In the following section, we will be providing an overview on both our upstream (Plantations) and downstream (Refining) business activities in relation to our focus on improving traceability in our supply chain for the benefit of our global customers and stakeholders in general.

As an important part of United Plantations’ traceability focus, we strive to ensure that our supply chain (direct and indirect suppliers) live up to our Group’s commitment towards the No Deforestation, No Peat and No Exploitation (NDPE) Policy.

The interest for certified sustainable and segregated palm oil is increasing as many global brand manufacturers have committed to only use RSPO certified and segregated palm oil solutions. Traceability is therefore important in order to ensure that the certified sustainable palm oil and palm kernel oil used in the production of finished goods actually come from sustainable sources.

(a) Upstream (Plantation Activities)
All CPO sourced in Malaysia is RSPO certified under the Supply Chain model of Identity Preserved (IP). In Indonesia, we have undergone RSPO certification for part of our plantations (with HGU certificates) and have successfully achieved RSPO certification for these areas in 2018. Currently the mill is RSPO certified under the Supply Chain model of Mass Balance (MB).

Full certification and production of RSPO certified and segregated palm oil traceable to the mill and plantations is expected to be reached in 2022 for our Indonesian operations in tandem with the issuance of land use certificates by the local Government authority for our properties (Inti) and Plasma land.

In this connection, we are increasing awareness by retraining and carrying out audits within all operational areas of our group. The results of these measures will be monitored and incorporated in our future reports or Company Website as a part of our continous improvement commitment.

The location of UP owned mills is tabulated below:

The location of third-party FFB suppliers for PTSSS is tabulated below:

*As at December 2018

(b) Downstream (Refining Activities)

One of Unitata’s key commitments to its customers is to ensure that our finished products can be traced back to its origins, namely palm oil mills and further to the plantation level where possible. Unitata is currently in a favourable position to meet this growing demand due to the direct link with UP’s supply of RSPO certified sustainable and segregated palm oil traceable to the plantations.

In Malaysia, 100% of the Crude Palm Oil (CPO) used at our Unitata refinery can be traced back to the mills and plantations. 100% of the CPO produced in Indonesia is traceable to plantations and is sold to neighbouring refineries as we don’t have any downstream operations in the country.

All Crude Palm Kernel Oil (CPKO) derived from UP’s own production of Palm Kernel (PK) can be traced back to the plantations, however, as the use of CPKO at our refinery exceeds the volume of CPKO derived from our own PK production, we source significant volumes of CPKO from external Kernel Crushing Plant (KCP) of which the main portion only can be traced back to the Palm Oil Mills (POMs).

Going forward, we will be working with third party suppliers to increase the percentage of CPKO that can be traced back to the plantations in line with increased customer demand for traceability.

Our assurance for the level of traceability is based on our ability to identify the parent company, the mill name, mill coordinates, mill certification status from suppliers and plantations from where the crop (FFB) is produced.

The summary on the number of direct supplier mills supplying CPO and PK is tabulated below:

*All of the above own and third party supplying mills 100% source from their own plantations. Updated as at December 2018.

The summary on the number of indirect supplier mills supplying PK to Kernel Crushing Plants (KCPs) from which we derive CPKO used at Unitata is tabulated below:

Click here to view the list with name and GPS coordinates of our direct and indirect supplier mills.

The percentage of traceability for Unitata is summarized in the chart below:

The traceability for overall combined volume sourced at Unitata for CPO, CPKO and refined products (from external refineries) is tabulated below:

*Updated as of 31st December 2018

The percentage of volume sourced at Unitata is tabulated below:

*Updated as of 31st December 2018

Please click here to view the Map on Estates, Palm Oil Mills and Biogas Plant under United Plantations Berhad.