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Last Updated : 8 February, 2024 | 16:37

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Overview

Sustainable Palm Oil Policy

Sustainability has always been a fundamental part of UMB’s business and guiding principle in our decision making and continual improvement process. Over the years, UMB has undertaken various efforts to improve sustainability initiatives, including certification of the nationally mandated standards such as the Malaysian Sustainable Palm Oil (MSPO) and the Indonesian Sustainable Palm Oil (ISPO), in the countries where we operate. To strengthen and assure stakeholders of our sustainability commitments we have updated our Sustainable Palm Oil Policy. UMB is committed to implementing this policy in stages.

Sustainable Palm Oil Policy (English)

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Sustainable Palm Oil Policy (Malay)

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SUSTAINABILITY UPDATE AS AT JANUARY 2021

Greetings and Happy New Year 2021!

The Management of United Malacca Berhad (UMB) wishes to inform and update the status on the following items.

A Stop Work Order (SWO) continues to be in place in our subsidiary PT WRL. A desk top study (which is a pre-requisite of the High Conservation Value/ High Carbon Stock – HCV/HCS study) will start as soon as the contracts are signed off by the parties concerned. The Aim of the study will be to allow Management to decide on its next course of action in this property. As mentioned – during the SWO – no Land Clearing (LC) works will be carried out.
A 1 year moratorium on LC will also come enforce in PT LAK, due to the commencement of a HCV/HCS study which will be carried out by PT Hijau Daun. The period of the moratorium starts from Jan 10th, 2021. The study is to ensure that the highest standards in sustainability are adhered to. Normal estate and milling operations will continue to be carried out throughout the whole concession.
UMB is also in the final stages to review its own NDPE policy. This will be published by the end of January 2021. The NDPE policy – or Sustainable Oil Palm Policy will further steps already taken by the company towards ensuring these standards are maintained. All our estates and mills in Malaysia and Indonesia are already certified by MSPO and ISPO.

At UMB – there is a serious drive towards enhancing our sustainability initiatives, which includes all our practices and not only limited to regulatory compliances.

We are committed to ensure proper agricultural and milling processes are carried out – to be either equal or better than the industry pre-set norms.

The company has since been embarking on the following initiatives:-

Reducing water usage at its mills.
Introduction of biofertilizers – using the waste from the mills.
This has the following benefits – of reducing GHG emissions – through Methane Avoidance as opposed to Methane capture – which is widely accepted in the industry. Methane avoidance – is a far better option as this results in avoiding the formation of methane – which is 20X more potent than carbon and will expedite the impact to the ozone layer.
The other benefit of biofertilizers is also to reduce the dependency on inorganics and will improve the overall soil structure and will lead to improvements to the yields if this process is carried out well.
The company has also embarked on the improvement of all its amenities provided to our workforce, be it local or guest workers.

UMB understands its role as a good corporate and global citizen and will ensure that highest standards are maintained throughout our operations.

For further sustainability enquiries – address all email correspondence to

sustainability@unitedmalacca.com.my

SULAWESI PROJECT

( Date of issue: 28 September 2020 )

United Malacca Berhad (UMB) wishes to clarify questions raised by stakeholders as well as NGOs in the past few weeks.

WRL, a private limited liability company incorporated in Indonesia, has obtained a business licence “Izin Usaha Pemanfaatan Hasil Hutan Kayu Pada Hutan Tanaman Industri” over land area measuring approximately 59,920 hectares in the Regencies of Tojo Una-Una and Morowali, Province of Central Sulawesi, Indonesia (“WRL Land”) from the Minister of Forestry, Indonesia in June 2014. In August 2018, UMB completed the acquisition of a 60% effective equity stake in WRL for a total consideration of USD 7.2 million, with the remaining 40% equity held by PT Sinar Kemilau Cemerlang. UMB started land clearing activities on WRL Land in 2019. The development of this area is also aimed at providing additional jobs and development to the area. Proper Master plans for the development of this sites have already been duly approved by the relevant authorities.

As a concerned and responsible plantation company, UMB is committed to complying with sustainable environmental practices. UMB had conducted an assessment on the soil and terrain and environmental assessment report (AMDAL) was completed and approved by the authorities in Indonesia. To provide additional assurance to all stakeholders, UMB has decided to stop all land clearing work in Sulawesi with immediate effect until environmental concerns raised by stakeholders and NGOs are addressed. Throughout this process, UMB will engage with the Joint Venture Partner, PT Sinar Kemilau Cemerlang to discuss the next course of action.

On other note, UMB will be working with independent third-party consultant registered with HCVRN to carry out a joint assessment on HCV-HCSA-SIA to respond to the concerns raised to UMB about the land development on its PT Lifere Agro Kapuas plantation in Central Kalimantan.

All the peat areas identified had been excised out by the authorities as per the moratorium maps issued.

Updated Statement as at 30th June 2020

United Malacca Berhad (UMB), being a good corporate citizen, recognises the importance on matters related to the sustainable development of all our plantations.

All our Malaysian estates and mills are certified with the Malaysian Sustainable Palm Oil (MSPO) certification and our Indonesian estates are also Indonesia Sustainable Palm Oil (ISPO) certified.

We endeavour to ensure all our stakeholders to our business, operate in the most ethical manner, ensuring that our environment policy emphasizing Planet, People and Profit are always at the forefront of our decision making.

We do not plant on areas which are deemed improper and we maintain that we do not plant on any lands categorized as peat. We work within the confines of our High Conservation Value (HCV) studies and Environmental Impact Assessments (EIA) issued by the relevant authorities. All developments thus far – conform to all the Laws of the Land.

In PT Lifere Agro Kapuas (LAK), our entire Izin Lokasi does not have any peat areas and this is clearly stated from the map issued by the Authorities. (Moratorium set forth by the Government of Indonesia)

It’s in our SOP that any land slated for development will go through our Geographic Information System (GIS) department, where all areas are overlaid against the master map to ascertain that they are within our legal boundary and shows how it lines up with HCV areas.

It is our commitment to assist in the development of the local communities where we are based through transparent engagement with them and allowing them to grow with us. We provide CSR activities in the areas of health, education and infrastructure.

Site management is aware on the policy of not planting in areas even suspected of being peat and would only act in these areas once the soils have been inspected.

We remain undaunted in ensuring protection of our environment, the safety and health of all our employees and the surrounding communities.

Certifications

MSPO – Malaysian Sustainable Palm Oil
MSPO-SCCS – MSPO Supply Chain Certification Standard
ISPO – Indonesian Sustainable Palm Oil

 

MSPO
Malaysian Sustainable Palm Oil

MSPO – SCCS
MSPO Supply Chain Certification Standard

ISPO
Indonesian Sustainable Palm Oil

Certification Milestone

Our Achievements

April
MPOM
Paitan
Marmahat
Tg. Nipis
Tengkarasan

April
Sabah – MLP
MLP Estates 1
MLP Estates 2
MLP Estates 3
MLP Estates 4
MLP Estates 5

April
Pahang
BSPOM
BSE
SEP

January
Melaka, Negeri Sembilan, Johor
Machap
Leong Hin San
Melaka Pinda
Batu Anam

January
Indonesia – PT.Lifere Agro Kapuas
Estate Belida
Estate Biawan
Estate Haruan
Estate Seluang
Estate Arwana

January
100% MSPO Certified

September
Kick-off MSPO-SCCS
Certification for
all Palm Oil Mills
in UMB Malaysia

January
Pahang
BSPOM

December
Indonesia – Arwana Palm Oil Mill

February
Sabah
MPOM

April (MSPO)
MPOM
Paitan
Marmahat
Tg. Nipis
Tengkarasan
Sabah – MLP
MLP Estates 1
MLP Estates 2
MLP Estates 3
MLP Estates 4
MLP Estates 5
Pahang
BSPOM
BSE
SEP

January (MSPO)
Melaka, Negeri Sembilan, Johor
Machap
Leong Hin San
Melaka Pinda
Batu Anam
100% MSPO Certified
January (ISPO)
Indonesia – PT.Lifere Agro Kapuas
Estate Belida
Estate Biawan
Estate Haruan
Estate Seluang
Estate Arwana
September
(MSPO – SCSS)
Kick-off MSPO-SCCS Certification for all Palm Oil Mills in UMB Malaysia

January
(MSPO – SCCS)
Pahang
BSPOM
February
(MSPO – SCCS)
Sabah
MPOM
December (ISPO)
Indonesia – Arwana Palm Oil Mill