Commitments

We strengthened our commitments to sustainable development with the launch of our Sustainability Policy in May 2017 and further revised in 2020 and 2022. 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

Click here to read our Group Sustainability Policy.

Our Sustainability Management Framework is designed to promote Sustainability Policy Implementation and to support continuous improvement of our sustainability performances.

Consultants and Partner Organizations provide valuable expertise and contributions to advance the implementation of our sustainability initiatives.

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

Goodhope encourages sustainable practices by its suppliers and engages with them to promote compliance with No Deforestation, No Peatland and No Exploitation (NDPE) principles. The Group’s Responsible Sourcing Policy applies to all of the palm-based materials the Company buys, including fresh fruit bunch, crude palm oil, palm kernel, palm kernel oil and derivatives.

Goodhope is genuinely concerned about the detrimental environmental effects of palm oil production, such as deforestation, loss of biodiversity and greenhouse gas emissions. To address the concerns, we implement processes to avoid, mitigate and remedy adverse impacts on the environment. We aim to:

• Develop and manage our plantations in a sustainable manner while maintaining levels of biodiversity, safeguarding the beneficial services provided by natural ecosystems, and protecting the resources valued by local communities.
• Implement measures to reduce energy consumption and greenhouse gas emissions across the Group’s operations.

HCV and HCS Approaches

Goodhope engages with experts and local communities to identify and safeguard conservation set-aside areas while recognizing the rights of local communities. 

Through High Conservation Value (HCV) and High Carbon Stock Approach (HCSA) assessments, we have identified more than 20,000 Ha of conservation set-aside areas, including:

• Forested 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
• Areas that are important for the provision of ecosystem services, e.g. riparian zones
• Areas of social or cultural importance
• Peatland forest

These areas with important environmental and social values have been identified with the involvement of local communities and are excluded from our oil palm plantation development plans. We engage with relevant stakeholders and experts to determine the most practical, economical and sustainable approaches to maintain and enhance conservation areas and the values they contain.

Safeguarding Biodiversity

Indonesia, where our plantations are located, is home to some of the richest biodiversity on Earth and the loss of biodiversity by the large-scale conversion of tropical forests to oil palm plantations

is an obvious concern. To safeguard biodiversity, Goodhope adopts stringent criteria and takes strong action to protect native animals and plants, especially Rare, Threatened or Endangered (RTE) species.

We recognize RTE species as those 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. HCV areas that provide habitats for RTE species, are set aside as conservation areas and suitable management and monitoring plans are established.

The poaching, hunting, capturing, extracting and trafficking of wild animals on our concessions is prohibited. However, we will respect the rights of indigenous peoples to engage in traditional and customary forms of hunting which are sustainable and we will work with them to ensure there is a designated time, place and manner for such hunting and that it is legal, non-commercial, and does not threaten ecosystems or harm RTE species.

Conservation awareness campaigns are regularly conducted among employees and local communities. Such programs provide information about the status of RTE species, the importance of biodiversity conservation and responsible measures to mitigate and resolve human-wildlife conflicts. Importantly, our engagement and capacity building activities focus not only on the importance of the forest as habitat for RTE species and biodiversity, but also on: i) the benefits that it can provide to human wellbeing and economic growth, and ii) the significance of species diversity in contributing to the health of the forest.

Fire Prevention and Mitigation

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 plantations to build Community ‘Fire Alert Capacity’.

Reducing Greenhouse Gas Emissions 

The consequences of global climate change are of great concern and so we must urgently reduce our greenhouse gas (GHG) emissions. We monitor GHG emissions resulting from our operations and search for viable methods for emissions reduction and mitigation. In doing so we aim to contribute to limiting global climate change.

Soil Health and Water Quality

Goodhope adopts Good Agricultural Practices in the management of its plantations to sustain soil fertility. 

Water and Energy Conservation

Conserving water is essential for the sustainable management and protection of water resources. At all palm oil mills, turbine cooling water is recycled and the use of condensate replaces the need for dilution water. Water is only used when condensate is insufficient. By applying water management systems in the mill we are able to achieve our target of water use intensity for palm oil processing: below 1.0 cubic metres of water per tonne of FFB processed.

Energy Conservation measures that improve energy efficiency and reduce energy use are implemented across our operations. Boilers for palm oil processing are powered primarily by organic waste products (mesocarp fibres, palm kernel shells) but quantities are not sufficient to completely replace the use of diesel. We aim to maintain optimal efficiency in the generation of electricity by our mills by conducting regular monitoring and maintenance improvements to optimize boiler performance and prevent excess emissions.

Agrochemical Reductions

Agrochemicals (pesticides and fertilizers) are applied in a sparing and responsible manner to protect crops from pests and to enhance crop yields while minimizing risks to the health of the environment. We do not apply any chemicals in riparian areas and we ensure that our workers are sufficiently trained and equipped to ensure the safe handling of any chemicals. 

Our Integrated Pest Management (IPM) systems combine compatible ecological, physical, biological, and chemical methods suitable for the field conditions to minimize the potential loss of yield due to pest damage. Recommendations and guidelines by the World Health Organization (WHO) are adopted for the exclusion of highly hazardous pesticides listed as Class 1A or 1B chemicals, or those subject to the Stockholm or Rotterdam Conventions.

We continue to seek alternatives to avoid the use of certain chemical pesticides and reduce overall use of pesticides. Measures include increasing barn owl populations to reduce the need for chemical rodenticides, manual weed management and planting of beneficial plants.

Our Fertilizer Efficiency Program is developed and implemented with the aim to reduce the use of chemical fertilizer per hectare of oil palm cultivated by increased use of organic options.

Waste Management

The main waste products from our palm oil mills are organic wastes such as empty fruit bunches (EFB), mesocarp fibres, palm kernel shells and palm oil mill effluent (POME). We reuse and recycle 100% of the organic waste generated:

• Palm kernel shells and fibre from FFB is used to fuel boilers in our mills.
• EFB undergoes composting treatment for use as organic fertilizer or is applied as mulch for weed control, prevention of soil erosion, and maintaining moisture in the soil.
• All treated POME is used for land application rather than being discharged to waterways.

Goodhope is committed to sourcing and processing traceable material that is produced in a manner that is legally compliant, and that is not linked to deforestation, peatland development or exploitation of human rights. We promote sustainable practices by our suppliers of palm and palm oil products and expect them to adhere to No Deforestation, No Peatland Development and No Exploitation (NDPE) principles.

To fulfil our Responsible Sourcing commitments, we:

• Engage with existing and prospective suppliers to clearly communicate our expectations and to trace the products and materials that we purchase.

• Evaluate the information on suppliers and undertake a gap analysis to determine if the company’s operations have the potential to involve in non-compliance with our policy.

• Publish Traceability Declarations, including lists of suppliers.
• Identify environmental and human rights risks in the supply chain.
• Maintain a Grievance List to document the actions we take towards suppliers that breach the principles of NDPE.
• Actively support smallholders, promoting practices that aim to increase the productivity, profitability, and sustainability of smallholder supplied commodities.
• Will cease to do business with any suppliers who are unwilling to uphold the principles of NDPE or repeatedly fail to miss the targets set in their time-bound plans.

Traceability Approach

In order for our products and materials to be considered traceable, we require the following information:

Suppliers to our Palm Oil Mills

There are three types of suppliers that deliver Fresh Fruit Bunches (FFB) to our palm oil mills:  our own estates, associated smallholders under a plasma scheme, and third-party suppliers. Most external fruit is delivered indirectly through FFB traders that source from independent smallholders and outgrowers.

Priorities for our upstream operations are:

• To know the origin of FFB coming to our palm oil mills.
• To promote sustainable production among suppliers.

Through supplier engagement conducted in collaboration with Daemeter Consulting, we have attained considerably improved understanding of the complex network of farmers and intermediaries that are involved in supplying FFB to our mills.

Smallholder Survey and Mapping

In order to demonstrate full traceability to source, Goodhope surveys and maps independent smallholders. A Data Management Platform provided by Cadasta organization is being used as a tool for data collection and mapping of independent smallholders. Digital data collection forms are used to collect supplier data using GPS-enabled smartphones during field visits. The data collection and mapping process involves visiting each individual smallholder, gathering information on the smallholders and the oil palm production area that they own, including geolocation.

Smallholder Support

Our Farmer Field School program has been developed in collaboration with Daemeter Consulting and aims to help independent smallholder farmers to improve crop productivity and adopt good agricultural practices. Through the program, we aim to help smallholder farmers to improve crop quantity and quality through the provision of technical support, promoting the long-term productive potential of their land and improving yields, while encouraging the reduced and responsible use of chemical fertilizer and pesticides. Such training provides a strong foundation for progressing to the sustainable certification of independent smallholders.

Suppliers to Our Refining and Specialty Fats Processing Facilities 

Our downstream refining and processing facility sources palm kernel and refined palm oil to produce a wide range of refined and fractionated oils and fats.

 Priorities for our downstream operations are:

• To ensure that all palm and palm-oil-based materials sourced is 100% traceable to mills.
• To engage with suppliers to promote our policy commitments and progressively work towards achieving traceability to plantation.
• To assess the environmental and human rights risks of all first-tier palm oil mill suppliers.
• To identify and address issues of supplier non-compliance with NDPE principles.

Breaches in Compliance

We deal with any complaints that involve third party suppliers in accordance with our grievance approach. For cases where there is no critical NDPE violation and where the supplier is willing to work on addressing the grievance of minor non-compliance, we will maintain the commercial relationship with the non-compliant supplier and engage with them to resolve the issue following the stages, steps and indicative timeline of our supplier grievance procedure.

Suspension Procedure

If at any time it becomes apparent that the supplier is involved in critical NDPE violation or is not willing to undertake the actions necessary to comply with NDPE principles, the Company will issue a “suspension of business” notification. We will temporarily suspend or indefinitely cease purchasing from the noncompliant supplier and then there may be engagement to establish the corrective action plan.

 Re-admittance Procedure

A suspended supplier can be re-admitted and the purchases resumed only if and when the supplier is able to demonstrate that appropriate corrective action has been taken and stronger safeguards against any future NDPE violations have been embedded in the supplier’s policies and practices.

Traceability Declarations

Goodhope commits to demonstrate that its palm oil supply chains are fully transparent and traceable. Our Traceability Declarations include lists of our suppliers and provide information on our efforts to trace palm-based products to source.

Click here to view our Traceability Declarations.  

Goodhope adopts an open and transparent approach to resolve any stakeholder’s concern/ complaint in a fair, responsible and consistent manner with the involvement of affected stakeholders. Our Grievance Approach is aligned with the UN Guiding Principles on Business & Human Rights on the development and implementation of effective grievance procedures. It is designed to facilitate a process for dealing with concerns and complaints that is:

• Legitimate
• Accessible
• Predictable
• Equitable
• Transparent
• Rights-compatible
• A source of continuous learning
• Based on engagement and dialogue

Grievance Procedure

All complaints will be addressed fairly within an appropriate time frame according to our standardized Grievance Approach. 

 We aim to ensure fairness and transparency throughout the grievance handling process and pledge to:

• Ensure that the stakeholders can adequately access the sources of information, advice and expertise necessary to engage in a grievance process to be in a fair, fully informed and mutually respectful position.
• Investigate each complaint independently and involve stakeholders in decision-making processes.
• Ensure the anonymity of the grievance raiser where requested.
• Invite candidates to serve as independent actors for any grievance-related investigations when necessary and appoint independent third parties as recommended according to stakeholder decisions.
• Follow agreed resolution processes and maintain adequate documentary evidence of the settlement process and decisions.
• Ensure that requests for information, company responses, stakeholder engagement activities, negotiation and resolution processes are all effectively monitored and recorded.
• Provide adequate information about the progress of complaint resolution, investigations and findings.
• Inform relevant stakeholders if time schedule adjustments are required, this will be communicated to the relevant stakeholders.
• Allow grievance raisers to lodge an appeal by providing information about problems they deem not adequately addressed.

Submit a Grievance

Grievances can be submitted through the following channels:

 Required information:

• Name and contact details of complainant.
• Name of organization (if any)
• Name of Goodhope subsidiary/ third-party supplier/ others whom the complaint is made against.
• Key points and supporting evidences of the grievance.

Palm Oil Grievance List