Guangzhou Tinci Materials Technology Co., Ltd.

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NDPE Policy

Tinci Materials understands the importance of protecting global forest resources to the natural environment and human society. Therefore, we promise to strictly screen our suppliers when conducting business, urge them to follow the basic framework of No Deforestation, No Peat Use, No Exploitation (NDPE) commitment with us, and at the same time establish a business model with a traceable system. Our commitment revolves around the following three areas:

 

• Contribute to society

• Promoting positive environmental impact (NDPE and tree recycling and traceability commitment)

• Act in full compliance with local and international regulations

  • Dual carbon policy+Commitment to reduce water impact

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    Improving our waste management and reducing our water footprint are among the important steps, we’re taking to minimize our impact on the environment and preserve scarce natural resources. Tinci pays attention to various water-saving measures in the production and operation, and treats part of the wastewater for reuse, including organic sewage, workshop filtrate water, and concentrated water generated by RO membrane and ultrafiltration membrane of deionized water system, in order to reduce the amount of water resources taken and improve the efficiency of water resources management.These measures help improve the sustainability of our products, allowing us to better meet our customers’ expectations for effective products with minimum negative effect on the environment. 


    All of our TINCI sites in global, defines clear sustainability action plans for each plant. These include targeted long-term changes designed to reduce our freshwater intake, non-sustainable industrial waste, and emissions. We are developing water intake and consumption reduction roadmaps for over 20 of our sites. This comes on top of our commitment to achieving carbon neutrality for our business by 2050 – across our scope 1 and scope 2 emissions.


  • Biodiversity

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    We’re taking steps to actively enhance biodiversity and are supporting the Kunming-Montreal Global Biodiversity Framework (GBF). 

    Adopted at the COP15 UN Biodiversity Conference in Montreal, Canada in December 2022, the GBF commits to a series of key biodiversity goals and targets by 2030.

  • Human Right And Social Ethics Commitments

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    TINCI respect and support the Universal Declaration of Human Rights.

     TINCI respects and recognize the rights of all workers, including contract, temporary and migrant workers.

     TINCI is committed to ensuring that the rights of all workers, including legal

    Rights of co-workers, temporary and migrant workers, ensuring that international legal frameworks are adopted where legal frameworks have not yet been established

    Best practices. TINCI follows UN Guiding Principles on Business and Human Rights (UNGP) and the OECD Guidelines for Multinational Enterprises. We require suppliers to adhere to the same ethical standards and conduct rigorous due diligence to ensure no corruption, forced labor, or child labor exists in the supply chain. Our first priority is to comply with relevant legislation and ethical constraints, create, build and promote harmonious, safe and healthy working environment and cultural atmosphere. The following principles are the core requirements guiding TINCI’s business:

     

    1)No exploitation or forced labor

    TINCI and our suppliers may not employ or support forced or exploitative labor or human trafficking. Appropriate measures shall be taken to prevent exploitation or forced labor in relation to the business of the supplier. There will also be no restrictions on workers' freedom of movement during their free time. No property, identity cards, passports and other travel documents may be seized without the prior consent of the employee.

    2)No child labor

    TINCI and our suppliers must not employ or support the use of child labor. Remedial action should be taken if any instance of child Labor are found and appropriate follow-up action should be taken to protect the rights and interests of the child.

    3)Occupational safety and Health

    TINCI and its our suppliers shall strive to provide a safe and healthy workplace and living condition and take effective measures to protect employees from potential occupational safety and health hazards that may cause permanent injury, illness and death.

    4)Employment Contracts

    TINCI and our suppliers shall encourage the signing of employment contracts with employees in writing, in a language that employees can understand, in accordance with the law. No fees and ID cards, passports and other documents are charged at the time of employment.

    5)Freedom of association and right to collective bargaining

    TINCI and our suppliers shall, subject to relevant national laws and regulations, recognize and respect the right of employees to form trade unions and to participate in unions of their choice.

    6)Minimum income Standards, living wages and fair benefits

    TINCI and our suppliers support paying all workers at or above the legal minimum wage; improve their living wage and assure they get the fair benefits. And advance protection of employees for work-related illness and work-related injury.

    7)Working hours

    TINCI and our suppliers support compliance with working hours set by national laws, including overtime hours (on a voluntary basis).

    8)Equal Employment Opportunity

    TINCI and our suppliers support equal employment opportunities in the workplace. All decisions regarding employment, pay, access to training, promotion, dismissal or retirement will be made based on business needs, job requirements and personal qualifications, regardless of caste, ethnic and national origin, religion, disability, gender, marital status, political affiliation, sexual orientation or union membership.. No discrimination based on caste, ethnic and national origin, religion, disability, gender, marital status, political affiliation, sexual orientation and union membership.

    9)Harassment and Violence

    TINCI and our suppliers do not condone harassment or violence of any kind.

    10)No Trafficking in Persons

    TINCI and our suppliers shall not tolerate human trafficking.

    11)Do not abuse their positions and punish employees at

    TINCI and our suppliers shall not take advantage of their power to punish employees.

    12) Expose or expose employees

    13) Grievance Procedures

     TINCI and our suppliers should provide confidential methods for all employees to report improper (such as unethical or illegal) activities to the company. No employee may be disciplined, fired or discriminated against for providing such information.  TINCI respect the rights, security and anonymity (when requested) of Human Rights Defenders, whistleblowers and grievance raisers. TINCI and our suppliers commit to remediate human rights grievances.

    14) Ethical conduct and prohibition of corruption

    TINCI requires our suppliers to adhere to the same ethical standards and conduct strict due diligence to ensure that the supply chain is free from corruption, forced labor, child labor and other issues. Employees and suppliers are required to sign the "Non-Bribery Commitment Letter", clearly prohibiting any form of commercial bribery, kickbacks or improper exchange of benefits. Regularly conduct anti-corruption, human rights and ethical compliance training for employees and suppliers to enhance compliance awareness. Severe penalties will be imposed on acts that violate moral and anti-corruption policies, including termination of cooperation and legal accountability

    ⚫ Promote the inclusion of smallholder farmers in supply chains.

    TINCI encourages its suppliers to engage in ongoing consultations with smallholders and other stakeholders to provide technical assistance and support to smallholders and help them comply with this policy. Help smallholder farmers earn a minimum local standard of living.

    ⚫ Respect for land ownership

    TINCI respects legal land ownership and recognizes the obligations and responsibilities associated with land ownership, such as respecting the long-term conservation and sustainable use of land and national resources. In doing so, we assume our responsibilities in operating the country, and in complying with the country's constitution and local laws and regulations.

    ⚫ Respect the right of indigenous peoples and local communities to free, prior and informed consent (FPIC).

    TINCI respects, supports and recognizes that indigenous peoples and local communities have legal, shared or customary rights to give and withhold and free, prior informed consent to business activities carried out on their land, and TINCI undertakes to ensure compliance with the FPIC before commencing any new business activities.  TINCI and our suppliers will engage all stakeholders in the FPIC process to ensure full implementation of the FPIC work.

    ⚫ Resolve all complaints and conflicts in an open, transparent and consultative manner.

    TINCI is committed to actively and constructively engaging with all stakeholders, including communities, governments, suppliers and civil society, in consultation with these stakeholders to develop procedures for the responsible handling of complaints.

    4、Trace Back to Known sources

    TINCI promises to obtain clarity in the supply chain and achieve all traceability in the supply chain.


  • Evaluation scheme

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    Suppliers’ profile - Details business operations and potential risks to determine the starting point for the roadmap.

    Due diligence - Supplier due diligence is completed prior to introduction.

    Remote monitoring – To ensure no deforestation by random inspection.

    Periodic evaluation - Evaluates potential noncompliance at geographic sites and the reality of supplier implementation policies.

    Training - Provide regular training to our suppliers to ensure the effective implementation.

    Risk management - Remove suppliers from the purchase list if they do not meet the requirements.

    Reporting - Resolve supplier reporting issues through our reporting mechanism.

    Media monitoring - Identify supplier related sustainability issues.

    TINCI Risk accessment of human right risk 识别人权风险的风险评估-英文EN.pdf

    识别森林砍伐风险和转化的风险评估方案 EN-TINCI deforestation and conduction risk assement.pdf

    申诉和举报管理Grievance policy-EN250709.docx


  • Cooperation strategy

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    Establish suppliers’ profile

    Select supplier with RSPO certification

    Evaluate suppliers for compliance with our Sustainability Policy

    Communicate roadmap with suppliers

    Continuous (remote) monitoring, and on-site inspections (if necessary) and assessments

    Assess to determine whether the purchasing relationship can be resumed (for suspended suppliers)

     


  • Implementation

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    Tinci Group launched our sustainability policy and implementation plan in 2022, and a strategy to achieve NDPE vision and goals in 2023 and future.

     

    The action scheme enumerated in the implementation plan involves the management of:

    Ÿ Our independent production system

    Ÿ Third-party suppliers

     

    Our independent production system

    Tinci integrates the concept of sustainable development into its work and business processes, pays attention to managing the impact of its own actions on the environment and society, actively fulfills its corporate social responsibility, and promotes the sustainable development of the company and society.

     

    RSPO

    Indonesian Sustainable Palm Oil

    International Sustainability and Carbon Certification

    Palm Oil Innovation Organization

    Environmental Performance Rating Program

     

    Third-party suppliers

    More than 90% of the palm oil we use in our production comes from third-party suppliers. We invest significant resources in tracking our oils to support suppliers in meeting our sustainability policy requirements. We focus on actively participating in the work of suppliers, providing customized solutions and technical support to help them improve their capabilities and enhance their performance (in terms of environmental protection).


  • OWN Operations and action plan(Preliminary NDPE Daily Standard)

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    >50% RSPO- Certified palm oil or fatty acids

    >50% RSPO- Certified palm oil or fatty acids in 2025

    100% sourcing palm oil or fatty acid which are traceable to supplier's mill or planation in 2030.

    TINCI-NDPE timebound action plan有时间线的NDPE政策实施计划.pdf

  • Supplier Operations (Preliminary NDPE Daily Standard)

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    >60% Traceable to suppliers’ refinery

    >50% Traceable to suppliers’ mills or plantation

    100% Actively monitoring supplier concessions (for deforestation and peat development)

    >60% Suppliers committed to abide by our NDPE Policy

    >100% Traceable to suppliers’ mills or plantation

    SUPPLIER CODE OF ETHICS.pdf

  • Traceability System Business Model

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    Palm kernel oil and its main derivatives are one of the important renewable raw materials of TINCI products, which are mainly used in the production of surfactants. As of February 2020, the palm oil and palm kernel oil purchased by our plant in Guangzhou Guangdong, Jiujiang Jiangxi, and Tianjin have achieved the RSPO (Roundtable on Sustainable Palm Oil) certification. 


  • Promote Positive Environmental

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    The development of HCV areas is not supported, and the management of HCV areas will be carried out in accordance with the policies and procedures approved by the high conservation value resource network (HCV RN). Purchase relevant raw materials not from HCV area.


  • No Deforestation Commitment

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    TINCI  commitment requires suppliers to not to convert HCV and HCS forest since December 31, 2022

    ⚫ Do not convert high conservation value (HCV) areas

    The process of identifying and protecting areas of high conservation value (HCV) in our supply chain of palm oil derived products within the scope of this Policy, TINCI identifying the presence or potential presence of areas of high conservation value in the supply chain or determining the presence or potential presence of areas of high conservation value in areas to be developed. This will be conducted by HCV auditors in collaboration with local stakeholders.

    HCV is a biological, ecological, social or cultural value of significant or extremely important national, regional or global significance. All natural habitats with inherent conservation value, including rare or held species present, provision of ecosystem services, religious sites, or resources harvested by local populations, can be classified into 6 categories of High Conservation Value Areas (HCV).

    1)Species diversity

    Concentration of biodiversity, including special species and rare threatened or endangered species of global, regional or national importance.

    2)Landscape-level ecosystems

    Large landscape-level ecosystems of global, regional, or national significance, Mosaic ecosystems and primary forest landscapes, and containing surviving populations of the vast majority of natural species in their natural distribution and rich natural patterns.

    3)Ecosystems and habitats

    Rare, threatened, or endangered ecosystems, habitats, or protected areas.

    4)Ecosystem services: Essential ecosystem services in critical situations, including protection of water concentration areas and control of erosion of fragile soils and slopes.

    5)Community needs

    Locations and resources (for livelihoods, health, nutrition, water, etc.) that meet the basic needs of local communities or indigenous people, identified through contact with these communities or indigenous people.

    6)Cultural values

    Sites, resources, habitats and landscapes of global or national cultural, archaeological or historical significance, or through contact with such local communities or indigenous peoples, to determine their ecological, economic or religious importance to the traditional culture of the local community or indigenous peoples.

    ⚫ Do not convert high carbon stock (HCS) forests

    TINCI promises not to convert high carbon stock (HCS) forests,  the HCS stratification method divides vegetation in a given area into six different grades. The six levels are: high density forest, medium density forest, low density forest, young forest, shrub and felled/open space. The first four categories are considered potentially high carbon stock (HCS) forests.

    1)High density forests: Advanced secondary forests that are close to their original state.

    2)Medium density forest: Secondary forest that is more disturbed than high density forest.

    3)Low-density forests: similar to secondary forests but highly disturbed and gradually recovering with older forests.

    4)Young forests: Mostly young regrowth forests that have been regrowing for more than 10 years, but some old-growth forests occasionally appear.

    5)Shrubs: Areas that have been felled within the last 10 years, covering ground with regenerating woody and herbaceous plants of dominant species.

    6)Cut land/open space: Recently cleared land, mostly grass and crops, with few non-crop plants.

    7)Forest land that has not undergone land preparation before new planting or replanting.

    8)We commit to seeking opportunities in its operation or supply chain to implement or support restoration and/or compensation for deforestation or transformation through compensation mechanisms, government and funds.

    9)Zero deforestation and free conversion.

  • No Peat Commitments

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    We are committed to complying with the standards set out in the RSPO Handbook on recent management practices for peat on existing plantations.

    1. No new peat development.

    2. Apply best peat management practices to existing plantations.

    3. Where feasible, explore peat restoration options.

    4. No development of peatland regardless of depth. (Peat soil is defined as an acidic organic soil with more than 65% of organic matter, more than 50cm in depth, and covering an area of at least one hectare.)


  • No Exploitation Commitments

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    Respecting human rights including the rights of indigenous and local communities, families, and other land tenure holders to give or withhold Free, Prior and Informed Consent (FPIC) for development and conservation of land and natural resources.

    Respecting the rights of all contracts, temporary and migrant workers of all genders.


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