Responsible Sourcing

As proof of our commitment to the responsible sourcing of materials, we recognize that building traceable and transparent supply chains is an important requirement for a sustainable production process. Materials received from the nucleus estate’s production and third party suppliers must be ascertained to have originated from the production process in accordance with the principles in Astra Agro’s Sustainability Policy.

Due Diligence Mechanism

Astra Agro has developed a system for the purpose of assessing, screening and evaluating prospective Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) suppliers that will enter the supply chain. The due diligence procedure is applied before the transaction decision is made. This procedure includes several stages, namely:

Supplier Monitoring and Handling of Non-Compliant Suppliers

Compliance monitoring is conducted to ensure that suppliers perform operational activities in line with Astra Agro’s Sustainability Policy. Monitoring is carried out through periodic assessments to identify potential risks (such as fires, deforestation and social issues) exhibited by our suppliers by extracting information from various trusted and credible sources. Based on the results of our monitoring assessment, we will communicate our findings to our suppliers for confirmation and clarification. If a supplier is discovered to have breached Astra Agro’s Sustainability Policy, the supplier in question will then be deemed as non-compliant. For non-compliant suppliers, we will build intensive relationships and assist them in formulating a corrective action plan which we will also assist in implementing. Our team will then move forward in monitoring its progress until we are sure that they are finally in line with our Policy.