Climate Change Data

Bumitama Agri Ltd.

Climate Impact & Sustainability Data (2015-2016, 2019-2020, 2021-2022)

Reporting Period: 2015-2016

Environmental Metrics

Total Carbon Emissions:274,466 tCO2e/year (net)
Water Consumption:1.25 m3/MT FFB (mills only)
Carbon Intensity:1.6 MT CO2e/MT CPO (2016)

ESG Focus Areas

  • Forest conservation and sustainable land use
  • Respect for local community rights
  • Respect for human rights in the workplace
  • Traceability and responsible sourcing

Environmental Achievements

  • Phased out paraquat in 2016
  • Estimated an emissions intensity of 1.6 tonnes of carbon dioxide equivalent per tonne of CPO produced (1.6 MT CO2e/MT CPO) in 2016
  • 22% reduction in water consumption at mills over five years
  • 40,000 natural forest species nursery established for reforestation

Social Achievements

  • Distributed IDR 207 billion (around USD 1.5 million) in dividends to plasma smallholders in 2016
  • Employee turnover decreased dramatically over the last five years (from 49.9% in 2012 to 17.1% in 2016)
  • Launched a new employee orientation programme and introduced team-building activities
  • Established the Bumitama Academy in 2014 for enhanced recruitment, competence development and leadership development

Governance Achievements

  • Received seven Asiamoney Awards in 2016 for corporate governance, disclosure and transparency, and corporate social responsibility
  • Implemented an enhanced grievance procedure in 2015
  • Board of Directors approved a detailed Code of Conduct in late 2014

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce accident rates by 40%
  • Complete construction of two methane capture facilities by end of 2018
Short-term Goals:
  • Complete survey and mapping of independent smallholders supplying FFB by end of 2017
  • Complete RSPO certification of all mills by 2020
  • Complete RSPO certification for all plasma smallholder schemes by 2024

Environmental Challenges

  • Constant quest to prevent and control fires in and around operations
  • Need to enhance productivity of existing land holdings
  • Complexity and time-consuming nature of RSPO NPP processes
  • Increasing accident rates in 2015-2016
Mitigation Strategies
  • Established a command and control centre for fire emergencies, increased pond water conservation, improved accessibility to water sources, partnered with Manggala Agni for training
  • Investing in R&D, including tissue culture, and good agricultural practices to achieve better yields
  • Working to streamline RSPO processes
  • Forming a dedicated task force to reduce workplace accidents and eradicate fatalities, incorporating measures into estate management KPIs

Supply Chain Management

Responsible Procurement
  • FFB traceability initiative
  • No Deforestation, No Peat, No Exploitation (NDPE) policy
  • Code of Conduct for employees and contractors

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme drought and fire
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Methane capture for electricity generation

Reporting Standards

Frameworks Used: GRI Standards: Core option (2016 version), RSPO

Certifications: RSPO (4 mills in 2016), ISPO (KMB in 2014, GKG & GKS in 2017), ISO 9001:2008 (Pundu Learning Centre)

Awards & Recognition

  • Seven Asiamoney Awards in 2016

Reporting Period: 2019-2020

Environmental Metrics

Total Carbon Emissions:1,600,411 tCO2e/year
Carbon Intensity:1.56 MT CO2e/MT CPO in 2020

ESG Focus Areas

  • Forest conservation and sustainable land use
  • Respect for local community rights
  • Respect for human rights in the workplace
  • Traceability and responsible sourcing

Environmental Achievements

  • Managing 39,310 ha of conservation areas (16.8% of total land bank)
  • 81.4% of total planted area is free from rodenticide
  • Vegetation gain of 2,091 ha in 2020, with less than 42 ha of forest lost
  • Avoided 10% of total POME GHG emissions through co-composting

Social Achievements

  • COVID-19 business continuity plan implemented
  • Two plasma smallholder groups RSPO certified (1,899 ha)
  • Established a fish farming SME to support Mitra Bahaum plasma programme cooperative
  • Improved the nutritional intake of local children

Governance Achievements

  • Expanded the group to include a new conservation department
  • Reorganised the fire management team
  • Launched the Triple Zero Target Programme (TZTP) for 2021-2025

Climate Goals & Targets

Long-term Goals:
  • Zero fires inside concession areas by 2023
  • 75% reduction in accident rates against 2020 baseline by 2025
Medium-term Goals:
  • Achieve 30% reduction in GHG intensity by 2030
  • Annual deforestation in set-aside areas < 0.1%; Forest cover increase by 10% by 2025
  • RSPO certification for all plasma and external smallholders by 2024
Short-term Goals:
  • Reduce water usage intensity from mill production to 1.2 m3/MT FFB by 2022
  • 85% of total planted area to be rodenticide-free by 2022
  • Complete certification of all mills by 2022 or 1 year after obtaining HGUs

Environmental Challenges

  • Increase in workplace accident rates
  • Unprecedented spike in fire outbreaks in 2019
  • COVID-19 pandemic impacting operations and certification
  • Over-reliance of communities on Bumitama's operations
Mitigation Strategies
  • Developed Triple Zero Target Programme (TZTP) to address workplace accidents, fires and environmental grievances
  • Reorganised fire management approach and introduced TZTP
  • Implemented COVID-19 business continuity plan and protocols
  • Exploring alternative livelihood opportunities for communities (e.g., fish farming)

Supply Chain Management

Supplier Audits: 29 outgrowers and 69 independent smallholder groups performance verified with a questionnaire

Responsible Procurement
  • FFB traceability to plantation (98.8% in 2020)
  • Supplier commitments to no land clearing before HCV & HCS assessment
  • Monitoring land cover change in suppliers’ areas using satellite monitoring system

Climate-Related Risks & Opportunities

Physical Risks
  • Fires
  • Extreme weather events
Transition Risks
  • Fluctuating weather patterns
  • Changes in palm oil market
Opportunities
  • Development of energy-efficient products
  • Monetization of carbon offsets from social forestry

Reporting Standards

Frameworks Used: GRI, RSPO

Certifications: RSPO, ISPO, ISO 14001

Awards & Recognition

  • 7th out of 350 companies in the 2020 Global Canopy Forest 500 assessment

Reporting Period: 2021-2022

Environmental Metrics

Total Carbon Emissions:1,676,840 tCO2e/year
Scope 1 Emissions:1,244,129 tCO2e/year
Scope 2 Emissions:0 tCO2e/year
Scope 3 Emissions:454,650 tCO2e/year
Renewable Energy Share:95.2%
Total Energy Consumption:13,804,807 MWh/year (estimated from GJ)
Water Consumption:6,520,282 m3/year
Waste Generated:2,222,110 tons/year
Carbon Intensity:1.41 MT CO2e/MT CPO

ESG Focus Areas

  • Environmental Protection and Sustainable Land Use
  • People and Communities
  • Supply Chains and Responsible Sourcing
  • Governance and Accountability

Environmental Achievements

  • 13.5% reduction in GHG emissions compared to 2016 baseline
  • First methane capture facility commissioned in 2022
  • >95% of energy consumed comes from renewable sources
  • 5.6% reduction in total energy consumption since 2021
  • Improved water use efficiency: 9.6% reduction in mill water usage intensity since 2019
  • >40,000 ha conserved: 17% of total landbank
  • 305 ha of forest replanted with >103,800 tree seedlings in 2021 and 2022

Social Achievements

  • 100% of employees vaccinated against COVID-19
  • 36% accident rate reduction since 2020
  • Restructured CSR programmes into palm and non-palm income-generating activities to better benefit communities
  • Second independent smallholder group with 75 families and 324 ha of land RSPO certified
  • 4 new villages engaged in social forestry programmes (6 in total)

Governance Achievements

  • Finalisation of revised sustainability policy
  • Alignment to the UN SDGs
  • New Sustainability Steering Committee established
  • Launched new group diversity policy
  • New climate mitigation strategy in development

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2060
Medium-term Goals:
  • Reduce GHG emissions intensity by 30% (2016 baseline) by 2030
  • Install methane capture and biogas facilities at 15 existing palm oil mills by 2029
  • Achieve RSPO certification for all existing mills and estates within one year of receiving land use permits for new mills after 2022 by 2024
  • Support six communities through social forestry partnerships in areas greater than 15,000 ha by 2025
  • 75% reduction in accident rates (2020 baseline) by 2025
  • Increase forest area by 10% by 2025
Short-term Goals:
  • Increase forest cover in conservation areas by 10% (2020 baseline) by 2025
  • Reduce water usage intensity from mill to 1.2 m3/MT FFB by 2023
  • 85% of planted area to be rodenticide-free by 2023
  • 100% traceability of FFB supplied by smallholders and external suppliers by 2023
  • Develop a solid waste reduction policy for our operations and surrounding communities by 2023
  • Breastfeeding facilities available in all operational areas by 2023

Environmental Challenges

  • Deforestation or 0.8% of conservation area was cleared by community activities in 2022
  • 6.5 ha of planted area and 5.9 ha of conservation area were burnt in 2022
  • Water usage intensity was 1.22 m3/ MT FFB (not achieving target of 1.2 m3/MT FFB)
  • 78.9% of planted area was rodenticide-free (lower than target of 85%)
  • Three fatalities in 2022
  • Business relations with one supplier ceased in 2022 due to a breach in policy commitments
  • Whistleblowing uncovered 2 cases of insignificant value related to asset misuse and illegal gratuities by ground staff in 2022
Mitigation Strategies
  • Strictly implementing external sourcing policy
  • Engaging with communities to educate them on commitments and propose collaboration in rehabilitating areas
  • Implementing fire management strategies focusing on prevention, early detection, and quick response
  • Developing a chemical fertiliser reduction programme
  • Investigating causes of fatalities and taking corrective actions
  • Revised due diligence process to identify similar occurrences and prevent non-compliant practices
  • Resolving cases of corruption with concerned parties, resulting in dismissal of culpable employees

Supply Chain Management

Supplier Audits: 100% of known suppliers assessed in 2022

Responsible Procurement
  • Sustainability policy commitments for all suppliers
  • Pre-screening process for new suppliers
  • Annual assessments of existing suppliers
  • Supplier suspension and re-entry criteria

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Drought
  • Flooding
  • Fires
Transition Risks
  • Regulatory changes
  • Market shifts
  • Decreasing revenues
Opportunities
  • Development of energy-efficient products
  • Improved operational efficiencies
  • Reduction of GHG emissions
  • Landscape restoration and conservation-based programmes

Reporting Standards

Frameworks Used: GRI Standards, GRI 13 Sector Standards agriculture indicators, Singapore Exchange Securities Trading Limited (SGX-ST) Sustainability Reporting Guide

Certifications: RSPO, ISPO, ISO 14001

Third-party Assurance: Bumitama’s internal audit department (limited assurance)

UN Sustainable Development Goals

  • 2
  • 4
  • 8
  • 12
  • 13
  • 15
  • 17

Alignment of material topics and targets with selected SDGs is detailed in the report.

Awards & Recognition

  • PROPER awards (3 units)
  • Ranked 3 out of 350 on Forest 500