Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Management
• Social Performance
• Governance

Environmental Achievements

• Greenhouse Gas (GHG) Emission Management Efforts decreased 73.70% from 2020
• No deforestation
• Land clearing without burning
• Conservation area management including protection and management of HCV and HCS Areas

Social Achievements

• Realization of Community CSR Program Fund Distribution reached Rp750 million, increased by 76% from 2020
• Zero Fatalities
• Increased employee training hours by 65.58%
• Increased employee participation in training by 104.64%

Governance Achievements

• Issuance of the latest written guidelines related to the Prohibition of Accepting Bribes, Rewards, Gifts, and other Gratification
• Issuance and ratification of the Code of Conducts for all employees, including the Board of Directors and the Board of Commissioners
• Implementation of a whistleblowing system

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacted operational aspects and sustainability implementation
• Issues involving interaction with humans
• Pest control and chemical usage
• Forest fires

Mitigation Strategies

• Adaptation and finding solutions to challenges
• Implementation of Integrated Pest Management (IPM)
• Gradual reduction of paraquat usage
• Formation of emergency response teams, firefighters and patrols, installation of control towers, warning signs and information at strategic locations

Supply Chain Management

Responsible Procurement

• 100% traceability to plantation and POM in North Kalimantan
• Coaching suppliers
• Developing the supplier information and transparency system on the Company’s public report
• Establishing relationship and facilitating farmers/ cooperatives in partnership programs

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather, climate change, plant diseases, pests, natural disasters, land fires

Transition Risks

• Regulatory changes in transition to low-carbon economy

Opportunities

• From waste to energy approach

Reporting Standards

Frameworks Used: GRI Standards (Core option), POJK No. 51/POJK.03/2017

Certifications: ISPO, Halal, Kosher

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 12 (Responsible consumption and production)
• Goal 15 (Life on land)
• Goal 8 (Decent work and economic growth)

Various programs and initiatives contribute to these goals

Awards & Recognition

• Award to PT Karangjuang Hijau Lestari on the repayment of Property Tax in 2020
• Award to PT Karangjuang Hijau Lestari on the World Environment Day

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Governance

Environmental Achievements

• Completed GHG calculations for all POMs and plantations using ISCC reference values.
• 100% utilization of solid and liquid waste for operational purposes, replacing non-biomass energy sources.
• ISPO surveillance at PT KHL, BSI, TMSJ, and BHP is 100% accomplished.
• Halal certification at 3 PT (KHL, BSI, TMSJ) 100% achieved.
• Kosher certification at TMSJ 100% achieved.

Social Achievements

• Realization of CSR funds of Rp3.320 million, an increase of 12.45% compared to 2022.
• Employee turnover rate decreased to 17.91% in 2023 from 31.40% in 2022.
• Recruited 6,463 employees in 2023.

Governance Achievements

• Implemented a web-based goods procurement system with an open bidding concept online.
• Intensive socialization regarding the implementation of the written policy FAP.CSOP.LPSIHG.002 concerning the Prohibition of Receiving Bribes, Rewards, Gifts, and Other Gratifications.
• Signing of an Integrity Pact by all top management related to the prevention of and commitment to practices free from corruption and bribery.

Climate Goals & Targets

Environmental Challenges

• Increased competition in the plantation and palm oil industry.
• Fluctuations in global CPO prices.
• Fluctuations in currency exchange rates.
• Fluctuations in FFB supply from third parties.
• Declining and uneven palm plant productivity.
• Economic inflation pressures and population growth.
• Increasing number of conflicts that potentially hinder operational activities.
• Unevenly distributed CSR programs.
• Potential conflicts with indigenous communities regarding land ownership.
• Factory waste pollution.
• Deforestation of conservation areas by the community and/or contractors.
• Increasing greenhouse gas (GHG) emissions from operational activities.
• Forest and land fires within and around concession areas.

Mitigation Strategies

• Cost production efficiency and minimizing non-priority cost sources.
• Developing and enhancing the quality of partnership programs and engaging in long-term cooperation.
• Intensifying crops by planting new, superior varieties with developed agronomic techniques.
• Observing, responding, and identifying community needs through economic empowerment programs.
• Involving the community more broadly and evaluating CSR programs and budget requirements.
• Conducting formal and informal social approaches regarding concession boundary management.
• Organizing, digitalizing, and electronically compiling all land compensation documentation.
• Managing and utilizing waste in accordance with regulations.
• Creating innovations related to the use and optimization of circular economy from generated waste.
• Socializing the existence and benefits of conservation land for both the company and the community.
• Socializing the outer demarcation boundaries of the conservation area.
• Adopting digital monitoring technologies and implementing forest management collaboration programs with the community.
• Researching potential uses of newer, more efficient technologies.
• Implementing integrated pest management.
• Using palm kernel shells and fibers as boiler fuel in factories.
• Optimizing the use of liquid fertilizer from waste to replace chemical fertilizers.
• Optimizing all company fire-fighting facilities, warehouses, and infrastructure.
• Developing an automatic early detection system (Early Warning System).
• Forming Masyarakat Peduli Api.

Supply Chain Management

Responsible Procurement

• 100% traceability to the farms and PMO across the North Kalimantan region.
• Guidance to suppliers at the concession level and surrounding areas.

Climate-Related Risks & Opportunities

Physical Risks

• Bad weather
• Plant diseases
• Pests
• Natural disasters
• Land fires

Transition Risks

• Changes in market conditions

Reporting Standards

Frameworks Used: GRI Standards 2021, POJK No. 51/POJK.03/2017

Certifications: ISPO

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 13
• SDG 15

The company's sustainability programs contribute to these goals through economic empowerment, sustainable consumption and production, climate action, and protection of terrestrial ecosystems.

Awards & Recognition

• PROPER awards for several subsidiaries
• Loyal Customer Testing Services for Private Category award