ISF Supplier Code of Conduct
Intercontinental Specialty Fats Sdn. Bhd. (ISF) is one of the leading palm specialty oils & fats manufacturers with upstream refining and downstream processing facilities with factories located in Peninsular Malaysia.
We strive to work with our suppliers to make full use of the opportunities sustainable development offers. This also implies that we expect our suppliers as well as their suppliers and subcontractors to fully comply with applicable laws, environmental, social and corporate governance standards in the country.
Supplier Code of Conduct
- Suppliers shall comply with all applicable international, national and local laws and regulations.
- Supplier shall ensure that it develops and maintains appropriate internal business processes to ensure environmental compliance as per the objectives of ISF Sustainability Policies.
- Suppliers are required to meet the relevant national laws and current prevailing international standards for environmental protection and minimizing negative environmental impacts of suppliers’ operations.
- Suppliers shall obtain, maintain and keep current, all legally required environmental permits and registration. Any operational and reporting requirements shall be followed.
Human Rights and Labour
- Suppliers are to implement and communicate a Policy on Human Rights to their workforce and their third-party suppliers, including FFB suppliers, external estates, dealers, and smallholders.
- Suppliers shall not exploit rights of indigenous peoples and local communities and shall respect the principles of Free, Prior, and Informed Consent (FPIC) to operate on lands on which they hold legal, communal or customary rights.
- Suppliers shall comply with all applicable and relevant local laws & registration as well as ratified International Labour Organization Conventions in regard to labour and community relations.
- Suppliers shall grant its employees the right to Freedom of Association and Collective Bargaining in accordance with all applicable laws and regulations.
- Suppliers shall have fair and equal treatment in accordance with legal requirements for all permanent, temporary, and contract workers.
- Suppliers shall not accept any form of human trafficking, child labour, forced labour and employs all employees on a voluntary basis.
- Suppliers shall maintain a workplace free of all forms of discrimination and harassment and have a suitable grievance mechanism to report incidences.
- Suppliers shall not employ workers below the minimum age as defined in applicable national labour laws and regulations; or by International Labour Organisation (ILO) Convention 138.
- Suppliers comply with all applicable laws regarding minimum wages, regular working hours, rest periods and overtime hours.
Health and Safety
- Suppliers shall provide all employees with a safe and healthy working environment, that includes appropriate controls, safety procedures, preventative maintenance and protective equipment. Practices shall comply with all relevant local and national laws, codes and regulations.
- Suppliers shall provide accident insurance for all workers covering medical treatment for work-related illness and injury; and compensation for work-related illness and injury causing death or permanent disability.
- Suppliers shall not use paraquat and all WHO Class 1A and 1B chemicals in their operations.
- Suppliers shall work against corruption and prohibit bribery, kickbacks, and other unethical business practices.
- Suppliers shall have a whistleblowing mechanism to report corruption made available and communicated to all employees, surrounding communities, and external stakeholders.
- ISF has established a Grievance Procedure as a reference for management and staff of ISF to handle any grievance or report of misconduct from any external parties, concerning the implementation of ISF’s Policies.
- ISF will promptly investigate reported violations of the ISF Supplier Code of Conduct, and take corrective actions, where required, to address the issues.
Supplier Engagement and Verification
- ISF will carry out verification of supplier operations in accordance with requirements set out in this document and company policies.
- These verification audits will be carried out by ISF or a third party appointed by ISF. ISF will monitor supplier performance against the standards set out above by incorporating this code in its contractual agreements with suppliers.
- If an audit of a supplier reveals that they do not comply with the standards set out in this code, ISF will work with the supplier to identify the cause of the shortfall and provide the supplier with an opportunity to rectify the problem within one year from the date of audit.
- With an extensive and varied supply chain, ISF acknowledges that some suppliers will need support to improve standards. However, if a supplier has refused to implement corrective actions to address problems and audits reveal consistent non-compliance with this code, ISF may elect to suspend working with the supplier until supplier can illustrate compliance with this code.