News Release

2016.11.25Progress report on responsible palm oil sourcing

Fuji Oil Group reports the progress on responsible palm oil sourcing in accordance with our Responsible Palm Oil Sourcing Policy. We continue to work with our partners and stakeholders in order to establish sustainable supply chain for palm oil, while striving to set targets, conduct regular monitoring, and actively disclose information.



Summary

In March 2016 Fuji Oil Holdings released its Responsible Palm Oil Sourcing Policy, committing itself to no deforestation, no peatland and no exploitation policy for all palm oil within our supply chain. The Forest Trust (TFT) is our main partner supporting the implementation of our policy including mapping our palm supply chain. The first target in implementing the policy is to achieve full traceability for all palm oil purchased and processed across Fuji Oil Group. This report marks our first public update on our traceability scores for supply’s for January 2016 - June 2016. Through this process, we have achieved a global palm oil traceability score of 94%. This refers to a global average of 93% for all Palm Oil (PO) and 98% Palm Kernel Oil (PKO) products. Although the scores differ from one region to the other, we have reached high levels of traceability in most of the markets. Together with our partner we are working on a plan to engage traders and suppliers to understand the supply chain. Fuji Oil Group plans to update its public traceability report on a half-yearly basis. Our next progress report will be released in March 2017 along with our activities on palm oil sustainability.


Fuji Oil Global Traceability to Mill

Traceability to the palm oil mill is Fuji Oil’s first target toward improving the responsibility of oil produced and traded within our supply chain. We are working with TFT to map our supply chain, identify risks and prioritize engagement with suppliers to improve practices on the ground. And we aim to achieve full traceability to the oil mill for all palm oil purchased and processed across the Group by 2020.


Fig. 1 Fuji Oil Group Global Traceability to Mill
Fig. 1 Fuji Oil Group Global Traceability to Mill

Note on results

  • ・Traceability levels may vary over time due to data availability, changes in sourcing or other issues.
  • ・All traceability numbers are based on self-disclosed information provided by our suppliers. In some cases, the GPS coordinates of mills were shared with our partner TFT and not directly with Fuji.
  • ・This scoring includes products that are considered provisionally traceable. That is, where mill lists are available that do not include latitude and longitude coordinates.
  • ・Some mill data is bound to NDA’s between TFT and our suppliers, while plans for Fuji Oil Group to hold this data are being developed.

Overview

Since releasing our Responsible Palm Oil Sourcing Policy, Fuji Oil Group has achieved a global average of 94% for all palm oil and palm kernel products within our first reporting period. To achieve full traceability in Group, Fuji Oil Group is engaging within its suppliers to communicate our policy and obtain the necessary transparency. We will be monitoring our progress here closely and seeking to positively collaborate with all our existing suppliers to achieve our global target in across all business units.

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