Sustainability Governance

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Permata Hijau believes that growth should not come at the expense of the environment or the people and that growth should be sustainable. Informed by this belief, we have set out the following supplier sustainability code to guide our suppliers in achieving a sustainable operation. Our commitment towards ensuring a No Deforestation, No Peat and No Exploitation (NDPE) Policy applies to all our suppliers. We invite our suppliers to join us in this journey by signing up to the following commitments:

Commit to protect the environment by:

    • Practicing zero deforestation and will not establish new plantations in High Conservation Value (HCV) and High Carbon Stock (HCS) areas. All new development must be preceded by HCV and HCS Assessment using HCSA toolkit and conducted by assessors accredited by HCVRN and HCSA. Any non HCSA compliant deforestation after 2020 will be remediated or compensated in accordance with RSPO RACP procedure. 

    • Managing High Conservation Value (HCV) areas identified within the concession and protect its natural function and biodiversity 

    • Protecting and conserving the natural biodiversity inside the operational boundary and contributing to the biodiversity conservation effort outside 

    • Practicing zero new planting on peatland and managing existing plantation on peat in accordance with RSPO’s Best Management Practices 

    • Implementing RSPO’s Best Management Practices on soil management 

    • Conducting social and environmental impact assessment before any new development 

    • Shunning the use of fire to clear land, be it for new planting, replanting or other development 

    • Shunning the use of fire to control pests and diseases unless in exceptional circumstances 

    • Identifying, quantifying and reducing GHG emissions from land use as well as operations 

    • Practicing the use of renewable energy and the implementation of energy efficiency programs 

    • Reducing water use and water consumption and promote water recycling 

    • Managing wastewater in accordance with the relevant laws and regulations and ensure wastewater quality level stay within the regulatory limit 

    • Promoting 3R (Reduce, Reuse, and Recycle) program for waste management 

    • Protecting natural waterways through the establishment of riparian buffer zone in accordance with Indonesian Government regulation 

    • Ensuring that there is no hunting of protected species in the company’s concession area 

    • Promoting the use of integrated pest management to minimize the use of chemical pesticides and recycling organic waste to minimize the use of chemical fertilizers 

    • Avoiding the use of paraquat and other chemicals listed in WHO class 1a and 1b list as well as Stockholm convention and Rotterdam convention 

    • Complying with all national or local environmental laws and regulations 

Commit to improve the well being of workers by:

    • Respecting the freedom of choice of workers 

    • Shunning forced labor and child labor and shunning the practice of worker ID retention 

    • Compensating workers fairly with at least the minimum wage and striving to provide a decent living wage 

    • Respecting the rights of workers to join trade unions and to collectively bargain 

    • Practicing zero tolerance towards any type of harassment, abuse, or discrimination (gender, race, age, etc.) related to employment and occupation within the company’s premises. 

    • Respecting and protecting the reproductive rights of workers 

    • Preventing chemical related work to pregnant and breastfeeding mother 

    • Providing a safe and healthy working environment for workers 

    • Creating and maintaining a complaint and grievance mechanism that workers can access without fear of reprisal 

    • Complying with all national and local laws and regulations, as well as the core ILO conventions regarding labor, health and safety 

Commit to protect community rights by:

    • Following the principles of Free, Prior, and Informed Consent (FPIC) in dealing with the communities. Respecting the right of local communities to give or withhold consent to the land to which they hold legal, communal, customary rights or tenure 

    • Protecting the rights of indigenous people as is enshrined in the UN Declaration on the Rights of Indigenous Peoples and ILO Indigenous and Tribal Peoples Convention (No. 169) 

    • Creating and maintaining a complaint and grievance mechanism that is accessible to the members of the communities and other external stakeholders 

    • Supporting the inclusion of smallholders and other outgrowers into the company’s sustainable supply chain 

    • Creating and implementing CSR programs that benefit communities in a tangible way 

    • Preventing negative impacts on local food security and working with the communities to mitigate any negative impacts that arise 

    • Striving to solve any dispute amicably and will not resort to violence 

    • Providing business/work opportunity for local community on the principle of equality and competence 

Commit to ethical corporate governance and integrity by:

    • Conducting business ethically and within the boundaries of the national and local laws and regulations 

    • Shunning all forms of corruption and bribery 

Commit to high standards in quality , sustainability and transparency by:

    • Obtaining quality and sustainability certifications (such as ISO 9001, FSSC 22000, RSPO, ISPO etc.) or at least implement steps or programs which will lead to future certifications 

    • Endorsing sustainable palm oil certification such as RSPO and ISPO and will work towards full certification of our business units 

    • Creating transparent and traceable supply chain that extends not only to palm oil mills but eventually to plantations 

Commit to compliance by:

    • Communicating the contents of this code to employees

    • Adopting or adding this code into their own supplier codes