Code of Conduct

A Code of Conduct ratified by the PalmElit Board on 8 March 2011 is now in force and applies to all our operations.

Preamble

PalmElit SAS is a research-based company with headquarters in France, established in 2009. We are one of the world’s leading oil palm seed breeders and traders, selling, directly and indirectly, from 50 to 70 million seeds annually across Asia, Africa and Latin America. PalmElit has adopted a set of Values which defines our approach to commercial activities:

-          PalmElit acts with a strong concern for the long term and for general interest.

-          PalmElit is committed to go with the development of oil palm cultivation in favour of the largest number of growers, especially in developing countries.

-          PalmElit’s seeds and plants are continuously improved for the benefit of the entire supply chain in response to its concrete concerns.

-          PalmElit develops its activities with a view to economic, social, and environmental sustainability.

-          PalmElit’s partnerships are transparent and equitable for all parties.

It is fundamental to the integrity, credibility and continued progress of PalmElit that all our activities are undertaken in a manner which supports sustainable practices in the production and sale of oil palm planting material and seed.

All our business partners must act in good faith towards this objective and commit to adhering to the principles set out in this Code. This Code applies to entities conducting activities directly or indirectly with PalmElit.

The Code of Conduct applies with immediate effect for all PalmElit’s wholly owned operations, as well as joint ventures in which PalmElit holds a 50% or larger share. In addition, the Code of Conduct sets out requirements for other commercial partnerships against a defined timeline.

1.     Basic Principles

PalmElit believes that palm oil can be produced in a manner which is environmentally, socially and economically sustainable – bringing benefits to stakeholders at all levels of the supply chain.

1.1.           Commitment to the RSPO Principles and Criteria and parallel standards

PalmElit considers the RSPO Principles and Criteria the most relevant and practical standard to promote sustainability in our sector. We therefore seek to promote the application of this standard to our partners as well as our customers.

For the most part, the PalmElit Code of Conduct relies on the adoption of RSPO Principles and Criteria by a majority of companies of the supply chain and not only by its partners. PalmElit remains attentive to the success of RSPO and will have to review its CSR strategy if this certification is not widely in force. Independently of this, as a minimum, we require partners to adhere to a set of minimum principles:  

 

a.       Protection of biodiversity and prevention of carbon emissions

No planting in areas which contain High Conservation Values or on peat deeper than three metres. In addition, climate change mitigation strategies such as development of Clean Development Mechanism compliant methane capture projects are encouraged

b.       Respect for human rights and community rights

No breaches of human rights set out in the UN Universal Declaration for Human Rights. No planting on land in which ownership is contested. In addition, PalmElit encourages the use of the Free, Prior and Informed Consent (FPIC) framework developed by the “Forest Peoples” Programme.

 

c.       Promotion of decent working conditions

All labour conditions must be in compliance with the ILO Core labour standards: freedom of association and the right to collective bargaining; the elimination of all forms of forced and compulsory labour; the abolition of child labour; and the elimination of discrimination in the workplace. In addition, PalmElit wishes to promote decent working conditions with regards to pay, working hours and safety in the workplace. For non-producers, PalmElit recognises certification schemes such as SA8000 as a valid reference.

1.2.     Prevention of bribery and corruption

PalmElit or any entity operating on its behalf is prohibited from paying or receiving bribes in any form

-          Bribes are any extra-legal payments designed to ease or impede business transactions

-          Facilitation payments are strictly prohibited

-          Gifts or entertainment provided or received from commercial parties and must not exceed EUR50

-          All gifts to public officials are prohibited. Entertainment expenses must not exceed EUR50 per person, or any limit set by local legislation – whichever is lower

-          Any form of money-laundering operations

-          Breaches of this provision should be reported to the PalmElit head office

1.3.          Promotion of sustainable and ethical practices

-          PalmElit will seek, through its research, product development and technical support to promote sustainable practices in the oil palm sector and aim at increasing benefits for small growers. 

-          PalmElit will always adhere to the highest standard of research ethics, including bioethical considerations and equitable sharing and respect of intellectual property

2.      Requirements for PalmElit’s Partners

We will seek to work with partners who share our vision of more sustainable agricultural practices. Our objective is to see all of our partners adhere to such practices by 2020. Due to the different types of partners, we are differentiating partner criteria in accordance with our sphere of responsibility:

2.1.           Palm oil producers (including seed producers)

-          All partners who are eligible to join the “Producer” category of the RSPO must join the organisation, prior to entering contractual agreements with PalmElit.

-          All   “Producer” category partners must submit a time-bound plan for RSPO certification within three years from adoption of this Code of Conduct, and certify all its wholly-owned mills within six years.

Exemptions

PalmElit recognises that the requirements set out will be onerous and/or impossible for certain producers. These will be exempt from these requirements but requested to adhere to the requirements in section 2.2 “Requirements for non-producer business partners”:

-          Producers with a. less than 3000 planted hectares, or;

-          producers with no mill of their own, or;

-          producers in countries where no RSPO National Interpretation has been approved

2.2.           Non-producer business partners (including distributors and research partners)

-          All partners should hold or seek membership of the RSPO in the relevant category within two years from entry into force of the present Code of Conduct or from contract start

-          All partners should demonstrate compliance with standards parallel to the RSPO Principles and Criteria or the minimum standards set out in paragraph 1.1 of this Code of Conduct.

2.3.           Planting material customers

-          PalmElit encourages all customers to seek RSPO certification, or to adopt parallel standards in cases where RSPO certification is not possible (para 2.1)

-          PalmElit will support customers in understanding and implementing the RSPO Principles & Criteria through direct engagement or recommendation of relevant specialists

-          From 2020 PalmElit will not sell planting materials to non-RSPO certified customers (except in the cases stated in para 2.1)

-          PalmElit will restrict sales to customers which are identified as excluded from future RSPO certification due to breaches of FPIC (Free Prior and Informed Consent) and/or the HCV (High Conservation Value) cut-off date of Nov 2005, or planting on peat more than 3 metres deep. This restriction will be based on self-declarations by customers and will take effect one year from adoption of the Code of Conduct

2.4.           New shareholders

-          New shareholders in PalmElit SAS will be required to sign and adopt this Code of Conduct

-          New shareholders will be expected to adhere to the requirements relevant to their activities set out in this Code of Conduct

3.     Positive Engagement and Termination of Contracts

PalmElit understands that commercial partners are at different stages in implementing sustainable practices. We are committed to supporting continuous improvement, and will not exclude ourselves from working with partners who demonstrate improvements. We will seek to support such improvements within the means available to us.

However, we cannot conduct commercial activities with companies who are unwilling to proceed with measures to comply with the principles set out in this Code of Conduct. For new contracts, PalmElit will reserve the right to withdraw from commercial arrangements if a partner is found to engage in corrupt, environmentally or socially damaging practices or using oil palm development for money-laundering purposes, and is not willing to rectify and address these practices in an effective manner.

4.     No-go areas

PalmElit will maintain a list of areas in which the company assesses that sustainable palm oil production is inherently not possible due to extreme environmental, social or political conditions, and reserves the right to refuse sales of planting materials into such regions. This list will reflect, but is not limited to, current trade and cooperation embargoes imposed by France or the European Union.

5.     Governance of the Code of Conduct

5.1.           Responsibilities

-          Ultimate oversight of this Code of Conduct is the responsibility of the Board of PalmElit SAS

-          Implementation, monitoring and ongoing development is the responsibility of the CEO of PalmElit.

-          Each employee of PalmElit has clearly defined targets and responsibilities linked to Code of Conduct compliance

-          Individual performance targets are designed not to conflict with Code of Conduct commitments

5.2.           Reporting and transparency

-          PalmElit will issue a report on compliance with this Code of Conduct every two years

-          PalmElit will issue an annual communication of progress to the RSPO

-          PalmElit reserves the right to request that partners who have signed this Code of Conduct submit supporting documentation to demonstrate their compliance

5.3.           Review committee and grievances

In cases where the application of the Code of Conduct is unclear, or where grievances are raised, the Board of PalmElit will appoint a review committee to assess the issue. Grievances should be submitted to the CSR contact person at PalmElit who will refer the question to a review committee appointed by the PalmElit Board. The committee will consist of PalmElit employees, CIRAD employees and relevant external specialist, as deemed appropriate.

5.4.           Linked documents

This Code of Conduct sets out the overall direction of PalmElit’s commitments and requirements. In some areas, PalmElit will need to be responsive to stakeholder concerns and provide further guidance on the application and implementation of the Code of Conduct. For example, the list of “no-go areas” described in paragraph 4 will be maintained and updated on a need-to basis and made available to relevant stakeholders.

5.5.           Entry into force and review of Code of Conduct

-          This Code of Conduct will enter into force upon formal approval and adoption by the Board of PalmElit SAS

-          This Code of Conduct will be reviewed by the PalmElit Board at least every two years

-          The Code of Conduct review will be undertaken in consultation with PalmElit’s stakeholders