In 2021, Stratas Foods began implementing an annual supplier evaluation process to assess the performance of our tier-one palm suppliers towards sustainability commitments.
We view this as an important mechanism for identifying supply chain risk and for ensuring compliance against our NDPE commitments.
The process provides a means for Stratas to monitor and track supplier progress against NDPE policy commitments, the results of which can then be used to engage suppliers and to support positive action and progress over time.
In 2021, our evaluation process assessed supplier progress in a number of key areas, including: environmental and social policies, timebound implementation plans, supplier engagement efforts, grievance management procedures, and deforestation monitoring.
In 2021, with the support of Proforest, we evaluated the performance of our five direct palm oil suppliers. An overview of supplier results can be seen below.
Key: Suppliers Fully Meeting KPI Criteria Suppliers Partially Meeting KPI Criteria
Of the suppliers surveyed, 100% have an adequate No Deforestation, No Expansion on Peat, and No Exploitation (NDPE) policy in place.
100% of suppliers are also committed to reporting volumes through the NDPE Implementation Reporting Framework (IRF).
80% of suppliers had a grievance management procedure in place which fully aligns with Stratas Food’s expectations.20% of suppliers only partially met the criteria expected.
Of the suppliers evaluated, 50% conducted deforestation monitoring and reported on the supply base coverage. The remaining 50% did carry out deforestation monitoring, but the scope of coverage was unclear.
100% of suppliers possess a timebound implementation plan for achieving their policy commitments and addressing environmental and social risks. 100% of suppliers also publicly report progress against their plan.
100% of suppliers carry out supplier engagement, including engaging suppliers on policy commitments, undertaking new supplier due diligence, supplier onboarding and capacity-building, and ongoing supplier performance monitoring.
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