Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Biodiversity

Environmental Achievements

• Reduced CO2 emissions by 70% and CH4 emissions by 80% at operating units since 2006 through biogas plants and biomass boilers.
• Reduced carbon footprint per MT of refined palm oil produced by 46% (without iLUC) and 40% (with iLUC) from 2004 to 2018. Including nature conservation, the reduction is 54%.

Social Achievements

• Not disclosed

Governance Achievements

• Board-level oversight of climate-related issues.
• Establishment of Group Sustainability Committee (GSC) and Group Sustainability Reporting Team (GSRT).

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: RSPO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Human & Workers’ Rights
• Occupational Safety & Health
• Biodiversity & Conservation
• GHG Emissions, Discharge & Waste Management
• Community
• Legal Compliance
• Product Quality
• Certification for Food Safety, Sustainability and Others

Environmental Achievements

• 60% reduction in GHG emissions since 2004 (achieved in 2021), including iLUC and nature conservation
• All palm oil mills equipped with Biogas Plants for methane capture
• Installation of Biomass Reciprocating Boilers (BRBs) reducing fossil fuel consumption
• 193 MWh of renewable electricity generated in 2022 from photovoltaic cells
• Installation of VORSEP system in all palm oil mills to reduce dust emission

Social Achievements

• No breaches in compliance reported or observed in external and internal audits regarding child labor, forced or trafficked labor, and retention of guest workers' passports
• Establishment of Kingham-Cooper Tree Species Reserve
• Partnership with Copenhagen Zoo for biodiversity conservation
• Addressing community-based land conflicts through a dedicated HUMAS team
• 1392Ha achieved under PLASMA/Scheme for smallholders

Governance Achievements

• Ongoing Annual Sustainability Report Assurance (SRA) exercise
• RSPO P&C certifications for various estates and mills
• ISPO P&C certification for PTSSS
• MSPO Certification for Palm Oil Mills and Estates in UP Malaysia
• Various certifications obtained for Unitata/UniFuji (ISO 9001, HACCP, Halal, KOSHER, BRC, RSPO SCCS, MSPO SCCS, GMP, MESTI, FDA, GMP+B2, MPCA)

Climate Goals & Targets

Environmental Challenges

• Reducing water footprint
• Obtaining HGU permits for the balance area in Indonesia
• Addressing remaining land conflicts

Mitigation Strategies

• Implementing water reduction strategies aiming for 60 gallons/capita/day
• Ongoing efforts to obtain HGU permits
• Dedicated HUMAS team and established land dispute settlement procedure

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: RSPO, ISPO, MSPO

Certifications: RSPO P&C, ISPO P&C, MSPO, ISO 9001, HACCP, Halal, KOSHER, BRC, RSPO SCCS, MSPO SCCS, GMP, MESTI, FDA, GMP+B2, MPCA

UN Sustainable Development Goals

• 3
• 6
• 7
• 8
• 9
• 12
• 13
• 15
• 16
• 17

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Sustainability Governance
• Marketplace

Environmental Achievements

• Reduced GHG emissions per kg of palm oil produced by 63% from 2004 to 2023 (including iLUC and nature conservation).
• Achieved a 60% reduction in GHG emissions per MT of refined palm oil produced by 2025 (including iLUC and nature conservation), four years ahead of schedule.
• Expanded light railway network from 479km in 2015 to 600km as of 31 December 2023.
• Commissioned a new biogas electrification plant.

Social Achievements

• Reimbursed RM24.5 million to Guest Workers for past recruitment fees.
• Provided a goodwill payment of RM3,000 to each of 235 locally recruited Guest Workers.
• Established Ethical Recruitment Procedures with the Employer Pays Principle.
• Continued to provide quality housing and social amenities, including crèches, schools, and healthcare facilities.

Governance Achievements

• World’s first Roundtable on Sustainable Palm Oil (RSPO) certified oil palm producer in 2008.
• Obtained Malaysian Sustainable Palm Oil (MSPO) certification in 2018 and Indonesian Sustainable Palm Oil (ISPO) certification in 2019.
• Ranked No. 3 globally and No. 1 amongst palm oil producers in Malaysia in the ZSL SPOTT assessment 2023 with a score of 95.2%.

Climate Goals & Targets

Environmental Challenges

• Softening palm oil prices due to reduced global demand.
• High costs of energy, fertilizers, chemicals, and building materials.
• Labour shortages (though largely overcome in 2023).
• Risks related to human rights and guest workers.
• Climate change and extreme weather events.
• Deforestation and forest degradation.
• Corruption risks.

Mitigation Strategies

• Focus on raising productivities and cost efficiencies.
• Mechanization initiatives and replanting with superior planting materials.
• Strengthened focus on safety awareness and ESG matters.
• Ethical Recruitment Procedures and remediation of past practices.
• Investments in green technology and renewable energy.
• Collaboration with NGOs and subject-matter experts.
• Implementation of robust governance structures and risk management policies.
• Compliance with new regulations such as the EU Deforestation Regulation (EUDR).

Supply Chain Management

Supplier Audits: 100% of suppliers assessed

Responsible Procurement

• Supplier sustainability requirements
• Code of Conduct
• Responsible Palm Oil Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, droughts)
• Rising sea levels

Transition Risks

• Regulatory changes
• Market shifts
• Higher compliance costs

Opportunities

• Development of energy-efficient products
• Access to markets with strict carbon emissions regulations

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, RSPO, MSPO, ISPO

Certifications: RSPO, MSPO, ISPO, ISCC, myGAP

Third-party Assurance: BSI (limited assurance)

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 17

UP's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• RSPO certified palm oil
• Specialty fats and vegetable oil fractions

Awards & Recognition

• The Edge Billion Ringgit Club Awards (Highest ROE, Best CR Initiatives)
• SPOTT ESG transparency assessment ranking