DOCSLIB.ORG

Wilmar in China Annual Report 2009 2 WILMAR INTERNATIONAL LIMITED Annual Report 2009 1 Contents

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Wilmar in China Annual Report 2009 2 WILMAR INTERNATIONAL LIMITED Annual Report 2009 1 Contents wilmar in china Annual Report 2009 2 WILMAR INTERNATIONAL LIMITED Annual Report 2009 1 CONTENTS Corporate Profile 1 Chairman’s Statement 10 Financial Highlights 14 Board of Directors 16 Key Management Team 20 Corporate Information 21 Operations Review 22 Awards 33 Corporate Social Responsibilty 34 Human Capital Management 40 Information Technology 42 Risk Management 44 Corporate Governance 47 Financial Report 57 2 WILMAR INTERNATIONAL LIMITED Annual Report 2009 1 NETHERLANDS GERMANY UKRAINE UNITED STATES OF AMERICA SPAIN IVORY COAST GHANA KENYA UGANDA TANZANIA MOZAMBIQUE OUR GLOBAL SOUTH AFRICA OPERATIONS Wilmar International Limited is Asia’s leading agribusiness group. Headquartered in Singapore, our business activities include oil palm cultivation, oilseeds crushing, edible oils refining, consumer pack edible oils processing and merchandising, specialty fats, oleochemicals and biodiesel manufacturing, and grains processing and merchandising. Our operations are located in more than 20 countries across four continents, supported by a multi-national staff force of more than 80,000 people and over 300 processing plants. With an extensive distribution network, our products are sold to more than 50 countries globally. 2 WILMAR INTERNATIONAL LIMITED Annual Report 2009 3 RussIA CHINA JAPAN BANGLADESH INDIA VIETNAM PHILIPPINES MALAYSIA SRI LANKA SINGAPORE INDONESIA AusTRALIA NEW ZEALAND GROWING AND INVESTING IN CHINA In China, the Group has rapidly grown over the past 20 years into one of the largest agribusiness and food companies. Our success has been built on our unparalled scale, nationwide sales and distribution network, leading brands and a strong team with deep roots. China’s high GDP growth, large and rapidly urbanising population base continue to drive demand for high quality processed food and agriproducts. With our leading market positions and nationwide infrastructure, Wilmar is well positioned to tap China’s growing consumer demand. 2 WILMAR INTERNATIONAL LIMITED Annual Report 2009 3 WE are the largest oilseeds Crusher, EDIBLE OILS REFINER, manufacturer of consumer pack oils, Oilseed meals, specialtY fats AND oleochemicals IN CHINA. INTEGRATED AGRIBUSINESS MODEL Origination Processing Consumer Other products: Bulk Pack Oilseeds Specialty Oleo- Rice, Flour, Edible Oils Edible Oils Meal Fats chemicals Biodiesel Merchandising, Shipping & Distribution Customers 4 WILMAR INTERNATIONAL LIMITED Annual Report 2009 5 FUJIN JIAMUSI UNPARALLELED HAERBIN MANUFACTURING SCALE JILIN CHANGJI AKSU SHANHAIGUAN PANJIN YINGKOU BAYANZHUOER QINHUANGDAO TIANJIN LAIYANG SHIJIAZHUANG YANTAI BOXING QINGDAO HEZE RIZHAO LIANYUNGANG XI’AN YANZHOU YANCHENG ZHOUKOU TAIZHOU TAIZHOU ZHANGJIANGANG CHUANGSHU SHANGHAI XINGFAN CHAOHU GUANGHAN WUHAN CHENGDU YUEYANG QUANZHOU DONGGUAN GUANGZHOU SHENZHEN FANGCHENGGANG > Over 130 plants, many within large-scale integrated facilities > With scale and integration, we produce high quality products at competitive cost > Strategic locations close to raw material sources, road and rail systems and end markets 4 WILMAR INTERNATIONAL LIMITED Annual Report 2009 5 OUR DISTRIBUTION NETWORK REACHES CUSTOMERS ALL ACROSS CHINA PROVIDING AN EXPANDING RANGE OF PRODUCTS TO A DYNAMIC AND GROWING MARKET OF OVER 1.3 BILLION PEOPLE 6 WILMAR INTERNATIONAL LIMITED Annual Report 2009 7 NATIONWIDE SALES AND DISTRIBUTION HEILONGJIANG NETWORK JILIN NEIMENGGU XINJIANG LIAONING HEBEI SHANXI NINGXIA SHANDONG QINGHAI GANSU JIANGSU HENAN SHAANXI ANHUI SHANGHAI HUBEI XIZANG ZHEJIANG SICHUAN HUNAN JIANGXI GUIZHOU FUJIAN GUANGDONG YUNNAN GUANGXI HAINAN > Over 200 sales offices, 1,500 sales staff and 4,000 independent third-party distributors reach a nationwide customer base > Strong platform to sell new products such as flour and rice. 6 WILMAR INTERNATIONAL LIMITED Annual Report 2009 7 A strong team WITH DEEP roots Experienced management team with in-depth understanding of the rapidly evolving local markets • Highly capable, committed and motivated team • Strong corporate culture of excellence and teamwork • Committed to sustainability and contributions to society 8 WILMAR INTERNATIONAL LIMITED Annual Report 2009 9 leading brands Widely recognised brands across range of products. Arawana, #1 cooking oil brand in China is being extended to premium rice and flour Over 100 brands across the world, with leading positions in China, India and Indonesia. Our brands include: 8 WILMAR INTERNATIONAL LIMITED Annual Report 2009 9 CHAIRMAN’S STATEMENT During the year, we continued to drive cost efficiencies from “greater economies of scale and integration of our business activities through targeted capacity expansion in key markets and investing in opportunities that strengthened or complemented our existing agribusinesses. FY2009 IN REVIEW DIVIDENDS Wilmar achieved satisfactory results in 2009. The Board has recommended a final dividend of Demand for agricultural commodities” continued S$0.05 for FY2009. Along with the interim dividend of to be resilient, despite uncertainties in the global S$0.03 per share paid on 14 September 2009, the total economic environment. FY2009 net profit increased dividend for FY2009 will be S$0.08 per share. by 23% to US$1.88 billion against US$1.53 billion in FY2008. Revenue decreased 18% to US$23.9 billion SHARPENING COMPETITIVENESS due to lower agricultural commodity prices During the year, we continued to drive cost efficiencies as compared to FY2008. All business segments from greater economies of scale and integration of continued to perform well as we remained focused our business activities. This was achieved through on growing our businesses, extracting cost targeted capacity expansion in key markets and efficiencies and risk management. investing in opportunities that strengthened or complemented our existing agribusinesses. Earnings per share grew by 23% to 29.47 US cents in FY2009 as compared to 23.98 US cents a year ago. In China, the Group has built leading market positions The Group’s balance sheet continued to strengthen, for our agriproducts and brands to serve a market of as total assets increased by 31% to US$23.4 billion over 1.3 billion people. We have a nationwide network while shareholders’ funds increased by US$1.3 billion of over 130 plants, more than 200 sales offices and to US$10.9 billion. Our gearing remained conservative some 4,000 distributors. We had evaluated listing our at 0.41x. China businesses but did not proceed due to weak stock market performance towards the end of the year. 10 WILMAR INTERNATIONAL LIMITED Annual Report 2009 11 Our India joint ventures performed satisfactorily. spent on education in China, Indonesia, Malaysia and We are expanding our capacities rapidly in existing Singapore, building old folks homes and sponsoring and new locations to meet rising demand for cataract operations in China. edible oils, specialty fats and other processed agricultural products. OUTLOOK AND PROSPECTS Economic prospects in Asia remain good. The large In Indonesia, we increased our oil palm acreage, populations in China, India and Indonesia have palm oil milling and refining capacities. A new large relatively low per capita consumption; investments scale integrated manufacturing complex is being in infrastructure and increased consumption will constructed in Gresik, near Surabaya, Indonesia continue to sustain strong growth for many years to that will expand our production of refined palm oil, come. The Group is well positioned to benefit as Asia’s fertiliser, oleochemicals and palm biodiesel. rising affluence and rapid urbanisation drive demand for high quality agriproducts. We intend to strengthen Our European business continued to grow to meet our leadership position in our core businesses, to build demand for food and non-food palm oil products. up newer markets and to tap attractive investment With the start of our palm oil refinery operations opportunities within and beyond Asia. in Brake, Germany, we now have a second refinery in Europe to support our growth. The Group’s AckNOWLEDGEMENTS African joint ventures are making good progress Mr Kuok Khoon Ho has stepped down as a in developing an integrated palm oil cultivation, director in the Company on 8 February 2010. processing and merchandising business. Our Russia On behalf of the Board, I would like to thank him and Ukraine joint ventures faced challenging times for his support and contribution to the Company. following the global financial crisis but the situation At the same time, I would like to warmly welcome has since improved significantly. Mr Kuok Khoon Chen, who was appointed to our Board on 8 February 2010. CORPORATE SOCIAL RESPONSIBILITY We are committed towards achieving Roundtable On behalf of the Board, I would like to convey our on Sustainable Palm Oil (RSPO) certification for all heartfelt thanks and appreciation for the unwavering our palm oil mills and oil palm plantations. During support from our employees, customers, business the year, we conducted sustainability audits on two partners and bankers. mills and five plantations. The audit reports are being reviewed by the RSPO peer review panel and we Last but not least, I wish to thank our shareholders for expect their results to be made known in due course. their strong support and confidence in the Company. We are also committed to helping the poor and needy Kuok Khoon Hong in the countries we operate. In 2009, we made total Chairman & Chief Executive Officer charitable donations of US$5.7 million. Most of it was 15 March 2010 10 WILMAR INTERNATIONAL
Load more

Recommended publications
  • Moment of Truth
    COUNTDOWN MOMENTTO EXTINCTIONOF WILL GLOBALTRUTH BRANDS CLEAN UP THE PALM OIL TRADE BEFORE 2020? TIME FOR BRANDS TO COME CLEAN ABOUT THEIR LINKS TO FOREST DESTRUCTION FOR PALM OIL A FROM? COMES PALM OIL WHO THEIR DISCLOSE BRANDS WHICH TRADERS/ SUPPLIERS MILLS/ PRODUCERS 100% CLEAN PALM OIL CONTENTS CRUNCH TIME FOR CLIMATE COMMITMENTS 1 THE HIGH PRICE OF CHEAP PALM OIL 5 ARE CORPORATE COMMITMENTS MORE THAN HOT AIR? 9 HOW TRADERS SCORED ON NDPE IMPLEMENTATION 11 BRANDS ADMIT LINKS TO RAINFOREST DESTRUCTION 12 CONFRONTING THE BRANDS WITH EVIDENCE 15 HOW CONSUMER BRANDS ARE LINKED TO FOREST DESTROYERS 16 FELDA/FELDA GLOBAL VENTURES (FGV) 18 SALIM GROUP 20 SAMLING GROUP 22 TIME FOR ACTION 24 BRANDS MUST DISCLOSE WHERE THEIR PALM OIL COMES FROM... 26 ...AND TAKE CONTROL OF THEIR SUPPLY CHAINS 27 COUNTDOWN TO 2020 29 DEMANDS 31 APPENDIX 1: HOW COMPANIES PERFORM ON TRANSPARENCY 32 APPENDIX 2: LITERATURE REVIEW 42 ENDNOTES 48 REFERENCES 52 ‘ Whilst the causes of deforestation are complex, it is generally acknowledged that the biggest drivers are the cultivation of soya and palm oil, logging for the production of paper and board and the rearing of cattle. All of these commodities are major ingredients in the supply chains of most consumer goods companies. Our member companies drive the demand for these commodities and have an opportunity to ensure that the sourcing of these ingredients does not contribute to deforestation.’1 CONSUMER GOODS FORUM ‘The unsustainable use of natural resources has caused a dramatic decline of Bornean orangutans ... Our findings suggest that more than 100,000 individuals have been lost in the 16 years between 1999 and 2015.’2 MARIA VOIGHT, RESEARCHER AT THE MAX PLANCK INSTITUTE FOR EVOLUTIONARY ANTHROPOLOGY D 11 DECEMBER 2016, 1°3 0 46́ ̋ S 110°15 28́ ̋ E: DRONE FOOTAGE REVEALS A NEW CANAL CUTTING INTO PEATLAND FOREST FROM THE PT DAMAI AGRO SEJAHTERA (PT DAS) OIL PALM CONCESSION WITHIN THE SUNGAI PUTRI PEATLAND LANDSCAPE OF KETAPANG DISTRICT, WEST KALIMANTAN.
    [Show full text]
  • Wilmar Launches New Ambitious Action Plan to Accelerate NDPE Implementation
    General Announcement::News Release - Wilmar launches new ambitious action plan to accelerate NDPE implementation Issuer & Securities Issuer/ Manager WILMAR INTERNATIONAL LIMITED Securities WILMAR INTERNATIONAL LIMITED - SG1T56930848 - F34 Stapled Security No Announcement Details Announcement Title General Announcement Date & Time of Broadcast 05-Oct-2018 17:10:33 Status New News Release - Wilmar launches new ambitious action plan to Announcement Sub Title accelerate NDPE implementation Announcement Reference SG181005OTHRZAKC Submitted By (Co./ Ind. Name) Teo La-Mei Designation Company Secretary Description (Please provide a detailed Please see attached News Release. description of the event in the box below) Attachments News Release 5 Oct 18 - Wilmar launches new ambitious action plan to accelerate NDPE implementation with Annex FINAL.pdf Total size =104K Tweet Share FOR IMMEDIATE RELEASE News Release Wilmar launches new ambitious action plan to accelerate NDPE implementation Singapore, 5 October 2018 - Wilmar International Limited (Wilmar) launched a new and ambitious time-bound plan, developed in collaboration with The Forest Trust (TFT), with the goal of obtaining a 100 percent independently, verified No Deforestation, No Peat and No Exploitation (NDPE) compliant supply chain from 2020 onwards. “This new action plan is us further strengthening our commitments and continuing to take the lead for sustainability in the oil palm industry. Over the last five years, we have managed to raise the bar on transparency in the industry, reduced our impacts on deforestation and improved labour conditions. However, our work does not stop here. We must continue to push for improvements where tough challenges remain and where more complex issues are raised,” said Jeremy Goon, Wilmar’s Chief Sustainability Officer.
    [Show full text]
  • Wilmar International Singapore
    Wilmar International Singapore Sectors: Agriculture for Palm Oil Active This profile is actively maintained Send feedback on this profile Created before Nov 2016 Last update: Oct 8 2020 Sectors Agriculture for Palm Oil Headquarters Ownership listed on Singapore Stock Exchange (SGX) Major shareholders of Wilmar include Kuok Khoon Hong, Robert Kuok and Martua Sitorus. Wilmar's complete share holder structure can be viewed here. Subsidiaries Kencana Group – Singapore (profile) Website http://www.wilmar-international.com/ About Wilmar International Wilmar International, founded in 1991, is one of the world's largest agribusinesses and the world's largest palm oil trader. Wilmar was established by Kuok Khoon Hong of Malaysia and Martua Sitorus of Indonesia. In June 2007, Wilmar International completed a major merger with the palm oil and edible oil operations of the Kuok Group. Wilmar is involved in a wide range of operations, including oil palm cultivation, oilseed crushing, edible oils refining, sugar milling and refining, manufacturing of consumer products, specialty fats, oleochemicals, biodiesel and fertilisers as well as flour and rice milling. As of 31 December 2018, Wilmar owns 230,409 hectares of oil palm, 67% of which is located in Indonesia, 25% in East Malaysia and 8% in Africa. Wilmar manages 35,799 hectares oil palm plantations under smallholder’s schemes in Indonesia and Africa. In 2018 the company produced over 4.1 million tonnes of oil palm. In addition, it traded 24.3 million tonnes of oil palm to over fifty countries. Latest developments World’s largest palm oil trader linked to rainforest destruction twice the size of Paris Jun 25 2018 Wilmar International announces its no deforestation, no peat, no exploitation policy Dec 5 2013 Why this profile? The world's largest palm oil trader, Wilmar International (via its subsidiaries), is involved in deforestation and violating rights of communities.
    [Show full text]
  • 2018Annual Report
    PT WILMAR CAHAYA INDONESIA Tbk PT WILMAR CAHAYA 2018 ANNUAL REPORT LAPORAN TAHUNAN HEAD OFFICE Kawasan Industri Jababeka, Jl. Industri Selatan 3 GG No.1, Pasirsari, Cikarang Selatan, Kab. Bekasi - Jawa Barat 17530 Telepon : (+62 21) 8983 0003 - 8983 0004 Faksimili: (+62 21) 8937 143 ANNUAL REPORT 2018 LAPORAN TAHUNAN www.wilmarcahayaindonesia.com PT WILMAR CAHAYA INDONESIA Tbk 2018 | ANNUAL REPORT | LAPORAN TAHUNAN KINERJA 2018 ANALISA DAN PEMBAHASAN MANAJEMEN 2018 Performance 04 Management Discussion and Analysis 44 Ikhtisar Keuangan / Financial Highlights 05 Tinjauan Operasional per Segmen Operasi Produksi / Operational Overview Production 46 Ikhtisar Saham / Stock Highlights 08 Tinjauan Keuangan / Financial Performance Analysis 46 LAPORAN MANAJEMEN TATA KELOLA PERUSAHAAN Management Report 10 Good Corporate Governance 52 Laporan Direksi / Board of Directors Report 12 Rapat Umum Pemegang Saham (RUPS) / General Meeting of Shareholders (GMS) 54 Laporan Dewan Komisaris / Board of Commissioners Report 16 Dewan Komisaris / Board of Commissioners 56 DAFTAR ISI Direksi / Board of Directors 58 Komite-Komite di Bawah Dewan Komisaris / Committees Under The Board of Commissioners 59 TABLE OF CONTENTS PROFIL PERUSAHAAN Company Profile 20 Sekretaris Perusahaan / Corporate Secretary 61 Sekilas Perusahaan / Company in a Glance 22 Unit Audit Internal / Internal Audit 62 Visi Misi dan Budaya Perusahaan / Company’s Vision, Mission, and 23 Manajemen Risiko / Risk Management 64 Core Values Sistem Pelaporan Pelanggaran / Whistleblowing System 67 Struktur
    [Show full text]
  • Shanghai, China Overview Introduction
    Shanghai, China Overview Introduction The name Shanghai still conjures images of romance, mystery and adventure, but for decades it was an austere backwater. After the success of Mao Zedong's communist revolution in 1949, the authorities clamped down hard on Shanghai, castigating China's second city for its prewar status as a playground of gangsters and colonial adventurers. And so it was. In its heyday, the 1920s and '30s, cosmopolitan Shanghai was a dynamic melting pot for people, ideas and money from all over the planet. Business boomed, fortunes were made, and everything seemed possible. It was a time of breakneck industrial progress, swaggering confidence and smoky jazz venues. Thanks to economic reforms implemented in the 1980s by Deng Xiaoping, Shanghai's commercial potential has reemerged and is flourishing again. Stand today on the historic Bund and look across the Huangpu River. The soaring 1,614-ft/492-m Shanghai World Financial Center tower looms over the ambitious skyline of the Pudong financial district. Alongside it are other key landmarks: the glittering, 88- story Jinmao Building; the rocket-shaped Oriental Pearl TV Tower; and the Shanghai Stock Exchange. The 128-story Shanghai Tower is the tallest building in China (and, after the Burj Khalifa in Dubai, the second-tallest in the world). Glass-and-steel skyscrapers reach for the clouds, Mercedes sedans cruise the neon-lit streets, luxury- brand boutiques stock all the stylish trappings available in New York, and the restaurant, bar and clubbing scene pulsates with an energy all its own. Perhaps more than any other city in Asia, Shanghai has the confidence and sheer determination to forge a glittering future as one of the world's most important commercial centers.
    [Show full text]
  • Reflect Adapt Thrive 1
    SUSTAINABILITY REPORT 2020 Reflect Adapt Thrive 1 About this report At Wilmar International Limited (‘Wilmar’), we are committed to delivering transparency and demonstrating accountability to our stakeholders. For this, sustainability reporting is key. Contents We strive to ensure that our sustainability reporting not only 01 About this report reflects our progress in our sustainability journey, but that it 126 Delivering product excellence 168 Appendix also advances in parallel. Our coverage of information has Board statement 04 increased to now include all of our key business segments 128 Innovation and technology 170 Sustainability governance 10 Summary of progress (see details in Scope and Boundary below). We are also 132 Consumer health and well-being 171 Materiality reporting against the Sustainability Accounting Standards 22 About Wilmar 136 Product marketing and labelling 176 Supporting the United Board (SASB) Standards and the Task Force on Climate- 140 Product quality and safety 26 Our approach to sustainability Nations Sustainable related Financial Disclosures (TCFD) recommendations Development Goals (SDGs) for the first time, in addition to the Global Reporting 32 Our support during the COVID-19 pandemic 180 Base data Initiative (GRI) Standards. 146 Transforming our supply chain 202 External assurance from Ernst & Young LLP This report provides a retrospective view of our sustainability 34 Protecting the environment 148 Responsible sourcing and journey for us to reflect upon, as we continue to identify 206 External assurance supply chain transformation from Control Union Certifications the challenges that we face. Doing this allows us to adapt 36 Biodiversity and conservation our approach, strengthen our effort and drive continuous 208 GRI content index 50 Climate change improvement, so that we can thrive in the long term.
    [Show full text]
  • Wilmar International Ltd-Acop2014b.Pdf
    RSPO Annual Wilmar International Ltd Communications of Progress 2014 Particulars About Your Organisation Organisation Name Wilmar International Ltd Corporate Website Address http://www.wilmar-international.com/ Primary Activity or Product ■ Oil Palm Growers ■ Processor and/or Trader Related Company(ies) No Membership Membership Number Membership Category Membership Sector 2-0017-05-000-00 Ordinary Palm Oil Processors and/or Traders RSPO Annual Wilmar International Ltd Communications of Progress 2014 Oil Palm Growers Operational Profile 1.1 Please state your main activities as a palm oil grower ■ Palm oil grower & miller Operations and Certification Progress 2.1.1 Total landbank licensed / owned (ha) 205,669.00 2.1.2 Total landbank for oil palm cultivation (ha) 184,646.00 2.1.3 Total land managed for conservation that is set aside (ha) 21,023.00 2.2.1 Mature area (ha) 155,038.00 2.2.2 Immature area (ha) 16,759.00 2.2.3 Total area of estate plantations - planted (ha) 171,797 2.3.1 Area certified (ha) 139,074 2.3.2 Number of estates/Management Units 62 2.3.3 Number of estates/Management Units certified 33 2.4.1 Indonesia - Please indicate which province(s) ■ Bengkulu ■ Jambi ■ Kalimantan Barat ■ Kalimantan Tengah ■ Riau ■ Sumatera Barat ■ Sumatera Selatan ■ Sumatera Utara RSPO Annual Wilmar International Ltd Communications of Progress 2014 2.4.2 Malaysia - please indicate which state(s) -- 2.4.3 Other - please indicate which country(ies) Ghana, Nigeria 2.5.1 Do you have smallholders as part of your supply base? Yes 2.5.2 Schemed ● Schemed
    [Show full text]
  • RM New Entries 2016 Mar.Pdf
    International Plant Nutrition Institute Regional Office • Southeast Asia Date: March 31, 2016 Page: 1 of 88 New Entries to IPNI Library as References Roberts T. L. 2008. Improving Nutrient Use Efficiency. Turkish Journal of Agriculture and Forestry, 32:177-182. Reference ID: 21904 Notes: #21904e Abstract: Public interest and awareness of the need for improving nutrient use efficiency is great, but nutrient use efficiency is easily misunderstood. Four indices of nutrient use efficiency are reviewed and an example of different applications of the terminology show that the same data set might be used to calculate a fertilizer N efficiency of 21% or 100%. Fertilizer N recovery efficiencies from researcher managed experiments for major grain crops range from 46% to 65%, compared to on-farm N recovery efficiencies of 20% to 40%. Fertilizer use efficiency can be optimized by fertilizer best management practices that apply nutrients at the right rate, time, and place. The highest nutrient use efficiency always occurs at the lower parts of the yield response curve, where fertilizer inputs are lowest, but effectiveness of fertilizers in increasing crop yields and optimizing farmer profitability should not be sacrificed for the sake of efficiency alone. There must be a balance between optimal nutrient use efficiency and optimal crop productivity. Souza L. F. D.and D. H. Reinhardt. 2015. Pineapple. Pages 179-201 IPO. Reference ID: 21905 Notes: #21905e Abstract: Pineapple is one of the tropical fruits in greatest demand on the international market, with world production in 2004 of 16.1 million mt. Of this total, Asia produces 51% (8.2 million mt), with Thailand (12%) and the Philippines (11%) the two most productive countries.
    [Show full text]
  • GAR and Wilmar Call for Closer Collaboration to Find Solutions to Indonesian Palm Oil Sector Labour Challenges
    FOR IMMEDIATE RELEASE News Release GAR and Wilmar Call for Closer Collaboration to Find Solutions to Indonesian Palm Oil Sector Labour Challenges Bangkok/Singapore, 7 November 2016 - Golden Agri-Resources (GAR) and Wilmar International Limited (Wilmar) call for closer collaboration from all stakeholders in the Indonesian palm oil sector to help find improvements and solutions to existing labour challenges. The two companies announced their collaboration with Business for Social Responsibility (BSR), a global non-profit organisation that works to build a just and sustainable world by developing sustainable business strategies and solutions. The collaboration will begin with a review of current labour practices in the palm oil sector in Indonesia, and is intended to formulate practical approaches to improving labour practices. Focusing on three major oil palm regions in Indonesia: Riau, North Sumatra and Central Kalimantan, the review will identify current common practices, policies and regulations across the industry. There is recognition of the need to improve labour practices and conditions across the palm oil sector, including in Indonesia, which is the world’s largest producer of CPO. The review is aimed at assessing gaps in the existing practices and finding practical business processes and solutions to address the key labour challenges in this sector. GAR’s Managing Director for Sustainability, Agus Purnomo, said, “As a company with a proud heritage of Indonesian employment, GAR is committed to a sustainable plantation workforce. We see labour as the next important area of focus in implementing our social and environmental policy (GSEP) and believe this study can provide new insights into how we encourage future farmers, farm and mill workers essential to the sector.” Wilmar’s Chief Sustainability Officer, Jeremy Goon, said, “The palm oil sector workforce forms the backbone of our company, and also the industry.
    [Show full text]
  • Sustainability Report 2015 11 Global Business Overview Wilmar International Limited Sustainability Report 2015 12
    Scope & Boundaries We have sought to apply the guidance of GRI G4 for the boundary settings, focusing on performance data and reporting on aspects which are most significant, as reflected in our No Deforestation, No Peat and No Exploitation Policy. We will report at policy-level on our policies with regards to crude palm oil (CPO) suppliers and fresh fruit bunches (FFB) suppliers. Whilst we now have better insights into the performance of our key suppliers, we have not included these in our metrics, as such information is subject to confidentiality agreements, and we believe that performance metrics should be disclosed by these companies themselves. Performance metrics are focused on Wilmar’s palm oil operations globally in our upstream business. We are primarily focusing on the performance of our own plantations in Indonesia and Malaysia as these are the most scrutinised among our activities and the key concern of our stakeholders. However, we have also included metrics for our African operations where these are considered material. Detailed About This Design Specific Issue Performance Policy Raised By Data On Material Commitments Stakeholders Wilmar International Limited recognises the importance Aspects of transparency and accountability in the supply chain Plantations in order to achieve our end-goal of a deforestation- and Mills in and exploitation-free palm oil industry. Indonesia, Yes Yes Yes Malaysia and Being able to trace supply flows back to palm Africa oil mills and over time to plantations is therefore a means towards that end, including knowing FFB Suppliers No Yes Yes supplier’s locations and practices on the ground.
    [Show full text]
  • Case Study: Business Risks and Human Rights Reputational Risks in Wilmar’S Palm Supply Chain
    Case Study: Business Risks and Human Rights Reputational Risks in Wilmar’s Palm Supply Chain engagethechain.org BUSINESS RISKS AND HUMAN RIGHTS Executive Summary Wilmar International (SGX:F34) is one of the largest listed palm plantation companies on the Singapore Exchange and its public stock is held by major U.S. institutional investors, including mutual funds, pensions, endowments and foundations. Over the past several years, the company has been implicated in scandals involving violations of workers’ rights and land disputes in its Indonesian palm oil business. Some of these claims include: An investigative report released in November 2016 organizations and other land issues. These claims by Amnesty International alleged significant human exposed Wilmar to a variety of business risks, including rights abuses, including child labor and forced labor, litigation and disruption to operations. Wilmar incurred on Wilmar’s own plantations as well as within its supply legal costs in its defense against complaints and chain. Coverage of the report included widespread expenses for development and implementation of its media attention and articles by outlets such as Reuters, internal preventative programs. The Guardian, Mongabay, and Sustainable Brands. Due to its strategic position within the global palm oil The coverage by advocacy media exposed Wilmar to supply chain and its role as the world’s largest trader reputational risk due to inadequate supplier policies of palm oil, Wilmar has an important role to play in and deficient supplier monitoring and verification. advancing reforms on social issues in the wider palm The company responded by undertaking internal oil industry by demonstrating compliance with human reviews and external collaborations for assessments rights norms committed by its NDPE (No Deforestation, of labor practices in upstream operations in 2017.
    [Show full text]
  • Love Thy Neighbor?
    Follow us on WeChat Now LOVE THY NEIGHBOR? Advertising Hotline 400 820 8428 城市漫步北京 How Hebei Province 英文版 5 月份 国内统一刊号: CN 11-5232/GO Is Building a Megacity China Intercontinental Press ISSN 1672-8025 Next Door MAY 2017 WWW.THATSMAGS.COM | MAY 2017 | 1 主管单位 : 中华人民共和国国务院新闻办公室 Supervised by the State Council Information Office of the People's Republic of China 主办单位 : 五洲传播出版社 地址 : 北京西城月坛北街 26 号恒华国际商务中心南楼 11 层文化交流中心 邮编 100045 Published by China Intercontinental Press Address: 11th Floor South Building, HengHua linternational Business Center, 26 Yuetan North Street, Xicheng District, Beijing 100045, PRC http://www.cicc.org.cn 总编辑 Editor in Chief 慈爱民 Ci Aimin 期刊部负责人 Supervisor of Magazine Department 邓锦辉 Deng Jinhui 编辑 Editor 李靥 Li Ye 发行 / 市场 Distribution / Marketing 黄静，李若琳 Huang Jing, Li Ruolin Editor-in-Chief Oscar Holland Food & Drink Editor Noelle Mateer Staff Reporter Dominique Wong National Arts Editor Erica Martin Digital Content Editor Justine Lopez Designers Iris Wang, Victor Liu, Polly Gao Contributors Mia Li, Dominic Ngai, Karoline Kan, Jonathan Chatwin, Flynn Murphy, Andrew Chin, Jens Bakker HK FOCUS MEDIA Shanghai (Head office) 上海和舟广告有限公司 上海市蒙自路 169 号智造局 2 号楼 305-306 室 邮政编码 : 200023 Room 305-306, Building 2, No.169 Mengzi Lu, Shanghai 200023 电话 : 021-8023 2199 传真 : 021-8023 2190 (From February 13) Beijing 广告代理 : 上海和舟广告有限公司 北京市东城区东直门外大街 48 号东方银座 C 座 9G 邮政编码 : 100027 48 Dongzhimenwai Dajie Oriental Kenzo (Ginza Mall), Building C, Room 9G, Dongcheng District, Beijing 100027 电话 : 010-8447 7002 传真 : 010-8447 6455 Guangzhou 上海和舟广告有限公司广州分公司 广州市越秀区麓苑路 42 号大院 2 号楼 610 房 邮政编码 : 510095 Room 610, No.
    [Show full text]