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What is the Risk Management Framework?

In our 2021 NDP Risk Management Framework (RMF), we detail our approaches to identify, assess, mitigate, and monitor risks. 

Musim Mas defines risk as any activity related to CPO and PK production or procurement that might violate our NDPE policy. The RMF is instrumental in evaluating No Deforestation and No Peat (NDP) risks, establishing engagement priorities, and mitigating them. 

The RMF covers Musim Mas-owned operations as well as third-party suppliers, including mills, concessions, smallholders, and outgrowers. 

How Does the Risk Management Framework Work?

We use Traceability to Plantation (TTP) data, and overlay supply shed maps with locations of conservation and peat areas, and depending on the extent of overlaps, we categorize the mills in our supply chain as low, medium, or high-risk.

We screen new and existing suppliers annually to determine their risk levels. If a high-risk mill is identified, we would collaboratively develop time-bound action plans with the supplier and support them through regular engagement until the risks are reduced. 

Sustainability Policy

In September 2020, Musim Mas updated the Policy, which lays out a renewed and deepened commitment to improving the livelihoods of smallholders, workers, and communities; while maintaining a strict stance on NDPE. Our Policy applies to Musim Mas’ global operations and the third parties we work with, including suppliers and contractors.

Key Pillar of Our Policy

The following are the key pillars of our Policy, which rest on the core components of sustainability – people, planet and profit.

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Improve the Lives of Smallholders, Workers, and Communities

Palm oil production above all is a people business: Be it the workforce that tends to our plantations or operates our mills and refineries; the hundreds of thousands of smallholders who supply their crop to our mills or those of our suppliers; the local communities and villagers living near operations; the customary rights holders to lands which currently comprise concessions; and those affected by our supply chain. We are committed to respecting human rights, land rights, and labor rights, and will work hard to establish a lasting, positive legacy everywhere we work.

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Maintain Responsible and Enduring Relationships with Suppliers, Customers, and Stakeholders

Palm oil production above all is a people business: Be it the workforce that tends to our plantations or operates our mills and refineries; the hundreds of thousands of smallholders who supply their crop to our mills or those of our suppliers; the local communities and villagers living near operations; the customary rights holders to lands which currently comprise concessions; and those affected by our supply chain. We are committed to respecting human rights, land rights, and labor rights, and will work hard to establish a lasting, positive legacy everywhere we work.

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Deliver Positive Environmental Impacts

Palm oil production above all is a people business: Be it the workforce that tends to our plantations or operates our mills and refineries; the hundreds of thousands of smallholders who supply their crop to our mills or those of our suppliers; the local communities and villagers living near operations; the customary rights holders to lands which currently comprise concessions; and those affected by our supply chain. We are committed to respecting human rights, land rights, and labor rights, and will work hard to establish a lasting, positive legacy everywhere we work.

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Drive Innovation in Sustainable Practices

Palm oil production above all is a people business: Be it the workforce that tends to our plantations or operates our mills and refineries; the hundreds of thousands of smallholders who supply their crop to our mills or those of our suppliers; the local communities and villagers living near operations; the customary rights holders to lands which currently comprise concessions; and those affected by our supply chain. We are committed to respecting human rights, land rights, and labor rights, and will work hard to establish a lasting, positive legacy everywhere we work.

Suppliers Risk Levels

In 2022, we assessed all our 602 CPO and PK suppliers to determine their risk levels. We identified no high-risk mills in the reporting year, but 2.7% were classified as medium risk, with 97.3% classified as low risk.  

Risk Management Framework Document

For more information on our approaches to assess supplier risks, how we mitigate, and report on risks, please refer to our RMF here.

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