A Sime Darby Plantation Company
www.nbpol.com.pg
Sustainability Report 2016/17
Contents
Chairman’s Welcome 2 Targets and achievements 4 About New Britain Palm Oil 6 Overview 6 NBPOL at a glance 6 Our operations 8 Focus on productivity gains through R&D 10 A fully segregated and traceable supply chain 13 NBPOL turns 50 14 Sustainability Report 2016/17 Sustainability Report 2016/17
Continuing our sustainability journey 16 1 Certification 16 Corporate governance, management and capacity building 19 Stakeholder engagement 21 Complaints and grievances 24
Protecting our planet 26 Protecting forests and biodiversity 26 Preventing fires 34 Minimising carbon emissions 35 Integrated pest management 38 Protecting waterways and enhancing access to water 40
Supporting livelihoods 42 N ew Britain Palm O il Limited Partnerships with communities and smallholders 42 A fair place to work 52 Promoting health and safety for workers and communities 55
Being transparent 61 Base data and notes 61 About this report 67 Global Reporting Initiative (GRI) Index 68 Glossary 78 Contact us IBC Chairman’s welcome Sustainability Report 2016/17 Sustainability Report 2016/17 We will 2 continue this work to break barriers and have already begun work to explore new standards, such as the Sustainable Agriculture Network (SAN) standard which forms the basis of the Rainforest Alliance certification scheme. N ew Britain Palm O il Limited ”
Dear Stakeholders and our commitments to environmental management of New Britain Palm Oil Limited sustainability and to constant system certification, in 2004. (NBPOL), and continuous improvement. Always challenging ourselves We have always recognised to do better, we have been Welcome to our sixth sustainability that caring for nature and an early adopter of Integrated report covering 2016 and 2017. maintaining good relationships Pest Management (IPM) This is a special occasion as this with local communities are practices, as well as pioneers report also marks our 50th year critical to our long-term success. in our engagement with local in operation, which has seen us NBPOL was among the first communities and respect for moving from a small player in the companies in the industry to customary land rights. industry, to one respected as a adopt a zero-burn policy back global leader in sustainable palm in 1967, when burning was We have been strongly involved oil. still the most common means in the development of the of clearing land. We were also Roundtable on Sustainable Palm I believe that there is a clear the first palm oil company Oil (RSPO) since its inception connection between our longevity to achieve the ISO14001 in 2004, and have contributed significantly to the development and seek to complete certification 2017 was a year marred by a of the RSPO Principles & Criteria. audits of all eligible estates and terrible tragedy. On the afternoon NBPOL was among the first smallholders by 2020. of Monday 9 January, one of our palm oil companies to complete company trucks at Higaturu Oil certification in 2008, and we were We are making steady progress Palms was involved in a road the first to include smallholders in against a number of key accident with a public motor our certification. sustainability indicators. We vehicle on the main Oro Bay to reviewed our carbon emissions Kokoda highway. The accident We have continued to challenge performance this year, and resulted in the deaths of 13 the status quo over the last I am happy to note that our people, with a further 12 people Sustainability Report 2016/17 decade. We published the very commitment to low carbon injured. The company extends first sustainability report in the stock development and methane its deepest condolences to the 3 sector in 2008, and became the capture has yielded a 19% families and friends of those first palm oil company to develop reduction in our absolute and who died or were injured in the a carbon footprint methodology relative carbon emissions since accident. in 2010. We have also continued 2011. I am likewise pleased to to strengthen our civil society report that our accident rate Beyond our plantation partnerships, which has played has dropped by more than 50% operations, I am happy to note a significant role in our progress. since 2015. that New Britain Oils Limited These include the High Carbon in Liverpool is continuing to Stock Approach No Deforestation be a fantastic ambassador for framework, which was initiated sustainable and responsible in 2014, and a new approach to palm oil, and is contributing to integrated land use planning that the continued growth of certified N ew Britain Palm O il Limited is currently under development. Our work to and segregated sustainable palm safeguard the oil in the European market. Becoming part of Sime Darby future of the endemic Plantation has not dampened our and highly endangered I would like to extend my efforts. In fact, as chair of NBPOL Queen Alexander Bird heartfelt thanks to all of over the past two years, I can Butterfly is a stellar our partners for their role in genuinely say that these have helping NBPOL become such example of an initiative been exciting times. We have a tremendous success story. I where one company worked our way through a robust thank civil society organisations integration with Sime Darby can truly make a for challenging us to do better. I Plantation, and have shared difference. thank our business partners and best practices in sustainability customers, without whom we between our two companies and could not continue operating. I across all our teams. ” also thank our local smallholders The eradication of harassment and communities, who remind NBPOL is now reaping the and violence against women has us daily that what we do makes benefits of this collaboration and been a focus area for NBPOL a difference in people’s lives. partnership, but we continue for more than a decade. I am And of course, most of all, I on our own distinct leadership particularly encouraged to see thank every past and present path. While RSPO certification our women’s safety programmes NBPOL employee for their remains the backbone of our and domestic violence awareness tireless work and adaptability, sustainability efforts, we have and support activities being which safeguards our continuous also put a great deal of hard work strengthened across all sites and success and growth. I believe into the Sustainable Agriculture in partnerships with the wider PNG that with such dedicated Network Standard, which now business communities. With the stakeholders we may see forms the basis of the Rainforest introduction of the Gender Smart another 50 years of prosperity. Alliance Sustainable Agriculture Safety Toolkit and the Gender Standard (RA SAS) certification Smart Audit, NBPOL has created scheme. We are proud to report a robust approach to ensuring that we have now successfully the safety and empowerment Dato’ Henry Barlow, completed certification audits of women in and around our Chairman for two of our operational sites, operations. New Britain Palm Oil Limited Targets and Achievements
Target dates Targets (year end) SR 2016/17 Environmental management
No land developed on peat Ongoing target Achieved Achieved for 5 sites – BOD levels below 90ppm for all mills built before 2013 Ongoing target not achieved in WNB Phase out methamidophos 2016 Achieved* Sustainability Report 2016/17 Sustainability Report 2016/17 Three new methane capture projects completed across 2020 On track 4 the Group Smalholder and community engagement 100% of RSPO premium paid to smallholders Ongoing target Achieved Develop Group-wide tracking categories for grievances 2019 On track Labour standards Reduce Group lost time accident (LTA) rates by 5% Ongoing target Achieved annually Achieved in GPP and HOP – No work-related fatalities Ongoing target not achieved in WNB, RAI, POL and MBE N ew Britain Palm O il Limited All employees paid above living wage Ongoing target Achieved No employees work more than 12 hours overtime per week Ongoing target Not achieved All employees have a minimum 1 day off per 7 days Ongoing target Achieved Management systems and compliance No expansion without FPIC Ongoing target Achieved No legal non-compliances Ongoing target Achieved No expansion without HCV assessment using ALS Ongoing target Achieved accredited HCV assessors No expansion without a peer-reviewed HCS assessment Ongoing target Achieved Roll out an internal management system based on 2017 Achieved ISO14001, OHSAS18000 and SA8000 Maintain RSPO certification for all sites (inclusive of Ongoing target Achieved smallholders) Progressive certification against SAN Standard at two sites 2017 Achieved at WNB & RAI Certification against SAN Standard for eligible sites 2020 On track Reduce GHG emissions by 30% 2024 On track Implement SMART forest monitoring and satellite 2024 On track monitoring protocols
* No purchases of methamidaphos since 2015. Remaining stock in the process of being used up.
Wnb – West New Britain HOP – Higaturu Oil Palms RAI – Ramu Agri Industries POL – Poliamba Limited MBE – Milne Bay Estates GPP – Guadalcanal Plains Palm Oil Limited
About New Britain Palm Oil – Overview
New Britain Palm Oil (NBPOL) is a vertically integrated producer of fully traceable, RSPO certified palm oil products. We have a land bank of approximately 140,000 hectares Sustainability Report 2016/17 Sustainability Report 2016/17 across six sites in Papua New 6 Guinea (PNG) and Solomon Islands, including 87,000 hectares of oil palm, 5,600 hectares of sugar and 9,000 hectares of cattle pasture. ” N ew Britain Palm O il Limited
NBPOL at a glance:
Total ha oil palm Titled land 2017
86,829 83,436 85,239 79,884 81,563 6,765 Total: 7,166 6,764 6,274 6,283 139,958 ha
73,610 75,280 76,270 78,475 80,064
Oil palm 86,829 (62.04%) Pasture 8,956 (6.40%) Sugar cane 5,613 (4.01%) Forestry 259 (0.19%) 2013 2014 2015 2016 2017 Infrastructure/housing/roads etc 6,055 (4.33%)
Papua New Guinea Solomon Islands HCV area 9,483 (6.78%) Other conservation area 10,128 (7.23%) Unplantable 10,251 (7.32%) Note: PNG hectarage has been restated for 2015 from 76,451 hectares Plantable reserve 2,384 (1.70%) New Britain Palm Oil (NBPOL) is a total land bank of approximately vertically integrated producer of fully 140,000 hectares. This includes traceable, RSPO certified palm oil 87,000 hectares of oil palm, 5,600 products. We became part of the Sime hectares of sugar and 9,000 hectares Sustainability Report 2016/17 Darby Group in March 2015, and now of pasture for cattle. We also own and are a wholly owner subsidiary of Sime operate state-of-the-art oil refineries 7 Darby Plantation Berhad, and are in PNG and Liverpool, United headquartered in Port Moresby, Papua Kingdom, as well as joint venture New Guinea (PNG). research facilities in Indonesia and PNG, including the acclaimed NBPOL operates six sites across Dami Research Station and Seed PNG and Solomon Islands with a Production Unit in West New Britain. N ew Britain Palm O il Limited
Number of smallholder blocks Employees by region
17,621 17,602 17,325 17,324 16,121 Total: 22,762
Papua New Guinea 21,234 (93.29%) Solomon Islands 1,435 (6.30%) UK 80 (0.35%) Singapore 13 (0.06%) 2013 2014 2015 2016 2017 About New Britain Palm Oil – Our operations
West New Britain Ramu Agri Industries Milne Bay Estates Higaturu Oil Palm (WNB), Papua Ltd (RAI), Papua (MBE), Papua New (HOP), Papua New New Guinea New Guinea Guinea Guinea • RSPO certified • Acquired by • Acquired by • Acquired by since 2008 NBPOL in 2008 NBPOL in 2010 NBPOL in 2010 • SAN certified since • RSPO certified • RSPO certified • RSPO certified March 2017 since 2010 since 2012 since 2012 • 39,143 hectares of • SAN audit completed • 10,746 hectares • 10,548 hectares of oil palm 2017 (certification oil palm oil palm
Sustainability Report 2016/17 Sustainability Report 2016/17 • Five mills and one achieved in Q1 2018) • One mill and one palm • Two mills and one palm kernel crusher • 14,136 hectares of kernel crusher palm kernel crusher 8 • 290,785 tonnes of CPO oil palm • 2,450 hectares • 2,586 hectares produced in 2017 • One mill and one palm managed for managed for • 7,971 hectares kernel crusher conservation conservation managed for • 58,474 tonnes of CPO • 56,907 tonnes of CPO • 83,458 tonnes of CPO conservation produced in 2017 produced in 2017 produced in 2017 • One refinery and • 3,686 hectares • 868 smallholder • 5,811 smallholder refinery bulking managed for blocks produce 6.6% blocks producing terminal conservation of FFB 31.1% of FFB • 8,303 smallholder • 322 smallholder • Land is a combination • Land is a combination blocks producing blocks producing of state agricultural of state agricultural 32.2% of fresh fruit 3.5% of FFB lease and customary lease and customary bunches (FFB) • 19,500 head of cattle land leased by the land leased by the company company • 3,365,673 seeds • 8,562 hectares of
N ew Britain Palm O il Limited produced in 2017 pasture • Dami Seed Production • 5,613 hectares of Unit ISO9001 certified sugar since 2005 • Land is primarily state • 4,018 head of cattle agricultural lease • 394 hectares of pasture • Land is a combination of state agricultural and customary land New Ireland leased by the company
Poliamba
West New Britain Ramu Agri-Industries Ltd
PaPua New guiNea
Higaturu
Milne Bay Poliamba (POL), Guadalcanal Plains New Britain Oils Papua New Guinea Palm Oil Limited (NBO), Liverpool, • Acquired by (GPPOL), Solomon United Kingdom NBPOL in 2010 Islands • Commissioned • RSPO certified • Acquired by in 2010 in 2012 NBPOL in 2005 • RSPO SCC certified • 5,492 hectares of • RSPO certified since 2012 oil palm since 2011 • One refinery • One mill and one palm • 6,765 hectares of • 100% dedicated to
kernel crusher oil palm processing traceable Sustainability Report 2016/17 • 18,144 tonnes of CPO • One mill and one palm RSPO certified produced in 2017 kernel crusher sustainable palm oil 9 • 1,811 hectares • One effluent tertiary • Products include managed for polishing plant ‘New Britain Finest’ RSPO branded bakery conservation • 35,089 tonnes of CPO fats, as well as frying • 1,788 smallholder produced in 2017 oils, margarines, blocks producing • 1,107 hectares 22.3% of FFB shortening and managed for palm-based bulk • Land is a combination conservation products for the food of state agricultural • 232 smallholder and personal care lease and customary blocks producing industries land leased by the 4.2% of FFB company • Land is primarily customary land leased
by the company N ew Britain Palm O il Limited
uNited KiNgdOm
Liverpool
Solomon islands
Guadalcanal Plains Palm Oil Ltd About New Britain Palm Oil – Focus on productivity gains through R&D
Since the early days of our Research Station is one of the to our clients – including company we have placed great world’s leading seed production advice on soils, climate, foliar emphasis on the improvement of units. The facility develops nutrient status and other yields and extraction rates as an planting materials and technical relevant agronomic data – to essential means to drive growth. services for our own operations, support sustainable palm oil The principle of delivering higher and makes these available management. For example, yields per hectare also underpins to our customers globally our site-specific data is used the very notion of sustainable and associated smallholders to establish more efficient agriculture. locally. We have also developed and precise applications of Sustainability Report 2016/17 Sustainability Report 2016/17 biotechnology services to assist fertiliser and pesticides. Our Our Group 30:30 Charter the seed production business. agronomists also provide advice 10 was designed over 10 years These include a technique called on organic recycling initiatives ago to guide our operations clonal micropropagation in which and the implementation of zero in good agricultural practices. tissue is extracted from the discharge technology in mills. The Charter ensures that we flowers of a donor palm and used work progressively towards as a starter material. In 2014, we built on our research our ultimate goal of achieving legacy by establishing Verdant a 30% combined extraction Much of our research targets Bioscience Singapore Pte Ltd rate and average yields of better agricultural practices. Our (VBS), a partnership between 30 tonnes per hectare across proprietary Oil Palm Management our wholly owned subsidiary our estates. Programme (OMP) database Ultra Oleom Pte Ltd, Sipef and maps the health status and Biosing PTE. VBS researches Research plays a central role tracks the harvesting progress and develops high-yielding N ew Britain Palm O il Limited in our work towards our 30:30 of individual palms. This enables seed varieties with a view ambition. For instance, our Dami us to offer agronomy services to commercialisation. This
Towards 30:30
28.7 28.8 27.5 27.9 27.9
23.3 23.0 23.3 21.7 21.7
Group average yield per hectare Group average extraction rate (MT FFB/mature ha) ((MT CPO and PK)/MT FFB)
2013 2014 2015 2016 2017 Sustainability Report 2016/17 Sustainability Report 2016/17
11 N ew Britain Palm O il Limited
is a long-term venture that and Development (R&D), and pilot plant research programme at has the potential to deliver a introduced new analytical the start of 2017. The programme quantum leap in palm oil yields techniques to identify the most allows us to carry out small-scale through genetics research and effective and cost-efficient production trials with bakery fats development, which does not way of mitigating the formation and new product developments involve any form of genetic of Glycidyl Esters (GE) and without impacting our main modification. 3-MCPD (ME), the main production plant. The programme contaminants that can occur also raises our capacity to Our research facilities are also in the processing of refined develop new and novel products, working on innovative solutions palm oil. to extend our existing bakery fats for use in downstream operations portfolio, to optimise existing such as processing. For instance, The output of this research products and to provide our concern over the level of harmful will contribute towards our customers with in-depth technical process contaminants found compliance with new EU support. in vegetable oils and some legislation that comes into processed foods has led to a effect in March 2018, which switch to using milder processing will limit the maximum level of conditions, which has in turn led GE permitted in refined oil to to a reduction in overall oil output. 1 ppm (with ME legislation to Prompted by this challenge, follow at a later stage). NBPOL conducted refinery trials throughout 2016 and 2017, in To further optimise our conjunction with colleagues from production process, we Sime Darby Plantation Research launched a laboratory-scale
About New Britain Palm Oil – A fully segregated and traceable supply chain Sustainability Report 2016/17 Sustainability Report 2016/17
13 In 2010, NBPOL became the than 10%. Bakery fat volumes Delico PRO – our first liquid, first company in the world able continued to show good growth as extra long-life frying oil based to deliver fully traceable and manufacturers have increasingly on Palm Olein – in late 2017. segregated RSPO certified palm moved to sourcing from physical Designed specifically for the oil products. Our two refineries supply chains. quick service restaurant sector, – in Liverpool, UK, and in West PRO combines the convenience New Britain, PNG – process only Our NBO site has continued of low temperature pourability fully segregated RSPO certified to embed technical solutions with the flavour and robust fry palm oil sourced from our own within its supply chain over the life associated with palm oil. We plantations. Both refineries are last two years, and business are confident that sales of PRO certified under the RSPO Supply systems and practices have now will contribute to further volume Chain Certification System been integrated across the site growth and provide access to N ew Britain Palm O il Limited to provide assurance to our to support a lean manufacturing areas of the market where we aim customers of the integrity of our approach. We also introduced to have a stronger presence. supply chain.
Our New Britain Oils (NBO) Packed product sales growth from 2013 baseline refinery in Liverpool currently produces bakery fats such as 176% margarine and shortening, frying 172% oils and bulk oils, including 149% custom blends. We are constantly challenging existing processes and developing new and more efficient ways of working to 85% ensure that sustainable palm oil is accessible across a vast number of food products. Thanks to a concerted and focused sales effort we saw average year-on- 2014 2015 2016 2017 year sales increase by more About New Britain Palm Oil – NBPOL turns 50
NBPOL celebrated its Silver NBPOL was founded on 19 May Overcoming many challenges, Jubilee in West New Britain, 1967 as a collaboration between NBPOL gradually developed PNG, in December 2017. the Hoskins Oil Palm Project and and attained sustainable The events, which included the Commonwealth of Australia levels of success, expanding the inauguration of the (which administered the Territory of not only its business and Sir Brown Bai Stadium in Papua and New Guinea until 1975), production, but also PNG’s Mosa, commemorated our following an agreement signed palm oil industry as a whole. company’s development, with the conglomerate Harrisons Today the country exports expansions, and successes & Crosfield on 28 February. This around 5% of the total Sustainability Report 2016/17 Sustainability Report 2016/17 over the last 50 years. marked the beginning of the palm certified palm oil sold globally. oil industry in PNG. 14 N ew Britain Palm O il Limited 50 years of sustainable palm oil
Corporate Milestones Sustainability Milestones
2017 2017 50 years celebration • First SAN Standard certification achieved • Achieved #2 SPOTT ranking
2015 • NBPOL Management Training Academy Sustainability Report 2016/17 • Acquired by Sime Darby established Plantation Sdn Bhd 15 (Now Sime Darby Plantation Bhd) 2014 • High Carbon Stock Approach Steering Group member
2012 • Community baseline assessment • Fully RSPO certified, inclusive of smallholders
2011 • Human Rights and Business Ethics Policy • Selected as World Economic Forum
“New Sustainability Champion” N ew Britain Palm O il Limited 2010 • Acquisition of MBE, HOP and POL 2010 • Commissioning of NBO refinery in UK • Carbon Report and No Net Carbon Loss Policy • No Planting on Peat Policy 2008 • Listing on London Stock Exchange 2008 • Acquisition of RAI • RSPO Certification • First GRI Report • Fully traceable supply chain 2005 • Acquisition of GPP
2004 • ISO14001
1999 • First listed on Port Moresby Stock Exchange
1997 • NBPOL Foundation established
1970 • Dami Oil Palm Research Station established
1969 • Zero burning
1968 • NBPOL established with 6,000 ha Continuing our sustainability journey – Certification
We recognise that third-party assurance of our sustainability initiatives is critical to our continuous improvement. Furthermore, we believe that standards developed in collaboration with both commercial and not-for-profit organisations are the best means Sustainability Report 2016/17 Sustainability Report 2016/17 for developing credibility and trust, as well as for ensuring 16 that we remain responsive to the ever-evolving stakeholder landscape.
Roundtable on Sustainable Palm Oil The Roundtable on Sustainable Palm Oil (RSPO) has been the cornerstone of our sustainability efforts for a decade. In 2008, we were among the first companies in the world to Network (SAN). In the last few specific criteria oriented N ew Britain Palm O il Limited achieve RSPO certification and years we have undertaken a towards the protection of all of our operations, inclusive number of baseline and gap High Conservation Value of smallholders, have been assessments, and have started (HCV) areas, best agricultural fully certified against the RSPO a series of mapping exercises practices, resource conservation, Principles & Criteria (P&C) to explore the possibility of carbon footprint reduction, since 2012. We have served certifying our operations against the improvement of working three terms as members of the the SAN Standard with the aim of conditions, and social and RSPO Board of Governors and making this a reality by the end community issues. remain deeply involved with the of 2020. organisation. NBPOL estates, including all 2017 saw the launch of the new associated smallholders, will Sustainable Agriculture Sustainable Agriculture Standard, be audited against the New Network and Rainforest which is applicable for crop 2017 SAN Standard and the Alliance and cattle production systems 2017 SAN List for Pesticide We continue to explore new worldwide. The Standard, now Management, and will be subject avenues for improving our exclusively owned by Rainforest to the 2017 SAN Certification sustainability performance, Alliance, focuses on continuous Rules document. To ensure including extensive engagement progression in sustainability better understanding of the with the Sustainable Agriculture performance over time, with new Standard for the inclusion of smallholders, NBPOL’s 2017 Sustainable Agriculture smallholders, starting with Sustainability Department is Standard in November 2017 the Tamba Lease Settlement organising training sessions and and certification was awarded Scheme (LSS), a group of 200 field trips to build knowledge Q1 2018. We plan to roll out smallholders. around the new requirements. certification for all eligible company estates (also referred to We have also maintained our Our WNB operations were as “farms” by Rainforest Alliance). working relationship with The first audited against the 2010 While we aim to complete all Rainforest Alliance. The Alliance’s SAN Standards in November audits by 2020, certification for integrity and iconic logo are well 2016 and achieved certification smallholders will be included recognised by consumers in our Sustainability Report 2016/17 on 13 March 2017. The in a step-wise approach as we major markets and we believe certificate covers 13 estates. develop the support programmes. that this certification could add 17 Our RAI oil palm operations We are now embarking on tremendous assurance and value were successfully audited expanding the scope of the audit for our customers. against the Rainforest Alliance to include WNB’s associated
Engagement with Rainforest Alliance to achieve certification against the SAN Standard
2014 Original gap
assessment for 2016 N ew Britain Palm O il Limited Solomon Islands Main (focusing on assessment estates) for WNB (covering 75% 2018 POIG of company RAI Rainforest verification for estates and no Alliance SAN HOP and MBE smallholders) certified
2013 2015 2017 Expected 2018 Agreement to Gap assessment WNB Rainforest HOP gap assessment work towards for WNB Alliance SAN certification (focusing on certified Main assessment SAN standard smallholders) for WNB (for RAI gap SAN remaining WNB assessment company estates and first group of Main assessment smallholders) for RAI (covering company estates and no smallholders) Continuing our sustainability journey – Certification
High Carbon Stock Implementing the HCS Approach including those focused on issues Approach has played a fundamental role relating to forest protection, NBPOL has been a member of in our approach to expansion, high forest cover landscapes the High Carbon Stock (HCS) from drawing up community land (HFCL), quality assurance and Approach Steering Group use plans, to our consultative smallholders. We are working since its inception in 2014. The processes with communities and closely with the HFCL Working Steering Group governs the stakeholders, to our approach Group in addressing NBPOL’s development and implementation to carbon stock mapping, to concerns around managing highly of the HCS Approach alongside including conservation areas forested areas (see page 28). Sustainability Report 2016/17 Sustainability Report 2016/17 other growers, commodity user within our integrated land use plans. To date, NBPOL has 18 companies, non-governmental organisations (NGOs) and been active in most of the HCS technical support organisations. Approach Working Groups, N ew Britain Palm O il Limited Corporate governance, management and capacity building
NBPOL is a wholly owned Strong emphasis has been placed Group Sustainability Director subsidiary of SIme Darby on maintaining a consistent approach of NBPOL) has oversight of Plantation Berhad. NBPOL to sustainability management at NBPOL’s sustainability strategy. has its own Board of Directors NBPOL. The Board continues At NBPOL Group-level, our and a non-executive chairman. to receive and discuss quarterly Head of Sustainability, our Group As at 31 December 2017, the sustainability updates and a detailed Sustainability Manager and our Board consists of eight non- report on environmental and social Group Environment, Safety & Health executive directors, four of key performance indicators (KPIs) is Manager, who are all based in whom are independent, and distributed monthly. PNG, are responsible for ensuring one executive director. Three collaboration across sites. Each Sustainability Report 2016/17 members are PNG nationals, The Chief Sustainability Officer NBPOL site has a Sustainability two are British citizens and four of the Sime Darby Plantation Manager as well as sustainability 19 are Malaysians. Group (who is also the former specialists in relevant disciplines.
NBPOL Sustainability Management Structure
Sime Darby Plantation Bhd Main Board
Executive Deputy Chairman & NBPOL Managing Director Board of Directors N ew Britain Palm O il Limited
Sime Darby Plantation NBPOL Chief Sustainability Officer Chief Executive Officer
Sime Darby Plantation Head Global Sustainability Operations
NBPOL Head of Sustainability
Group Group Sustainability Environment, Safety Manager & Health Manager
General General General General General General Manager Manager Manager Manager Manager Manager WNB POL MBE HOP GPP RAI
Sustainability Sustainability Sustainability Sustainability Sustainability Sustainability Manager Manager Manager Manager Manager Manager
Sustainability Sustainability Sustainability Sustainability Sustainability Sustainability Specialists Specialists Specialists Specialists Specialists Specialists Continuing our sustainability journey – Corporate governance, management and capacity building
We ensure our teams are kept us to highlight outliers at an These updates also provide up to date with the latest operational level while keeping case stories from our PNG sustainability systems. We have the big picture at Group-level in communities. implemented a Sustainable view. We are constantly finding Integrated Management System, ways to make this process Integrity and which incorporates ISO14001, more robust to strengthen our anti-corruption OHSAS18001 and SA8000. This sustainability performance. We understand that the internal system strengthens our In the next two years we foundation of sustainability adherence to our environment will be setting a composite is to ensure transparency and Sustainability Report 2016/17 Sustainability Report 2016/17 policies and has been rolled out safety-health-environmental integrity in everything we do. to all teams through training and KPI with consultation from all We abide by our comprehensive 20 socialisation on the standards. site managers to better our Business Ethics Policy, which monitoring process. provides guidance to our Since mid-2016 we have been business units, and we are streamlining the way we monitor To ensure compliance to RSPO also bound to the Sime Darby our sustainability KPIs. Each standards throughout our Plantation Code of Business site now submits their progress operations, we conduct site-level Conduct, which strengthens against targets to a third party, training sessions to build each this commitment across all of who then manages and analyses site’s capacity to conduct internal our operations. the data that feed into our auditing based on the RSPO P&C. monthly reports. This enables Through this annual training, all We also recognise that such mills and sites required to carry guidance plays a critical out internal audits are prepared role in avoiding unethical N ew Britain Palm O il Limited for quarterly audits and annual business practices. This is external RSPO audits. particularly important as our primary operations are in We provide regular updates on PNG, which, despite some our sustainability efforts to ensure improvement, remains ranked our external stakeholders and in the lowest 25th percentile our employees are kept fully up on the Corruption Perception to date with our progress on Index published annually by audits, certifications, community Transparency International. projects and safety campaigns. Stakeholder engagement Sustainability Report 2016/17 Sustainability Report 2016/17
21 N ew Britain Palm O il Limited Stakeholder engagement is a organisations, industry bodies, as a platform for associations to fundamental part of our business. the media, and faith-based reach out and share presentations At site level, our key stakeholders organisations. and best practices on related are the communities we depend topics for outgrowers. on for access to land, as well as A Lands Forum covering all for employment and local goods NBPOL operations is held Social Impact Registers, and services. From a wider Group biannually between government consistent with SA8000 standards, perspective it is also vital that we officers and NBPOL lands and are maintained and regularly maintain strong links to regulatory sustainability representatives. updated at all operations. These bodies at both provincial and Following the last Forum in registers take into account national levels. March 2016, it has been decided the social risks and concerns to rename the engagement associated with our operations Formal and informal stakeholder the NBPOL Lands, Legal & and identify control measures to consultations have continued Sustainability Forum, signifying mitigate or minimise these risks. to prove vital across all NBPOL the strong and important links sites as we engage and promote between these three departments. We have regular radio broadcasts dialogue between different to disseminate public information. stakeholder groups on issues NBPOL also hosts field days Broadcasts cover RSPO that affect both themselves and in collaboration with key and SAN Principles, NBPOL NBPOL. Our approach has been associations, including smallholder grievance procedures, support to bring different stakeholders associations, the Oil Palm Industry and empowerment initiatives from across the province on site Corporation, the Oil Palm Research for women, health and safety tours, as well as for presentations Association, provincial government information, environmental on the RSPO Certification representatives, as well as programmes and children’s rights. standards. The programme has representatives from mills, plant so far engaged NGOs, provincial breeding groups and transport government officers, students, groups. Mobilised across our businesses, schools, community operations, field days are organised Continuing our sustainability journey – Stakeholder engagement
Engagement with customers and with NGOs all over Toolkit (SPOTT), an initiative commercial stakeholders the world. We have a hands-on developed by the Zoological As a company operating in a approach to engagement and Society of London to track heavily scrutinised industry, and seek to respond fully and rapidly progress against sustainability being focused on exports to to all queries from stakeholders. commitments and encourage highly sophisticated European transparency. In 2017, NBPOL and US markets, we need to be International engagement moved up from third to second responsive to evolving market and recognition place among 50 companies based expectations. We have therefore We maintain a high rank in the on a detailed set of sustainability Sustainability Report 2016/17 Sustainability Report 2016/17 built strong relationships with our Sustainable Palm Oil Transparency and certification-related criteria. 22 N ew Britain Palm O il Limited Stakeholder group Theme NBPOL’s engagement Employees Health and safety Conducting safety campaigns and training Social welfare Social awareness programmes, gender-based violence (GBV) awareness and support programmes, child labour awareness programmes, social impact registers Supporting livelihoods Providing gardening space and tools to resident workers, constructing marketplaces, providing facilities for fish ponds and chicken farms; engaging with government for food security programmes Financial literacy and empowerment Providing financial literacy and income management training, savings and
superannuation accounts for smallholders; providing Mama Card system for Sustainability Report 2016/17 smallholders Environmental restoration (protecting Conducting awareness drives and outreach programmes; monitoring and buffer zones, enhancing mangroves, enforcement 23 shoreline rehabilitation) Smallholders, Socialisation of standards and best practice Carrying out on-farm field days; briefings and site visits; auditing against landowners and standards communities Environmental restoration (protecting Conducting awareness drives and outreach programmes buffer zones, enhancing mangroves, shoreline rehabilitation) Safeguard community lands and Ensuring Free, Prior and Informed Consent (FPIC); undertaking community ownership needs assessments and participatory processes Assisting registration of Incorporated Landowner Groups (ILG) Ensuring presence of special lands officers dedicated to communities’ land matters Supporting customary landowners to comply with PNG government on customary land laws
Developing and implementing land usage agreements N ew Britain Palm O il Limited Women empowerment and financial literacy Providing support services for victims of domestic violence and child abuse Delivering gender-oriented programmes and workshops Providing financial literacy and income management training Assisting in women’s leadership training Providing a Mama Card system Supporting livelihoods Engaging villagers in community forestry Running awareness programmes and workshops for access to potable water Implementing programmes on best management of oil palm blocks for smallholders Providing credit to and share sustainability premium with smallholders Providing loans for chicken farming Education and literacy Managing book donation programmes; building classrooms Community health Providing access to clinics and free medical care, coordinating family planning programmes, coordinating workshops on food and personal hygiene Customers Market standards and customer policies Conducting briefings and site visits Maintaining ongoing dialogue NGOs Collaborations on best practice sharing, Conducting briefings and site visits certification standards Maintaining ongoing dialogue Collaborating to produce RSPO PNG National Interpretation on Climate Change Forums and Sustainable Palm Oil Platforms Government Collaborations on empowering outgrowers Conducting briefings and site visits and regulators and community welfare, certification Maintaining close cooperation with the Conservation and Environment standards Protection Authority (CEPA), Department of Labour and Industrial Relations, Climate Change and Development Authority and Department of Lands and Physical Planning Land and legality issues Participating in biannual forums Industry Collaborations on best practice sharing, Conducting briefings and site visits associations certification standards and national Being members of PNG Oil Palm Research Association, the Palm Oil sectoral policy Producers Association and the Rural Industries Council Media Sharing events, responding to media queries Conducting briefings and site visits Universities Collaborations on best practice sharing Conducting briefings and site visits and certification standards Multi- Sustainable palm oil production Being members of RSPO stakeholder No deforestation Being members of HCS Approach Steering Group organisations Sustainability performance Securing SAN and Rainforest Alliance certification Continuing our sustainability journey – Complaints and grievances
Each of our sites keeps a record of requests must be closed within third parties (governments, civil all registered grievances from both 30 days. Grievances can be societies, human right defenders) internal stakeholders (employees) registered at all operational sites or those formally registered and external stakeholders (including estate offices, mills and through RSPO and other entities (including communities, smallholder departments) where are published on our website. contractors and NGOs). These are the details of the grievance are Other grievances raised locally are categorised and addressed on recorded directly into the grievance registered and addressed internally. an ongoing basis. Auditors have register. Site managers are then access to these records during responsible for addressing and All sites have designated Sustainability Report 2016/17 Sustainability Report 2016/17 internal and external audits to closing the respective grievances, personnel to handle employee ensure that we can document or referring them to a more suitable welfare issues or concerns, 24 proactive engagement. department for appropriate action. including domestic violence, Our Sustainability Department sexual harassment, sexual assault Grievances are currently recorded monitors all registers and ensures and other domestic issues. These against locally developed that corrective action is taken officers provide counselling and indicators. To enhance Group- via internal audits to close each follow up to all parties concerned wide monitoring, we will be request or grievance raised. Only and are also responsible for looking to develop a new template grievances or complaints involving maintaining welfare records. for all sites to track grievances in a more consistent manner. We expect to roll out this work in 2019 Nature of grievance Number of cases in 2016/2017 in consultation with the sites. Deforestation 0 N ew Britain Palm O il Limited All operational areas have Environmental 4 established guidance on Human rights 0 communication and consultation to manage and handle each grievance Livelihoods 2 in an appropriate manner. Internal Land 2 grievances or requests must be Health & safety 3 closed within 10 days of receipt, while external grievances or Grievance request procedure
Head of Department (HOD) General Manager (GM) Addresses the grievance/ Feedback from GM is
complaint or request final and the case closed Sustainability Report 2016/17
25
Court Site Manager/ Grievance/Complaint Open for the complainant or Supervisor or Request requestor if not satisfied with
Grievance/complaint Received and registered the company’s response N ew Britain Palm O il Limited or request received in detail including name and addressed by site and contact details RSPO Secretariat manager/supervisor by respective site or Email or letter can be sent if department not satisfied with the company’s response
Grievance/complaint or request REFERRED to higher person in authority due to dissatisfaction for feedback received by complainant or requestor. Grievance/complaint or request feedback ACCEPTED by complainant or requestor; outcome registered and closed by assigned company employee.
NBPOL has only been subject to one formal complaint raised through the RSPO Complaints System since becoming an RSPO member in 2004. This issue was lodged and resolved in 2015 (see our 2015 Sustainability Report for details). Protecting our planet – Protecting forests and biodiversity Sustainability Report 2016/17 Sustainability Report 2016/17
26 N ew Britain Palm O il Limited
Responsible expansion areas they want to lease to us and a long process of engagement Launched in 2013, our Forest delimit the areas they require for with the communities, including Policy sets out our clear living space and food security. The genealogical mapping, commitment to protect forests whole engagement is a dynamic participatory mapping and and biodiversity in the areas process of integrated land use community needs assessments. where we operate, with ‘No planning that extends beyond The entire process, which takes Deforestation’ as our ultimate the technical boundaries of the at least two years, is completed objective. We have worked hard at science-based assessments prior to any agreed planting. We transforming the means by which and into the social realm. This are currently working with The we expand our plantations. Fully ensures our engagement does not Forest Trust (TFT) to document adopting the HCS Approach to end with the planting of palms, this process as a means to ensure secure our commitment to zero- but continues to address the our best practice is consistently deforestation, we carry out HCS community needs assessed. implemented by the palm oil and HCV assessments to delimit industry at large (see page 44 areas for potential conversion All NBPOL expansion since 2010 for details on our Free, Prior and and protection. At the same time, has been onto communal lands Informed Consent (FPIC) process). our social impact assessments (where 97% of land in PNG and (SIA) and continual field presence 87% of land in Solomon Islands With the full adoption of the HCS with communities determine the is customary land). Our integrated Approach methodology, and land use plans are the result of with the support of TFT, our new and have been registered with the developments have increasingly HCS Approach Steering Group incorporated community needs Secretariat for approval through as part of our approach to the HCS Approach Quality Review integrated land use planning. Process. All future assessments Since 2014, we have carried out will be undertaken in conjunction HCS assessments for our MBE, with HCV assessments following HOP, GPP and RAI estates. the launch of the integrated HCV- These HCS assessments cover a HCSA Assessment Manual in combined total of 42,329 hectares November 2017. Sustainability Report 2016/17 27
Land use plan for RAI Ltd N ew Britain Palm O il Limited Protecting our planet – Protecting forests and biodiversity
The biggest challenge we face in better incomes, infrastructure and enclaved for community use, implementing our commitments social development. We continue and 8,116 hectares have been to no deforestation is how to working with the HCS Approach identified for potential conversion. act in the case of high forest HFCL Working Group to find ways These areas are largely low carbon cover landscapes. Strict market to address these limitations. stock, with 6,457 hectares of demands for no deforestation the total areas assessed being and the resulting thresholds Three of our sites covering 17,417 classified as grasslands or for conversion set by the HCS hectares have been submitted for scrub. Other areas of potential Approach set severe restrictions the RSPO New Planting Procedure conversion include ecosystems Sustainability Report 2016/17 Sustainability Report 2016/17 on agricultural development in (NPP). For our most recent dominated by invasive species, least developed countries that proposed developments – in GPP such as the Raintree (Samanea 28 are highly forested – including and RAI – we have assessed a saman) and the Paper Mulberry PNG and Solomon Islands. This total of 14,158 hectares of land. (Broussonetia papyrifera) in imposes harsh limits on the ability Of this, 1,490 hectares have been Solomon Islands. of local communities in these categorised as HCV and/or HCS countries to achieve access to area, 4,552 hectares have been
Land set aside for conservation (ha) 19,611 19,326 16,471 N ew Britain Palm O il Limited 9,173 9,172 7,971 3,686 3,686 3,500 2,586 2,450 2,450 1,811 1,656 1,500 1,255 1,107 1,107 1,039 789 470
WNB RAI MBE HOP POL GPP Total area
2015 2016 2017
Percentage of leased land set aside for conservation 22.9% 17.4% 17.1% 17.0% 15.9% 14.9% 14.0% 14.0% 13.3% 13.3% 12.9% 11.8% 12.1% 12.1% 11.3% 10.5% 10.5% 10.3% 9.5% 5.9% 5.5%
WNB RAI MBE HOP POL GPP Group
2015 2016 2017 We document IUCN Red List and CITES species that we have confirmed as present on our leases. This list is a work in progress and grows with our knowledge as we start to conduct more science-led monitoring of our conservation areas.
IUCN Red List species identified in NBPOL’s areas of operation as of 2017 Common and binomial names Taxa CITES Endemic Endangered Sustainability Report 2016/17 Sustainability Report 2016/17 Calophyllum waliense Tree Yes Manilkara kanosiensis Tree 29 Palm (Ponapea hentyi) Tree Yes Papua ebony (Diospyros insularis) Tree Queen Alexandra's Birdwing Insect Appendix I Yes (Ornithoptera alexandrae) Wild talis (Terminalia archipelagi) Tree Yes Vulnerable Black Honey Buzzard Bird Yes (Henicopernis infuscatus) Burmese Rosewood Tree Appendix II
(Pterocapus indicus) N ew Britain Palm O il Limited Golden Masked Owl Bird Appendix III Yes (Tyto aurantia) Helicia neglecta Tree Yes Helicia peekelii Tree Yes Kwila (Intsia bijug) Tree Mastixiodendron stoddardii Tree Merbau (Intsia bijuga) Tree Osmoxylon lanceolatum Tree Yes Paho (Mangifera altissima) Tree Rosewood (Pterocarpus indicus) Tree Near Threatened Cycad (Cycas schumaniana) Tree Appendix II Yes Green-fronted Hanging Parrot Bird Appendix II Yes (Loriculus tener) Protecting our planet – Protecting forests and biodiversity Sustainability Report 2016/17 Sustainability Report 2016/17
30
Identifying and protecting the vine above the cut and may N ew Britain Palm O il Limited endangered species create new shoot growth of the We are privileged to have the preferred vine type for subsequent Queen Alexandra’s Birdwing larval generations. Adult QABBs Butterfly (QABB) (Ornithoptera feed on flower nectar from a alexandrae) as a flagship species variety of flowering trees, vines near our operations at Higaturu. and bushes. The QABB is the world’s largest butterfly, with a wingspan The QABB is endangered and one between 19cm and 30cm. It of the only three butterflies listed is endemic to northern Papua on Appendix 1 of CITES, which New Guinea, east of the Owen makes international trade in the Stanley Mountains, and has an species illegal. It is also classified extremely small home range. as endangered on the IUCN The QABB is commonly found red list of threatened species. in Papua New Guinea’s lowland Despite this, as the world’s largest rainforests, up to 900m above sea butterfly, and also one of the most level. The QABB caterpillar mainly rare and beautiful, the QABB is feeds on Aristolochia dielsiana, extremely attractive to collectors. a toxic pipevine species that QABB specimens have been plays a central role in the QABB’s reported fetching between USD reproduction. The caterpillar feeds 5,000 and USD 10,000 on the on fresh vine foliage and then, black market, and the species prior to pupating, ‘ring-barks’ the has suffered severely from illegal base of the vine stem. This kills poaching in the wild. Poachers typically collect the pupae and sustainable population of QABB well under way at the end of store them until they hatch. The through the establishment of 2017. A larval food plant nursery newly emerged butterflies are a laboratory-based facility for has also been established with killed for presentation once the the captive breeding of QABB. 1,340 vines, and is expected wings are fully expanded and in Using successful protocols to expand to about 6,000 vines pristine condition. developed at the Australian by the end of the first quarter Butterfly Sanctuary for other of 2018. These vines are used NBPOL has for many years Birdwing Butterfly species, the for habitat restoration as well as cultivated larval food vines in project will release captive- feeding the captive reared QABB. its oil palm nurseries to provide reared healthy QABB back Sustainability Report 2016/17 young plants to establish in into the wild while performing A key project partner is the areas identified as QABB habitat. research relating to QABB larval Swallowtail and Birdwing Butterfly 31 Given increasing concerns over food-plant and its propagation. Trust (SBBT), which is a not-for- the sustainability of the QABB Furthermore, the project will profit organisation established in population, especially on the engage with government and 2017 in the UK (www.sbbt.org. Popondetta Plains, the Sime local communities to spread uk). SBBT will supply technical Darby Foundation agreed in awareness and preserve forest and scientific advice to the August 2017 to fund a major areas. project as well as providing media project to help conserve the and fund-raising support. butterfly. The objective of this Construction of the QABB rearing project is to create a stable and laboratory and staff housing was Our MBE operation has identified a lack of sound scientific baseline data on the forest biological and ecological characteristics of N ew Britain Palm O il Limited the local vegetation buffer zone (VBZ), HCV and riparian forest areas. In 2017, an independent biologist was engaged to conduct a baseline survey to document the status and ecosystem functionality of the VBZ and HCV. A total of 29 bird species, three rodent species, three bat species and four reptile species were identified.
Moving forward, we plan to implement forest monitoring and satellite monitoring protocols using the Spatial Monitoring and Reporting Tool (SMART) (http://smartconservationtools. org/) which will enable us to better measure and evaluate our conservation efforts across our sites. Protecting our planet – Protecting forests and biodiversity Sustainability Report 2016/17 Sustainability Report 2016/17
32 N ew Britain Palm O il Limited
Protecting buffer zones breaching the policy. Regular plantations, our Sustainability and enhancing mangroves awareness drives are conducted Department in WNB initiated a We continuously manage to ensure that our employees rehabilitation programme in 2016 the buffer zones within our understand the rules. In Milne in partnership with local NGO, plantations and mini-estates Bay, local community awareness Mahonia Na Dari. The objective to restore their biodiversity. on the importance of HCV is to replant seven kilometres Our buffer rehabilitation preservation and ongoing of the Numundo coastline with efforts include tree planting habitat management is being both mangroves and forest trees. and propagation, as well as strengthened through informative Local communities and schools the planting of Aristolochia radio broadcasts. have been engaged to raise dielsiana at Higaturu to awareness, run the nurseries support QABB larvae. We are also working to allocate and carry out the plantings. our employees sufficient land for In 2017, we began trialling We have established a policy food gardening so they do not biodegradable alternatives to prohibiting all kinds of human feel the need to farm in buffer the polybags conventionally activity in buffer zones, zones. In West New Britain, used for mangrove planting, including firewood collection, where population pressure is using bamboo and coconut gardening, making fires greatest, we conduct an annual baskets for coastal rehabilitation and cutting trees. Following survey to ensure that this in the Kimbe Bay region, PNG. instances of encroachment commitment is being met. This ongoing study will expand by local communities and our expertise in mangrove our employees, we have now To address erosion and the planting methods for the introduced tough disciplinary harvesting of mangroves current rehabilitation project at measures for anyone caught along shorelines near our Numundo, as well as for future coastal rehabilitation projects In addition to native forest set to increase the amount of in the region. It will also provide restoration, we continue to wooded area in the valley, with social benefits by enabling encourage local villagers to positive impacts for both the local communities to make adopt community forestry as communities and the wider the baskets themselves, and a livelihood activity. These environment. reducing our reliance on plastics. engagement activities are
Sustainability Report 2016/17 Sustainability Report 2016/17
Partnership to promote native species in the Markham Valley 33
The Australian Centre for as a collaboration with various along riverbanks and form International Agricultural government, NGO, private sector linkages between forest Research (ACIAR) has and community partners in PNG, patches and conservation commissioned a four- aims to identify how community areas within the landscape. year forestry research forestry in PNG can be enhanced In November 2016, the project to support PNG’s and scaled up to achieve better ACIAR project was awarded Forest Policy Medium economic, social and environmental accreditation under the Term Development Plan outcomes. Its activities currently Queen’s Commonwealth to increase the area of focus in three areas in the region, Canopy and formally planted forests in PNG which including the Ramu Markham acknowledged by Her N ew Britain Palm O il Limited from 62,000 hectares to Valley. To date the RAI forest nursery Majesty Queen Elizabeth II. 150,000 hectares by 2025. has expanded to produce over 100 The programme, managed species of native trees from the through the University of the Valley. At NBPOL the goal of our Sunshine Coast (Australia) efforts is to create protective buffers Protecting our planet – Preventing fires Sustainability Report 2016/17 Sustainability Report 2016/17
34 N ew Britain Palm O il Limited
We have had a strong ethos of enable monitoring of hotspots, zero burning since 1969. We not only in concession areas, believe zero burning is important but also within a 5km radius for avoiding air pollution and the beyond estate boundaries. This spreading of fires, and is also round-the-clock monitoring best for soil conservation and system uses NASA satellite data crop performance. to provide information on the number of hotspots recorded We keep a detailed fire register throughout the year as well as at every one of our sites and actions that have been taken by three instances in HOP and investigate all fires to understand the respective estates if hotspots in MBE, these all occurred in how we can prevent or are confirmed to be actual fires our RAI operation. This area mitigate them in the future. Fire in or near our operations. When a is generally prone to fire due fighting drills are also routinely hotspot is detected, email alerts to dry conditions as well as conducted across the various are sent to the respective estates local communities’ custom of estates with the purpose of for investigation and immediate using fire to clear gardens. RAI equipping our employees and action to extinguish the fire. The is also located in landscapes ensuring that they know how to respective estates then revert where man-made fires on react quickly and appropriately in with feedback either confirming grassland are common. These any fire situation. the alert or the action taken. includes fires resulting from accidents, fires set deliberately, Since 2016, Sime Darby We identified seven hotspots in often by communities wishing Plantation has had in place a PNG in 2016, and 45 hotspots to clear land, and in some Hotspot Alert Dashboard to in 2017. With the exception of cases arson. Minimising carbon emissions
We are committed to the ongoing Using PalmGHG version 3.0.1, result of an increase in electricity reduction of our greenhouse gas our total net emissions for 2017 generated by our methane capture (GHG) emissions and our carbon were 318,261 tonnes of carbon projects, which was fed into local footprint with a target of reducing dioxide equivalent (MT CO2e), a power grids. In addition, greenfield our emissions by 30% by 2024 19% reduction compared to 2011 developments over the last two from our 2017 baseline. We use (393,724 MT CO2e). Our carbon decades have been primarily on the RSPO PalmGHG calculator footprint in terms of emissions grassland in RAI and GPP, and to monitor our progress and for per tonne of product has seen a many of our estates are now in the this report, we have undertaken a similar reduction of 19%, from second cycle of planting and are Sustainability Report 2016/17 Sustainability Report 2016/17 major review and have transferred 0.58 MT CO2e per tonne of crude therefore categorised as replanted all our monitoring data since palm oil (CPO) and palm kernel oil palm (rather than secondary 35 2011 into the latest version of (PK) in 2011, to 0.47 MT CO2e in forest, for example). PalmGHG. 2017. This reduction is primarily a
Overall palm product carbon footprint (MT CO e/MT PK/CPO ex-mill) 0.65 2
0.60 0.60 0.58 0.58 0.56 0.56
0.55
0.50 N ew Britain Palm O il Limited 0.50 0.47
0.45
0.40 2011 2012 2013 2014 2015 2016 2017
However, in absolute terms, GHG. We treat POME in ponds Gross emissions the impact of previous land and have biogas facilities at by source 2017 use change (LUC) remains the two mills to capture methane most significant emissions for flaring and electricity source and was responsible production. for 62% of our 2017 carbon emissions, constituting a total There are no peat emissions of 838,734 MT CO2e. from our operations as no peat land has been used for oil palm Our second most significant cultivation. Soil studies by GHG source is palm oil mill NBPOL have shown that planted effluent (POME) from our areas previously reported to be mills. If left untreated, POME peat land do not fall within the releases methane, a powerful definition. Land use change 838,734 (62%)
CO2 emissions from fertilliser 46,104 (4%)
N20 68,074 (5%) Field fuel 31,996 (2%) POME 345,529 (26%) Mill fuel 13,965 (1%) Protecting our planet – Minimising carbon emissions
Emissions sources and sinks 2011-2017 (MT CO2e) Sustainability Report 2016/17 Sustainability Report 2016/17
36
CO2 emissions Net Land Crop from Field Conservation Mill Mill
emissions clearing sequestration fertilliser N20 fuel Peat credit POME fuel credit 2011 393,724 779,125 -726,200 59,001 67,647 16,617 – -171,305 346,528 27,478 -5,167
2012 365,304 788,067 -737,932 54,901 63,416 20,201 – -171,305 328,940 24,623 -5,607
2013 320,371 790,247 -745,739 51,593 56,309 20,871 – -171,305 301,792 22,509 -5,906
2014 387,494 789,795 -751,408 71,058 67,975 22,250 – -171,305 338,448 26,635 -5,955 N ew Britain Palm O il Limited
2015 355,717 801,232 -771,001 48,854 68,192 24,747 – -171,305 330,514 28,006 -3,522
2016 307,572 827,353 -796,642 42,590 61,717 20,174 – -171,305 316,565 17,794 -12,673
2017 318,261 838,734 -822,165 46,104 68,074 31,996 – -179,837 345,529 13,965 -24,139
Emissions by site Our biggest reduction efforts have hosted at the Liamo Reef Resort, Our largest site at WNB is therefore been in WNB, where PNG, by the Climate Change responsible for three quarters we have two operational biogas and Development Authority. of our combined net GHG plants. The biggest plant, in The workshop was conducted emissions. This is due to both Mosa, is dedicated to supplying in collaboration with the Forest its size and the fact that most 900 kWh per hour to the local Carbon Partnership Facility and of this site was developed as electricity grid, and powers the United Nations Development greenfield, whereas other sites housing compounds, workshops Programme, and a total of 37 were developed on grassland or and offices. The second plant, participants representing the previously cultivated land. This at our Kumbango mill, powers government, civil society and has resulted in high emission the Kumbango Oil Refinery. We the private sector participated. numbers derived from previous are exploring further biogas As part of the workshop, NBPOL land use change. In contrast, facilities at Kapiura, Numondo and was able to showcase the RAI has negative emissions, as Waraston mills. different mechanisms involved all oil palm was planted either in minimising GHG emissions. on grass or on former sugar We seek to share our experience This included a field trip to Roka plantations, which have very low in carbon emissions reduction with Mini Estate and a site tour of the sequestration values. our peers. In 2016, we attended Kumbango biogas plant. a three-day REDD+ Workshop GHG emissions by site 2017
241,267
59,404 62,593
26,932 Sustainability Report 2016/17 13,793 37 WNB RAI MBE HOP POL GPP
-85,728
Product emissions by site (MT CO2e/MT PK/CPO ex-mill) Site Mill Name 2011 2012 2013 2014 2015 2016 2017 WNB Numondo, Kumbango, Mosa, Kapiura, 0.75 0.83 0.87 0.86 0.83 0.81 0.81 Warastone N ew Britain Palm O il Limited RAI Gusap -3.45 -3.11 -2.09 -1.69 -1.82 -2.05 -1.29 MBE Hagita 1.27 1.19 1.03 1.11 1.07 0.93 0.87 HOP Sangara, Sumberipa 0.81 0.76 0.77 0.79 0.74 0.67 0.53 Mamba POL Poliamba 1.10 1.07 1.05 1.11 1.12 0.82 0.58 GPP Tetere 0.40 0.53 0.53 0.76 0.69 0.73 0.61
Changes to methodology Group launched a major revision It is critical for our company Since 2010 we have been to the PalmGHG framework that and our ability to live up to measuring the product carbon significantly changed the way our commitments that we can footprint of CPO and PK previous land use is categorised monitor our GHG emissions. produced at our mills in Papua and the way sequestration and We have therefore decided to New Guinea and Solomon POME emissions are calculated. recalculate all our data using Islands, as well as that of The differences between PalmGHG version 3.0.1. While the refined products from PalmGHG versions 1 and 2 we strongly support the use our UK and PNG refineries. resulted in our plantation footprint of best available science and The lack of an industry-wide more than doubling due to the the constant improvement of reporting framework made it introduction of new previous land measurement tools, we hope necessary for us to develop use categories and accompanying that PalmGHG will not continue our own methodology. In 2012, increases in default values. to evolve in a manner that we adopted the RSPO-led Likewise, the changes in the makes tracking year-on-year PalmGHG version 1 to ensure crop sequestration model between comparisons and measuring that we could benchmark our PalmGHG versions 2 and 3 progress impossible. figures against peers. However, resulted in a net effect of in 2014 and subsequently in land use change of more than
2016, the RSPO GHG Working 91,000 MT CO2e, or 150%.
Protecting our planet – Integrated pest management
We have operated an Integrated Pest Management (IPM) system since 1998. The system follows generally accepted principles of field monitoring, cultural control practices, biological controls and the targeted use of pesticides to maintain pest damage below economic damage thresholds. Sustainability Report 2016/17 Sustainability Report 2016/17 The system is supported and updated through ongoing research 38 and development.
Biological controls Good agricultural practices are the first step in our IPM strategy, including ground cover management, the maintenance of nectar-producing plants and the use Our R&D team is continuously buildings. We keep a register of of high-quality planting materials reviewing and improving our use accidents and incidents of abuse to suppress pests and diseases. of biological controls through a or misuse of chemicals, and closely Manual weeding is undertaken long-term R&D programme. A wide monitor health effects and toxicity. around immature plantings to range of methods are being trialled, We have continuously reduced N ew Britain Palm O il Limited minimise the need for chemical including the mass rearing and our pesticide usage over the past application. distribution of native hymenoptera decade and, based on available egg parasitoids and stichotrema public data, we have one of the We train our field operators to to control sexava, baculovirus to lowest usage levels in the industry. recognise signs of pest and disease control orycytes, psyllid bugs to outbreaks in order to initiate suppress mimosa, and the gall fly We do not use bio-accumulative early control responses. Smaller to combat chromolaena. or persistent pesticides. In infestations of weeds or insect pests accordance with our commitment are limited through manual weeding Pesticides to the RSPO P&C and the latest or hand picking. Smallholder Access to pesticides is highly SAN pesticide management extension officers are also trained in restricted, and all hazardous requirements, we do not use the early detection and reporting of substances are stored in chemicals identified by the WHO potential outbreaks. designated custom-designed as Class 1A or 1B, or those listed on the Stockholm or Rotterdam Conventions and the FSC ‘Highly Pesticides currently allowed for use in our operations Hazardous’ list. We have also recently sought and gained the Adjuvants Herbicides approval from the RSPO to use • Propionic acid • Dicamba carbofuran (listed under WHO Class 1B) before using it to control • Alcohol alkoxylate • 2,4-D Amine an outbreak of Guam biotype • Alkyl polyoxyethylene • Fluazifop-P-butyl coconut rhinoceros beetle in • Glufosinate-ammonium Fungicides GPP. We do not use paraquat • Thiram • Glyphosate (N,N’-dimethyl-4,4’- bipyridinium • Thiabendazole • Metsulfuron methyl dichloride). • Diuron Insecticides • Triclopyr We phased out methamidophos in • Methamidophos • Fluroxpyr 2016 and substituted dimehypo, • Dimehypo a less toxic Class 3 chemical that Rodenticides • Imidacloprid has been trialled and shown to be • Flocoumafen • Carbofuran (GPP only) an effective alternative. • Cypermethrin • Brodifacoum Monitoring and reporting lifecycles, requiring longer-term to report on trends over time. We The use of pesticides is monitoring. At WNB, we now limit our reporting to herbicides monitored through monthly have 20 years of data, enabling due to their common usage in reports submitted by our estate tracking long-term trends and plantation management and offices. Group-level pesticide have noted a dramatic decrease because insecticides, rodenticides use, measured in toxicity units in toxicity units over time. This and other pesticides are used per hectare, is reported biennially trend is particularly linked to the infrequently and are targeted in our sustainability reports. phasing-out of paraquat, which and limited in accordance with Pesticide usage will typically vary we completed in 2012. For our the restrictions set out by the year-on-year in line with climatic other sites, systematic tracking RSPO P&C and the SAN List of Sustainability Report 2016/17 began later, and we will continue Prohibited Pesticides. conditions, pest levels and crop 39
Herbicide (toxicity units/ha) 626.1 533.8 506.4 495.0 471.1 456.4 391.98 384.7 332.79 326.9 302.7 289.8 269.6 N ew Britain Palm O il Limited 182.0
WNB RAI MBE HOP POL GPP Group
2016 2017
Herbicide toxicity West New Britain 1998-2017
3,000
2,500 2,300
2,000 2,060
1,500
1,333 Toxicity/ha 1,000
500 234 270
0 1998 2001 2005 2008 2011 2014 2017
Note: 2002 has been removed from the data series as the underlying data was incomplete. NBPOL phased out paraquat from 2010-2012. Protecting our planet – Protecting waterways and enhancing access to water
We use water from local rivers our water usage at mills and Where we apply mill effluent for and boreholes for mill processing, ensuring that any discharge soil nutrition in the field, we have as supply to housing and meets the highest standards. had no instances of biological offices, and for the irrigation of We are in the process of oxygen demand (BOD) levels our nurseries. Although there establishing a baseline for above the legally required 5,000 is no water shortage in any of water use efficiency, and will ppm (which will be reduced to the landscapes in which we be developing targets once this 4,000 ppm from 2018). operate, we are still monitoring work is complete. Sustainability Report 2016/17 Sustainability Report 2016/17 BOD reading of discharged effluent incidents exceeding target 40 NBPOL Sites Target Limit 2014 2015 2016 2017 WNB (4 sites) 90 ppm 16 5 1 6 WNB (1 site) 20 ppm 0 0 1 1 RAI 4000 ppm 0 0 0 0 MBE 4000 ppm 0 0 0 0 HOP 4000 ppm 0 0 0 0 POL 90 ppm 0 0 0 0 GPP 90 ppm No discharge No discharge 0 0 N ew Britain Palm O il Limited Total 16 5 2 7
Our mills use water and steam Water usage m3/MT FFB processed to process fresh fruit bunches 1.8 (FFB) and we work continually to 1.6 eliminate water waste and spillage 1.4 in these processes. We are 1.2 pleased to report that all of 1.0 our mills have reduced water 0.8 usage to less than 1.5 m3 per 0.6 tonne of FFB processed, and that 0.4 five of our six sites have achieved 0.2 0 significant reductions in water usage over the past five years. 2013 2014 2015 2016 2017 WNB 1.28 0.81 0.82 0.86 0.83
RAI 1.68 1.09 1.08 0.95 0.73
MBE 1.24 1.21 1.22 1.38 1.38
HOP 0.78 0.61 0.61 0.62 0.65
POL 1.03 1.25 1.33 1.21 0.72
GPP 1.15 1.18 1.17 1.08 1.04 In order to improve the treatment of POME we have starting using Geotubes®. These devices are essentially large bags made up of semi-permeable textile through which POME is pumped. The textile retains the solids while the liquids are pumped back into the pond system for further digestion. This process Sustainability Report 2016/17 serves various beneficial functions and replaces the 41 conventional means of desilting our ponds with a much more cost-effective methodology. The desilting itself improves the digestion of POME by increasing retention time of POME in our pond system. The removal of solids in general improves the overall quality of the POME before final treatment. Finally, the removed solids themselves prove to be a very rich organic N ew Britain Palm O il Limited fertiliser which we have found to be very useful in our nursery and gardens. This system is being steadily rolled out to all of our mill effluent ponds and show encouraging results in lowered BOD and solids.
Access to water for communities PNG faces significant water challenges. It is known that communities have limited access including primary and secondary to clean water and an estimated teachers from public and private 60% of the population do not schools, corporate volunteers, have a safe water supply. To government officials and NGO address these issues, NBPOL representatives – participated in contributes to improving local a two-day workshop to learn new of water is rainwater collected at infrastructure, such as through methods for teaching children from bottom of sago palm trees the construction of wells. We about water using an education more than an hour’s walk away. also help educate the general module customised for Papua In response to this situation, public on the importance of New Guinea. The programme has NBPOL is partnering with protecting our waterways. In initially rolled out across WNB, Nestlé and TFT to provide safe 2017, we partnered with Project and our long-term plan is to scale and reliable access to drinking WET, a US-based organisation up the programme in the other water for these communities. that provides water education four provinces we operate in. The project will fund water resources and expertise on the infrastructure projects in dozens most pressing water challenges. For villages in the vicinity of our of villages where access to Some 20 local educators – HOP operations, the main source drinking water is scarce. Supporting livelihoods – Partnerships with communities and smallholders
Community relations at our plot by two hectares. Such as FFB quality, cover crops, operations go far beyond requirements are blocking the fertilisers, costing and pricing philanthropy. Local communities entry of poor rural landowners formulae. These activities are own most of the land we plant into a responsible supply carried out during field days, on through customary rights, chain. To address these block demos, and through our and we work in close partnership issues, we are in some cases financial literacy training sessions to ensure that everyone in the carrying out assessments for held in consultation with our community benefits from our smallholders that are interested partners. Our community training activities. Smallholders are also in developing land and then programmes also ensure farmers Sustainability Report 2016/17 Sustainability Report 2016/17 among our most important guiding them through the are kept up to date on current stakeholders. They provide RSPO NPP. Looking forward, sustainability issues, such 42 25% of our annual FFB, and we will explore an approach as proper land use planning, we believe that we get the best that simplifies industry management committee results by empowering and standards for smallholders. responsibilities and community supporting them. needs assessments. This equips Despite this smallholder them to plan effectively for NBPOL’s philosophy has been dilemma, we actively share development and expenditures to introduce palm oil cultivation best practices to motivate from income generated through in PNG to drive local economic farmers to obtain basic skills mini-estate palm oil businesses. development, providing and knowledge for proper technical and market support management of their oil We also provide interest-free to the rural poor through our palm blocks. We promote credit to smallholders for their nucleus estates in the name of sustainable growth using visual farm inputs – for example N ew Britain Palm O il Limited economic inclusion. However, aids and provide simplified tools and fertilisers – and have we have been facing difficulties awareness tools to guide outstanding credit in 2017 of in adding any smallholders to smallholders on topics such around PGK 18.55 million. our supply chain since 2015. This is due to barriers created by certification standards for assessments, which currently require smallholders to undertake the same process as proposed large-scale conversions – even if they just want to expand their 43 New Britain Palm Oil Limited Sustainability Report 2016/17 Supporting livelihoods – Partnerships with communities and smallholders
Sharing the sustainability GreenPalm certificates. Since we equivalents, and are paid to each premium achieved full certification, and are smallholder on the basis of their All smallholders selling fruit to our able to sell oil as segregated, we production with no administrative mills have been RSPO certified now calculate premiums based on or other deductions. NBPOL since 2012 and they receive a the more substantial direct RSPO covers all smallholder certification significant sustainability premium. premiums. These are received on costs and these are not charged Originally, we paid out a premium the sale of certified sustainable back to the growers. corresponding to the value of palm oil (CSPO) converted to FFB Sustainability Report 2016/17 Sustainability Report 2016/17 Smallholder premium/MT FFB (PGK) 44 14.00 13.87 11.74 12.00
10.00
8.00 6.88 8.44 5.89 6.00 5.33
4.00 4.51 N ew Britain Palm O il Limited 4.01
2.00
0 2010 2011 2012 2013 2014 2015 2016 2017
Note: Not all sites were certified from 2010 to 2013. The figures for these years are calculated as the average premium to certified smallholders. From 2014, all smallholders across all PNG sites were paid a uniform premium.
Engagement with expansion. After verification, the documents by several layers landowners associated communities are made of local, provincial and national fully aware of the pros and cons governments before a title can Free, Prior and Informed of the potential project. Given the be issued. Our teams support Consent (FPIC) sentiment of the communities, the and strengthen this process by Without the FPIC of landowners, awareness phase will continue providing genealogical mapping we would not be able to sustain while the subsequent stage of using the latest available software our operations. We are very land registration is embarked so as to ensure that our land much involved in ensuring that upon. Land registration is a legally dealings are secure and ongoing due process takes place and mandated process that allows historical records are maintained. is truly representative of the clans owning communal land to The whole process takes at least rightful customary land owners, register and title their land so as two years prior to a single palm as PNG and Solomon Islands to sublease all or portions of it being planted and can be halted at recognise customary land rights to developers in a joint venture any time due to the reconsideration within their constitutions. In partnership. This is an extremely of the land owners or the existence accordance with our management thorough process that involves of internal disputes. guidelines, NBPOL does not the preparation and review of solicit expressions of interest for investigation reports and vetting and food security, comprises the integrated land use plan. This plan forms the foundation of subsequent agreements of land leases and rules of land use, and remains a dynamic document that may change to accommodate community needs.
Each site has a Lands Department Sustainability Report 2016/17 with specialist officers who address landowner requests and queries 45 and resolve any disputes. Since 2015, we have carried out FPIC and community engagement and participatory processes at HOP, RAI, and GPP, and have supported these with other environmental and social assessments. Land tenure at these sites is either under customary ownership or mixed, with the majority being community- owned while a small proportion is registered. Concurrent to the N ew Britain Palm O il Limited HCV and HCS assessments, other procedures are woven into the process, including the registration of the Incorporated Landowner Groups (ILGs) and preliminary participatory mapping to develop land use plans at each site. Communities are also kept informed about the One Hour Principle (access to potable water, medical health post and primary school within one hour’s walk), which guides NBPOL’s approach to rural development (access our Land use planning areas that the communities have Forest Policy at www.nbpol.com. We conduct extensive land identified as being important to pg for further details). use planning throughout the them for living space and food development phase to ensure that security. For this we calculate proposed NBPOL oil palm projects that the communities need to set do not displace communities or aside at least 0.5 hectares per put their food security at risk. person over the entire lease period, After mapping land ownership taking into account population boundaries, community members growth using the national average are invited to delineate land uses of 3.1% since the last census onto posters printed with satellite period. These areas are then imagery of their land holdings. enclaved from the conversion The entire community attends and are not subleased to NBPOL. these meetings and they are The resulting land use map, provided with ample time to reflect including areas to be subleased on their designation of land to to NBPOL (as well as conversion conversion. Areas excluded from and conservation areas), and the development also include areas enclaved for living space Supporting livelihoods – Partnerships with communities and smallholders Sustainability Report 2016/17 Sustainability Report 2016/17
46 Safeguarding customary rights We are committed to safeguarding community lands and ownership. The PNG Government is currently implementing a new legislative and administrative system of Voluntary Customary Land Registration (VCLR) to better protect landowners’ customary rights. This is in response to widespread 67.7 hectares of land that While we are satisfied by concern about administration of was legally leased to MBE the court’s findings, we N ew Britain Palm O il Limited Special Agricultural and Business by the provincial government have remained mindful of Leases (SABLs), which have more than two decades the complexity surrounding caused significant controversy ago. A 1992 Memorandum historical customary rights in since they were introduced due of Understanding (MOU) the areas we operate, and have to the potential for wrongful signed by the landowners, the made every effort to respect suspension of customary rights in provincial government, MBE the needs and concerns of some cases. NBPOL is working and the Lands Department the traditional landowners closely with the PNG Government suggested that insufficient throughout the process. We in the transition to the new VCLR claims had been made to the have taken steps to ensure system. All new NBPOL oil palm landowners, and promised to they receive their just claims developments on customary reassess any compensation from the government. We have lands will now utilise VCLR, and due, however neither the supported the landowners by NBPOL has committed to work provincial government nor providing transportation funds with customary landowners and the Lands Department took for them to attend meetings, the PNG Government to convert proportionate action over the and continue to assist them with existing SABL land titles to VCLR. following years. Following a their claims. We also initiated joint meeting with all parties in an environmental impact In October 2017, a court order February 2017, during which assessment (EIA) and addressed confirmed that NBPOL is the NBPOL’s rightful ownership of immediate concerns raised by title holder with exclusive rights the land was confirmed, we the Gulubwai Daidai Clan over to Sagarai in Milne Bay, PNG. agreed to halt operations as a gravesite within a plantation, This concludes a disagreement a precautionary measure until taking corrective action to between NBPOL and the further site investigations had preserve the site and relocate traditional landowners over been undertaken. 12 palms. Financial literacy training for smallholders and landowner groups NBPOL has established a ‘train the trainer’ programme across five of our estates to empower smallholders and landowner groups. In the past, the programme has covered practical issues, such as intercropping Sustainability Report 2016/17 and good agricultural practices. 47 For 2017, we shifted the focus towards improved management and capacity building. We have also made financial literacy manuals available in both English and Pidgin. To date more than 1,000 growers, employees and dependents have received financial literacy training in WNB alone. The training covers topics such as budgeting, planning finances, good financial practices and banking. We also facilitate N ew Britain Palm O il Limited the opening of personal bank accounts for interested ILG members.
For more information on how NBPOL caters financial and capacity building programmes for women, see page 51. Supporting livelihoods – Partnerships with communities and smallholders
Community development with basic facilities, infrastructure levels, sites also develop local Beyond our commercial and support to address some of programmes for employees and relationships, we also want to these challenges. their dependants. Since 2016, we contribute to the development have started to organise Social of the wider community and to We established the New Britain Management Plans to address broader national development Palm Oil Foundation in 1997 as a social issues and enhance social goals. Papua New Guinea means to structure our community wellbeing within our operations. and Solomon Islands are both investment programmes. In 2014, These plans have four main ranked low on the UN Human the Foundation adopted the One components: safe and harmonious Sustainability Report 2016/17 Sustainability Report 2016/17 Development Index (154 and 156 Hour Principle Partnership and communities, education and its three pillars: access to water, literacy programmes for all, 48 respectively), which measures basic needs such as primary health and primary education – all healthy lifestyle, and spiritual education, child mortality and within one hour’s walk. (For more wellbeing. We have initiated these access to potable water. We see information about our access to management plans in WNB with this as an important opportunity: water initiatives, see page 41). an aim to rolling them out at our operating in remote rural areas other sites. means we are often best placed In addition to the activities carried to assist in providing communities out at Group and Foundation
N ew Britain Palm O il Limited Sustainability Report 2016/17 Sustainability Report 2016/17
49 N ew Britain Palm O il Limited
schools in WNB and more than Education assistance programmes 1,000 to schools across the are rolled out in partnership Guadalcanal plains. with local communities and Education and literacy ILGs. In RAI, the As Ples programmes We also ensure children have Scholarship programme issued 38 Reading books and textbooks access to good educational scholarships to deserving students have been continuously facilities. For instance, elementary in 2017. We also engage with distributed to secondary, classrooms have been relevant government authorities technical, primary and elementary established on all plantations on behalf of 16 schools that have schools across our sites since with Prep, Year 1 and Year 2 not yet received school codes 2012. The books are transported classes enrolled. Classrooms to ensure that all schools within in from schools and libraries in are equipped with computers 10km are registered to receive Australia. To date, a total of 2,431 and furnishings such as chairs government funding. Sporting books have been distributed and desks. Housing for teachers events are regularly organised for to primary and high schools in is provided for under tax credit children to participate in. New Ireland, more than 1,000 to scheme projects. Supporting livelihoods – Partnerships with communities and smallholders
Employees’ social welfare employees and their dependants In September 2017, a Food We place great emphasis on are benefitting from an increased Security Action Plan Consultation providing employees and their sense of ownership and Workshop was conducted in Milne dependants with tools and space productivity that has improved Bay Province. The workshop for gardening. Designated areas their overall welfare. brought together key government have been allocated to all staff on officials, NGOs and private sector plantation sites, and market places We also host group programmes representatives to jointly review are being provided to sell their for workers and their dependants. the National Food Security Policy produce. Fish ponds and chicken In 2017, 135 workers attended the 2017–2027, including its Action Sustainability Report 2016/17 Sustainability Report 2016/17 farms are also encouraged for Garu Plantation Social Awareness Plan. One of the key outcomes of Programme to learn about the this meeting will be the ongoing 50 employees and their families to increase the availability of fresh RSPO Principles & Criteria, identification and alignment of food and facilitate healthy diets environmental issues, law and all relevant food security actions in the community. Feedback order, safety in the workplace and and programmes at provincial and about the initiative indicates that family planning. district levels. N ew Britain Palm O il Limited Sustainability Report 2016/17 Sustainability Report 2016/17
51
Programmes for women programmes for women decorative items out of rubbish N ew Britain Palm O il Limited NBPOL has continued to develop throughout the community, and for the marketplace, catering and implement initiatives that we have now made it compulsory and pastry-training for women empower women in PNG and for all participants to undertake in GPP, sewing programmes in Solomon Islands to contribute to one day of financial literacy GPP and other sites, as well as their own welfare. training for any income-generating entrepreneurship training. We course they participate in. Related partner with groups such as Bank The Mama Loose Fruit scheme initiatives include the Chicken South Pacific, World Bank and the was set up in 1997 to ensure Revolving Fund, which enables International Labour Organization that women benefit from their Mama Card holders to raise and (ILO) to carry out these initiatives. families’ oil palm blocks. The sell chickens as an additional New programmes for women will project involved the introduction means of income. The group be launched in 2018 across the of the Mama Card, which enables also raises money through grants Group covering topics such as women (workers, including and donations that go towards floriculture, baking and climate smallholders, and dependants) facilities to help women generate change adaptation focused on to be paid directly for their income. food crops. work. The scheme was trialled in a group of 10 women, and At each site we develop We also place great emphasis there are now more than 6,000 programmes that empower on empowering the women of Mama Card holders who are women in the community to use PNG and Solomon Islands by benefitting from additional income the resources available in their instilling them with confidence and directly contributing to the natural surroundings to generate and leadership skills (more welfare of their families. As part income. These include craft-waste information can be found on our of the Mama Loose Fruit initiative, recycling programmes in Milne empowerment programmes for trainers organise empowerment Bay that create valuable home and women on page 59). Supporting livelihoods – A fair place to work
Our almost 23,000 employees are the backbone of our operations. We are the largest private employer in PNG and contribute significantly to employment in Solomon Islands. With such a large footprint among the communities in which we operate, we want to uphold Sustainability Report 2016/17 Sustainability Report 2016/17 the highest standards for fair and safe workplace practices. 52 We support the ILO core labour standards, which are embedded in both the RSPO P&C and our Human Rights Policy.
N ew Britain Palm O il Limited Employees by level Field workers by contract type
915 1,481 1,191 765 680
16,149 16,605 14,953 15,769 14,979
Management and executives 539 (2%) 2013 2014 2015 2016 2017 Junior staff 2,609 (12%) Workers 19,614 (86%) Permanent workers (includes all manual Seasonal workers workers and junior field staff)
Our employees access to the same benefits as accommodation and other Our employees are predominantly permanent workers. facilities. It offers the first local, with less than 1% coming executive level of training and from outside our countries of We established the NBPOL focuses on their tasks, roles operation. Our largest employee Management Training Academy and responsibilities. Training groups are field and mill workers, in 2017 to nurture and develop also covers palm oil production, and around 95% of these are the leadership competency of including nursery upkeep, on permanent contracts. We our staff so they may become development, harvesting, employ a small group of seasonal managers in their respective mill processes, sustainability, labourers for special projects sections. The Academy has a transport, logistics and other and in the high season. Seasonal training administration office, relevant disciplines. workers are housed and given two classrooms, a library, A fair pay structure discount the value of the non- Child labour and bonded Almost all of our employees cash employee benefits from labour are remunerated through a the national minimum wage rate. New Britain Palm Oil has a strict combination of wages, housing, Following application to the policy to prevent child labour and utilities, medical care, schooling Government for partial payment will not employ anyone under and transport. Our lowest wage allowance, along with all other the age of 16. The minimum age for Grade 1 unskilled workers has agricultural employers, the partial for workers in PNG is 16 years for decades been significantly payment review committee old and the company goes to above the national minimum awarded NBPOL a concession great lengths to verify the age wage. In 2014 and 2015, the based on an analysis of non- of all employees, checking birth Sustainability Report 2016/17 cash benefits provided to its Government of PNG increased certificates, school and church 53 the minimum wage by over 40%. employees. records, ID cards from previous The Government recognises, employment, driving licenses and however, that in rural industries an In 2017, the take-home pay of statutory declarations. All potential employee’s remuneration package our lowest wage earners was employees undergo a mandatory comprises of a significant non- PGK 2.77 per hour. When the medical examination before cash component, as for NBPOL value of housing and other commencing employment. employees as outlined above. In benefits is included, this effective light of this, the Government has pay is PGK 4.88 per hour, 27% It is not unusual for children to made partial payment provisions higher than the mandatory work on smallholder farms, picking for agricultural employers to national minimum wage. loose fruit or weeding to support their family. Through our ongoing engagement with smallholders, Composition of NBPOL’s minimum wage (2017: PGK 4.88/Hr) we seek to raise awareness about N ew Britain Palm O il Limited potential hazards for children and the need for them to attend Housing 0.86 school. Reminders about our Power/Kerosene 0.49 child labour policies are regularly Others 0.76 communicated via field visits, radio programme broadcasts Water 0.02 and through social media activity Medical 0.18 targeting women. Transport 0.14 School 0.04 We also uphold a complete ban on any form of coerced labour Security 0.37 practice. We do not require bonds, Refuse 0.01 deposits or the withholding of Wages 2.77 travel documents for any of our workers. Supporting livelihoods – A fair place to work
Freedom of association and one was related to an alleged NBPOL fully supports women All NBPOL employees are sexual assault in the workplace. taking on careers traditionally free to form and join unions of dominated by men, such as tractor their choosing. Around 16% Non-discrimination operators. This gender equality is of our employees across all We operate on the basis of equal appreciated by men and serves as of our sites are members of opportunities and our employees encouragement to other women independent unions. There receive the same pay and benefits across our operations. were 10 incidences of work regardless of gender. Around 20% stoppages in 2016 and four in of our employees are women and Sustainability Report 2016/17 Sustainability Report 2016/17 2017. Most work stoppages all sites have established gender committees to ensure that issues 54 were due to disputes over pay and terminations, while two of particular concern for women were due to security issues are raised and addressed.
Percentage of female employees 53.8% N ew Britain Palm O il Limited 46.7% 43.8% 41.7% 40.2% 37.5% 35.5% 35.3% 32.5% 32.4% 30.6% 30.6% 28.6% 28.4% 27.0% 26.8% 26.6% 26.3% 25.5% 25.1% 25.0% 24.7% 24.1% 23.6% 23.3% 23.1% 21.9% 21.7% 21.5% 21.5% 20.9% 20.0% 20.4% 20.1% 20.0% 19.6% 19.4% 18.8% 18.8% 17.5% 17.2% 16.9% 16.7% 15.8% 14.1% 11.4% 10.5%
Group WNB RAI MBE HOP POL GPP Port Singapore UK Moresby 2013 2014 2015 2016 2017 Promoting health and safety for workers and communities
A safe workplace Since the beginning of 2016 there has been concentrated effort by all our employees to make our workplaces safer. Since our last report, we have cut our average lost time accident (LTA) rate by 58% to 33 LTAs per million working hours. Sustainability Report 2016/17 Sustainability Report 2016/17
A big part of our ability to 55 drastically reduce LTAs over the two year period has been an increased emphasis on hazard identification and near-miss reporting. Through these forms of proactive reporting, incident prevention has become a however positive results to make hazard identification reality. It is still early days and have been achieved. Plans and near-miss reporting easier there is further improvement are also in place to create an and more accessible for all and momentum to be gained, information system platform employees.
Lost time accident rate (per 1,000,000 working hours) N ew Britain Palm O il Limited 159 143 122 92 89 90 45 84 80 76 71 61 58 48 45 42 38 37 36 31 30 30 26 20 21 21 18 15 11 5 8 6 4 3 3
WNB RAI MBE HOP POL GPP UK
2013 2014 2015 2016 2017
Note: In previous reports, we reported on accidents per 200,000 working hours. All figures have been adjusted to align to one million working hours. Supporting livelihoods – Promoting health and safety for workers and communities
Group lost time accident rate (per 1,000,000 working hours) The vast majority of accidents are minor injuries such as cuts 100 and palm nail injuries, resulting in 90 79 relatively short periods of 75 80 68 lost time for most incidents. 70 59 60 Throughout our operations we 50 are inculcating a new approach 40 33 to safety in the workplace with Sustainability Report 2016/17 Sustainability Report 2016/17 30 our slogan “Safety is Everybody’s 20 56 Responsibility”. In early 2016, to 10 support this new approach, we 0 conducted a two-week programme 2013 2014 2015 2016 2017 across 15 plantations, mills and departments. Over the two weeks, 329 safety climate surveys were conducted to better comprehend Severity rate (Average lost days per accident) the level of safety understanding among our employees, and behavioural safety training was 2.53 2.46 2.33 2.40 provided. We continuously provide 2.11 safety training for all our employees and ensure they are equipped with N ew Britain Palm O il Limited first aid kits. We conducted almost 3,000 health and safety training and awareness sessions for employees across our sites in 2017.
Fatalities 2013 2014 2015 2016 2017 We are saddened to report that five fatalities occurred in our operations during 2016 and 2017. Three incidents involved the use of machinery and vehicles, one Fatalities involved a collapsing concrete wall, and one involved a fall from a tree.
On the afternoon of 9 January 2017, an FFB truck operated by Higaturu Oil Palms was involved in a road 1 1 traffic accident with a local public motor vehicle on the main Oro Bay 4 to Kokoda highway in Oro Province. 1 1 1 The accident tragically took the lives of 13 people and a further 12 people were injured. Higaturu Oil Palms 1 1 1 1 personnel cooperated fully with police investigations and provided 2013 2014 2015 2016 2017 broad ranging support to families of those affected. We are unable at this WNB RAI MBE HOP POL GPP time to provide further comment as the matter is still under investigation by the relevant authorities. Sustainability Report 2016/17 Sustainability Report 2016/17
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Supporting community to dependants. In 2016, just more than 250 participants have health over 1,000 community members been trained. N ew Britain Palm O il Limited There is no functioning public received sabin polio vaccines. healthcare available in many of Sites also provide access to Alongside our ongoing awareness our communities. Our clinics and eye testing and prescription programmes on hygiene, we aid-posts are therefore vital for eyewear. In partnership with also facilitate student visits from ensuring that employees, their the Hepatitis-B Free Team in nursing schools to assess the families and the wider community Higaturu, our clinics facilitate living standards of employees have access to a reasonable level improved health care through and surrounding community of healthcare. Every plantation Hepatitis B vaccines to isolated members. Students offer has a clinic on site, including communities in the area. We guidance on healthy lifestyles, our mills, where employees and also facilitate and host other food security, and water and dependants can get a check-up organisations’ programmes sanitisation. Our Days for and receive treatment. Supported to raise funds and provide Girls programme in Poliamba by the NBPOL Foundation, aid healthcare in our communities. periodically hosts programmes posts are also set up centrally in aimed at educating and remote areas to ensure access A number of our health outreach supporting young women in New for multiple communities. In efforts are geared towards Ireland Province with information 2017, the NBPOL Foundation raising community awareness and advice on hygiene, health also pledged to donate PGK on hygiene and sanitation. All and education. 500,000 annually to the Youth sites partner with the Provincial with a Mission (YWAM) medical Health Department at some A key focus area over the past ship over the next four years in level to organise activities. In two years has been to clean support of community health WNB, for example, targeted up community areas and raise outreach. training sessions are held on awareness on proper waste food handling, food preparation, disposal. These activities are Our clinics provide both kitchen and cutlery storage, clean carried out either weekly or emergency assistance and a homes and personal hygiene. monthly and rely heavily on broad range of general services. Sessions also cover the causes of community participation. We dispensed 740 immunisations common illnesses and diseases in 2017, of which 710 were given in tropical countries. To date, Supporting livelihoods – Promoting health and safety for workers and communities
Women and children been donated to the local hospital We place special focus on to provide women with better ensuring women and children have access to screening to ensure the adequate access to healthcare earlier detection of breast cancer. services across our sites. In WNB for example, immunisation As part of the GPP’s social programmes are available for procedure we also conduct children aged one month to five rehabilitation programmes for years at each plantation clinic, and young adults and rebellious teens Sustainability Report 2016/17 Sustainability Report 2016/17 two doctors are on call at all times in our communities. Young people to provide thorough check-ups and involved in social issues are 58 referrals to hospitals. usually called in to the site office with their parents for consultation NBPOL also provides family and disciplinary action. They are planning programmes linked to guided to take part in community Spacim Pikinini (family planning) service cleaning programmes, as that are now underway in West well as unique programmes to New Britain, Higaturu and Milne upgrade their talents such as being Bay. In 2016, volunteers from ultrasound scanners and hospital trained in dance skills by hired Milne Bay and the Provincial supplies, and for renovations of choreographers. These teenagers Health Authority in WNB partnered outpatient department clinics. In also participate in informative with the Rotary Club to roll out a WNB, the Women Empowering role plays, where they act out contraceptive implant programme. Women (WEW) initiative has situations on how to address social N ew Britain Palm O il Limited The week-long programme recently raised funds for problems. These measures are provided advice on family planning mammography equipment that has usually well received by the youth. and contraceptive implants to more than 1,000 women. Almost 400 people enrolled for family planning at our clinics across all sites in 2017, an increase of 100 people from the previous year.
Women’s groups from our sites have also taken their own initiatives out into the surrounding communities to address health concerns. The WNB Women Cancer Awareness and Fundraising Committee periodically hosts events, raises funds and assists NGOs and community-based organisations in the province. In 2016, the Committee raised donations for the Wantok Health Foundation to conduct free Pap smear screenings and other health-related activities within the province. NBPOL officers work closely with the Foundation to make sure that all women, including workers and dependants, have access to screening.
Other women’s groups have raised funds for maternity ward renovations, the purchase of Sustainability Report 2016/17 Sustainability Report 2016/17
59
Outreach on domestic violence in their villages. All which provides insights and violence and women’s cases of domestic violence and recommendations to the BCFW relating to its programmes and empowerment child abuse are referred to our N ew Britain Palm O il Limited We recognise that protecting Community Policing & Welfare activities within PNG. Two of our female employees and section and support services are the most successful initiatives their families against domestic made available across all sites developed by the Working violence and harassment is an to address all domestic violence Group have been the Gender immediate priority. Domestic cases. External consultants have Smart Safety Toolkit and the violence is one of the biggest started to train our personnel on Gender Smart Audit, and NBPOL issues facing women in PNG and peer counselling to better provide has been the first player from we are committed to combatting on-site support for women the agriculture sector to get such abuse in all its forms. There associated with our sites. WNB’s involved. The Gender Smart were 356 domestic violence WEW Committee Secretary Safety workshop hosted in June cases reported in 2017. and company lawyer provide 2016 included the development legal advice to all women, men of audit reporting templates, All our sites have domestic and families that register cases measures and KPIs that will be violence policies and undertake through WEW. used for each of the companies, extensive awareness activities as well as a Draft Minimum to ensure that employees and Established in December 2011 Standards for women’s safety in dependants understand our zero in West New Britain, WEW is the workplace. We are currently tolerance policy and know how a registered member of the raising awareness and building to report violations. We also Business Coalition for Women capacity among our staff and reach out to our communities (BCFW). NBPOL is active management around measuring to encourage them to work member of the Against Violence targets and we are including this together to prevent and minimise Working Group of the BCFW, in our KPIs. Supporting livelihoods – Promoting health and safety for workers and communities
The strength of the WEW Community security carry licensed weapons, which Association in WNB is also Although we have a strict no are always concealed. replicated across our operations, violence policy and provide with each site having its own a high level of security and Our security departments work women’s groups. In Milne Bay, ongoing training of security in close collaboration with our a ten-day women’s leadership officers, violent incidents Sustainability teams to identify training course was organised continue to occur at some sites. potential threats and resolve for women employees and issues before they arise through dependants at the end of 2017. To address security concerns, good community relations and Sustainability Report 2016/17 Sustainability Report 2016/17 The purpose of the initiative was each of our plantations has a participatory conflict resolution to strengthen the participants’ process. Our grievance 60 a security department led by leadership skills so they can experienced local experts. procedure is also instrumental better represent the groups they All security departments are in ensuring that grievances are work with. By providing tools adequately resourced and addressed in a timely manner and a platform to work together, officers selected from are before they escalate. such initiatives will continue among internal personnel or empowering women in and outsourced to local security around our operations to address companies with long-standing the issues they face in the presence in PNG. Only a small workplace and in the community. percentage of our security staff N ew Britain Palm O il Limited Being transparent – Base data and notes
Category/ Measurement indicator unit/breakdown 2017 2016 2015 2014 2013
Employees Total number Full time 22,762 24,204 22,794 25,432 25,077 of employees equivalents WNB 10,251 10,601 10,210 10,571 10,365
RAI 3,644 4,090 3,529 3,825 3,554 Sustainability Report 2016/17 MBE 2,555 3,105 3,029 3,347 2,999 61 HOP 2,833 2,865 2,653 3,639 3,729 POL 1,946 2,013 1,902 2,458 2,974 GPP 1,435 1,434 1,380 1,508 1,377
Port Moresby 5 4 0 0 0 Singapore 13 15 16 17 16 UK 80 77 75 67 63 Female Group 4,945 4,939 5,730 5,915 6,047 employees WNB 2,203 2,279 2,739 2,816 2,252
RAI 716 465 496 403 1,088 N ew Britain Palm O il Limited MBE 495 624 771 791 657 HOP 488 540 614 576 622 POL 511 571 513 703 963 GPP 509 439 575 606 448 Port Moresby 1 1 0 0 0 Singapore 7 7 7 6 6 UK 15 13 15 14 11 Female Group 77 71 68 60 63 employees – Management WNB 28 27 26 24 23 RAI 16 12 13 11 11 MBE 6 7 6 5 4 HOP 12 11 6 6 10 POL 6 6 6 5 7 GPP 5 5 3 2 4 Port Moresby 0 0 0 0 0 Singapore 2 2 7 6 3 UK 2 1 1 1 1 Being transparent – Base data and notes
Employees Total Group 539 544 532 500 440 management (expats & WNB 218 226 224 214 210 national) RAI 110 103 102 93 90 MBE 52 58 58 57 55 HOP 71 68 67 62 8
Sustainability Report 2016/17 Sustainability Report 2016/17 POL 35 36 37 36 36 62 GPP 31 30 25 27 28 Port Moresby 3 3 0 0 0 Singapore 10 12 13 5 7 UK 9 8 6 6 6 Employee WNB 48.30 46.57 60.00 60.00 14.85 turnover (%) RAI 59.35 34.94 39.82 47.76 49.07 MBE 71.33 50.04 63.96 65.08 17.17 HOP 18.35 31.51 58.33 11.81 8.70 POL 29.36 32.43 27.52 48.23 39.10 N ew Britain Palm O il Limited GPP 64.76 67.09 82.96 95.56 73.82 Singapore 8.00 0.00 50.00 0.00 27.03 UK (Management 11 | 0 23 | 8 13 | 6 9 | 4 17 | 8 & staff | Manual workers) Health and safety Lost time WNB 37 90 122 143 159 accident rate – RAI 45 80 48 45 61 total number of accidents per MBE 11 6 4 3 3 employee per HOP 30 38 26 21 15 1,000,000 working hours POL 36 58 71 42 31
GPP 18 89 92 76 84 Sustainability Report 2016/17 UK 5 30 20 21 8 63 Severity rate – Group 2.40 2.11 2.46 2.33 2.53 Average number (excluding UK) of lost days per accident Fatalities Number 2 3 4 1 3 Lost work WNB 73 172 329 322 350 day rate – RAI 140 191 157 147 185 total number of lost days per MBE 97 77 113 50 18 employees due HOP 72 72 59 47 29
to accidents per N ew Britain Palm O il Limited 1,000,000 POL 110 105 171 87 48 working hours GPP 23 122 160 88 110
Training Total training WNB 2.8 3.1 1.2 0.9 3.5 cost (% of payroll RAI 2.0 2.0 2.1 2.5 2.0 (USD)) MBE 2.8 3.0 2.5 2.1 1.6 HOP 3.0 3.0 2.0 2.0 2.0 POL 2.3 1.3 1.0 0.8 0.7 GPP 1.1 0.5 0.9 1.1 2.1 UK 1.4 1.6 1.9 1.3 1.2 Being transparent – Base data and notes
Land Hectares Group – titled 139,958 138,194 136,268 135,204 134,611 Group – oil palm 86,829 85,239 83,178 81,563 79,884 WNB – titled 53,551 53,897 53,610 53,610 53,610 WNB – oil palm 39,143 38,505 37,451 36,985 36,948 RAI – titled 35,003 35,004 34,032 33,962 33,962
Sustainability Report 2016/17 Sustainability Report 2016/17 RAI – oil palm 14,136 13,491 12,941 12,434 11,490 64 MBE – titled 20,300 19,013 19,013 19,013 19,013 MBE – oil palm 10,746 10,825 10,895 10,968 10,730 HOP – titled 14,881 14,069 13,279 12,805 12,364 HOP – oil palm 10,548 10,090 9,564 9,228 8,819 POL - titled 7,908 7,908 8,030 7,922 7,922 POL – oil palm 5,492 5,564 5,601 5,665 5,623 GPP – titled 8,315 8,304 8,304 7,892 7,740 GPP – oil palm 6,765 6,764 6,727 6,283 6,274 Area set aside Group 19,611 19,326 16,471 16,471 14,798
N ew Britain Palm O il Limited for conservation WNB 7,971 9,172 9,173 9,173 9,478 (Hectares) RAI 3,686 3,686 3,500 3,500 254 MBE 2,450 2,450 1,039 1,039 1,940 HOP 2,586 1,656 1,500 1,500 2,905 POL 1,811 1,255 470 470 219 GPP 1,107 1,107 789 789 2 Peat developed Hectares 0 0 0 0 0 Production Fruit processed WNB 1,281,919 1,182,673 1,256,795 1,303,516 1,176,249 (MT) RAI 239,634 172,984 187,906 180,520 145,552 MBE 239,086 214,113 232,784 234,020 199,704 HOP 366,235 365,574 339,504 351,747 299,406 POL 83,701 78,277 101,096 112,362 121,684
GPP 147,207 150,394 151,502 149,591 143,076 Sustainability Report 2016/17 Crude palm oil WNB 290,785 264,290 275,809 289,531 258,534 65 (CPO) (MT) RAI 58,474 42,536 44,731 44,404 35,673 MBE 56,907 50,779 52,648 53,225 45,280 HOP 83,458 83,105 75,354 77,958 65,479 POL 18,144 16,353 19,471 22,334 24,939 GPP 35,089 36,407 34,919 33,752 32,154 Palm kernel oil WNB 31,843 30,285 30,219 29,484 26,239 (PKO) (MT) RAI 4,995 3,305 3,727 3,516 2,544 MBE 5,117 4,878 5,806 5,727 4,648 N ew Britain Palm O il Limited HOP 9,105 9,159 8,453 8,438 6,533 POL 1,745 1,633 2,209 2,409 2,659 GPP 3,491 3,616 3,614 3,347 3,173 Being transparent – Base data and notes
Smallholders Smallholder Hectares 41,216 41,152 42,497 47,396 46,202 hectares Smallholder Number 17,324 17,325 17,602 17,621 16,121 blocks Smallholder WNB 413,510 369,755 389,076 423,037 395,687 production RAI 8,313 6,343 5,268 6,296 3,974
Sustainability Report 2016/17 Sustainability Report 2016/17 (MT FFB) MBE 15,720 11,178 11,701 14,856 12,957 66 HOP 114,008 129,021 132,606 162,777 143,104 POL 18,663 18,084 21,756 23,255 22,826 GPP 6,239 6,053 7,187 11,339 10,976
Environment – oil palm Water usage WNB 0.83 0.86 0.82 0.81 1.28 (M3/MT FFB) RAI 0.73 0.95 1.08 1.09 1.68 MBE 1.38 1.38 1.22 1.21 1.24 HOP 0.65 0.62 0.61 0.61 0.78 N ew Britain Palm O il Limited POL 0.72 1.21 1.33 1.25 1.03 GPP 1.04 1.08 1.17 1.18 1.15 Total number of Number 0 0 1 0 0 significant spills About this report
Completeness There have been no changes extent to which these themes The report covers the calendar in scope since our 2014/15 are directly relevant to our years 2016 and 2017. Data Sustainability Report. business has guided us in includes all of our operations balancing report content as at 31 December, unless Materiality, stakeholder and the in-depth data otherwise noted. The report inclusiveness and included. Throughout the does not include detailed sustainability context report we seek to provide an information on our small We determine material aspects appropriate context for our office-based operations in for our business based performance, particularly Singapore, or any joint ventures on in-depth and ongoing in relation to the unique Sustainability Report 2016/17 discussions with a wide range social and environmental in which we hold less than 67 51%. In our 2015 report, we of stakeholders. This includes landscapes in Papua New included our joint venture in local engagement at site level by Guinea and Solomon Islands. Indonesia – however, as our our operational teams, as well share is now 49% and we have as international engagement in Report cycle and no management control, this organisations such as the RSPO assurance operation has been omitted and other multi-stakeholder This is our sixth biennial from this report. We officially initiatives. We also look to leading Sustainability Report. Our closed down project operations standards such as SAN and previous report was published in the Philippines in 2016, and the Palm Oil Innovation Group in October 2015. We have not have not included any figures Charter, as well as benchmarks sought third-party assurance in this report. In addition such as the Sustainable Palm Oil for the content of this report. to impacts within our own Transparency Toolkit published by We are reviewing the need for organisational boundaries, the the Zoological Society of London, such assurance on an ongoing N ew Britain Palm O il Limited report covers material aspects to ensure that we are responsive basis, based on feedback for all associated smallholders to the themes and aspects which from our stakeholders. in PNG and Solomon Islands. are critical to stakeholders. The
Materiality Matrix
RSPO Smallholders certification
High FPIC Deforestation and HCS
Transparency Labour rights GHG emissions Traceability and Human rights segregation Food labeling and oil palm nutritional value/safety
Forest fires Orang-utans Water Community Pest Health and procedures and biodiversity management development management safety Peat SABLs Other certifications Productivity Food security (yield/OER)
Bribery and corruption GMOs SDGs and national
Importance to stakeholders development goals
Air pollution Currency fluctuations Cost of production Low
Low Importance to NBPOL High Being transparent – Global Reporting Initiative (GRI) Index
The Global Reporting Initiative comparability and quality of contributions towards the goal of (GRI) is a multi-stakeholder information on environmental sustainable development. standard for sustainability and social impacts, thereby There are two options for reporting, providing guidance enabling greater transparency and preparing a report in accordance on determining report content accountability of organisations. with the GRI Standards: Core and and indicators. GRI is the first Sustainability reporting based on Comprehensive. This report has and most widely adopted global the GRI Standards should provide been prepared in accordance with standard for sustainability a balanced and reasonable the GRI Standards: Core option. reporting and has been representation of an organisation’s Sustainability Report 2016/17 Sustainability Report 2016/17 designed to enhance the global positive and negative 68
GRI 101: Foundation 2016 GRI 102: General Disclosures 2016 Disclosure Page or reason for omission Organisational Profile 102-1 Name of organisation About New Britain Palm Oil 6 102-2 Activities, brands, products, and services About New Britain Palm Oil 6 102-3 Location of headquarters About New Britain Palm Oil 6 102-4 Location of operations About New Britain Palm Oil 6-9 N ew Britain Palm O il Limited 102-5 Ownership and legal form Corporate governance, management and capacity building 19-20 102-6 Markets served About New Britain Palm Oil 6-9, 13 102-7 Scale of the organisation About New Britain Palm Oil 6-13 102-8 Information on employees and other workers About New Britain Palm Oil 6-7 Our employees 52 Base data and notes 61-62 102-9 Supply chain A fully segregated and traceable supply chain 13 Partnership with communities and smallholders 42 102-10 Significant changes to the organisation and No major changes in the reporting period its supply chain 102-11 Precautionary Principle or approach Continuing our sustainability journey 16-18 Protective forests and biodiversity 26-41 102-12 External initiatives Chairman’s welcome 2-3 Continuing our sustainability journey 16-18 102-13 Membership of associations Continuing our sustainability journey 16-18 Stakeholder engagement 21-23
Strategy 102-14 Statement from senior decision-maker Chairman’s welcome 2-3 102-15 Key impacts, risks, and opportunities Stakeholder engagement 21-23 About this report 67
Ethics and Integrity 102-16 Values, principles, standards, and norms Corporate governance, management and of behaviour capacity building 19-20 102-17 Mechanisms for advice and concerns Complaints and grievances 24-25 about ethics Governance 102-18 Governance structure Corporate governance, management and capacity building 19-20 102-19 Delegating authority Corporate governance, management and capacity building 19-20 102-20 Executive-level responsibility for economic, Corporate governance, management and environmental, and social topics capacity building 19-20
102-21 Consulting stakeholders on economic, Continuing our sustainability journey 16-18 Sustainability Report 2016/17 environmental, and social topics Stakeholder engagement 21-23 102-22 Composition of the highest governance body Corporate governance, management and 69 and its committees capacity building 19-20 102-23 Chair of the highest governance body Corporate governance, management and capacity building 19-20 102-26 Role of highest governance body in setting Corporate governance, management and purpose, values, and strategy capacity building 19-20
Stakeholder Engagement 102-40 List of stakeholder groups Stakeholder engagement 21-23 102-41 Collective bargaining agreements Freedom of association 54 102-42 Identifying and selecting stakeholders Stakeholder engagement 21-23 N ew Britain Palm O il Limited 102-43 Approach to stakeholder engagement Stakeholder engagement 21-23 102-44 Key topics and concerns raised Stakeholder engagement 21-23 Protecting forests and biodiversity 26-29 Preventing fires 34 Minimising carbon emissions 35-37 Protecting waterways and enhancing access to water 40-41 Partnership with communities and smallholders 42-46, 51 Promoting health and safety for workers and communities 55-60
Reporting Practice 102-45 Entities included in the consolidated As NBPOL is no longer a listed entity, there financial statements are no stand-alone financial statements 102-46 Defining report content and topic Boundaries About this report 67 102-47 List of material topics About this report 67 102-48 Restatements of information About this report 67 102-49 Changes in reporting About this report 67 102-50 Reporting period About this report 67 102-51 Date of most recent report About this report 67 102-52 Reporting cycle About this report 67 102-53 Contact point for questions regarding the report Contact us 79 102-54 Claims of reporting in accordance with the Global Reporting Initiative (GRI) Index 68-77 GRI Standards 102-55 GRI Content Index Global Reporting Initiative (GRI) Index 68-77 102-56 External assurance We have not engaged third party assurance About this report 67 Being transparent – Global Reporting Initiative (GRI) Index
Material Topics GRI Standard Disclosure Page or reason for omission Economic Economic Performance GRI 103: 103-1 Explanation of the material topic Focus on productivity gains through Management and its Boundary R&D 10-11 Approach 2016 A fully segregated and traceable
Sustainability Report 2016/17 Sustainability Report 2016/17 supply chain 13 Partnerships with communities and 70 smallholders 42-44 A fair pay structure 53 103-2 The management approach and Focus on productivity gains through its components R&D 10-11 A fully segregated and traceable supply chain 13 Partnerships with communities and smallholders 42-44 A fair pay structure 53 103-3 Evaluation of the management Partnerships with communities and approach smallholders 42-44 A fair pay structure 53 N ew Britain Palm O il Limited GRI 201: 201-1 Direct economic value generated Focus on productivity gains through Economic and distributed R&D 10-11 Performance 2016 A fully segregated and traceable supply chain 13 Partnerships with communities and smallholders 42-44 A fair pay structure 53
Market Presence GRI 103: 103-1 Explanation of the material topic A fair place to work 52-53 Management and its Boundary Approach 2016 103-2 The management approach and A fair place to work 52-53 its components 103-3 Evaluation of the management A fair place to work 52-53 approach GRI 202: 202-1 Ratios of standard entry level A fair pay structure 52-53 Market wage by gender compared to local Presence 2016 minimum wage 202-2 Proportion of senior management Our employees 52 hired from the local community Economic Indirect Economic Impacts GRI 103: 103-1 Explanation of the material topic Partnerships with communities and Management and its Boundary smallholders 42-51 Approach 2016 103-2 The management approach and Partnerships with communities and its components smallholders 42-51 103-3 Evaluation of the management Partnerships with communities and
approach smallholders 42-51 Sustainability Report 2016/17 GRI 203: 203-1 Infrastructure investments and Access to water for communities 41 Indirect Economic services supported Partnerships with communities and 71 Impacts 2016 smallholders 42-51 Supporting community health 52 203-2 Significant indirect economic Partnerships with communities and impacts smallholders 42-45 Financial literacy training for smallholders and landowner groups 47 Community development 48-51
Procurement Practices GRI 103: 103-1 Explanation of the material topic Partnerships with communities and Management and its Boundary smallholders 42-45 N ew Britain Palm O il Limited Approach 2016 103-2 The management approach and Partnerships with communities and its components smallholders 42-45 103-3 Evaluation of the management Partnerships with communities and approach smallholders 42-45
Anti-corruption GRI 103: 103-1 Explanation of the material topic Integrity and anti-corruption 20 Management and its Boundary Approach 2016 103-2 The management approach and Integrity and anti-corruption 20 its components Complaints and grievances 24-25 103-3 Evaluation of the management Integrity and anti-corruption 20 approach
Environment Materials GRI 103: 103-1 Explanation of the material topic Our operations 8-9 Management and its Boundary A fully segregated and traceable Approach 2016 supply chain 13 103-2 The management approach and Our operations 8-9 its components A fully segregated and traceable supply chain 13 103-3 Evaluation of the management Our operations 8-9 approach A fully segregated and traceable supply chain 13 GRI 301: 301-1 Materials used by weight or volume Our operations 8-9 Materials 2016 A fully segregated and traceable supply chain 13 Base data and notes 61-62 Being transparent – Global Reporting Initiative (GRI) Index
Environment Water and Effluents GRI 103: 103-1 Explanation of the material topic Protecting waterways and enhancing Management and its Boundary access to water 40-41 Approach 2016 103-2 The management approach and Minimsing carbon emissions 35 its components Protecting waterways and enhancing access to water 40-41
Sustainability Report 2016/17 Sustainability Report 2016/17 103-3 Evaluation of the management Protecting waterways and enhancing approach access to water 40-41 72 GRI 303: 303-1 Interactions with water as a shared Protecting waterways and enhancing Water and Effluents resource access to water 40-41 2018 303-2 Management of water discharge- Minimsing carbon emissions 35 related impacts Protecting waterways and enhancing access to water 40-41 303-3 Water withdrawal Protecting waterways and enhancing access to water 40-41
Biodiversity GRI 103: 103-1 Explanation of the material topic Our operations 8-9 Management and its Boundary Protecting forests and biodiversity 26-33
N ew Britain Palm O il Limited Approach 2016 103-2 The management approach and Protecting forests and biodiversity 26-33 its components 103-3 Evaluation of the management Protecting forests and biodiversity 26-33 approach GRI 304: 304-1 Operational sites owned, leased, Our operations 8-9 Biodiversity 2016 managed in, or adjacent to, protected Protecting forests and biodiversity 26-33 areas and areas of high biodiversity Protecting waterways and enhancing value outside protected areas access to water 26-33 304-2 Significant impacts of activities, Protecting forests and biodiversity 26-33 products, and services on Protecting waterways and enhancing biodiversity access to water 40-41 304-3 Habitats protected or restored Protecting buffer zones and enhancing mangroves 29 Identifying and protecting endangered species 30-31 304-4 IUCN Red List species and Identifying and protecting endangered national conservation list species species 30-31 with habitats in areas affected by operations
Emissions GRI 103: 103-1 Explanation of the material topic Minimising carbon emissions 36-37 Management and its Boundary Approach 2016 103-2 The management approach and Minimising carbon emissions 36-37 its components 103-3 Evaluation of the management Minimising carbon emissions 36-37 approach Environment Emissions GRI 305: 305-1 Direct (Scope 1) GHG emissions Minimising carbon emissions 36-37 Emissions 2016 305-2 Energy indirect (Scope 2) GHG Minimising carbon emissions 36-37 emissions 305-3 Other indirect (Scope 3) GHG Minimising carbon emissions 36-37 emissions
305-4 GHG emissions intensity Minimising carbon emissions 36-37 Sustainability Report 2016/17 305-5 Reduction of GHG emissions Minimising carbon emissions 36-37 73 Effluents and Waste GRI 103: 103-1 Explanation of the material topic Protecting waterways and enhancing Management and its Boundary access to water 40-41 Approach 2016 103-2 The management approach and Minimising carbon emissions 36-37 its components Protecting waterways and enhancing access to water 40-41 103-3 Evaluation of the management Protecting waterways and enhancing approach access to water 40-41 GRI 306: 306-1 Water discharge by quality and Protecting waterways and enhancing Effluents and destination access to water 40-41 N ew Britain Palm O il Limited Waste 2016 306-3 Significant spills Base data and notes 61-66
Environmental Compliance GRI 103: 103-1 Explanation of the material topic Focus on productivity gains through Management and its Boundary R&D 10-11 Approach 2016 103-2 The management approach and Focus on productivity gains through its components R&D 10-11 Corporate governance, management and capacity building 19-20 103-3 Evaluation of the management Focus on productivity gains through approach R&D 10-11 GRI 307: 307-1 Non-compliance with environmental Targets and achievements 4 Environmental laws and regulations No fines due to non-compliance Compliance 2016
Supplier Environmental Assessment GRI 103: 103-1 Explanation of the material topic A fully segregated and traceable Management and its Boundary supply chain 13 Approach 2016 Partnerships with communities and smallholders 42-45 103-2 The management approach and Certification 16-18 its components Partnerships with communities and smallholders 42-45 103-3 Evaluation of the management Partnerships with communities and approach smallholders 42-45 GRI 308: 308-2 Negative environmental impacts in Partnerships with communities and Supplier the supply chain and actions taken smallholders 42-45 Environmental Assessment 2016 Being transparent – Global Reporting Initiative (GRI) Index
Social Employment GRI 103: 103-1 Explanation of the material topic A fair place to work 52-54 Management and its Boundary Promoting health and safety for Approach 2016 workers and communities 55-60 103-2 The management approach and A fair place to work 52-54 its components Promoting health and safety for workers and communities 55-60 Sustainability Report 2016/17 Sustainability Report 2016/17 103-3 Evaluation of the management A fair place to work 52-54 74 approach Promoting health and safety for workers and communities 55-60 GRI 401: 401-1 New employee hires and Base data and notes 61-66 Employment 2016 employee turnover 401-2 Benefits provided to full-time A fair pay structure 53 employees that are not provided to temporary or part-time employees
Labour/Management Relations GRI 103: 103-1 Explanation of the material topic A fair place to work 52-54 Management and its Boundary Approach 2016
N ew Britain Palm O il Limited 103-2 The management approach and A fair place to work 52-54 its components 103-3 Evaluation of the management A fair place to work 52-54 approach
Occupational Health and Safety GRI 103: 103-1 Explanation of the material topic Promoting health and safety for Management and its Boundary workers and communities 55-60 Approach 2016 103-2 The management approach and Integrated Pest Management 38-39 its components Promoting health and safety for workers and communities 55-60 103-3 Evaluation of the management Promoting health and safety for approach workers and communities 55-60 GRI 403: 403-1 Occupational health and safety A safe workplace 55-56 Occupational management system Health and Safety 403-2 Hazard identification, risk A safe workplace 55-56 2018 assessment, and incident investigation 403-3 Occupational health services Supporting community health 57-60 403-4 Worker participation, consultation, Promoting health and safety for and communication on workers and communities 55-56 occupational health and safety 403-5 Worker training on occupational A safe workplace 55-56 health and safety 403-6 Promotion of worker health Community development 48-51 Supporting community health 57-60 403-9 Work-related injuries A safe workplace 55-56 Social Training and Education GRI 103: 103-1 Explanation of the material topic Our employees 52 Management and its Boundary Base data and notes 61-66 Approach 2016 103-2 The management approach and Our employees 52 its components 103-3 Evaluation of the management Our employees 52
approach Sustainability Report 2016/17 GRI 404: 404-2 Programmes for upgrading Our employees 52 Training and employee skills and transition 75 Education 2016
Diversity and Equal Opportunity GRI 103: 103-1 Explanation of the material topic A fair place to work 52-54 Management and its Boundary Approach 2016 103-2 The management approach and A fair place to work 52-54 its components 103-3 Evaluation of the management A fair place to work 52-54 approach GRI 405: 405-1 Diversity of governance bodies and Corporate governance, management
Diversity and Equal employees and capacity building 19-20 N ew Britain Palm O il Limited Opportunity 2016 Our employees 52 Non-discrimination 54
Non-discrimination GRI 103: 103-1 Explanation of the material topic Non-discrimination 54 Management and its Boundary Approach 2016 103-2 The management approach and Non-discrimination 54 its components 103-3 Evaluation of the management Non-discrimination 54 approach
Freedom of Association and Collective Bargaining GRI 103: 103-1 Explanation of the material topic Freedom of association 54 Management and its Boundary Approach 2016 103-2 The management approach and Freedom of association 54 its components 103-3 Evaluation of the management Freedom of association 54 approach
Child Labour GRI 103: 103-1 Explanation of the material topic Child labour and bonded labour 53 Management and its Boundary Approach 2016 103-2 The management approach and Child labour and bonded labour 53 its components 103-3 Evaluation of the management Child labour and bonded labour 53 approach GRI 408: 408-1 Operations and suppliers at Child labour and bonded labour 53 Child Labour 2016 significant risk for incidents of labour Being transparent – Global Reporting Initiative (GRI) Index
Social Forced or Compulsory Labour GRI 103: 103-1 Explanation of the material topic Child labour and bonded labour 53 Management and its Boundary Approach 2016 103-2 The management approach and Child labour and bonded labour 53 its components 103-3 Evaluation of the management Child labour and bonded labour 53
Sustainability Report 2016/17 Sustainability Report 2016/17 approach GRI 409: 409-1 Operations and suppliers at Child labour and bonded labour 53 76 Forced or significant risk for incidents of Compulsory Labour forced or compulsory labour 2016
Security Practices GRI 103: 103-1 Explanation of the material topic Community security 60 Management and its Boundary Approach 2016 103-2 The management approach and Community security 60 its components 103-3 Evaluation of the management Community security 60 approach N ew Britain Palm O il Limited Rights of Indigenous Peoples GRI 103: 103-1 Explanation of the material topic Partnerships with communities and Management and its Boundary smallholders 42-47 Approach 2016 103-2 The management approach and Responsible expansion 26 its components Partnerships with communities and smallholders 42-47 103-3 Evaluation of the management Partnerships with communities and approach smallholders 42-47
Human Rights Assessment GRI 103: 103-1 Explanation of the material topic A fair place to work 52-54 Management and its Boundary Approach 2016 103-2 The management approach and A fair place to work 52-54 its components Sime Darby Plantation Modern Slavery and Human Trafficking Statement 103-3 Evaluation of the management A fair place to work 52-54 approach Social Local Communities GRI 103: 103-1 Explanation of the material topic Partnerships with communities and Management and its Boundary smallholders 42-51 Approach 2016 103-2 The management approach and Stakeholder engagement 21-23 its components Access to water for communities 41 Partnerships with communities and smallholders 42-51 Sustainability Report 2016/17 Sustainability Report 2016/17 Supporting community health 57-58 Outreach on domestic violence and 77 women’s empowerment 59-60 103-3 Evaluation of the management Partnerships with communities and approach smallholders 42-51 Supporting community health 57-58 Outreach on domestic violence and women’s empowerment 59-60 GRI 413: 413-1 Operations with local community Responsible expansion 26-27 Local Communities engagement, impact assessments, Partnerships with communities and 2016 and development programmes smallholders 42-51 Supporting community health 57-58 Outreach on domestic violence and
women’s empowerment 59-60 N ew Britain Palm O il Limited 413-2 Operations with significant actual Partnerships with communities and and potential negative impacts on smallholders 42-45 local communities Safeguarding customary rights 46
Supplier Social Assessment GRI 103: 103-1 Explanation of the material topic A fully segregated and traceable Management and its Boundary supply chain 13 Approach 2016 Partnerships with communities and smallholders 42-45 103-2 The management approach and Certification 16-18 its components Partnerships with communities and smallholders 42-45 103-3 Evaluation of the management Partnerships with communities and approach smallholders 42-45 GRI 414: 414-2 Negative social impacts in the Partnerships with communities and Supplier Social supply chain and actions taken smallholders 42-45 Assessment 2016 Safeguarding customary rights 46 Being transparent – Glossary
Biodiversity Global Reporting Initiative (GRI) PalmGHG The diversity (number and variety of A multi-stakeholder standard for The PalmGHG Calculator is a tool species) of plant and animal life within a sustainability reporting, providing developed by the RSPO Greenhouse region. guidance on determining report content Gas Working Group 2 to allow palm oil and indicators. producers to estimate and monitor their Biological oxygen demand (BOD) net greenhouse gas emissions. The The amount of oxygen used when organic High Carbon Stock (HCS) Approach Calculator also enables palm oil producers matter undergoes decomposition by The HCS Approach is a practical to identify crucial areas in their production micro-organisms. Testing for BOD is done methodology for distinguishing forest chain and thereby guiding emission to assess the amount of organic matter areas that should be protected from reduction opportunities. in water. degraded lands that may be developed. It is a sequence of processes and Palm oil mill effluent (POME) Sustainability Report 2016/17 Sustainability Report 2016/17 CO2 equivalents assessments undertaken within By-product of processed fresh fruit bunch
Carbon dioxide equivalents (CO2e) provide two overarching modules: a social (FFB). 78 a universal standard of measurement requirements module, which focuses on against which the impacts of releasing respecting communities’ rights to their Peat (or avoiding the release of) different lands, and an integration module, which Peat is an accumulation of partially greenhouse gases can be evaluated. includes the FPIC and HCV processes. decayed vegetation matter. Peat forms in wetlands or peat lands, variously called Deforestation High Conservation Values (HCV) bogs, moors, muskegs, pocosins, mires, Deforestation is defined by POIG as The concept of High Conservation Value and peat swamp forests. direct human-induced conversion of Forests (HCVF) was first developed by forest to non-forests, with an exception the Forest Stewardship Council (FSC) in Roundtable on Sustainable Palm Oil for small-scale low intensity subsistence 1999 as their ninth principle. The FSC (RSPO) conversion by indigenous peoples and defined HCVF as forests of outstanding A multi-stakeholder organisation based in forest dependent traditional communities and critical importance due to their Kuala Lumpur, Malaysia. The organisation (consistent with HCV 5). environmental, socio-economic and has developed a certification scheme for cultural biodiversity and landscape value. sustainable palm oil. Effluents Water discharged from one source into International Labour Organization Social impact assessment (SIA)
N ew Britain Palm O il Limited a separate body of water, such as mill (ILO) Is a tripartite world body Social impact assessments include the process water. representative of labour, management process of analysing, monitoring and and government, and is an agency of managing the intended and unintended Emissions the United Nations. It disseminates social consequences, both positive Greenhouse gas (GHG) or carbon labour information and sets minimum and negative, of planned interventions emissions are gases in an atmosphere international labour standards called (policies, programmes, plans, projects) that absorb and emit radiation within the “conventions”, offered to member and any social change processes invoked thermal infrared range. This process is nations for adoption. by those interventions. Its primary purpose the fundamental cause of the greenhouse is to bring about a more sustainable effect. The primary greenhouse gases in Integrated Pest Management (IPM) and equitable biophysical and human the Earth’s atmosphere are water vapor, IPM is the careful consideration of all environment. carbon dioxide, methane, nitrous oxide, available pest control techniques and and ozone. subsequent integration of appropriate Stakeholders measures that discourage the Any group or individual who are affected Environmental impact assessment (EIA) development of pest populations and by or can affect a company’s operations. EIA is tool used to identify environmental, keep pesticides and other interventions social and economic impacts of a project to levels that are economically justified Sustainability prior to decision-making. It aims to and reduce or minimise risks to human A term expressing a long-term balance predict environmental impacts at an early health and the environment. IPM between social, economic and stage in project planning and design, emphasises the growth of a healthy crop environmental objectives. Often linked to find ways and means to reduce adverse with the least possible disruption to agro- sustainable development, which is defined impacts, shape projects to suit the local ecosystems and encourages natural pest as “development that meets the need of environment and present the predictions control mechanisms. current generations without compromising and options to decision-makers. the needs of future generations”. Non-governmental organisation (NGO) Extraction rate Is used in this report to refer to Toxicity The amount of oil extracted from oil palm grassroots and campaigning Toxicity measures the degree to which fruit at a mill. Crude palm oil (CPO) is organisations focused on environmental a substance is harmful to living organisms. extracted from the flesh; palm kernel oil or social issues. Toxicity in agricultural chemicals is (PKO) from the nut. measured using the LD50 methodology, New Planting Procedure (NPP) i.e. the toxicity units corresponding to Fresh fruit bunch (FFB) The RSPO NPP consists of a set of a lethal dose for 50% of a population Bunch harvested from the oil palm tree. assessments and verification activities to of rats. The weight of the fruit bunch ranges be conducted by RSPO grower members between 10 kg to 40 kg depending on the and certification bodies prior to a new oil Traceability size and age. palm development, in order to help guide Traceability is the capability to track responsible planting and ensure that sustainable palm oil along the entire Free, Prior and Informed Consent social and environmental requirements supply chain. (FPIC) have been met. The NPP report goes Principle that a community has a right to through a 30-day public consultation and Segregation give or withhold its consent to proposed planting and associated development This system allows sustainable palm oil to projects that may affect the lands they can only begin once the NPP is complete be kept separate from conventional palm customarily own, occupy or use. and RSPO approval is granted. oil throughout the entire supply chain. Contact us
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New Britain Palm Oil Limited (Group) Ground Floor, PWC Haus, Harbour City, NCD, Papua New Guinea Tel: +675 320 4000 Fax: +675 320 4007 www.nbpol.com.pg