Social life cycle assessment of crude palm oil production in Malaysia

Abstract

Oil palm cultivation in Malaysia is known to be labour-intensive. Human rights issues primarily related to workers have always been contentious. This study performed social life cycle impact assessment using one of the type 1 impact assessment methods called Subcategory Assessment Method (SAM). It aimed to evaluate the social performance of some palm oil companies and identify the social hotspots of workers in crude palm oil production starting from nursery, plantation to palm oil mill, and test the applicability of SAM. The basic requirements of SAM were guided to classify the performance reference points, which were used as the threshold where the social inventory indicators were developed to collect the data. A qualitative research approach was used to acquire a better understanding of the issue highlights. Five companies located in Peninsular Malaysia were chosen in this study. The required data were collected via face-to-face interview with the workers and company representatives. The data analysis via SAM was found able to assess the social performance, and identify the social hotspots. The results obtained indicated that all companies involved were similar as the same laws and regulations were adhered to. The subcategory of working hours was found as the social hotspot requiring further improvement. The findings of this study become useful to serve as a guideline in mapping the social hotspots for workers in the palm oil supply chain, and in formulating effective strategies to overcome the resulted social impacts. However, further studies are required to fill the gaps that have not been solved in this study. These include more participation from other companies and inclusion of other stakeholders to explore and assess the industry's social performance more holistically.