Wilmar International : NDPE Report 2022

PALM NDPE

IMPLEMENTATION

ANNUAL REPORT

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TABLE OF CONTENTS

SUMMARY OF PROGRESS	02
INTRODUCTION	05
Global Context	05
Commitment to NDPE	05
COP27 Commitment: Agricultural Sector Roadmap to 1.5ºC	06
About This Report	06
NDPE IMPLEMENTATION	08

IMPLEMENTATION OF
"NO EXPLOITATION"	25
No Exploitation Protocol	25
Our Human Rights Due Diligence (HRDD) Approach	26
Living Wage	27
Partnerships and Platforms	28
Smallholders	28
APPENDIX	30

Traceability	08	External Assurance from Control Union Certifications	30
Our Key Programmes in Ensuring Supplier Compliance	11	Palm Oil Sectoral Roadmap Commitment Index	34
IMPLEMENTATION OF
"NO DEFORESTATION"	18
AND "NO PEAT"

NDPE Implementation Reporting Framework (NDPE IRF)................................................ 18

Ensuring Better Understanding of High Conservation Value

and High Carbon Stock (HCV-HCS) Areas Identification and Protection.......................... 21

Landscape-level Initiatives.................................................................................................. 22

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Palm NDPE Implementation Annual Report 2022 | Wilmar International Limited

Palm NDPE Implementation Annual Report 2022 | Wilmar International Limited

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SUMMARY OF

PROGRESS

	>23.27	*	>900	*	MONITORED
			GROUPSSUPPLIER
	MILLION HECTARES (HA)
	OF LAND COVERED BY
	SATELLITE MONITORING	8,285	*	PLANTATION
	in Indonesia, Malaysia and other
SATELLITE	UNITS
palm producing countries1
MONITORING				MONITORED

920*	>700
(100%*)	SUPPLIERS
SUPPLIERS
TRAINED ON NDPE
ASSESSED
IMPLEMENTATION

823* (89%*)

97* (11%*)

51* (53%*)

SUPPLIERS

SUPPLIERS

HIGH PRIORITY

ASSESSED AS

ASSESSED AS

MILLS ENGAGED

SUPPLIER

LOW PRIORITY

HIGH PRIORITY

(e.g., field visit, received

ENGAGEMENT

MILLS

MILL

action plans etc.)

							MILLION
	34		2.6 HA
		OIL PALM PLANTATIONS
	SUPPLIER GROUPS		REMOVED
	SUSPENDED SINCE 2015
	from our supply chain due to
				suspensions since 2015
	15	19	12
APPROACH TO	SUPPLIER GROUPS	SUPPLIER GROUPS	SUPPLIER GROUPS HAVE
REMAIN ON OUR	(covering 1.1 million ha of	BEEN SUSPENDED
SUPPLIER	SUSPENSION LIST	oil palm plantations)	since the introduction of
MET WILMAR'S RE-
NON-COMPLIANCE	(covering 1.5 million ha of	our 'suspend first' approach
oil palm plantations)	ENTRY CRITERIA	effective 2019
				7	*		CASES IN
	85*			PROGRESS
	GRIEVANCE		78	*
	CASES			CASES
GRIEVANCE CASES						CLOSED
as of December 2022
	98.7%	*	26.5*
	MILLION MT
		OF PRODUCTS
	TRACEABLE		TRACEABLE
	TO MILL
		TO MILL
	83.4%	*	22.4*
		MILLION MT

DELIVERING ON NDPE IRF

89.9%*

OF PALM AND LAURIC PRODUCTS VOLUMES ACROSS WILMAR'S GLOBAL SUPPLY CHAIN

are from suppliers that have at least group-level commitments and/or action plans in place to address the No Deforestation requirements using the NDPE Implementation Reporting Framework (NDPE IRF)

	TRACEABLE TO	OF PRODUCTS
TRACEABILITY	PLANTATION	TRACEABLE TO
	PLANTATION

* Control Union Certifications (CU) has conducted limited assurance procedures on these figures.

1 Other palm producing countries include Papua New Guinea, Colombia, Honduras, Guatemala, Thailand, Cameroon, Congo, Ghana, Nigeria, Costa Rica, Liberia, Mexico, Ivory Coast, Sierra Leone, Solomon Islands, São Tomé and Príncipe

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INTRODUCTION

GLOBAL CONTEXT

Recent global events have had an impact on the production of vegetable oils, but palm oil remains the most widely used due to its unique properties and versatility. As a crucial ingredient in a wide range of products ranging from food and cosmetics to fuel, it supports the livelihoods of millions of people. However, palm oil must be produced sustainably and with care for the natural environment to prevent catastrophic climate change or the collapse of important biodiversity and ecosystems.

As a leading palm processor and merchandiser, we understand our responsibility to drive positive change in the sector. Over the years, we have made significant progress in improving the sustainability of palm oil and addressing environmental and social issues in our value chain. Our commitment to No Deforestation, No Peat and No Exploitation (NDPE) is the foundation of our sustainable palm oil approach. However, we acknowledge that there is still more work to be done in this area.

Wilmar was the first in the industry to launch an NDPE Policy applicable across our entire supply chain.

COMMITMENT TO NDPE

									Our NDPE Policy was launched in 2013 and updated in	i
									2019 to strengthen and reflect the many sustainability
									commitments, policies and procedures that were
									adopted since the initial policy.
									Wilmar was the first in the industry to launch an NDPE
									Policy applicable across our entire supply chain. Our
									policy seeks to drive positive change and support
									sustainable development throughout the palm oil
									supply chain.

To see the key elements of our policy, please refer to our

SUSTAINABILITY DASHBOARD

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Wilmar's mill in Sabah, Malaysia

Palm NDPE Implementation Annual Report 2022 | Wilmar International Limited

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COP27 COMMITMENT:

AGRICULTURAL SECTOR

ROADMAP TO 1.5ºC

In November 2021, at the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow, Wilmar and 12 other major agricultural commodity companies made a commitment to develop a sectoral roadmap for enhanced supply chain action in line with a 1.5-degree Celsius pathway to be ready by COP27 in 2022.

Throughout 2022, we worked closely with our peers to develop a roadmap that builds on the implementation progress made by the industry over the last decade and enhances existing commitments to address identified gaps needed to meet climate targets. The Palm Oil Sectoral Roadmap was completed and made available for review and consultation in September 2022.

For more information on our progress, please refer to our Palm Oil Sectoral Roadmap Commitment Index which outlines our progress to date and steps we will take to ensure we are able to meet this ambitious target. To ensure that we are playing our part and championing the shift towards sustainable palm oil production, Wilmar signed up to the Science Based Target initiative (SBTi) in October 2022. We aim to cement our commitment by setting emission reduction targets, with both near-term and net-zero commitments, in line with a 1.5-degree Celsius pathway.

Over the next 18 months, we will develop timebound plans to achieve these targets. We will also advocate for the adoption of the roadmap among industry players, alongside our continuing efforts to drive the implementation of our NDPE commitments and emission reduction initiatives within our own supply chain.

ABOUT THIS REPORT

As we work towards transforming our supply chain, it is essential that we monitor and report our progress transparently and regularly. We therefore strive to provide our stakeholders with timely and public updates on our challenges and progress towards supply chain transformation through our Palm NDPE Implementation Annual Report. This report contains data and information in respect of the financial year 1 January 2022 to 31 December 2022 and may reference events in previous years, where relevant.

To enhance stakeholders' confidence in the data and information, we disclose material palm disclosures such as traceability to mill and plantation data, grievance mechanism and NDPE Implementation Reporting Framework (NDPE IRF) disclosures amongst others, which have been assured by Control Union Certifications (CU). Additionally, Ernst and Young (EY) has provided external assurance for other material ESG disclosures. Further details can be found in the Assurance Statements on pages 204 to 211 of our Sustainability Report 2022.

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CO2

WILMAR SIGNED UP TO THE SCIENCE BASED TARGETS INITIATIVE (SBTi) IN

OCTOBER 2022

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With efforts already well underway to reduce our Scope 1 and 2 emissions, going forward we will focus on addressing our Scope 3 emissions. For more information on our emission reduction initiatives, please refer to the section on Climate Change in our

SUSTAINABILITY

REPORT 2022

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In addition to our Annual Report and Sustainability Report, this report provides up-to-date information relating to certification, conservation, supply chain monitoring, NDPE compliance, grievances, traceability. More information can be found on our

SUSTAINABILITY

DASHBOARD

Viewpoint of Sabahmas plantation from the Observation Tower

Palm NDPE Implementation Annual Report 2022 | Wilmar International Limited

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