No Deforestation, No Peat, No Exploitation Policy

In connection with the planting, milling, refining and processing activities of palm oil business, the Board of Directors and the Management of Kwantas Corporation Berhad (“Kwantas” or “the Group”) declare that the Group will apply the following Policy Statements (“the Policy”) within all Kwantas operations and to all third party suppliers, with whom the Group has either a purchase agreement or a trading relationship.

1.     No Deforestation

No Development on High Carbon Stock Forests

The Group subscribes to the High Carbon Stock (“HCS”) approach and will protect all forests identified using the HCS approach. High Carbon Stock does not apply to plantations or other land in agricultural production.

The Group will implement the HCS approach in consultation and engagement with the governments, local communities and NGOs using Free, Prior and Informed Consent (“FPIC”), agronomic practicality and with a view to long-term conservation benefits.

High Conservation Value Areas

The Group commits to identify and protect, restore and/or co-manage the forests and other areas identified as having High Conservation Value (“HCV”) by competent, accredited assessors in accordance with Principle 5.2 and 7.3 of the “RSPO Principles and Criteria for the Production of Sustainable Palm Oil 2014”.

No Burning

The Group enforces zero-burning policy, which means that there can be no use of fire in the preparation of new plantings, or re-plantings or any other developments, in accordance with the full scope of this Policy.

Reduce Greenhouse Gas Emissions on Existing Plantations

The Group will identify significant pollutants and greenhouse gas emissions, progressively record and monitor Greenhouse Gas Emissions from its plantations and mills. Kwantas will implement strategies for emissions reduction, with emphasis on palm oil mill effluent by using the Group’s current policy as baseline and appropriate tools, such as the RSPO-endorsed palm GHG. Policy implementation reports will capture emissions reduction actions.

2.     No Development on Peat  

No development on peatland regardless of the depth of the peat soil which contains more than 65% organic matter. Kwantas will not accept any development of any peatland, regardless of the depth of peat in accordance with the full scope of this Policy.

Best Management Practices will be implemented on existing plantations with peat where these have not been done in the past. Existing plantings on peat assessed by experts to be unsuitable for replanting will be rehabilitated to original vegetation and conserved.

Kwantas will work with expert stakeholders to ensure that Best Management Practices for peat are adopted as defined by the RSPO and peat experts.

3.     No Exploitation of People and Communities

Respect and Support the Universal Declaration of Human Rights

The Group commits to upholding and promoting the Universal Declaration of Human Rights for all workers, contractors, indigenous people, local communities and this apply to all communities and individuals impacted by the Group’s operations.

Respect Land Tenure Rights

The Group will respect tenure rights and recognize duties and responsibilities associated with tenure rights, such as respect for the long-term protection and sustainable use of land, forests, and fisheries. This is done in cognizance of the national obligations, constitutions, local laws and regulations of the country Kwantas is operating in.

Respect and Recognize the All Workers Rights

The Group respects worker’s rights in accordance with local and national laws, regulations and practices; including the International Labour Organization requirements for decent work and core conventions on child labour, forced or compulsory labour, freedom of association, and elimination of discrimination. Kwantas commits to ensuring and supporting the Universal Declaration of Human Rights for all workers, including contract, temporary and migrant workers.

Respect the Rights of Indigenous and Local Communities to Give or Withhold Their Free, Prior and Informed Consent (FPIC) to Operations on Lands to Which They Hold Legal, Communal or Customary Rights

The Group respects the individual rights of indigenous people and other local communities to give or withhold their FPIC to development of land to which they hold legal, communal or customary rights. The Group commits to ensuring legal compliance as well as international best practices in FPIC are implemented, in accordance with the full scope of this Policy, prior to commencing any new operations.

Resolve All Complaints and Conflicts Through an Open, Transparent and Consultative Process

The Group strives to amicably resolve conflicts and complaints with all parties in an open, transparent and constructive manner through the Group’s whistleblowing procedures, in addition to the RSPO complaints mechanism to ensure that conflicts are resolved through mutually agreed processes that respect customary and individual rights and that ensure the FPIC of relevant stakeholders to any resolution agreements.

General Implementation Statement

The Group will engage relevant stakeholders and government to provide a legal framework which promotes the principles outlined in the Policy.

The Group will communicate regularly and effectively with all stakeholders to ensure that they are well-informed of the details of this Policy.

The Group recognizes that this Policy will need to be constantly upgraded to take account of changing expectations and circumstances as well as improvements in operational procedures. Any changes must be consistent with the Group’s goals to promote positive environmental impacts and positive social outcomes.