Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Community development
• Human rights
• Responsible development

Environmental Achievements

• Achieved two Gold PROPER awards (SMM and ANJA) and two Green PROPER awards (ANJAS and KAL) from the Ministry of Environment and Forestry.
• 50-60% of energy use in palm oil mills from renewables.
• Composting and inorganic fertilizer initiatives estimated to save over USD 13.2 million yearly.
• Improved CDP assessment scores (A- for Climate Change, A- in Forest, B for Water).

Social Achievements

• Distributed Certified Palm Oil Sales Premiums to smallholder farmers (KAL and SMM).
• Supported Ministry of Villages at the “Sago Activists Training”.
• Graduation of 50 vocational students (SMM and Ministry of Industry collaboration).
• Graduation of 18 preschool students (ANJ and Alirena collaboration).
• University of Indonesia study found ANJ's presence reduced unemployment and poverty in Southwest Papua.

Governance Achievements

• Improved ASEAN Corporate Governance Scorecard by 12.17 points, achieving an overall score of 99.74.
• Sustainalytics ESG Risk Rating of 18.3 (low risk), ranking first out of 95 global agricultural companies.
• SPOTT score of 91.1%, the highest-ranked Indonesian-owned company.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the war in Ukraine and fertilizer shortages.
• Revocation of forestry area approval in Southwest Papua (SK01 decree).
• Extreme weather events (flooding) impacting operations.
• Poor worker productivity and equipment maintenance in the sago business.
• Inadequate infrastructure in Southwest Papua.

Mitigation Strategies

• Investment in composting and fertigation schemes.
• Securing large fertilizer volumes at the start of the year.
• Engaging with relevant ministries to retain concessions.
• Fast-tracking infrastructure projects (road laterization, river embankments).
• Replacing key personnel in the sago business.
• Implementing measures to increase external FFB purchases.

Supply Chain Management

Responsible Procurement

• RSPO/ISPO certified palm oil
• Sustainable sourcing practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, rainfall)
• Forest fires

Transition Risks

• Changes in government policies
• Shifting market demand for palm oil

Opportunities

• Development of energy-efficient products
• BioCNG project
• Carbon market opportunities

Reporting Standards

Frameworks Used: RSPO, ISPO

Certifications: RSPO, ISPO, ISO 14001, ISO 45001, SMK3, ISCC, BRC, ISO 22000, Halal

Third-party Assurance: Siddharta Widjaja & Rekan (KPMG network)

Sustainable Products & Innovation

• Edashi (frozen edamame)
• Sago starch products

Awards & Recognition

• Golden Champion in Corporate Social Responsibility Program Category (BISRA)
• Indonesia Excellence GCG Awards 2022
• The 1st Indonesia DEI & ESG Awards 2022
• Corporate Emission Transparent Awards 2022
• Green Economy Award for "Sistem Tanam Sapu Tangan Jarwo"
• Award in Internal Process Category on "Responsible Development Program"
• Environmental and Social Innovation Award (ENSIA)
• ESG Disclosure Awards 2022: Leadership Predicate A
• Outstanding Achievement Award (RSPO)
• Jember Tax Award 2022
• GOLD PROPER (ANJA and SMM)
• Green PROPER (ANJAS and KAL)
• PARITRANA Award of West Papua Province (PMP)

Environmental Metrics

ESG Focus Areas

• GHG Emissions and Carbon Footprint
• Protecting Forests and Biodiversity
• Working Conditions
• Labor rights
• Local communities
• Prosperity and inclusive growth
• Supply Chain Practices

Environmental Achievements

• 83.8% decrease in GHG emissions from 2015 baseline
• Reduced net GHG emission intensity for Palm Oil to 0.66 Ton CO2eq/Ton CPO produced
• Increased renewable energy portfolio to 43%
• Reduced water use intensity to 0.971 ton of water for each ton of FFB processed
• Zero major fire incidents and no deforestation
• Completed phase 3 of integrated fire management infrastructure

Social Achievements

• 86% of plasma and smallholder partnerships are now RSPO/ISPO certified
• Zero grievances and findings related to forced labor, human trafficking and child labor issues
• Zero working fatalities in 2023
• Successful completion of plasma certification project in Belitung
• Implementation of electronic traceability system, eTIS, in 100% of oil palm operations and those of suppliers
• Achieved 100% traceability of FFB from 3rd parties

Governance Achievements

• SMM and ANJA secured the Gold PROPER award for outstanding environmental management and social innovation
• ANJAS and KAL attained the Green PROPER award
• Improved SPOTT score from 91.1% in 2022 to 93.3% in 2023
• 15% of management performance linked to ESG initiative targets

Climate Goals & Targets

Environmental Challenges

• Ongoing El Niño causing extreme weather and reduced yields
• Market volatility and competition in the Indonesian palm oil industry
• Forthcoming regulatory measures in importing countries (EUDR, RED II)
• Concerning adherence to ANJ’s values in several events
• Two fatalities among contractors
• Heat stress among plantation workers

Mitigation Strategies

• Reinforced ANJ’s core values through improved values training and a values champions retreat
• Focus on re-training staff on Occupational Health and Safety (OHS) and investing in schemes to improve safety awareness among contractors
• Developing systems to ensure adequate hydration and opportunities to seek shade and respite from the heat for plantation workers
• Critically reviewed existing strategies, programs and initiatives
• Increased investment in strengthening internal processes
• Investing in flood and fire prevention systems, community-based farming programs, livelihood enhancements, forest and biodiversity protection, and emissions reduction initiatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainability Policy compliance
• Code of conduct
• Integrity Pledge
• RSPO certification

Climate-Related Risks & Opportunities

Physical Risks

• Soil moisture and productivity reduction
• Pollination disruption
• Drought and wildfire impact
• Rainfall intensity and flooding
• Pollution aggravated by drier conditions

Transition Risks

• Evolving regulatory landscape
• Consumer expectations

Opportunities

• Agronomic innovations
• Renewable energy solutions
• Methane capture

Reporting Standards

Frameworks Used: GRI Standards

Certifications: RSPO, ISPO, ISCC

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• SDG 13 (Climate Action)
• SDG 7 (Affordable and Clean Energy)
• SDG 15 (Life on Land)
• SDG 6 (Clean Water and Sanitation)
• SDG 8 (Decent Work and Economic Growth)
• SDG 5 (Gender Equality)
• SDG 4 (Quality Education)
• SDG 1 (No Poverty)
• SDG 2 (Zero Hunger)

ANJ’s sustainability initiatives contribute to these goals through emissions reduction, renewable energy use, biodiversity conservation, water management, job creation, community development, gender equality, education, and poverty alleviation.

Sustainable Products & Innovation

• Compost
• Eco-enzymes
• Biogas

Awards & Recognition

• Gold PROPER award (SMM, ANJA)
• Green PROPER award (ANJAS, KAL)
• Outstanding Achievement Award at the RSPO Excellence Awards (PENDAKI)