Independent verification clears SSMS of 3 allegations

 

Pangkalan Bun, 20 September 2018 – A leading international and independent sustainability consulting firm, Daemeter, has completed its verification of allegations against PT Sawit Sumbermas Sarana Tbk (SSMS), raised in February 2017 by Chain Reaction Research (CRR). The allegations from CRR and the verification result from Daemeter are as follows*:

 

1. CRR alleged that SSMS owners retained control over PT Sawit Mandiri Lestari (SML) after selling it to PT Metro Jaya Lestari (MJL) in 31 December 2015. Daemeter found this allegation to be unsubstantiated because the company had been officially sold and there has been no transactions between the companies since.

 

2. CRR alleged that SSMS’s subsidiary PT Mirza Pratama Putra (MPP) cleared land before New Planting Procedure (NPP) has been approved by Roundtable on Sustainable Palm Oil (RSPO). Daemeter found this allegation to be unsubstantiated because SSMS cannot be held responsible for a clearing that took place before it took control of the company.

 

3. CRR alleged that SSMS’s subsidiary PT Menteng Kencana Mas (MKM) cleared peatland. Daemeter found this allegation to be unsubstantiated because the revised concession boundary shows that MKM is not responsible for the cleared area. In case of overlapping boundaries, the area concerned was controlled by the other party, not MKM.

 

4. CRR alleged that SSMS’s subsidiary PT Kalimantan Sawit Abadi (KSA) cleared land before NPP was approved. Daemeter confirmed the subsidiary converted 105ha in November 2013 prior to a correct HCV assessment.

SSMS acknowledges that this was a departure from best sustainability practices and in September 2014 proactively triggered the RSPO compensation process to atone for this. RSPO has since approved the compensation concept note, recognizing that SSMS has made up for its departure from best practice.  

 

Moving forward, SSMS remains committed to taking proactive measures to further improve its sustainability standards. In doing so, SSMS looks forward to continued dialogue and collaboration with its partners, NGOs, and the government.

 

SSMS understands that openness and collaboration are crucial to realize palm oil’s full potential. SSMS thus encourages all parties with sustainability concerns regarding SSMS’s business to contact our team at sustainability@SSMS.co.id.

 

* For more details, you can download the executive summary of Daemeter’s final verification report here. The full report is available upon request.