22 December 2017 – The Rainforest Alliance has released its evaluation of Golden Agri- Resources’ (GAR) implementation of its commitments in the GAR Social and Environmental Policy (GSEP), reporting that progress to meet commitments has been made, while noting that important work remains to be done.
Rainforest Alliance Senior Vice President, Forestry, Richard Z. Donovan said: “The GSEP is a work in progress. Field work and stakeholder consultation indicates GAR staff at both the headquarters and in the three concessions are aware of the GSEP and working to implement it in all respects. What makes GAR’s approach important is that the GSEP is a publicly stated set of company-wide commitments to improving the social and environmental quality of its sourcing of raw oil palm materials irrespective of the scale or location of supply. The challenge is to build on progress to date to close the loop in implementing all of the commitments.”
GAR has formulated an action plan based on the findings and recommendations of the Rainforest Alliance to ensure that implementation stays on track. “This evaluation exercise is part of our strong commitment to monitoring and continuous improvement. We wanted an objective third party to assess whether we are doing things properly and in accordance with our own policy and to tell us how we can close gaps and improve. Moving forward, our action plan will help us make more progress towards responsible palm oil production,” said Agus Purnomo, Managing Director, Sustainability and Strategic Stakeholder Engagement at GAR.
In 2016, GAR approached the Rainforest Alliance to conduct an objective evaluation of the implementation of the GSEP which was launched in 2015, and built on previous sustainability policies. Three concessions in West Kalimantan were picked as evaluation sites – PT. Kartika Prima Cipta (KPC), PT. Paramitra Internusa Pratama (PIP) and PT. Persada Graha Mandiri (PGM). The concessions were chosen because they are the areas where GAR has trialled and delivered the most work related to its GSEP since the policy was implemented.
The evaluation was conducted using established, independent auditing procedures, including evidence submissions by GAR and other stakeholders, field visits and stakeholder consultations with affected communities, individuals and organisations.
Key findings include:
- GAR has developed a series of Standard Operating Procedures (SOPs) and concession managers are consistently working to implement them
- GAR has halted forest clearance; is working with affected communities both inside and outside the concessions to control fires; carried out High Conservation Value (HCV) and High Carbon Stock (HCS) assessments; and conserved both HCVs and HCS in the three concessions
- GAR has identified social conflicts and is using existing SOPs and related processes for achieving resolution. Continuous improvement in FPIC implementation is critical
- GAR has created a functioning supply chain traceability approach
The full report and evaluation details can be found here: https://www.rainforest-alliance.org/business/forestry/verification/transparency/assurance-projects-assesment
The GAR Action Plan can be found here
About Golden Agri-Resources Ltd (GAR)
GAR is one of the leading palm oil plantation companies with a total planted area of 486,684 hectares (including plasma smallholders) as at 30 September 2017, located in Indonesia. It has integrated operations focused on the production of palm-based edible oil and fat.
Founded in 1996, GAR was listed on the Singapore Exchange in 1999 and has a market capitalisation of US$3.6 billion as at 30 September 2017. Flambo International Limited, an investment company, is currently GAR’s largest shareholder, with a 50.35 percent stake. GAR has several subsidiaries, including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.
GAR is focused on sustainable palm oil production. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil, margarine, shortening and biodiesel; as well as merchandising palm products throughout the world. It also has operations in China and India including a deep-sea port, oilseeds crushing plants, production capabilities for refined edible oil products as well as other food products such as noodles.
For more information, please contact:
Communications Team, Golden-Agri Resources [email protected]
+65 9182 4004