Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Conservation and management of High Conservation Value (HCV) areas
• Employee attraction, retention, and development
• Fire prevention and management
• Labour conditions and human rights
• Occupational health and safety
• Peatland management
• Protection of High Carbon Stock (HCS) forests
• Supply chain traceability
• Sustainability certification
• Yield and extraction improvements
• Community Engagement & Development
• Business conduct and ethics

Environmental Achievements

• Avoided approximately 180,000 tonnes of carbon dioxide equivalent (tCO2e) of GHG emissions with seven operating methane capture facilities.
• Rehabilitated approximately 26 hectares of HCV area by planting more than 7,900 trees.
• Increased nucleus FFB yield by more than 5% from 2020.
• Cut oil losses during FFB processing by 0.24%.

Social Achievements

• Launched the “Informance” application to provide employees with on-demand feedback.
• Organised a series of informative webinars to inspire and boost the morale of our employees.
• Achieved zero permanent work-related injuries.
• Donated approximately 40,000 sacks of rice worth IDR 1.8 billion to ease the economic burden of communities whose livelihoods were disrupted by the pandemic.
• Donated IDR 4 billion to the Huria Kristen Batak Protestant (HKBP) church organisation.

Governance Achievements

• Continued to disseminate our Code of Conduct to employees, suppliers, and other business partners.
• Maintained 100% traceability to mills (achieved since 2017).
• Achieved 100% traceability to mills for our kernel crushing plants.
• Maintained 100% traceability to plantations for FFB processed at our mills.

Climate Goals & Targets

Environmental Challenges

• Unpredictable surges in COVID-19 caseloads resulted in the periodic reimposition of movement restrictions, disrupting global supply chains and causing labour shortages.
• Some sustainability plans were upended by the volatile COVID-19 situation, especially on the certification front.
• Challenges in achieving 100% traceability to plantations for third-party CPO and PK suppliers.
• Challenges in preventing communities from engaging in small-scale burning on areas within our concessions.
• Lower CPO extraction rate mainly attributed to increased sourcing of FFB from third-party suppliers and a higher proportion of FFB produced by our young palms.

Mitigation Strategies

• Implemented measures to protect the health of our employees by establishing safe working measures aligned with the latest government regulations.
• Established a complementary hotline to address queries related to our COVID-19 protocols, and facilitated the vaccination of all our eligible employees, their families, and the surrounding communities.
• Engaged several motivational speakers and organised informative webinars on stress management.
• Integrated a supplier risk assessment as a key criterion in our onboarding procedure.
• Conducting HCV and HCS trainings for six villages with a total of 116 attendees.
• Implementing replanting programme and further optimising the way we process FFBs.

Supply Chain Management

Responsible Procurement

• Supplier risk assessment
• Written acknowledgement of compliance with Policy on Sustainable Palm Oil
• Traceability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Changes in rainfall pattern
• Drought
• Extreme weather events

Opportunities

• Development of more resilient planting materials

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Standards

Certifications: RSPO, ISPO, ISCC, HACCP, GMP+ B2, Halal, Kosher

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Community Engagement and Development
• Supply Chain Management
• Employee Relations and Workplace
• Climate Change

Environmental Achievements

• Avoided emissions by approximately 213,435 tonnes of carbon dioxide equivalent with eight operating methane capture facilities
• Rehabilitated approximately 24 hectares of HCV area by planting more than 6,300 trees
• Increased nucleus FFB yield by more than 5% from 2021
• Maintained 100% traceability to mills (achieved since 2017)
• Maintained 100% traceability to plantations for FFB processed at our mills (achieved since 2020)

Social Achievements

• Invested in infrastructure, education, and healthcare for the surrounding communities
• Currently support 40 schools
• Have 36 health facilities staffed with qualified medical professionals
• Offered opportunities for locals to be part of the development of our oil palm plantations
• Collaborated with Wilmar and Nestle to conduct a Child Protection Workshop

Governance Achievements

• Continued to disseminate our Code of Conduct to employees, suppliers, and other business partners
• Obtained RSPO certification for another four mills integrated with plantations
• Obtained ISPO certification for four mills (total of 12 certified mills)

Climate Goals & Targets

Environmental Challenges

• Workplace fatalities (highest in recent years)
• Harmonisation of regional and global certification and audit standards
• Potential impact of climate change in worst-case scenario (4.4°C or more temperature rise)
• EU’s planned phasing out of palm oil under RED II and new deforestation-free regulation
• Land rights and compensation complexities in Indonesia

Mitigation Strategies

• Instilling OHS awareness among employees, equipping facilities with OHS equipment, conducting regular health checks, intensifying equipment checks, and enhancing employee capacity building
• Investing in research and development for weather-resilient planting materials and climate change adaptation
• Implementing TCFD recommendations to incorporate climate-related risks and opportunities into strategy, risk management, and financial planning
• Continuing efforts toward certifying operations, achieving full traceability, and achieving zero work-related fatalities and injuries
• Conducting social impact assessments, consulting local communities, and adhering to land acquisition protocols

Supply Chain Management

Supplier Audits: 13 new suppliers screened in 2022

Responsible Procurement

• Sustainable Supply Chain Framework
• Supplier onboarding process
• Sustainability Supplier Assurance Requirement

Climate-Related Risks & Opportunities

Physical Risks

• Increased, erratic, and extreme rainfall events (including drought), coupled with more extreme temperatures

Transition Risks

• Change in customer behaviour
• Changes in investor and shareholder expectations
• Implementation of carbon tax

Opportunities

• Increasing demand for biofuels
• Use of lower emission energy sources
• Resource efficiency

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB Standards, TCFD recommendations

Certifications: RSPO, ISPO, ISCC, HACCP, GMP+ B2, Halal, Kosher

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

• Environmental Management
• Community Engagement and Development
• Employee Relations and Workplace
• Supply Chain

Environmental Achievements

• Avoided emissions by approximately 212,000 tonnes of carbon dioxide equivalent with eight operating methane capture facilities
• Rehabilitated more than 20 hectares of HCV area by planting more than 5,500 trees
• Maintained 100% traceability to mill (achieved since 2017)
• Achieved 100% traceability to plantation for our third-party CPO and PK suppliers
• Obtained RSPO certification for another plantation and two KCPs
• Obtained ISPO certification for another mill integrated with plantation
• Achieved ISCC certification of waste and residues from palm oil mill effluent (POME) oil for six mills

Social Achievements

• Contributed over IDR 25.8 billion to our communities
• Enhanced our child protection guidelines and SOP, prohibiting child labour and upholding children’s right, including child education standards
• Conducted the Talent Development Programme for our estates and mills for High Potential (HIPO) staff
• Organised the First Resources Learning Festival to promote innovation

Governance Achievements

• Continued to disseminate our Code of Conduct to employees, suppliers, and other business partners
• No significant incidents of breaches to the Code of Conduct or cases of non-compliance with laws and regulations in 2023

Climate Goals & Targets

Environmental Challenges

• Four work-related fatalities reported in 2023
• Challenges in engaging with the community and the prevention and management of fires originating outside our concessions
• Land subsidence in peatlands
• Insufficient recording of traceability information from independent smallholders and local dealers

Mitigation Strategies

• Implemented and disseminated enhancements to procedures related to electrical, transportation, and infrastructure management to prevent further occurrences
• Conducted a review of OHS procedures including policies, manuals, and work instructions, to strengthen the Group’s OHS organisation
• Actively collaborate with communities and local authorities, building strong partnerships to manage potential fire risks
• Implementing canal blocking and water gate construction to regulate water levels in peatlands
• Collaborating with stakeholders to map and collect information from independent smallholders supplying to our mills

Supply Chain Management

Supplier Audits: 20 new suppliers screened in 2023

Responsible Procurement

• Sustainable Supply Chain Framework
• Supplier risk assessment
• Sustainability Supplier Assurance Requirement Policy
• NDPE policy

Climate-Related Risks & Opportunities

Physical Risks

• Increased, erratic and extreme rainfall (including drought), coupled with more extreme temperatures

Transition Risks

• Implementation of carbon tax
• Change in customer behaviour
• Changes in investor and shareholder expectations

Opportunities

• Use of lower-emission energy sources
• Resource efficiency
• Increasing demand for biofuels

Reporting Standards

Frameworks Used: GRI Standards, TCFD framework, SASB Standards, SGX Listing Rule 711A and 711B

Certifications: RSPO, ISPO, ISCC, GMP+, HACCP