Our approach

AtSource is designed to provide our customers with sustainability, data insights and traceability through the agricultural supply chain. Learn about our tiered approach in detail.

GOVERNANCE AND OPERATIONAL FRAMEWORK

The development, management, and implementation of AtSource is governed by ofi (Olam food ingredients), on behalf of itself and the wider Olam Group companies. The AtSource governance structure and respective roles and decision-making functions are shown in the diagram below. 

Scope and system setting: 

AtSource is open to ofi and Olam Group product supply chains. AtSource supply chains include all entities that handle the product from the farm where it was cultivated to the final processing site (i.e., farmer groups, intermediary suppliers and facilities and ofi/Olam processing facilities).

The AtSource system requirements are reviewed and updated at minimum every 5 years in a participatory process where our businesses and AtSource stakeholders are proactively engaged and encouraged to provide input on our system components and requirements. Their feedback is internally revised and considered in the following AtSource system update.  Our most recent revision of the AtSource system requirements took place in 2023. The AtSource system requirements are fully aligned with our sustainability policies and procedures. We encourage our stakeholders to provide feedback regarding our system that helps us improve our business, make sure our suppliers meet our requirements, and increase transparency in our supply chains.  In case of any breaches to our system, policies, or codes these can be reported via our grievance procedure that applies to the whole supply chain accessible in our ofi Speak Out platform and Olam Agri grievances channel or directly contacting us at atsource@ofi.com

Note: AtSource scheme rules and other system documents are available upon request. Please contact us at atsource@ofi.com

SUSTAINABILITY REQUIREMENTS

These are a set of principles and criteria in the key sustainability areas of agricultural supply chains to ensure responsible sourcing. The sustainability requirements are based on our policies and sustainability strategy and are categorized in our main sustainability pillars and topics linked to the UN’s Sustainable Development Goals and the UN Global Compact. 

The Sustainability Assessment Checklist (SAC) is our tool for assessing the compliance and performance of our supply chains against our sustainability requirements. The SAC is used by businesses managing AtSource Supply Chains to conduct annual self-assessments and by external auditors when conducting 3rd party verification audits. The outcomes of these are the foundation for the development of action plans. 

Recognising that requirements and risk can apply differently to the distinct types of entities and their activities, the SAC includes specific sustainability requirements for each of the three entity levels (farmer groups or estates, intermediaries, and processing facilities) in the supply chain. 

AtSourceV offers a set of requirements in 24 key sustainability areas applicable to the Atsource supply chain. 

In addition to the AtSourceV sustainability requirements, AtSource+ includes further and more advanced requirements in each principle, creating additional intervention and impact. 

The AtSource Sustainability Principles are: 

 

 

Click here to download AtSource Sustainability Principles

Unacceptable practices 

Within the AtSource sustainability requirements, there are certain practices classified as “unacceptable”. These are the minimum requirements to enroll into the AtSource program and are set in the ofi Agri Supplier Code, Olam Agri Supplier Code, and other sustainability policies:  

- Worst forms of child labour
- Forced and trafficked Labour
- Physical and/or sexual harassment or violence
- Forced evictions, displacements of local communities and/or no proof of FPIC (Free, Prior & Informed Consent)
- Use of illegal or banned pesticides and fertilisers
- Deforestation - Destruction of important natural habitats including legally protected areas and areas of high conservation value.

These issues require special attention within AtSource, as described below:

- Business Units must risk assess supply chains enrolling in AtSource to evaluate the likelihood of these issues existing in AtSource supply chains.
- Findings should be recorded on the Sustainability Assessment Checklist, and major or critical non-conformances require action to be taken before the products can enter AtSource.
- If any of these Unacceptable Practices are found in an AtSource supply chain at any time, these may lead to the supply chain suspension or exclusion as per the ofi Agri Supplier CodeOlam Agri Supplier Code  and other sustainability policies. Immediate action must be taken to stop, resolve and mitigate the issue and allow the supply chains to enroll or remain in AtSource. 

                            (To access the complete version of our sustainability requirements and SAC tool please contact us at atsource@ofi.com)

Action plans:

Managers of AtSource supply chains develop and implement action plans to ensure continuous improvement of sustainability performance.  Action plans define the interventions and activities to be implemented, intended outcomes, timelines, and resources required for implementation. These are updated at least annually, based on verification outcomes of self-assessments and 3rd-party audits. 

ASSURANCE AND VERIFICATION

Our scheme rules explain in detail the assurance requirements and procedures that apply to AtSource supply chains.  This includes assessing compliance with the AtSource Sustainability Principles; responding to risks and non-conformances through documented Action Plans; confirming traceability to the Farmer Group and establishing Chain of Custody systems. The system scope extends from agriculture through third party intermediaries to the final owned processing facility in the supply chain.

All AtSource supply chains undergo independent, 3rd-party verificaton to evaluate sustainability performance against AtSource requirements. The whole supply chain is audited, with sampling used to evaluate sustainability performance at farmer, intermediary, and processor level. 

AtSourceV follows a verification cycle of three years. Supply chains undergo a 3rd-party verification audit at minimum once every three years. In other years, internal monitoring is conducted. 

AtSource+ supply chains are audited by 3rd party verification bodies annually within a verification cycle of three years  ( a “Verification audit”  covering the full scope of our AtSource system requeriments is conducted during the first year, as part of the enrolment process in AtSource+, thereafter “survilliance audits” are conducted during the next two years  to monitor the continous compliance of the sustainability requirements, data integrity and the ongoing implementation of the action plans).

Audit rules are contained in the AtSource Verification Protocol, the objective of which is to ensure that auditors conduct audits in a consistent manner and make verification decisions based on a truthful, accurate and fair representation of the level of the implementation of the requirements.

Audits are conducted by qualified auditors who work for authorised AtSource Verification Bodies that must adhere to the requirements of the AtSource Oversight Framework. This document covers topics such as organisational management of the Verification Body, auditor competence, and management of conflicts of interest and impartiality. The AtSource Verification Partner monitors Verification Body performance through quality reviews.

(For further information or request of our assurance and verification protocol, please contact us at  atsource@ofi.com

TRACEABILITY

Traceability back to Farmer Group level or our estates is part of the AtSourceV and AtSource+ offer.

ENVIRONMENTAL FOOTPRINT

The AtSource environmental footprint calculator is founded on Life Cycle Assessment (LCA) methodology 
(ISO 14044) and generates footprints in compliance with ISO14067Greenhouse Gas Protocol Product Life-Cycle Accounting and Reporting Standard, and PAS 2050:2011.

The scope of the calculator starts at the crop production and ends when the product is delivered to a customer. Following LCA methodology enables multiple environmental impact indicators to be assessed. Those included in AtSource are Climate Change and Water Use:

- Climate change: IPCC 2021 GWP 100a impact assessment method is used, which uses the Global Warming Potential at 100 years. This indicator weights all greenhouse gases emissions (e.g., 1 kg of CH4 into the atmosphere is about equivalent to releasing 27.9 kg of CO2) according to their global warming potential and sums them into metric tonnes of CO2-e (equivalent) per unit of product.

- Water use: The calculator sums all freshwater used. Water use is expressed in m3 of water used per unit of product.

AtSourceV provides a country specific average product environmental footprint using generic data.

The AtSource+ environmental footprint calculator uses primary data generated from the full supply chain, including over 100 data points at the agricultural and processing facility stage, and precise distribution routes.  The AtSource environmental calculator enables our customers to establish an environmental footprint that is unique to them.

THIRD PARTY RISK PROFILES

Olam uses 3rd party risk screening tools as an indicator of the risk level of several material areas for every commodity in every country that we operate. The risk scores are aggregated and reviewed on an annual basis. 

If 3rd party risk scores show an elevated level of risk, we use this knowledge in 2 ways:

  1. Inform our Olam Supplier Code (OSC) engagement discussions with our suppliers. We are able to talk to suppliers about these elevated risk areas and provide advice on how to avoid and/or mitigate the risk.
  2. Inform our business strategy and plan to tackle these challenges. We recognise that risk scores give a general indication of risk for a particular topic and country. We use this information to identify areas for further exploration and to prioritise strategic risk mitigation interventions.

The risk scores are listed below:

Country Risk Screening Tool
Methodology
Economic Opportunity

UNDP Population in Multi-Dimensional Poverty

Elevated risk = score of 80 or above   

Acceptable level of risk = score below 80

Safe & Decent Work

UNICEF Rural Child Labour

Elevated risk = score of 80 or above

Acceptable level of risk = score below 80

Diversity & Inclusion

UNDP Gender Inequality Index

Elevated risk = score of 0.66 or above

Acceptable level of risk = score below 0.65

Education & Skills

UNDP Mean years of schooling

Elevated risk = Below 7 years

Acceptable level of risk = 7 years and above

Health & Nutrition

The Economist Global Food Security Index

Elevated risk = score of 50 or above

Acceptable level of risk = score below 50

HEALTH & WELL-BEING

UNDP HDI Life Expectancy at Birth

Elevated risk = Below 66 years

Acceptable level of risk = 67 years and above

Climate Change

ND-GAIN

Elevated risk = 1) high vulnerability, low readiness 2) high vulnerability, high readiness

Acceptable level of risk = 1) low vulnerability, low readiness; 2) low vulnerability, high readiness

Water Use

WRI Aqueduct country score

Elevated risk = 1) medium to high risk; 2) high risk; 3) extremely high risk

Acceptable level of risk = low to medium risk

Healthy Eco-Systems

Total tree Cover Loss since 2000 (%) (WRI GFW)

Elevated risk = Greater than 4%

Acceptable level of risk = Less than 4%

Healthy Eco-Systems

GMAP HCV proxy - PS6 Presence and impact on high or unique terrestrial biodiversity

Elevated risk = score of 80 or above

Acceptable level of risk = score below 80

DIFFERENTIATION: ATSOURCEV AND ATSOURCE+

 

The key differences between the AtSourceV and AtSource Tiers are:

Area of  differentiationAtSourceVAtSource+
Sustainability  RequirementsAtSourceV uses a set of principles and criteria in 24 key sustainability areas of agricultural - supply chains to ensure responsible sourcing of AtSource products. In addition to the sustainability requirements of AtSourceV, AtSource+ includes additional and more advanced requirements in each principle, creating additional intervention and impact.
Data and insightsData for basic five ‘Portfolio’ metrics is collected and reported upon annually, providing a general overview of the farmer groups that are part of the AtSourceV supply chain.   Data for wide-ranging metrics on the economic, environmental, and social conditions is available in this tier, to provide deeper and more granular level of information and insight about the AtSource+ supply chain.
Environmental FootprintAtSourceV provides a country specific average product environmental footprint using generic data.The AtSource+ environmental footprint calculator uses primary data generated from the full supply chain, including over 100 data points at the agricultural and processing facility stage, and precise distribution routes.
Assurance & VerificationAtSourceV follows a verification cycle of three years.

Supply chains undergo a 3rd-party verification audit conducted by authorised verification bodies at minimum once every three years.

In other years, internal monitoring is conducted by our professionals in the ground. Scope of  verification: Sustainability requirements compliance and performance assessment, traceability and chain of custody.
AtSource+ follows a verification cycle of three years.

Supply chains undergo a 3rd-party verification audit conducted by authorised verification bodies annually.

AtSource+ audits use a higher rate of sampling and a broader scope to provide a higher level of assurance regarding audit findings. Scope of  verification: Sustainability requirements compliance and performance assessment, traceability,  chain of custody and data integrity.