1. What is Crosscheck?
Crosscheck is an online, open access tool which improves traceability across our supply chain.
It covers our 13 refineries and the 691 mills that supply them, providing new information about our supply to mill level, the risk areas in the landscapes surrounding our mills, and our network of supplier relationships.
It will make our engagement with suppliers more effective and identify priorities for improvement.
It will also provide reassurance to people about how we’re managing our efforts to create a deforestation-free supply chain.
It also provides a way for people to alert us to problems and enable us to work with others to identify risk and problems, and to take action.
  1.  How is Crosscheck a step forward in traceability for palm oil?
We believe that traceability is the frontier of the effort to halt global deforestation because by tracing supply back to the source it is possible to identify where the problems are and to take action.
Crosscheck takes a big step forward in making traceability possible throughout our supply chain in a number of specific ways:
  • It links our supply to specific mills.
  • It links mills to the owners of those mills – in order to improve traceability and accountability. Some of those mills are Sime Darby mills and many are not. For those who are not, we identify the Group owners of each mill. That provides new information about the network of relationships that runs through our supply chain and beyond.
  • It enables users to overlay the location of any mill against maps of the surrounding landscape that highlight risk areas – ie: forest, peat or other protected areas, and also the habitats of large animals; orangutans, elephants and tigers.
  • It links to the satellite data so anyone can check that information against imagery that provides more information about what is happening on the ground.
  • It is open access to anyone – with an invitation to alert us to any problems that people may identify.
  1. What happens when a problem is identified?
There is an email address provided on Crosscheck for anyone to contact us if they identify a problem in our supply chain.
In addition, Crosscheck provides a link to our Supplier Grievance Register which is published on our website. It contains a full list of all reported concerns and the status of the action being taken.
  1. What action does Sime Darby take when suppliers violate NDPE standards?
In Sime Darby we have a No Deforestation, No Peat, No Exploitation policy (NDPE) in our own operations. And we are clear that we expect the same standards from our suppliers.
If a supplier violates that policy and is unwilling to commit to a programme of remediation on the affected land and to improving their practices to meet NDPE standards in their ongoing operation, we will suspend them.
However, in Sime Darby, we believe that we also need to provide a path to re-engagement. Just suspending suppliers does not improve their practice, and often has the unintended consequence of driving poor practice elsewhere into the industry’s supply chain. Therefore, if a non-compliant supplier commits to stopping clearance immediately and putting in place a plan to meet our conditions, we will re-engage with them and support their progress.
Our ultimate goal is to expand the sphere of oil palm companies operating to NDPE standards and so drive deforestation out of palm oil production.
  1. What does Sime Darby mean by “no deforestation”?
To identify areas that need protection from deforestation we use the High Carbon Stock Approach (HCS), which estimates the amount of carbon and biodiversity stored within an area of land.
The HCS approach identifies which forests are high, medium and low densities. It also defines areas of young regenerating forest (YRF) which, if allowed to regenerate and mature could develop in time into high density forest. It is by these definitions that we ‘draw the line’, refusing to develop on such land. Instead we commit to develop only on scrubland and grassland that have no conservation values.
  1. How can others use this tool?
Crosscheck is designed for anyone who is concerned about preserving forests, and the role of the palm oil industry in deforestation. That includes:
  • Consumers who want to know that the products they buy are not contributing to deforestation.
  • Buyers who want to ensure their brands are not linked to deforestation.
  • Investors who want assurance that their financing is not associated with deforestation.
  • Conversation groups who want evidence that the industry is taking meaningful action.
We invite people to use Crosscheck – and to alert us if they identify a problem so we can take action.
Driving out deforestation is a huge challenge and we know we do not have all the answers in. So we want to learn from and collaborate with others to make the best use of the information that Crosscheck can provide.
  1. To meet the goal of improving practice across the supply chain, doesn’t Crosscheck need to go further?
We published Crosscheck as step forward in traceability and we agree that there is much further to go.
Our first aim was to get this new information into the hands of anyone concerned about creating a deforestation-free supply chain for palm oil – and to help us prioritise our own efforts on the areas of greatest risk.
It is designed as a platform to incorporate new information and data, and we are already working with our NGO partners to determine what new data will be most useful and effective.
We intend to keep going, refining Crosscheck as we learn – and will work with others to do that.
  1. Do you expect other palm oil producers to follow your lead?
Crosscheck represents a step forward for our company and in the industry. There is a lot of work going on across the sector today to improve transparency and we would like Crosscheck to be a useful that supports that effort.
There is increasing urgency around halting deforestation. We share that urgency and we want to part of the solution. So, we hope to work in collaboration with others to raise the bar for the industry, and to make deforestation-free palm a reality.
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