Wilmar employees get a
big Thank You card from
the children of the Singapore Children’s Society.
Find out more on page 6.
June 2011 | Issue 5
Inside this
issue:
Wilmar Signs
Landmark Tripartite MoU on
Orangutan
Conservation
1
RSPO Certification Update
2
Wilmar to Offer
Segregated
Products
3
Wilmar is ISCCcertified
3
Towards a
Green Supply
Chain - Engaging Suppliers in
Sustainability
4
The Challenges,
Costs and Benefits of Maintaining High
Conservation
Values
5
Wilmar Signs Landmark Tripartite MoU with BOS
Foundation and Indonesian Government on Orangutan
Conservation
W ilmar
Wilmar Employees Take Kids
from the Singapore Children’s
Society Out for
Some Fun
6
Empowering
our sales force
to promote
sustainable
products
7
Close-up: CEO
of Kerry Group
Kuok Foundation
8
Extending a
Helping Hand—
Sapi Plantation
Employees
Raise Funds for
Colleague’s
Sick Child
10
(―Wilmar‖)
palm plantations and to eventually communicate to
reaffirmed its commitment towards the long-term
other oil palm companies as a working example of
protection and conservation of orangutans and
how to achieve orangutan conservation on planta-
their habitat when they entered into a tri-party
tions, with the hope that this could ultimately
Memorandum of Understanding (MoU) with the
become an industry-wide programme in Central
Borneo Orangutan Survival Foundation (―BOSF‖)
Kalimantan.
International
Limited
and the government of Central Kalimantan, Indonesia.
Specifically, the project activities include:
This landmark MoU formalises and consolidates
1) Developing and trial-running orangutan BMP in
the partnership between BOSF, the government of
oil palm plantations, including protection; habitat
Central Kalimantan and Wilmar who will work to-
establishment and enrichment; translocation of
gether on a common agenda:
isolated orangutans; buffer zone management;
research; training and education; and human-
1. Commitment to the long-term conservation of
orangutan conflict mitigation (within the plantation
orangutans and their habitat;
landscape)
programme
implementation.
Successful results and framework will be promoted
2. Dedication to developing a pilot project of Best
Management Practices (BMP) for orangutans in oil
CSR Tribune | June 2011
Page 2
and shared with other plantation operators
Central Kalimantan ‗The Clean and Green
to achieve orangutan conservation across a
Province‘, all aspects of development that
wider landscape.
we undertake in this province must be truly
2)
Involving local communities in the
“We welcome this initiative
in
as a means of ensuring that
environment.
keeping
with
protection
of
the
orangutan conservation and management
the habitat of the Bornean
process, with efforts towards community
orangutan is preserved in a
I also see that there is a potential for
sustainable fashion, thus
measurable reduction on emissions from
development;
assisting the BOS
3)
Identifying opportunities to implement
BMP as formal policy in Central Kaliman-
Foundation in its mission of
making certain that the
tan.
specie survives.”
the
forest
conservation
sector
and
biodiversity in the activities of initiating Best
Management
Practices
for
oil
palm
plantations. To that end I hope that we can
together search for a way in which we can
Dr. Togu Manurung, CEO and Chairman of
contribute to the committment of our
the BOS Foundation, said: ―We welcome
country to reduce emissions by 26%, as
this initiative as a means of ensuring that
declared by President Susilo Bambang
the habitat of the Bornean orangutans is
Yudhoyono in Copenhagen in 2009.‖
preserved in a sustainable fashion, thus assisting the BOS
Foundation in its mission of making certain that the specie
Jeremy Goon, Wilmar‘s Group Head for CSR, said: ―We are very
survives. This tripartite MoU is a perfect example of how major
excited to be part of this meaningful endeavour. We have been in
stakeholders can work together toward environmental goals.
discussion with BOSF for some time on how to address the plight
of orangutans in areas susceptible to land development.
Only through the cooperation of NGOs, such as BOS Foundation,
government and business can sustainable solutions be found.
We are pleased to be able to help advise Wilmar, one of the
We
recognise that this issue is more than just an environmental
challenge, so the involvement of the local government will help
escalate our efforts for orangutan conservation.
largest stakeholders in Central Kalimantan, on Best Management
Practices for oil palm companies in orangutan areas. We are also
With this project, we hope to demonstrate that large scale planta-
pleased to be able to assist the government of Central Kalimantan
tion companies can be compatible with sustainable development.
in its effort to balance economic development with conservation in
We are hopeful that an equitable balance between economic,
a collaborative manner.‖
social and environmental values can still be achieved while natural resources continue to be harnessed for consumption needs if
Augustin Teras Narang, Governor of the Central Kalimantan
Province, said: ―I am pleased to support this tripartite cooperation.
all sectors of the society are truly committed to finding solutions to
the sustainability cause.‖
This is in line with the vision and mission of the province of
RSPO Certification Update
A ll our mills and estates in Malaysia are fully RSPO-certified
Another mill unit and its supply base in Central Kalimantan, Indo-
with the certification achievement of our last mill unit in East Ma-
nesia is awarded RSPO certification. Assessed by TUV Rhein-
laysia.
land, PT Kerry Sawit Indonesia produces about 54,000 tonnes of
Assessed by SIRIM QAS, Sri Kamusan will contribute
about 26,500 tonnes of certified sustainable palm oil (CSPO) to
the Group‘s annual RSPO production.
Neuchlos delivers the recyclable items to the Recycling Centre every weekend.
CSPO.
CSR Tribune | June 2011
Page 3
Wilmar to Offer Segregated Palm Products
W ilmar will soon be able to offer a full range of
certified sustainable palm oil that cater for the needs of
certified sustainable palm oil (CSPO) products in all
the European food industry. Together we are now able
supply chain systems — segregation, mass balance
to offer these products sustainably and affordably. The
and book & claim — to meet customers‘ different
supply of segregated certified sustainable palm oil is so
needs.
important that we felt we had to make it available sooner
rather than later. We have heard for a long time from
Especially for the Continental European market, Wilmar
food manufacturers that it has been difficult to source
will be able to supply fully segregated palm oil from its
many of the palm oil products needed in a sustainable
refinery in Brake, Germany from mid 2012. Until that
format and therefore they have set their targets for using
time, CSPO products are available in mass balance
only sustainable palm oil quite far off in the future.‖
form and fully segregated for some of the quantity. The
refinery in Brake has a full capacity of approximately
Up to now, traceable palm oil is primarily only available
700,000 tonnes per annum, of which 300,000 will be
to the Europe market, due to the lack of a robust
dedicated to producing segregated certified products.
infrastructure worldwide. Wilmar is committed to
supporting the development of a truly sustainable palm
Martua Sitorus, Director of Wilmar International
oil industry, and will continue to support the
Limited, commented:
development of the physical CSPO supply chain
mechanisms, until traceable CSPO becomes more
―Wilmar is very pleased that our Brake refinery is now
available, mainstream and commercially viable in the
able to produce a whole host of products and blends of
market.
Wilmar is ISCC-Certified
I n addition to the Roundtable for Sustainable Palm Oil

social sustainability.
(RSPO) certification, Wilmar is also diligently pursuing
another sustainability certification programme - the International Sustainability and Carbon Certification (ISCC),
with some of its refineries, mills and plantations now
certified against the ISCC standards.
It was introduced into the German law in November
2010, and is required for companies wanting to supply
biofuels in Germany, which provides subsidies, tax exemptions and other privileges / concessions to biofuel
users.
The ISCC scheme was developed for the certification of
biomass and bioenergy with specific sustainability components across the entire biofuel supply chain:
The achievement of ISCC certification signifies Wilmar‘s
compliance with the ISCC standards and that the
Group‘s products meet the strict sustainability criteria

reduction of greenhouse gas (GHG) emissions;
set by the European Union‘s Renewable Energy Directive (RED).

sustainable use of land;

protection of natural biospheres; and
CSR Tribune | June 2011
Page 4
Towards a Green Supply Chain
- Engaging Suppliers in Sustainability (RSPO)
O ne of the key sustainability issues concerning the palm oil industry is getting to the roots
of the supply chain.
Beyond our own plantations and mills, we are
equally concerned about getting our third-party
suppliers to join us on the sustainability bandwagon so we can eventually secure a continuous supply of sustainable products. This is also
in line with the RSPO code of conduct that
requires members to promote and communicate this commitment throughout its own
Above: Speakers, top (from right) — Jeremy Goon, Group Head for CSR and
Simon Siburat, Group Sustainability Controller.
organisation and to its customers, suppliers,
sub-contractors and wider value chain where
But getting suppliers on board - specifically the RSPO certification - is easier
necessary.
said than done unless the companies have the financial wherewithal and a
certain clout with their suppliers. Of those present in the workshop, only five
To this end, we hosted a training workshop on
RSPO (Roundtable on Sustainable Palm Oil)
and responsible sourcing for our suppliers in
Kota Kinabalu, Sabah, Malaysia. About 25
supplier companies are members of the RSPO. Overall, the seminar was wellreceived by suppliers who fielded questions on the advantages and difficulties of
RSPO certification, with many expressing that they will give the certification
some serious consideration.
palm oil supplier companies attended the session.
Simon Siburat, Wilmar‘s Group Sustainability
Controller said: ―Consumers are increasingly
demanding traceability and transparency in
palm oil supply chain, and moving towards
sustainable sourcing. Since third-party
suppliers are an important component of our
supply chain, we see the importance of
influencing the sustainability of this crucial link
in our supply chain by building capacity among
our direct suppliers.‖
The Impact
The workshop yielded some positive results with two
supplier companies committing to visiting our RSPO
Through such workshops, Wilmar is not only
building capacity among its suppliers to
implement responsible procurement but is also
helping them to address challenges by sharing
with them Wimar‘s own experience in the face
of growing demand for sustainable products as
well as RSPO implementation.
certified plantations and mills in July. The visiting
teams will comprise senior and middle management
teams who would like to have some first-hand
experience to understand how RSPO certification
programme is implemented on the ground.
CSR Tribune | June 2011
Page 5
The Challenges, Costs and Benefits of Maintaining High Conservation
Values
O n the back of growing population and
rising demand for food, a multi-stakeholder
forum was hosted jointly by Zoological Socie-
tal infrastructure. Land set aside as corridors
“The basic agrarian law
that governs land use for
for connectivity are often interpreted as idle
land; and before the land title is issued out to
ty of London (ZSL), Wildlife Conservation
oil palm cultivation has yet
secure these areas, it can be repossessed
Society and Proforest to discuss if and how
to recognise conservation
by the local government and passed to an-
palm oil and environmental biodiversity can
set aside in line with HCV
other grower, who may be a non-RSPO
co-exist, while still enabling consumption
needs to be met.
The 2-day symposium in London from 5-6
concepts which are for
member, for development. Even when the
more than just providing
land title has been issued, there are regula-
environmental
tions that allow government to take the land
infrastructure.”
back if the area is deemed to be not actively
May 2011 was well attended by a spectrum
managed in accordance with the Land-use
of sector representatives – producers, pro-
provision of the land title which is meant for
cessors, retailers, research institutions, non-
cultivation, livestock or aquaculture.
government organisations and governments. The symposium
gave insight into the challenges confronting the palm oil industry,
Another challenge facing the growers in Indonesia is on the gov-
and presented solutions and opportunities of balancing profit,
ernment regulation that makes it mandatory for companies to
planet and people.
provide smallholdings to local communities based on 20% of the
total land holdings under its control. In most cases, the communi-
In this context, Simon Siburat, Wilmar‘s Group Sustainability Con-
ty uses the HCV as a bargaining tool to include these HCVs areas
troller shared about the Group‘s experience in managing High
as part of the 20% computation of the smallholding areas. There-
Conservation Value (HCV) areas within its plantation landscape –
fore companies often find it difficult to comply with developing
specifically in HCV identification, management and protection in
smallholdings even on areas alienated for conservation. This is
Indonesia.
further complicated by the current HCV toolkit in Indonesia which
is a general toolkit well suited for identification of HCV under a
Limitations of the laws
forest concession that generally has better quality forest, and
better chances of allowing individuals to become progenitors of
The basic agrarian law that governs land use for oil palm cultiva-
new populations. Generally speaking, land offered for oil palm
tion has yet to recognise conservation areas set aside in line with
cultivation usually has a relatively more degraded landscape.
HCV concepts which are for more than just providing environmenCost of doing
Below: Presenting to the audience in London
business
The precautionary
approach adopted
and the varying
standards of
interpretation by HCV
assessors have led to
a significant portion of
land being not
recommended for
CSR Tribune | June 2011
Page 6
development even when it has already been alienated for agricul-
with sustainability standards (Branding), reputational enhance-
tural purposes by the governmental authorities. The cost of set-
ment, provision and protection of environmental services, protec-
ting aside HCV areas can be broken down to 1) land acquisition
tion of endangered species and eco-systems, and social licence.
costs such as land compensation, survey, legal procedures and
The HCV assessment process helps in the preservation of cultur-
land title application; 2) operational costs including assessments
al identity and through the numerous processes of consultations,
and management of those areas.
it ensures that the community‘s rights are recognised, and galvanizes trust between the company and the community, thereby
Benefits
giving plantation companies the social license to operate.
In spite of the challenges and costs, conserving HCV areas does
bring about tangible and intangible benefits, amongst which are but not limited to – addressing stakeholder concerns, compliance
Wilmar Employees Take Kids from the Singapore Children’s Society
Out for Some Fun
Nobody can do everything, but everyone can do something. - Author Unknown
About the Singapore Children’s Society
Get involved! That‘s the call from Wilmar‘ CSR Department
The Singapore Children's Society (SCS)
when it organised an activity to get employees interested in em-
protects and nurtures children and youth of
ployee volunteerism. Wilmar planned an outing for some chil-
all races and religions. Each year the SCS
dren from Singapore Children‘s Society (SCS) to Universal Stu-
reaches out to about 57,000 children, youth
dios Singapore (USS).
and families in need. Established in 1952, its
Over 30 employees responded to our call; and on Saturday, 26
February, the Wilmar volunteers accompanied a group of 60
children from SCS for a fun-filled day at the USS. This excursion
was a first for all of the kids and many of our colleagues, and
gave us the opportunity to foster a sense of volunteerism in our
Singapore office while at the same time enjoy a shared experience with the children.
Thank you card from
the children at Singapore Children’s Society
Staff Chris Lim and Patricia Mui having a fun day
at the Universal Studios, Singapore
services have evolved to meet the changing
needs of children. Today, the SCS operates
nine centres islandwide, offering services in
the six categories of: Caregiving, Preventive,
Developmental, Remedial, Community and
Public Education.
CSR Tribune | June 2011
Page 7
Empowering our Sales Force to Promote Sustainable Products
O ne way of advancing our sustainability efforts and encouraging the uptake of certified sustainable palm oil
(CSPO) is to empower our Sales team
on sustainable product knowledge to
enable them to promote these
products to customers.
With many global multi-national
corporations (MNCs) with
manufacturing base in China
increasingly starting to make enquiries
about CSPO, we held a training workshop on 13 April 2011 in our Shanghai
office to educate our sales team about
RSPO certification, including traceable
supply chain
systems and product
communication and claims. The workshop was conducted with two objec-
CSPO product communications and claims.
tives in mind:
1) to empower our sales force to address customers‘ queries
on these products; and
2) to enable our sales force to also start promoting these
products to customers who are not yet aware of or have yet to
show interest in these products.
More than 40 sales and marketing colleagues from our Shanghai, Shengzhen and Guangzhou offices attended the briefing
at the Shanghai office, and enthusiastically fielded our CSR
Manager, Sharon Chong, with many questions such as:
1) how the various system supply chain works;
2) what are the type of operational preparations and set-ups
required at our own manufacturing plants as well as at our clients‘;
3) how long it will take to set up those systems; and
4) what the cost vis-a-vis benefits to customers and ourselves
are.
Bottom right: Sharon Chong, CSR Manager
giving a presentation to colleagues in Shanghai.
CSR Tribune | June 2011
Page 8
Close up: CEO of Kerry Group Kuok Foundation
Name: Dr David Pang
Appointment: Chief Executive Officer, Kerry Group Kuok Foundation
A t Wilmar, we believe that employee volunteerism should be
Through what methods do you achieve the foundation’s
one of the key components of our corporate citizenship strategy.
goals?
Immediately following the excursion in which Wilmar employees
spent a day with children from the Singapore Children‘s Society at
Universal Studios Singapore, on March 24, Wilmar invited Dr.
David Pang, Chief Executive Officer of the Kerry Group Kuok
Foundation, to speak to Wilmar colleagues about the importance
of a caring heart and the spirit of philanthropy, in a bid to further
inspire, encourage and foster volunteerism within the Group.
Since 2007 the Kerry Group Kuok Foundation has been committed to building a model to address the social issue of uneven distribution opportunities which the foundation believes is the root
cause of disharmony in the world. Through investment in health,
education, enterprise and water resources the foundation strives
to fulfill its aim to equip villagers with appropriate capabilities so
that they have the opportunity to change their own destiny, and
eventually that of others. In an interview with Dr Pang, he gave
insights into the works of the Foundation, including how it fosters
employee volunteerism within the Kerry Group.
Can you please tell us more about the aim(s) of the Kerry
Kuok Foundation?
Our aim is to address the uneven distribution of opportunities in
society, which we believe is where poverty comes from, and is
the root cause of the disharmony in the world. We do this by
helping the poor establish their capability, so
that they can create opportunities
for themselves, and eventually
they can help others too.
Dr Pang with a Szechuan
village boy
If we are to change people, we need to take a holistic approach.
Under this approach we have identified four key areas: health,
education, enterprise and water resources. Everything we do
leads to our goal through one of these strategies. We may be
able to help 70% of the people‘s needs; but the people must
have the capability to take care of the remaining 30%.
Sometimes we may begin by bringing some ―hardware‖ to people, but with an ultimate goal to change the software, i.e. people‘s mindset. For example, while we help villagers build a road
to make access easier, our goal is to bring the villagers
together, so that when they are building their own road, they are
also building their caring hearts
CSR Tribune | June 2011
Page 9
not only for themselves but also for others in the village, as well
to become an area of development under coordinated planning
as the sustainability of the village for generations to come.
and execution of the villages and central towns.
Can you tell me more about the foundations guiding
Can you please share with us some of your most moving
principles?
experiences?
We are guided by the principles that all we do must:
After the magnitude 8.0 earthquake in Sichuan on 12 May 2008,
we went there to set up our base. As always, we began our work
Be sustainable in transforming economic values into social
by talking to the people there. A farmer told us that his life had
values.
always been tough, and for farmers like him, they worked hard
Be people-focused, not material-focused. We help build infra-
all their life for two ―子‖, which were ―房子‖ (house) and ―孩
structure, but our aim is to change people
子‖ (children). When the earthquake struck,
through the infrastructure and the process of
both houses and children were snatched
building it.
away from them within seconds. The farmer
Cure the root cause, which takes time but the
effect is sustainable. Meanwhile care for the
immediate needs.
Be replicable to other areas in order to maximise the impact of our model. We have projects in 11 provinces in China, but our aim is
for our model to be replicated and spread to
even more people in need.
“Whatever you do, if it s
not people-related,
normally it is not very
meaningful. If you want
to make an impact on
people, you need to
change their mindset and
inspire them. Money
cannot change people –
only people can change
people.”
was in tears as he spoke – we couldn‘t hold
back our tears either.
Three years on, I have seen tremendous
changes among the people there. They have
pulled themselves together and made use of
the opportunities available to them to regain
hope and confidence for their future, and they
also create opportunities for themselves.
Teary faces had turned into smiling faces.
That was one of the most moving experienc-
Integrate resources available in society and
es I‘ve had.
apply them at the right place for the maximum
value.
How do you promote employee volunteerism in the Kuok
Cultivate capabilities among the poor so that they can create
their own opportunities and change their destiny.
Group of companies? What are some of the activities
they participate in? How do we get our colleagues to be
interested in volunteering, and what do you think is the
Unite villages and towns by starting with a village, then expanding to a network of
villages
best way for our colleagues to get involved?
We have been speaking to groups of employees from the Kuok
Group of companies about
Sichuan earthquake 12 May 2008:
From ruins….
our work, and how they
can contribute. We are
glad to see a caring heart
in many of our colleagues
– I always say that in order
to help people, money is
not enough. You need to
have a heart and you must
be willing to devote your
time.
To laughter...
CSR Tribune | June 2011
Page 10
For example, volunteers from the Kuok Group of companies have
There are many different ways to help people, and of course
become mentors to some farmers‘ children in our Buddy Pro-
volunteering is one way. And if any company would like to set up
gramme, and some others have become pen-pals to children who
their own foundation, we are more than happy to share with them
have undergone surgery for congenital heart disease.
our experience and do as much as we can to help.
Our aim of getting them involved is not only to have some extra
What inspired you to move from profit organizations to
the non-profit sector?
hands, but also to spread our message of helping the poor to
create opportunities for themselves. I think what is attractive
It is the meaning of life that I‘m after. Whatever you do, if it is not
about
people-related, normally it is not very meaningful. If you want to
volunteering is the prospect of bringing change in others‘
lives through the work with other like-minded people.
make an impact on people, you need to change their mindset and
inspire them. Money cannot change people, only people can
change people.
Extending a Helping Hand — Sapi Employees Raise Funds for
Colleague’s Sick Child
S taff at Sapi Plantation estate, one of
Wilmar‘s plantation units in Sabah,
Malaysia joined hands to raise funds to
support the recovery of the sick child of
colleague, Christenos Kulau, a security
personnel at Sapi estate. Normelina
Christenos is a vivacious one-year old
girl, despite being diagnosed with
congenital heart problem which
required her to undergo a surgery at the hospital in the capital
city, Kuala Lumpur.
Hailed from a small village Kampung Penangah Tongod in Sabah, they do not have any relatives or friends in the capital for
support. The Sapi estate management made an appeal to employees to raise money to fund their expenses in Kuala Lumpur
during the course of the three-week treatment, including flight and
sundry expenses.
Nomelina Christenos being held by her mum.
Editorial Team
Produced by:
Wilmar CSR Dept
Editorial Members:
Jeremy Goon
Sharon Chong
Contributors:
Simon Siburat
Jocelyn Ang
Tee Seng Heng
Wilmar International Limited, founded in 1991, is today Asia‘s leading agribusiness group. Wilmar is ranked amongst the largest listed companies by market
capitalisation on the Singapore Exchange.
Our business activities include oil palm cultivation, oilseeds crushing, edible oils
refining, sugar, specialty fats, oleochemicals and biodiesel manufacturing and
grains processing. Headquartered in Singapore, Wilmar has over 300 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries to support a well established processing and
merchandising business. Wilmar also manufactures and distributes fertilisers
and owns a fleet of vessels. The Group is backed by a multi-national staff force
of about 88,000 people.
For more information, please log on to www.wilmar-international.com
For feedback or query, please email [email protected]