Traceability To Mills
We are 100% traceable to mill and the list of supplying mills are published as follows: Click Here
Traceability To Plantations
SUPPLIER ASSESSMENT & MONITORING
Pacoil sources from third party mills and traders, and they are required to comply with Pacoil’s Sustainable Palm Oil Sourcing Policy. It is crucial to maintain continuous engagement and monitoring to ensure our suppliers are complying with our requirements. As to progress on this critical sustainability goal, Pacoil collaborated with Earthworm Foundation (EF) to enhance our mill engagement approaches.
To ensure Pacoil’s supply chain if free from deforestation and peat clearing, we observe our supply chain closely with the aid of satellite monitoring. The satellite monitoring covers the Peninsular Malaysia and captures any deforestation that occurred from our cut-off date (August 2020) till to-date. Suppliers that are associated with potential non-compliance are flagged and initial engagement process commences. If the alerts are found to be substantiated and enters our supply chain, we will treat it as a grievance and control purchase will be imposed against the supplier. The grievance be will investigated as per our Grievance Procedure and suppliers are required to provide credible evidence to resume business as normal.
It is equally important for Pacoil to assess all our suppliers annually through virtual Self-Assessment to measure the compliance level of their operations with Pacoil’s - No Deforestation, No Peat and No Exploitation commitments. The Self-Assessment comprise of a comprehensive questionnaire correlated with deforestation, exploitation, supply chain and policy assessments. As part of the exercise, suppliers are required to provide evidences to support their Self-Assessment.
The outcome from the Self-Assessment is captured in a system, which acts as a guidance for our suppliers to further focus on the areas which they had scored poorly. The system is an interactive platform that provides suggestions to our suppliers to improve their scores. Based on this Self –Assessment in 2021, we identified 29 supplying mills that sources FFB in a manner that is compliant to our policy.
Pacoil utilizes these results to segregate suppliers into high, medium and low risk mills. In 2021, 62% of our suppliers are flagged as low risk while another 38% as high risk. The high risk suppliers is not an indicative of non-compliance, but due to insufficient information provided at the time of assessment. This approach of segregating suppliers is to engage and provide necessary support annually, especially to high-risk mills in terms of tools, workshops and training related to Pacoil’s policy over a period of three years. This effort is to ensure they are improving progressively to meet our Sustainable Palm Oil Sourcing Policy.