Palm Oil Action Plan
- Sustainability
- Efforts for sustainable procurement (action plans)
- Palm Oil Action Plan
In June 2018, we established the Palm Oil Procurement Policy to further our understanding of the environmental and societal issues pertaining to the palm oil industry and contribute to the healthy development of the industry. In December 2018, we issued a No Deforestation, No Peat, No Exploitation (NDPE) Declaration.
We have also set a CSV target of achieving 100% traceability to plantations by FY2030. Through the formulation and review of the Action Plan, we are advancing initiatives aimed at building a sustainable palm oil supply chain.
Palm Oil Action Plan
Action plan and progress
| Activities | Progress in FY2024 (including some results to date) | ||
|---|---|---|---|
| 1 | Establish a traceable, transparent supply chain | (1) Engage with suppliers | Participated in a workshop hosted by Kuala Lumpur Kepong Berhad in March 2024, attended by 110 people from 63 companies involved in oil production, oilseed processing, and plantations. Shared information about strengthening measures, collaborating with suppliers, improving traceability, and other efforts to comply with policy for NDPE.*1 Also participated in an NDPE workshop hosted by Cargill in August 2024. Shared information about progress on NDPE with companies involved in oil production, oilseed processing, and plantations. |
| (2) Procure certified palm oil and ascertain traceability to plantations | Set KPIs of over 50% SG RSPO-certified oil for palm oil and 100% certified oil for palm oil and palm kernel oil by 2030 as the basis for ascertaining traceability to plantations (70.5% and 67.3%, respectively, from January to December 2024). | ||
| (3) Ensure transparency in all routine procurement activities | Administered a survey of progress on NDPE commitments to all companies involved in oilseed processing that directly supply CPO and CPKO*2 to ISF. (1) Confirm plant management status and traceability information (quarterly) (2) Visit plants to confirm systems and operating status for safety and health management, etc. (quarterly) (3) Confirm expiration date of RSPO certification (monthly) (4) Administer questionnaire on environment and human rights, disseminate Group policy and Code of Conduct |
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| 2 | Protect forests and respect human rights by helping smallholders increase their productivity and profitability | (1) Plan and promote a Small Holder Support Program (direct support) | Began helping smallholders acquire RSPO and other certifications with ISF, Ferrero, and Hap Seng, one of the Group’s main sourcing plantations. Provided free technical support (conducting training, building training facilities, etc.). Planning to expand measures in 2025. Supported four smallholders (total area 166 ha). |
| (2) Participate in various working groups (indirect support) | • POCG*3 Participation of companies at each stage of the palm oil supply chain Frequency: Six online meetings and two in-person workshops per year Discussion topics: Issues in aligning NDPE commitments with land rights and labor standards • Collaboration with Inovasi Agriplot In October 2024, as part of EUDR compliance efforts, conducted traceability and risk assessment for EUDR-compliant suppliers of CPO and CPKO. |
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| 3 | Promote human rights efforts and collaboration with stakeholders | (1) Engage with plantations | With support from the NPO Earthworm Foundation, surveyed and provided support for improving work environments and hiring of plantation workers at ISF, Ferrero, and Johor Plantations (one of the Group’s sourcing plantations). Monitoring the action plans of plantations that received support. Planning to do the same with other plantations. |
| (2) Engage with oil mills | Worked with Dara-Lam Soon, a plantation and oilseed processor in Pahang, Malaysia, to conduct due diligence on employment practices, and investigated the actual working conditions of laborers at oil mills and plantations. | ||
| 4 | Reduce Scope 3 CO2 emissions in the palm oil supply chain | (1) Lobby Malaysian palm oil related government agencies to reduce CO2 emissions for palm oil and utilize a certified oil system | In 2024, certified oil comprised 72% of ISF’s supply. ISF’s goal is to reach 100% RSPO- or MSPO-certified oil supply by 2025. |
| (2) Use methane fermentation gas |
ISF signed a new gas supply agreement with Gas Malaysia in November 2024, and began using certified biomethane (green gas) in January 2025. Related article 1: ISF Takes Leading Step Towards Renewable Energy with Gas Malaysia’s First Certified Biomethane Supply Agreement Related article 2: ISF receives First Green Certificate from Gas Malaysia under Certified Biomethane Gas Supply Agreement |
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| (3) Absorb CO2 through afforestation | Planted 8,000 mangrove trees as of 2024, spending RM525,000 over three years. Planning to continue the planting project to expand the forest area. | ||
| 5 | Social contribution activities | Social contribution for residents living near the Dengkil Plant (ISF) | In March 2025, began providing support to indigenous people and local communities in collaboration with the Dengkil Local Indigenous Community Project. Participating in farming and handicraft making with respect for indigenous traditions helped understand the traditional values the local indigenous community has preserved, as well as the roles of that community in protecting the surrounding peatlands and the impact of mangrove planting on the local community (helping improve livelihoods and conserve the environment). |
*1 NDPE: An international standard aiming for sustainable palm oil procurement under the policy of “No Deforestation, No Peat, No Exploitation.” Used to guide corporate palm oil procurement and evaluate palm oil certification systems.
*2 CPO (Crude Palm Oil), CPKO (Crude Palm Kernel Oil): Unrefined palm oil and palm kernel oil
*3 POCG (The Palm Oil Collaboration Group): A group of companies involved in the palm oil supply chain that aims to accelerate effective action on NDPE
Please see here for information about other action plans. Additionally, see the following links for information about risk assessment for climate change in business involving palm oil (Response to TCFD recommendations) and dependency and impact assessment regarding biodiversity (Response to TNFD recommendations).
Percentage of certified oil/Traceability to oil mills and plantations
| Percentage of certified oil* | SG ratio of RSPO-certified oil | Traceability to oil mills | Traceability to plantations | |||
|---|---|---|---|---|---|---|
| Palm oil, palm kernel oil, fatty acids, etc. |
Palm oil | Palm oil | Palm oil, palm kernel oil, fatty acids, etc. |
Palm oil | Palm kernel oil | |
|
Materials procured from January–December 2024 |
67.3% | 77.7% | 70.5% | 99.8% | 92.9% | 91.3% |
|
Materials procured from January–December 2023 |
58.1% | 66.9% | 56.3% | 99.6% | 92.7% | 80.9% |
|
Materials procured from January–December 2022 |
52.3% | 59.6% | 51.1% | 98.8% | 90.9% | 72.7% |
* Certified by RSPO, MSPO, ISPO, or verified by a third-party organization
Initiatives at Group companies
Group company Intercontinental Specialty Fats Sdn. Bhd. (Malaysia) is proactively engaging in initiatives involving palm oil. The following link contains information about specific efforts.
Supply chain and procurement initiatives
The Group has established The Nisshin OilliO Group Supplier Guidelines, The Nisshin OilliO Group Basic Procurement Policy, and Palm Oil Procurement Policy to promote sustainable procurement efforts in collaboration with suppliers. These guidelines will serve as the basis for promoting procurement activities while respecting the rights of indigenous people, local communities, and other stakeholders as well as those of all workers.
Participation in industry groups and collaborative initiatives with other companies
Industry groups we have joined
The Nisshin OilliO Group has joined Global Compact Network Japan (GCNJ), Palm Oil Collaboration Group (POCG), and other industry groups through which we exchange information and implement initiatives involving palm oil. The following link contains details.
Collaborative efforts with other companies
The Nisshin OilliO Group proactively works with other companies on collaborative efforts; we are cooperating with Ferrero on efforts to support smallholders. Please see here for details.
Data on palm oil sustainability
The following are links to list of oil mills, our grievance procedure, grievance log, and sustainable procurement reports for palm oil.