Risk Assessment of Our Mills
By 2023, there are 9 mills that supply their FFB exclusively from our core, plasma and external plantations. We classify 75% or 9 mills out of a total of 12 mills as medium risk due to receiving from external FFB. Meanwhile, we classify these 3 mills as low risk as they have 100% traceability of only receiving from core plantations.
To ensure NDPE implementation for each Supplier, a Monitoring, Reporting and Verification (MRV) process is conducted. This process is the final process that determines whether the Supplier can be declared NDPE as compliant or not. MRV is conducted by the Supplier Audit Team, by sampling farmers in proportion to the number of farmers per Supplier. Sampling is in accordance with the ISO 19011 sample calculation standard for Management System Audits.
In 2023, MRV is targeted for 1 IPC supplier, 13 Cooperative suppliers, and 8 Agent suppliers. All supplier MRV targets in 2023 were achieved. By 2023, MRV has been conducted on 3 IPCs, 15 Cooperatives and 10 Agents. Of the total supply volume, the MRV implementation of NDPE implementation for DSNG’s external suppliers as a percentage of FFB supply volume is given in Table Table 4 and Figure 8
In general, NDPE’s target to achieve ‘Registered’, ‘Controlled’ and ‘Compliant’ status for DSNG’s external suppliers for all Supplier Types and all landscapes by the end of 2023 was achieved.
In terms of percentage of supply volume, Table 4 shows that IPC MRV reached 91.9%, Cooperatives 93.0% and Agents 23.3%. However, for Agent-type suppliers in Sekadau-Sintang, the target ‘Compliant’ status obtained from MRV results was not achieved. This is due to the uneven distribution of Agent supply. There is one dominant agent, and MRV at this agent cannot be declared as NDPE compliant.
For the record, the Company does not purchase FFB from external palm oil mills and does not yet have a Mill that specifically only receives and processes FFB from external farmers (agents, cooperatives, and IPCs).
Further, to reduce our risks, we continue our efforts to secure the full sustainable certification of all our mills and estates. Please see here for the status of our certification efforts.
Wherever possible we also encourage our supply chain to move towards certification. A total of 3,506 smallholder cooperative members have achieved RSPO Certification.