Sustainable Palm oil
- Time of issue:2021-07-20 16:05:47
In 2021, Jiangsu Hsintai chemical S&T Corp., Ltd. (JHC)worked with Earthqualizer to deploy satellite/mapping technology to enhance the ability to track deforestation, development on peat and fires in the Palm/Kernel oil supply chains.
JHC has published the NDPE policy on the website, covering the following elements such as: no new plantings on peat land and HCV & HCS areas, no burning and commitment to FPIC (Free-Prior-Informed Consent) process, labor, and human rights. JHC also openly support the RSPO and pledges to source only RSPO-certified palm and palm kernel oil as far as available on the market. As the majority of our sustainable Palm/Kernel Oil is sourced through the Mass Balance (MB) Certification, there is considerable risk that the producers do not adhere to our procurement policy.
JHC worked with Earthqualizer Foundation (EQ) to enhance the ability in:
- Verifying its Mill Suppliers List
- Achieving a 100 % traceability to mill
- Ensuring that there are no non-compliance issues found in its palm oil supply chain
EQ will also provide JHC with monitoring reports of deforestation and peatland development cases within oil palm oil concessions owned by companies inside JHC’s supply chain, with primary focus on Indonesia, Malaysia and Papua New Guinea.
JHC will receive monitoring reports periodically.
The monitoring reports enable JHC to:
● Engage suppliers that appear non-compliant with NDPE policy.
● Compare the documented cases with those raised by NGOs, if any
Approach and Methodology
The system is a risk management tool that screens and monitors palm oil traders’ compliance with NDPE policy. The system is widely recognized for delivering credible and actionable data. The system is particularly effective because its scope is not limited to the supplying mill. Instead, the approach focuses on the parent company. The system is able to identify effectively on-going deforestation. This enables us to alert the suppliers before they are publicly held accountable. The program is helping to generate a consistent approach to handle supplier non-compliance throughout SE Asia - Pacific. They also have in-depth experience with the challenges faced by growers as well as downstream processors and manufacturers.
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