Our goal is to develop products that are environmentally and socially responsible. These themes form the core of the HeveaPro promise to our customers. We assess not only our final products but also the entire value chain culminating in production. We strive to ensure that our raw materials are sourced sustainably. We have commenced with third-party validation and certification of our HeveaProstandards across all of our factories. Our goal is to get all factories certified by TÜV SÜD, a German certification centre.
We maintain sustainable agricultural practices such as zero deforestation of primary forest and obtaining free, prior and informed consent (FPIC) from affected stakeholders. We encourage our suppliers to uphold the same sustainability standards. However, limited resources or knowledge may pose hindrances for our suppliers, especially smallholders, to embrace sustainability. We welcome this challenge as it presents us with an opportunity to help and influence our suppliers’ business practices. We periodically visit our smallholders’ plantations to provide advice on best practices in agroforestry and agricultural management skills.
We are also focusing our efforts to improve the traceability of natural rubber through our smallholder and agency networks. We have initiated several sustainable programmes to help improve the livelihoods of the smallholders in our supply chain. We will further roll out Rubberway (a Michelin-developed app to trace and map the supply of our raw materials) throughout Indonesia and Ivory Coast in our continued efforts to understand the issues the smallholders faced. We have started working with our customers and NGOs on specific sustainability programmes.
At Halcyon Agri, we continue to ensure responsible supply chain, placing it as one of our long-term priorities. We are committed to a sustainable business practice for a crucial raw material that the world cannot do without it.
Sustainability Performance Targets:
KPI 1: Energy Intensity (kWh/metric tonne (mT))
– SPT 1 : Achieve energy intensity (grid electricity of 190.5 kwH/Mt by 2025# vs a 2021 baseline↑ of 194.5kWh/mt. This translates approximately to a 2% absolute reduction in electricity consumption by the Asian factories**.
KPI 2: Water Use Intensity (m3/mT)
– SPT 3: Achieve water use intensity (freshwater withdrawals) of 9.02m3/mT by 2025 vs a 2021 baseline of 9.49m3/mT. This translates to approximately 5% absolute reduction in freshwater requirements by the Asian factories**.
KPI 3: Traceable Sourcing Rate (%)
– SPT 3: Achieve 100% end to end traceability for customers, at district level by the Asian factories**+ by 2025.
* Trigger event
# 2025 means 30 June 2025
↑ 2021 baseline means the average of 1H 2021 and 2H 2021
** Asian factories refer to the 26 factories of Halcyon Agri – Indonesia (17), Malaysia (2), Thailand (5), and China (2).