Supplying the world with 100% certified sustainable palm products that remain traceable to field of origin.
SIPEF is 100% RSPO compliant with all criteria for processing RSPO certified oil palm products in the Group. All of the SIPEF mills are RSPO Identity Preserved, with the exception of Dendymarker Palm Oil Mill, which is RSPO Mass Balance, due to a large proportion of its supply base currently being in the process of RSPO certification. Of our entire production area 71.73% of our Estates and 93.67% of our smallholders are RSPO certified.
Progress towards certification is reported annually within the RSPO Annual Communication of Progress (ACOP).
The percentage of uncertified Estates is mainly due to new developments in Indonesia. All of these have passed the RSPO required New Planting Procedure but do not qualify for an RSPO audit yet as they have not been issued a HGU by the Indonesian Government. Further challenges in Indonesia are due to a regulation requiring 20% of HGU areas to be under smallholders for all new and renewed HGUs. This requires us to add new smallholders to our supply base before we can assure they are RSPO certified.
SIPEF does not buy from any (non-certified) third party suppliers, with the exception of its own plasma and associated smallholders. These smallholders must in turn comply with our Responsible Purchasing Policy which ensures that all of our supply base is or will become traceable and certified to the RSPO Standard as soon as possible. It also provides the framework for the procedures required to select, monitor and if necessary expel plasma smallholders from our supply base. As such, while some of our supply base is not yet certified, all of it is traceable. In cases where these yet to be certified suppliers are within the supply base of one of our IP mills, the FFB is sold to third party mills in order to maintain the IP status of our mills.
Transparency: Traceability Tool
In order to communicate our progress towards achieving a 100% certified sustainable and traceable supply base, SIPEF has developed an interactive mapping application called SIPEF Maps. The SIPEF Maps Traceability Tool allows the user to interact through Google Earth in order to locate all of the SIPEF palm oil mills and their supply bases. The user is able to either click on the mill and discover its supply base or click on the supply base and discover the mill it supplies. There is additional information provided related to the certification status and production capacity of the entity in question.