Climate Change Data

Environmental Metrics

ESG Focus Areas

• Forest Conservation
• Community Engagement
• Yield Improvement
• Environmental Management
• Labor Relations
• Supplier Relations
• Product Quality and Safety

Environmental Achievements

• Achieved CPO yield of 5.26 tonnes per hectare, higher than the Indonesian industry average of 4.14 tonnes per hectare.
• 121,122 hectares of plantations (including 21,418 hectares of smallholder plantations) and 11 mills received RSPO certification.
• 171,586 hectares of plantations, 14 mills, eight bulking stations and three refineries obtained ISCC certification.
• PT Ivo Mas Tunggal received the Company’s first ISPO certification for 9,721 hectares of plantations and one mill in Riau, Sumatra.
• Implemented a 12-month pilot project on HCS forest conservation at PT Kartika Prima Cipta in West Kalimantan.
• Conserving HCS forests in eight concessions covering about 19,000 hectares.

Social Achievements

• Launched Social and Community Engagement Policy (SCEP) in November 2011.
• Launched Yield Improvement Policy (YIP) in February 2012.
• CPO yield of smallholders reached 5.51 tonnes per hectare.
• Provided employment for about 178,000 people in Indonesia.
• Completed construction of 23 Rumah Pintar across plantations.
• Supported 209 schools educating 35,781 students.
• Implemented Sekolah SMART programme in 19 elementary schools and five junior high schools.

Governance Achievements

• Complied substantively with the principles and guidelines set out in the Code of Corporate Governance 2005 issued by the Monetary Authority of Singapore.
• Established Nominating, Remuneration and Audit Committees.
• Zero tolerance policy towards improper payments and corruption.

Climate Goals & Targets

Environmental Challenges

• Deforestation concerns from stakeholders.
• Community conflicts related to land and estate management.
• Increased herbicide use due to favorable weed conditions and labor shortage.
• Fatalities (6 in 2012) related to traffic accidents and workplace incidents.

Mitigation Strategies

• Implementation of Forest Conservation Policy (FCP) with TFT.
• Multi-stakeholder collaboration to resolve conflicts (e.g., with TFT).
• Research and adoption of breeding methods to reduce pesticide use.
• Thorough investigations of accidents to uncover causes and develop enhanced safety measures.
• Continued efforts in training and refresher programmes on safety.

Supply Chain Management

Responsible Procurement

• Supplier selection based on legal and commercial requirements (legal compliance, tax compliance, certification of competence).
• Transparent procurement process with tendering for purchases above Rp1 billion.
• Fair treatment of suppliers, including prompt payment of bills.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Application Level B, AA1000 principles

Certifications: ISO 9001-2008 (SMARTRI and analytical laboratory), ISO 17025 (analytical laboratory)

Awards & Recognition

• Most Transparent Companies in 2012 (Securities Investors Association, Singapore)
• Gold Standard Award for Communicator of the Year (PublicAffairsAsia)
• Primaniyarta award (Ministry of Trade, Indonesia)
• Awards for Filma cooking oil brand (Kartini magazine, PT MARS Indonesia, SWA magazine)

Environmental Metrics

ESG Focus Areas

• Forest Conservation and Biodiversity Protection
• Rights of communities and indigenous peoples
• Labour relations and Human rights; Occupational Health and Safety and Employee wellbeing
• Traceability and supply chain transformation; Supplier inclusiveness and smallholder livelihoods
• Yield improvement
• Product quality and safety
• Greenhouse Gas Emissions Reduction
• Water Management
• Waste Management
• Social and Community Engagement
• Sustainable Palm Oil Certification

Environmental Achievements

• 99.95% of SMART area NOT affected during challenging fire season
• Released 8 orangutans under renewed programme with Orangutan Foundation International (OFI)
• 8,100 ha conservation area (HCV/HCS)
• Reduced GHG emissions through methane capture and composting
• 100% recycling of waste from the CPO production process

Social Achievements

• No incidents of FPIC violations or violations of rights of indigenous peoples in 2019
• No significant incidents of discrimination or abuse reported in 2019
• Number of fatalities decreased year-on-year
• 78% of palm supply chain fully traceable
• Launched Ksatria Sawit programme to accelerate TTP
• Annual SMART Seed and SMART Sustainable Palm Oil Training (SPOT) supplier workshops
• Supported schemes for over 3,800 independent smallholders
• Provided educational and healthcare facilities to communities
• Disaster relief aid for 2,000 victims of natural disasters

Governance Achievements

• Established Grievance Procedures to ensure responsiveness to grievances
• Resolved 11 new and 2 older grievances
• Full compliance with Indonesian labour laws
• Equal opportunities policy on employment, banning discrimination
• Zero tolerance for sexual harassment

Climate Goals & Targets

Environmental Challenges

• Challenging fire season in Indonesia due to warmer and drier climate conditions
• Administrative sanction from Indonesian authorities related to downstream operations at Tarjun

Mitigation Strategies

• Strengthened fire mitigation and fire-fighting procedures
• Focus on strengthening fire prevention and mitigation procedures in villages participating in DMPA
• Implemented corrective actions and resolved the matter with Indonesian authorities

Supply Chain Management

Supplier Audits: Site visits and assessments of Tier 1 and Tier 2 suppliers

Responsible Procurement

• GSEP commitments
• Training on traceability, responsible labour practices, and human rights
• Social Impact Assessments

Climate-Related Risks & Opportunities

Physical Risks

• Fire season

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, RSPO, ISPO, ISCC, UN SDG

Certifications: ISO 9001:2015, ISO 17025, ISO 22000, ISCC, RSPO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 2
• SDG 12
• SDG 15

Not disclosed

Sustainable Products & Innovation

• High oleic palm oil

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable palm oil production
• Zero Hunger (SDG2)
• Responsible Consumption and Production (SDG12)
• Life on Land (SDG15)

Environmental Achievements

• 99.98% of SMART area NOT affected by fire during dry season
• Reduced emissions by about 17,230 tCO2eq through composting
• Achieved 90% full traceability at the end of 2020

Social Achievements

• Launched children’s education programme on fire prevention through virtual workshops for 400 teachers and podcasts reaching 700 participants
• Released 3 more orangutans under programme with Orangutan Foundation International (OFI)
• No incidents of discrimination or abuse reported in 2020
• Supported 100% of plasma smallholders
• Supported Independent Farmers Replanting scheme and a range of other programmes for independent smallholders

Governance Achievements

• Successfully completed the issuance of its public offering of SMART Shelf-Registered Bond II totalling Rp 3 trillion
• Reinforced the Company’s Code of Conduct principles including our stance against corruption and bribery with our employees
• No significant cases of bribery or corruption were identified during 2020

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing logistic challenges and a steep drop in CPO prices
• Movement restrictions imposed due to the pandemic hampering Traceability to the Plantation (TTP) process
• Number of fatalities involving contractors increased
• Unprecedented volatility in palm oil prices

Mitigation Strategies

• Leveraging technology and virtual tools to continue implementing the GSEP
• Making allowances for some suppliers trying to complete the TTP process but hampered by the inability to conduct fieldwork
• Continuing to strengthen fire mitigation procedures
• Continuing to work with communities on long-term fire prevention through DMPA
• Instilling awareness of OHS and safe practices in all operations and amongst contractors

Supply Chain Management

Supplier Audits: 30 remote assessments

Responsible Procurement

• Traceability to the Plantation (TTP)
• GAR Social and Environmental Policy (GSEP)
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Excessive rainfall
• Extensive period of dry weather
• Fire outbreaks

Transition Risks

• Changes in regulation by the Indonesian Government and/or importing countries
• More stringent environmental regulations

Reporting Standards

Frameworks Used: GRI, RSPO, ISCC, ISPO

Certifications: ISO 9001, ISO 17025, ISO 22000, FSSC, KOSHER, GMP+B2, RSPO, ISCC, Halal

UN Sustainable Development Goals

• SDG 2
• SDG 12
• SDG 15

The company's initiatives contribute to these goals through sustainable palm oil production, responsible consumption and production, and the protection of life on land.

Sustainable Products & Innovation

• Eka 1 and Eka 2 planting materials
• Low 3-MCPD refined products
• High oleic palm oil hybrid

Awards & Recognition

• Iconomics Emiten Award 2020
• Top CSR Awards 2020 #Star 5
• Indonesia Most Admired Companies by Warta Ekonomi

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by over 6% compared to the previous year (1,251,042 tCO2eq Scope 1 and 163,048 tCO2eq Scope 2 in 2021)
• 99.96% of SMART area not affected by fire in 2021
• 100% recycling of waste from the CPO production process
• Reached agreement to conserve 43,000 hectares of forests
• 11 mills achieved Blue rating in PROPER assessment

Social Achievements

• Launched 60 community economic empowerment projects
• Helped over a hundred thousand people get vaccinated
• No incidents of discrimination or abuse reported in 2021
• Around 118,000 smallholders registered under the TTP Ksatria Sawit programme
• Provided free healthcare and other benefits to employees

Governance Achievements

• Received the 12th IICD Corporate Governance Award 2021 for Most Improved category
• Complied with all borrowing covenants
• Implemented a strict Code of Conduct and whistleblowing procedure

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (extreme weather, droughts, fires)
• Pest outbreaks
• Supply chain disruptions
• Foreign labor shortages in Malaysia
• Under-fertilized smallholder plantations

Mitigation Strategies

• Implemented various measures to reduce the impact of weather conditions (drainage, irrigation, roads, planting patterns)
• Implemented integrated pest management
• Strengthened internal transportation infrastructure
• Developed a strategy on GHG emissions reduction
• Engaged actively with suppliers to improve traceability and sustainability

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• GAR Social and Environmental Policy (GSEP)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Droughts
• Fires

Transition Risks

• More stringent environmental regulations

Opportunities

• Development of climate-resilient planting materials

Reporting Standards

Frameworks Used: POJK 51

Certifications: RSPO, ISCC, ISPO

Third-party Assurance: Mirawati Sensi Idris Public Accountant Firm (an independent member of Moore Global Network Limited); PT Lloyd’s Register Indonesia (for GHG emissions)

UN Sustainable Development Goals

• SDG 2
• SDG 12
• SDG 15
• SDG 17

Initiatives contribute to sustainable agriculture, responsible consumption and production, protection of terrestrial ecosystems, and partnerships for the goals.

Sustainable Products & Innovation

• Low 3-MCPD refined products
• Low GE refined products

Awards & Recognition

• Indonesia Best CSR with Outstanding Program in Forest Conservation
• 12th IICD Corporate Governance Award 2021