Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Minimising GHG emissions and energy use in line with global climate goals
• Reducing energy use and emissions to reduce costs
• Implementing a zero-burning land clearing policy
• Recycling production waste using the 4R principle (Replace, Reduce, Reuse, and Recycle)
• Using fiber and shells as a substitute for fossil fuels
• Reusing Palm Oil Mill Effluent (POME) as energy
• Obtained ISPO, PROPER, ISO 9001, ISO 14001, Green Industry certifications

Social Achievements

• Supporting economic development and creating positive social impact for communities
• Providing job opportunities for the local community
• Implementing community development programs (PKBL and CSR)
• Improving employee health, safety, and well-being
• Creating an inclusive and diverse culture
• Implementing KMPA program to improve community welfare and prevent forest fires

Governance Achievements

• Implementing Good Corporate Governance (GCG) principles
• Achieving 87.61% in GCG assessment with Excellent predicate
• Establishing an anti-fraud program
• Implementing a whistleblowing system
• Implementing an integrated risk management system

Climate Goals & Targets

Environmental Challenges

• Capacity and capability of employees in implementing sustainable business
• Climate change and weather fluctuations
• Competition for skilled harvesting labor
• High price of materials (including fertilizers and fuel)
• Government regulations and developments
• Price developments in global markets related to palm oil and rubber commodities
• Supply chain disruptions due to geopolitical events and Covid-19

Mitigation Strategies

• Internalizing the concept and practice of sustainable business through knowledge dissemination and awareness
• Actively involving employees in various trainings related to sustainable business
• Implementing organizational efficiency strategies and production costs reduction
• Mitigating risks by early preparation for drought, fire, and flood hazards
• Implementing mechanization and improving employee living facilities to maintain turnover
• Business expansion by developing new land and optimizing the development of community plasma land
• Implementing an integrated security system and CSR to maintain cooperation and good relations with the surrounding community
• Improving efficiency of materials (fertilizers) and optimizing the use of organic fertilizers
• Implementing Environmental Management Systems and improving environmental programs and conservation of water resources
• Centralizing marketing, procurement, research, and other services

Supply Chain Management

Supplier Audits: 100% of suppliers meet sustainable sourcing requirements

Responsible Procurement

• Sustainable sourcing policy
• Prioritization of local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Fire
• Flood

Transition Risks

• Changes in government regulations
• Changes in market conditions

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: ISPO, RSPO, GRI, UNGC, TCFD

Certifications: ISPO, PROPER, ISO 9001, ISO 14001, Green Industry, SNI 6729:2016 (Organic Agriculture), SNI 1903:2017 (Standard Indonesian Rubber), SNI 06-0001:1987 (Conventional Rubber RSS)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

The Company's initiatives contribute to these goals through various programs and policies

Sustainable Products & Innovation

• ImproBioTM organic fertilizer

Awards & Recognition

• PROPER Blue
• Best Listed Company 2022 Awards
• Katadata Corporate Sustainability Awards
• Award for Environmental Management against Karhutla from Musi Banyuasin Regent

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Corporate Governance

Environmental Achievements

• Obtained PROPER Blue Award
• Obtained ISPO certification
• Implemented zero-burning land clearing
• Increased use of organic fertilizers
• Reduced use of paraquat-containing herbicides
• Reduced hazardous waste generation

Social Achievements

• Implemented various CSR programs (51 activities)
• Improved employee training and development
• Supported community development programs (KMPA)
• Maintained high local worker percentage

Governance Achievements

• Corporate Governance implementation score of 85.03%
• Established a whistleblower system
• Implemented an Integrity Pact

Climate Goals & Targets

Environmental Challenges

• Fluctuations in commodity prices
• Geopolitical uncertainties
• Climate change impacts (El Nino)
• Labor turnover in the plantation sector
• Competition for FFB raw materials
• Increased prices of inorganic fertilizers

Mitigation Strategies

• Diversification of strategies
• Strengthening supply chains
• Improving production efficiency
• Implementing early warning systems
• Intensifying FFB production
• Optimizing the use of organic fertilizers
• Restructuring strategy

Supply Chain Management

Supplier Audits: 100% of suppliers met sustainable sourcing requirements

Responsible Procurement

• Sustainable Sourcing Policy
• Prioritization of local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (El Nino)
• Forest fires

Transition Risks

• Changes in regulations
• Market shifts

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 13
• Goal 15

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• ImproBio organic fertilizer
• Biogas from POME

Awards & Recognition

• PROPER Blue Award
• Katadata Corporate Sustainability Award 2023
• Best Listed Company 2022