Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Stewardship
• Social Empowerment
• Good Corporate Governance

Environmental Achievements

• Reduced greenhouse gas emission by 9.9 million tons CO2e in 2019 through conversion to renewable energy.
• Around 50% of the Company’s plasma estates have been RSPO and/or ISCC certified.
• Inaugurated a new integrated laboratory for chemical, microbiological, and molecular analyses.

Social Achievements

• Continued empowerment of 26,000 plasma farmers, covering 52,000 hectares of oil palm plantation.
• Implemented various employee welfare programs, including social security, health insurance, and occupational safety.
• Allocated Rp7.9 billion (14% of the previous year's net profit) for CSR programs focusing on healthcare, education, socio-culture, and infrastructure.

Governance Achievements

• Received the Best Disclosure and Transparency award from the Indonesian Institute for Corporate Directorship (IICD).
• Maintained active communication between the Board of Commissioners and the Board of Directors.
• Implemented various digitalization initiatives to improve decision-making processes.

Climate Goals & Targets

Environmental Challenges

• Low selling prices and oversupply in the global CPO market.
• Prolonged drought in Indonesia.
• Restrictions on palm oil use in the EU.
• Global economic uncertainty due to the US-China trade war.

Mitigation Strategies

• Accelerated intensification measures to improve operational excellence.
• Optimized logistics management to reduce inventory levels.
• Implemented various diversification initiatives (sago, rubber).
• Debt restructuring through bond issuance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Prolonged drought

Transition Risks

• Restrictions on palm oil use
• Changes in global demand

Opportunities

• Increased demand for biodiesel

Reporting Standards

Frameworks Used: GRI, ISPO, ISCC, RSPO

Certifications: RSPO, ISCC, ISPO, OHSAS 18001:2007, ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• DxP Sriwijaya oil palm seeds
• Prima Starch sago products

Awards & Recognition

• Best Disclosure and Transparency (IICD)
• Indonesia Best Issuers Award 2019
• Top 50 Mid Capitalization Public Listed Company (IICD)
• Annual Report Award 2018 (A rating)
• The Best Indonesia Public Company 2019 (Economic Review)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Indirect Economic Impacts
• Procurement Practices
• Water and Effluents
• Biodiversity
• Emissions
• Waste
• Environmental Compliance
• Supplier Environmental Assessment
• Employment
• Labor/Management Relations
• Occupational Health and Safety
• Training and Education
• Rights of Indigenous Peoples
• Local Communities
• Supplier Social Assessment

Environmental Achievements

• Increased CPO production by 11% to 385,120 tons in 2021 compared to 347,407 tons in 2020.
• Improved oil extraction rate from 21.55% in 2020 to 21.92% in 2021.
• Replanting activities on 2,035 ha of land.
• Obtained RSPO, ISCC, and ISPO certifications.
• PT Hutan Ketapang Industri obtained FSC certification.

Social Achievements

• Supported vaccination programs across operational areas.
• Provided medical assistance to Covid-19 patients.
• Continued community development programs (school construction, community livelihoods, scholarships).
• Maintained dynamic engagement with plasma smallholders.
• Increased total employees by 2% to 8,586 in 2021 compared to 8,441 in 2020.

Governance Achievements

• Completed new risk assessment matrix integrating ORM and ERM.
• Improved SPOTT ESG score by 13 points.
• Successfully reduced net debt-to-equity ratio from 98.7% in 2020 to 58.8% in 2021.
• Issued bonds and sukuk ijarah with combined proceeds of Rp569.5 billion.

Climate Goals & Targets

Environmental Challenges

• Pandemic and disruptive weather patterns.
• Limited global supply and high demand for palm oil.
• Global supply chain crisis causing raw material scarcity and price increases.
• Shortage of fertilizer supply.
• La Niña causing prolonged heavy rain disrupting harvesting activities.

Mitigation Strategies

• Prioritized employee safety through Covid-19 vaccination and strict health protocols.
• Strengthened water management, fertilizer application, and plantation infrastructure.
• Anticipated fertilizer shortage through strong relationships with suppliers.
• Implemented digitalization and mechanization initiatives.
• Developed Dashboard Management module and relied on ERP system for remote approvals.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather (La Niña)
• Flooding

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: RSPO, ISCC, ISPO, FSC

Sustainable Products & Innovation

• DxP Sriwijaya oil palm seeds
• Prima Starch sago starch

Awards & Recognition

• Recognition for Excellence in Building CSR Brand Equity from The Iconomics
• Best Role of Stakeholders Top 50 Mid Capitalization Public Listed Company from IICD
• Best Network Transformation Project (Southeast Asia) from CIO Academy Asia
• Special Award from the Governor of West Kalimantan
• Best Taxpayer Award from various institutions

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Continued commitment to No Deforestation, No Peat and No Exploitation (NDPE)
• Implementation of efficiency measures to lower resource consumption, waste production, and greenhouse gas emissions
• Increased RSPO and ISPO certifications across estates and mills

Social Achievements

• CSR programs supporting sustainable livelihoods for local communities
• Supporting plasma farmers with agronomic practices and sustainability certifications
• Improved SPOTT score for three consecutive assessment periods

Governance Achievements

• Adherence to international best practices and standards of corporate governance
• Robust risk management structure integrating operational and enterprise risk management
• Successful issuance of Bonds and Sukuk Ijarah Berkelanjutan

Climate Goals & Targets

Environmental Challenges

• Higher-than-average rainfall impacting fertilization and harvesting
• Global fertilizer shortages
• Fluctuating CPO prices

Mitigation Strategies

• Secured fertilizer supply through long-term partnerships
• Implemented mechanization and intensification programs to improve productivity and efficiency
• Improved financing scheme through bond and sukuk ijarah issuance

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme rainfall
• Drought

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: RSPO, ISCC, ISPO, FSC

Sustainable Products & Innovation

• DxP Sriwijaya oil palm seeds
• Prima Starch sago products

Awards & Recognition

• Indonesia Most Acclaimed CFO Awards 2022
• Indonesia Best CSR Awards 2022
• Indonesia Most Acclaimed Companies Awards 2022
• Sawit Indonesia Award 2022

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Procurement Practices
• Materials
• Energy
• Water and Effluents
• Biodiversity
• Emissions
• Waste
• Supplier Environmental Assessment
• Employment
• Labor/Management Relations
• Occupational Health and Safety
• Training and Education
• Rights of Indigenous Peoples
• Local Communities
• Supplier Social Assessment

Environmental Achievements

• Increased OER to 21.4% in 2023 from 21.0% in 2022
• Intensified use of Empty Fruit Bunches (EFB) to reduce chemical fertilizer usage
• Conversion of Palm Oil Mill Effluent (POME) to biogas for green electricity
• Use of biomass from shells and fibers as boiler fuel, substituting fossil fuels with biodiesel
• Replanting of at least 4,527 hectares (ha) in 2023
• Methane capture facility in two mills supplying electricity to the national grid
• Exploration of natural gas- or electric-powered vehicles
• SPOTT score increased from 66.1 in 2022 to 71.3 in 2023
• Upholding of Forest Stewardship Council (FSC) certification for PT Hutan Ketapang Industri

Social Achievements

• RSPO certification received for two units and external audits completed on six estates (certificates to be received in 2024)
• Intention to certify ten additional units in 2024
• Aim to have all estates fully RSPO-certified by 2027
• Support for plasma farmers through fair treatment, training, mentoring, and guidance
• CSR programs such as integrated mushroom cultivation, climate villages, and honey bee cultivation
• Employee headcount increased by 5% to 9,283 in 2023

Governance Achievements

• Best Equitable Treatment of Shareholders 2023 award from IICD
• No changes to the composition of the Board of Commissioners or Directors in 2023
• Implementation of SIAP SGRO integrated e-plantation module
• Implementation of CARE SGRO application to measure carbon emissions
• Maintenance of Pefindo rating for Obligasi Berkelanjutan and Sukuk Ijarah at idA and idA(sy), respectively

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown, high inflation, and reduced demand from China and Europe
• Geopolitical tensions in Ukraine and the Middle East
• Unfavorable weather conditions, including El Niño-induced drought
• CPO price correction from 2022 peak levels
• Reduced price advantage for palm oil compared to other vegetable oils
• Fluctuating labor availability

Mitigation Strategies

• Proactive increase in CPO sales volume to reduce inventory
• Intensification and mechanization initiatives across estates
• Implementation of SIAP SGRO and CARE SGRO applications
• Exploration of AI and IoT technologies
• Replanting and new planting efforts
• Focus on mitigating drought risks
• Judicious cost management strategies
• Continuous improvement in agronomic practices
• Strengthening of KSP program and expansion of market reach

Supply Chain Management

Responsible Procurement

• Contracts with 37,444 plasma smallholders

Climate-Related Risks & Opportunities

Physical Risks

• Excessive drought
• Torrential rains
• Rising surface temperatures
• Forest fires
• Soil degradation
• El Niño-induced dry weather

Transition Risks

• Changes in regulations related to CPO production and sustainability

Opportunities

• Development of drought-resistant crop varieties
• Increased demand for biodiesel and SAF

Reporting Standards

Frameworks Used: GRI Standards 2022, OJK Circular No. 16/SEOJK.04/2021

Certifications: RSPO, ISCC, ISPO, FSC

Sustainable Products & Innovation

• DxP Sriwijaya oil palm seeds
• Prima Starch sago starch

Awards & Recognition

• Indonesia CSR Brand Equity Award 2023
• Indonesia CSR Awards 2023
• The 14th IICD Corporate Governance Conference & Award
• Indonesia Finance Award-VI 2023
• Sawit Indonesia Award 2023
• ItWorks Top Digital Award 2023
• Indonesia Good Corporate Governance Award VII-2023
• Indonesia Finance Award-V 2023
• Indonesia Enterprise Risk Management Award V-2023
• Indonesia Top Digital PR Award 2023
• Penghargaan Wajib Pajak DJP KPP Pratama Ketapang
• Penghargaan Wajib Pajak DJP Kalimantan Selatan dan Tengah
• Penghargaan KPP Madya Palembang 2023
• Apresiasi Pelestarian Keanekaragaman Hayati 2023
• Penghargaan Kemitraan Kehutanan 2023
• Penghargaan Pengendalian Kebakaran Hutan dan Lahan Tahun 2023
• Penghargaan Tax Gathering 2024