Astra Agro Lestari Moving Forward to Develop Plan to Implement Sustainability Policy

PT Astra Agro Lestari (AAL) is advancing with the implementation of its Sustainability Policy through

the recent appointment of the Consortium of Resource Experts (CORE) to provide technical support to ensure that the Policy is implemented effectively.

AAL has selected CORE as the main service providerto review the company’s current progress against the Policy and toadvise the company, in consultation with key stakeholders, on the development of an Action Plan. This Plan will dictate AAL’s activities over the following several years to ensure effective implementation of the Policy throughout its supply chains.

CORE’s technical support is envisaged to cover the first year following the release of AAL’s Sustainability Policy and the team is currently conducting preliminary review of AAL’s progress and designing a process to develop the Action Plan. This process will include intensive periods of field-based assessments and consultation with key stakeholders that will inform the development of a comprehensive and feasible Action Plan.

As mandated by the Policy, the Action Plan will be the roadmap to build a traceable and transparent supply chain, develop programs for smallholders and third-party suppliers, and create an open, transparent, and consultative process to resolve all complaints, grievances, and conflicts. The Action Plan will prioritise programs to assist smallholders to gain positive impacts from adopting sustainability practices. By following this roadmap, AAL will be demonstrating real  progress on the ground, which will be reported to all stakeholders through regular updates on its website.

AAL is Indonesia’s biggest publicly-traded palm oil company by market value with operations in Sumatra, Kalimantan, and Sulawesi. The company is widely recognised for its leading Corporate Social Responsibility programmethrough awards such as the “Indonesia Green Award” and “20 Green CEO” as well as for its Income Generating Activity (IGA) program, which to date has assisted over 7,000 smallholders and their families.AAL reaffirmed its commitment to sustainability by publishing its Sustainability Policy in September 2015, which extends its previous corporate social responsibility commitments to promoting palm oil production that is “based on no deforestation, conservation of peatlands and respect for human rights”.

CORE is a consortium with extensive sustainability experience across a range of commodities around the world. The Consortium consists of three independent, international organisations, namely PT Daemeter Consulting, Proforest, and the Rainforest Alliance,that together provide the expertise for the practical implementation of sustainable palm oil commitments. CORE provides technical assistance to actors across the palm oil supply chain, including growers, smallholders, traders, and major consumer goods manufacturers, as well as other key stakeholders, such as palm oil standards bodies, NGOs, research organisations, and governments.