Due Diligence is not a one-time action or a linear process but a continuous plan-do-act-check cycle. We apply a consistent approach to Due Diligence for all our sourcing and supply chain choices and decisions. This starts with assessing, identifying and prioritizing potential impacts on people and the environment using a risk-based approach.
For Palm Oils Responsible Sourcing our teams have developed programs and approaches to address actual or potential risks either to prevent adverse impacts occurring, mitigating their likelihood or using our leverage to influence and enable effective remedy. We ensure progress is tracked and monitored so that we can assess effectiveness and address any adverse impacts. Across the process we engage openly with our suppliers, external business partners, customers, and stakeholders to ensure transparency and develop meaningful action plans.
P&G is a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2011 and requires all our direct suppliers to also be members and to be committed to RSPO’s Principles & Criteria (P&Cs) which cover both environmental and social impacts.
This provides annual independent third-party verification that stringent requirements are followed, and that proper governance is established and, where not, that action are taken, up-to and including exclusion from RSPO, should there be no prompt remediation. While RSPO membership and certification is an important element of our palm oils supply chain due diligence program, it is not the only element. We know that it is important to go further through supply chain mapping and traceability; environmental satellite enabled monitoring; engagement with suppliers and through active engagement with civil society and cross industry bodies. You can learn more about this work on palm below and throughout the P&G ESG for Investors website.
Proactive Environmental Satellite Monitoring of our Palm Oil Supply Landbanks
Since 2020 P&G has conducted 24-7-365 satellite monitoring of our palm oil supply landbank:
- Monitoring is conducted with Earthqualizer (EQ), an independent not for profit organization. It provides “real time compliance data” for tracking potential deforestation, development on peat and burning to clear land.
- We currently monitor over 18.9+ million hectares of P&G’s suppliers landbanks in Indonesia, Malaysia and Papua New Guinea. The methodology uses big data analysis integrating satellite tracking technology; concession mapping* and expert knowledge of high-conservation-value (HCV)/high-carbon-stock (HCS) landscapes.
- In FY 23-24 we confirmed that 99.95% of supply chain landscapes monitored were “free of deforestation or conversion issues”. Where issues may have occurred, the robust information generated with Earthqualizer has allowed us to engage more effectively in discussions with our suppliers and to provide data to help guide and accelerate remediation and monitor on-going progress.
*A Palm Concession is an area of land where a government or local authority has granted a license or permit, to a private company to establish oil palm plantations on public lands. RSPO publish Members Palm Concession Maps
P&G FORESTRY GRIEVANCE PROCESS & TRACKER – PALM OILS
We apply a combination of proactive monitoring and reactive Grievance Investigation as part of Due Diligence. We publish our Grievance Tracker publicly 3x per year on this site. Grievance investigation is a key part of our reactive due diligence. It helps ensure compliance with our policies and NDPE expectations. We share the outcome of our investigation publicly via our P&G Palm Grievance Tracker.
How can I report a Grievance.
Concerns can be reported to P&G employees or via our independently managed P&G Worldwide Business Conduct Helpline
What Grievance Investigation Process does P&G follow?
We apply a 3 step Grievance Investigation Process and detail can be found at P&G Forestry Grievance Process
Where can I access information on Palm Oils Grievances received by P&G?
Where issues are raised to us, we engage directly with complainants to keep them informed on status of our investigation. We recognize that other stakeholders may have an interest in understanding more about our grievances and outcomes of investigation. We therefore publish a public grievance tracker (updated in April, August, December) which can be found: P&G Palm Grievance Tracker