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. We launched our improved Sustainable Palm Oil Policy in December 2017 corresponding to our No Deforestation, No Peat, and No Exploitation (NDPE) Policy commitments, and applied to all ISF-owned facilities, operations, and our third-party suppliers. Our Policy incorporates major sustainable elements with a focus on traceability, certification, and ethical conduct. We update our policy according to the latest developments surrounding these elements. We also share our NDPE Policy Implementation Progress, keeping our value of transparency in our business operations to our stakeholders.

ISF’s Sustainable Palm Oil Policy

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 Identify And Reduce Greenhouse Gas Emissions Eliminate All Forms Of Illegal, Forced, Bonded, And Child Labour No Use Of Fire In Land Preparation Prevent And Prohibit Corruption Free, Prior, And Informed Consent No Use Of Paraquat And WHO Class 1A & 1B Chemicals Elimination Of All Forms Of Discrimination To Support Smallholders' Inclusion Into Our Supply Chains Complaint Handling And Grievance Communication And Transparency Our Suppliers Need To Comply
With Our Code Of Conduct
Traceability To Mill And Plantation 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 relating to palm oil production and paves the way for a long-term sustainable future if achieved successfully. ISF’s NDPE implementation scope is based on key areas identified below: 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

Policy Implementation Progress

We regularly update our Sustainable Palm Oil Policy implementation progress in keeping with transparency to our stakeholders. Our implementation progress is covered from all aspects within our supply chain, including traceability, certification, supplier engagement, collaborating projects, and NDPE policy updates.

12020 Progress
  • • 100% of direct supplying mills are MSPO certified
  • • Improved Traceability to Plantations level for CPO (75.6%)
  • • Organised a virtual supplier engagement workshop (restrictions due to Covid-19 pandemic)
  • • Assessed and aligned our business operations with relevant Sustainable Development Goals (SDGs)
22019 Progress
  • • Publishing our traceability data and Sustainability Dashboard on a quarterly basis
  • • Publishing our mill list covering palm oil (PO) and palm kernel oil (PKO) suppliers
  • • Achieved 100% Traceability to Mill level for both PO and PKO suppliers
  • • Risk profiling of all suppliers via our consultant
  • • Established our grievance procedure and log
  • • Established suppliers’ compliance to NDPE policy via engagement and workshop

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.

Components of the ISF Supplier Code of Conduct

  1. Legal Compliance
  2. Environment
  3. Human Rights (in line with the Universal Declaration of Human Rights)
  4. Labour Standards (in line with international Labour Organization Conventions)
  5. Health and Safety
  6. Anti-corruption
  7. Grievance Management
  8. Supplier Engagement and Verification

ISF’s Supplier Code of Conduct

Download PDF

Stakeholder Engagement

ISF believes in the power of collaboration and has held 3 workshops for our Crude Palm Oil and Palm Kernel Oil Producers, aimed at helping them to understand the NDPE commitments and the benefits of achieving at least the Malaysian Sustainable Palm Oil (MSPO) Certifications.

We look forward to conducting more holistic workshops to spread ISF’s sustainable policies, including introducing guided technical steps and training elements to further help our suppliers towards attaining sustainable production.