Traceability is the cornerstone of a thoroughly sustainable palm oil supply chain. Given the complexity of the palm oil supply chain and the numerous actors involved, ensuring traceability can present significant challenges without proper identification and verification. Therefore, PT BIA maintains a comprehensive inventory of the entire supply chain for effective management. Moreover, we have developed a supply chain management tool that enables us to track and monitor the origin and production processes of all fruits supplied to our company, ensuring that we are fully aware of where our supplies originate and how they are produced.
Suppliers Identification
As of the current date (September, 2024), PT BIA sources 100% of its Fresh Fruit Bunches (FFB) from its own plantations, with no external sourcing from independent smallholders, out growers, or third-party suppliers. Furthermore, 100% of the FFB from our plantations, including plasma farms, is RSPO certified. Additionally, all our mills operate under RSPO Identity Preserved (IP), ISPO, SMK3, ISO 45001:2018, as well as ISCC EU and CORSIA* certifications, ensuring full traceability of certified sustainable FFB from plantation to mill.
*Under process, certification will be uploaded within October 2024.
Suppliers Verification
Our estates and associated smallholders are bound by our NDPE Policy, which rigorously regulates environmentally friendly, human rights-conscious, and transparent operations. This policy also applies to third-party suppliers, and its implementation is verified through due diligence for every new supplier. Consequently, all supply chains strictly prohibit illegal deforestation and commit to the restoration of illegally damaged forests. Furthermore, we adhere to Best Management Practices (BMP) for soil management and are dedicated to minimizing the use of chemicals, such as pesticides and fertilizers. This commitment includes a prohibition on chemicals classified as herbicides, as well as those deemed harmful under WHO categories 1A and 1B, in accordance with the Stockholm and Rotterdam Conventions.
Moreover, all supply lines of PT BIA respect legal and customary land rights, ensuring that these rights are neither violated nor encroached upon. We are committed to respecting legal and customary land tenure rights, including Free, Prior, and Informed Consent (FPIC), which applies to all suppliers, both direct and indirect. This commitment aligns with the FAO Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries, and Forests in the Context of National Food Security.
In addition to our environmental stewardship, we prioritize the management of human rights and safety. PT BIA’s entire supply chain complies with ILO conventions and Free and Fair Labor Principles, ensuring a safe and healthy working environment through the operation of our Occupational Health and Safety (OHS) team, rigorous safety management, and comprehensive training within the workplace. We are committed to providing ongoing support to ensure that all employees can work in a safe environment, a principle that applies not only to PT BIA but also to all our suppliers.
PT BIA, as part of POSCO International, adheres to the POSCO Supplier Code of Conduct, which clearly outlines the criteria for suspending or terminating supplier relationships. Suppliers found in serious violation of environmental, labor, or ethical standards, including the NDPE (No Deforestation, No Peat, No Exploitation) policy, may face contract termination. Our policy includes specific evaluation processes to ensure compliance, with corrective actions required within set timeframes. Failure to comply may result in suspension or termination.
The plantation traceability form can be downloaded via the link here.
