IFFCO Group Policy on Sustainable Palm Oil

Investing in Sustainable Future

IFFCO is a United Arab Emirates based, innovative and integrated food and non-food manufacturing group of companies serving the Industrial, Food Service, Personal Care application and Retail markets, with high quality ingredients and branded offers such as Noor,Hayat. With an established International presence in over 20 Countries, the 30 manufacturing facilities of the group offer a wide range of food products, derivatives, intermediates, and services. IFFCO’s brands and products have been built around creating trust and delivering value to end consumers by using only high quality ingredients. IFFCO recognizes that palm oil is one of the key ingredients that it trades and processes within its business.

Palm oil is the largest traded vegetable oil in the world; it is highly efficient in terms of yield per hectare and a highly versatile ingredient for food, feed, fuel and oleochemical products. With all of these strengths, producing palm oil sustainably is of utmost importance to the world, and subsequently to IFFCO's long-term business.Building on its vision ‘Investing in the future’, IFFCO believes a major contribution to a sustainable future is secured when it invests, together with other stakeholders along the palm oil supply chain; in realizing the full potential of palm oil in contributing to social development, environmental protection and economic prosperity. Hence, Planet, People, Partnership and Profit(4Ps) are the four pillars that IFFCO's palm oil processing units will be guided by.

IFFCO also aspires to embark on contributing to the United Nations (UN) Sustainable Development Goals (SDGs), specifically related to responsible production and consumption, ensuring food safety and nutrition, ending poverty, addressing climate change, reducing inequality and engaging stakeholders towards achieving these goals.

This policy reflects IFFCO's commitment to support the move towards full sustainability in the palm oil industry, and marks an important milestone in its journey to invest in realizing the full potential of palm oil to sustainable development and ultimately, a sustainable future.

Scope of the Policy

This sustainability policy frames the commitment surrounding the sourcing and processing of palm oil that applies to IFFCO Group companies (IFFCO Singapore Pte Ltd, IFFCO (S.E.A) Sdn Bhd, Emirates Refining Company Ltd, IFFCO Egypt S.A.E, Delmon Products Limited Yanbhu Br, IFFCO Pakistan (Pvt) Ltd and P T Synergy Oil Nusantara). IFFCO will work closely with suppliers, and engage all relevant stakeholders whenever necessary, to help them apply and comply with this policy within a reasonable timeline and benefit from its implementation.

Commitments

This Policy complements previous Sustainability Plan on Palm Oil Sourcing and Processing issued in 2017. It strengthens IFFCO’s commitment to work more proactively with stakeholders to ultimately achieve a fully sustainable palm oil sourcing and processing by 2021 that contributes to no deforestation and low carbon emission by protecting High Conservation Value (HCV) areas, High Carbon Stock (HCS) forest and peatland regardless of depth, and where plantation development only takes place with the Free, Prior, and Informed Consent (FPIC) of any affected local community, and provides safe, secure, productive work place for employees and surrounding communities.IFFCO Companies in Singapore, Malaysia, Middle East, Pakistan, and Indonesia are member of Roundtable on Sustainable Palm Oil (RSPO) and IFFCO is committed to pursuing increased volume of RSPO-certified raw materials purchased and traded.

Traceability acts as fundamental first-stage assessment to understand the risks and opportunity for improvement with respects to the palm oil sourced and processed in IFFCO's facility. IFFCO will work closely with the suppliers to improve transparency and traceability of its supply base and ultimately achieve full traceability to mills by mid-2019 and traceability to plantation level by 2021.

IFFCO recognizes the importance of partnership with stakeholders to deliver its goals within the targeted timeline. This includes initiating program to improve the smallholder participation in the sustainable palm oil supply chain, enhancing their productivity and thus reducing the risk of expansion, which often threatens HCV areas and HCS forest. IFFCO will promote and communicate on best practices by its suppliers and collectively work towards the further transformation of the palm oil industry.