Responsible Sourcing

How do we govern sustainability?

Bumitama is committed to a traceable, reliable, and secure supply chain. We utilise the latest tracing technologies and strictly enforce our Sustainability Policy to ensure our operations and external suppliers adhere to best management practices.

RSPO

  • Bumitama obtained its first certification against the RSPO Principles and Criteria (P&C’s) in 2014. With the certification for an additional mill achieved in past two years, Bumitama now has a total of nine mills certified. We aim to complete certification of all our mills and plantations by 2024 or one year after obtaining HGUs, and all smallholders within two years from the start of engagement.

ISPO, ISO, and ISCC

  • In 2019, Bumitama’s fourth plantation subsidiary, PT Agro Sejahtera Manunggal, was certified under the Indonesian Sustainable Palm Oil (ISPO), launched in 2012 as a mandatory requirement for Indonesian oil palm growers. We plan to have all our current plantations ISPO certified by 2023.
  • Bumitama intends to revisit its International Sustainability and Carbon Certification (ISCC) certification plans at a later date.

Supplier Risk

  • As the origin of our supply is stringently traced, Bumitama focuses on addressing problematic areas with higher environmental and social risks. Our pre-screening process has mapped all existing and new suppliers using publicly available data and information disclosed by our suppliers. We compare these maps against a specially developed risk map covering a 50-kilometre radius from our mills. This identifies and evaluates key suppliers and sites that require our support on issues such as land legality, productivity, deforestation, fires, and community grievances. Using our supply chain categorisation we liaise with our commercial team, to filter potential new suppliers. Those deemed High Risk are automatically excluded and become ineligible to become our suppliers.

Supplier Sustainability

  • Partnering independent smallholder groups have their performance regularly verified with a questionnaire based on the latest Sustainability Policy. To ensure the sourced FFB complies with regulations and originates from an official, legal supplier, we implement checks and conduct follow-up inspections to confirm the date of planting, analyse FFB samples, and substantiate plantation coordinates. We also have dedicated teams to educate FFB suppliers on implementing our Policy. We hold our suppliers accountable whenever we find their performance contravenes their sustainability commitment. For those found in non-compliance with regulations on spatial planning, forestry zones, HCV and peat areas, we encourage them to work with us on rectification so that they can comply with our policy commitments. We terminate contracts of suppliers who do not take remedial action or refuse to comply with our Policy.