Climate Change Data

Environmental Metrics

ESG Focus Areas

• Marketplace
• Social
• Environment
• Governance & Responsible Business Practices
• Operational & Resource Efficiency
• Environmental & Social Responsibility in our Supply Chain
• Building Trusting Relationships with Stakeholders
• Health, Safety & Development of our Employees and Communities

Environmental Achievements

• Achieved Green rating (second highest level) in Indonesia’s PROPER program for 4 consecutive years.
• Implemented various energy optimisation projects expected to reduce energy use in future years.
• Installed a 25 kWh solar PV system at Head Office, reducing CO2 emissions by 17 tonnes/year.
• Utilized all biomass residue from palm oil mill for fertilizer/compost or clean energy since 2011.
• Adheres to a “zero discharge” policy by recycling waste and by-products in Plantation Division.
• Average BOD reading for POME during land application falls within allowable discharge limits.

Social Achievements

• Zero Fatality Recorded by all divisions in FYE2018.
• PTNJL awarded ‘Penghargaan Kecelakaan Nihil’ for 39,236,984 man-hours without workplace accidents.
• Percetakan Keselamatan Nasional Sdn Bhd achieved 1,285 days without lost time incidents.
• Offered placements to 23 university graduates through SL1M program.
• Provided 2-month internship program to 56 students from PDD Politeknik Negeri Nunukan.
• Renewed sponsorship of Titian Samara Programme, supporting secondary students.
• 89.8% of contracts for goods and services in Indonesia awarded to small and medium-sized local companies.
• 23.3% of FFB processed by palm oil mill purchased from smallholder farmers.
• PTNJL funds monthly allowance of teachers and imams.

Governance Achievements

• Compliance with laws and regulations relating to health, safety, environment and community impacts.
• Board governs the Company and oversees sustainability approach with dedicated Board committees.
• Group Sustainability Committee steers sustainability activities, chaired by Senior Independent Non-Executive Director.
• Zero-tolerance approach to unethical practices; written agreements include anti-bribery and corruption clauses.
• Implementation of appropriate levels of risk management to ensure compliance with legislation and policies.

Climate Goals & Targets

Environmental Challenges

• ISPO audit on PTNJL on hold pending legal suit outcome.
• High employee turnover in Plantation Division (abscondments and expiry of fixed-term contracts).
• High rate of non-executive employee voluntary departures across divisions (labour mobility).
• Inconsistencies in computation and definition of lost time injuries (addressed with improved methodology).

Mitigation Strategies

• Management does not believe ISPO audit delay will materially affect PTNJL operations.
• Redeployment and retraining of staff where headcount reductions are necessary.
• Improved methodology for computation and definition of lost time injuries.
• Regular Business Improvement Processes (BIP) to improve efficiency and reduce environmental footprint.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Requiring suppliers to meet sound social and environmental standards; establishing trust and long-term relationships; collaborating with suppliers to secure long-term material availability and pursue future opportunities.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Bursa Malaysia’s Sustainability Reporting Framework

Certifications: ISO 14001:2004 (PTNJL), SMK3 (PTNJL)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Contribution through direct business activities, products, taxes paid, employment opportunities, supply chain, and voluntary social investments.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 50 Pembayar Pajak Terbesar Tahun 2017 (PTNJL)

Environmental Metrics

ESG Focus Areas

• Climate Risk
• Water Impact and Waste Management
• Biodiversity and Deforestation
• Human Rights
• Innovation & Technology Excellence
• Occupational Safety, Health and Well-being
• Product Quality and Safety
• Sustainable and Traceable Supply Chains
• Code of Ethics & Governance
• Community Investment

Environmental Achievements

• Reduced GHG emissions intensity (tCO2eq/RM million revenue) from 11.63 to 7.31 in Plantation division
• Reduced GHG emissions intensity (tCO2eq/RM million revenue) from 16.84 to 16.57 in Manufacturing division
• Avoided 212 tCO2eq in FYE2022 through renewable energy use
• Reduced fuel intensity of 3.30 per tonne FFB produced for Malaysian estates (FYE2021: 4.31 per tonne FFB produced)
• Total waste reduced y-o-y from 207,288 MT to 202,970 MT
• 100% MSPO certification achieved for Malaysian estates
• Expanded solar PV capacity by 15 kWp
• 23 rainwater harvesting tanks installed across plantation operations

Social Achievements

• Launched PROTÉGÉ program, training 106 university graduates
• Achieved 97.7% local employment rate
• Zero fatalities and improved LTIFR from 5.33 to 3.46
• Total new hires was 528 (FYE2021: 92)
• Distributed over RM23,000 Zakat Wakalah to employees affected by Covid-19 and floods
• Distributed over RM120,000 Zakat Wakalah to children of eligible employees
• Organised FIMA’s Integrity, Compliance & Risk Virtual Summit Series

Governance Achievements

• Established Escalation Policy for reporting and escalation of incidents
• Integrated ESG targets into Managing Director’s KPI
• Adopted an Anti-Bribery Policy with zero-tolerance approach
• Implemented a Whistle-blowing Policy
• Reviewed and updated Board Charter
• Maintained various ISO certifications (9001, 14001, 14298, 27001, 37001) in Manufacturing division

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (increased fuel, raw materials, and transportation costs)
• Acute labor shortages in the plantation sector
• Climate change impacts (flooding, drought, irregular weather patterns)
• Potential allegations of forced labor
• High cost of fertilizer
• Revenue reversal of RM4.34 million due to High Court decision

Mitigation Strategies

• Developed alternative sourcing strategies
• Intensified mechanization initiatives (Land Surf, Badang)
• Reskilling estate workers
• Strategic investments in resources and infrastructure adaptation
• Close monitoring of resource consumption intensity
• Formalised Child Labour Policy
• Established proper channels to report violations or risks
• Locking in prices through advanced purchase agreements
• Implementing cost-saving measures

Supply Chain Management

Responsible Procurement

• Supporting local procurement (95.9% in Malaysia, 90.9% in Indonesia)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Drought
• Irregular weather patterns

Transition Risks

• Regulatory changes
• Market shifts
• Increased compliance costs
• Investment in new technologies

Opportunities

• Development of energy-efficient products
• Reduced operating costs through greater resource and energy efficiency
• Innovation to improve productivity and drive sustainability efforts

Reporting Standards

Frameworks Used: GRI Standards: Core Option, Bursa Malaysia’s Sustainability Reporting Guidelines, TCFD

Certifications: MSPO, ISO 50001, ISO 14001, SMK3, ISO 9001, ISO 14298, ISO 27001, ISO 37001

Third-party Assurance: Ernst & Young PLT

UN Sustainable Development Goals

• 1
• 2
• 4
• 6
• 8
• 12
• 13
• 14
• 15

See pages 38 and 39 for details

Environmental Metrics

ESG Focus Areas

• Climate Risk
• Occupational Safety, Health & Well-being
• Human Rights
• Anti-Bribery, Fraud & Corruption
• Water Impact & Waste Management

Environmental Achievements

• Increased solar power capacity from 250 kWp to 259 kWp
• Significant reduction (approximately 20%) in water consumption at PTNJL oil mill through decanter machine implementation
• Increased oil extraction rate (OER) by 0.14% at PTNJL oil mill
• Reduced GHG emissions intensity (tCO2eq/RM million revenue) in Plantation and Manufacturing divisions
• Reduced overall energy consumption by 0.3%
• Reduced waste in Plantation and Manufacturing divisions
• Established protected buffer zones along riverbanks totaling 632 hectares for biodiversity conservation
• Implemented sustainable agricultural practices including soil management, biological pest control, and mechanisation

Social Achievements

• 95.0% local employment rate
• Zero reported cases of discrimination
• 100% of employees received performance reviews
• Implemented initiatives to enhance workers' living quarters and estate infrastructure in Indonesian estates
• Established a "Konsultasi dan Komunikasi" platform for engaging with local communities in Malaysian estates
• Conducted 8 engagement sessions with stakeholders in Malaysian estates
• Provided free transportation for workers' children to schools and a company-subsidised crèche at PTNJL estate

Governance Achievements

• Integrated sustainability targets (including climate-related targets) into the MD’s KPIs
• Review of the Terms of Reference for the ARC and RSC to ensure appropriate oversight of sustainability matters
• PKN accredited with ISO 37001:2016 Anti-bribery management system
• All new hires complete anti-bribery training
• Annual attestation by all employees on compliance with Anti-Bribery Policy

Climate Goals & Targets

Environmental Challenges

• Labour shortage
• Increased energy intensity due to higher mechanisation
• High turnover rate in Plantation division due to guest workers returning home
• Increased accident rate
• Liquid wastewater management and high-water consumption in palm oil mill
• Land title matters affecting ISPO certification application for PTNJL

Mitigation Strategies

• Strategic investments in resources and infrastructure adaptation
• Aggressive mechanisation initiatives
• Enhancements to workers' living quarters and estate infrastructure
• Implementing a decanter machine to reduce water consumption and oil loss
• Implementing HIRARC framework for assessing OSH hazards and risks
• Ongoing activities to mitigate health and safety risks, including safety campaigns, drills, and training

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supporting local suppliers and entrepreneurs; inclusion of anti-bribery clauses in all business contracts

Climate-Related Risks & Opportunities

Physical Risks

• Change in rainfall patterns
• Rising average temperatures
• Extreme weather
• Sea conditions

Transition Risks

• Changing societal demand favouring low-carbon products
• Emerging government policies, regulatory and legal changes
• Reputational damage
• Product substitution

Opportunities

• Potential opportunities for developing new “green” products and services
• Reduced operating costs through greater resource and energy efficiency
• Innovation to improve productivity and drive sustainability efforts

Reporting Standards

Frameworks Used: GRI Standards, UN SDGs, TCFD guidelines

Certifications: MSPO, ISO 14001:2015, ISO 50001:2011, ISO 37001:2016, ISO 9001:2015, ISO 14298:2013, SMK3

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 4
• SDG 6
• SDG 8
• SDG 12
• SDG 13
• SDG 14
• SDG 15

The Group aims to use its direct business activities to meet some of the standards set out by the SDGs, especially with regards to manufacturing and sale of products, use of taxes paid by the Company, creation of economic and social value in communities, supporting local supplier development, and reducing the environmental footprint of the business.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Anti-bribery and corruption measures
• Occupational safety, health, and well-being
• Human rights protection
• Effective water and waste management
• Climate Risk

Environmental Achievements

• Surface water consumption decreased by 42.7% in FYE2024 compared to the previous year.
• Group’s solar power capacity increased by 71.9% from 384 kWp to 660 kWp. Renewable energy sources make up 18.4% of the Group’s total energy usage in FYE2024
• PTNJL’s palm oil mill achieved a 41.6% reduction in water intensity for FFB processing compared to the previous year.

Social Achievements

• Employee turnover rate in the Plantation and Manufacturing divisions saw year-on-year reductions compared to FYE2023.
• Zero incidents of human rights violations during the year.
• In FYE2024, 100% of our employees received performance reviews.
• FimaCorp invested RM0.32 million into community initiatives which positively impacted 124 beneficiaries.

Governance Achievements

• Zero incidents of corruption during the year.
• 100% of the group’s operations were assessed for corruption-related risks in FYE2024.
• PKN's successful renewal of their collective agreement with their labour union in May 2023.

Climate Goals & Targets

Environmental Challenges

• Shift in societal preferences towards low-carbon products
• Evolving government policies along with regulatory and legal shifts
• Potential for reputational damage if climate risks are not managed effectively
• Increased accident rate to 26.77 from 15.22 the previous year.
• A fatality at Ladang Fima Aring, Kelantan involving the unauthorised use of a tractor by an estate worker.

Mitigation Strategies

• Dual approach of adaptation and mitigation. This strategy includes initiatives to reduce greenhouse gas (“GHG”) emissions, bolster infrastructure resilience, and drive continuous innovation.
• Investing in mechanisation, improving processes and expanding renewable energy initiatives.
• Accelerating regenerative agriculture programmes.
• Initiated several actions to improve safety protocols and procedures to prevent future accidents.
• Organised a training session focusing on proper tractor operation and safety.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Adhering to ethics and integrity policies
• Regularly updating suppliers on regulatory changes
• Collaborating with suppliers to guarantee a consistent supply of materials
• Identifying improvement opportunities based on audits

Climate-Related Risks & Opportunities

Physical Risks

• Altered rainfall patterns
• Increased average temperatures
• Extreme weather events
• Severe sea conditions

Transition Risks

• Shift in societal preferences towards low-carbon products
• Enhanced emissions reporting and other reporting obligations
• Development of new government policies, regulatory, and legal frameworks
• Potential for reputational harm if climate risks are inadequately addressed
• Substitution of products driven by advancements in technology and new processes
• Increased cost of energy and raw materials
• Changing customer behaviour

Opportunities

• Potential opportunities to develop innovative “green” products and services
• Lower operational costs through greater resource and energy efficiency
• Innovation to improve productivity and drive sustainability efforts

Reporting Standards

Frameworks Used: GRI, UN SDGs, TCFD, MSPO

Certifications: ISO 14001, ISO 50001, ISO 37001, ISO 9001, ISO 27001, MSPO (8 Malaysian estates), SMK3 (PTNJL)

Third-party Assurance: Group Internal Audit

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 4
• SDG 6
• SDG 8
• SDG 12
• SDG 13
• SDG 14
• SDG 15

The Group strategically leverages its business operations to contribute towards these goals with a particular emphasis on the manufacturing and sale of products, the use by host government of the taxes that the Company pays, the creation of economic and social value in the communities where we operate, supporting local supply chains, and reducing the environmental footprint of the business.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed