Governance Structure

Effective governance and robust risk management policies and procedures combined with our core values are key for achieving long term success.

The Board of Directors of UP is responsible for approving the direction and overall strategy for UP Group and monitoring and management’s progress in connection with the financial objectives and strategic priorities. The Board receives a formal Sustainability Report at least once a year before it is reviewed and approved for release to the shareholders and public.

In relation to UP’s overall sustainability objectives, targets and priorities, the Board of Directors has delegated responsibility to the Executive Committee (EXCOM) headed by the Chief Executive Director (CED), Dato’ Carl Bek-Nielsen. The Executive Committee reviews and approves UP’s sustainability objectives and monitors progress and sustainability developments within the Group.

The CED and EXCOM are assisted by the Group Sustainability Committee (GSC) which is chaired by the CED. There is also the Group Sustainability Reporting Team (GSRT) headed by Mr. Martin Bek-Nielsen, Executive Director, Finance & Marketing and includes key personnel from Finance, Research, HR, Sustainability and Safety, Share Registrar and Marketing Departments.

The GSRT collates all the information from the GSC, stakeholders’ responses and prepares the Sustainability Report.

Sustainability matters have been a subject close to the heart of UPB. Officially established in 2003, the GSC provides policy direction on strategic leadership on UP’s Sustainability agenda, identifies our Group’s most material issues in relation to risks and opportunities and monitors progress against targets set by the CED and EXCOM on a bi-annual basis.

Since the Sustainability Report became mandatory in 2016, Mr. Martin Bek-Nielsen has been briefing the Board, CED and EXCOM on the work of the GSRT and sustainability issues at every official meeting held. Sustainability is also a key aspect in the Group’s Risk Management Structure which assesses various sustainability issues and developments in its annual Risk Assessment and Management process.

Sustainability Governance Management Structure

Group Sustainability Committee

Group Sustainability System Framework (GSSF)

UP’s Group Sustainability Systems Framework (GSSF) is the system through which its commitment to environment and sustainable development including social and occupational safety & health matters are formalized. It is based on four key focus areas as follows:

Leadership of the Group Sustainability Committee is at the highest level of the company and is spearheaded by the Chief Executive Director Dato’ Carl Bek-Nielsen. This committee provides policy directions on environment and sustainable development, occupational safety and health, allocation of resources and communications.

Planning encompassing external and internal needs that are formulated through the company’s vision, policies, goals, projects budgets and risk analysis.

Enablers are various sub-committees and teams that ensure the adoption of environment and operational practices that are in line with current best practices and policies. The MSPO, ISPO and RSPO Business Units and the various sub-committees are enablers of the GSSF and ensure that the environmental and operational policies are implemented. They are guided amongst others by the MSPO, ISPO and RSPO’s Principles and Criteria and following Manuals and SOP’s:

    1. MSPO, ISPO and RSPO Principles and Criteria
    2. Field Management Manual
    3. Standard Operating Procedures – Oil palm field practices
    4. Standard Operating Procedures – Palm Oil Mill operations
    5. Occupational Safety and Health and HIRARC Manual
    6. Environment & Social Impact Assessments and its Management & Monitoring Plans
    7. High Conservation Value, High Carbon Stock Assessments and its Management & Monitoring Plans
    8. ISO9001:2008, HACCP and Quality Manual for  Refineries

Results are measured through customer satisfaction, safety performance, financial performance, environment protection and management and certifications.

The Group’s Internal Audit Department, together with the Group’s  HRSS Department carries out audits on various sustainability issues and areas throughout the year to ensure compliance to the Group’s sustainability policies and procedures.

Sustainability Policies

As an important step towards improving our sustainability within economic, environmental and social areas of our business, we ensure the commitment stated in our Company Policies apply to our employees (including permanent and temporary workers), contractors, suppliers (including direct and independent/third party), trading partners, scheme smallholders (Plasma) and associated stakeholders.

ENVIRONMENT AND BIODIVERSITY POLICY

We at United Plantations Berhad are committed to sustainable development through protection of the environment and conservation of biodiversity. Our objectives are:

    • Adhere to all applicable laws and regulations as well as the National Interpretation of the RSPO, ISPO and MSPO Principles and Criteria.
    • Conducting our operations under the best principles of agriculture, that is compatible with the natural environment and in full support of Integrated Pest Management techniques and Best Management Practices for existing plantations on peat.
    • Promoting the conservation and development of biodiversity within our group of plantations.
    • Strictly adhere to no deforestation and no new development on peat soils regardless of its depth and fully comply with no new development on High Conservation Value (HCV) areas since 2010. We strive to maintain an open and dynamic approach towards continuous improvements in respect of protecting Peat soils, HCV and other fragile areas. HCV combined with HCS assessments and Land Use Change Analysis (LUCA) for new plantings were introduced in 2014.
    • Actively pursuing ways to reduce greenhouse gas (GHG) emissions and finalized the world’s first comprehensive Life Cycle Assessment (LCA) in accordance with ISO 14040 and 14044 International Standards on palm oil in 2008 and have since then updated progress annually in order to measure and track progress.
    • Continuously working to mitigate our water footprint related to our operations, maintaining buffers along natural waterways, harvesting rainwater, frugal water usage, monitoring of its quality and judicious use of pesticides and weedicides.
    • Continuously working on sound soil management e.g. determining appropriate amount and composition of nutrients based on annual leaf nutrient analysis, empty fruit bunches systematically applied in field, planting of leguminous cover crops.
    • Continuously working towards a dynamic and innovative waste management and utilization system aimed towards zero waste and recycling.
    • Continuously focusing on the “circular economy” concept by converting waste into renewable energy via innovations and investments in new technologies with the goal of reducing greenhouse gas (GHG) emissions.
    • Prohibiting any capturing, poaching, hunting and trafficking of animals, especially Endangered, Rare and Threatened (ERT) species including native trees. However, we respect the traditional rights of indigenous groups and community to hunt in legal, non-commercial and sustainable manner without involving ERT species and jeopardizing long-term viability of the species.
    • The key environmental milestones achieved are as follows:
      • Zero-burn policy (1989)
      • No primary forest clearing policy (1990)
      • No supply policy for the production of first-generation biodiesel (2003)
      • Methane capturing facilities introduced (2006) and all mills equipped with methane capturing facilities (2018)
      • HCV assessment introduced (2007)
      • LCA on palm oil production completed in (2008) with annual updates since then
      • No deforestation, no new development on High Conservation Value (HCV) areas and no new development on peat soils regardless of its depth (2010)
      • Total phase-out of Paraquat (2010)
      • HCV, combined with HCS assessments and LUCA for new plantings (2014)
      • Total phase-out of Class 1A/1B chemicals (Monocrotophos/Methamidophos) (2020)
    • Our employees, contractors, suppliers, trading partners and stakeholders are expected to adhere to this policy and thereby focus on sustainability within our supply chain based on traceability, transparency and trust.

08th March 2021

OCCUPATIONAL SAFETY AND HEALTH POLICY

We at United Plantations Berhad are committed to secure the safety and health of all our employees at work. In the operation of our activities, we strive to maintain a safe and healthy working environment for our employees, contractors, suppliers, customers and the public.

We value our work place Safety and Health as paramount importance to the well-being of all our employees and our respective Managers/Heads of Departments are responsible in implementing this policy.

In striving to secure a safe and healthy work environment we shall:

    • Adhere to all applicable laws and regulations including the safety guidelines and manuals
      endorsed by the National enforcing authorities in our relevant operations. In addition, all
      safety practices shall comply with the National Interpretation of the RSPO and MSPO
      Principles and Criteria.
    • Devote our continuous efforts to accident prevention, by conducting Hazard Identification, Risk Assessment and Risk Control (HIRARC) on all our operations.
    • Provide continuous training and supervision to all categories of employees through our “Reach and Teach, Reach and Remind” approach to strengthen safety awareness.
    • Equip and train employees to use appropriate protective equipments and to develop a health and safety conscious citizen.
    • Total phase-out of Paraquat weedicide since 2010.
    • Total phase-out of WHO Class 1A/1B chemicals (Monocrotophos/Methamidophos) since 2020.
    • Ensure fire safety plan is implemented and continuously trained for its preparedness within our organization and neighbouring communities.
    • Develop a culture of individual responsibility and accountability for the employee’s own well-being as well as those of the personnel and facilities under their control.

Strive to commit our employees, contractors, suppliers, trading partners and stakeholders to adhere to this policy as well as Safety and Health regulations and standards.

08 th March 2021

HUMAN RIGHTS POLICY

We at United Plantations Berhad are committed to the protection and advancement of human rights including prohibiting retaliation, intimidation and harassment against Human Rights Defenders (HRD), whistleblowers, complainants and community spokespersons.

Our objectives are as follows:

    • We adhere to the fundamental elements of International Labour Organization (ILO) Convention and the United Nations Declaration on Human Rights, the Rights of Indigenous Peoples and other core values as ratified by the countries in which we operate.
    • We ensure all personnel are treated fairly and protected from any form of discrimination that would constitute a violation of their human rights.
    • We ensure equal opportunities provided to all personnel. The process of recruitment, promotion and remuneration are solely based on individual qualification and performance regardless of religion, race, age, gender, nationality or physical disability.
    • We respect the rights of all personnel to form, join and participate in registered trade unions and to bargain collectively.
    • We respect the rights of people in communities impacted by our activities. We will seek to identify adverse social and environmental impacts through their respective assessments and take appropriate steps to avoid, minimize and/or mitigate them.
    • We respect land tenure rights as well as recognize duties and responsibilities associated with tenure rights.
    • We respect customary or native rights of indigenous and local communities and we commit to Free, Prior and Informed Consent (FPIC) in all negotiations prior to commencing any new operations.
    • We resolve all complaints and grievances through an open, transparent and consultative process.
    • We will not tolerate the use of child or forced labour, slavery or human trafficking in any of our plantations and facilities. We are using the definition from United Nations Convention on the Rights of the Child which define ‘child’ as anyone who is less than 18 years old.
    • We will strive to commit our employees, contractors, suppliers, trading partners, contracted security forces, associated local communities and stakeholders to adhere to this policy.

9th March 2020

GENDER POLICY

We at United Plantations Berhad are committed to maintaining a workplace free from harassment of any kind, including harassment based on an employee’s race, colour, religion, gender, national origin, ancestry, disability, marital status and sexual orientation. In line with the policy, we shall;

  • Endeavour to prevent sexual harassment and all other forms of violence against women and workers in the workplace or in the course of an employee’s work.
  • Adopt a specific complaints and grievance procedure and mechanism to address gender-based issues.
  • Encourage effective participation of women in decision-making by their representation as members of various committees, such as the Occupational Safety And Health Committee.
  • Establish a Gender Committee to implement and monitor the policy.
  • To protect the Reproductive Rights and Motherhood responsibilities of women as under the Universal Declaration of Human Rights and labour laws.
  • We will communicate to our employees, contractors and suppliers to adhere to the values of this policy.

24th April 2015

GUEST WORKERS POLICY

We consider our foreign workers as guest workers and they are partners in our business along with our local workers. Our objectives are to ensure that:

  • No forms of forced labour or trafficked labour are used.
  • All works are carried out voluntarily including overtime and Work on Day of Rest (WDR) as per the rate stipulated in the Malaysian Employment Act 1955.
  • Any forms of discrimination are prohibited including in recruitment, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.
  • All guest workers are in possession of a valid work permit in accordance with Malaysian Immigration Regulations, 1963.
  • We ensure the living quarters for all workers are in compliance with the “Workers’ Minimum Standards of Housing and Amenities Act 1990”.
  • Contract substitution is strictly prohibited. Guest workers are briefed on the job scope and work nature in their respective source countries and the employment contract is executed at the source countries.
  • All guest workers are allocated individual passport lockers and keys, in a dedicated secured building to which they have free access at all times. For the management units where the passport lockers are in the progress of construction, the guest workers’ passports shall be voluntarily submitted to the respective management for safe custody and will be readily made available on request for any reasons.
  • We ensure that our contractors employ guest workers with valid work permits and all statutory payments and just wages are paid in a transparent and timely manner.
  • All statutory payments with genuine receipts incurred in the recruitment process shall be reimbursed by the Company.
  • No withholding of wages nor penalty for workers who choose to leave the Company, other than as stipulated in the employment contract.
  • We conduct post-arrival orientation program for new guest workers to ease their integration into our Company’s culture as well as new living environment.
  • We endeavor to make “The Home Away from Home” of our guest workers an enriching experience with good memories.

17th August 2020

CODE OF CONDUCT AND BUSINESS ETHICS

A key element in United Plantations (UP) is our Code Conduct and Business Ethics. We implement responsible and ethical business policies and practices in all aspects of our operations.

Standard of Conduct
We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees. We shall similarly respect the legitimate interests of those with whom we have relationships.

Obeying the Law
UP Group, directors and our employees are required to comply with the laws and regulations of the countries in which we operate. UP will promote and defend our legitimate business interests. UP will cooperate with governments and other organizations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect our legitimate business interests.

Consumers
UP is committed to providing quality products and services which consistently offer value in terms of price and which are safe for their intended use. Products will be accurately and properly labelled, advertised and communicated.

Shareholders
UP will conduct its operations in accordance with internationally accepted ethics of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders.

Business Partners
UP is committed to establishing mutually beneficial relations with our suppliers, customers and business partners. In our business dealings, we expect our business partners to adhere to business ethics consistent with our own.

Community Involvement
UP strives to be a trusted corporate citizen and as an integral part of society, to fulfil its responsibilities to the societies and communities in which we operate.

The Environment
UP is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business.

Competition
UP believes in vigorous yet fair competition and supports the development of appropriate competition laws. UP and its employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations.

Business Integrity and Corruption

UP has a zero tolerance to fraud, bribery and corruption and this applies to all dealings by our employees, suppliers, consultants, agents and any person associated with UP.

UP as a responsible corporate citizen has been and shall continue to give scholarships and donations to deserving cases on the condition that this is not corruptly given as defined under Section 17 A(1) of MACC Amendment Act 2018. However, UP has a general policy of not giving political contributions to any political parties or candidates.

UP does not prohibit the giving of meals and gifts in the course of business dealings as long as these are of reasonable value not in cash and are not corruptly given.

We commit to the principles of Free, Prior and Informed Consent and adhere to these principles in all our negotiations and interactions with stakeholders.

Conflicts of Interests

All UP directors and employees are expected to avoid personal activities and financial interests which would be in conflict with their responsibilities to the Group. UP directors and employees must not seek gain for themselves or others through misuse of their positions.
14th December 2019

WHISTLEBLOWER  POLICY

We are committed to high standards of ethical, moral and legal business conduct. This policy aims to provide an avenue for employees, suppliers and other stakeholders to raise concerns and reassurance that they will be protected from reprisals or victimization for whistleblowing.

This policy is intended to cover protection for the whistleblower when raising concerns regarding United Plantations Berhad, such as concerns regarding:

  • Incorrect financial reporting;
  • Unlawful activity;
  • Activities that are not in line with United Plantations Berhad policy, including the Code of Business Conduct; and
  • Activities, which otherwise amount to serious improper conduct.

Safeguards

Harassment or Victimization – harassment or victimization for reporting concerns under this policy will not be tolerated.

Confidentiality – Every effort will be made to treat the complainant’s identity with confidentiality.

Anonymous Allegations – This policy encourages employees, suppliers and other stakeholders to put their names to allegations because appropriate follow-up questions and investigation may not be possible unless the source of the information is identified. Concerns expressed anonymously will be explored appropriately, but consideration will be given to:

  • The seriousness of the issue raised;
  • The credibility of the concern; and
  • The likelihood of confirming the allegation from attributable sources.

Bad Faith Allegations – Allegations in bad faith may result in disciplinary action.

Information can be provided direct to any of the following persons by telephone or in writing:

Members of the Executive Committee:
Y.Bhg. Dato’ Carl Bek-Nielsen
Tel. No. 05-6411411
Mr. Martin Bek-Nielsen
Tel: No. 05-6411411
Mr. Loh Hang Pai
Tel. No. 05-6366261

Company Secretary:
Mr. Ng Eng Ho
   
Tel. No. 05-6411411

Address:
United Plantations Berhad,
Jendarata Estate, 36009 Teluk Intan, Perak

14th December 2019

POLICY ON DOCUMENTS THAT CAN BE PUBLICLY MADE AVAILABLE

In line with our commitment to transparency the following documents are publicly available on request.

  • Land titles/user rights
  • Occupational health and safety plans
  • Plans and impacts assessments relating to environment and social impacts
  • HCV documentations
  • Pollution prevention and reduction plans
  • Details of complaints and grievances
  • Negotiation procedures
  • Continual improvement plans
  • Public summary of RSPO certification assessment report
  • Human Rights Policy

The Company’s Standard Operating Procedures and Field Management Manuals are confidential documents and are guidelines for various operations. The contents must not be disclosed to any third party without authorization by the Company.

11th January 2014

MALAYSIAN SUSTAINABLE PALM OIL (MSPO) POLICY

We at United Plantations Berhad are committed to comply and implement all requirements and principles of MSPO.

All operating units under United Plantations Berhad shall adhere to the following key principles of MSPO to which the management shall provide leadership and commitment:

  • Management commitment and responsibility
  • Transparency
  • Compliance to legal requirements
  • Social responsibility, health, safety and employment condition
  • Environment, natural resources, biodiversity and ecosystem services
  • Best practices
  • Development of new plantings

Our objectives are to:

  • Comply with the laws and regulations of the countries in which we operate.
  • Maintain an open and dynamic approach towards continuous improvement in respect of social responsibilities, environment protection, best practices and economic development.
  • Establish traceability within the supply chain as an important step towards production of sustainable palm oil products.
  • Strive to commit our employees, contractors, suppliers, trading partners and stakeholders to adhere to our Company Policies and cooperate with them in an ambition to find mutual improvements.

Our Company Policies are:

  • Environment and Biodiversity Policy
  • Human Rights Policy
  • Occupational Safety and Health Policy
  • Gender Policy
  • Guest Workers Policy
  • Code of Conduct and Business Ethics
  • Whistleblower Policy
  • Corporate Social Responsibility (CSR) Policy

29th March 2018

RESPONSIBLE SOURCING POLICY

Introduction

As an important step towards improving our sustainability focus within environmental, social and economic areas of our business, UP is committed to high standards in responsible sourcing. For the third-party FFB suppliers, UP focused on supply that is produced in a manner that excludes the destruction of forest, the exploitation of workers, local communities and based on responsible agronomic practices.

UP therefore recognizes the important role it can play in encouraging a transition to more sustainable practices and commits to building a traceable supply chain. As a step to ensure that our suppliers join us on the journey of full sustainability in the palm oil industry, we have established a Supplier Code of Conduct. This Code includes a requirement for all our suppliers of palm oil and their supply chain to adhere to Fundamental International Labour Organisation (ILO) Conventions and the UN Declaration on Human Rights, the Rights of Indigenous Peoples, environmental protection and anti-corruption and to national laws in the country of which the supplier operates.

Specifically, based on our responsible sourcing policy UP makes the following commitments:

1. Environmental Management
To source Fresh Fruit Bunches (FFBs) that are produced sustainably whereby the supplier complies with the following criteria:

  • No development on high carbon stock forest (HCS1).
  • No development on high conservation value forest (HCVF2) areas.
  • No new development on peat3 lands regardless of depth.
  • Reductions of Green House Gases (GHG 4) emissions.
  • No use of Paraquat weedicide and a commitment to reduce and phase-out pesticides that are categorized as World Health Organization Class 1A or 1B and Stockholm Conventions.
  • Zero burning for preparation or clearing of land areas.
  • Capturing, poaching and hunting of native tree species and animal, especially Endangered, Rare and Threatened species are prohibited.
  • Identify adverse environmental impacts through their respective assessments (EIA) and take appropriate steps to avoid, minimize and/or mitigate them.
  • Not to operate or develop land within international or nationally designated protected areas.

2. Human Rights Protection
To ensure suppliers adhere to the following criteria:

  • Prohibit child labour5, illegal, and forced labour6.
  • All employees are treated fairly and protected from any form of discrimination.
  • Equal opportunities provided to all employees regardless of religion, race, age, gender, nationality, or physical disability.
  • Compensate workers by providing at least minimum wages and benefits in accordance to all applicable laws and regulations.
  • Respect rights of all employees to form, join, and participate in registered trade unions and to bargain collectively.
  • Respect land tenure rights as well as recognize duties and responsibilities associated with tenure rights.
  • Respect customary or native rights of indigenous and local communities and to commit to Free, Prior and Informed Consent (FPIC)7 in all negotiations prior to commencing any new operations.
  • Resolve complaints and grievances through an open, transparent, and consultative process.
  • Identify adverse social impacts through their respective assessments (SIA) and take appropriate steps to avoid, minimize and/or mitigate them.

3. Occupational Safety & Health (OSH)
To ensure suppliers adhere to the following criteria:

  • Provide continuous training and supervision to all categories of employees to build and promote a safe and healthy work environment in full compliance with legislative requirements.
  • Equip and train employees to use appropriate protective equipment and to develop a health and safety conscious citizen.
  • Develop a culture of individual responsibility and accountability for the employee’s own well-being as well as those of the personnel and facilities under their control.
  • Ensure fire safety plan is implemented and continuously trained for its preparedness within our organization and neighboring communities.

4. Traceable Supply Chains
To ensure that the Fresh Fruit Bunches (FFBs) actually come from plantations that live up to our Supplier Code of Conduct. UP shall therefore engage with the suppliers to develop traceable and transparent supply chains.

5. Community development and social impact
Suppliers are to drive positive socio-economic impact for local communities and committed to mitigate the impacts on food security, as well as respect and contribute to the quality of life and wellbeing of the communities. Suppliers are to engage effectively with communities and to resolve complaints and conflicts through an open and transparent manner through consultation.

6. Legal compliance
Supplier complies with the legal requirements and standards of its industry under all applicable national and local laws.

Working with our FFB suppliers
UP takes responsibility for ensuring our Sustainable Palm Oil Policy is communicated to all our FFB suppliers. Our FFB suppliers are expected to meet the requirements of this policy and evaluated against the expectations of our policy and by signing our Supplier Code of Conduct.
Implementations of these commitments shall include the following mechanism:

  • Suppliers shall be engaged regularly via discussions, assessments and site-based trainings where necessary.
  • General questionnaire pertaining to our commitments shall be sent to our suppliers to measure their conformance.

We expect our suppliers to share similar principles and commitments thereby jointly building a sustainable palm oil supply chain and will recognize the efforts made by our suppliers showing progress and commitments towards sustainable palm oil.

We believe that this policy will support the transformation of the palm oil supply chain. We only work with suppliers that actively commit to sustainable palm oil in line with our responsible sourcing policy.

In the event that UP becomes aware of a supplier violating or breaching the above policies or our Supplier Code of Conduct and thereby is viewed as a high-risk supplier (self-assessment scored below 50%), UP shall immediately request for corrective measures to be implemented with time-bound action plan to remediate such non-compliance within 60 days. We will moreover through dialogue and co-operation, encourage, and coach the supplier to resolve the non-compliance. If a supplier is unable or unwilling to take the necessary actions to conform to the expectations outlined in our policy, UP will as a last resort terminate its commercial relationship with the supplier.

UP will report the annual progress relates to the implementation of this policy in the Annual Sustainability Report.

15th April 2018

SUPPLIER CODE OF CONDUCT

Code of ethics and governance
Suppliers shall commit to adhere to ethical, honest, and transparent business practices and governance.

Human and workers’ rights
Suppliers shall adhere to the best human resource practices which respects universal human rights as laid out in the UN Guiding Principle on Human Rights and Business.

Child Labour
Suppliers shall not use child labour as defined by the national laws in the country of operation. Suppliers shall not employ individuals below the age of 18.

Voluntary Employment
Suppliers must hire employees on a voluntary basis and does not use any form of slave, bonded, prison or forced labour or engage in any other forms of human trafficking.

Freedom of Association / Collective Bargaining
Suppliers shall respect the rights of employees to form and join trade unions and bargain collectively in a lawful and peaceful manner subject to and in accordance with applicable law.

Migrant Labour/Guest Workers
Suppliers recognizes the unique legal, social and cultural situations that migrant workers/guest workers face and will ensure that such workers are treated with dignity, respect and in accordance with the same standards as apply to local workers.

Abuse, Harassment and Disciplinary Action
Suppliers shall not engage in physical, mental, verbal, sexual or any other abuse, inhumane or any other form of harassment. Supplier shall treat all employees with respect and dignity and complies with local legislation on disciplinary practices.

Fair and equal treatment
Suppliers’ terms and conditions of employment including hiring, training, working conditions, compensation, benefits, or promotions are based on individual’s qualifications, performance, skills and experience.

Compensation and benefits
Suppliers shall fairly compensate all employees by providing wages and benefits in accordance with all applicable laws.

Working hours
Suppliers shall comply with all applicable laws regarding normal working hours, rest periods and overtime hours.

Occupational Safety & Health (OSH)
Suppliers shall commit to secure the safety and health of all their employees at work and strive to maintain a safe and healthy working environment. Supplier shall comply with all applicable laws pertaining to health and safety in the workplace.

Environment
Suppliers shall comply with all applicable environmental laws and regulations and continuously strive to improve environmental performance.

Responsible Agricultural Practices
Oil palm plantation-based suppliers shall commit to Responsible Agricultural Practices and strive towards finding the right balance between Economic, Social and Environmental aspects of business.

These suppliers shall commit to the following principles:

  • No deforestation
  • No new development on peat soils
  • Reduction of Green House Gasses (GHG)
  • Increased focused and respect for local and indigenous communities including small holders and benefit of their socio-economic development.

Traceability
Suppliers shall live up to this Code of Conduct and committed towards a traceable palm oil supply chain.

Commitment on UP’s Supplier Code of Conduct

Introduction

UP has an important responsibility to ensure the safety and quality of our products. We are committed to ensure the sustainability of the palm oil sector and to encourage sustainable practices in all areas of our supply chain.

Our Supplier Code of Conduct reflects our commitment to conducting business in an ethical, legal, and responsible manner. We expect the same or similar commitments from our suppliers and collaborating parties in their supply chain. We strive to do business with responsible suppliers who treat their employees with respect and dignity, comply with applicable laws and regulations.

Compliance

Suppliers must comply with the legal requirements and standards of its industry based on all applicable laws and maintain documentation and records demonstrating compliance with such laws and the requirements of this or a similar Supplier Code. Suppliers are responsible for educating and monitoring collaborating parties in their supply chain.

Should a supplier fail to comply with the requirements of this Supplier Code of Conduct and thereby is viewed as a high-risk supplier (self-assessment scored below 50%), UP shall immediately request for corrective measures to be implemented to remediate such non-compliance with time-bound action plan within 60 days. If suppliers fail to show genuine remediation requirements, UP will as a last resort, terminate commercial relationships with the supplier.

15th April 2018

Targets and Achievements

Our targets and commitments drive us to continuously improve and we subscribed to the mantra “what we measure, we can manage”. In this section, we provide information about our progress of targets and achievements which include targets in the areas of Certifications, Biodiversity, Climate change, Community, Employees, Legal Compliance and Economics, and others.

These targets and the achievements to date provide an overview of our goals over a period of 3 years up to 2022.

Objectives Targets Achieved Todate Target 2020 Status of Target in 2020 Target for 2021 Target for 2022 Addressed by Specific Material Sustainability Matter Relevant UN SDGs
Target 1: Employees
No child labour (under the age of 18 years, or as per local regulations) No breaches in
compliance reported
or observed in
external and internal audits
No breaches in
compliance reported
or observed in
external and internal audits
Human & Workers’ Rights 8
No forced of trafficked labour in our operations No breaches in
compliance reported
or observed in
external and internal audits
No breaches in
compliance reported
or observed in
external and internal audits
Human & Workers’ Rights 8
No retention of Guest workers’ passports

Jendarata Estate, Ulu Bernam Complex, Ulu Basir and Changkat Mentri Complex, Charong Complex, UIE Complex

To replicate the
construction of
passport lockers for the balance Estates
In 2020, new passport lockers were constructed in the following sites:
– Seri Pelangi Estate
-Lima Blas Estate
To replicate the
construction of passport lockers in the following sites:
– Tanarata
-Kuala Bernam
-Sungei Bernam
Human & Workers’ Rights 8
Phasing out of Paraquat No Paraquat usage policy 2010 Achieved in 2010 3
Phasing out of Monocrotophos Successfully phase-out Achieved in 2020
No work-related fatalities Zero fatality Unfortunately three fatal accidents were reported Zero fatality Zero fatality Occupational Safety & Health 3
Reduce Lost Time Injury Frequency Rate (LTIFR) below 2014 levels. (12.27) Introduce a behavioural safety approach Continuous Improvement (LTIFR 8.31) Occupational Safety & Health 3
To live up to the UN Guiding Principles on Business And Human Rights In 2020, our Human Rights and
Guest Workers Policies have been revised in line with latest RSPO P&C 2018.
Establish call centres in source countries for disseminating information to potential candidates In 2020, we were unable to establish call centers as the Malaysian Government recruitment policies are pending. Human & Workers’ Right 3
Target 2 : Environment (Biodiversity)
Monitoring and management of HCV, SEIA and conservation areas. 2008 Ongoing monitoring and maintenance of the flora and fauna Biodiversity & Conservation 15
Established the Kingham-Cooper Tree Species Reserve at UIE Estate. 2008 Ongoing monitoring and maintenance of the flora and fauna Biodiversity & Conservation 15
UP and Copenhagen Zoo established a partnership with UP including establishing a Biodiversity Department 2010 Ongoing partnership Biodiversity & Conservation 15
17
Research on raising predators in the Insectary 2012 Ongoing research Biodiversity & Conservation 15
No new oil palm development without RSPO NPP –protocols. 2014 We will comply with RSPO NPP for all future new oil palm plantings Biodiversity & Conservation 13
Research on Rat control by Leopard cats in collaboration with Copenhagen Zoo 2014 Ongoing research Publication on leopard cat within the oil palm landscape. Biodiversity & Conservation 15
17
Monitoring and management of HCS 2014 Ongoing monitoring and maintenance of the flora and fauna Biodiversity & Conservation 13
Target 3 : Environment (Climate Change )
Installation of Biomass Reciprocating Boilers Jendarata Palm Oil Mill (2006 and 2017)
Ulu Basir Palm Oil Mill (2014)
Ulu Bernam Optimill (2018) and
UIE Palm Oil Mill (2018)
Completed GHG Emissions, Discharge & Waste Management 9
12
No new development of peat area regardless its depth. 2010 Ongoing GHG Emissions, Discharge & Waste Management 13
Install methane capture in all palm oil mills 2013
(Achieved in 2017)
GHG Emissions, Discharge & Waste Management 9
12
Measuring GHG emissions for all palm oil operations 33 % reduction since 2004 (achieved in 2015)
(iLUC including conservation)
2015 1.18 kg CO2 -eq/kg NBD Oil In 2020, the carbon footprint per MT of NBD oil is 1.57 kg CO2e/kg NBD oil i.e reduced by 59% compared to 2004 levels including iLUC and nature conservation 1.18 kg CO2 -eq/kg NBD Oil 1.18kg CO2 -eq/kg NBD Oil GHG Emissions, Discharge & Waste Management 7
12
To measure the total GHG emissions per year for the UP Group Ongoing GHG Emissions, Discharge & Waste Management 7
12
Conversion of conventional lightings to T5 lights with the potential savings in power consumption by 78% 2015 Ongoing GHG Emissions, Discharge & Waste Management 7
12
To supply electricity to the National Grid derived from the biogas plant at UIE Palm Oil Mill Export to national grid.
Achieved in 2016
(Nil Flaring)
Ongoing GHG Emissions, Discharge & Waste Management 7
12
Monitoring and control of fire across our estates and neighbouring areas with adequate firefighting capacity. Two fire engines and other related equipment
for PT SSS purchased
Monitoring and control ongoing GHG Emissions, Discharge & Waste Management 13
Monitoring of fire hot spots Monitoring of fire hot spots from Global Fire Watch under the WRI Global Forest Watch Tool as monitoring aids Ongoing Additional watch towers and drones to enhance the monitoring. GHG Emissions, Discharge & Waste Management 13
Installation of VORSEP System at Palm Oil Mills to reduce dust emission Ulu Basir installed in 2015, Ulu Bernam Optimill (2018) and Jendarata Palm Oil Mill installed in 2017 & UIE Palm Oil Mill in 2018 GHG Emissions, Discharge & Waste Management 9
12
Water Footprint-reduction by 5% compared to 2015 level of 80 gallons per capita by 2018 60 gallons/capita/day Malaysian Operations:
73 gallons/capita /dayIndonesian Operations:
77 gallons/capita/day
60 gallons/capita/day 60 gallons/capita/day GHG Emissions, Discharge & Waste Management 6
Target 4 : Community
PLASMA-schemed smallholders to establish in PTSSS Company’s planted area in Indonesia Approximately 150-200Ha 1314Ha Approximately 150-200Ha Balance area PLASMA Development 1
12
All community based land conflicts to be addressed in a structured and transparent manner To address land conflicts according to our established land dispute settlement procedure and to reduce number of cases Ongoing Free Prior Informed Consent & Grievance Resolution 3
Target 5 : Legal Compliance
Hak Guna Usaha (HGU) permits for UP’s land concession (18,663HA) under PT SSS in Indonesia as per the President of the Republic of Indonesia decree 104, 2015 dated 28 Dec. 2015. 2,508.47Ha in Lada Estate obtained in 2005 in Lada Estate obtained in 2005Ha in Lada Estate obtained in 2005 HGU for 6,004.15Ha obtained (Lada & Runtu Estates) in 2018 To fully achieve objective Land swap in progress in HP areas at PTSSS. To fully achieve objective To fully achieve objective Code of Ethic & Governance 16
Target 6: Economics
Malaysia
FFB Yield Per HectareOil Extraction RateCPO Yield Per Hectare
26.76

21.95

5.88

27.49

22.29

6.13

28.00

23.00

6.50

28.00

23.00

6.50

Product Quality 12
Indonesia
FFB Yield Per HectareOil Extraction RateCPO Yield Per Hectare
22.93

22.30

5.11

22.69

22.00

5.21

25.50

25.50

6.50

25.50

25.50

6.50

Product Quality 12
Target 7: Certifications
Migros Criteria audited by Proforest 2003 Certification for Food Safety, Sustainability and Others 12
World’s first RSPO Certification for all 6 oil mills in Peninsular Malaysia *4 oil mills currently
-RSPO Re-certification (2013 & 2017)
2008 Ongoing Annual Surveillance Assessment. Achieved Ongoing Annual Surveillance Assessment. Ongoing Annual Surveillance Assessment. Certification for Food Safety, Sustainability and Others 12
RSPO P&C –PTSSS (Lada Oil Mill & supply bases) RSPO ASA 1 (713.47ha) and Scope Extension Assessment for the additional HGU achieved areas (6004.15ha) RSPO ASA 1 and Scope Extension Assessment completed for the entire HGU achieved area. (6717.62ha) Achieved Ongoing Annual Surveillance Assessment. Ongoing Annual Surveillance Assessment. Certification for Food Safety, Sustainability and Others 12
ISPO P&C – PTSSS (Lada POM & supply bases) Successfully obtained the certificates in August 2019 for 6717.62ha. Ongoing Annual Surveillance Assessment. Achieved Ongoing Annual Surveillance Assessment. Ongoing Annual Surveillance Assessment. Certification for Food Safety, Sustainability and Others 12
MSPO Certification for Palm Oil Mills and Estates in UP Malaysia Successfully obtained the certificates in September 2018.

Ongoing Annual Surveillance Assessment.

Achieved Ongoing Annual Surveillance Assessment. Ongoing Annual Surveillance Assessment. Certification for Food Safety, Sustainability and Others 12
External Assurance on Sustainability Report First external assurance was conducted in 2017 To seek third party limited assurance on our sustainability report 2020 Achieved To seek third party limited assurance on our sustainability report 2021 To seek third party limited assurance on our sustainability report 2022 Certification for Food Safety, Sustainability and Others 12
Unitata/UniFuji
ISO 9001(1995) HACCP (2003)
Halal (2004)
KOSHER (2005)
BRC (2008)
RSPO SCCS (2010)
MSPO SCCS (2019)
GMP (2014)
MESTI (2014)
FDA(2008)
GMP+B2 (2017)
MPCA (2014-Bi-annual certification)
Annual certification Achieved Annual certification Annual certification Certification for Food Safety, Sustainability and Others 12
Materiality Assessment

This assessment addresses key sustainability matters which have been identified after taking into consideration both the Group’s view on significant environmental, economic and social aspects, impacts, risks and opportunities which are vital to the success and continued growth of the Group, and the views and responses from our stakeholders on pressing material issues.

In identifying the material sustainability matters, and opportunities, we have drawn information from various internal and external sources of information which include the views of the Group Sustainability Reporting Team within our organisation, stakeholders, industry groups, standards recommended by global and industry specific reporting bodies, such as the Roundtable for Sustainable Palm Oil (RSPO) and the Global Reporting Initiative (GRI) and existing peer literature.

As a result of the above mentioned exercise and evaluation of the Group’s Sustainability Risks and Opportunities, we have this year identified 22 key sustainability issues under four main headers, namely Environment, Employees, Community and Marketplace, which we have assessed as being of high concern to stakeholders and of high significance for our Group in 2019 .

Data collected from various stakeholders are then analysed and used to create a materiality matrix which also includes the assessment on the significance of the identified key sustainability matters and the prioritisation of stakeholders to the organisation. The resulting Materiality Matrix is as shown on the following page.

Material issues which have been identified are then assessed by the Sustainability Reporting Team to establish if there are policies and procedures in place to address and manage these issues, and if none, to ensure implementation plans are drawn up and presented to the management for follow up as part of the Group’s sustainability commitment.

Quantifiable indicator data and targets are assigned where relevant and are communicated to our stakeholders via this Sustainability Report. The materiality assessment has been reviewed and endorsed by the Executive Committee (EXCOM) of UP.

Summary of Materiality Topics

Stakeholders Engagement

At United Plantations, we recognise that stakeholder engagement, assessment and feedback are an integral part of our global sustainability strategy and initiatives. 

The stakeholder groups which are key to our operations and which have significant influence over the impacts of our business are carefully identified and are engaged at various platforms and intervals throughout the year.  

The stakeholder engagement process which includes a proactive and both formal and informal approach, is carried out to fully understand their sustainability concerns and issues with a view to ensuring that their key interests in these areas are aligned with that of our Group.  

We are continuously improving our stakeholder engagement approach which is now evolving into more tailored and targeted engagement sessions with our stakeholders and the following pages provide an overview of the efforts involved in our group’s focus on stakeholder engagement.

Overview of Stakeholder Engagement
Stakeholders Group Specific stakeholders addressed Type of engagement Frequency Areas of interest Outcomes Addressed by specific Material Sustainability Matters
Shareholders & Investors Shareholders both in Malaysia and in Denmark
  • Engagement survey 
  • Annual General Meetings, 
  • Analysts briefings
  • At least once a year
  • Once a year
  • Twice a year
Deforestation, pesticides & chemical usage, Occupational Safety & Health (OSH), free, prior & informed consent (FPIC) and product quality Good relationship with shareholders and positive reputation amongst investors, constructive feedback 3

7

10

14

17

Customers/

Consumers

Major consumer goods manufacturers, Refineries, and end consumers
  • Engagement survey
  • One-to-one meetings
  • Visits to Estates, Mills and our Refinery
  • At least once a year
  • Periodic
  • Periodic
GHG emissions, discharges & waste management, deforestation, high carbon stock, peat development, human & workers’ rights, social welfare, OSH, product quality, food safety & sustainability certifications and supply chain  Better awareness of UP Group’s commitment to sustainability, and better understanding of our policies, culture and values 2

3

4

8

9

10

17

18

19

Employees Executives, staffs and workers
  • Annual employee survey,
  • Group Sustainability Committee meetings
  • Gender committee meetings, 
  • Guest Workers Welfare Committee
  • Occupational Safety & Health Committee
  • Internal trainings
  • Once a year
  • Once a year
  • Twice a year
  • Six times a year
  • Four times a year
  • Periodic
Human & workers’ rights, social welfare, OSH, equal treatment, grievance resolution, product quality, food safety & sustainability certifications Improved understanding of company policies and efforts taken to date, Inclusiveness in the management decision making 8

9

10

11

15

17

18

Small holders & Local communities Small holders surrounding and near our operations in Malaysia and Indonesia
  • Annual Small holders’ Field Day
  • One-to-one communications
  • Once a year
  • Periodic
Biodiversity & conservation, pesticides & chemical usage, workers’ rights. OSH, product quality and food safety & sustainability certifications An opportunity to sustainably enhance the agricultural practices of small holders, amicable solution to grievances, better social relations with UP Group. 1

7

8

10

19

20

Government Agencies DOSH, Labour Department, Indonesian local government, Indian High Commission
  • Engagement Survey
  • One-to-one meetings
  • Periodic
  • As and when necessary
Pesticides & chemical usage, human & workers’ rights social welfare, OSH, equal treatment. Code of ethics & governance, product quality, supply chain and evaluation of supplier/ contractors’ sustainability commitment  An opportunity to share the Group’s commitment, and policies and procedures to sustainable operations 7

8

9

10

11

12

17

19

20

Non-governmental organisations SUHAKAM, TENAGANITA, AMESU, MAPA, NUPW
  • One-on-one meetings
  • Engagement surveys
  • Direct correspondences via email and telephone conversation
  • As and when necessary 
  • Once a year
  • As and when necessary
Biodiversity & conservation, water impacts, pesticides & chemical usage, workers’ rights, social welfare, code of ethics & governance, grievance resolution and product quality  Better understanding of NGO’s concerns and raised awareness of UP Group’s sustainability commitments by NGOs 1

6

7

8

9

12

15

17

Palm Oil Industry Group Neighbouring plantations and, MPOA, MPOC, MPOCC
  • Engagement surveys
  • Once a year
GHG emissions, fire & haze, discharges & waste management, pesticides & chemical usage, human & workers’ rights, OSH, product quality, food safety & sustainability certifications and commodity prices Good relationship with industry group and maintain knowledge sharing to enhance the sustainability of industry  2

5

7

8

9

10

17

18

21

Suppliers and Contractors Suppliers of various inputs and key contractors within the Group
  • Engagement surveys
  • One -to-one meetings
  • Once a year
  • Periodic
Biodiversity & conservation, GHG emissions, discharges & waste management deforestation, high carbon stock, peat development, workers’ rights, social welfare. OSH and product quality   Raised awareness of UP Group’s sustainability commitments, better understanding of UP Group’s business 1

2

3

4

8

9

17

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