Sawit Sumbermas Collaborates with DTFAS on Business Sustainability Update

PT Sawit Sumbermas Sarana Tbk (SSMS) with PT Citra Borneo Utama (CBU) and PT Citra Borneo Indah (CBI), in collaboration with Deloitte Touche Financial Advisory Services Pte Ltd (DTFAS) to review the sustainability and traceability performance of its palm oil suppliers (CPO) to CBU, namely: PT Sepalar Yasa Kartika (PT SYK) and PT Sawit Mandiri Lestari (PT SML).

SSMS CEO Nasarudin bin Nasir said, SSMS, CBU and CBI have agreed a Cooperation with Deloitte Touche Financial Advisory Services Pte Ltd (DTFAS) related to the development of a Sustainability Road Map. “We have secured agreements with supplier management to improve operational and sustainability standards as was done with SSMS.”

The company enforces a sustainability policy in order to harmonize sustainability practices, not only for the Company group of companies, but also for its palm oil supply chain entities such as PT SML and PT SYK. This is done to ensure that the supplier complies with the principles of SSMS Sustainability and its affiliated downstream company PT CBU.

On the same occasion, CBU CEO Ballakhrisnan Naidu said, CBU has a strict policy towards all suppliers, in order to record the supply chain process to delivery to consumers (traceability process). This is to mitigate risks and ensure product safety guarantees for all of the Company's consumers. This is in accordance with the investment criteria expected by CBU business partners.

Nasarudin continued, the purpose of DTFAS assisting the Company in reviewing the Performance and Sustainability Issues of PT SYK and PT SML is to align with the 'Sustainability Principles' which was prepared through the SSMS Sustainability roadmap which was prepared in August 2017, which is part of the SSMS goal so that all suppliers comply Policy and meet the criteria for Corporate Sustainability.

DTFAS has reviewed the SSMS Sustainability Roadmap, and provided its opinion, namely:

1. Updating the 'NDPE Map' relevant to major suppliers

2. Track progress and resolutions related to Stakeholder issues

3. Provide external communication to stakeholders about the progress of work with suppliers

4. Integrate supplier performance in the SSMS Supply Chain Traceability Management System.

The sustainability roadmap provides each step of the implementation process and a schedule for changing key suppliers' Sustainability activities.

“SSMS is committed to updating regularly, and always providing information to stakeholders about the development of the Company's Sustainability Roadmap. In addition, SSMS has committed to engage with global Tier-1 buyers and traders of palm oil and its derivatives,” continued Nasarudin.