Responsible Sourcing & Traceability - Goodhope Asia Holdings Ltd

We are committed to maintaining a traceable and transparent supply chain. This is to ensure our suppliers comply with the No Deforestation, No Peat, No Exploitation (NDPE) commitments.

To deliver our responsible sourcing commitments, we have in place a comprehensive system consisting of policy, guidelines, procedures and tools for both our upstream and downstream operations.

Traceability Approach

For our products and materials to be considered traceable, we require the following information:

Palm Oil Mill

Group name
Mill name
Mill GPS coordinates
Product to be supplied

Company-owned Plantation, Direct 3rd Party Plantation, Direct Smallholder

Plantation/ smallholder name
GPS coordinates
Planted area hectarage
Volume supplied to the mill

Dealer/ Collection Centre

Dealer/ collection center name
GPS coordinates
Volume supplied to the mill
Name of sourcing sub-district/ village

Suppliers to our Palm Oil Mills
Three types of suppliers deliver Fresh Fruit Bunches (FFB) to our palm oil mills; our estates, associated smallholders under a plasma scheme, and third-party suppliers.

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 an understanding of the complex network of farmers and intermediaries that are involved in supplying FFB to our mills.

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

Smallholder Support
Our Farmer Field School program, is designed to help independent smallholder farmers improve crop productivity through good agricultural practices. The program provides technical support and promotes the long-term potential of their land to improve yield while encouraging the reduced and responsible use of chemical fertilizers and pesticides. This type of 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 engage with suppliers to promote our policy commitments and progressively work towards achieving traceability to the plantation.
To evaluate the risk of existing and prospective suppliers.
To identify and manage cases of supplier NDPE non-compliance.

Breaches in Compliance

We address any complaints that involve third-party suppliers following our grievance approach. For cases where there are no critical NDPE violations 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.

Stage	Steps	Indicative timeline
1. Identification	1.1 Identify cases of supplier non-compliance 1.2 Inform supplier 1.3 Respond to grievance raiser 1.4 Contact other buyers 1.5 Create a log on the grievance list.	1 week
2. Verification	2.1 Assess grievance validity 2.2 Accept or reject the grievance 2.3 Inform supplier 2.4 Inform grievance raiser 2.5 Update grievance list	1-4 weeks of grievance log
3. Action Plan Development	3.1 Develop an action plan 3.2 Communicate action plan	4-8 weeks of grievance log
4. Monitoring Implementation	4.1 Monitor action plan implementation 4.2 Update grievance list	1-6 months of grievance log
5. Closure and Monitoring	5.1 Case closure 5.2 Continued monitoring 5.3 Update grievance list	Up to 1 year or more depending on the case

Suspension Procedure

If at any time it becomes apparent that the supplier is involved in a 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 may pursue 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 can 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.