• SUSTAINABILITY POLICY
  • SAFEGUARDING BIODIVERSITY AND ECOSYSTEM SERVICES
  • BEST MANAGEMENT PRACTICES FOR SUSTAINABLE AGRICULTURE
  • REDUCING NET GREENHOUSE GAS EMISSIONS
  • FIRE MITIGATION
  • RESPECTING HUMAN RIGHTS
  • OCCUPATIONAL HEALTH, SAFETY AND WELLBEING
  • ADVANCING EDUCATION
  • PROMOTING SUSTAINABLE LIVELIHOODS
  • TRACEABILITY AND RESPONSIBLE SOURCING
  • GRIEVANCE HANDLING

We strengthened our commitments to sustainable development with the launch of our Sustainability Policy in May 2017. Key principles of our policy are:

  1. No Development on High Carbon Stock (HCS) Forests
  2. No Development on High Conservation Value (HCV) Areas
  3. No Development on Peat
  4. Zero Burning and Fire Prevention
  5. Reducing our environmental impact and protecting biodiversity
  6. Respect of land tenure rights and the requirement for Free, Prior, and Informed Consent (FPIC)
  7. Handling of complaints, grievances and conflict resolution
  8. Community Empowerment through Corporate Social Responsibility (CSR) programs
  9. Smallholder support and inclusion into our supply chain
  10. Supporting Worker Rights, Health and Well-Being
  11. Zero tolerance for child labor, forced labor, or bonded labor
  12. Creation of a fully transparent and traceable supply chain
  13. Supplier due diligence and grievance mechanism
  14. Continuous Improvement
  15. Monitoring Evaluation and Reporting

Sustainability Policy Implementation 

Our Sustainability Policy Implementation Framework is designed to facilitate compliance with our policy and sustainability regulations and to support continuous improvement of our sustainability performances.

Our performance is monitored by regular data collection, surveys, assessments, inspections and audits to assess policy compliance and address any gaps. In accordance with the results of evaluations, we review and update our policies, procedures and management plans as needed.

Our monthly newsletter - ‘Sustainability Journey’ - provides updates on recent activities that have been undertaken as we strive to attain the highest standards in sustainable business practices.

We welcome feedback from stakeholders to further advance and improve our operations.

 

 

 

Goodhope follows the regulations defined by the RSPO New Planting Procedures and the High Carbon Stock (HCS) Approach to mitigate negative impacts of new developments. Our aim is to maintain levels of biodiversity, safeguard the beneficial services provided by natural ecosystems, and maintain the resources valued by local communities at our concession locations. We believe that this can be achieved by regulated land-use planning and effective conservation management and monitoring consistent with the results of High Conservation Value (HCV) and HCS assessments.  

1.     Conservation of Biodiversity and Protection of Rare, Threatened and Endangered Species

Our efforts to conserve biodiversity and protect endangered species in our concession areas are implemented primarily through the principles of the HCV approach. This includes the identification of areas that support high levels of biodiversity, and that provide habitats for rare, threatened, or endangered (RTE) species, as well as RTE ecosystems, habitats or refugia. These HCV Areas are designated as ‘no go’ areas for development and suitable management and monitoring plans are established with the aim to protect the flora and fauna found in the HCV areas.

A key component of our conservation management plans is educating our employees and local communities on the importance of protecting all RTE species, including those species classified in the IUCN Red List as Vulnerable (VU), Endangered (EN) and Critically Endangered (CR) at a global or regional level, or whose trade is regulated under international agreements (e.g. CITES), as well as nationally protected species. Routine monitoring of HCV Areas is conducted to maintain biodiversity inventories and to facilitate the development of improved conservation management.

2.     Watershed Protection and Soil Erosion Control

The presence of natural land cover on steep hill slopes, along water courses and around water bodies can prevent soil erosion, slow the run of water, stabilize river banks and help to filter-out water pollutants from surface run-off. Benefits are multiple, including flood control, preservation of water quality and soil retention. On account of such values, we aim to maintain natural land cover in riparian zones and on steep hill slopes and strive to rehabilitate degraded land cover in these areas across all concessions.

3.     Preservation of Social and Cultural Values

We recognize that natural ecosystems can contribute directly to human well?being by providing significant spiritual, recreational, health and economic benefits, including products such as food and timber and cultural services. Such areas of social or cultural importance are therefore identified in HCV assessments by engagement with communities and are maintained as community-use areas. These areas are managed in such a way that allows people to have access to important resources while ensuring that the quality of the resources does not deteriorate or degrade.

4.     Conservation of High Carbon Stock (HCS) Forest

We affirmed our commitment to identify and protect High Carbon Stock (HCS) forest in our concession upon the launch of our Sustainability Policy in May 2017. Prior to any land clearing or new development, we ensure that comprehensive HCS assessments are carried out by accredited bodies, and that the assessments are peer reviewed as prescribed by the HCS Steering Group. Outcomes of the assessments will be used as a basis for implementing adaptive management and monitoring plans to achieve long-term protection of HCS forest areas while meeting the Social Requirements of the HCS Approach.

5.     Protection of Peatland

Recognizing the importance of peatlands in the provisioning of ecosystem services – in particular their role in global climate regulation – Goodhope has established a ‘no development on peat’ policy. We pledge to no conversion of peatland (soil with an organic content greater than 65%) and have been implementing this commitment in all of our concessions since the launch of our Sustainability Policy in May 2017.

 

We aim to ensure the long-term productive potential of our plantations by executing Best Management Practices that maximize the efficient use of resources for optimal productivity while minimizing negative environmental impacts.

Environmental Impact Assessments are carried out prior to new land developments in compliance with the relevant environmental legislation that applies in the area of the proposed operation. The outcomes of these assessments provide the management guidance for preventing environmental degradation. Monitoring activities are conducted as defined by the assessment and the analysis of environmental performance data contributes to the evaluation and improvement of our environmental management plans.

We work hard to make sure that our operational procedures are reviewed and revised as necessary to comply with best available techniques and best environmental practices.  

Key principles include:

  •  Responsible sourcing of high quality oil palm seeds, proper handling of seedlings, and optimal planting for maximum palm growth and long-term
  •  Planting of ground cover crops as a means to enrich soil and protect it from erosion, conserve soil moisture and prevent pest damage.
  • Minimal use of chemical fertilizers through implementation of our Fertilizer Efficiency Program, incorporating optimal sourcing and application of fertilizer and approaches to reduce losses from the agricultural system.
  •  Implementation of Integrated Pest Management to address major sources of pest and disease in oil palm e Our aim is to implement effective control measures in order to minimize the potential loss of yield due to pest or disease outbreak, using natural alternatives for pest management whenever possible to reduce the need for the application of chemical pesticides.
  • Careful regulation of chemical applications (fertilizer and pesticides) to minimize the associated environmental and human health risks.
  •  Nutrient recycling by the application of organic fertilizer, produced from the waste products from our mills (empty fruit bunches and palm oil mill effluent).
  •  Terracing on sloped terrain (slope 6- 20°) constructed with conservation bunds and silt pits to reduce run-off and trap soil particle This minimizes soil erosion and nutrient wash-off, helps to prevent siltation and sedimentation, and improves soil moisture retention.
  •  Use of water management systems to maintain the water table at optimum levels and prevent over-drainage to help maintain soil moisture and the physical structure of the soil.
  • Proper implementation of techniques such as frond pruning and ablation to promote and sustain vigorous palm growth and high yields.
  •  Responsible harvesting to completely recover all Fresh Fruit Bunches (FFB) at the desired harvesting interval and ripeness standard, in a manner that achieves maximum yield of the highest quality.
  • Implementation of water recycling procedures for mill operations as a means to minimize water consumption.
  • Processing of waste water, monitoring of water quality, and implementation of practices to reduce pollutant levels and prevent the pollution of natural waterways.

 

Recognizing global climate change as an urgent environmental problem, Goodhope is committed to progressively reduce the net greenhouse gas emissions resulting from our operations.  

Our efforts to reduce our carbon footprint incorporate many integrated approaches aimed at conserving and enhancing carbon sinks and minimizing emissions of greenhouse gases (carbon dioxide, sulphur dioxide, methane and nitrous oxide). Initiatives are developed based on the evaluation of carbon stock assessments and calculation of greenhouse gas (GHG) emissions, which provide the necessary framework and guidance for the company to implement actions to reduce the impact of its operations on climate change.

1.     Waste Reduction, Recycling, and Energy From Waste Initiatives

By promoting and implementing waste reduction, recycling, and energy-from-waste initiatives, we curb greenhouse gas emissions by avoiding the need to send waste to landfill and by providing renewable energy sources:

  • Boilers in our mills are fuelled by organic waste materials (shell and fibre from FFB). Through this recycling strategy we reduce GHG emissions from organic waste and generate a source of renewable energy to power our boilers.
  • Digested palm oil mill effluent (POME) and other organic waste from our mills (empty fruit bunches) is recycled to produce organic fertilizer by composting and treatment processes.
  • Reduce, re-use, recycle practices for waste management are promoted across our operations.

2.     Responsible Land Management and Carbon Sequestration

In all our concessions procedures are enforced to conserve carbon sinks and minimize emissions of greenhouse gases from land conversion:

  • We enforce a Zero Burning Policy for all land clearing activities.
  • Areas of forest that contain rich carbon stocks are avoided for any new plantation development.
  • The conservation areas within our concessions retain carbon and are managed to prevent degradation and ensure carbon sequestration.
  • We aim to apply best management practices to maintain the capacity of soil carbon sequestration in planted areas. The principal way we do this is by minimizing soil subsistence through good water management.
  • Through the implementation, review and improvement of our fertilizer efficiency program, we can reduce the need for the use of nitrogen fertilizers. By doing so we are able to reduce nitrous oxide emissions generated from nitrogen fertilizer.

3.   Energy Efficiency

We aim to maintain optimal efficiency in the generation of electricity by our mills by recycling production waste (shell and fibre from FFB) to generate electricity and by conducting regular monitoring and maintenance processes to optimize boiler performance and prevent excess emissions. Furthermore, we encourage all our subsidiaries to commit to reduce energy consumption and adopt an ‘energy saving’ attitude by avoiding any wasteful / inefficient consumption of energy.

     

Throughout each dry season, our plantations and surrounding areas are at risk from the outbreak of fires. To mitigate the risk, we have in place policies and procedures that will help to prevent fire outbreaks and reduce damage caused in case of fire:

  • A Fire Danger Index (FDI) is used to assess and communicate the level of fire risk.
  • Satellite Information Systems providing information on hotspots are used to identify and communicate the location of any potential fires detected in or near to our concessions.
  • Regular patrols are conducted in and around plantation sites during the dry season, including checks from fire towers.
  • Fire awareness campaigns are implemented for employees working at our plantations and for nearby local communities to communicate information on the impacts of wildfires, preventive actions and response plans in case of a forest fire.
  • Regular fire drills and exercises are conducted to ensure the preparedness of employees in case of fire.
  • Routine checks are made to ensure that adequate firefighting resources are available on-site in advance of the dry season.
  • Training programs ensure that fully trained emergency fire fighter response teams are on hand in all plantation sites.

 

Community Involvement

Since 2008, we have provided firefighting equipment and training to communities surrounding our plantation locations as a precautionary and preventive measure towards communities assisting themselves and providing support in case of a fire outbreak. We have received certificates from the Ministry of Forestry (Manggala Agni) for the establishing Community ‘Fire Alert Capacity’ in villages surrounding our plantations.

 

 

      

 

 To ensure that our obligations to respect the rights of our workforce and local communities are sufficiently fulfilled, we aim to always follow appropriate procedures that maintain consistency with the following guidelines and principles:

  • Universal Declaration of Human Rights;
  • UN Declaration on the Rights of Indigenous Peoples;
  • UN Guiding Principles on Business and Human Rights;
  • International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work and the Fundamental ILO Conventions
  • UN Convention on the rights of children (UNCRC)
  • UN Food and Agriculture Organization (FAO) Voluntary Guidelines on the Responsible Governance of Tenure;
  • RSPO FPIC guidelines (2015).

1.     Land Tenure Rights and Free, Prior and Informed Consent (FPIC)

To fully respect land tenure rights and the right of local communities to freely make informed decisions regarding corporate activities, prior to new development, Goodhope pledges to:

  • Facilitate appropriate assessments to identify indigenous communities, their rights and their perceptions of plans for oil palm plantation development.
  • Implement fair, transparent and participatory community engagement approaches in accordance with Free, Prior and Informed Consent (FPIC) principles.
  • Consult with local communities and consider their aspirations in any contributions to community development.
  • Document and monitor the process of negotiating and building agreements to help to timely and appropriately address any emerging problems and concerns.
  • Provide appropriate and adequate training for employees involved in community engagement.

2. Ethical Employment Practices and Labor Standards

Goodhope commits to free and fair labor principles and aims to always adopt ethical employment practices including equal opportunities and protection against discrimination:

  • Workers are selected for employment based on their ability to fulfil the respective roles and responsibilities and practices that safeguard against any unlawful or unethical discrimination are implemented to promote fair treatment irrespective of gender, ethnicity, or any other personal characteristics.
  • Any form of forced or bonded labor in the company operations is prohibited and documentary evidence is requested by the company to prevent child labor and to facilitate compliance with national regulations on the minimum age of employment.
  • A total of 11,822* individuals are employed across our upstream operations, including our plantations and regional office in Jakarta.
  • Regulations are in place for compliance with all national and local laws and standards on working hours, minimum wage, overtime and annual leave.
  • Women employees represent 23%* of our workforce for upstream operations and initiatives are promoted to protect the rights of women in all the Group’s workplaces.
  • The rights of personnel to join associations and unions are fully respected.
  • Safe and healthy living and working conditions are promoted through the implementation of an Integrated Management System for ISO 14001 and OHSAS 18001.

*Figures correct as at 31st August 2018.

3. Community Welfare

Goodhope is committed to ensure that Social Impact Assessments are completed prior to development by the company in order to establish an indication of baseline welfare factors and potential social impacts due to proposed company activities. Management plans are developed with the aim to mitigate negative impacts and to enhance welfare.

Our initiatives include the provision of infrastructure to ensure that workers and their families have access to basic facilities and services, including clean water, decent housing, and health and education facilities. We aim to maintain and improve services and facilities as necessary to ensure that national standards are constantly met and work to integrate employee health services with community health services so that local communities have access to affordable and better health services. Realizing the potential negative effects that the development of plantations may have on food security for local communities, we also commit to develop and implement appropriate adaptive management plans for sustained sufficient food availability.    

 

4. Cultural Preservation

Recognizing the right of access to and enjoyment of cultural heritage, we encourage ethnic and religious diversity and help to preserve local cultures and traditions, enabling communities to maintain their social cohesion and retain their unique identity. Over the years we have contributed to the building of religious institutions and have supported cultural, religious and societal events and festivities. One of our more notable initiatives has been our efforts to continue to preserve the Dayak Culture in Central Kalimantan in Indonesia. Our efforts have included building a Dayak Cultural Center in both Bangkal village and Terawan Village in order to preserve Dayak dance, sculpture, art and music.

 

5. Grievances

We acknowledge the right to lodge a statement of complaint against an individual or company and have in place a Whistleblowing Policy to facilitate the reporting of complaints such as illegal or unethical conduct.

  

Maintaining safe working environments at the sites in which we operate is a top priority. Relevant procedures and action plans are developed based on the outcomes of health and safety risk analyses with the aim to reduce and prevent hazards and risks.

We provide personal protective equipment and training on health and safety to enable all employees to safeguard themselves while carrying out their duties at work.

Safety Performance at our plantations and mills is monitored by a series of regular assessments, inspections and audits. We calculate Safety Performance Indices (SPI) as a measure of our progress towards meeting health and safety goals and continue to evaluate our performance and develop and implement action plans to enhance the delivery of our commitments.

The polyclinics at our plantation locations are established to deal with the treatment of injuries, illnesses and medical emergencies and provide employees with services such as medical tests, immunizations and family planning.

We provide employees with opportunities to partake in a range of activities and programs that are organized and delivered to enhance the wellbeing of participants. Amenities such as recreational and leisure facilities have been provided for employees in plantation locations.

We believe that education is the right of every child and a key pillar for community growth and development.

We aim to ensure that all children living in and around our estates are given opportunities to obtain a quality primary education and to develop skills to improve their future outlook.

 Agro Harapan Foundation

Our educational programs are managed by the Agro Harapan Foundation (Yayasan Agro Harapan). Established in 2008, the Foundation aims to improve access to education and strengthen the quality of education available for students from kindergarten right through to senior high school.

The Agro Harapan Foundation assists a total of 69 schools, attended by more than 7000 students. 13 schools are directly owned by the foundation.

  • We provide support for the construction of additional classrooms and other infrastructure, and for repairs to school buildings.
  • We employ assistant teachers to work in schools as required in order to attain teacher: student ratio standards and to improve the quality of teaching.
  • We provide educational resources for all subjects to assist teachers to convey their messages an enhance student learning.
  • We assist teachers by providing training to improve their teaching skills and to improve their knowledge of subject areas.

We coach School Principals to evaluate school assessment results to develop achievable 3-year action plans.

Per December 2017  
Total Schools 69
Total Teachers 105
Total Students 7,711
 
 

We support programs and activities aimed at developing sustainable livelihoods for the long-term benefit of the communities surrounding our plantation operations.

Our main aim is to enhance the capacity of local communities to participate in, contribute to, and benefit from sustainable income opportunities.

Some key initiatives are:

  • Promoting activities such as handicraft production and vegetable farming, including the provision of training opportunities to encourage the development of small businesses in local communities.
  • Promoting waste reduce, re-use and recycling programs, including the implementation of Waste Bank Projects to enable employees and local communities to collect and recycle waste.
  • Organizing vocational training and short courses to increase the employability of individuals from local communities.
  • Implementing smallholder schemes to enable communities to benefit from inclusion in our supply chain.

We aim to ensure that the right programs are delivered to meet the aspirations of local communities and that sustainable development is promoted.

Goodhope is working on creating a fully traceable supply chain inclusive of smallholders and outgrowers that supply FFB to our mills. 

We expect all suppliers to identify and mitigate negative impacts on environment and human rights and to take action to comply with our Sustainability Policy.

 As part of our traceability and responsible sourcing programs, we are working towards:

  1. Development of robust responsible sourcing standards and procedures.
  2. Improvement of our monitoring systems to trace the supply of FFB and improve supply chain transparency.
  3. Implementation of supplier engagement and evaluation programs to communicate our responsible sourcing standards, to conduct supplier reviews and evaluations, and to provide feedback and guidance to suppliers as relevant.
  4. Smallholder mapping and assessment of sustainability risks.
  5. Implementation of suitable smallholder support programs.

We aim to resolve complaints through an open, transparent, and accountable grievance mechanism incorporating standardized grievance procedures and monitoring systems to effectively handle any grievances that may arise.

 In order to do so we commit to:

  •  Further improve our capacity to handle complaints and to work with relevant stakeholders to ensure fair and mutually agreed settlement is reached to resolve grievances.
  • Investigate each complaint independently and to address and resolve the issues in a fair manner, involving stakeholders in decision-making processes.
  • Follow agreed dispute resolution processes and monitor dispute resolution with sufficient documentation.
  • Develop mediation skills for relevant members of staff involved in handling grievances.
  • Invite candidates to serve as independent actors for any grievance-related investigations when necessary.

A Grievance Unit has been formed comprising designated representatives from the Grievance Handling Teams of our subsidiaries.  Members of the Unit are responsible for monitoring and evaluating the progress of grievances, including the production of activity reports and roadmaps for grievance resolution.  

Our Grievance Committee was established in July 2018 and currently comprises three external stakeholders. Committee meetings shall be held at quarterly intervals to conduct external evaluations of the grievances and the grievance resolution processes that are taking place.