1. Introduction

  • 1.1. A sustainable business is the core strategy for Southland Global Pte. Ltd group.
  • 1.2. Being a natural rubber processor, our Group aims to contribute to global economic prosperity focusing on efficient use of natural and human resources.
  • 1.3. Sustainability in our Group is defined as our commitment to provide quality products and services while maintaining long-term social and environmental balance along our supply chain.
  • 1.4. We have our Group Code of Conduct which is guided by:
    • 1.4.1. the ten principles in United Nations Global Compact (UNGC),
    • 1.4.2. ISO 26000 guidelines, and
    • 1.4.3. UN Sustainable Development Goals (SDGs).
  • 1.5. We seek to continuously improve on our sustainability performances by incorporating the voices of diversified stakeholders into our business planning and decision-making processes.

2. Commitments

  • 2.1 The sustainability commitments identified in this Policy are applicable for all entities under Southland Global group.
  • 2.2 It is our aim to identify opportunities, prevent and mitigate risks associated with our economic, environmental, and social activities to create a lasting positive impact on the Group’s brand reputation and business performance.
  • 2.3 Environment
    • 2.3.1 We acknowledge that we are accountable for the potential direct and indirect impacts on the environment caused by our activities and operations.
    • 2.3.2 We shall manage all these impacts in an ethical and practical manner with our Group Environmental Policy and our Environment Management System (ISO 14001).
  • 2.4 Social
    • 2.4.1 We deliver social benefits by working towards any acceptable protocol of traceability of rubber.
    • 2.4.2 We support transparent reporting along the entire natural rubber supply chain by supporting activities, such as training and education for awareness and capacity building.
    • 2.4.3 We shall support the implementation of these principles along the supply chain, including improvement of production practices by focusing on vertical (improved yield and quality) rather than horizontal (increased planted area) expansion.
    • 2.4.4 We respect and protect internationally recognized human rights (including upholding the UN Guiding Principles on Business and Human Rights (UNGP) by avoiding, causing or contributing to adverse human rights impacts and preventing or mitigating any harm linked to our operations.
    • 2.4.5 We shall establish and maintain a company grievance mechanism to receive complaints and to remedy adverse impacts which may be caused by production or sourcing.
    • 2.4.6 We recognize and protect the customary, traditional and communal land tenure rights of indigenous peoples and local communities (IP/LC) including:
      • 2.4.6.1 Carrying out operations in accordance with the UN Declaration on the Rights of Indigenous Peoples (UNDRIP);
      • 2.4.6.2 Ensuring ongoing land tenure and access rights;
      • 2.4.6.3 Upholding traditional rights of access for hunting and gathering of animals and plants for the purpose of subsistence and indigenous cultural and religious traditions, customs and ceremonies.
    • 2.4.7 We shall ensure that, prior to any activity that might affect IP/LC rights to their lands, territories, and resources, their free, prior, and informed consent (FPIC) is secured, when planning, establishing, restoring, or transforming our plantations and/or industrial sites, as well as associated infrastructure.
    • 2.4.8 Where our operations impinge on IP/LC rights, we shall consider compensating or accommodating IP/LC through appropriate, mutually agreed measures reflecting and described in the negotiated outcomes of the FPIC process.
    • 2.4.9 We shall adopt measures to provide remedy through mutually agreed procedures including establishing appropriate channels of dialogues in cases where the company previously has caused or contributed to the appropriation of or harm to the lands, territories, or resources of IP/LC without securing FPIC.
    • 2.4.10 We actively engage in the development of the communities which we operate in by creating local employment opportunities, philanthropy, and volunteerism to enhance community capacity and contribute to the enrichment of society.
    • 2.4.11 We support programs for decent living conditions of local communities, the right to food and food security of individuals, households and local communities and the economic, social and cultural rights of local people, including and through access to education and employment.
  • 2.5 Economic
    • 2.5.1 We aspire to have a positive economic impact on our stakeholders and deliver sustainable profitable growth with high quality and reliable products.
    • 2.5.2 We shall work against any form of corruption, bribery, and extortion; shall adhere to ethical business conduct, implement free and fair competition as well as responsible marketing.
    • 2.5.3 We shall deliver economic growth:
      • 2.5.3.1 in compliance with national laws and regulations, and avoid any illegal practices such as bribery and/or corruption;
      • 2.5.3.2 through implementation of free and fair competition, and pay competitive prices;
      • 2.5.3.3 by emphasizing on developing local economy by creating local job opportunities;
      • 2.5.3.4 by providing minimum wages to all employed according to local regulations.
      • We shall uphold applicable labour rights and labour laws in the jurisdictions where we are operating, by applying the UN Guiding Principles on Business and Human Rights, and effecting the intent of the International Labor Organization’s eight core conventions. These include:
      • – Freedom of association and collective bargaining (ILO Convention No. 87 and No. 98)
      • – No forced labour (ILO Convention No. 29 and its 2014 Protocol)
      • – No child labour (ILO Convention No. 138 and No. 182)
      • – Decent living wages
      • – No discrimination (ILO Convention No. 111 and No. 100)
      • – Legal working hours
      • – Safe and healthy workplaces
      • – No abusive practices (ILO Convention No. 105)
      • – Gender equity
    • 2.5.4 We shall apply safeguards to all workers, including contract, temporary and migrant workers.

3. Sustainable Procurement Commitment

  • 3.1 Our Sustainable Procurement extends our sustainability commitment and principles in achieving a sustainable supply chain.
  • 3.2 Our supply chain goals are to create mutual prosperity and establish long-term relationships with our stakeholders.
  • 3.3 This is an ongoing and collaborative process with our suppliers as important partners in our journey.
  • 3.4 In a cycle of continual improvement, we have aligned our Sustainable Procurement with the 12 principles of the Global Platform for Sustainable Natural Rubber (GPSNR).
  • 3.5 We shall focus on sourcing goods and services by taking into consideration environmental and social factors alongside economic factors in our procurement decisions.
  • 3.6 We share the commitment of our customers in building a sustainable supply chain by establishing and communicating expectations to our suppliers.
  • 3.7 We invest in supplier engagement through training and educational efforts to raise awareness and build capacity to promote continuous improvement.
  • 3.8 We strive to map our supply chain and support transparent reporting to protect our brand and meet stakeholders’ requirements.

4. Supplier Performance

  • 4.1 We shall facilitate our suppliers to understand the standards in this policy.
  • 4.2 Consequently, we shall conduct programs for our suppliers to support our approach by working together with us to improve practices in sustainable procurement.
  • 4.3 To accelerate efforts and ensure effectiveness on this journey, we shall hold regular dialogues and collaborate with and support our suppliers in working together to adopt and perform to our principles in their daily business activities.
  • 4.4 We shall support programs for supply chain mapping and assessing suppliers for social and environmental risk to prioritize risk mitigation actions.
  • 4.5 We shall support programs for traceability of natural rubber, at a minimum to an appropriate jurisdictional level, to know or control the conformance of purchased materials with established standards.
  • 4.6 We shall communicate to all suppliers of natural rubber that material produced and processed in accordance to and conformance with established standards will be preferred.
  • 4.7 We shall provide time-bound performance indicators for meeting established standards, and ensuring that supplier codes and contracts, engagement activities, and other mechanisms reflect these supplier expectations.
  • 4.8 We shall regularly engage the supply chain (both direct and indirect suppliers) to support their conformance with company commitments through effective incentives, support mechanisms, and purchase monitoring systems.
  • 4.9 We shall develop time-bound implementation plans to move suppliers towards conformance and/or remediation of past or ongoing harms.

Date: 2 November 2020

___________________
Mr. Leong Tim Fook
Director
Southland Global Pte. Ltd.