Suppliers and contractors

Suppliers and contractors to the Group are bound by its policies. This applies to ‘scheme smallholders’ attached to the Group’s projects as well as other vendors of goods and services.

Group policies cover not only quality criteria for what it buys, but also sustainability standards regarding human rights and the land rights of the community in terms of either legal or customary rights. For example, compliance with the UK Modern Slavery Act, paying a decent living wage and adherence to the health and safety requirements of the country in which the supplier operates. From an environmental perspective, our suppliers must abide by Indonesia’s zero burning policy, the requirement to produce a social and environmental impact assessment before developing land, and the moratorium on new planting on peat, areas of high conservation value or high carbon stock, and other natural ecosystems. Group suppliers are required to have subscribed to industry good agricultural practices (GAP) for soils including peat, such as not degrading soils further, minimising erosion, as well as conserving soils whenever possible. They must comply with the Stockholm and Rotterdam conventions on hazardous chemicals and organic pollutants, as well as generally minimise the usage of chemical pesticides and fertilisers.

Suppliers or vendors that are found to violate our policies will likely result in suspension of the contract for a period of six months during which they must take agreed steps to bring them in line with Group policies, which may include a robust plan to restore natural ecosystems lost or compensation for non-compliant clearing after November 2005, referring to the RSPO Remediation and Compensation Procedure as a guide. The Group will not source goods or services from suppliers who fail to comply with this requirement.

During 2023, the following plantation companies have supplied fresh fruit bunches (ffb) to the Group’s mills:

• PT Arus Cipta Eriady (S 00°19’44.41” E 116°41’59.16”)
• PT Budi Duta Agromakmur (S 00°28’01.1” E 116°56’56.5”)
• PT Delta Utama Resources (S 00°29’36.57” E 116°8’1.34”)
• PT Kutai Agro Jaya (S 00°20’29” E 116°42’46”)
• PT Tunas Prima Sejahtera (N 00°03’20.4″ E116°2246.3″)
• PT Agro Bumi Kaltim (N 00°04’15.0” E 116°17″13.5”)

Updated March 2024