Sustainability

Our traceability

As part of our transparency commitment, LIPSA publishes its palm and derivatives supply chain every six months. In addition, we have mapped our entire 2019 mill list on the Global Forest Watch (GFW) platform. We are working to mantain our 100% traceability to the mill and to start tracing to plantation by 2021. The continuous commitment of our suppliers will help us achieve these objectives.

lipidos_mill_database_H1_2020

Supply chain schema

Grievances

LIPSA is committed to respond and take action against any violation of its NDPE Policy detected in its supply chain. Our grievance procedure and decision trees allow us, jointly with the collaboration of our suppliers, to correct any bad practices detected.

Public grievance list

LIPSA investigates all grievances received jointly with the commitment of its direct suppliers and its sustainability partner, the Earthworm Foundation. Below are the grievances we are involved in:

Latest update: 30/10/2020

Grupo Hame

Data received: 19/06/2018
Summary of Grievance: Human Rights violations. Corruption Environment pollution (river contamination).
Grievance source: Various NGO's
Status: Monitoring
Progress Updates and Resolution: We are currently monitoring REPSA jointly with the help of Earthoworm Foundation. We conducted a field visit in November 2018 and implemented montly check-in calls with REPSA to monitor their progress. REPSA demonstrated their commitment and have several work streams in place to address all the environmental, governance and social issues. REPSA are periodically publishing the Progress Report about labour, human rights, environment and transparency. We reduced the frequency of our monitoring to punctual check-in.

Genting Plantation

Data received: 26/08/2019
Summary of Grievance: Orangutans killed in its plantations, recent 2019 deforestation in Genting concessions and labour issues.
Grievance source: Various NGO's: Migthly Earth Reports, Greenpeace
Status: Suspended
Progress Updates and Resolution: Lipsa has decided to suspent Genting plantations of our purchase list as there is not alignment with our principles and NDPE Policy. We are enging and monitoring our direct supplier who is currently engaging Genting Plantations.

Samling / Gleanealy

Data received: 26/08/2019
Summary of Grievance: Samling and their palm oil company Glenealy have been campaigned against by NGOs for years for widespread NDPE violations in multiple countries, including Malaysia, Indonesia, Myanmar and PNG, Liberia, and Cambodia.
Grievance source: Various NGO's: Migthly Earth Reports, Greenpeace
Status: Suspended
Progress Updates and Resolution: After engaging with our direct supplier and revised the case Lipsa has decided to suspend Samling/Gleanealy plantations of our purchase list as there is not alignment with our principles and NDPE Policy.

Industrias Chiquibul

Data received: 22/04/2020
Summary of Grievance: Attempt to evict approximately 200 families from the "Tierra Blanca Calle Principal" farm in the Tierra Blanca micro-region, Sayaxché, Petén. Alleged criminalization of former company workers who held protests for not having renewed their employment contract with Industrial Chiquibul.
Grievance source: NGO: CONDEG
Status: Suspended but monitoring
Progress Updates and Resolution: Even though Industrial Chiquibul is actively trying to engage with the community leaders of Tierra Blanca and with CONDEG regarding these alleged issues, to date there has not been an agreement to establish a dialogue. Lipsa has decided to suspend Industrial Chiquibl as at the moment there is not alignment with our NDPE Policy. We are following up the case. Once the dialogue will be established and an action plan will be in place in order to address these labour and community issues we will review the documentation and decide wheter or not to re-enter Industrial Chiquibul in our supply chain.

FGV Holding Berhard

Data received: 01/10/2020
Summary of Grievance: Human rights violations and violations of principles and fair labour practices.
Grievance source: Mighty Earth, International Labor Rights Forum (ILRF), US border and customs and RSPO
Status: Suspended but monitoring
Progress Updates and Resolution: On July 2015, Wall Street Journal ran an article alleging that Felda has breached labour conditions in its plantations. The allegations mainly say that forced labour is being used and the workers are not paid minimum wages. Further, it is alleged that their health and working conditions is are neglected and also that their employers withheld their passports. On August 2015, RSPO compliants Panel as a result of the investigation conducted by ASI, has sanctioned FGV over forced labor, worker trafficking, and 25 breaches of the RSPO's sustainability certification criteria on FGV plantations. Since then FGV have submit their action plan to RSPO and worked in solve the breaches and in August 2019 RSPO lifted the suspension. On 13th January 2020 RSPO published a letter suspending FGV's P&C Certificate for Kilang Sawit Serting and all certification processes at each uncertified management unit within FGV, as a result of subsequent verification audit after the conditional lifting. On 30 September 2020, the United States Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) of palm oil and palm oil products made by FGV at all U.S. Lipsa has decided to suspend FGV Holding Berhard as at the moment there is not alignment with our NDPE Policy. We are following up the case and we will review our Decision once FGV perform a credible third-party audit for revocation of the US border decision.