Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance

Environmental Achievements

• Reduced water consumption by 200,738 m³ with an average water use intensity (IPA) of 1.82 m³/ton of FFB processed.
• Commissioned the first Biogas Power Plant (PLTBg) project in September 2020, providing renewable energy to the PLN grid.
• Improved Sustainability Policy Transparency Toolkit (SPOTT) ranking to 31st from 38th in 2019, with a score of 62.6% (above the average of 41.5%).
• Found 42 orangutans with approximately 2,185 nests through the AMOUR project.

Social Achievements

• Maintained community empowerment programs with positive impacts.
• Employee turnover rate of 2.90%.
• 100% of employees received performance evaluations through Performance Development Review (PDR).
• Provided training for 274 participants in 20 sessions on sustainability principles.

Governance Achievements

• Regular reviews of financial policies managed by the Chief Finance Officer.
• Monthly monitoring of economic performance by the internal audit team, reported quarterly to the Audit Committee and Board of Directors.
• Independent verification of economic performance with an unqualified audit opinion.

Climate Goals & Targets

Environmental Challenges

• Extreme weather causing floods and damaging road infrastructure, disrupting FFB transportation.
• COVID-19 pandemic creating global uncertainties and operational disturbances.

Mitigation Strategies

• Collaborated with local communities to repair road infrastructure.
• Implemented efficiency programs, reducing G&A by 23% YoY.
• Implemented strict COVID-19 prevention and handling measures.
• Continued efforts to improve competence and performance.

Supply Chain Management

Supplier Audits: Environmental and social assessments conducted on local suppliers.

Responsible Procurement

• Compliance with ISPO and RSPO provisions.
• Contracts with local suppliers to meet supporting needs and empower farmers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: POJK No.51/POJK.03.2017, GRI Standards: Core Option, UNGC 10 Principles

Certifications: ISPO (6 operating sites), RSPO (1 operating site)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

CSR programs contribute to various SDGs (details provided in the report).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 48,163 tCO2e compared to 2020 (434,049 tCO2e in 2020 vs 385,886 tCO2e in 2021).
• Reduced water consumption by 16%
• Sukadamai Biogas power plant with a capacity of 2,400 kW began operating, reducing around 24,000 tons of CO2 during 2021.
• Found 52 orangutans with approximately 3,000 nests through the AMOUR project.
• No significant spills (waste/hazardous) during 2021.

Social Achievements

• Maintained community empowerment programs despite the COVID-19 pandemic.
• Assisted the government in mitigating the impact of COVID-19.
• 100% of employees received performance evaluations.
• Implemented a new bonus system to benefit both the company and employees when targets are met.

Governance Achievements

• Provided socialization and training on sustainability principles to the Board of Directors, Board of Commissioners, and all employees.
• Implemented strict health protocols to mitigate the spread of COVID-19.

Climate Goals & Targets

Environmental Challenges

• Global uncertainty and operational disruptions due to COVID-19 restrictions.
• Threat of climate change impacting production performance.
• Two fatal incidents in 2021.

Mitigation Strategies

• Continued implementation of sustainability strategy despite COVID-19 challenges.
• Adjusted strategies such as best management practices for soils and peat, and reuse of oil palm waste (POME and empty fruit bunches).
• Controlled costs and efficiency through divestment of non-strategic subsidiaries.
• Improved safety conditions at work sites and provided refresher training on safety basics.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Engaging local suppliers who meet ISPO and RSPO requirements.
• Conducting environmental and social assessments of local suppliers to ensure no legal violations or encroachment on protected areas.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Core Option, UNGC

Certifications: ISPO (6 sites), RSPO (1 site)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

CSR programs contributed to various SDGs, including health, education, infrastructure, and community development.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Award for Sustainability Performance (Disaster Emergency Response Management in Keerom District)
• Active Respondent in the Plantation Company Survey

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• CO2 emission reductions throughout 2022 amounted to 15,196.88 tons, an increase of 52% from the previous year.
• 100% of effluent can be reused
• 100% of waste originating from production activities can be reused
• Improved assessment of the Sustainability Policy Transparency Toolkit (SPOTT) In 2022, the Company ranked 27 globally. The Company received an average score of 71.6%, an increase from the rank 32 with an average score of 62.2% we received in the previous year.

Social Achievements

• Zero work accident in 2022
• Rp1,228 million of CSR funds allocated
• Zero complaints from communities
• Employee turnover rate in 2022 was 20.18%, a decrease from 28.70% in the previous year.

Governance Achievements

• The Company ensures that there is no family or financial relationships with directors or commissioners, which could otherwise create a conflict of interest.
• In 2022, EHP has 1 RSPO certification and 6 ISPO certifications.
• The Company evaluates its sustainability performance every month by evaluating ESG and economic performance delivery in the current period and the achievement of the targets set in the Company’s Work Plan and Budget.

Climate Goals & Targets

Environmental Challenges

• Weather anomalies due to climate change affected raw material supply from suppliers and product distribution, eventually affecting the Company’s finances as the operating costs increased.

Mitigation Strategies

• Best management practices for soils and peat are carried out by maintaining the groundwater level with dams/sandbags/stop drains in collection ditches and main drains, to keep the groundwater level in optimal conditions (40 cm below ground level).
• Application of palm oil waste (liquid and solid) is carried out by utilizing waste such as empty fruit bunches and Palm Oil Mill Effluent (POME). POME can be reused as a supplement and maintain water supply for oil palm plantations. Meanwhile, empty bunches can be reused as supplements and mulch (moisture- resistant).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ensuring that every supplier has fulfilled the terms of the contract, including clauses related to Indonesia Sustainable Palm Oil (ISPO) certified plantations, in line with the Regulation of the Minister of Agriculture No. 11/2015 and the Roundtable on Sustainable Palm Oil (RSPO).

Climate-Related Risks & Opportunities

Physical Risks

• Weather anomalies

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UNGC, POJK No. 51/POJK.03/2017, SEOJK No. 16/SEOJK.04/2021

Certifications: ISPO, RSPO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

All programs the Company has implemented contribute to achieving eleven SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• PROPER Biru

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Good Corporate Governance
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Reduced emissions by 3.7% in 2023.
• Reused 797,919 m3 of liquid waste and 668,638 tons of solid waste.
• Obtained 8 ISPO certificates and 2 RSPO certificates.
• Maintained groundwater levels using dams/sandbags/stop drains in collection ditches and main drains.

Social Achievements

• Employed 8,742 people from local communities (34.13% increase from the previous year).
• Conducted 14,195 training hours (17 hours per employee).
• Achieved zero fatalities.
• Allocated Rp957 million for CSR programs across 9 districts.

Governance Achievements

• Improved SPOTT score by 4.3% (ranked 5th in Indonesia and 27th globally).
• Implemented a Zero Burning Policy.
• Implemented a comprehensive grievance mechanism.

Climate Goals & Targets

Environmental Challenges

• Fluctuating global and national macroeconomic conditions.
• Declining trends in palm oil production due to El Nino.
• Maintaining a healthy capital ratio.
• Managing various risks, encompassing economic, environmental, social, and governance (ESG) risks.

Mitigation Strategies

• Implemented effective and efficient sales strategies.
• Increased internal yield/ha by 34%.
• Reduced bank loans and non-bank financial institutions by 27.64%.
• Developed an integrated strategy that aligns business targets with ESG performance.

Supply Chain Management

Responsible Procurement

• Supplier selection based on social and environmental criteria.
• All suppliers must agree to and fully commit to the Company’s sustainability policy.
• Traceability of FFB supplies to producers’ estates.

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather
• Plant diseases
• Pests
• Natural disasters
• Land fires

Reporting Standards

Frameworks Used: GRI Standards 2021, ISPO, RSPO, SPOTT, UN Global Compact

Certifications: ISPO, RSPO

Awards & Recognition

• Aditama Charter (Subroto Award for Biogas Power Plant Development)
• CSR award from Kutai Kartanegara Local Government