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.

1Certified Sustainable Palm Oil

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

3Supplier engagement

100% Direct suppliers engaged

42% Indirect suppliers engaged

4Smallholder inclusiveness

1 Ongoing Smallholder Support Project until 2025

4 Smallholders engaged

Read more on ISF’s Partnerships and Collaboration

ISF’s Sustainability Palm Oil Policy Illustration

No new development on peatland regardless of depth No clearing of High Carbon Stock (HCS) and High Conservation Value (HCV) areas Reduce Greenhouse Gas Emissions and implement Climate Actions Eliminate all forms of illegal, forced, bonded, and child labour No use of fire in land preparation and no burning of waste Prohibit corruption and all forms of discrimination Free, Prior, and Informed Consent (FPIC) No use of paraquat, WHO Class 1A & 1B Chemicals, and those listed by Stockholm and Rotterdam Conventions Require suppliers to conduct SEIA when undertaking a new development Supporting smallholders' inclusion and other collaborations through multi-stakeholder landscape approaches Complaint handling and grievance management Protect human rights defenders, complainants, whistleblowers, and community spokespersons Requiring our suppliers to comply with our Code of Conduct Traceability to our suppliers’ mills and plantations RSPO & MSPO Certification compliance Biodiversity protection and prevent hunting

ISF’s Sustainability Palm Oil Policy Illustration

No clearing of High Carbon Stock (HCS) and High Conservation Value (HCV) areas
No new development on peatland regardless of depth
303 & 04
No use of fire in land preparation
Eliminate all forms of illegal, forced, bonded, and child labour
Free, Prior, and Informed Consent
Prevent and prohibit corruption
Elimination of all forms of discrimination
To support smallholders' inclusion into our supply chains
No use of paraquat and WHO Class 1A & 1B Chemicals
Communication and Transparency
Our suppliers need to comply with our Code of Conduct
Traceability to mill and plantation
RSPO & MSPO Certification compliance
Complaint handling and grievance

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)

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

  1. Legal Compliance
  2. Environment
  3. Human Rights and Labour
  4. Health and Safety
  5. Food Safety, Quality, and Traceability
  6. Anti-corruption
  7. Conflict of Interest
  8. Fair Competition
  9. Proprietary Information and Confidential Information
  10. Data Protection
  11. Grievance Management
  12. Supplier Engagement and Verification

ISF’s Supplier Code of Conduct

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