ISF’s Grievance Procedure

How It Works

As part of our Sustainability Policy, Intercontinental Specialty Fats Sdn Bhd (ISF) has established a Grievance Procedure as a reference for our management to handle grievances lodged from any external parties. This provides a platform for all our stakeholders to address concerns and feedback for enhancing transparency and accountability in our supply chain.

When a complaint against a supplier is filed, we engage relevant parties to verify and discuss the issues raised in accordance with this procedure. In the event that the supplier does not engage effectively in the process towards resolution and compliance with our sustainability policy, ISF will review its relationship with that supplier. If immediate action is required but is not being taken, we will consider suspension of commercial activities. Business relationships are subject to termination as a last resort.

ISF’s Grievance Procedure

Grievances Can Be Submitted Through Any Of The Following Channels:

1Option 1: Webform
  • Accepted file types: jpeg, jpg, gif, png, doc, docx, xls, xlsx.
2Option 2: Mail
Attention: Sustainability Department


Addressed to: Intercontinental Specialty Fats Sdn Bhd


Lot 1, Lebuh Sultan Hishamudin 2
Kawasan 20, Bandar Sultan Suleiman, P.O. Box 207
42009 Port Klang, Selangor Darul Ehsan


MUST provide the following details:

  • Full Name
  • Company/Organization
  • Address
  • Phone No./Fax No./Email Address
  • Description of the grievance in detail
  • Evidences to support the grievance
3Option 3: Email/Telephone/Fax
Attention: Sustainability Department


By email to: sustainability@isfpk.com.my
By telephone to: +60-3-3176 3050; +60-3-3375 8200
By fax to: +60-3- 3176 5933; +60-3-3176 5185

ISF Grievance List And Status (Updated As Of June 2021)

Date Supplier Stakeholder/Source Grievance Subject, Progress and Status
April 2021 Perbaadanan Kemajuan Pertanian Selangor (PKPS) supplying FFB via Sungai Terah Palm Oil Mill Chain Reaction Research News/Report Link Status: Monitoring

Subject Matter:Alleged clearing of land by PKPS which included a 971-ha peat swamp forest to develop an agricultural plantation, between February and April 2021.
Progress Update:

ISF did not source FFB directly from PKPS, only via Sungai Terah Palm Oil Mill. The said land PKPS planned to develop is categorized as an Environmentally Sensitive Area. The scoping study and Terms of Reference (TOR) for the Environmental Impact Assessment (EIA) were rejected by Malaysia’s Department of Environment (DOE) in January 2020 as they did not align with the new national regulation prohibiting oil palm development on peatland and forest areas.

Following the alleged land clearing by PKPS without submitting an EIA, they were asked by DOE to halt all activities and submit the mandatory documents needed. ISF is currently engaging Sungai Terah on the matter and updates will be provided in due course.

On 21st May 2021, Sungai Terah Palm Oil Mill intends to seek clarifications from PKPS’ plantations effective 1st June 2021 as their contract has ended by 31st May 2021 based on PKPS’ NDPE policy breach. PKPS has replied and requested for an additional month’s extension to their contract to allow sufficient time for necessary action.

On 11th June 2021, PKPS has reached out to ISF and several parties to clarify on the allegations.

  • The 2,400 acres land claimed in the article is a private land fully owned by PKPS and has been encroached since the 2000s
  • The land is not part of a peat swamp forest or reserved forest zone as claimed in the article while 60% of land will be rehabilitated as part of the Central Forest Spine (CFS) initiative
  • Department of Environment (DOE) Malaysia has issued a letter to instruct for the remedy plan onsite while the rest of the flood-plagued land will also be equipped with a technologically advanced drainage system
  • Upon completion, the land will be used for agriculture purposes to support the Food Security Initiative and potentially able to improve livelihoods

In light of this case, PKPS is also in the progress of developing its NDPE policy and will be updating this in due course. The Malaysian Palm Oil Association (MPOA) has also verified on 31st May 2021 that PKPS did not violate any NDPE policies, and fully support PKPS in their NDPE policy development.

April 2021 Astra International Tbk via Astra AgroLestari

Mighty Earth Rapid Response 33

News/Report Link

Status: Closed (Resolved)

Subject Matter:

Between January 2016 and December 2018, there was about 60 ha of tree cover loss occurring within the MartabeMine area of PT Agincourt Resources Tbk, and again for about 41 ha of tree cover loss within the same area between January 2019 and December 2020.

Progress Update:

The area of tree cover loss is not related to oil palm development and in addition, ISF’s palm oil is 100% sourced from Malaysia which can be observed on our Traceability page.

January 2021 Indirect/Sungei Kahang via Bunga Group – Value Greenworld Sdn Bhd Mighty Earth Rapid Response 32 News/Report Link Status: Monitoring

Subject Matter:Satellite imagery showed a total of 255 ha of forest were cleared in the Value Greenworld Sdn Bhd concession between November 2019 and October 2020.
Progress Update:

ISF did not source directly from Bunga Group/Value Greenworld Sdn Bhd or Sungei Kahang, only via our palm kernel crusher which is indirectly supplied by Sungei Kahang.

Bunga Group has arranged a formal communication since November 2020.

They have agreed to a Stop Work Order since December 2020 and have published their NDPE policy on January 2021.

December 2020 Direct/Sime Darby Plantations (SDP) for PKO products

Associated Press

U.S. Customs and Border Protection (CBP)

News/Report Link

News/Report Link

Status: Monitoring

Subject Matter:

On 30 December 2020, the Associated Press (AP) released an article linking several industries, one of them SDP, to alleged child labour.

The United States Customs and Border Protection (CBP) subsequently issued a Withhold Release Order (WRO) against Sime Darby based on information that reasonably indicates the presence of all 11 of the International Labour Organization's (ILO) forced labor indicators in SDP's palm oil production process.

Progress Update:

SDP released a media statement to reiterate their commitment to human rights, though the raised article was not referenced.

RSPO released a statement on CBP's WRO, acknowledging the issue but has requested CBP to provide specific information on the allegations for SDP to resolve the issue.

SDP and RSPO have released statements and requested CBP & AP to provide more specific information for them to address the allegations.

ISF has engaged with SDP as of 13th January 2021 for the latest progress and will continue to monitor the case closely.

October 2020 Indirect/LKPP/PKPP supplying FFB via Sungai Terah Palm Oil Mill

Mighty Earth Rapid Response 30 & 31

News/Report Link

News/Report Link

Status: Investigation

Subject Matter:

Satellite imagery (see below) shows that

  1. Between Feb 11 2019 and May 2020, a total 101 ha of forest was cleared.
  2. Between March 3, 2020 and 27 Oct 2020; a total of 22 ha hectares was cleared (Cherating) concession.
Progress Update:

Based on the meeting minutes provided by Sungai Terah Palm Oil Mill, the stakeholder have requested that LKPP/PKPP to:

  1. Publish and commit to an NDPE policy.
  2. Moratorium on clearing for palm.
  3. Agree on a recovery plan.

In Jan 2021, PKPP launched their sustainability dashboard and also published their NDPE Policy.

August 2020 Indirect/ Amanah Saham Pahang Berhad (ASPA) via our palm kernel crusher

Might Earth Rapid Response Report 30

News/Report Link Status: Monitoring

Subject Matter:

Satellite imagery (see below) shows that

  1. Area A: February 5, 2019, and July 7, 2020, a total of 33 hectares of forest were cleared in the Mentiga Corporation Bhd concession.
  2. Area B: February 11, 2019, and May 7, 2020, a total of 58 hectares of forest was cleared in the Mentiga Corporation Bhd concession.
Progress Update:

ISF did not source directly from Amanah Saham Pahang Berhad (ASPA) but via our palm kernel crusher; ASPA is a supplier to a POM which supplying palm kernel to the KCP.

ASPA has committed to adopting NDPE commitment and imposed a moratorium on land clearing. A copy of their NDPE Policy was shared with our suppliers on 9th July 2020.

As now, ISF awaiting their further announcement on the recovery plan.

August 2020 YP Plantation Holdings Sdn Bhd (YPPH) via our palm kernel crusher

Might Earth Rapid Response Report 30

News/Report Link Status: Monitoring

Subject Matter:

Satellite imagery (see below) shows that between January 21, 2019, and June 19, 2020, a total of 1,807 hectares of peat was developed and a total of 1,216 hectares were prepared for clearing (stacking lines) in the YP Plantation Sdn Bhd concession.

Progress Update:

ISF did not source directly from YP Plantation Holdings Sdn Bhd (YPPH) but via our palm kernel crusher; YPPH is a supplier to a POM which supplying palm kernel to the KCP.

YP Plantation has committed to adopting NDPE and imposed a moratorium on land clearing with effective from 17th August 2020. A copy of the NDPE policy is available here.

As now, ISF awaiting their further announcement on the recovery plan.

July 2020 Rimbunan Hijau – Poh Zhen Sdn Bhd via Bintulu Edible Oils Sdn Bhd – Wilmar

Mighty Earth Rapid Response Report 29

News/Report Link Status: Closed (No Further Purchase)

Subject Matter:

Satellite imagery shows that between July 31, 2019, and May 26, 2020, a total of 66 hectares of peat was developed and 54 hectares were prepared for clearing (stacking lines) in the Poh Zhen SdnBhd concession.

Progress Update:

ISF did not source directly from Rimbunan Hijau – Poh Zhen. The sourcing of PKO from Rimbunan Hijau - Woodijaya Sdn Bhd (Lot 197) via PGEO, Bintulu Edible Oil, Wilmar.

Wilmar was verified as an ineligible grievance in their grievance list. The land clearing is not related to oil palm development

July 2020 Rimbunan Hijau: PJP Pelita Lundu Plantation Sdn Bhd via Wilmar

Mighty Earth Rapid Response Report 29

News/Report Link Status: Closed (No Further Purchase)

Subject Matter:

Between February 11, 2020, and May 6, 2020, a total of 4 hectares of forest was cleared in the PJP Pelita Lundu Plantation Sdn Bhd concession.

Progress Update:

ISF did not source directly from PJP Pelita Lundu Plantation Sdn Bhd or its mill. The sourcing of PKO from via Bintulu Edible Oil.

The land clearing was not conducted by the company. That particular area (LOT N17) is still owned by the local smallholders as it has not been surrendered yet. The land clearing was done by those local smallholders.

This is included in Wilmar’s updated ineligible grievance list as of April 2021.

April 2020 Kirana Palm Oil Refinery Sdn. Bhd (BLD Plantations Berhad) via Palmco Oil Mill Sdn Bhd

Mighty Earth Rapid Response Report 11

News/Report Link Status: Suspended

Subject Matter:

A total of 1,283 hectares of peat forest were developed within BLD Plantation’s concession.

KTS Group’s ongoing deforestation its BLD Plantation Bhd concession located north of Sibu, Sarawak.

Progress Update:

ISF did not source directly from Kirana Palm Oil Refinery Sdn. Bhd, a subsidiary of BLD Plantations Berhad. The sourcing of PKO from via Palmco Oil Mill Sdn Bhd.

ISF will no longer accept oil from this supplier. We have informed our trading partners and commercial team accordingly.

April 2020 Pipit Mutiara Indah, a subsidiary of QL Resources Bhd via TSH Wilmar Sdn Bhd

Mighty Earth Rapid Response Reports 21 and 28

News/Report Link

News/Report Link

Status: Monitoring

Subject Matter:

Satellite imagery shows that between January 3, 2019, and October 20, 2019, a total of 50 hectares were prepared for clearing in the PT Pipit Mutiara Indah concession.

Progress Update:

ISF did not source directly from Pipit Mutiara Indah, a subsidiary of QL Resources. The sourcing of PKO from via TSH Wilmar Sdn Bhd.

Based on Wilmar’s response, they initiated engagement with PT Pipit Mutiara Indah (PMI) since April 2019 to seek clarification on deforestation alert detected through their Supplier Group Compliance Verification programme. Based on the supporting document submitted by the supplier, it was clarified that the deforestation happened outside their concession boundary. PMI did not carry out any land clearing inside their concession for oil palm development. The first meeting with PMI was conducted in May 2019, where Wilmar has reiterated the NDPE policy compliance. PMI provided written confirmation to the commitment of the NDPE policy and shared their concession map for our ongoing monitoring.

They continue to monitor the case and their internal monitoring report in October 2019 has detected land clearing at PT PMI. During Wilmar’s investigation and engagement with PMI, it was clarified that the area has already been felled several years ago and now being cleared for planting.

However, as there was no HCS/HCV assessment conducted, they considered this as a non-compliant to the NDPE policy. PMI has committed to an immediate moratorium and they continue to guide PMI in NDPE policy compliance.

In April 2020, QL Group has met all the criteria stipulated in the re-entry criteria, including their commitment to the Development of Recovery Plan for Non-Compliant Land Clearing to NDPE policy at group level incurred from January 2016 onwards.

Based on a detailed review of documentation, reports, and letter of commitment from QL Group, the Wilmar Suspension Committee have given due consideration of this progress and have lifted the suspension on QL Group in April 2020.

April 2020 Tabung Haji via Bintulu Edible Oils Sdn Bhd – Wilmar International Ltd

Chain Reaction Research

News/Report Link Status: Monitoring

Subject Matter:

Between January 2016 and December 2018, TH Plantations cleared some 2,223 ha of forest in these developments, followed by another 22 ha in early 2019. In the area designated for clearing for the third phase of the project, 7,350 ha has been logged since 2015, including 2,320 ha in 2019.

Progress Update:

ISF did not source directly from Tabung Haji Plantations. The sourcing of PKO from via PGEO, Sandakan Edible Oil, and Bintulu Edible Oil, Wilmar.

Based on Wilmar’s investigation result, TH Plantations Berhad (THP) does not own any shares in Deru Semangat Sdn Bhd (DSSB). However, their holding company, Lembaga Tabung Haji (LTH) owns 55% of DSSB.

THP is in the process of finalising the termination of their Management Agreement with DSSB which is targeted to be completed by the end of July 2020. THP has also agreed to put in place NDPE commitments. Meanwhile, THP has ceased all oil palm development in DSSB.

Based on Wilmar’s internal LUCA assessment of the DSSB concession area, there has been no land clearing in 2020.

Engagement with THP concerning their re-entry criteria has been triggered since July 2020, and Wilmar will continue to guide THP in meeting the criteria.

April 2020 Rimbunan Hijau – Poh Zhen Sdn Bhd via Bintulu Edible Oils Sdn Bhd – Wilmar International Ltd

Mighty Earth Rapid Response Report 17 & 26

News/Report Link

News/Report Link

Status: Closed (No Further Purchase)

Subject Matter:

Satellite imagery (see below) shows that between March 12, 2019, and July 7, 2019, a total of 40 hectares of peat were developed, and 58 hectares were prepared for clearance in the Poh Zhen Sdn Bhd concession. And additional 8.43 hectares was identified using screened GLAD alerts Feb 17 to Mar 16, 2020.

Progress Update:

ISF did not source directly from Rimbunan Hijau – Poh Zhen. The sourcing of PKO from Rimbunan Hijau - Woodijaya Sdn Bhd (Lot 197) via PGEO, Bintulu Edible Oil, Wilmar.

Wilmar was verified as an ineligible grievance in their grievance list.The land clearing is not related to oil palm development

April 2020 NPC Resources Bhd: Berkat Setia Sdn Bhd via Sandakan Edible Oils Sdn Bhd, Sandakan – Wilmar International Ltd

Mighty Earth Rapid Response Report 23 & 25

News/Report Link

News/Report Link

Status: Closed (No Further Purchase)

Subject Matter:

A total of 1047 hectares of forest were cleared in the PT Sumber Alam Selaras concession.

Progress Update:

ISF did not source directly from NPC Resources Berhad plantations. The sourcing of PKO from NPC Resources Bhd- Berkat Setia Sdn Bhd via PGEO, Sandakan Edible Oil, Wilmar.

Wilmar verified as ineligible in their grievance list. The area in question in PT Sumber Alam Selaras was not cleared by the company but was impacted by forest fires that struck during the peak of the dry season in September 2019.

This is included in Wilmar’s updated ineligible grievance list as of April 2021.

March 2020 Samling Plantation via Bintulu Edible Oil (Wilmar International Ltd)

Might Earth Rapid Respond Report 24

News/Report Link

News/Report Link

Status: Suspended

Subject Matter:

Samling is responsible for clearing more than 779 hectares of forest in Sarawak, Malaysia. To date, four of Samling’s concessions (including LPF 0008 Marudi & Batu Belah; Samling Jelalong LPF 0007 and PT Tunas Borneo Plantations) have been included in a total of 11 Rapid Response reports.

Progress Update:

ISF did not source directly from Samling Group plantations. The sourcing of PKO from Sampling Group via PGEO, Bintulu Edible Oil, Wilmar.

ISF clarified with Wilmar on 10 March 2020; Wilmar confirmed that they already suspended Samling since January 2020. Please refer to Wilmar’s latest grievance as of February 2021 (row numbers 7, 11 and 33).

Samling Group is currently not in ISF’s and its suppliers’ supply chain until their grievances are resolved.

12 April 2019 Kwantas Group: Kwantas Pelita Plantation (Balingian) Sdn Bhd via Apical

Mighty Earth Rapid Response Report 14

News/Report Link Status: Investigation

Subject Matter:

Allegations that ISF had sourced CPO or CPKO from the group who are involved in deforestation activities.

Progress Update:

ISF only source PKO indirectly from Kwantas Group but via Apical Group. ISF already engaged with Apical Group on 12 April 2019 and awaiting their clarification.

On August 2020, the land clearing was confirmed at an area not under the control of Kwantas and also not committed by Kwantas.

12 April 2019 TH Plantations Group: Hydroflow Sdn Bhd via Wilmar

Mighty Earth Rapid Response Report 14

News/Report Link Status: Closed (Resolved)

Subject Matter:

Allegations that ISF had sourced CPO or CPKO from the group who are involved in deforestation activities.

Progress Update:

ISF did not source directly from TH plantations. The sourcing of PKO from TH plantations via PGEO, Wilmar.

ISF clarified with Wilmar on 18 April 2019; Wilmar confirmed that the deforestation allegation is untrue after their investigation with Aidenvironment, as the land clearing happened outside the concession of Hydroflow. This is included in Wilmar’s updated ineligible grievance list as of April 2021.

12 April 2019 Genting Plantations Berhad

Mighty Earth Rapid Response Report 14

News/Report Link Status: Monitoring

Subject Matter:

Allegations that ISF had sourced CPO or CPKO from the group who are involved in deforestation activities.

Progress Update:

ISF did not source from Genting Plantations Berhad since November 2018.

ISF has engaged with Genting for the allegation on 12 April 2019. Genting Plantations Berhad has issued a statement on 29 April 2019 and explained as below:

  1. The HCS report is being finalized by Aidenviroment and they will submit for peer review once is ready
  2. A Stop-work order was put on the new land clearing.

ISF will continue to monitor its implementation plan and update the grievances log whenever there are changes in progress.

25 January 2019 ISF (self-reported)

Chain Reaction Research

News/Report Link Status: Closed (Resolved)

Subject Matter:

Allegations that ISF is one of the leakage refineries without any NDPE policy in place

Progress Update:

ISF has established the Sustainability Palm Oil Policy covering NDPE elements and dashboard in 2018.

ISF will continue to maintain an open and transparent two-way dialogue with our key stakeholders and provide regular updates on our sustainability work. The statement as attached.

1 October 2018 Wilmar

Greenpeace The Final Countdown

News/Report Link Status: Monitoring

Subject Matter:

Alleged buying from groups that are deforesting and land grabbing

Progress Update:

7th Dec 2018 Wilmar has issued a joint statement with Aid Environment as well as supported by Unilever and Mondelez on the following

  • Wilmar will implement a “Suspend then engage” based on verified proof starting Jan 2019.
  • Group level maps have been a condition for trade for all new suppliers. These maps will be uploaded to Aidenvironment supplier group mapping platform since May 2018.
  • A “Reengagement Protocol” will be published specifying the time-bound process to engage suppliers that have been suspended, including the terms and conditions to resume sourcing.

28th Sep 2018 ISF engaged with Wilmar and they urged Greenpeace to adopt a collaborative mindset and work with the palm oil industry to take genuine and positive action.

19 September 2018 Prosper Group

Greenpeace Final Countdown

News/Report Link Status: Monitoring

Subject Matter:

The Final Countdown: Now or never to reform the palm oil industry.

- Alleged clearance of an estimated 25,000 hectares of forests including an estimated 12,000 ha in the last four years since obtaining a lease for the palm oil development project in 2010. The clearing is allegedly in related party ownership in PNG concession

Progress Update:

ISF has reached out with Prosper Group on 21st Sep and they replied that BOPPL is not linked to them.

For further engagement, ISF has partnered with Proforest to do one of the site assessments of Prosper Group located in Peninsular Malaysia in September 2018. Relevant reports already communicated to Prosper.

On 19 Sep 2019, Prosper sent the second progress report to ISF for updating:

  1. NDPE Engagement activities
  2. Implementation plan
  3. Grievance management

ISF will continue to monitor the action plan for the Bewani concession restoration/ conservation project.

On March 2020, Prosper has published a group NDPE policy and their time-bound implementation progress.

On November 2020, Prosper has published their first progress report on their recovery plan (from March to September 2020).

17 May 2017 Felda Global Ventures

RSPO

News/Report Link Status: Monitoring

Subject Matter:

Alleged abuse of human rights and labour in Felda Global Ventures (FGV) plantations of Malaysia.

Progress Update:

Chain Reaction Research and Greenpeace, plus a case investigated by RSPO. Allegations:

  • FGV in Kalimantan’s concession had cleared 1600 Ha peat forest
  • On the 26th of July 2015, WSJ ran an article by Syed Zain Al – Mahmood alleging that Felda has breached labor conditions in its plantations. The allegations are:

    - That forced labor is being used

    - The workers are not paid minimum wages.

    - That their health and working conditions are neglected and

    - Their employers withheld their passports

  • Further references include The Wall Street Journal and Rainforest Action Network

RSPO suspended FGV’S RSPO Certification due to seven non-compliances highlighted by the Control Panel. FGV’s Response to RSPO’s Complaints Panel’s Letter dated 13th January 2020.

FGV has published their progress and effort in addressing the grievances via their website, details as follow:

Updates in October 2017 on social compliance.

Updates in January 2018 on RSPO certification status and peat restoration master plan.

Updates in April 2018 on time abound action plan.

Updates in May 2018 on the commitment to NDPE Policy released in June 2018.

Following from FGV Holdings Berhad’s public statement dated 30th November 2018 in respect of the findings of the Complaints Panel (CP) of the Roundtable on Sustainable Palm Oil (RSPO) and our letter to the business partner on “FGV’s Commitment to Roundtable of Sustainable Palm Oil (RSPO)” dated 7th December 2018, the company is pleased to report on its progress in Serting Estates that is the subject of the RSPO’s investigations as per document.

FGV released a media statement to reiterate their commitment to human rights, though the raised articles by the Associated Press (1 & 2) were not referenced.

FGV issues response to the U.S. CBP's Detention Order.

FGV publishes the Fair Labour Association's (FLA) assessment report on FGV's action plan to enhance labour practices.

FGV provides updates regarding their engagement with US CBP to resolve the ongoing matter.

FGV released a media statement in response to the article and reiterates their commitments to human rights and labour standards.

FGV provided a press release on 31st March 2021 to address US CBP’s WRO with their updated sustainability initiatives.

FGV has also published a 43-page FLA assessment report on their progress of enhancing labor practices – this includes improving their:

    - Grievance mechanism

    - Remediation procedures

    - Worker representation structures