No Deforestation, No Peat, No Exploitation (NDPE) Policy

As specified in the European Union Deforestation Directive (EUDR), “forests provide a broad variety of environmental, economic and social benefits” essential to humans. Forests provided resources like food, water, and fuel. They regulate global climate, air quality, soil conservation and biodiversity. Forest ecosystem has cultural and spiritual values for many communities and individuals and is linked to improved physical and mental health, including reducing stress and improving immune function.

Deforestation and forest degradation are taking place at an alarming rate, driving global warming and biodiversity loss. It increases the likelihood of contact between wild animals and farmed animals, what increases the risk of spreading new disease but also affects the livelihood of indigenous people and local communicates who depend on forest ecosystems. Deforestation contributes to increased greenhouse gases emissions through forest fires. This process removes carbon sink capacities and decreases the climate change resilience. It reduced biodiversity, what in turn aggravates climate change. Reducing deforestation and restoring forests is the largest opportunity for climate mitigation.

As the Sumitomo Corporation Group company, Presperse Corporation is committed to and promotes environmental conservation and biodiversity. We are committed to avoiding activities that could contribute to deforestation, the destruction of peatlands, or violation of human rights in our supply chain related to palm oil.

Presperse is a member of Roundtable on Sustainable Palm Oil (RSPO). As an RSPO member, Presperse has been committed to the RSPO’s Principles and Criteria (P&C 2024) promoting zero deforestation in sourcing, shared responsibility, zero burn and social compliance. Our Ethics policy as well as the Modern Slavery Act represent our approach to Human Rights in our own operations and in our supply chain. Presperse requires all our suppliers to commit to our Supplier Code of Conduct, being the major requirement of doing business together. This document is based on international standards including Convention on International Trade in Endangered Species (CITES) and International Labor Organization (ILO)’s Declaration on Fundamental Principles and Rights at Work. Supplier Code of Conduct includes expectations for our suppliers to deal with and address human rights matters. We expect our suppliers to have a grievance mechanism to report any concerns related to environmental or human rights issues.

In addition, as a part of RSPO, Presperse supports and is committed to empowering smallholders and pledges to support living income throughout our supply chain.

While Presperse Corporation palm-based ingredients are low volume, we are committed to support Sumitomo Corporation Group Forest Management Policy with emphasis on environmental aspects including the following:

• No engagement in development leading to deforestation or the conversion of natural forests into plantations
• No development of forests with high conservation value (HCV)
• No development of forests with high carbon stock (HCS) such as in peatlands, regardless of depth
• Protection of endangered species
• No development of peat regardless of depth.
• Support of restoration and/or compensation of deforestation or conversion.

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