Climate Change Data

Environmental Metrics

ESG Focus Areas

• Local communities and smallholders empowerment
• Environmental compliance
• Biodiversity and conservation
• Occupational health and safety
• Carbon emission mitigation

Environmental Achievements

• Reduced GHG emissions by 80-90% in mills with biogas plants
• Achieved 100% FFB traceability to plantation by September 2017
• Commissioned seven new biogas plants, reducing mill carbon footprint by 90%
• Achieved ISCC Waste and Residue certification for two mills in North Sumatra

Social Achievements

• Launched “One to One” Partnership Commitment, engaging 101,000 hectares of smallholder land by end of 2018
• Distributed Rp3.69 billion (USD 267,000) to 72 cooperatives representing 30,000 Plasma scheme smallholders
• First ISPO certification for independent smallholders (Amanah Association) in 2017, followed by Bukit Potalo Cooperative in 2018
• Expanded Fire Free Village Programme to 16 villages covering 343,276 hectares

Governance Achievements

• No non-compliance with laws or regulations identified in 2017 and 2018
• Updated Code of Conduct in December 2014 addressing anti-bribery, anti-corruption, and worker welfare
• Implemented a robust grievance mechanism

Climate Goals & Targets

Environmental Challenges

• Legality of FFB sources
• Complexity of tracing independent smallholders in the supply chain
• Price volatility impacting FFB supply from independent smallholders
• Limited technical facilities to support community awareness in Fire Free Village Programme
• Unclear borders impacting fire protection efforts

Mitigation Strategies

• Engaged Meo Carbon Solution and SNV as traceability consultants
• Developed systematic methodology to trace and map new suppliers
• Implemented a yearly quota approach to verify data from independent smallholders
• Continued collaboration with government, NGOs, and industry peers
• Implemented resilience programmes for villages managing fires independently

Supply Chain Management

Responsible Procurement

• Requirement of legal land certificate for suppliers
• Ban on fire clearing
• Corporate Shared Value (CSV) programme providing guidance on plantation management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core options)

Certifications: ISO 14001

Third-party Assurance: SGS Indonesia

Awards & Recognition

• PROPER awards for mills in North Sumatra, Riau, and Jambi

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 17 out of 22 mills have obtained waste and residue ISCC certification for waste and residue management.
• 10 biogas plants generating renewable energy.

Social Achievements

• Launched independent smallholders programme.
• SMILE program collaboration with Kao Corporation and Apical to support independent smallholders.

Governance Achievements

• Code of Conduct updated in December 2019.
• Robust grievance procedure established.

Climate Goals & Targets

Environmental Challenges

• Dry weather conditions affecting production yields.
• Low oil prices.
• COVID-19 pandemic disrupting operations.

Mitigation Strategies

• Implementation of Business Continuity Plan.
• Increased adoption of technology.
• Replanting and cultivation using quality seeds and best agronomic practices.
• COVID-19 taskforce implementing health and safety protocols.

Supply Chain Management

Supplier Audits: Annually

Responsible Procurement

• FFB traceability system.
• Sustainability standards for suppliers.
• Agreements requiring compliance with NDPE and other social and environmental criteria.

Climate-Related Risks & Opportunities

Physical Risks

• Dry weather conditions
• Fires

Transition Risks

• Regulatory changes

Opportunities

• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: RSPO, ISPO, ISCC

Third-party Assurance: SGS Indonesia

UN Sustainable Development Goals

• Not disclosed

Started SDGs prioritisation exercise in 2020; AA2030 project planned.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Zero fires in plantation areas and community for the second year running.
• 100% of mills equipped with waste and residue oil recovery facilities.

Social Achievements

• 100% of employees vaccinated against COVID-19.
• Average smallholder income more than double the provincial minimum wage.
• Zero cases of forced labor or child labor.

Governance Achievements

• No confirmed incidents of corruption in 2021.
• All employees received refresher training on the Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• High cost of fertilizers.
• One grievance regarding non-compliance with environmental laws due to a POME pond embankment break.

Mitigation Strategies

• Fully reapplying empty fruit bunches (EFB) as organic fertilizer.
• Repaired and strengthened the embankment, completed administrative sanctions, offered compensation to affected communities.

Supply Chain Management

Responsible Procurement

• NDPE policy, sourcing policy, supplier compliance statements, traceability requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires

Transition Risks

• Rising fertilizer costs

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: RSPO, ISPO, ISCC, Kosher, GMP+, ISO 9001, ISO 14001

Third-party Assurance: SGS Indonesia

Sustainable Products & Innovation

• Topaz DxP seeds

Awards & Recognition

• Grow Asia case study on effective smallholder partnerships

Environmental Metrics

ESG Focus Areas

• Smallholder Partnership
• Inclusive Growth
• Climate Positive
• Responsible and Sustainable Production

Environmental Achievements

• Maintained zero fire incidents in 2022.
• Achieved 100% FFB traceability to plantations since 2017 and 100% traceability to mills since 2018.
• Equipped all 22 mills with waste and residue oil recovery facilities to separate food-grade and non-food-grade oil.
• Operating 10 biogas plants with methane capture technology, reducing methane emissions by almost 90%.

Social Achievements

• Increased scheme smallholders’ income by 12.8% in Riau and 6.3% in Jambi compared to 2021.
• Supported almost 700 independent smallholders to process RSPO Certification.
• Provided training to approximately 2,000 farmers and representatives.
• Maintained an 80% retention rate for employees and 67% for workers.
• Provided scholarships and vocational training to local communities.

Governance Achievements

• Zero incidents of corruption and anti-competitive behavior in 2022.
• Resolved an outstanding grievance case from 2021 regarding a POME pond embankment.
• All employees adhere to RGE Global Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Climate change risks to palm oil cultivation (rain intensity, dry periods, warmer temperatures).
• Forest fires and transboundary haze during dry months.
• Maintaining high production for smallholders given volatile FFB prices.
• Implementing sustainable agronomic practices among independent smallholders.
• Rising cost of fertilizer.

Mitigation Strategies

• Replanting program with financial assistance, land preparation support, and alternative livelihood options for smallholders.
• Fire Free Village Programme (FFVP) engaging local communities in fire prevention.
• Corporate Shared Value (CSV) program supporting independent smallholders.
• 4C fertilizer stewardship approach (Correct dosage, Correct method, Correct timing, and Correct placement).
• Partial substitution of synthetic fertilizers with EFBs and POME.
• Integrated Pest Management (IPM) and Integrated Disease Management (IDM) approaches.

Supply Chain Management

Supplier Audits: Continuous monitoring of FFB and PK suppliers; site visits and verification of compliance.

Responsible Procurement

• NDPE policy
• Sourcing policy
• Supplier compliance monitoring

Climate-Related Risks & Opportunities

Physical Risks

• Increased or decreased rain intensity
• More intense dry periods
• Warmer temperatures

Transition Risks

• Stringent government regulations
• Increased stakeholder scrutiny on sustainability and climate strategy

Opportunities

• Development of energy-efficient products
• Increased use of renewable energy
• Carbon sequestration through ecosystem restoration

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, GRI Topic Standards, AA1000 Accountability Principles Standards (2018)

Certifications: ISPO, RSPO, ISCC, GMP, Kosher

Third-party Assurance: PT SGS Indonesia

UN Sustainable Development Goals

• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

AA2030 targets align with SDGs; initiatives contribute to poverty eradication, sustainable production, and climate change mitigation.

Sustainable Products & Innovation

• Topaz DxP seeds

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Smallholder Empowerment
• Responsible Supply Chain
• Climate Positive
• Responsible and Sustainable Production
• Inclusive Growth
• Sustainability Governance

Environmental Achievements

• Reduction of over 50% in pesticide usage across operations
• Achieved a higher yield for prime-age palm trees, with an average of about 5.8 tons CPO/Ha
• Completed a feasibility study to build new photovoltaic panels at one of our R&D facilities and installed a new methane capture facility
• Obtained the legal permit for our restoration ecosystem area
• Three entities received the Green Rating for The Public Disclosure Programme for Environmental Compliance at the Ministry of Environment and Forestry
• Achieved zero instances of non-compliance with Indonesian laws and regulations

Social Achievements

• Establishment of SMEs in 35 out of 159 villages
• Provision of training to 1,050 out of 5,000 people
• Distribution of packages to 454 out of 5,000 students
• ISPO certification for scheme smallholders reaching a significant certification rate of 48%
• Assisted with the certification of 839 farmers out of our targeted 5,000 by 2030
• Replanting covered over a quarter of the total planned area
• Increased gross earnings for smallholders in Riau to approximately 1.95 times the provincial minimum wage, and in Jambi to about 1.84 times

Governance Achievements

• No incidents of corruption or anti-competitive behavior
• Achieved zero instances of non-compliance with Indonesian laws and regulations
• Updated Human Rights Policy to better align with national and international standards

Climate Goals & Targets

Environmental Challenges

• Significant climatic challenges, including dry weather conditions triggered by El Niño, adversely affected plantation yields
• Declining yields among smallholders due to aging trees and challenges of harvesting tall palms
• Financial readiness continues to be a challenge for smallholders for replanting
• Reduced availability of FFB resulting from the low crop cycle of 2023 and increased competition from other new palm oil mills

Mitigation Strategies

• Embedding climate change strategies into operations
• Focus on Climate Positive and Responsible and Sustainable Production Pillars
• Proactively aligning practices to meet the stringent requirements set forth by the European Union Deforestation Regulation (EUDR)
• Intensifying efforts in supplier screening and enhancing traceability through digital solutions
• Collaborative commitment from Asian Agri and other stakeholders, including BPDPKS, to drive the realization of replanting efforts
• Broadening our supplier base to address the challenge of each supplier providing a relatively small quantity of PK

Supply Chain Management

Responsible Procurement

• No Deforestation, No Peat, No Exploitation (NDPE) policies
• Sourcing guidelines
• Supplier compliance monitoring
• Due diligence statement for FFB supply by smallholders and outgrowers

Climate-Related Risks & Opportunities

Physical Risks

• Prolonged dry season diminishing crop productivity
• Low amounts of rainfall posing a threat to peatlands

Reporting Standards

Frameworks Used: GRI Standards: GRI 1: Foundation 2021, GRI 2: General Disclosures 2021, GRI 3: Material Topics 2021, GRI 13: Agriculture, Aquaculture, and Fishing Sectors 2022, and the latest GRI Topic Standards, AA1000 Accountability Principles Standards (2018)

Certifications: ISPO, RSPO, ISCC

Third-party Assurance: PT SGS Indonesia

UN Sustainable Development Goals

• SDG 2 (Zero Hunger)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

AA2030 strategy aligns with SDGs through targets across four key pillars: fostering beneficial partnerships with smallholders, supporting community growth, advancing climate protection efforts, and ensuring responsible production practices

Awards & Recognition

• Best Partnership Program at the Palm Oil Smallholders Association (Asosiasi Petani Sawit Inti Rakyat/Aspekpir) Awards 2023
• People’s Palm Oil Replanting Program (PSR) Award for the highest Fresh Fruit Bunch (FFB) productivity
• Green Company Performance Rating Program (PROPER) award for three business units