Responsible Supply Chain and Traceability

Sustainability
At the core of our operations lies a steadfast commitment to fostering a responsible supply chain and achieving full traceability. This is vital not only for upholding the integrity of our products but also for ensuring our operations contribute positively to environmental conservation, social well-being, and long-term economic sustainability.

Importance of Traceability

Traceability is essential to maintaining transparency and accountability throughout the supply chain. By tracking fresh fruit bunches (FFB) from their source to our mills, we ensure compliance with sustainability standards and protect against environmental degradation, illegal land use, and exploitation of local communities. This commitment strengthens consumer trust and aligns with global market demands for ethically sourced palm oil.

Our Approach to Responsible Supply Chain

Establishment of Robust SOPs

We have developed comprehensive Standard Operating Procedures (SOPs) based on internationally recognized standards to ensure all supply chain activities are conducted responsibly. These SOPs encompass sourcing, verification, and operational protocols to uphold high levels of integrity and efficiency.

Verification of FFB Supply

To ensure responsible sourcing, especially from third-party suppliers, we implement robust verification processes. These include:

  • Quality Checks: Assessing the quality of FFB to meet processing standards.
  • Legal Ownership Verification: Ensuring the legality of land ownership to prevent illegal cultivation. In Malaysia, all FFB suppliers must hold a valid MPOB license to sell their FFB to our mills or collection centres.
  • GPS Location Tracking: Recording the geographic origin of FFB to validate its source and prevent deforestation. We also extend assistance to growers and smallholders to develop their boundary maps and tag their geo-locations.
  • Volume Monitoring: Confirming FFB volumes align with expected yields to detect any inconsistencies.

Community Engagement

As part of our broader sustainability initiatives, we actively engage with local communities to promote awareness of responsible practices. Through Focus Group Discussions (FGD), we educate local communities on sustainability, legal compliance, the preservation of High Conservation Value (HCV) and protected areas, and the strict prohibition of fire use at any stage of planting or replanting.

Performance Tracking and Data Integrity

We maintain a robust system to monitor and evaluate our supply chain performance. Leveraging digital tools and regular audits, we ensure data accuracy and traceability across all levels. This meticulous approach enables us to identify areas for improvement, mitigate risks, and maintain the integrity of our operations.

%

CPO & PK traceable to supplying palm oil mills

%

FFB traceable to plantation

(for Indonesian operations)
4 TSH Palm Oil Mills in Indonesia process Fresh Fruit Bunches (FFB) sourced from our own plantations as weII as from our scheme smallholders (Plasma). All FFB is fully traceable.

%

FFB traceable to plantation

(for Malaysian operations)
At least 85% of the Fresh Fruit Bunches (FFB) processed at TSH Palm Oil Mill in Malaysia sourced from third-party suppliers. Additionally, all FFB sourced through TSH’s second-tier collection centres is fully traceable.
Our dedication to a responsible supply chain and traceability underscores our role as a forward-thinking oil palm plantation company, committed to delivering sustainable solutions that benefit people, the planet, and the economy.