Our no deforestation commitment

Natural forests are critical carbon sinks and support the vast majority of the world's terrestrial biodiversity. They also play a vital role in supporting the livelihoods of millions of people, particularly Indigenous and local communities.

SIPEF has maintained compliance with a strict no deforestation, no new development on peat, and no exploitation (NDPE) commitment since 2015, which prohibits new developments in High Conservation Value (HCV) areas, High Carbon Stock (HCS) forests, peatlands, and fragile or marginal soils. 

In line with this commitment, SIPEF acquires land only after completing Free, Prior, and Informed Consent (FPIC) processes, social and environmental impact assessments, and integrated HCV–HCSA (High Carbon Stock Approach) assessments conducted by independent experts. In accordance with NDPE principles, SIPEF requires the recovery of any non-compliant development across its own operations and those of our smallholders.  

Our banana operations comply with the requirements of the relevant certification standards: Rainforest Alliance (RA), Fairtrade, and GlobalG.A.P.

Monitoring for a deforestation-free supply base

SIPEF implements a third-party monitoring system to ensure compliance with our no deforestation commitment.

The system covers our own estates, as well as our fresh fruit bunch (FFB) suppliers in Indonesia and Papua New Guinea, with a focus on detecting and verifying land-use changes within and around concession areas. In total, 157 791 hectares are monitored, of which 84% are located within our own concessions and areas under the SIPEF Biodiversity Indonesia (SBI) programme, and 16% within smallholder supplier areas.

Responsible sourcing

All third-party FFB suppliers must comply with SIPEF’s Responsible Purchasing Policy.

The Responsible Purchasing Policy supports our suppliers, all of whom are oil palm smallholders, on their journey towards certification. The policy ensures that they are, or will become, certified to the RSPO standard, wherever and whenever possible. To achieve this, we actively support smallholders in obtaining certification.

The policy also provides the framework for the procedures used to select, monitor and, where necessary, suspend, exclude, or expel smallholders in our supply base. These procedures are aligned with SIPEF's Responsible Plantations Policy and are based on requirements relating to RSPO certification, legality, production location mapping, ethical business conduct, human rights and labour standards, and environmentally responsible production.

Managing supplier compliance

We manage and support supplier compliance through a structured internal control system.

This system includes training and awareness programmes, inspections, and internal audits conducted by our smallholder and sustainability departments.

When non-conformances against critical criteria are identified, we engage with suppliers to address the root cause. These critical criteria include, among others, our commitments to no deforestation and no new developments on peat. If issues are not resolved within the required timeframe, smallholders may be suspended.

Suspensions are lifted only once non-conformances have been remedied. Throughout the process, smallholders are supported to ensure compliance can be restored.

More details are available in SIPEF’s smallholder engagement framework.

Traceability

SIPEF is a leader in traceability. All of our commodities are fully traceable to their production location.

Traceability is a fundamental principle for sustainability in agricultural commodity supply chains. It is essential not only for ensuring food safety, but also for meeting consumer demands for transparency, complying with regulations, and improving supply chain management and efficiency.

SIPEF invests in cutting-edge technology to enhance efficiency, transparency, traceability, and overall sustainability performance across our operations. All sustainability certifications with which SIPEF complies require full traceability of sourcing to substantiate sustainability claims of products.

Further details on SIPEF’s certified palm oil production can be found in RSPO audit summary reports, accessible by searching for "SIPEF group":

• here, with regard to the RSPO Principles and Criteria;
• here, with regard to the RSPO Supply Chain Certification Standard.

Progress towards RSPO certification is reported annually through the RSPO Annual Communication of Progress (ACOP).

Our banana plantations and packing stations are all certified under the Identity Preserved (IP) supply chain model, in accordance with the requirements of Rainforest Alliance (RA) certification.

GeoSIPEF

GeoSIPEF provides comprehensive traceability insights to our customers.

GeoSIPEF is an interactive digital mapping application that uses satellite technology alongside drones, to enhance supply chain transparency. The platform digitally maps production areas and sustainably certified volumes while monitoring for fire and deforestation. It also provides additional information, including production capacity and the proximity of operations to key protected conservation areas and biodiversity-sensitive landscapes.

Since 2024, GeoSIPEF has included a customer portal that enables secure tracking of purchased volumes from plot to mill to shipment, aligning with European Union Deforestation Regulation (EUDR) requirements.