PT Perusahaan Perkebunan London Sumatra Indonesia Tbk
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:1,197,000 tCO2e/year
Renewable Energy Share:99% of total energy use in palm oil mills
Waste Generated:704,288 tons/year
ESG Focus Areas
- Responsible Sourcing and Certification
- Climate Change and GHG Emissions
- Energy Management
- Water Management
- Employee Health & Safety and Well-being
Environmental Achievements
- 3% reduction in GHG emissions from estate and palm oil mill operations
- 99% of fuel used in palm oil mills is from renewable sources
- 100% of milling waste reused by our estates and mills
- Zero burning for land clearing and replanting
- No primary forest or HCV land was affected during new planting and replanting in 2023
Social Achievements
- Zero fatalities across all operations in 2023
- 88% of our permanent operational employees are registered with a union
- Over 8,000 individuals empowered with tutoring and training opportunities through Rumpin educational centres
- Posyandu healthcare facilities provide vital services to community members
Governance Achievements
- Zero confirmed incidents of bribery and corruption in our operations in 2023
- Executives’ compensation is linked to the achievement of specific sustainability targets
Climate Goals & Targets
Short-term Goals:
- ISPO certification for all nucleus estates and mills by the end of 2024
- 1.5% Energy intensity reduction in 2025 based on 2020 baseline across all oil palm operations
- 2% intensity reduction across all oil palm operations by 2025, based on 2020 baseline
Environmental Challenges
- Climate change impacts such as flooding, water deficit, and fire
- Supply chain disruptions
- Ensuring ISPO certification for all smallholders by 2025
Mitigation Strategies
- Incorporated additional climate-related physical and transitions risks into our detailed ERM framework
- Proactive measures to anticipate and plan for potential supply disruptions
- Support and engagement with smallholders through capacity-building and training programmes, financial assistance for ISPO certification
Supply Chain Management
Supplier Audits: 226 visits, workshops, and audits covering 100% of our mills and their supplying estates
Responsible Procurement
- Sustainable Agriculture Policy
- ISPO certification requirements
- Annual risk assessments
Climate-Related Risks & Opportunities
Physical Risks
- Flooding
- Water deficit
- Fire
- Heatwaves
- Changes in precipitation patterns
- Tropical cyclones
- Heavy rain
- Rising sea levels
- Effects caused by changing environment
Transition Risks
- Carbon tax
- Government Policies / Regulations
- Technology
- Reputation
- Changing consumer behaviour
- Market
Opportunities
- Resource efficiency
- Access to new markets
- Energy sources
- Products and services
- Resilience
Reporting Standards
Frameworks Used: GRI 2021 Standards, TCFD framework
Certifications: ISPO, SMK3, ISO 14001, ISO 45001, ISO 9001
Third-party Assurance: Moores Rowland Indonesia
Sustainable Products & Innovation
- Ganoderma-tolerant oil palm seeds