Decent Work and Economic Growth

Especially in developing countries, the palm oil industry is a major contributor to economic growth and employment in rural areas. Indonesia and Malaysia supply 85 % of the palm oil that is used globally. In these two countries combined, approximately 4.5 million people earn a living from palm oil.

Palm oil economics

One hectare of oil palm trees produces almost 4 metric tons of oil each year on average – more than any other oil crop. Producing fruits throughout the year for over 20 years, palm oil trees provide a sustained source of income for growers. Smallholder farmers are responsible for around 40% of palm oil production. This makes the crop an important source of income for rural families and contributes to inclusive economic growth in rural areas of developing countries.

In 2019, Olenex processed about 900,000 metric tons of oil palm products, linking the growers in origin countries with our customers in the European destination markets. As a result, we secure thousands of jobs while promoting sustainable economic growth through our No Deforestation, No Peat, No Exploitation policy.

Part of the Olenex policy is the commitment to create decent work for all workers in the Olenex palm oil supply chain. We, therefore, require suppliers to:

  • Respect and recognise the rights of all workers.
  • Elimination of forced, bonded (including debt bondage) or indentured labour, slavery and trafficking of persons, and restrictions on workers’ freedom of movement. Olenex is committed to upholding the rights to freedom of movement and the right to resign from employment.
  • Upholding the rights of workers to freedom of association, collective bargaining, and to form and join trade unions of their choice.
  • Ensuring ethical recruitment such that workers do not incur any recruitment fees at any stage of the recruitment process, and no retention of passports/identity documents.
  • Providing a safe and healthy workplace, as outlined in Wilmar’s Health and Safety Policy. With Wilmar, Olenex will work to protect workers, local communities, and the environment from exposure to hazardous chemicals.
  • Respect for diversity, and provision of a working environment free from discrimination, harassment and abuse, as outlined in our Women’s Charter, Equal Opportunity Policy and Sexual Harassment, Violence and Abuse, Reproductive Rights Policy.
  • Commitment to best practices in terms of fair working conditions, including the payment of wages that meet or exceed legal requirements, taking into account reasonable production targets and working hours.