In our 2021 NDP Risk Management Framework (RMF), we detail our approaches to identify, assess, mitigate, and monitor risks.
Musim Mas defines risk as any activity related to CPO and PK production or procurement that might violate our NDPE policy. The RMF is instrumental in evaluating No Deforestation and No Peat (NDP) risks, establishing engagement priorities, and mitigating them.
The RMF covers Musim Mas-owned operations as well as third-party suppliers, including mills, concessions, smallholders, and outgrowers.
We use Traceability to Plantation (TTP) data, and overlay supply shed maps with locations of conservation and peat areas, and depending on the extent of overlaps, we categorize the mills in our supply chain as low, medium, or high-risk.
We screen new and existing suppliers annually to determine their risk levels. If a high-risk mill is identified, we would collaboratively develop time-bound action plans with the supplier and support them through regular engagement until the risks are reduced.
In 2023, we assessed all of our 601 CPO PK suppliers to determine their risk levels. We identified 1 high risk mill in the reporting year, 6% were classified as medium risk mills, with 93.8% classified as low risk mills.
Our Risk Management Framework and the assessment of supplier risk levels for year 2023 have been independently verified by Control Union (Malaysia) Sdn. Bhd. You can find the verification statement here.
For more information on our approaches to assess supplier risks, how we mitigate, and report on risks, please refer to our RMF here.
