27 0.31 0.32 0.67

Sabah 1.37 1.79 1.99 2.66

Sarawak 3.03 2.70 2.90 2.15

Ghana 1.13 0.00 0.78 0.53

Nigeria 64 1.34 3.86

SUGAR MILLS

Australia 1.3 1.87 1.09

Myanmar 0.10 0.10 0.12

India 0.61

63 In the course of compiling data for our 2015 Sustainability Report, we discovered that methodology for collating incidents differed across our sites, with some sites using national or regional thresholds for reporting, and others using international Occupational Safety and Health Administration (OSHA) standards. Due to these inconsistencies, we have excluded LTIR reporting in our 2015 report. We resumed LTIR reporting in our 2016 Sustainability Report after setting a more consistent reporting standard across the Group.

64 Robust systems for our accident reporting for our Nigeria mills were still being established prior to 2018. We will now include accident reporting moving forward. 126 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 127

FATALITIES

FY2019 FY2018 FY2017 FY2016 FY2015

FATALITIES – PLANTATIONS (PALM OIL AND SUGARCANE)

Central Kalimantan 0 2 0 0 1

West Kalimantan 1 0 0 0 0

Sumatra 1 2 2 0 0

Sabah 1 0 1 1 1

Sarawak 0 0 0 0 0

Ghana 0 0 0 0 0

Nigeria 0 1 0 0 0

Australia 0 0 0 0 0

Myanmar 0 0 0 0 0

FATALITIES – MILLS (PALM OIL AND SUGAR)

Central Kalimantan 1 0 1 0 0

West Kalimantan 0 0 0 0 0

Sumatra 0 1 1 0 2

Sabah 2 0 0 0 0

Sarawak 0 0 0 0 0

Ghana 0 0 0 0 0

Nigeria 0 0 0 0 0

Australia 0 0 0 0 0

Myanmar 0 0 0 1 0

India 0

FATALITIES – REFINERIES (PALM OIL AND SUGAR)

Indonesia 0 0 0 0 0

Malaysia 0 0 0 0 0

Australia 0 0 0 0 0

New Zealand 0 0 0 0 0

India 1 128 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 129

GRI content index DISCLOSURE PAGE OR REASON FOR OMISSION Our approach to sustainability 28 Note: Wilmar adopts a precautionary The Global Reporting Initiative (GRI) is a multi-stakeholder based on the GRI Standards should provide a balanced 102-11 Precautionary Principle or approach approach through platforms such as the HCS standard for sustainability reporting, providing guidance on and reasonable representation of an organisation’s positive Approach and RSPO determining report content and indicators. GRI is the first and negative contributions towards the goal of sustainable and most widely adopted global standard for sustainability development. reporting and has been designed to enhance the global • Our approach to sustainability 28 comparability and quality of information on environmental This report has been prepared in accordance with the latest 102-12 External initiatives • and social impacts, thereby enabling greater transparency version of the GRI Standards: Core option. Stakeholder Engagement and accountability of organisations. Sustainability reporting • 102-13 Membership of associations Partnerships and Collaborations • Stakeholder Engagement

STRATEGY GRI 102: GENERAL DISCLOSURES 2016 • Statement from the Board 6 102-14 Statement from senior decision-maker • Annual Report 2019 2 DISCLOSURE PAGE OR REASON FOR OMISSION • Focus on ESG materiality 2 102-15 Key impacts, risks, and opportunities • Sustainability governance and management 25 ORGANISATIONAL PROFILE • Our approach to sustainability 28

102-1 Name of organisation About this report 1 ETHICS AND INTEGRITY Activities, brands, products, and • About Wilmar 16 102-2 Values, principles, standards, and • Upholding ethics and integrity 27 services • Annual Report 2019 16-17 102-16 norms of behaviour • Our approach to sustainability 28

102-3 Location of headquarters About Wilmar 16 • Upholding ethics and integrity 27 • Key Human Rights Framework areas of 87 • About Wilmar 16 102-4 Location of operations Mechanisms for advice and concerns focus • Our operations 19 102-17 about ethics • Implementing reporting mechanisms at 98 our sites 102-5 Ownership and legal form About Wilmar 16 • Respecting community rights 106

• About Wilmar 16 102-6 Markets served GOVERNANCE • Annual Report 2019 10 • Sustainability governance and management 25 102-18 Governance structure • About Wilmar 16 • Sustainability Governance Structure 102-7 Scale of the organisation • Our operations 19 • 10-15 Annual Report 2019 102-19 Delegating authority Governance and management 24

• About Wilmar 18 Executive-level responsibility for Information on employees and other • Implementing best practice for fair 102-8 88-93 102-20 economic, environmental, and social Governance and management 24 workers working conditions 123 topics • Base data

Consulting stakeholders on economic, • Our approach to sustainability 28 • Integrated agribusiness 18 102-21 environmental, and social topics • Stakeholder Engagement • Our operations 19 102-9 Supply chain • Overview of our supply chains 38 Composition of the highest • Governance and management 24 • Assisting smallholders 102 102-22 governance body and its committees • Annual Report 2019 56 Significant changes to the 102-10 Scope and boundaries 1 102-23 Chair of the highest governance body Governance and management 24 organisation and its supply chain 130 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 131

DISCLOSURE PAGE OR REASON FOR OMISSION DISCLOSURE PAGE OR REASON FOR OMISSION

Nominating and selecting the REPORTING PRACTICE 102-24 63-64 highest governance body Annual Report 2019 Entities included in the consolidated • Scope and boundaries 1-2 102-45 financial statements • Annual Report 2019 183 102-25 Conflicts of interest Annual Report 2019 48-51 Defining report content and topic • Scope and boundaries 1-2 Role of highest governance body in • Governance and management 24 102-46 102-26 Boundaries • Focus on ESG materiality 2-5 setting purpose, values, and strategy • Annual Report 2019 57 102-47 List of material topics Focus on ESG materiality 2-5 Evaluating the highest governance 102-28 Annual Report 2019 65 body’s performance Where necessary and possible, restatements 102-48 Restatements of information are explained in footnotes to the respective Effectiveness of risk management information. 102-30 69 processes Annual Report 2019 102-49 Changes in reporting Scope and boundaries 1-2 Review of economic, environmental, 102-31 Governance and management 24 and social topics 102-50 Reporting period Scope and boundaries 1-2

Highest governance body’s role in Our most recent previous report, the 102-32 Governance and management 24 sustainability reporting 102-51 Date of most recent report Sustainability Report 2018 was published on 28 May 2019 102-35 Remuneration policies Annual Report 2019 66 102-52 Reporting cycle Annually 102-36 Process for determining remuneration Annual Report 2019 66 Contact point for questions regarding 102-53 Contact us 157 STAKEHOLDER ENGAGEMENT the report

102-40 List of stakeholder groups Claims of reporting in accordance • About this report 1 Stakeholder Engagement 102-54 with the GRI Standards • GRI Content Index 128 Working with unions and establishing 102-41 Collective bargaining agreements 97 collective bargaining agreements 102-55 GRI content index GRI Content Index 128

• About this report 1 102-56 External assurance Assurance statement 147 • Striving for sustainability in our supply 38 102-42 Identifying and selecting stakeholders chains • Working with communities 102-109 • Stakeholder Engagement

• Focus on ESG materiality 2-3 • Statement from the Board 6 • Engaging suppliers on our NDPE 42 commitments • Working with unions and establishing 97 102-43 Approach to stakeholder engagement collective bargaining agreements • Assisting smallholders 102 • Community engagement, development 106 and empowerment • Stakeholder Engagement

• Focus on ESG materiality 2-5 102-44 Key topics and concerns raised • Stakeholder Engagement 132 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 133

MATERIAL TOPICS MATERIAL TOPICS Economic Economic

GRI STANDARD DISCLOSURE PAGE OR REASON FOR OMISSION GRI STANDARD DISCLOSURE PAGE OR REASON FOR OMISSION

ORGANISATIONAL PROFILE INDIRECT ECONOMIC IMPACTS

Explanation of the material topic and • About Wilmar 16 • Striving for sustainability in 38 103-1 Explanation of the material topic and its Boundary • 9 103-1 our supply chains Annual Report 2019 its Boundary • Working with communities 102 GRI 103: Management The management approach and its • About Wilmar 16 103-2 GRI 103: Approach components • Annual Report 2019 9 • Striving for sustainability in 38 Management The management approach and its 2016 103-2 our supply chains Approach components Evaluation of the management • About Wilmar 16 • Working with communities 102 103-3 2016 approach • Annual Report 2019 9 • Striving for sustainability in 38 Evaluation of the management • Financial and employee 18 103-3 our supply chains Direct economic value generated and approach 201-1 highlights • Working with communities 102 GRI 201: distributed • Annual Report 2019 15 Economic • Community infrastructure 106 Performance Infrastructure investments and Financial implications and other risks • Managing climate change 55 203-1 and programmes 2016 services supported 201-2 and opportunities due to climate risks GRI 203: • Base data 113 change • CDP submission 2019 Indirect Economic • Striving for sustainability in 38 MARKET PRESENCE Impacts our supply chains 2016 203-2 Significant indirect economic impacts • A holistic approach to child 94 protection • Global presence 16 • Working with communities 102 Explanation of the material topic and • Our operations 19 103-1 its Boundary • Overview of our supply 38 chains PROCUREMENT PRACTICES

• Overview of our supply 38 • Striving for sustainability in 38 Explanation of the material topic and GRI 103: our supply chains 103-1 chains The management approach and its its Boundary Management 103-2 • Implementing best practice 88 • Assisting smallholders 102 components Approach for fair working conditions GRI 103: 2016 • Assisting smallholders 102 • Striving for sustainability in 38 Management The management approach and its 103-2 our supply chains Approach components • Assisting smallholders 102 • Striving for sustainability in 38 2016 our supply chains Evaluation of the management 103-3 • Implementing best practice 88 • Striving for sustainability in 38 approach Evaluation of the management for fair working conditions 103-3 our supply chains approach • Assisting smallholders 102 • Assisting smallholders 102

GRI 202: • Implementing best practice 88 GRI 204: • Overview of our supply 38 Ratios of standard entry level wage by Market for fair working conditions Procurement Proportion of spending on local chains 202-1 gender compared to local minimum 204-1 Presence • Improving welfare and 92 Practices suppliers • Assisting smallholders 102 wage 2016 opportunities for women 2016 • Base data 112 134 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 135

MATERIAL TOPICS MATERIAL TOPICS Economic Environmental

GRI STANDARD DISCLOSURE PAGE OR REASON FOR OMISSION GRI STANDARD DISCLOSURE PAGE OR REASON FOR OMISSION

ANTI-CORRUPTION ORGANISATIONAL PROFILE

Explanation of the material topic and Explanation of the material topic • Managing climate change risks 55 103-1 Upholding ethics and integrity 27 103-1 its Boundary and its Boundary • Energy consumption 64 GRI 103: GRI 103: Management The management approach and its Management The management approach and its • Managing climate change risks 55 103-2 Upholding ethics and integrity 27 103-2 Approach components Approach components • Energy consumption 64 2016 2016 Evaluation of the management Evaluation of the management • Managing climate change risks 55 103-3 Upholding ethics and integrity 27 103-3 approach approach • Energy consumption 64

• Upholding ethics and 27 GRI 302: Energy consumption within the Communication and training about 302-1 Energy consumption 64 integrity Energy 2016 organisation GRI 205: 205-2 anti-corruption policies • Engaging suppliers on our 42 Anti- and procedures NDPE commitments Corruption WATER AND EFFLUENTS (SEE ALSO GRI 306) 2016 Confirmed incidents of corruption and Explanation of the material topic Increasing water efficiency and 205-3 Upholding ethics and integrity 27 103-1 73 actions taken and its Boundary protecting waterways GRI 103: Management The management approach and its Increasing water efficiency and 103-2 73 Approach components protecting waterways 2016 Evaluation of the management Increasing water efficiency and 103-3 73 approach protecting waterways

Interactions with water as a shared Increasing water efficiency and 303-1 73 resource protecting waterways

Management of water discharge- Increasing water efficiency and GRI 303: 303-2 73 related impacts protecting waterways Water 2018

• Water consumption in water- 75 303-3 Water withdrawal stressed areas • Base data 116

303-4 Water discharge Base data 117 136 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 137

MATERIAL TOPICS MATERIAL TOPICS Environmental Environmental

GRI STANDARD DISCLOSURE PAGE OR REASON FOR OMISSION GRI STANDARD DISCLOSURE PAGE OR REASON FOR OMISSION

BIODIVERSITY • Reducing GHG emissions 60 305-1 Direct (Scope 1) GHG emissions • CDP submission 2019 Explanation of the material topic Protecting, conserving, restoring 103-1 56 and its Boundary and enhancing biodiversity Energy indirect (Scope 2) GHG • Reducing GHG emissions 60 GRI 305: 305-2 GRI 103: emissions • CDP submission 2019 Emissions Management The management approach and its Protecting, conserving, restoring 103-2 56 2016 Approach components and enhancing biodiversity 305-4 GHG emissions intensity Reducing GHG emissions 60 2016 Evaluation of the management Protecting, conserving, restoring Reducing emissions through 103-3 56 305-5 Reduction of GHG emissions 61 approach and enhancing biodiversity methane capture facilities

Operational sites owned, leased, EFFLUENTS AND WASTE managed in, or adjacent to, Protecting, conserving, restoring 304-1 protected areas and areas of high 56 Explanation of the material topic • Managing waste 70 and enhancing biodiversity 103-1 biodiversity value outside protected and its Boundary • Managing effluent 78 areas GRI 103: • Managing climate change risks 55 Significant impacts of activities, Management The management approach and its Protecting, conserving, restoring 103-2 • Managing waste 70 GRI 304: 304-2 products, and services on 56 Approach components and enhancing biodiversity • Managing effluent 78 Biodiversity biodiversity 2016 2016 Evaluation of the management • Managing waste 70 Protecting, conserving, restoring 103-3 304-3 Habitats protected or restored 56 approach • Managing effluent 78 and enhancing biodiversity Water discharge by quality and • Managing effluent 78 306-1 IUCN Red List species and destination • Base data 117 national conservation list species 304-4 with habitats in areas affected by Biodiversity GRI 306: • Managing waste 70 operations Effluents and 306-2 Waste by type and disposal method • Managing effluent 78 Waste 2016

EMISSIONS Water bodies affected by water 306-5 Managing effluent 78 discharges and/or runoff Explanation of the material topic • Managing climate change risks 55 103-1 and its Boundary • Reducing GHG emissions 60 ENVIRONMENTAL COMPLIANCE GRI 103: Management The management approach and its • Managing climate change risks 55 103-2 Explanation of the material topic Approach components • Reducing GHG emissions 60 103-1 Our approach to sustainability 28 and its Boundary 2016 GRI 103: Evaluation of the management • Managing climate change risks 55 103-3 Management The management approach and its Strengthening policies and approach • Reducing GHG emissions 60 103-2 28 Approach components guidance 2016 Evaluation of the management Sustainability in Wilmar’s 103-3 33 approach operations

GRI 307: Non-compliance with environmental Environmental 307-1 Upholding ethics and integrity 27 laws and regulations Compliance 138 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 139

MATERIAL TOPICS MATERIAL TOPICS Environmental Social

GRI STANDARD DISCLOSURE PAGE OR REASON FOR OMISSION GRI STANDARD DISCLOSURE PAGE OR REASON FOR OMISSION

SUPPLIER ENVIRONMENTAL ASSESSMENT EMPLOYMENT

Explanation of the material topic Explanation of the material topic Implementing best practice for 103-1 Our approach to sustainability 28 103-1 88 and its Boundary and its Boundary fair working conditions GRI 103: • Engaging suppliers on our 42 Management The management approach and its Implementing best practice for 103-2 88 NDPE commitments Approach components fair working conditions GRI 103: • Our revised Grievance 46 2016 Management The management approach and its 103-2 Procedure Evaluation of the management Implementing best practice for Approach components 103-3 88 • Proactively monitoring 51 approach fair working conditions 2016 deforestation within the supply chain New employee hires and employee Employee development and 401-1 98 turnover retention Evaluation of the management Engaging suppliers post GRI 401: 103-3 47 Employment approach suspension Benefits provided to full-time 2016 Implementing best practice for 401-2 employees that are not provided to 88 fair working conditions GRI 308: New suppliers that were screened Due diligence for potential new temporary or part-time employees 308-1 43 Supplier using environmental criteria suppliers Environmental LABOUR / MANAGEMENT RELATIONS Assessment Negative environmental impacts in Assessing existing suppliers with 308-2 43-45 2016 the supply chain and actions taken the Supplier Reporting Tool • Implementing best practice 88 Explanation of the material topic for fair working conditions 103-1 and its Boundary • Implementing reporting 98 mechanisms at sites GRI 103: Management • Implementing best practice 88 Approach The management approach and its for fair working conditions 103-2 2016 components • Implementing reporting 98 mechanisms at sites

Evaluation of the management Implementing best practice for 103-3 88 approach fair working conditions

GRI 402: • Implementing best practice 88 Labor/ for fair working conditions Minimum notice periods regarding Management 402-1 • Working with unions and 97 operational changes Relations establishing collective 2016 bargaining agreements 140 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 141

MATERIAL TOPICS MATERIAL TOPICS Social Social

GRI STANDARD DISCLOSURE PAGE OR REASON FOR OMISSION GRI STANDARD DISCLOSURE PAGE OR REASON FOR OMISSION

OCCUPATIONAL HEALTH AND SAFETY DIVERSITY AND EQUAL OPPORTUNITY

• ESG practices and Explanation of the material topic Improving welfare and 26 103-1 92 Explanation of the material topic contributing to the SDGs and its Boundary opportunities for women 103-1 and its Boundary • Ensuring safe and healthy 99 environments GRI 103: • Improving welfare and 92 Management The management approach and its opportunities for women 103-2 • Ensuring safe and healthy Approach components • 99 Equal Opportunity Policy environments 2016 • GRI 103: Women’s Charter • Management Occupational Health & Approach The management approach and its Safety Policy Evaluation of the management Improving welfare and 103-2 • 103-3 92 2016 components Wilmar Sugar approach opportunities for women Environment, Health & Safety Policy • Governance and management 24 • Wilmar Sugar Injury GRI 405: Diversity of governance bodies and • Improving welfare and 92 405-1 Management Policy Diversity employees opportunities for women and Equal • Annual Report 2019 61 Evaluation of the management Ensuring safe and healthy 103-3 99 Opportunity approach environments 2016 Ratio of basic salary and Implementing best practice for 405-2 88 remuneration of women to men fair working conditions Occupational health and safety Ensuring safe and healthy 403-1 99 management system environments NON-DISCRIMINATION

• Ensuring safe and healthy Explanation of the material topic 99 103-1 Championing people 84 environments and its Boundary • Occupational Health & GRI 103: Hazard identification, risk Safety Policy Management The management approach and its 403-2 assessment, and incident • Wilmar Sugar 103-2 Championing people 84 Approach components investigation Environment, Health & 2016 GRI 403: Safety Policy Evaluation of the management Occupational • Wilmar Sugar Injury 103-3 Championing people 84 approach Health and Management Policy Safety 2018 No incidents of discrimination Ensuring safe and healthy GRI 406: 403-3 Occupational health services 99 reported in 2019 for operations environments Non- Incidents of discrimination and 406-1 covered under this report’s Discrimination corrective actions taken scope. Worker training on occupational Ensuring safe and healthy 2016 403-5 99 health and safety environments

• Ensuring safe and healthy 99 403-9 Work-related injuries environments • Base data 124-126 142 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 143

MATERIAL TOPICS MATERIAL TOPICS Social Social

GRI PAGE OR REASON FOR GRI PAGE OR REASON FOR DISCLOSURE DISCLOSURE STANDARD OMISSION STANDARD OMISSION

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING FORCED OR COMPULSORY LABOUR

Working with unions and • Championing people 84 Explanation of the material topic 103-1 establishing collective 97 Explanation of the material topic • Ethical treatment: eliminating 97 and its Boundary 103-1 bargaining agreements and its Boundary the risk of forced, trafficked or bonded labour • Working with unions and 97 GRI 103: establishing collective • Key Human Rights Framework 87 Management The management approach and its GRI 103: 103-2 bargaining agreements areas of focus Approach components Management • Implementing reporting 98 The management approach and its • Ethical treatment: eliminating 97 2016 Approach 103-2 mechanisms at sites components the risk of forced, trafficked or 2016 bonded labour Working with unions and • Human Rights Policy Evaluation of the management 103-3 establishing collective 97 approach bargaining agreements Ethical treatment: eliminating Evaluation of the management 103-3 the risk of forced, trafficked or 97 approach GRI 407: bonded labour Freedom of Operations and suppliers in which Association Working with unions and • Migrant workers in Wilmar's 91 the right to freedom of association GRI 409: and 407-1 establishing collective 97 Operations and suppliers at Malaysian Operations and collective bargaining may be at Forced or Collective bargaining agreements 409-1 significant risk for incidents of forced • Ethical treatment: eliminating 97 risk Compulsory Bargaining or compulsory labour the risk of forced, trafficked or Labour 2016 2016 bonded labour

CHILD LABOUR RIGHTS OF INDIGENOUS PEOPLES

Explanation of the material topic A holistic approach to child Explanation of the material topic 103-1 94 103-1 Respecting community rights 106 and its Boundary protection and its Boundary GRI 103: • Assessing risks related to 45 Management The management approach and its • Respecting community rights 106 103-2 supply chain human rights Approach components • NDPE Policy through the SRT 2016 GRI 103: • Addressing impacts and risks 87 Management The management approach and its Evaluation of the management 103-2 related to human and labour 103-3 Respecting community rights 106 Approach components approach rights within our operations 2016 • A holistic approach to child 94 GRI 411: protection Rights of • Grievance cases as of 47 Incidents of violations involving • Child Protection Policy Indigenous 411-1 December 2019 rights of indigenous peoples Peoples • Respecting community rights 106 Evaluation of the management A holistic approach to child 103-3 94 2016 approach protection

GRI 408: Operations and suppliers at A holistic approach to child Child Labour 408-1 significant risk for incidents of child 94 protection 2016 labour 144 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 145

MATERIAL TOPICS MATERIAL TOPICS Social Social

GRI PAGE OR REASON FOR GRI PAGE OR REASON FOR DISCLOSURE DISCLOSURE STANDARD OMISSION STANDARD OMISSION

HUMAN RIGHTS ASSESSMENT SUPPLIER SOCIAL ASSESSMENT

Explanation of the material topic Explanation of the material topic Engaging suppliers on our 103-1 Championing people 84 103-1 42 and its Boundary and its Boundary NDPE commitments

• Assessing risks related to 45 • Engaging suppliers on our 42 GRI 103: supply chain human rights NDPE commitments Management The management approach and its through the SRT 103-2 • Assessing risks related to 45 The management approach and its Approach components 103-2 • Addressing impacts and risks 87 supply chain human rights GRI 103: components 2016 related to human and labour through the SRT Management rights within our operations Approach • Human Rights Policy Evaluation of the management Assessing existing suppliers with 2016 103-3 43 approach the Supplier Reporting Tool • Assessing risks related to 45 supply chain human rights GRI 414: • Assessing existing suppliers 43 Evaluation of the management through the SRT Supplier with the Supplier Reporting 103-3 Negative social impacts in the approach • Addressing impacts and risks 87 Social 414-2 Tool supply chain and actions taken related to human and labour Assessment • Grievance cases as of 47 rights within our operations 2016 December 2019

GRI 412: PUBLIC POLICY Human Operations that have been subject Assessing risks related to supply Rights 412-1 to human rights reviews or impact chain human rights through the 45 Explanation of the material topic 103-1 Upholding ethics and integrity 27 Assessment assessments SRT and its Boundary 2016 GRI 103: Management The management approach and its 103-2 Upholding ethics and integrity 27 LOCAL COMMUNITIES Approach components 2016 Explanation of the material topic • Assisting smallholders 102 Evaluation of the management 103-1 103-3 Upholding ethics and integrity 27 and its Boundary • Working with communities 102 approach

• Assisting smallholders 102 GRI 415: GRI 103: The management approach and its • Community engagement, 106 103-2 Public Policy 415-1 Political contributions Upholding ethics and integrity 27 Management components development and 2016 Approach empowerment 2016 • Assisting smallholders 102 Evaluation of the management • Community engagement, 106 103-3 approach development and empowerment

GRI 413: • Assisting smallholders 102 Operations with local community Local • Community engagement, 106 413-1 engagement, impact assessments, Communities development and and development programs 2016 empowerment 146 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 147

MATERIAL TOPICS Assurance statement

th Social Independent Limited Assurance Statement In connection with our Engagement Letter dated 4 December 2019 and our addendum dated 29th April in connection with the Subject Matters 2020, we have performed a limited assurance engagement GRI PAGE OR REASON FOR included in the Sustainability Report of on the Subject Matters set out in the Subject Matters DISCLOSURE STANDARD OMISSION Wilmar International Limited for the year section below. These Subject Matters are included in the ended 31 December 2019 attached Sustainability Report of Wilmar International SOCIOECONOMIC COMPLIANCE Limited (‘Wilmar’) for the financial year ended 31 December 2019 (‘the Sustainability Report’). Explanation of the material topic 103-1 Upholding ethics and integrity 27 and its Boundary Subject matters GRI 103: Management The management approach and its Our limited assurance engagement covers the following Subject Matters for the above mentioned period 103-2 Upholding ethics and integrity 27 Approach components 2016 MATERIAL Evaluation of the management NO INFORMATION FOR ASSURANCE SCOPE FOR PALM OIL SEGMENT 103-3 Upholding ethics and integrity 27 MATTER approach Supply Chain Number of suppliers assessed through Suppliers to Malaysia, Indonesia, GRI 419: 1 Supplier Reporting Tool (SRT) as of 31 Wilmar’s Mills and Latin America Non-compliance with laws and Monitoring & Socio- December 2019 Refineries 419-1 regulations in the social Upholding ethics and integrity 27 Transformation economic and economic area Compliance Total hectares monitored under Supplier Concession Indonesia, Malaysia Group Compliance Program (SGCP) as of land owned Supply Chain 31 December 2019 by monitored 2 Monitoring & i.e. Extent of deforestation (ha) detected Suppliers Transformation in concessions owned by suppliers (group-level)

Number of grievance cases by nature Scoped-in Group-level / status (e.g. in progress, pending, Plantations, Mills Transparency & 3 closed, etc.) on Wilmar Grievance List*. and Refineries accountability The grievances listed are as defined in Wilmar Grievance Procedure.

Number of compulsory school-going age Scoped-in Indonesia, Malaysia, children whose education is supported Plantations Ghana and Nigeria 4a by Wilmar for the above mentioned period Child Protection Number of creches provided by Wilmar Scoped-in Indonesia, Malaysia, 4b at the plantations as of 31 December Plantations Ghana and Nigeria 2019

Total number of fires & affected area Scoped-in Indonesia 5 Fire & Haze within concession (ha) for the above Plantations mentioned period

Total production volume of CPO and PK Scoped in Mills, Indonesia, Malaysia, Sustainability 6 certified under RSPO, ISPO and MSPO Kernel Crushers Ghana Certification as of December 2019

Water use intensity (m3/ MT FFB Scoped-in Mills Malaysia, Indonesia, 7 Water Impacts processed) for the above mentioned Ghana and Nigeria period

Treatment of POME and BOD quality Scoped-in Mills Malaysia, Indonesia, 8 Water Impacts (mg/L) for the above mentioned period Ghana and Nigeria

(*) The Wilmar Grievance list includes the grievances up until 31st December 2019. The last grievance was registered on 06 November 2019. The scope of work does not cover the assessment of grievance eligibility. 148 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 149

Auditor’s responsibility An asterisk symbol (*) in the Sustainability Report denotes statements Our responsibility is to form a conclusion on Wilmar’s preparation of the Subject Matters based on our work. We performed our work in accordance with International Standard and claims on which we have performed on Assurance Engagements 3000 (ISAE 3000) (Revised) – Assurance Engagements other than Audits or Reviews of Historical Financial Information (the “Standard”). This limited assurance procedures. Standard requires that we plan and perform our work to form the conclusion. The extent of our work performed depends on our professional judgment and our assessment of * the engagement risk. Our review was limited to the information on the select indicators set out within the Report from 01 January 2019 to 31 December 2019 and our responsibility does not include:

Our review was limited to the information on the select indicators set out within the Report Management’s and Board from 01 January 2019 to 31 December 2019 and our responsibility does not include: • Any work in respect of sustainability information published elsewhere in Wilmar’s of Directors’ responsibility annual report, website and other publications, • Sustainability information prior to 01 January 2019 and subsequent to 31 December 2019, and The Management is responsible for the The Management is responsible for • Management’s forward looking statements such as targets, plans and intentions. preparation of the Subject Matters in the collection and presentation of the accordance with the Global Reporting information and for maintaining adequate Initiative (GRI) Sustainability Reporting records and internal controls that are Standards. The Board has ultimate designed to support the sustainability responsibility for the company’s sustainability reporting process. For the purpose of the Reporting criteria reporting. Sustainability Report 2019, there are no legally prescribed requirements relating to the verification of sustainability reports. As a basis for the assurance engagement, we have used the criterion of “Accuracy” as defined by GRI and specific criteria determined by Wilmar as being relevant for its sustainability performance. We consider these reporting criteria to be relevant and appropriate to review the Report.

Auditor’s independence Assurance standard used and quality control and level of assurance We have complied with the independence documented policies and procedures and other ethical requirements of the regarding compliance with ethical Accounting and Corporate Regulatory requirements, professional standards Our limited assurance engagement has been The procedures performed depend Authority (ACRA) Code of Professional and applicable legal and regulatory planned and performed in accordance with on our judgement including the risk of Conduct and Ethics for Public Accountants requirements. the ISAE 300065 Assurance Engagement material misstatement of the specific and Accounting Entities (ACRA Code), Other Than Audits or Reviews of Historical activity data, whether due to fraud or error. which is founded on fundamental principles We have the required competencies and Financial Information. While we considered the effectiveness of integrity, objectivity, professional experience to conduct this assurance of Management’s internal controls when competence and due care, confidentiality engagement. Our professionals have both A limited assurance engagement consists of determining the nature and extent of our and professional behaviour. the required assurance skills and experience making enquiries and applying analytical and procedures, our review was not designed to in the applicable subject matters including other review procedures. Our procedures provide assurance on internal controls. We Our firm applies Singapore Standards environmental, social and financial aspects were designed to provide a limited level believe that the evidence we have obtained on Quality Control 1 of the Institute of of assurance and as such do not provide is sufficient and appropriate to provide a Singapore Chartered Accountants and, all the evidence that would be required to basis for our conclusion. accordingly, maintains a comprehensive provide a reasonable level of assurance. system of quality control including

65 International Federation of Accountants’ International Standard on Assurance Engagements for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (ISAE3000) 150 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 151

What we did to form Observations and our conclusions areas for improvement

We designed our procedures in order to state whether anything has come to our attention Our observations and areas for improvement will be raised in a separate report to Wilmar’s to suggest that the Subject Matters detailed above has not been reported in accordance Board of Directors and Management. These observations and areas for improvement with the reporting criteria cited earlier. In order to form our conclusions, we undertook do not affect our conclusion on the aforementioned Subject Matters included in the the steps below: Sustainability Report.

Inquiries with Wilmar’s Sustainability team to: • Understand principal business operations, Other matters 1 • Appreciate key sustainability issues and developments, • Map out information flow for sustainability reporting and the relevant controls, Our responsibility in performing our limited assurance activities is to the Management • Identify data providers with their responsibilities, and of Wilmar only and in accordance with the terms of reference agreed with them. We do • Recognise the likelihood of fraud on the sustainability information. not accept or assume any responsibility for any other purpose or to any other person or organisation. Any reliance any such third party may place on the Report is entirely at their own risk.

Perform site visits to: • Wilmar’s headquarters in Singapore, 2 • Wilmar’s offices in Jakarta and Kuala Lumpur • Wilmar’s selected palm oil plantations and mills in Central Kalimantan, Indonesia, and Conclusion Sabah, Malaysia Based on the procedures performed and evidence obtained, nothing has come to our attention that causes us to believe that the information related to the Subject Matters were not presented fairly, and calculated in all material respects in accordance with the Conduct interviews with and clarifications reporting criteria detailed above. sought from employees and Management in Singapore, Indonesia, Malaysia, Ghana, 3 Nigeria (e.g. Sustainability team, Human Resources, Estate Managers, Mill Managers) to understand key sustainability issues related to the selected indicators, collection processes and accuracy of reporting.

Ernst & Young LLP Conduct process walk-through of systems and processes for data aggregation and reporting, with relevant personnel to understand the quality 4 of checks and control mechanisms, assessing and testing the controls in relation to the Signed for Ernst & Young LLP by concerned subject matters. Simon Yeo Partner, Climate Change and Sustainability Services Obtain documentation through sampling methods Singapore to verify assumptions, estimations and computations made by Management in relation to 5 the concerned subject matters.

Check that data and statements 6 had been correctly transcribed from corporate systems and / or supporting evidence, in relation to concerned subject matters.

Obtain relevant certifications and audit reports 7 in relation to the concerned Subject Matters in the Report 152 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 153

Glossary

BAGASSE a dry, fibrous matter remaining after the extraction of juice from the sugarcane. bunch harvested from the oil palm tree. The fruit bunch weight can range FRESH FRUIT BUNCH (FFB) from 10kg to 40kg, depending on size and age. BIODIVERSITY the variety of plant and animal life in a particular habitat or ecosystem.

the amount of oxygen exerted when organic matter undergoes decomposition Scope 1 GHG emissions are discharges released into the atmosphere as a BIOLOGICAL OXYGEN by micro-organisms. BOD testing is done to assess the amount of organic GREENHOUSE GAS direct result of an activity, or series of activities, at facility level. Scope 2 GHG DEMAND (BOD) matter in the water. EMISSIONS (GHG) emissions are releases into the atmosphere from the indirect consumption of an energy commodity. a voluntary global standard for responsible sugarcane production. The Bonsucro Production Standard applies to mills and supply operations, while the Bonsucro BONSUCRO HIGH CONSERVATION biological, ecological, social or cultural values considered outstandingly Chain of Custody Standard applies to all products handled above mill level. VALUES (HCVS) significant or critically important, at the national, regional or global level.

these provide a universal measurement standard by which the impacts of CARBON DIOXIDE releasing (or avoiding the release of) different greenhouse gases can be the four classes of land area differentiated by the type of vegetative cover EQUIVALENTS (CO e) 2 evaluated. (High Density Forest, Medium Density Forest, Low Density Forest and Young HIGH CARBON STOCK Regenerating Forest) that have been identified to contain reasonable amount of carbon and biodiversity. Palm oil produced by palm oil plantations and mills which have been CERTIFIED SUSTAINABLE independently audited and certified against the Roundtable on Sustainable PALM OIL (CSPO) Palm Oil (RSPO) standard. HIGH CARBON STOCK a global methodology used in agricultural land development planning that APPROACH (HCS distinguishes HCS forest areas for protection from degraded lands with low COMPOST organic waste matter, naturally decomposed and recycled as soil conditioner. APPROACH) carbon and biodiversity values.

captured and securely stored carbon that would otherwise be emitted to or small growers with less than 50 hectares of land (with the exception of CROP SEQUESTRATION remain in the atmosphere. Indonesia, with less than 25 hectares of land), which are self-financed, INDEPENDENT managed, and equipped, but not bound to a particular mill. They may deal water, such as mill processed, discharged from one source into a separate SMALLHOLDER EFFLUENTS directly with local mill operators of their choice or process their own palm body of water. oil using personal or community manual palm oil presses.

EMPTY FRUIT BUNCHES (EFB) FFB remains once the fruit has been removed for oil pressing. a mandatory requirement for all oil palm growers and millers operating in INDONESIAN SUSTAINABLE an amount of oil extracted in a mill from oil palm fruit. Crude palm oil (CPO) Indonesia. The objective is to holistically address environmental issues within EXTRACTION RATE PALM OWIL (ISPO) the oil palm industry thereby improving the competitiveness of Indonesian is derived from the flesh; palm kernel oil (PKO) from the nut. STANDARD palm oil in the global market. a multi-stakeholder group initiated for the management of recurrent haze and fire problems in Indonesia. Under its auspices, the Fire-Free Village the careful consideration of all available pest control techniques and subsequent FIRE FREE ALLIANCE (FFA) Programme (FFVP) is a community-based incentive scheme to help reduce integration of appropriate measures to discourage the encroachment of pest the incidence of fires. populations. This is intended to keep pesticides and other interventions to INTEGRATED PEST levels that are economically justified and reduce or minimise risks to human MANAGEMENT (IPM) FOOD AND AGRICULTURE health and the environment. IPM emphasises the growth of a healthy crop ORGANIZATION’S (FAO) voluntary guidelines that promote secure tenure rights and equitable access with the least possible disruption to agro-ecosystems and encourages natural VOLUNTARY GUIDELINES ON to land, fisheries and forests as a means of eradicating hunger and poverty, pest control mechanisms. RESPONSIBLE GOVERNANCE supporting sustainable development and enhancing the environment. OF TENURE (VGGT) a tripartite United Nations agency that is representative of labour, management, and government. It disseminates labour information and sets minimum FPIC is the principle that a community has the right to give or withhold its INTERNATIONAL LABOUR international labour standards, called ‘conventions’, that are offered to FREE, PRIOR AND consent to proposed projects that may affect the lands they customarily ORGANIZATION (ILO) INFORMED CONSENT (FPIC) member nations for adoption. own, occupy, or otherwise use. 154 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 155

INTERNATIONAL ROUNDTABLE ON a global certification scheme promoting the growth and usage of sustainable a voluntary global sustainability certification system covering the entire supply SUSTAINABILITY AND SUSTAINABLE PALM OIL palm oil products according to international standards. CARBON CERTIFICATE chain and all kinds of bio-based feedstocks and renewables. (RSPO) (ISCC)

a programme initiated by the Indonesian government to encourage the MALAYSIAN SUSTAINABLE a national certification requirement applicable to all Malaysia-based palm SCHEME SMALLHOLDERS development of smallholder plantations with the assistance and co-operation PALM OIL (MSPO) oil operations. (OR PLASMA SCHEMES) of plantation companies (the nucleus) which assist and support the surrounding STANDARD community plantations (the plasma).

RSPO’s NPP consists of a set of assessments and verification activities to Asia’s leading market infrastructure, operating equity, fixed income, and be conducted by RSPO grower members and certification bodies prior to a derivatives markets to the highest regulatory standards. SGX is a member NEW PLANTING PROCEDURE new oil palm development, in order to help guide responsible planting and SINGAPORE EXCHANGE (NPP) (SGX) of the World Federation of Exchanges and the Asian and Oceanian Stock ensure that social and environmental requirements have Exchanges Federation. been met.

INTERNATIONAL UNION a Queensland-focused voluntary accreditation system providing best practice SMARTCANE BMP guidance for cultivating sugarcane. FOR CONSERVATION OF the world’s most comprehensive information source on the global extinction NATURE AND NATURAL risk status for animal, fungi and plant species. RESOURCES (IUCN) RED LIST OF THREATENED SPECIES distillery spent wash is the unwanted residual liquid waste generated during SPENT WASH production. It is a dark brown, highly organic effluent.

MESOCARP the middle layer of pericarp, the fleshy part of a palm fruit. SDGs build on the Millennium Development Goals and are a set of 17 SUSTAINABLE global goals with an objective of ending poverty, protecting the planet and DEVELOPMENT GOALS ensuring that all people enjoy peace and prosperity with a goal of achieving a layer of material applied to the soil surface to improve its fertility and (SDGS) specific targets by 2030. MULCHING health. Mulch is usually organic.

NO DEFORESTATION, NO commitment to adopt measures and actions to achieve no deforestation, a term expressing a long-term balance between social, economic and PEAT, NO EXPLOITATION no peat development and no exploitation within the company's operations environmental objectives. It is often linked to sustainable development, (NDPE) POLICY and supply chain. SUSTAINABILITY which is defined as ‘development that meets the need of current generations without compromising the needs of future generations’.

PALM OIL MILL EFFLUENT by-product of processed FFB. (POME) a multi-stakeholder partnership platform hosted by the World Economic Forum TROPICAL FOREST and initiated to support the implementation of private-sector commitments ALLIANCE (TFA) to remove deforestation from various commodities from their supply chains. PALM OIL REFINERY wastewater produced by processing crude palm oil in a palm oil refinery. EFFLUENT (PORE) UNITED NATIONS GLOBAL a United Nations pact to encourage worldwide businesses to adopt sustainable COMPACT and socially responsible policies, and to report on their implementation. accumulation of partially decayed vegetation matter. Peat forms in wetlands or peatlands.This can include bogs, moors, muskegs, pocosins, mires, and PEAT AND PEATLAND peat swamp forests. Land with soil consisting of over 65% organic matter is considered peatland.

PRESS MUD sugarcane press mud is the residue of sugarcane juice filtration. 156 Wilmar International Limited | Sustainability Report 2019 Sustainability Report 2019 | Wilmar International Limited 157

Contact us

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