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Simultaneous interpretation for English and Bahasa Indonesia
Housekeeping
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Simultaneous Interpretation
• The event will be held in Indonesian and English and interpretation is available for Indonesian (Japanese icon) and English. Please follow the steps below to access the interpretation languages
• Acara ini diselenggarakan dalam Bahasa Indonesia dan Inggris, dan interpretasi tersedia untuk Bahasa Indonesia (ikon Japanese) dan Inggris. Silakan ikuti langkah berikut untuk mengakses interpretasi.
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16.05 The business case for traceability Wisnu WibisonoCDP Corporate Engagement Officer
16.15 Guidance: Best practices for Traceability Rico Pratama Putra & Nadine SyariefAFi Southeast Asia Secretariat
16.30 Tools: Universal Mill ListAndika PutraditamaWRI Indonesia Forest and CommoditiesSenior Manager
16.40 In practice: Cargill’s traceability system Pitt Onn WongCargill Traceability Lead
16.50 Q&A and closing All speakers
Webinar agenda and speakers
Moderator: Rini Setiawati, Project Manager, CDP Forests
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CDP runs the global disclosure system that enables companies, cities, states and regions to measure and manage their environmental impacts.
CDP Forest Questionnaire – Manage forest related risk commodities through reporting(Palm oil, timber products, soy, and Cattle)
Accountability Framework is a best practice guideline to set, implement, and monitor an ethical supply chain, which consists of:
1. Core Principles
2. Operational Guidance
3. Definitions
The business case for traceability
◥ Global baseline analysis report of company performance against the Core Principles of the Accountability Framework.
◥ It uses data from 411 companies that made full disclosures specific to forest-risk commodities through CDP 2019 Forest Questionnaire.
◥ This assessment will serve as a basis to track progress in the coming years.
Accountability FrameworkBaseline for 2020
Source: Disclosure for a deforestation free supply chain: An Accountability Framework baseline for 2020 and beyond
Percentage of companies disclosing traceability of 50% or more of their commodity volumes to a given supply chain stage.
Source: Disclosure for a deforestation free supply chain: An Accountability Framework baseline for 2020 and beyond
Key finding on traceability
75% companies that responded to CDP 2019 reported
some level of traceability
16%
8%
30%
10%
Palm oil Timber
Downstream companies with traceability targets
2018 2020
More downstream companies have traceability specific targets
Traceability is used as a metric for sustainability linked loan
Guidance: Best practices for Traceability
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Achieving traceability often requires companies to identify the various actors in their supply chain and understand the relationships among them—a process known as supply chain mapping.
See: Definitions , Operational Guidance on Supply Chain Management Section 2.
FAQHow is it different from supply chain mapping?
Traceability is the ability to follow a product or its components through stages of the supply chain.
Traceability allows companies to link product volumes to specific attributes of suppliers and/or production sites.
What is traceability?
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What are the expectations on traceability?
Learn more >
Accountability Framework Core Principle 5 specifies that origins of materials in supply chains are known or controlled to a sufficient extent to ascertain that the production and processing units of origin comply with commitments, or to determine the extent and nature of issues that must be resolved.
F6.2 - Do you have traceability system(s) in place to track and monitor the origin of your disclosed commodity(ies)?
CDP Forests question
Traceability based on CDP 2020 Data
20% 17% 20%
80% 83% 80%
Overall Upstream Downstream
Palm OilNo Yes
28% 25% 26%
72% 75% 74%
Overall Upstream Downstream
TimberNo Yes
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Learn more >1. The role of smallholder
groups to help address traceability needs
2. Supplemental action for smallholder traceability and control system
See: Operational Guidance on Smallholder Inclusion in Ethical Supply Chains2.
Primary processors and first intermediary traders know the origin of raw materials to the level of the farm, estate, plantation, ranch, or forest management unit.
For smallholders, origin is known at least to the level of the farmer group, with more detailed mapping conducted where necessary to assess fulfilment of commitments.
If traceability to these levels is not initially available, then it is progressively improved to these levels over a pre-defined timeline, prioritizing the riskiest settings.
How much traceability is enough?
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How much traceability is enough?Downstream intermediaries, manufacturers, and retailers should trace supplies upstream until they are able to verify compliance or identify the nature of noncompliance.
Depending on the context, this may require traceability to a sourcing area (e.g., a country, province, municipality, etc.), direct or indirect supplier (e.g., a refiner, trader, farmer group, etc.), or to an individual farm or production unit.
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How can product origins be sufficiently known or controlled?To meet the above-stated requirement, buyers at any stage of the supply chain must institute a sufficient level of traceability through one or more of the following methods, depending on what is most practical and effective :
1. Full traceability to the production or processing units of origin
2. A supplier’s control mechanisms (a verified supplier)
3. Credible assurance systems (certification)
4. Traceability to low-risk landscapes or jurisdictions
18%
13%
18%
2%4%
1%
25%
16%
27%
12%
24%
10%
Overall Upstream Downstream
Palm OilCountry Refinery Mill Plantation
18%
10%
20%
11%
16%
10%
13%
10%
14%
6%
8%
6%
Overall Upstream Downstream
TimberCountry Forest management unit Mill Tree plantation
F6.2a - Provide details on the level of traceability your organization has for its disclosed commodity(ies) - 50% or more of commodity volumes
CDP Forests question
Traceability based on CDP 2020 Data
Percentage of companies reporting the use of certification for some portion of their commodity volumes
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Source: Disclosure for a deforestation free supply chain: An Accountability Framework baseline for 2020 and beyond
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PROCESSORS (42)
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6 522
44
61
102 10386
0
20
40
60
80
100
120
Credible assurancesystems (e.g., crediblecertification systems)
employed
Materials traced backto origin of production
Materials traced backto intermediatesupplier(s) with
controls
Method of traceabilitydoes not match
approaches outlined inFramework
No pursuit oftraceability disclosed
ALL COMPANIES (108)
COMPANIES EXPLICITLY DISCLOSED USING APPROACH DOES NOT USE APPROACH
TRACEABILITY APPROACHES
NU
MBE
RO
F C
OM
PAN
IES
TRADERS (26)
NOTE : SOME COMPANIES USE MORE THAN ONE APPROACH
Source: Updated and adapted from Commitments in-Country: Companies, Palm, &
Commitments that Count in Indonesia, 2020
Company Use of Accountability Framework-Aligned Traceability Approaches
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The company should document the following aspects of its traceability system:
1. the approach or methodology;
2. the present status of traceability; and
3. an analysis of challenges to reaching adequate traceability for the full supply chain and measures being taken or planned to overcome these challenges.
What is needed to support verification and reporting of a traceability system?
Tools: Universal Mill List
TOOLS: Universal mill list
TOOLS: Universal mill list
TOOLS: Universal mill list
TOOLS: Universal mill list
TOOLS: Universal mill list
TOOLS: Universal mill list
TOOLS: Universal mill list
TOOLS: Universal mill list
TOOLS: Universal mill list
TOOLS: Universal mill list
TOOLS: Universal mill list
TOOLS: Universal mill list
SHARING SESSIONCARGILL’S TRACEABILITY JOURNEY
20 JANUARY 2021
Supplier Engagement with Havy Oils in 2015
Expectations for today:TALKING POINTS
• Our Definition
• Data collection: Traceability to mill and plantation
• Challenges and Progress
• Expectations
• Case study
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Our definition
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Traceability is defined as known information about our sourcing mills and FFB suppliers:
• Estates (names, parent company name, gps coordinates/addresses, % volumes,
certification status, maps)
• Dealers (names, area (district. Sub-district, mukim) % volumes)
• Smallholders (gps coordinates, number of smallholders, % volumes, certification
status).
• RSPO Segregated oil sourced also fits into this category of fully plantation traceable.
*Cargill is cooperating with industry partners to develop verification and reporting of
traceability information.
Data Collection
What is our methodology?Cargill collect traceability information via the following methods:
1. CIF Rotterdam Traceability (CRT) Template
2. Risk Calibrated Approach (RCA) template
These data are collected and updated annually, or when there are significant changes in
the supply chain of a particular supplier.
All new suppliers in our supply chain are required to provide TTP data before sourcing to
Cargill.
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Data CollectionExpectations for our suppliers
• Traceability data is important for Cargill and our suppliers because ithelps both parties to understand the complexity and the extent ofyour sourcing/catchment area.
• By understand and collating these data periodically, it helps us toidentify high risk areas and helps us to validate and verify if there arerisks associated with these areas.
• There is no fixed method in obtain TTP information.• We encourage everyone to develop their own action plans to achieve
traceability and collaborate to obtain these information.
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Data collectionChallenges
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Progress
• Data collection progress from
smallholders: Huge number of
smallholders involved in a supply
chain/supplier; Small and independent
growers are not providing relevant
traceability details.
• Country laws and regulations – no sharing
of maps, traceability information.
• Companies with different
expectations/commitments on traceability
• Mandatory requirements for Malaysia for Malaysian
Sustainable Palm Oil (MSPO) certification contributed to
improvements on data collection.
• Push and pull factors from customers and peers (i.e.
Bunge, Fuji, etc.).
• Better awareness towards NDPE compliance.
• Better usage and understanding of technology, ie.
Google maps, Descartes Lab, Satelligence, Starling, etc.
• Support from partners such as Earthworm Foundation,
CORE to improve process of data collection and
verification of data.
In Practice: Cargill’s verification of deforestation alerts
Case study:Verification of deforestation alerts
Case study: VerificationBackground
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What’s next
• Received deforestation allegations via
satellite imagery (Descartes Lab, Starling,
Satelligence)
• Conducted supplier engagement to update
TTP data
• Verification done and confirmed
deforestation (size of football field)
• Reiterate the importance of conservation, reminding
suppliers of our stand on any form of deforestation
• Supplier mitigation plan - immediate reforestation and
identification and demarcation of all HCV areas
• Supplier placed under monitoring to ensure
mitigation/remediation plan is conducted accordingly.
• Case logged as a grievance.
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GPS Location of deforestation alerts Observation on site
Case study: VerificationLearnings
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Positive outcome:
• Sustainability team might be aware of NDPE,
but not all in the company
• Awareness needs to be built for all team
• Supplier engagement and site verification is still
key and needs to be balanced between virtual
engagement and actual visit whenever possible.
• Suppliers learnt from the lesson
• More proactive and would reach out to customers for
feedback if they are planning for any new
developments.
Traceability is a tool for that guides us toward understanding how our supply chain is. Ultimately, there is a need for us to utilize these data appropriately to stop and eradicate any form of deforestation as much as possible. Verification and Validation of these data are crucial.
Polling Session
To what extent this webinar have been useful in improving your knowledge on traceability?
Sejauh mana webinar ini membantu meningkatkan pengetahuan Anda mengenai kemamputelusuran?
1. Very useful - Sangat membantu
2. Useful - Membantu
3. Less useful- Sedikit membantu
4. Not useful - Tidak membantu
Q & A
