IFFCO Group Policy on Sustainable Palm Oil

Investing in Sustainable Future

IFFCO is a United Arab Emirates based, innovative and integrated food and non-food ‘based’ group of companies serving the Industrial, Food Service, Personal Care application and Retail markets, with high quality ingredients and branded offers such as Noor. With an established International presence in over 20 Countries, the 30 manufacturing facilities of the group offer a wide range of food products, derivatives, intermediates, and services. IFFCO’s brands and products have been built around creating trust and delivering value to end consumers by using only high quality produced ingredients. We recognize that palm oil is one of the key ingredients we trade and process within our business.

Palm oil is the largest traded vegetable oil in the world; it is highly efficient in terms of yield per hectare and a highly versatile ingredient for food, feed, fuel and oleochemical products. With all of these strengths, producing palm oil sustainably is of utmost importance to the world, and subsequently to our long-term business. Building on our vision ‘Investing in the future’, IFFCO believes a major contribution to a sustainable future is secured when it invests, together with other stakeholders along the palm oil supply chain; in realizing the full potential of palm oil in contributing to social development, environmental protection and economic prosperity. Hence, Planet, People, Partnership and Profit(4Ps) are the four pillars that our palm oil processing units will be guided by.

IFFCO also aspires to embark on contributing to the United Nations (UN) Sustainable Development Goals (SDGs), specifically related to sustainable production and consumption, ensuring food security and nutrition, ending poverty, combating climate change, and halting biodiversity loss, land degradation and deforestation.

This policy reflects our commitment to support the move towards full sustainability in the palm oil industry, and marks an important milestone in our journey to invest in realizing the full potential of palm oil to sustainable development and ultimately, a sustainable future.

Scope of the Policy

This sustainability policy frames the commitment surrounding the sourcing and processing of palm oil that applies to IFFCO Group companies (Emirates Refining Company LTD, IFFCO Egypt S.A.E, Delmon Products Limited, IFFCO Pakistan (PVT) LTD and P T Synergy Oil Nusantara). We will work closely with suppliers, and engage all relevant stakeholders whenever necessary, to help them apply and comply with this policy within a reasonable timeline and benefit from its implementation.

Commitments

This Policy complements previous Sustainability Plan on Palm Oil Sourcing and Processing issued in 2017. It strengthens IFFCO’s commitment to work more proactively with stakeholders to ultimately achieve a fully sustainable palm oil sourcing and processing by 2021 that contributes to no deforestation and low carbon emission by protecting High Conservation Value (HCV) areas, High Carbon Stock (HCS) forest and peatland regardless of depth, and where plantation development only takes place with the free, prior, and informed consent (FPIC) of any affected local community, and provides safe, secure, productive work place for employees and surrounding communities. IFFCO facilities in Middle East, Pakistan, and Indonesia are member of Roundtable on Sustainable Palm Oil (RSPO) and we are committed to pursuing increased volume of RSPO-certified raw materials purchased and traded.

Traceability acts as fundamental first-stage assessment to understand the risks and opportunity for improvement with respects to the palm oil sourced and processed in our facility. IFFCO will work closely with the suppliers to improve transparency and traceability of its supply base and ultimately achieve full traceability to mills by mid-2019 and traceability to plantation level by 2021.

IFFCO recognizes the importance of partnership with stakeholders to deliver its goals within the targeted timeline. This includes initiating program to improve the smallholder inclusion in the sustainable palm oil supply chain, enhancing their productivity and thus reducing the risk of expansion, which often threatens HCV areas and HCS forest. IFFCO will promote and communicate on best practices by its suppliers and collectively work towards the further transformation of the palm oil industry.