Responsible Purchasing Policy

Commitment

This Responsible Purchasing Policy confirms our commitment to purchase only Fresh Fruit Bunches (FFB) being sourced from plantations that are either already RSPO certified or are able to become RSPO certified within our RSPO Time Bound Plan.  The policy is relevant to any third-party suppliers of FFB that SIPEF sources from.  SIPEF restricts all of its third-party suppliers to smallholders with whom SIPEF has a Memorandum of Understanding, whose production location is known and mapped, are eligible to RSPO certification and comply with SIPEF’s Responsible Purchasing Policy. 

Our commitment ensures that we work only with smallholders that meet our selection criteria and with whom we can continue to work in proactive means to meet our legal obligations and support their RSPO certification. 

The following elements form the base criteria on which the local procedures are built to assess, select, monitor, and expel third party smallholder suppliers of FFB. 

Human rights

The smallholder can prove that the use of the land for oil palm does not diminish the legal, customary or user rights of other users without their Free, Prior and Informed Consent.

The smallholder can prove that the right to use the land for agricultural purposes is demonstrated and is not legitimately contested by local people who can demonstrate that they have legal, customary, or user rights.

Labour Issues

The smallholder confirms that child labour is prohibited on all operations of the supply base and no forms of forced or trafficked labour are used. [Reference documents: SIPEF Child Labour Policy, SIPEF Forced or Trafficked Labour Policy]

The smallholder can prove that pay and employment conditions for workers or contract workers always meet at least legal or industry minimum standards. 

The smallholder confirms that any form of discrimination is prohibited and there is no gender related discrimination with regards to employment or pay. [Reference documents:  SIPEF Sexual Harassment Policy, SIPEF Equal Employment Opportunity Policy]

The smallholder ensures that the working environment under its control is safe and without undue risk to health. [Reference document: SIPEF Occupational Health & Safety Policy]

Environment

The smallholder can prove that there is no new planting on peat, regardless of depth, after 15 November 2018, and all already operated peatlands are managed as per the best management practices. [Reference document: SIPEF Responsible Plantations Policy]

The smallholder confirms that land clearing after 15 November 2018 did not and does not cause deforestation or damage any area required to protect or enhance High Conservation Values (HCVs) or High Carbon Stock (HCS) forest. HCVs and HCS forests in the managed area are identified and protected or enhanced.

The smallholder confirms that fire is not used for preparing land and is prevented in the managed area.

Progress Reporting Guidelines

All SIPEF operations are to maintain records detailing the number and hectares of independent and plasma smallholders engaged, the number and hectares of their management areas in progress to and RSPO certified.  All of our smallholders have their supply bases mapped and can be viewed in our web-based application, SIPEF MAPS.  Our progress to achieve 100% of our supply base RSPO certified is reported annually to the RSPO through their Annual Communication of Progress and is accessible to all stakeholders.