What we do
Work Plan - April 2018 - March 2019
LDC and TFT’s current work plan is also organized into four work streams, with streams building on each other to support the policy implementation:
LDC and TFT continue to trace the flow of product up to mill level for LDC Indonesia refineries and LDC Singapore commercial operations every 6 months. In the second half-year of 2017, LDC maintains a 92% traceability level for these volumes.
- Supplier Policy Implementation
To understand suppliers’ practices with regards to LDC’s Palm Sustainability Policy, LDC will undertake a ‘self-assessment’ process for all suppliers of its LDC Indonesia refineries, using the TFT T4T tool. A workshop to socialize the tool will be held, followed by the distribution of a ‘self-assessment’ form to all suppliers. Once all suppliers return the ‘self-assessment’ form, TFT will analyze the data to capture the prominent issues that suppliers are facing and unable to resolve on their own. Finally, two series of trainings will be held to help suppliers resolve the identified issues collaboratively.
- Grievance & Risk Assessment
Together, LDC and TFT will monitor grievance cases raised by NGOs and other stakeholders with regards to suppliers that have commercial relations with LDC, both directly and indirectly. LDC will then engage with these suppliers in accordance with LDC’s grievance mechanism.
- Supplier Engagement
LDC will continue to actively socialize its policy to all key suppliers, both for LDC Indonesia refineries and LDC Singapore commercial operations. The aim is to further discuss the policy and review opportunities for collaboration, in order to address any gaps and improve supply chain sustainability continuously. In addition, LDC and TFT will organize a training session for suppliers in Ivory Coast, aiming to facilitate understanding of LDC’s Palm Sustainability Policy and discuss any possibility for collaboration
Recent results of traceability to mill
LDC and TFT work together to deliver traceability updates every 6 months, across LDC Indonesia refineries and LDC Singapore commercial operations.
For the period between January to June 2016, both LDC refineries internal suppliers confirmed 100% traceability to mill and LDC Singapore’s external suppliers increased traceability from 66% in FY 2015 to 79% for H1 2016. For the period between July to December 2016, both LDC refineries again achieved 100% traceability to mill, with the LDC Singapore commercial flow at 75% traceability.
Full Year 2016 traceability results across both internal and external suppliers averaged 88% versus 81% in 2015, as per the chart below.
For the period between January to June 2017, LDC refineries once again confirmed traceability to mill for 100% of its volumes. LDC Singapore continued to build its traceability to mill, reaching 86% of volumes traded in that period. For the period between July to December 2017, both LDC refineries achieved 100% traceability to mill, while the LDC Singapore commercial operations increased traceability to 87%.
Full Year 2017 traceability results across both the internal and external suppliers averaged 92% versus 88% in 2016, as per the chart below.
LDC Palm Sustainability Workshop: Toward Collaboration & Transparency
On October 22nd, 2018, Louis Dreyfus Company organized a palm sustainability workshop in Jakarta, in collaboration with The Forest Trust . To read more about the workshop please click here
How TFT works with LDC on Palm Oil
In September 2015, LDC and TFT engaged on a short-term project. The shared objective was to map both the suppliers who serve LDC Indonesia refineries (“internal” suppliers) as well as those suppliers linked to LDC’s Singapore commercial operations (“external” suppliers). In addition, TFT carried out a desktop analysis to review environmental and social dimensions of the mills supplying LDC’s own refineries in Lampung and Balikpapan.
In 2016, LDC continued on its palm oil sustainability journey by becoming a TFT member and committed to a 15-month plan to further improve responsible practices across its entire supply chain. LDC released its comprehensive Palm Sustainability Policy in September 2016, which applies to all LDC stakeholders engaged in their palm oil supply chains, including third party suppliers and customers.
The LDC Palm Sustainability Policy stipulates that all palm activities should:
- Safeguard all high conservation value (HCV) lands or high carbon stock (HCS) areas
- Leave all peat untouched, regardless of depth
- Uphold the rights of local communities or indigenous people
- Comply with ILO conventions on forced labor and discrimination
- Abide by rigorous anti-bribery and corruption standards.
In addition, the policy demands full compliance with all applicable national and international laws
Work Plan - September 2016-December 2017
LDC and TFT’s 2016-2017 work plan was organized into four work streams as follow:
- Sustainability Policy and Supporting Processes
Following the publication and roll-out of the LDC Palm Sustainability Policy, LDC and TFT worked together to establish and upgrade processes supporting the policy, including procedures for traceability, managing prospective suppliers and addressing grievances.
LDC and TFT worked to maintain the ongoing traceability of the supply chain, tracing the flow of product back to mill level. The scope of this work included LDC’s two Indonesian refineries and LDC Singapore’s commercial operations. Data was processed, verified and published on a 6-monthly basis, in line with other industry players. LDC traced 92% of these volumes back to mill level for first half-year 2017, up from 81% in FY2015 and 88% in FY2016.
- Supplier Engagement
In addition to strengthening procedures and traceability, LDC actively socialized its policy to all suppliers and customers, especially key suppliers of LDC Indonesia refineries. Together, LDC and TFT engaged 3 key Indonesian suppliers in 2017, followed by a visit to 1 mill in Sumatera. A discussion on agreed action plan and follow-ups was held as well.
LDC participated in the TFT Landscape project in East Kalimantan, Indonesia. The Landscape, or Area Prioritas Transformasi (APT), approach recognized that individual companies are most impactful when they work together with a broad set of constituents on the ground, in a targeted location. The Landscape project incorporated multiple stakeholders across commodities, government entities and NGOs to address shared challenges regarding identified areas of high conservation value. Due to the recent development in East Kalimantan district and more challenging jurisdictional approach, TFT’s APT work is now pivoting towards a focus on High Impact Suppliers; a cohort of companies who predominate in these regions, and which local and international NGOs have repeatedly exposed for deforestation, peat degradation, community conflict and labor rights violations.