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.

RSPO Complaints Log

2022 2021 2020 2019 2018 2017 2016
Active 1 1 1 2 2 2 1
Closed 7 7 6 5 4 4 5
Total 8 8 7 7 6 6 6

List of Recent and Ongoing Grievances

 Case  Date Lodged  Latest Update
Land clearing/burning by the local community at PT KBAS September 2023 Status: Ongoing
Investigation
Violation of sourcing policy by PT PSM 18 November 2022 Suspended PT PSM during investigation
Closed with permanent blacklist/supplier termination
Allegation of water pollution by PT GKG 14 November 2022 Status: Closed
Field verification & mediation facilitated by PERKIMLH
Overlapping plantation of PT WNL with PT CKP 14 November 2022 Status: Ongoing
Data collection & spatial analysis
Article published by pontianak.tribunnews.com 08 November 2022 Clarification issued
Article published by detikperistiwa.com 08 November 2022 Clarification issued
Community land clearing in PT NKU 10 September 2022 Status: Closed
Field verification and report submission
PT Laman Mining – land clearing in PT GMS 09 August 2022 Status: Closed
Field verification and report submission
Land clearing by HTI PT Mayawana Persada inside and around PT KML – West Kalimantan June 2022 Status: Ongoing
Monitoring & landscape stakeholder coordination
Illegal FFB harvesting by individuals at plasma cooperative’s area October 2021 Status: Ongoing
Legal case decision pending
RSPO Complaint disputing plasma land allocation and community land certificates collection by the company 21 April 2021 Status: Ongoing
Investigation by RSPO Complaints Panel

 

For earlier addressed grievances please click here.