Fuji Oil publishes H1 2017 Progress Report on it's Responsible Palm Oil Sourcing Policy
Fuji Oil Holdings announced its Responsible Palm Oil Sourcing Policy in March 2016, committing to No Deforestation, No Peat and No Exploitation. In accordance with their policy commitment, Fuji Oil have published their bi-annual update on their Responsible Palm Oil Sourcing Policy, including Fuji Oil’s global traceability score for H1 2017. During 2017, Fuji Oil and TFT also rolled out a series of transformation activities, including a Support for Transformation program with a CPO supplier to Palmaju Edible Oils, a Fuji Oil subsidiary in Malaysia. This transformation program targeted a discreet set of issues on the ground within the suppliers operations with the aim of developing resources & knowledge that can be applied at scale to support the transformation of other palm oil mills in the Palmaju supply chain and across the industry. The outcomes from this program include the development of an Integrated No Exploitation Policy, a Company Grievance Procedure, a Code of Conduct for labour recruiters, a passport return procedure for foreign workers and employment contracts for all workers, foreign and Malaysian. These resources will be shared publically for all interested stakeholders via the TFT Tools for Transformation website, which can be found here: http://toolsfortransformation.net/
The press release for the HI 2017 Progress Report can be found here
How we work with Fuji on Palm Oil
During Fuji’s first year of membership, TFT and Fuji mapped their supply chain, achieving high traceability to mill scores across its global operations of 93% and 96% for palm and kernel oil respectively. This was supported by change on the ground through an ART Plan of Fuji’s origin refinery in Peninsular Malaysia (Palmaju), including a policy socialization workshop, one field assessment to a major CPO supplier to Palmaju and a Broad level engagement with direct and indirect suppliers. In addition, TFT and Fuji initiated a Support for Transformation program with the visited mill with the aim of developing solutions that can be applied at scale to address labour issues across the palm oil industry.
In its second year of membership, TFT and Fuji Oil will continue the implementation of this work, again through time-bound action plans. The objective is to reinforce and expand Fuji Oil’s transformation plan and demonstration of commitment to sustainability in its supply chain. The activities that TFT and Fuji will complete in the second year work plan aim to:
- Streamline the traceability process across Fuji Oil business units and build internal capacity within Fuji Oil on the process;
- Strengthen Fuji Oils existing transformation plan within Peninsular Malaysia, supporting its suppliers to demonstrate tangible change toward NDPE alignment;
- Engage with direct suppliers (mills and refineries at origin) in a structured process to identify and close gaps in a process of continued improvement toward aligning practices with NDPE policies;
- Address issues identified in Fuji Oil’s supply chain not aligned with its NDPE policy by establishing a best practice grievance mechanism;
- Support positive change in the palm oil industry by investing in the development of tools and resources that will be available to all millers and growers;
- Take proactive steps in public communication, reporting on the challenges as well as the positive changes that are taking place as a result of Fuji Oils investment in palm oil transformation.
Click to view our work plan here.