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 four additional mills achieved in past two years, Bumitama now has a total of eight mills certified. We aim to complete certification of all our mills and plantations by 2023 or one year after obtaining HGUs, and all smallholders by 2024.

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.
  • We aim to proceed with the International Sustainability and Carbon Certification (ISCC) in 2022 after conducting the necessary training and readiness assessments.

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.

RSPO Complaints Log

2021 2020 2019 2018 2017 2016
Active 1 1 2 2 2 1
Closed 7 6 5 4 4 5
Total 8 7 7 6 6 6

Addressed Grievances

 Case  Date Lodged  Latest Update
Greenpeace – Destruction: Certified 01 March 2021 Issued public clarification
Mighty Earth Rapid Response 26 01 April 2020 Issued clarification to relevant stakeholders
Mighty Earth Rapid Response 23 01 January 2020 Issued clarification to relevant stakeholders
Mighty Earth Rapid Response 22 December 2019 Issued clarification to relevant stakeholders
Land claims related to PT Hungarindo 01 November 2019 Settled through mediation facilitated by the village
Grievance related to PT Agriplus by LinkAR Borneo 01 June 2019 Case entered internal grievance system after mutual agreement with complainant
The case has been settled after rounds of mediation and inprovements conducted together with the community
Article published by NY Times 14 December 2018 Clarification issued
Land clearing in PT KML 28 November 2018 Stop-work order issued
Land clearing outside PT LGI 21 November 2018 Conducted initial investigation
Land clearing outside PT ASMR 16 November 2018 Bumitama informed the land owner about Bumitama’s sourcing policy
Dying for a cooking report 15 November 2018 Clarification issued
Final Countdown report 25 September 2018 Clarification issued
PT Pranah Indah Gemilang license revoked 19 September 2018 Bumitama has not been purchasing FFB from this PT since 2017
Greenpeace Article dated 29 August 2018 10 September 2018 Clarification issued
PT Laman Mining clearing KEE areas 24 July 2018 Signed an MOU  on presevartion of KEE and biodiversity
PT Sinar Karya Mandiri clearing HCV and peat areas 13 March 2018 Bumitama has not been purchasing FFB from this PT since February 2018
Acquisition of PT DAS 06 June 2017 Clarification issued
Greenpeace report dated 17 January 2017 19 January 2017 Clarification issued
Article named “The No Deforestation Revolution: Two Years In” 27 January 2016 Clarification issued
Article named “Oil palm plantations need to protect orangutans” 26 February 2016 Clarification issued
FOE Report named “Up In Smoke” 11 December 2015 Clarification issued