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 FY2025 (including some results to date) | ||
|---|---|---|---|
| 1 | Establish a traceable, transparent supply chain | (1) Engage with suppliers |
In FY2025, we engaged with suppliers through the following activities.
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| (2) Procure certified palm oil and ascertain traceability to plantations |
Percentage of certified oil toward improving traceability to plantations (by 2030)
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| (3) Ensure transparency in all routine procurement activities | We utilize the NDPE*3 IRF (Implementation Reporting Framework) tool to monitor NDPE compliance and commitments across all active CPO and CPKO suppliers within the ISF supply chain. We also administered a survey of progress on NDPE commitments to all companies involved in oilseed processing that directly supply CPO and CPKO to ISF.
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| 2 | Protect forests and respect human rights by helping smallholders increase their productivity and profitability | (1) Plan and promote a Smallholder Support Program (direct support) |
ISF in collaboration with Ferrero Trading Lux S.A and Hap Seng Plantations Holdings Berhad implemented a three-year RSPO Smallholder Support Program (2023-2025) in Sabah, Malaysia. The initiative aims to support five smallholder farmers for RSPO certification. As of 2025, three of these smallholders have obtained RSPO certification, while four have achieved MSPO certification. For details, see ISF Sustainability Report 2025 (p. 59) and the Palm Oil Sourcing Report. |
| (2) Participate in various working groups (indirect support) | ISF continues to participate in POCG*4 activities as a member of the group. It also continued its partnership with Innovasi Agriplot to conduct traceability and risk assessments, ensuring EU Deforestation Regulation (EUDR) due diligence and compliance across our CPO and CPKO supply chain. | ||
| 3 | Promote human rights efforts and collaboration with stakeholders | (1) Engage with plantations | The Labour Transformation Programme (LTP) aims to help improve working conditions and recruitment processes of plantation and mill workers. ISF has completed the program initiatives with the following suppliers: • Johor Plantations (2021 to 2023) • Dara-Lam Soon Plantations (2023 to 2025) For details, see Earthworm’s case study report. |
| (2) Engage with oil mills | |||
| 4 | Reduce Scope 3 CO2 emissions in the palm oil supply chain | Transition to certified sustainable palm oil (such as RSPO and MSPO), which delivers a lower product carbon footprint compared to conventional oils. | In 2025 (January to December), certified oil comprised 78% of ISF’s supply, short of its goal to reach 100% RSPO- or MSPO-certified oil supply by 2025. |
| 5 | Environmental conservation activities | Mangrove Rehabilitation Program: Phase 2 Launch (2025–2027) | Following the successful completion of Phase 1 (2022–2024), ISF officially launched Phase 2 of the Mangrove Rehabilitation Programme in Malaysia, under a formal agreement signed in April 2025. Phase 2 targets the planting of 4,000 mangrove trees to restore two hectares of degraded coastal peatland. The first planting activity under Phase 2 was carried out on September 20, 2025, with 500 trees successfully planted through a collaborative community effort involving 29 ISF employee volunteers, local community members, and partnering NGO staff. |
| 6 | Social contribution activities | Social contribution for residents living near the Dengkil Plant (ISF) | In March 2025, field visits were made to an organic farm in Dengkil, the Kuala Langat North Forest Reserve, and the Temuan Culture Information Centre to provide practical insights to members of ISF’s ESG Committee. The visits imparted valuable real-world experience in sustainable organic farming practices, peatland conservation, and fire marker identification, and also provided a venue for interaction with the indigenous Temuan community. |
*1 Social impact assessments (SIA): The Malaysian Sustainable Palm Oil (MSPO) certification system requires certified operators to understand and implement a social impact assessment (SIA) process to identify, assess, and manage potential social impacts in their business activities.
*2 CPO (Crude Palm Oil), CPKO (Crude Palm Kernel Oil): Unrefined palm oil and palm kernel oil
*3 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.
*4 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 2025 |
63.6% | 74.6% | 67.8% | 99.7% | 94.3% | 91.8% |
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Materials procured from January–December 2024 |
67.3% | 77.7% | 70.5% | 99.8% | 92.9% | 91.3% |
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Materials procured from January–December 2023 |
58.1% | 66.9% | 56.3% | 99.6% | 92.7% | 80.9% |
* 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 the 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. For details, see the Initiatives pages in the Palm Oil Sourcing Report.
Data on palm oil sustainability
The following are links to a list of oil mills, our grievance procedure, a grievance log, and the Palm Oil Sourcing Report.