About Palm Oil Policy
Committed To Sustainable Productions And Responsible Sourcing
ISF is committed to the sustainable production and responsible sourcing of palm oil in our supply chain by applying the three pillars of sustainability – environmental protection, social development, and economic development to our operations. Our Sustainable Palm Oil Policy was launched in December 2017 corresponding to our No Deforestation, No Peat, and No Exploitation (NDPE) Policy commitments, and incorporates major sustainable elements with a focus on traceability, certification, stakeholder collaborations, and ethical conduct.
Our policy is updated according to the latest developments surrounding the above NDPE elements and is applied to all ISF-owned facilities, operations, and our third-party suppliers. We also share our NDPE Policy Implementation Targets and Progress, consistent with our value of being transparent in our business operations to our stakeholders.
ISF’s Sustainable Palm Oil Policy
Policy Implementation Targets and Progress
We update our Sustainable Palm Oil Policy’s implementation progress half-yearly to monitor our advancement towards achieving a deforestation-free supply chain. Our implementation targets and progress covers the scope of our policy including all aspects within our supply chain.
46% sourcing of RSPO certified oils
11% sourcing of MSPO certified oils
100% Traceability to Mills
88% Traceability to Plantations (CPO and CPKO)
Read more on ISF’s Traceability
100% Direct suppliers engaged
42% Indirect suppliers engaged
1 Ongoing Smallholder Support Project until 2025
4 Smallholders engaged
Read more on ISF’s Partnerships and Collaboration
No Deforestation, No Peat, No Exploitation (NDPE) Policy
The NDPE policy covers the best practices of sustainability, including the environmental and social aspects relating to palm oil production, and paves the way for a long-term sustainable future if achieved successfully. ISF’s Sustainable Palm Oil Policy and its implementation scope are largely based on the components of the NDPE policy.
Overview of NDPE Policy and additional supporting commitments from existing policies:
- Sustainable Palm Oil Policy
- Environmental Policy
- Occupational Health & Safety Policy
- Quality Policy
- Supplier Code of Conduct
- Ethical Policy
- Food Safety Management Policy
- Corporate Sustainability Initiatives (CSI)
Environment
- No Clearing of HCS/HCV areas for new plantings
- No new development on peatland
- No use of fire in land preparation and no burning of waste
- Prevent pollution, reduce waste and optimize consumption of resources
Human Rights
- No exploitation of indigenous peoples’ and local communities rights and uphold FPIC principles
- Fair and equal treatment without discrimination
- Freedom of association/collective bargaining
- No illegal, forced, bonded or child labour
- No harassment, threats, abuse or intimidation
Labour and Health & Safety
- Adhere to responsible recruitment practices for all labour
- Prohibit use of WHO Class 1A and 1B chemicals
- Provide safe and invest in employees
- Continuously improve to prevent injuries and minimize accidents
- Implement an OSH management programme
Social
- Support smallholder inclusion in sustainable supply chains
Governance
- No corruption/uphold ethical standards
- Comply with all applicable and relevant national laws
- Engage and verify suppliers against sustainability commitments
- Implementation of principles of the Ethical Trading initiative Base Code
Food Safety & Quality
- Safety and hygienic, high quality products
- Maintain and continually improve quality management
Cross-cutting commitments
- Build traceable and sustainable palm oil supply chain
- Support sustainability certification schemes
- Ensure transparency and open communication with stakeholders
- Provide an effective grievance mechanism accessible to stakeholders
- Comply with all applicable international, national and local laws and regulations
- Carry out corporate sustainability initiatives
Supplier Code of Conduct
ISF’s Supplier Engagement Workshop held on 31 July 2019 at Setia Convention Centre, Selangor, featuring a representative from the Malaysian Palm Oil Board (MPOB)
Published in 2017, ISF’s Supplier Code of Conduct defines the basic requirements that our suppliers must adhere to and implement throughout their business, including full compliance with applicable laws, environmental, and social and corporate governance standards.
Along with our Sustainable Palm Oil Policy, the Supplier Code of Conduct is updated in 2021 consistent with the latest components required in the NDPE policy.
Components of the ISF Supplier Code of Conduct
- Legal Compliance
- Environment
- Human Rights and Labour
- Health and Safety
- Food Safety, Quality, and Traceability
- Anti-corruption
- Conflict of Interest
- Fair Competition
- Proprietary Information and Confidential Information
- Data Protection
- Grievance Management
- Supplier Engagement and Verification
