Supplier Testimonials. Siew Wai Loo Grievance coordinator Wilmar

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1 Supplier Testimonials Siew Wai Loo Grievance coordinator Wilmar

2 Respecting and Empowering People 24 October 2017

3 Wilmar's Global Presence Global leader in processing and merchandising of palm and lauric oils, edible oils refining and fractionation, production of oleochemicals, specialty fats, palm biodiesel and consumer pack oils Over 500 manufacturing plants in 17 countries* Extensive distribution network covering China, India, Indonesia and some 50 other countries Multinational workforce of about 92,000 staff globally United States of America Mexico Africa Leading supplier of edible oils Operates oil palm plantations, refineries and produces consumer pack oils, soaps and detergents Third largest sugar producer in Africa Brazil * Subsidiaries only, not including associates Morocco Ivory Coast Netherlands Belgium Germany France Spain Italy Ghana Nigeria Zambia Turkey South Africa Ukraine India Djibouti Myanmar Ethiopia Thailand Uganda Sri Lanka Kenya Tanzania India Leading branded consumer pack oils producer, oilseed crusher and edible oils refiner Mozambique Zimbabwe Mauritius Australia China Russia Bangladesh Vietnam Philippines Malaysia Singapore Indonesia Largest raw sugar producer and refiner Leading consumer brands in sugar and sweetener market Top 10 global raw sugar producers Australia Japan New Zealand #1 Player in China Largest edible oils refiner and specialty fats and oleochemicals manufacturer Leading oilseed crusher, producer of branded consumer pack oils, rice and flour One of the largest flour and rice millers Indonesia & Malaysia One of the largest oil palm plantation owners and the largest palm oil refiner, palm kernel and copra crusher, specialty fats, oleochemicals and biodiesel manufacturer Largest producer of branded consumer pack oils in Indonesia 3

4 Wilmar s NDPE Policy NO DEFORESTATION, NO PEAT, NO EXPLOITATION POLICY No Deforestation No Development on Peat No development on High Carbon Stock (HCS) Forests No development on High Conservation Value (HCV) Areas No burning Progressively reduce greenhouse gas (GHG) emissions on existing plantations Best Management Practices for existing plantations on peat Where feasible, explore options for peat restoration by working with expert stakeholders and communities No Exploitation of People & Local Communities Respect and recognise the rights of all workers including contract, temporary and migrant workers Facilitate the inclusion of smallholders into the supply chain Free, Prior and Informed Consent (FPIC) from indigenous and local communities to operations on lands to which they hold legal, communal or customary rights Resolve all complaints and conflicts through an open, transparent and consultative process

5 Collective Action to Address Labour Concerns Collaboration with BSR and GAR Review of current labour practices in the palm oil sector in Indonesia Formulate practical approaches to improving labour practices Collaboration with Verite Facilitate the development of action plans, taking into account stakeholder inputs Focus on high risk systemic issues Build internal process and strengthen capacity

6 Common Labour Challenges in the Palm Oil Industry & How Wilmar is Addressing Them Children in the Workplace Families with children live and work in the plantations Provide access to education and childcare facilities and monitoring attendance. Continued socialization of No Child Labour policy. Forced Labour Passport Retention is a common practice and an indicator of forced labour Passport lockers for workers and free access to passports Fair & Equal Treatment of Workers High number of temporary workers, predominantly female. Set of criteria to convert temporary workers to full time workers and SOP for temporary job allocation. Priority for temporary worker conversion given to female workers.

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8 Sustainability Report 2016 Our Sustainability Report reinforces our commitment to our people. Be it staff in our corporate offices, workers in the oil palm fields or the children we support through community outreach programmes; we care about making a positive impact by making things right Final.pdf

9 Wilmar s NDPE Policy NO DEFORESTATION, NO PEAT, NO EXPLOITATION POLICY No Deforestation No Development on Peat No development on High Carbon Stock (HCS) Forests No development on High Conservation Value (HCV) Areas No burning Progressively reduce greenhouse gas (GHG) emissions on existing plantations Best Management Practices for existing plantations on peat Where feasible, explore options for peat restoration by working with expert stakeholders and communities No Exploitation of People & Local Communities Respect and recognise the rights of all workers including contract, temporary and migrant workers Facilitate the inclusion of smallholders into the supply chain Free, Prior and Informed Consent (FPIC) from indigenous and local communities to operations on lands to which they hold legal, communal or customary rights Resolve all complaints and conflicts through an open, transparent and consultative process

10 Achievements Since NDPE Policy Launch IN THE INDUSTRY1st to launch a sustainability dashboard to publish supplying CPO mills online to disclose traceability of mills to launch a grievance procedure Achieved 95% traceability to mills in Malaysia and Indonesia Over 80% of planted areas certified to the standards of the RSPO Completed field assessments on 64 mills Completed engagements with over 200 international and local NGOs

11 Sustainability Dashboard 11

12 Transparency and Accountability to All Stakeholders Voluntarily raised alleged labour rights violations on Grievance Procedure regular updates provided to all stakeholders. Proactive communications to key stakeholders. Two Internal Reviews conducted and review reports published. External review conducted by BSR and review reports published. Methodology: visual observations, interviews, focus group discussions and documentation reviews. More than 100 Wilmar employees, almost all of whom are nonmanagement workers, were interviewed. External due diligence audits conducted by RSPO and ISCC. Engagements with third-party suppliers implicated One supplier suspended due to failure to take corrective actions.

13 13

14 Thank You

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