Palm oil is an important agricultural commodity with significant value to the global economy. Oil palm is among the most productive vegetable oil crops, generating a high volume of oil per hectare while requiring comparatively less land than other oilseed crops. As global demand for food continues to increase, palm oil can play an important role in meeting the nutritional needs of a growing population. The industry also creates employment, provides income and contributes to the livelihoods of millions of people and communities in developing countries.
Houda Group, as a participant in the palm oil industry, recognizes that responsible palm oil production is essential for protecting the environment, maintaining long-term economic sustainability and improving the well-being of communities and workers connected to the industry. As an international company, Houda Group is committed to contributing positively to sustainable palm oil development and promoting responsible practices throughout its operations and supply chain. We will continuously work toward incorporating recognized sustainability standards into our business activities.
This policy applies to all operations of Houda Group. We also expect all third-party suppliers providing palm oil, palm kernel oil and related derivatives to comply with the principles and commitments established under this Policy.
Houda Group will actively work with its suppliers to promote compliance with these requirements and will strive to obtain supplies through a transparent, responsible and traceable supply chain.
Houda Group has established its responsible sourcing approach with consideration of stakeholder expectations, industry developments and practical implementation requirements. This policy reflects our ongoing commitment to responsible sourcing and continuous improvement in sustainability performance.
Houda Group is committed to developing and maintaining a responsible, transparent and traceable supply chain based on the principles of No Deforestation, No Peat and No Exploitation (NDPE).
Our responsible sourcing commitments are built around the following key areas:
Compliance
Environmental Responsibility
Social Responsibility
Engagement and Inclusivity
Transparent and Traceable Supply Chain
Houda Group is committed to complying with all applicable local, national and relevant international laws and regulations governing our operations and the sourcing of palm oil.
We expect our third-party suppliers to comply with applicable legal requirements and relevant national and international certification standards where appropriate.
Houda Group maintains high standards of integrity, ethical conduct and corporate responsibility. We have zero tolerance for corruption, bribery or other unethical business practices and expect all suppliers and business partners to uphold the same principles.
Our Supplier Code of Conduct applies across our supply chain and establishes expectations for responsible business practices.
The Code supports compliance with this policy and reinforces our No Deforestation, No Peat and No Exploitation (NDPE) commitments throughout the supply chain.
Houda Group supports the objectives and principles of the Roundtable on Sustainable Palm Oil (RSPO) and recognizes the importance of industry-wide collaboration in advancing responsible palm oil production.
We are committed to maintaining constructive engagement with suppliers, customers, business partners and other stakeholders to promote sustainable development within the palm oil industry.
Where practical and appropriate, we encourage our suppliers to pursue RSPO certification and adopt recognized industry best practices within their operations.
Houda Group also supports continuous improvement in sustainability performance and responsible palm oil practices.
Houda Group will not knowingly source palm oil originating from plantations developed on land containing significant environmental, ecological or cultural values after our established policy cut-off date.
We support the protection and conservation of High Conservation Value (HCV) areas and High Carbon Stock (HCS) forests.
HCV areas may include forests as well as non-forest landscapes that possess important environmental, cultural, social or historical significance. Such areas are considered within the scope of our responsible sourcing commitments.
HCS forests may include primary forests, high-, medium- and low-density forests and young regenerating forests.
We expect our third-party suppliers to identify and protect conservation areas through appropriate HCV and HCS assessments.
Where assessments are required, they should be undertaken by suitably qualified and recognized HCV assessors and HCS practitioners. Identified HCS areas should be conserved in accordance with recognized HCS methodologies and applicable best practices.
Houda Group does not support new plantation development on peatland, regardless of peat depth.
For existing plantations within our supply chain that are located on peat, suppliers are expected to implement appropriate management practices to minimize environmental impacts and protect peatland resources.
Where applicable, these practices should be aligned with recognized RSPO Best Management Practices for existing oil palm cultivation on peat.
Houda Group maintains a zero-burning approach across its operations.
Our suppliers and indirect suppliers are also expected to avoid the use of fire for land preparation, new plantation development, replanting or other agricultural activities.
Appropriate alternative land preparation and management methods should be applied to prevent uncontrolled fires and reduce associated environmental and health risks.
Houda Group recognizes the importance of protecting biodiversity and maintaining healthy ecosystems.
We support the implementation of appropriate Social and Environmental Impact Assessments (SEIA) for new developments or activities undertaken by third-party suppliers where such activities could have potential impacts on the environment or surrounding communities.
We respect the traditional rights and lawful activities of indigenous peoples and local communities.
Traditional hunting activities, where permitted, should be conducted responsibly and in designated areas and must not involve protected, rare, threatened or endangered species. Such activities should also not negatively affect ecological systems or the long-term sustainability of local species.
Houda Group expects suppliers to reduce and responsibly manage the use of pesticides, herbicides, fertilizers and other agricultural chemicals.
Suppliers should prioritize appropriate and effective agricultural practices that minimize potential risks to workers, communities, biodiversity, soil and water resources.
We prohibit the use of pesticides classified as WHO Class 1A and 1B, as well as substances restricted under the Stockholm and Rotterdam Conventions.
The use of paraquat in the production of palm products is also prohibited within our supply chain, except where its use is specifically authorized under applicable government regulations.
Houda Group is committed to monitoring greenhouse gas emissions and progressively improving our environmental performance.
We encourage suppliers to identify significant sources of greenhouse gas (GHG) emissions and implement practical measures to reduce emissions.
Suppliers are encouraged to adopt recognized best management practices, including applicable RSPO recommendations for reducing total emissions associated with palm oil production.
Houda Group respects the principles established under the Universal Declaration of Human Rights (UDHR) and is committed to protecting the fundamental rights of all workers.
This commitment applies to permanent, temporary, contract, migrant and other workers involved in our operations and supply chain.
We expect our suppliers to operate responsibly and take appropriate measures to ensure that their activities do not contribute to human rights violations or abuses.
Houda Group recognizes and respects the rights of indigenous peoples and local communities in accordance with internationally recognized principles, including the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
We recognize the importance of Free, Prior and Informed Consent (FPIC) for activities that may affect land or resources to which communities hold legal, communal or customary rights.
We encourage meaningful and continuous engagement with affected communities and local stakeholders to ensure that FPIC processes are properly understood, implemented and improved over time.
Houda Group recognizes and respects legitimate land tenure rights held by indigenous peoples, local communities and other stakeholders.
We support the responsible and sustainable use of land and forests while respecting legal, communal and customary rights.
Our operations and sourcing activities will be conducted in accordance with applicable laws, regulations and the principles established within this policy.
Houda Group is committed to respecting workers’ rights and ensuring fair and responsible employment practices.
All workers covered by this policy should be treated fairly and in accordance with applicable local and national legislation, as well as internationally recognized labour principles and the fundamental conventions of the International Labour Organization (ILO).
Where local legal requirements are insufficient, we aim to apply appropriate international best practices.
The following principles form an important part of our commitment:
Child Labour – We will not knowingly employ or support the use of child labour and will take reasonable measures to prevent child labour within our operations and supply chain.
Forced Labour – We will not knowingly use or support forced, bonded or compulsory labour, slavery or human trafficking. Appropriate measures will be taken to identify and prevent such practices.
No Discrimination – Workers must be treated with dignity and respect and protected from harassment, abuse and discrimination, including discrimination based on gender or other characteristics protected by applicable law.
Ethical Recruitment – Workers should not be charged recruitment fees at any stage of the hiring process. Recruitment practices should be transparent, fair and responsible, and workers should have the right to leave employment in accordance with applicable laws and contractual requirements.
Document Retention – Workers’ wages, identification documents, passports, travel documents and personal belongings must not be withheld without their consent, except where required or permitted by law.
Wages – Workers must receive wages that meet or exceed the applicable legal minimum requirements.
Employment Contract – Workers should receive clear written employment terms in a language they can understand. These terms should include information regarding their duties, wages, payment arrangements, working hours, leave, benefits and other applicable employment conditions.
Working Hours – Working hours must comply with applicable legal requirements, including regulations governing overtime. Overtime should be voluntary, and workers should receive appropriate rest periods and at least one day off per week where required by applicable standards.
Record Keeping – Accurate and reliable records of working hours, wages and other relevant employment information must be maintained.
Accommodation – Where accommodation is provided, it should be safe, adequate, hygienic and suitable for workers. Appropriate arrangements should be provided for men and women, with no unreasonable restrictions on workers’ freedom of movement.
Houda Group is committed to providing a safe, secure and healthy working environment for all employees and workers.
We will work to identify and minimize occupational hazards, promote safe working practices and continuously improve workplace health and safety standards throughout our operations and supply chain.
Houda Group will maintain active engagement with key suppliers to promote compliance with our sustainability commitments and responsible sourcing requirements.
Supplier engagement may include assessments, monitoring, verification of policy compliance, review of grievances and evaluation of progress toward meeting our responsible sourcing expectations.
Where suppliers fail to meet the requirements of our Sustainable Palm Oil Sourcing Policy, or where compliance cannot be adequately verified, Houda Group may initiate its grievance and corrective action procedures.
Where appropriate, suppliers will be expected to develop and implement time-bound corrective action plans.
Suppliers that fail to respond to grievances, do not implement agreed corrective measures or demonstrate insufficient progress may be suspended or removed from the Houda Group supply chain.
Houda Group is committed to engaging openly with our clients and business partners and sharing appropriate information regarding our sustainability approach and continuous improvement initiatives.
We encourage collaboration with customers and stakeholders to support responsible sourcing and sustainable development throughout the palm oil value chain.
Houda Group supports the inclusion of both scheme and independent smallholders within our responsible supply base.
We recognize the importance of improving smallholder livelihoods and productivity through initiatives such as good agricultural practices, responsible farming methods, certification support, technical assistance and yield improvement programs.
Houda Group is committed to developing and maintaining a transparent, traceable and responsible palm oil supply chain.
We will continuously improve our supply chain monitoring systems and work toward greater visibility of the origins and movement of palm oil, palm kernel oil and their derivatives.
Houda Group maintains a transparent grievance mechanism through which stakeholders can raise concerns regarding our operations or supply chain.
We are committed to providing appropriate channels for reporting grievances and establishing processes to assess, investigate and address complaints in a fair and timely manner.
Houda Group recognizes that sustainability is an ongoing process that requires continuous evaluation and improvement.
We will regularly review our policies, procedures and implementation practices while engaging with relevant stakeholders to understand evolving expectations and industry developments.
As new standards, regulations, best practices and sustainability requirements emerge, Houda Group will continue to strengthen and improve its responsible sourcing practices in accordance with our commitment to protecting forests, peatlands, biodiversity, indigenous and local communities, workers and human rights.
HOUDA GROUP INDUSTRY, established in 2015, operates a modern manufacturing plant backed by a legacy of 10+ exciting years. As an integrated palm oil manufacturer, the group offers over 10+ product categories with an annual production capacity of 100,000+ MT/Year, exporting to 30+ destinations globally. HOUDA GROUP also features in-house packaging facilities producing Plastic Jerrycans, PET Bottles, and Tin Cans with integrated printing capabilities.
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