Palm oil traceability and certification programme

In the Rokan Hulu and Siak districts of Riau province, Indonesia, we are working with the government-owned PT Perkebunan Nusantara (PTPN) 5 mill and World Resources Institute (WRI) Indonesia to increase the sustainable palm oil production of smallholder farmers.

Palm oil worker

The project involves developing a traceability mechanism, and providing training and support to help the farmers achieve certification from the Roundtable on Sustainable Palm Oil (RSPO) and the Indonesian Sustainable Palm Oil (ISPO) initiative.

On track for 1,000 with plans to expand

We are on track to certify more than 1,000 independent smallholder farmers by the end of 2019, through various support mechanisms that include training in good agriculture practices and creating internal control systems. We are also helping them obtain the necessary land titles and business licences that they require, by law, to operate their farms.

With WRI Indonesia and other partners, we are currently developing plans to expand the project to include more than 5,000 smallholders and additional PTPN 5 mills.

An industry first

In January 2018, we signed a new Memorandum of Understanding with PTPN that sets out how we will support local mills and smallholder farmers to produce palm oil according to the standards of no deforestation, no development on peat and no exploitation of people and communities (NDPE).

As part of the partnership, PTPN will give us access to its mills and farmers, and we will support them to obtain sustainability certification through a combination of resources, funding and technical expertise. This will ensure the farmers are able to increase their productivity while producing palm oil to the right standards and therefore be in a better position to enter our supply chain.

Marc Engel, our Chief Supply Chain Officer, says: “The MoU with PTPN is the first time we can apply the produce-protect model at scale – we’re confident that our partnership will have a positive impact in Indonesia from an environmental, social and economic perspective.”