Tabung Haji Plantations Berhad

June 22, 2020

Financial Information 2019 (All info USD million unless otherwise given)

Annual revenue (Last year and last reported period (Q), incl YoY growth): USD 119.2 million (-4.9% YoY) for 2019
Net revenue: USD 119.2 million (-4.9% YoY) for 2019
Gross profit: 4
EBITDA: 0
Net profit: -18.3
Market cap ultimo preceding year: 4
Enterprise value ultimo preceding year: 8

Recent Sustainability Overview

During the past few years, TH Plantations unsustainable operations have been scrutinized by NGOs. In a report released by Greenpeace in September 2016 about the human and environmental cost of IOI’s supply chain, TH Plantations operations in North Kalimantan was brought up as it was an active supplier to IOI. Deep peatland clearance in TH Plantations’ concession PT Persada Kencana Prima was detected in 2015, making it violated IOI’s NDPE commitment. TH Plantations released a statement denying the allegations and defended its position because it had the necessary permits to utilize the concessions, in addition to its defence that the locations had been excluded from Indonesian moratorium on palm oil permits. Despite its defence, CRR noticed from Wilmar’s grievance list that TH Plantations agree to release a stop work order in June 2017. However, CRR’s satellite monitoring detected a further deforestation occurred in 2018 which exhibited a clear violation towards its stop work order.

Sustainability Performance

Deforestation within owned concessions (2016-2020): 9772 ha
Peat clearance within owned concessions (2016-2020): 11 ha
Peat forest clearance within owned concessions (2016-2020): 1979 ha
Deforestation within current supply chain: not applicable
Peat clearance within current supply chain: not applicable
Peat forest clearance within current supply chain: not applicable
Social issues: not available

Certifications

As per December 2019, the group is still seeking Malaysian Sustainable Palm Oil Supply Chain Certification Standard (MSPO SCCS) with one of its palm oil mill Kilang Sawit Kota Bahagia has finished preliminary MSPO SCCS audit. TH Plantations is also pursuing Malaysian Sustainable Palm Oil (MSPO) certifications for its plantations and mills operations, and right now all of its plantations and palm oil mills in Peninsular Malaysia, Sabah, and Sarawak have been MSPO-certified.

No Deforestation, No Peat, No Exploitation Policy

TH Plantations has a formal sustainability policy on the website, but the description does not fit well with the value of No Deforestation, No Peat, and No Exploitation (NDPE) policy as commonly understood in the palm oil industries. The sustainability policy encapsulates “zero burning policy” but does not acknowledge the utilization of High Conservation Value (HCV) forest and/or High Carbon Stock (HCS) forest assessment.It is said to aim on stringent management of peatland, but further explanation on zero peatland development commitment is not available. TH Plantations through its sustainability policy endorses human rights, i.e. a guarantee of fairness and equality, freedom to form and join labor unions, condemning forced labor, and prohibited child labor.

Supply Chain Links

TH Plantations appear in the supply chains of several companies with NDPE policy, which are AAK, ADM, Bunge Loders Croklaan, Cargill, Fuji Oil, IOI, Itochu Corporation, KLK, Louis Dreyfus Company, Musim Mas, Olam, HSA Group/Pacific Inter-Link, Wilmar, Avon, Colgate-Palmolive, Danone, Friesland Campina, General Mills, Kellogg’s, L’Oréal, Mars, Nestlé,P&G, PZ Cussons, Reckitt Benckiser, Hershey, Upfield, Unilever, Johnson & Johnson, and Vandemoortele.

Oil Palm Plantations and Palm Oil Mills Managed by TH Plantations

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