Palm oil is an important and versatile raw material for both food and non-food industries, which contributes to the economic development of the producing countries and to the diets of millions of people around the world. Although palm oil is entirely GM free and has the highest yield per hectare of any oil or seed crop, it has been recognised that there are environmental pressures on its expansion to eco-sensitive areas, particularly as oil palm can only be cultivated in tropical areas of Asia, Africa and South America. It is vital that the production and use of palm oil must be done in a sustainable manner based on economic, social and environmental viability.

We firmly believe that the future long term success of the Group is dependent upon the integration of our commitment to sustainability into our core business activities.

1. High Conservation Value Forests (HCVF) or Primary/Virgin Rainforest

• HCVF is defined as forests of outstanding and critical importance due to their high environmental, socio-economic, biodiversity or landscape value (As defined by the FSC – Forest Stewardship Council)
  
  
• For all of the Group’s oil palm plantations, we have not knowingly cut down any HCVF to develop any palm plantations or developed plantations by logging over primary rainforest.
  
  
• For all proposed developments or expansion as per the Roundtable on Sustainable Palm Oil (RSPO) criteria which was proposed in November 2005, we will assess the area to determine if HCVF exists. If the study does indeed reveal HCVF, Wilmar will not develop it.

2. Degraded Rainforests

• Degraded rainforests is defined as land which has been logged repeatedly throughout the 20th century, destroying the structure of the rainforest. There is little if any timber of commercial value left and logging trails have damaged the soil structures. There are instances where the Group will develop on this type of land after conducting a thorough environmental impact assessment. Our land development will strictly adhere to local regulations, RSPO sustainability criteria and a zero burn policy.

3. Cleared Rainforests (Bare Land)

• Cleared rainforests are degraded rainforests that have been cleared by slash and burn throughout Indonesia, and in particular Kalimantan, by farmers and others who simply wish to lay claim to the land. Farmers slash and burn and then continue to burn the land on an annual basis. In Indonesia, there are no clear land titles. The Indonesian government and local authority decide which areas can be developed for agriculture.
  
  
• Although land tenure and rights in Indonesia remain ambiguous, we will work to ensure that all mutual agreements with communities and individuals in Indonesia are clearly defined, documented and legally established, thus demonstrating clear evidence of long term land use rights for our land.

4. Peat Lands

• There has been growing concern about the use of peat soils for oil palm plantation development. Besides the emissions of carbon dioxide which would occur if deep peat lands were drained for development, fertiliser inputs would also be much higher than on mineral soils and the construction and maintenance of roads on deep peat land would be very high with materials like stone having to be imported and crop stability also a problem. Oil palm is not a natural species to grow on peat and there are alternative crops such as sago that should be encouraged instead.
  
  
• Wilmar does not establish plantations on deep peat land (peat soils >3m) and applies the same RSPO principle governing planting on HCVF after November 2005 for all deep peat land as well.

5. Zero-Burn Policy

Wilmar adheres strictly to a policy of zero burning. During the land clearing stage, remnant debris comprising bushes or small trees which are felled, are left to biodegrade, releasing nutrients slowly, thus adding valuable organic matter to the soils, reducing the use of fertilisers during the planting period and lowering carbon dioxide emissions.

• Wilmar is committed to ensuring the conservation of rare, threatened and endangered species.
• The Group upholds a policy for the protection of endangered species, and the maintenance of existing flora and fauna.
• Buffer zones are maintained between forests, major rivers and the plantations.
• Soft approach to keep wildlife out of plantation, and within dedicated wildlife protection areas.
• Well-managed compromise between development and conservation.
• Training and education of staff.
• Prohibition on hunting.
• Education of plantation staff to stop game meat consumption.
• Collaboration with state wild life department in Sabah, East Malaysia.
• Collaboration with the London Zoological Society to support its research on conservation of endangered species in and around one of our estates in Sumatra.
• Co-operation with wild life conservation bodies.