Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Responsibility
• Community Development
• Good Corporate Governance (GCG)
• Occupational Health and Safety (K3)

Environmental Achievements

• Obtained ISPO certification for PT Mutiara Agam (MAG) until August 3, 2022.
• Allocated 72.8 hectares of river riparian for conservation.
• Received PROPER “BLUE” category award through MAG.
• Implemented waste management system including reduce, reuse, and recycle program.

Social Achievements

• Provided opportunities for local communities to work in the company and supply goods/services.
• Implemented community development programs focusing on economic empowerment, education, health, and infrastructure.
• Provided scholarships, teacher honorariums, classroom repairs, and school bus transportation.
• Supported religious, social, cultural, and sports activities.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown due to trade wars and declining CPO prices.
• Fluctuations in CPO and PK prices.
• Uncertainty over land ownership and permits.
• Climate change risks (shifts in rainfall patterns, droughts, floods).

Mitigation Strategies

• Optimized resources to maintain sustainable growth and shareholder value.
• Focused on cost efficiency strategies across all business processes.
• Implemented risk management framework to identify, monitor, and mitigate risks.
• Complied with sustainable palm oil policies to meet customer requirements.
• Adjusted fertilization and agronomic practices to climate conditions.
• Built infrastructure (e.g., embankments) to mitigate flood risks.

Supply Chain Management

Responsible Procurement

• Using local suppliers for goods and services.

Climate-Related Risks & Opportunities

Physical Risks

• Shifts in rainfall patterns
• Droughts
• Floods

Reporting Standards

Frameworks Used: ISPO

Certifications: ISPO

Awards & Recognition

• PROPER BLUE

Environmental Metrics

ESG Focus Areas

• Economy
• Social
• Environment

Environmental Achievements

• Air emissions monitoring results always below quality standards
• 25% of total waste reused
• Effluent hazardous substance content always below environmental quality standards
• No land fires
• Peat ecosystem sustainability maintained
• 72.8 Ha or 6.4% of plantation rejuvenation program allocated for riparian conservation

Social Achievements

• Zero fatal work accidents
• 19% employee participation in competence development programs
• Lowest permanent employee wages in conformity with Regional Minimum Wage (UMR)
• Values distributed to local communities through CSR programs increased by 8.3%
• Provided 6 school bus units
• Built and repaired 7 public facilities
• Repaired 17 km of village roads

Governance Achievements

• Implementation of sustainable palm oil processing standards based on ISPO
• Received BLUE PROPER recognition from the Ministry of Environment and Forestry of the Republic of Indonesia
• Received Plantation Class Assessment Award from the Office of Agriculture of West Sumatra Province

Climate Goals & Targets

Environmental Challenges

• Limitations in sustainability programs needing adaptation to changing regulations and best practices in the agribusiness sector
• Disruption in economic stability
• Covid-19 pandemic
• Changes in Government policies and regulations

Mitigation Strategies

• Improving operational efficiency and performance
• Conducting operational activities conformity analysis with Government policies related to sustainability
• Improving related employee competence
• Implementing strict health protocols and adequate K3 facilities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Partnership with local suppliers
• FFB purchase from KUD

Climate-Related Risks & Opportunities

Physical Risks

• Shifts in rainfall patterns
• Long drought or high rainfall intensity
• Tides
• Extreme climate events

Transition Risks

• Changes in Government policies and regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: AA1000 Stakeholder Engagement Standard (SES), Indonesian Sustainable Palm Oil Certification System (ISPO), ISO 26000:2010

Certifications: ISPO, PROPER BIRU

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8
• Goal 4
• Goal 9
• Goal 8
• Goal 12
• Goal 13
• Goal 15

The Company's initiatives support these SDGs through economic growth, education, infrastructure development, labor rights, waste reduction, climate change mitigation, and biodiversity conservation.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• BLUE PROPER
• Plantation Class Assessment Award

Environmental Metrics

ESG Focus Areas

• Economy
• Social
• Environment
• Governance

Environmental Achievements

• Reduced paper usage from 145 reams in 2020 to 120 reams in 2022.
• Reduced electricity consumption from 14,446 GJ in 2020 to 8,750 GJ in 2021 and then to 17,335 GJ in 2022.
• Encouraged the use of reusable drinking containers and prohibited single-use plastic bottles during meetings.

Social Achievements

• Ensured fair and competitive remuneration, meeting applicable regulations (lowest permanent employee wages in accordance with Regional Minimum Wage).
• Created a proper, safe, and healthy work environment.
• Improved employee competency and skills through internal and external training programs.
• Provided 90 days of maternity leave and lactation permits for breastfeeding mothers.

Governance Achievements

• Established an Investment Committee in early 2023 to ensure investment activities align with sustainability principles.
• Developed a Code of Conduct covering business ethics, work ethics, and ethics towards external parties.
• Implemented a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Limited sustainability policies and programs.
• Difficulty measuring social and environmental impacts of activities.
• Risk of investing in irresponsible companies that could damage reputation.
• Changes in government policies and regulations.

Mitigation Strategies

• Conducting competency development programs related to sustainability.
• Considering environmental aspects in investment analysis, starting from feasibility studies.
• Analyzing the suitability of operational activities with government policies related to sustainability.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of PEFC-certified paper

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: POJK No. 51/POJK.03/2017

Third-party Assurance: Not disclosed