Jakarta. Sinar Mas Agribusiness and Food, a subsidiary of Golden Agri-Resources, unveiled its 2017 sustainability report, which highlights the company's progress in transforming its palm oil supply chain.
Sinar Mas Agribusiness and Food, which runs an integrated palm-based business, said in a statement on Tuesday (31/07) that its sustainability report shows that the company has achieved 100 percent traceability to the plantation (TPP) in its 44 owned mills by the end of last year. However, Sinar Mas Agribusiness and Food is also working with more than 420 third-party supplier mills to meet its crude palm oil needs. The company processes and refines the vegetable oil into various industrial and consumer products.
Taking third-party supplier mills into account, that means 39 percent of the company's palm oil supply chain is now traceable. The palm oil producer said it has set a target to help non-owned mills supplying the company to achieve TTP by the end of 2020.
"[With] TPP, it means Sinar Mas Agribusiness and Food can guarantee the provenance of our raw materials and is in line with the efforts of others in the sector, including our major customers, who are also working on full transparency of their palm supply chain," Franky Oesman Widjaja, chairman and chief executive of Sinar Mas Agribusiness and Food, said in a statement.
"For us, this achievement is an essential part of our wider efforts to help our suppliers change for the better. Through deeper engagement, we reduce supply chain risks, while helping our industry become more responsible and resilient," he said.
Sinar Mas Agribusiness and Food said it has also made other efforts to ensure sustainable business practices are implemented in all its supply chains. These include targeted site visits; monitoring suppliers as part of risk assessment and management; and assessing their needs to help them upgrade their capacity to implement responsible practices. There are also conservation partnerships with the community to manage palm oil plantations.
Workshops for agents, brokers and smallholders in its supply chain have also taken place. The company said it has been investing in technology, research and development to advance sustainability and productivity, while reducing the need to convert more land for agriculture.