Musim Mas
Language
Search Menu

Importance of Supplier Engagement

Supplier engagement plays a pivotal role in our operations, as nearly 90% of the palm oil we source is from third-party suppliers. It serves as the linchpin for nurturing robust relationships, establishing a dependable supply chain, and fostering collaboration that, in turn, bolsters our business efficiency and competitiveness.

How Do We Engage Suppliers?

At Musim Mas, we believe in actively engaging our suppliers by providing them with the support they need to drive change and enhance their performance, thus moving them towards sustainable and responsible practices. Our supplier workshops stand at the forefront of our engagement efforts, serving as a central platform to connect, educate, and collaborate with our suppliers on key sustainability topics and practices.

Our workshops typically involve interactive sessions, group discussions, and expert presentations. We create an open and inclusive environment where suppliers can actively participate and learn from one another. We understand the importance of continuous learning and improvement. Therefore, we organize workshops regularly to ensure ongoing engagement.

Our supplier workshops have several key objectives:

1. Enhancing Sustainability Practices:
Our workshops empower suppliers with the knowledge and tools to meet and exceed our sustainability standards. We focus on areas such as responsible sourcing, environmental protection, and ethical practices.

2. Building Lasting Relationships:
We recognize that sustainable partnerships are built on trust and collaboration. Our workshops provide a platform for open dialogue and relationship-building between Musim Mas and our suppliers.

3. Aligning with Our Sustainability Policy:
Through these workshops, we engage with our suppliers on our Sustainability Policy, emphasizing the No Deforestation, No Peat, and No Exploitation (NDPE) commitments.

We require our suppliers to attend workshops and submit their NDPE commitments. We also utilize the Musim Mas Self-Assessment Tool (SAT) on sustainability commitments. The SAT responses help us identify areas for improvement and develop custom roadmaps with time-bound plans to help suppliers meet our policy commitments. These roadmaps consist of benchmarks and milestones, enabling us to monitor their progress effectively.

How We Work With Our Peers to Engage Suppliers

In March and November 2022, we jointly hosted two supplier workshops and Focus Group Discussions (FGD) with Sinar Mas Agribusiness and Food (GAR) in Langsa and Kuala Simpang, Aceh, on complying with sustainability policies. The workshops covered NDPE compliance, Indonesia Sustainable Palm Oil (ISPO) certification, and traceability to plantation. In total, 108 participants comprised supplier mill representatives, local traders and farmers, government officials, and members of civil society organizations (CSOs).

What Do We Engage Suppliers On?

Some of the topics discussed in our supplier workshops are:  

Environment

Environment

Protecting HCV areas and HCS forests, no burning, protecting peatlands, including applying best management practices

Governance

Governance

Adhering to required national and local laws and regulations and conducting business free from corruption or bribery

Workplace

Workplace Human Rights

Including zero tolerance for child and forced labour, implementing proper policies and practices to prevent harassment and discrimination, and having in place measures for safe and healthy work environment for employees

Community Rights

Community Rights and Social Issues

Socializing the concept of Free, Prior, and Informed Consent (FPIC) where operations may affect the rights of indigenous people and local communities and how to be fair and inclusive of smallholders and outgrowers in the supply chain

Traceability

Traceability

Achieving traceability to plantation within the supply chain, using the risk-based approach

Self Assesment

Self Assessment Toolkit (SAT)

Teaching suppliers how to fill in, and submit our SAT form

Certification

Certification

Recognizing that certification may not always be feasible for suppliers in the short term, we encourage our suppliers to achieve certification and assist them wherever possible