How we work with PZ Cussons on Palm Oil
PZ Cussons have been working with TFT and with the Roundtable on Sustainable Palm Oil (RSPO) and have been making good progress on how they trace palm oil supplies, manage the communities which grow palm oil, engage with suppliers and support the industry to stamp out deforestation.
They source their palm oil from Indonesia and Africa, with 89% of the volume coming from TFT members who are also committed to ‘no deforestation, no peat, no exploitation’ (NDPE). In Indonesia, we can trace 99.8% of their palm oil supply back to the mill. In Nigeria, we can trace 89% of volume from ongoing suppliers back to the mill. PZ Cussons remain committed to 100% traceability and we expect further progress in the next 12 months.
PZ Cussons believe that it is only possible to establish a sustainable and profitable business in the long-term by identifying and aligning the interests of all key stakeholders and, in particular, by ensuring that their environmental footprint is minimised by adopting best practices and standards in their operations.
In line with their Palm Oil Promise and their mission to build a sustainable future for the domestic palm oil industry in the key territory of Nigeria, they are focused on developing the value chain from plantation to plate. They are actively supporting local agriculture by developing over 26,500 hectares of land bank into palm plantation in the Cross Rivers State of Nigeria. They continue to develop their plantations by adhering to the globally accepted principles. They are also working closely with key stakeholders to develop a robust smallholder scheme and to support key participants in the palm oil industry. They have embarked on various initiatives which empower and enhance the quality of life of their host communities including scholarships and medical assistance.
Progress made by PZ Cussons on their Palm Oil Promise
Since 2014 when we published our Palm Oil Promise, we have been engaging with our direct suppliers to make sure that they are aware of and understand our commitments.
We started by undertaking comprehensive traceability work to understand where our palm oil is grown and processed. Globally, in 2016, we achieved 100% traceability to refinery and 89% traceability back to the mill. We continue to work with our suppliers and TFT towards full traceability to the mill and back to the Fresh Fruit Bunch.
Greater visibility of our palm oil supply chain enabled our partner TFT to spend time on the ground with our key suppliers in Indonesia and Nigeria in 2016. Action plans are now being implemented to address the issues which were identified during these assessments of priority mills.
For example, in early 2017 we funded training, delivered by TFT, for a third party grower for one of our core suppliers. The training was designed to embed social and environmental practices which are consistent with the PZ Palm Oil Promise. Working with our supplier and TFT, we will continue to monitor the outcomes.
Through PZ Wilmar, our joint venture with Wilmar, we are helping to build a sustainable future for palm oil in Nigeria. We are producing palm oil on RSPO accredited plantations and supporting local smallholder farmers.
Working with the Central Bank of Nigeria (CBN) and Heritage Bank, we are creating access to finance for smallholders with verifiable land titles so that they can revitalise old and inefficient plantations. We are also contributing expertise and hybrid seedlings to smallholder farmers, through collaboration with the Nigerian Institute for Oil Palm Research (NIFOR), helping them to improve their yield and meet RSPO criteria.
Plans for 2017 and beyond
We will continue to work with TFT, our suppliers and our joint venture partner Wilmar in 2017. We aim to deepen our engagement with suppliers to improve traceability and drive real transformation in practices on the ground. We will fund action in Indonesia and Nigeria to address any practices which conflict with the PZ Palm Oil Promise.
We will continue to assess our progress on an on-going basis and will share updates and progress via our website and the TFT Hub.