Producing palm oil sustainably

Since 2004, Cargill has been an active member of the Roundtable on Sustainable Palm Oil (RSPO), which promotes the production and use of sustainable palm oil throughout the supply chain, and has made significant progress in implementing the RSPO Principles and Criteria across its businesses.

The majority of our oil palm operations in Indonesia have been certified by the RSPO:
In 2009, PT Hindoli became one of the first palm plantations in Indonesia to receive RSPO certification. In 2010, nearly 9,000 Hindoli smallholder farmers, each owning 2 ha plots of land, become the first smallholders in the world to be certified under the RSPO Guidance for Smallholders’ Scheme. In 2011, these smallholders received their first premiums for RSPO-certified sustainable palm oil and, in 2013, earned close to triple the national average of Indonesia’s income. In 2013, PT Hindoli also received certification under the International Sustainability and Carbon Certification (ISCC) standard of the European Union and Indonesia Sustainable Palm Oil (ISPO) standard.

In 2013, PT Harapan Sawit Lestari was the second Cargill oil palm plantation to receive international recognition for sustainable palm oil practices by being certified by ISCC, followed in 2014 with certification by RSPO. The first mill and estate operations under Poliplant Group received RSPO certification in 2016 and certification for its remaining estates and mills at Poliplant Group is in progress.

Our commitment to sustainable palm production

Cargill has been a responsible and sustainable participant in and supporter of the palm oil industry and communities across Indonesia for over two decades. We believe that palm oil should be produced sustainably. At each of our plantations, we have clear social and environmental policies, and integrate responsible development into our operational plans. In addition, we are making a substantial contribution to local community development.

As described above, Cargill was an early adopter of RSPO and helped smallholders achieve the first RSPO certification under this category. In 2014, we published our progressive Sustainable Palm Policy committed to more responsible development of plantations, respect for land and labor rights and inclusion of smallholders. Cargill has since publicly released annual action plans, quarterly progress reports as well as a 2020 implementation roadmap. In 2014, Cargill also signed in 2014 the New York Declaration on Forests, demonstrating our commitment to eliminate deforestation across all at-risk supply chains.

Cargill an early implementer of the High Carbon Stock Approach (HCSA), trialing it in an area proposed for new development area in South Sumatra. We were also a supporter of the Sustainable Palm Oil Manifesto and subsequent HCS Convergence Work recognizing the gaps that need to be addressed in order to successfully tackle deforestation. We are firmly committed to active participation in the HCSA Steering Group to achieve further improvement and application of the standard over time.

Enriching local communities

We also actively support local farming communities living in the vicinity of our plantations through various programs and initiatives, including the following:

• Cargill collaborates closely with over 21,000 smallholders in Indonesia to achieve RSPO standards, improve crop quality, maximize yields and build up their brands locally and internationally, while building a better livelihood. As of January 2016, 24,461 hectares of Cargill’s smallholder plantations have been RSPO certified. This equates to about 62 percent of Indonesia’s smallholder certification.
• In 2012, Cargill announced a collaboration with IPB, one of Indonesia’s leading agriculture institutes, to build Indonesia’s first oil palm teaching farm. It is the first such collaboration between a commercial oil palm grower and an educational institute.
• In 2013, Cargill launched our first-ever specialized learning institution, the Cargill Tropical Palm Learning Academy, to train professionals in sustainable palm oil production. Through the academy, Cargill also extends intern and research opportunities to the students of IPB. It also facilitates a Talent Development Program for fresh graduates, and employees from Cargill’s plantations in Indonesia.
• Cargill is strongly committed to ensuring the well-being of our employees. In Indonesia, we operate more than 50 medical and daycare centers to provide complimentary healthcare and support services to our employees and their families. At PT Hindoli, we run five company clinics that serve around 17,000 patients a year, while at PT Harapan Sawit Lestari, we run 13 company clinics. In West Kalimantan, our local doctors conduct ‘visiting clinics’ and provide medical aid to local communities. Cargill also provides regular medical assistance to villages in collaboration with local doctors and medical care units.
• Close to 18,000 employees and their families live for free in the over 9,000 houses we have built, and they are able to practice their faith at the 42 mosques and six churches that we have also built.
• Particularly in support of women who work or live in or in the communities surrounding our plantations, we provide the following services:
  • Expectant mothers receive regular check-ups and a healthy meal package (including eggs and milk) every time they visit our clinics. We often hold nutrition workshops for this target group on National Nutrition Day.
  • Crèches are established at every estate. Working mothers drop off their children at the crèche and pick them up after work.
  • Community relations staff and clinic teams often conduct health awareness programs in the plantations and communities, highlighting health topics such as AIDS prevention and reproductive health. Such seminars are usually held during World AIDS day or International Women's Day.
  • Our clinics also help to facilitate the availability of cervical cancer vaccines and the company health insurance program covers HPV vaccines and pap smear tests.