Palm and Palm Kernel Oil Derivatives

Innospec recognize that palm products are a valuable natural resource sourced from high-yielding and land-efficient plantations. Increasing demand for palm oil and palm kernel oil has led to the rapid expansion of palm oil plantations, which in turn has had an adverse effect on the environment and the local communities living in these areas.

Relatively small volumes of palm and palm kernel oil derivatives are used in some of our product ranges. However, as an active participant in the palm oil supply chain and an ordinary member of RSPO (Round Table on Sustainable Palm Oil) since 2013, Innospec understand the importance of our role in encouraging the transition to more sustainable practices.

Check out our progress at www.rspo.org

We continue to work with our suppliers to ensure that all the palm-based materials we procure will be from sustainable sources that comply with our Principles for Sustainable Palm and Palm Oil Derivatives Sourcing, as outlined in our Sustainable Sourcing of Palm and Palm Kernel Oil Derivatives Policy:

Sustainable Sourcing of Palm Oil and Palm Kernel Oil Derivative Policy

Details of our action plan, timeline and progress against meeting these policy commitments can be found in our annual progress report.

Implementation Action Plan and Progress Report

RSPO Mass Balance Supply Chain Certificate

To enable us to achieve our commitment, all applicable Innospec manufacturing sites are RSPO mass balance (MB) supply chain certified and as such we are able to offer our customers RSPO MB versions of our products on request.

Our RSPO mass balance supply chain certificate is available below:

Innospec Inc. - BMT-RSPO-000459

Increased Transparency

In 2018, we began work to increase the transparency and understanding of our palm-based raw material supply chain. We engaged the support of an independent, third-party company to research and map the origins of palm-based materials in our supply chain. Using a methodology that is endorsed by a number of external stakeholders, rating agencies and coalitions, we analyzed our 2017 palm and palm kernel derivatives raw material volumes. Following the analysis, we achieved a baseline of 99% transparency at refinery level and 95% at mill level connected to our palm derivatives supply chain. We also completed a risk assessment* of the deforestation, social and regulatory risks at geographical level (provinces, districts and mills).

In 2019, we committed to completing an analysis of our palm supply chain each year. Increasing the transparency of our supply chain helps us to highlight any differences and potential opportunities for improvement between our commitments and those of our suppliers. The program will help us to develop a roadmap towards deforestation-free and responsible sourcing of palm-based raw materials.

2021 Transparency Results:

The pandemic and increased market demand led to challenges with sourcing in 2021. This led to the introduction of a number of new suppliers, yet to engage in the transparency process. As a result, our transparency levels to the refineries and plantations were lower than in previous years. We were however, able to improve transparency to the mill level following increased and consistent engagement with our longer standing suppliers.

Following analysis of our 2021 palm volumes, we achieved transparency levels of 97% to the refineries and 33% to the plantations. We were pleased to see our transparency level to the mills increase to 96%, moving closer to our revised target of achieving 100% transparency to the mill level by 2025. We also updated our risk assessment at geographical level based on 2021volumes. Overall, the transparency results achieved for 2021 volumes indicated a high level of transparency and are higher than the ASD member averages of 94% at refinery level and 92% at mill level.

We are committed to undertaking the analysis of our supply chain annually and in 2022 we will be working with our suppliers to achieve our target of full transparency at mill level.

Disclosure

Access our public supplier list of palm oil and palm oil derivatives. Please click here:

Innospec Inc Palm Oil Mill List

Access our public list of mills potentially connected to our palm supply chain. Please click here:

Innospec Inc Palm Refineries and Crushers List

Action for Sustainable Derivatives

In 2020, Innospec joined the collaborative initiative; Action for Sustainable Derivatives (ASD) which aims to develop a harmonized approach to supply chain transparency, risk monitoring and evaluation.

The initiative is co-facilitated by Business for Social Responsibility (BSR) and Transitions, two organizations with expertise in the field of supply chain sustainability.

ASD brings together a number of likeminded companies to collectively standardize the tools and methodologies used to accelerate the compliance of their supply chain with deforestation-free and responsible sourcing principles. The initiative aims to create global, transparent mapping of the palm derivatives supply chain, and to harmonize approaches on transparency, risk monitoring and evaluation.

Action for Sustainable Derivatives

Palm Supply Grievance Procedure

Innospec’s Palm Grievance Procedure provides a clear process for the identification, investigation and resolution of external grievances concerning the implementation of Innospec’s Sustainable Sourcing of Palm and Palm Kernel Oil Derivatives policy. We aim to provide a clear, appropriate and prompt response to any applicable grievance raised.

Innospec Palm Grievance Procedure

Innospec Inc. Palm Oil Grievance Tracker

Company Received Full Grievance Report Stakeholders Subject Status
Tabung Haji Plantations ("THP") April 2020 Report can be found here Chain Reaction Research Alleged deforestation by Deru Semangat Sdn Bhd, a company allegedly linked to TH Plantations Berhad (THP). Case Closed:
Innospec's response can be found here.
On-going monitoring of last remaining action.
Felda Global Ventures ("FGV") Sept 2020 Report can be found here Associated Press (AP News) Alleged human right and labour abuses in Malaysian grower Felda Global Ventures (FGV) plantations. Case Closed:
Innospec's response can be found here.
On-going monitoring of remaining actions.
Sime Darby Plantation Berhad ("SDP") Dec
2020
Report can be found here Liberty Shared Alleged forced labor and child labor by Sime Darby Plantation Berhad owned and affiliated companies. Case Closed:
Innospec's response can be found here.
On-going monitoring of last remaining action.

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