There had been a high number of fatalities (15) at the company in the previous year. We wished to communicate our concern on this issue and understand what the company was doing to improve health and safety standards and prevent a reoccurrence, improve oversight and where relevant encourage action.
The company has been ordered to cease new plantings on a concession by the RSPO due to concerns relating lack of Free, Prior, Informed, Consent being obtained, lack of required permits and failure to complete the appropriate land assessments. We sought to understand what the company was doing to resolve this complaint and whether this would have any impact on shareholder value going forward.
Two of the company’s facilities, a refinery and a kernel crushing plant as well as a bulking station are alleged to have bought palm oil from CPO mills that are implicated in illegal deforestation. Due to the commercial sensitivity of unaccredited palm oil we sought to communicate concern over such alleged practice as well as encourage the company to increase its efforts to achieve traceability in the supply chain.