1. Upon RLU’s establishment as a JV in 2015, Barito Pacific Group and Michelin Group undertook to introduce environmental and social safeguards, in order to produce sustainable natural rubber in degraded land. These production areas were designed to serve as buffer zones and protect national park areas as well as designated conservation areas within the concessions from further encroachment, illegal logging and poaching, as well as to protect biodiversity, in accordance with the norms stipulated under forestry regulatory as HTI License.
2. At the same time, LAJ and WMW undertook to ensure that the rubber industrial forest concessions would provide jobs and underpin other social infrastructure within the ±70,000-hectare Jambi concessions, to support livelihoods and communities.
3. Since the establishment of the JV, Barito Pacific Group, RLU and Michelin Group have all issued their own No Deforestation, No Peatland Development, No Burning, and No Exploitation (NDPE) policies.
4. Conditions subsequent from Michelin under the JV to be adopted by RLU included to stop any illegal deforestation from communities occurring in the concessions, protect remaining isolated trees, start patrolling, engage government and other stakeholders to stop any deforestation in the concession.
5. Barito also agreed to no clearing or development of High Carbon Stock (HCS) or High Conservation Value (HCV) areas, protection of these areas to prevent illegal activities, protection and conservation of flagship species and habitats, responsible water management, progressive improvement of management of the concessions.
6. Among the first actions undertaken by RLU upon its formation was a High Conservation Value (HCV) & High Carbon Stock (HCS) assessment to its subsidiaries in 2015 to re-evaluate, set aside and define production areas (Go and No-Go Zones). This involved an almost year-long moratorium on planting and resulted in 25% of the LAJ and WMW concessions being set aside for conservation and Community Partnerships purposes.
7. A Survey of Land Use (SLUS) is published monthly that shows plantable areas, conservation areas, areas under survey and planted areas based on the HCV/HCS assessment and other legal requirements.
8. The company, five years later, is undergoing a second HCV/HCS assessment, through the latest scheme from HCVRN — the Integrated HCV and HCSA Assessment.
9. Ahead of the RLU transaction a substantial ESG due diligence was undertaken by Daemeter consulting, which subsequently also delivered an Integrated Forestry Management Plan to the company, including the design for the Community Partnership Program.
10. In Jan 2018, a 9,700 Wildlife Conservation area was established with Partnership for Forests and another NGO partner adjacent to the 143,000 ha Bukit Tigapulluh National Park to allow for the transit of animals through the concessions. The WCA did not exist prior to this – the ME report describes a WCA that did not exist prior to the creation of RLU.
11. Beyond direct land conservation and restoration, LAJ and WMW has delineated a sustainability strategy to generate positive impact for more than 50,000 people living in and around the concessions, guided by safeguards and standards such as the IFC Performance Standards towards which the company is working. RLU offers expanded livelihood opportunities, access to markets as well as improved health and education to local communities through a Community Partnership Program (CPP).
12. LAJ and WMW are the first HTI concessions in Jambi Province that have obtained a Ministerial Decree for Recognition and Protection of Forestry Partnership Programs for community livelihood improvement.