IFFCO GROUP POLICY ON SUSTAINABLE PALM OIL
Investing in a Sustainable Future
IFFCO recognizes that palm oil is one of the key ingredients that it trades and processes within its 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 IFFCO’s long-term business.
IFFCO also aspires to embark on contributing to the United Nations Sustainable Development Goals, specifically related to responsible production and consumption, ensuring food safety and nutrition, ending poverty, addressing climate change, reducing inequality and engaging stakeholders towards achieving these goals.
Scope of the Policy
This sustainability policy frames the commitment surrounding the sourcing and processing of palm oil that applies to IFFCO Group companies: IFFCO Singapore Pte Ltd, IFFCO (S.E.A) Sdn Bhd, Emirates Refining Company Ltd, IFFCO Egypt S.A.E, Delmon Products Limited Yanbhu Br, IFFCO Pakistan (Pvt) Ltd and P T Synergy Oil Nusantara. IFFCO 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 the 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 process by 2021.
IFFCO Companies in Singapore, Malaysia, Middle East, Pakistan, and Indonesia are members of the Roundtable on Sustainable Palm Oil (RSPO) and IFFCO is committed to pursuing an increased volume of RSPO-certified raw materials purchased and traded.
Traceability acts as a fundamental first-stage assessment to understand the risks and opportunities for improvement with respects to the palm oil sourced and processed in IFFCO’s 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 a program to improve the smallholder participation in the sustainable palm oil supply chain, enhancing their productivity and thus reducing the risk of expansion, which often threatens HCV areas and HCS forests. IFFCO will promote and communicate on best practices by its suppliers and collectively work towards the further transformation of the palm oil industry.
Palm Oil Sustainability Goals
IFFCO’s goal is to work with key stakeholders to deliver a fully traceable and sustainable palm oil supply chain by 2021. Additionally, IFFCO adheres to No Deforestation, No Peat and No Exploitation” (NDPE) practices for all its Palm Oil supply chain.
IFFCO mandates its palm oil supply chain to meet the following criteria in order to be fully traceable and sustainable:
General Requirements:
Comply with all local, national, international laws.
Ensure traceability of materials
No Deforestation:
No development of palm oil in High Carbon Stock (HCS) forests
- Protection of High Conservation Value (HCV) areas
No burning in preparation of land or in development
No Peat
No new development on peat regardless of depth
Follow best management practices + Peat.
No Exploitation:
Plantation development takes place with the Free Prior Informed Consent (FPIC) of any affected local communities
Provide safe, secure, productive workplace for employees and surrounding communities
Partnership and Collaboration:
Cooperation with actors along the palm oil supply chain such as government, civil society organisations and development agencies to produce scalable impact.
Increased volume of RSPO-certified materials through innovative partnerships.