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Our Commitment
Olam’s corporate responsibility and sustainability (CRS) model has evolved over the years, but has always been closely integrated with our business model. Our sustainability initiatives are closely aligned to our core business and aimed at making meaningful social impact in the communities in which we operate.
Our vision is to ensure that sustainability is achieved and profitable growth continues, whilst managing our business in a way that is supportive to communities, ensures a safe and productive workplace and is understanding of the environment. We work in close partnership with public and private bodies throughout emerging economies where we are present, with the aim of creating lasting, positive, social and economic change in these communities.
We are guided by the following principles in implementing our sustainability objectives:
- Improving the livelihoods of farmers and communities in which we operate through initiatives that enhance productivity and returns
- Forming alliances with developmental partners who bring skills and knowledge in areas relevant to our business
- Ensuring a safe, healthy and productive workplace for our people and those who work in our operations
- Participating in professional associations at international and national levels to further develop our key CRS goals
- Assessing the impact of our programmes on the community, the workplace and the environment
Our Initiatives
To fulfil our principles and responsibilities to our suppliers, customers, employees and the communities in which we operate, we have focused our initiatives within the following themes:
Improving Rural Livelihoods
We help farmers build capacity in a variety of ways, including training on the latest farming and post-harvest methods, supplying them with new seeds, fertilisers and equipment and guaranteeing buy-back of produce.
An example of the many initiatives we are implementing is a project to help cocoa farmers in Indonesia, which has grown to become one of the largest of its kind in the world. Since inception in 2005, the programme has grown to support 23,000 farmers across Sulawesi, Aceh and Sumatra, and more than doubled average incomes.
Pre-financing
Whether through cash loans, or in-kind resources, the pre-financing of farmers through a responsible source allows them scale up their farms to a commercially viable level. Pre-financing activities can be part of an outgrower programme, where we are paid back in the form of produce, or we may facilitate loans from national banks that are more willing to lend to farmers with a guaranteed buyer for their crops. Olam is one of the largest providers of pre-finance to the small-scale farming sector in Africa.
Traceability
Olam has always encouraged good agricultural practice as a matter of course and today many of our products are fully traceable. Demand for independent certification within customer supply chains is increasing and we now work with several international certification bodies to ensure our products meet customer needs. We work towards certification at two points – production (farmer level) and processing (factory level).
We currently participate in the following certification initiatives: Soil Association Organic (cocoa and cashew); Rainforest Alliance (cocoa and coffee); UTZ (coffee); 4C (coffee); CAFÉ (coffee); AIB (spices); and FSC (timber certification in process).
Biodiversity Management
Biodiversity management is relevant to all of Olam’s lines of business and we are aware of the impact of our agriculture, plantation and forestry operations on the environment. In many origins, we work with producers to encourage diversification into other crops that can contribute to an improved agricultural system, or are more sensitive to the environment.
Biodiversity is particularly relevant to our forestry operations and we have a strategic goal of ultimately moving all our forestry operations, including contracted suppliers, towards Forestry Stewardship Council (FSC) certification standards.
Food Security
Most of the farming in Africa is subsistence-based and as a result, many countries must import basic food staples like rice and wheat. In 2005, Olam decided to invest in local production of high-quality rice for the domestic Nigerian market. We commenced a farming initiative in association with the state government, local farmers and the USAID Markets programme. Today, 14,000 farmers covering 15,000 hectares provide paddy to our mill. Yields have more than doubled since the start of the initiative and farmers are earning substantially higher incomes than before.
This success has led us to expand across Nigeria and we plan to replicate this food security model with various staple crops in other countries.
Social Welfare
In addition to providing employment and farmer-improvement opportunities, we reach out with many different types of assistance to our employees, suppliers and their families. Our social welfare and support activities are mainly focused on health improvement, education and gender equality.
In general, support initiatives will vary from region to region, depending on needs. This year, Olam is launching a large-scale HIV/AIDS education and awareness initiative across Sub-Saharan Africa to support the World AIDS Day.
Partnerships
Olam sees partnerships as the most effective way to manage complex development challenges and maximise the impact of initiatives designed to meet them. We enter into partnerships with governments, international and national organisations, local communities, NGOs and customers to meet our CRS objectives.
As an example of a formalised partnership, Olam is a lead industry representative of two large-scale initiatives in Africa, match funded by the Bill & Melinda Gates Foundation. The aim is to lift millions of people out of hunger and poverty, by arming them with the knowledge and tools to build a better life through profitable farming.
More details of our Corporate Responsibility and Sustainability strategy and initiatives are available in the 2009 Olam Corporate Responsibility & Sustainability Report. |
