NDPE Policy


Scope of the Policy

  • All provisions of Palm Oil Sustainability Policy, with no exception, apply to: 
  • All POSCO INTERNATIONAL operations related to production and trading of palm oil including subsidiary companies, joint ventures, and companies over which it has management control.
  • All third-party suppliers at group level. A supplier group is a group of palm oil-related companies from which we purchase fresh fruit bunch (FFB), crude palm oil (CPO) and refined palm oil.


Implementation, monitoring and reporting procedures will be carried out to ensure compliance for all aspects of this policy. For third-party suppliers, we will work with relevant stakeholders to ensure that suppliers implement this policy and associated commitments through a time-bound process.   

POSCO INTERNATIONAL, through its subsidiary PT.BIA, reserves the right to suspend all purchase and other agreements with any group-level palm oil supplier that is found to be in serious violation of this policy.

Environmental Conservation and Management
Protection of, and Respect for, Human Rights
Stakeholder Engagement & Communication

Environmental Conservation and Management

  • Abide by national laws and regulations, and international standards related to environmental protection;[1]
  • Only utilize land that has been zoned for oil palm development by the Indonesian Government;
  • Prohibit all burning techniques associated with plantation development and management;
  • No new plantation development of peatlands regardless of depth; Implement Best Management practices for any existing plantation located on peatland;[2]
  • No new plantation development of areas of High Conservation Value (HCV) and High Carbon Stock (HCS), identified through quality-reviewed HCV and peer-reviewed HCSA (or quality-reviewed integrated HCV-HCSA) assessments, respectively;[3]
  • Protect HCV and HCS areas through an integrated management plan;
  • Promote the protection of biodiversity within our plantations and off-site conservation area;
  • Prohibit any illegal capturing, poaching, hunting and trafficking of animals, especially Endangered, Rare and Threatened (ERT) species. However, we respect the traditional rights of indigenous community to hunt in legal and sustainable manner without involving ERT species and jeopardizing long-term viability of the species;
  • Develop and implement restoration and/or conservation plans for deforestation or peatland development which is non-compliant with this policy;[4]
  • Reduce greenhouse gas (GHG) emissions, significant pollutants and waste associated with palm oil operations.[5]

Protection of, and Respect for, Human Rights

  • Respect the rights of workers and communities associated with palm oil operations in accordance with international standards;[1]
  • Provide fair and equal employment for all employees regardless of race, nationality, religion or gender;
  • Ensure ethical recruitment processes including that workers do not incur any fees directly related to recruitment of temporary or permanent job placement, and that there is no unlawful withholding of identity documents;
  • Prevent forced and bonded labour; commit to provide fair working conditions including the payment of wages that meet or exceed legal requirements, taking into account reasonable production targets and working hours; and uphold the rights to freedom of association and collective bargaining;
  • Protect and respect rights of migrant workers;
  • Protect children from exploitation including measures to prevent the ‘Worst Forms of Child Labour’ as defined by ILO Convention 182[2] and the employment of anyone under the age of 18, unless in a situation where it is a vocational and/or formal structured apprenticeship, educational or a training programme;
  • Provide a safe work environment focused on accident prevention and risk minimisation;
  • Respect and protect the rights of indigenous groups and local communities to give or withhold their Free, Prior and Informed Consent (FPIC) to operations on lands to which they hold proven legal, communal and customary rights;
  • Conduct participatory community mapping prior to any new development to establish community boundaries and land use decisions;
  • Identify measures to provide remediation where the company has caused or contributed to negative human rights impacts;
  • Promote sustainable livelihoods and contribute to economic growth of the local communities, such as through the implementation of plasma oil palm plantations.

Stakeholder Engagement & Communication

  • Establish a transparent sourcing network with traceability to plantation level and cooperate closely with suppliers and relevant stakeholders to promote compliance with our policies;
  • Work with relevant stakeholders including independent verification organisations to implement this policy and best practice;
  • Establish a credible and transparent stakeholder grievance mechanism;
  • Establish a sustainability dashboard to communicate information, progress toward policy compliance, progress on resolving complaints, and supplier engagement and verification;
  • Publish ongoing progress reports on the implementation of sustainability commitments through our sustainability dashboard;
  • Resolve issues and complaints raised regarding plantation development by employees, communities and other relevant stakeholders through an open and transparent process.

NDPE Policy


English Version


Bahasa Indonesia

2020.02.12PT BIA received complaints from the Bentala Pusaka Foundation regarding the demolition of a sacred site of Yawantop, the Indigenous peoples of Malind and Wambon Tekamerop. Allegedely, the Company had destroyed sacred site used to perform traditional rituals. A field verification was immediately carried out and it was discovered that the area in question was a category HCV 4 area which according to the testimony of the Basik-Basik clan, was a natural well of 0.2 ha
2020.02.20Public consultations related to the clarification and rehabilitation of high conservation value areas have been carried out with LMA, indigenous communties, and local NGOs with the consultations also being attended by local governments bringing the total attendance to 66 people.
2020.03..12A traditional ceremony has been held between the clans involved, the company and also the local community. Followed by rehabilitation (replanting) with the plants requested by the clan on April 4, 2020.
2020.04.04At present, the Case has been listed as Resolved and continues to be monitored by the HCV team who also collaborates with the VMT (Village Monitoring Team) that has been formed comprised of members of the indigenous community itself.
2019.12.19Four civic groups (KTNC Watch, PUSAKA, SKP-KAMe and WALHI Papua) submitted a complaint to KNCP regarding the development and production of palm oil.
2020.2.12The company submitted their response to the complaint
2020.3.9Complainant submitted an additional statement
2020.3.17KNCP Initial Assessment results and mediation process is announced
2020.8.201st Mediation Committee meeting (explained implementation of NDPE policy, etc.)
2020.9.18Initial assessment completed
2020.12.22nd Mediation Committee meeting (provided further explanations on implementation of NDPE policy and other inquiries)
2020.12.16Parties agreed to further mediation procedures, extension of deadline
2021.6.233rd Mediation Committee meeting → an agreement was not reached
2021,11Iin response to KNCP request, the company submits its opinion on the KNCP Final Statement draft
2022.1.18KNCP Final Statement is announced
The KNCP published its Final Statement on January 13, 2022. The statement indicated that KNCP did not accept the complainants' claim, but recommended that POSCO International should continue with its current efforts to implement active environmental and social policies and communicate with stakeholders in the future. In response, POSCO International submitted a performance report to KNCP on July 29, 2022, detailing the progress of their ESG activities, including the implementation of the NDPE policy in accordance with the recommendations.