Positive Social Impacts
SIPEF believes in being a responsible employer and a “good neighbour”, and translates these concepts into realities.
Free and prior informed consent (FPIC) remains the bedrock foundation to long term conflict free access to land. All SIPEF plantations and those of its suppliers must adhere to FPIC principles as defined by the RSPO and Rainforest Alliance in detail. This includes the right to legal representation of choice, the right to say no, respect to legal and customary land tenure rights.
The concept of FPIC does not end with the transfer of land rights. All social aspects and impacts are identified and addressed through an ongoing stakeholder engagement process in line with the SA8000 social accountability methodology. This includes all aspects and impacts, including food security, as all stages of plantation development. Ongoing stakeholder engagements are audited annually for representativeness, transparency and other criteria as per our sustainability standards.
Where land conflict exists, acceptable conflict resolution processes are implemented and agreed by the parties involved. SIPEF’s conflict resolution mechanism includes the right to legal representation of choice. Any negotiations concerning compensation for loss of legal, customary or user rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Where there are or have been disputes, proof of legal acquisition of title and evidence that mutually agreed compensation has been made to all people who held legal, customary, or user rights at the time of acquisition is available and provided to parties to a dispute, and that any compensation was accepted following a documented process of FPIC.
Details of land conflicts are available on our Grievance Dashboard.
Fair labour practices are the norm in all our operations. Permanent and casual workers alike are employed according to labour regulations, and receive at least minimum wage. There is no tolerance for trafficked or forced labour; for the presence of under-age workers; or for any form of discrimination.
Safety at work is ensured through continuous training, by the provision of appropriate protective equipment, and by internal supervision and control systems. Every working day starts with a safety briefing.
Most of our employees and their families live within our operations. SIPEF provides them with housing, clean water, medical services, and ensures access to education for all their children.
Our operations form part of larger landscapes, natural and social. Long-term relationships are formed between them and the local communities.
A thorough Free, Prior and Informed Consent (FPIC) process is critical to the long-term success of any new operation.
Employment and business opportunities become available as the operations mature and grow. Regular consultations with the communities in contact with our operations are conducted.
Communities in our areas are mostly engaged in farming, including oil palm. We support their activities when they express their interest.
In Indonesia, SIPEF supplies planting material and management to hundreds of families, and guarantees access to the market at favourable terms.
In Papua New Guinea, about 3 700 smallholders supply fruit to our palm oil mills. They contribute half of the volume produced by Hargy Oil Palms. Hargy always gives priority to the smallholder crop.
Both in Indonesia and Papua New Guinea, SIPEF is more than a buyer, it is a partner, for the long term.