In 2013, 11 task forces were formed to drive six core programmes that underscore our Sustainability Framework. The programmes span the entire value chain behind our agricultural and edible oil products.
Our Growing Responsibly Programme sets the policy framework for high standards of corporate governance and professional integrity. All our business interactions must be conducted in an ethical, honest, and accountable manner, in accordance with prevailing laws, rules and regulations. The Board evaluates how well we manage governance and integrity based on our Code of Conduct.
This programme also supports Sustainable Agriculture and Products programme by nurturing the capacity and competencies of our employees and plasma smallholders and encouraging stakeholder engagement. In collaboration with the Policy and Enterprise Risk Management department,it provides a policy framework for decision-making and good practices, and outlines keyprocesses for improving corporate risk management, leadership and governance.
Our Sustainable Agriculture and Production Programme drives the adoption of sustainable practices in crop cultivation and the operation of refineries and mills. This will be done through auditing the plantation, mills and refineries against the respective sustainability standards for our various agricultural crops and products.
Our Safe and Traceable Products Programme and the supporting quality assurance processes aim to ensure that all our products are safe for human consumption. We achieve this by complying with international and local food safety standards and certifications, and stipulating the same level of food safety commitment from our suppliers through our Sustainable Palm Oil Policy and Responsible Supplier Guidelines.
Our products are fortified with minerals and vitamins as required by legislation. Nutritional value is enhanced for certain products as an added health benefit to customers, and for product differentiation.Traceability
Tracing the origins of the CPO, the primary raw material used in our edible oil refineries is an important priority. Today, we are able to trace all FFB that arrive at our oil palm mills to the nucleus and managed plasma plantation and field where it had been planted.
Each consumer product that leaves our refineries bears a batch number, which can be traced back to the production line, place of manufacture, CPO source and when it was produced.
We will continue to focus on and improve our product traceability along the whole supply chain, not just for CPO, but also for all other major raw materials.
Lonsum fully supports the Nucleus-Plasma Scheme that was created by the Indonesian government for plantation companies (nucleus) to develop oil palm plots near their plantations for smallholders (plasma). About 40% of our oil palm plasma smallholders are managed independently, the remaining half is managed by Lonsum.
Our Smallholders Programme covers our efforts with the plasma and ex-plasma farmers, and supports the Nucleus- Plasma scheme through the development of inclusive supply chains. We have extended our sustainability efforts beyond our nucleus plantation operations to include our smallholders.
The Indonesian Government plans to make ISPO mandatory for smallholder farmers; we aim to support and assist our smallholders achieve the ISPO certification once it is mandated. In 2018, we assisted one KUD (co-operative) in South Sumatra to achieve the ISPO certification. This smallholder KUD has successfully undergone the ISPO audit.
This programme also sets out practical guidelines on building good relations and engaging with our local communities. To alleviate conflicts relating to land rights and to cultivate strong social relationships, we actively engage with local landowners and community leaders. The benefits have been manifold, including the mitigation of theft, protests, roadblocks and other business disruptions.
We aim to provide a safe and healthy living environment for all employees and casual workers living on our estates. We work closely with the local governments and hospitals to provide essential medical support, facilities and infrastructure for the people living on all our estates.
We have initiated many community development activities through our Solidarity Programme, which seeks to improve the quality of life in the estates through capacity building, education and financial support.
To tailor our community programmes to the needs of each community and estate, we have started conducting Social Impact assessments through an external party at each of our estates and factories. We consider factors such as the cultural background, literacy rate, living condition and economic situation of the local community before tailoring a programme that suits the developmental need.
We have developed maternity programmes to promote maternal and infant health by improving the effectiveness of the posyandu. We provide expectant mothers with free prenatal checks, immunisation, essential vitamins and minerals,and other gynaecological attention at the estates’integrated health posts, known locally as the posyandu.
Lonsum has also contributed to the public health infrastructure by building medical clinics and emergency care units for the local communities.
In Indonesia, cataract is a common ailment that is adversely affecting the vision of more than two million people across all age groups. To relieve the visual impairment for the local communities, we are working with doctors from the Indonesian Army to conduct on-site cataract operations for the locals living around our estates. Since 2014, 1,035 patients in Kalimantan, Sumatra and Sulawesi had their vision successfully restored under this programme.
Cleft lip is a common medical condition affecting many children in Indonesia. A lot of families are too poor to pay for a simple operation that can transform their children’s lives. As our children are the future of Indonesia, Lonsum has decided to fully sponsor the cleft lip surgeries for at least 1,000 children in Indonesia. Up until 2015, we have sponsored 32 operations for 30 children under the cleft lip programme.