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Supplier NDPE T4T Progress Update No.1
14/02/2020Responsible Sourcing


UPDATE No. 1 - SNAPSHOT OF EARTHWORM FOUNDATION’S TOOLS FOR TRANSFORMATION YEAR 1 RESULTS FOR IOI EDIBLE OILS SDN. BHD. (IOIEO), SANDAKAN.

INTRODUCTION

IOI Corporation Berhad (IOI) is committed to building a transparent and traceable supply chain and helping our suppliers transform to deliver sustainable palm oil. In 2018/2019, the Responsible Sourcing Team from our Commodity Marketing Department introduced the Tools for Transformation (T4T) platform to millers supplying to IOI Edible Oil Sdn. Bhd. (IOIEO). This is one part of our supply chain strategy to deliver on the No Deforestation, No Peat and No Exploitation (NDPE) requirement of our Sustainable Palm Oil policy by assessing suppliers’ compliance levels and thereafter allowing specific improvements on targeted issues. Invitations to commence using T4T for an online assessment were sent to all suppliers during the fourth quarter of 2018. Included in the T4T platform are action plan preparation and self-help materials on sustainability best practices. At the completion of the assessment period, suppliers’ submissions were analysed and reported as 14 Key Performing Indicators (KPIs) that are pertinent to the delivery of NDPE.

This first update will detail four (4) of the more prominent KPIs amongst stakeholders’ concerns: i) Policy, ii) Forced Labour, iii) Grievance Mechanism and iv) Deforestation Occurrence. This will be followed by KPIs on peat, children in plantations, traceability and freedom of association in our next update.

The focus for Year 1 of T4T was to achieve high adoption rates from millers and encourage all of them to utilize the resource materials to gain a deeper understanding of sustainability best practices. This will support them in the preparation of an action plan for improvements and provide similar support to their own supply base in utilizing the self-assessment and resource materials.

BACKGROUND

Tools for Transformation (T4T) is an online system that allows users to benchmark and improve practices against sustainability indicators covering No Deforestation, No Peat and No Exploitation (NDPE) requirements. A digital tool created by Earthworm Foundation (EF), T4T is tailored to industry users for easy, quick and relevant application in palm oil refineries, mills and plantations. The system’s online self-assessment leads to gap analysis and field-tested resources to close gaps, as well as customised action plans to implement changes aligned with NDPE market requirements. It also helps refineries prioritise engagements with suppliers to improve practices and report progress.

Learn more at https://www.earthworm.org/our-work/ventures/tools-for-transformation.

Please click HERE to read the full report.

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