A detail set of KPIs were written into the Deutsche Bank loan agreement setting out targets and reporting requirements. These are summarised below with additional explanation from Wiener.
Land acquisition, community relations and cultural heritage
“This is social engagement. Prior to the loan we engaged local and international NGOs, went out into the surrounding indigenous communities – into the forest - and conducted a thorough social community engagement, noting every grievance and opportunity to assist them. We built the relationships which weren’t held before Halcyon assumed management. We created social action plans. The KPI is about making sure these action plans continue to be implemented.”
“This is hugely important. This is a first for the industry and core metric in our Sustainability Policy- a group-wide zero deforestation commitment. This KPI is to establish a monitoring tool so we can report our adherence.”
High Conservation Value (HCV) Area
“This follows from the no-deforestation commitment and specifies areas that require proper management- areas we are protecting.”
“This relates to any potential future grievances received, and that we need to address them in a timely manner.”
Forestry Stewardship Certification (FSC)
“Although a wood certification standard and not implemented widely in rubber, Halcyon is going for this certification and if successful will be one of the first producers to achieve this.”
“We have certain targets to meet in the implementation of the Cameroon Outgrower Programme.”
“To accelerate our chemical reduction programme across all plantations.”
EcoVADIS and SPOTT
“To maintain or better our audit scores under both EcoVadis and SPOTT assessments.6
HeveaPRO and Latex PRO Certification
“These are the factory level standards created internally by Halcyon – HeveaPRO for dry rubber and LatexPRO for wet rubber. They cover quality, environment, health and safety, corporate and social responsibility, and supply chain security and are certified by testing solutions provider TÜV SÜD.7 The KPI ensures those standards are maintained and reported on.
Health and Safety
“This includes the requirement to not only conduct health and safety training, including defensive driving training, for all the employees and contractors within the Cameroonian operations, but to produce records of this having taken place.”
“Again, the KPI is not just about ensuring there are no fatalities across the operations but documentary evidence to prove it.”
Environmental and Social Impact Assessment (ESIA) of Plantations
“An ESIA assesses the social and environmental impact your operations will have on the area you operate within. Based on the findings, an Environmental and Social Management Plan (ESMP) is developed which is the guideline for your operations of which needs to be followed. This process was conducted by international NGO Proforest, and this KPI relates to the reporting of this.
Resource Efficiency – Water & Energy
“Maintaining and improving our resource efficiency within our operations.”