Sustainable Palm Oil Implementation: The Whole of Business Approach at PT London Sumatra Indonesia Tbk By Bambang Dwi Laksono (PT PP London Sumatra Indonesia Tbk) Charlie Ross (Environmental Management & Monitoring Pty Ltd) Website : http://www.enviromanmon.com/ presented at RT4, Nov 2006 1 PT PP London Sumatra Indonesia Tbk Operated since 1906 Diversified Agricultural Crops Palm Oil, Rubber, Cocoa, Tea, Seed Operations in 6 Provinces of Indonesia 38 Estates, 17 Mills & Factories Research/knowledge driven Landholdings >160,000 ha Workforce >22.000 presented at RT4, Nov 2006 2 1
Why Whole of Business Approach? Range of products Multicrop plantings on some estates Staff rotation Wide geographic spread Range between established areas and development areas presented at RT4, Nov 2006 3 Implementation of RSPO P&C Legal Best Practice Agriculture Environmental Responsibility Social Accountability Principles applicable across all agricultural crops grown presented at RT4, Nov 2006 4 2
Implementation Uniform approach All locations All levels within company Two-year timeframe Framework (Process and commitment to change) presented at RT4, Nov 2006 5 Lonsum: Corporate Values Attribute Integrity Innovate Motivate Meaning/Rationale Act with honesty, reliability and fairness through long-lasting, continuing relationships. Create and adopt ideas which constructively improve upon the status quo. Lead by example and with commitment and vision wherever we can. Attribute Respect Nurture Trust Meaning/Rationale Value those with whom we work, the communities we touch and the environments within which we operate. Cultivate and grow all our people, recognizing the need for individual skills development to deliver an effective Lonsum team. Accept full responsibility for our own conduct within the team, and to unfailingly deliver that which we own. Contribute Recognize Accept our personal responsibility to input views and opinion. Acknowledge individual and team effort which is aligned to the needs of the shareholders and stakeholders. Excel Connect Continuously strive for the highest standards of performance. Join up our people and our knowledge through proactive communication. 6 3
Use of ISO 14001 Framework Designed for any organization, type, size and level of maturity, sector and geographic location ISO 14001 Framework assists our journey to systemic improvement of our environmental and social performance. IMPROVE PLAN Check DO presented at RT4, Nov 2006 7 Environmental Benchmarking Audit Audit representative samples; established areas (North Sumatra) & development areas (South Sumatra) Evaluate performance against ISO 14001 requirements, and the World Bank & IFC standards Output: recommendation for action plans presented at RT4, Nov 2006 8 4
Some Actions Taken Safety Signage Washing area after chemical use Providing Personal Protective Pesticide store Equipment presented at RT4, Nov 2006 9 OUTCOMES Environmental Awareness Ownership Workshop Better understanding of environmental awareness Having introduction to ISO 14001, RSPO & HCVF Understanding how to evaluate environmental & social aspects and impacts Providing inputs to management regarding prioritized programs Having E&S Aspects and Impacts Register for whole of business presented at RT4, Nov 2006 10 5
Scope of 12 Workshops Environmental Awareness ISO 14001 RSPO P&C HCVF Applicable regulations Field Visits Working Group for aspect & impact evaluation presented at RT4, Nov 2006 11 Participants: GM / Head of Dept Estate/Mill Managers Staff presented at RT4, Nov 2006 12 6
Comprehensive Environmental and Social Risk Assessment 13 activities (eg. mill, upkeep, workshop) 60 sub-activities (eg. boiler operation, cover crop maintenance, vehicle washdown) 159 potential aspects & impacts Business units: estates (38), mills/factories (17), research (2), bulking station (1) Aspect & impact register: 58 X 159 Legal requirements Combined score: high or extreme SIGNIFICANT RISK presented at RT4, Nov 2006 13 Objective, Target & Program 24 objectives to be executed by estate / mill / departments Environment Policy Legal Considerations Significant E & S aspect & impact Others RSPO P&C presented at RT4, Nov 2006 14 7
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HCVF Identification Stated in the Environment Policy MoU with WWF Indonesia for HCVF Identification in East Kalimantan and South Sumatra Start: late 2006 presented at RT4, Nov 2006 19 Documentation Policies Manuals Standard Operating Procedures Work Instructions Records Control of Aspects & Impacts integrated into Operational Procedures presented at RT4, Nov 2006 20 10
ISO 14001/RSPO P&C Progress Environmental and Social Policy Comprehensive E&S Risk Register Documentation Performance Objectives & Targets Improvement Plan Internal Audit Certification Audit presented at RT4, Nov 2006 21 Conclusions Framework of ISO 14001 assists implementation of RSPO P&C E&S aspect & impact integrated with Standard Operating Procedures P&C are applicable to all business activities Prioritization of E&S Programs according to significance, benefits and cost effectiveness presented at RT4, Nov 2006 22 11
Thank you Contact us: Bambang Dwi Laksono E-mail :Bambang.Dwilaksono@londonsumatra.com Charlie Ross Website : http://www.enviromanmon.com/ E-mail : EmanM@bigpond.net.au presented at RT4, Nov 2006 23 12