Our sustainability as a palm oil company extends to all our suppliers. Most notably, our oil palm supply chain incorporates several external parties, mostly independent smallholder farmers and cooperatives, from whom we purchase additional palm fruit for processing at all our mills (except for our West Papua operations). We recognize that these suppliers have social and environmental impacts and, hence, their performance in managing those impacts directly affects our overall performance in developing sustainable palm oil.
In line with our commitment to responsible development and sustainability and recognizing the social and environmental impacts of our fresh fruit bunch suppliers, we believe it is necessary to balance local economic growth with environmental protection and social welfare. We practice screening and due diligence of all our suppliers before beginning our contract, which will then be reviewed or assessed periodically. All our vendors and suppliers must meet our environmental, health, safety, and quality standards as well as our Sustainability Policy. Vendors are also required to sign an Integrity Pact, included in the contract, stating that they will follow our standards on business ethics. Failure to comply with the Integrity Pact will result into contract termination.