Environmental indicators

Indicator | Disclosure |
---|---|
Greenhouse gas (GHG) reduction targets |
The Group has set GHG emission reduction targets in line with reaching net zero by 2050 and limiting global warming to 1.5 °C. Our GHG reduction targets (all against 2021 baseline) are:
|
Methane capture |
The Group had five mills in operation in 2022, of which four are equipped with methane capture facilities. |
GHG calculation standards |
We use the GHG accounting tools and guidance of the GHG Protocol and the guidelines of ISO 14064-1 to calculate Group emissions, incorporating scope 1, 2 and 3 emissions. We also calculate GHG emissions from our palm oil mills and associated estates using RSPO standard (PalmGHG calculator v4) and International Sustainability and Carbon Certification standard (ISCC EU 205 tool). |
Scope 1 and 2 emissions |
The Group’s scope 1 and 2 emissions for 2022 were 117,344 tCO2e (including energy consumption by our offices, palm oil estates and mills, emissions from POME, application of EFB and fertiliser, and excluding historical land-use change, emissions from peat, and carbon sequestration). |
Scope 3 emissions |
The Group’s scope 3 emissions for 2022 were 2,275,183 tCO2e (95% of Group emissions in 2022), including all applicable Scope 3 categories (12 of the 15 GHG Protocol Scope 3 categories are applicable to the business). Of our scope 3 emissions, 87% come from the further processing of the products that the Group sells (category 10). |
Emissions from land-use change |
Emissions from land-use change will be incorporated into our Group emissions once the GHG Protocol Land Sector and Removals Guidance has been finalised and published. For now, our emissions from land-use change are measured separately using RSPO GHG calculator. In 2022, historical land-use change accounted for the emissions of 319,465 tCO2e. Meanwhile, the oil palms in our plantations absorbed an estimated 367,494 tCO2e. |
Reduction in GHG emissions |
Absolute Group emissions reduced by 12% (from 2.7 million tCO2e in 2021 to 2.4 million tCO2e in 2022). The reduction is largely attributed to a decrease in the volume of FFB sent to external mills for processing. The Group’s total Scope 1 and 2 emissions reduced by 3.8% in 2022 (from 124,899 tCO2e in 2021 to 117,344 tCO2e in 2022). GHG emissions intensity from our mills and associated estates reduced by 3% from 2.63 tCO2e per tonne CPO in 2021 to 2.55 tCO2e per tonne CPO in 2022 (RSPO PalmGHG calculator). |
All information is for year ended December 2022
Group GHG emissions
Scope1 | Units | 2022 | 2021 |
---|---|---|---|
Scope 1 (direct) | tCO2e | 116,829 | 124,520 |
Scope 2 (indirect) | tCO2e | 515 | 379 |
Scope 3 (indirect) | tCO2e | 2,275,183 | 2,594,416 |
Total | tCO2e | 2,392,527 | 2,719,315 |
1Scope 1, Scope 2 and Scope 3 emissions (CO2, CH4 and N2O emissions) are calculated using guidance of the GHG Protocol applying the operational control approach.
Group scope 3 emissions
Category | Units | 2022 | 2021 |
---|---|---|---|
1. Purchased goods and services | tCO2e | 173,597 | 159,772 |
2. Capital goods | tCO2e | 4,088 | 2,521 |
3. Fuel-related emissions | tCO2e | 4,081 | 4,207 |
4. Upstream transportation and distribution | tCO2e | 15,787 | 7,869 |
5. Waste generated in operations | tCO2e | 1,955 | 1,472 |
6. Business travel | tCO2e | 783 | 962 |
7. Employee commuting | tCO2e | 4,947 | 4,126 |
8. Upstream leased assets | tCO2e | N/A | N/A |
9. Downstream transportation and distribution | tCO2e | 13,246 | 28,034 |
10. Processing of sold products | tCO2e | 1,980,520 | 2,321,314 |
11. Use of sold products | tCO2e | 32,868 | 26,936 |
12. End-of-life treatment of sold products | tCO2e | 39,536 | 33,361 |
13. Downstream leased assets | tCO2e | N/A | N/A |
14. Franchises | tCO2e | N/A | N/A |
15. Investments | tCO2e | 3,775 | 3,843 |
Emissions from palm oil mills and associated estates 2022 (PalmGHG)2
Sources of emissions | Units | |
---|---|---|
Third party | tCO2e | 578,970 |
Land conversion | tCO2e | 319,465 |
Peat oxidation | tCO2e | 240,688 |
POME | tCO2e | 89,128 |
CO2 emissions from peat | tCO2e | 32,999 |
CO2 emissions from fertiliser | tCO2e | 23,043 |
N2O emissions from fertiliser | tCO2e | 21,602 |
Fuel consumption | tCO2e | 8,327 |
Credits |
||
Export of excess electricity to housing and grid | tCO2e | -19,214 |
Sale of PKS | tCO2e | 0 |
Sale of EFB | tCO2e | 0 |
Emission sinks |
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Crop sequestration | tCO2e | -367,494 |
Sequestration in conservation area | tCO2e | -10,501 |
Absolute emissions |
tCO2e | 1,314,222 |
Net emissions |
tCO2e | 917,014 |
2RSPO PalmGHG calculator
- our TCFD report 2022
- the sustainability section of the Group’s 2022 Annual report
- the GHG emissions page of the Group’s website
- the Biogas generation page of the Group’s website
Indicator | Disclosure |
---|---|
Zero deforestation and no conversion of natural ecosystems |
The Group is committed to ensuring that the palm oil we produce does not cause or contribute to the conversion of forests or any other natural ecosystems (including peatland, riparian ecosystems, and wetlands). We adopt RSPO criteria, meaning that since 2005, oil palm is not grown on land with undisturbed forest or areas required to protect or enhance HCVs, and any new planting since November 2018 does not damage High Carbon Stock (HCS) forest, or peatland of any depth. The same criteria applies to our suppliers. Any deforestation or conversion after November 2018 in our own operations or in our supply chain will be deemed as being non-compliant with our policy. |
Biodiversity commitments and targets |
The Group commits to restore, maintain, and enhance biodiversity in the areas where it operates, including in areas of plantations and conservation areas. Where appropriate, we will contribute to protect biodiversity in the surrounding landscape and seek to engage in a landscape program to support this effort.
We are committed to:
|
Area set aside for conservation |
The area in our concessions set aside for conservation has increased from 3,300 Ha in 2019 to 4,777 Ha in 2022. |
IUCN Redlist species |
The Group engages with provincial universities or local consultants to survey the presence of rare, threatened, and endangered species (against widely used systems of classifications such as the IUCN Red List, the Convention on International Trade in Endangered Species (“CITES”) Appendices and the national protected species lists). |
Ecosystem restoration and rehabilitation |
The Group is committed to suitably address any losses of HCV, forest or other natural ecosystems by rehabilitation, restoration or compensation. We are currently undertaking forest restoration projects at our concessions in Bangka and South Sumatra. |
All information is for year ended December 2022
Indicator | Units | 2022 | 2021 |
---|---|---|---|
Conservation area | Hectares | 4,777 | 4,056 |
IUCN Red List Species by category |
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Least concern | Number | 512 | 582 |
Near threatened | Number | 66 | 74 |
Vulnerable | Number | 44 | 45 |
Endangered | Number | 18 | 14 |
Critically endangered | Number | 6 | 2 |
- The Conservation and biodiversity page of the Group’s website
Indicator | Disclosure |
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Zero-burning policy |
The Group enforces a zero-burning policy of no open burnings and no use of fire for the clearing of land or as a method for domestic waste disposal in all concessions. The same commitment is extended to our suppliers. |
Fire preparedness, monitoring and response procedures |
The Group continues to invest in and maintain adequate firefighting capacity at locations that are at risk of fires. We operate a fire watch from watch towers on all our estates and promptly investigate hotspots that are identified within and around Group companies’ concessions by satellite monitoring systems. A report is made to the RSPO and, where evidence of fire is found, if appropriate, to the police. |
Occurrence of hotspots and fires in and around concessions |
There were no fires inside concession areas in 2022. Satellite monitoring detected 19 hotspots in and around company boundaries in 2022, a considerable increase from the four hotspots detected in 2021. Ground verification confirmed eight fires (seven in Musi Rawas, South Sumatra and one in Kutai Timur, East Kalimantan). All cases of fires were outside of company boundaries and the cause of each fire was deliberate burning by landowners from local communities to clear the land that they own. All fires were reported to RSPO and relevant authorities. |
All information is for year ended December 2022
Indicator | Units | 2022 | 2021 |
---|---|---|---|
Hotspots detected inside concession boundaries | Number | 4 | 1 |
Hotspots detected outside concession boundaries | Number | 15 | 3 |
Fires occurring inside concession boundaries | Number | 0 | 0 |
Fires occurring outside concession boundaries | Number | 8 | 2 |
- The sustainability section of the Group’s 2022 Annual report
Indicator | Disclosure |
---|---|
No new planting on peat |
The Group adopts RSPO criteria meaning that since November 2018, we do not allow any new development on peat regardless of depth. The same commitment applies to our suppliers. |
Management of cultivated peatland |
The Group acknowledges that there is a small proportion of its planted area developed on peat prior to the introduction of a no planting on peat policy. Where we have oil palm on peat, we use best management practices as per RSPO guidelines to manage and monitor water levels and measure soil subsidence. This commitment to best management practices for soils and peat also applies to our suppliers. |
Fertiliser and composting |
Compost is produced from the organic waste from our mills and is applied to cultivated land to assist in improving soil quality, and consequential crop yields. |
Integrated pest management |
The Group manages pests, diseases, weeds and invasive non-native species using appropriate integrated pest management (IPM) techniques, so that any use of pesticide is minimised or eliminated where possible. The Group prohibits the use of paraquat and we are reducing and phasing out the use of other pesticides in favour of safe and cost-effective alternatives. We ensure that our workers are sufficiently trained and equipped for the safe handling of pesticides and undergo regular medical check-ups. |
All information is for year ended December 2022
Indicator | Units | 2022 | 2021 |
---|---|---|---|
Compost | Tonnes per hectare | 4.77 | 5.65 |
Inorganic fertiliser | Tonnes per hectare | 0.89 | 0.88 |
Herbicide | Litres per hectare | 1.46 | 1.58 |
Pesticides | Litres per hectare | 1.23 | 0.67 |
Area of oil palm on peat | Ha | 4,637 | 4,637 |
Indicator | Disclosure |
---|---|
Water use intensity |
In 2022, we achieved our target of limiting water use by our mills to less than 1.1.m3 water per tonne FFB. We continue to promote rainwater harvesting in housing that we provide to employees and workers as a way to reduce domestic water use. |
Water quality |
The Group is committed to protect the water quality of water courses and natural water bodies in concession areas. Effluent is never discharged into rivers or watercourses and any water discharged by the group is kept well below the statutory threshold for biological oxygen demand (BOD) and chemical oxygen demand (COD). Biogas facilities and Composting systems are in place to utilise mill effluent. |
Riparian reserves |
The Group complies with applicable national regulations for riparian management and follows the RSPO Manual on Best Management Practices for the Management and Rehabilitation of Riparian Reserves. We are committed to ensure the existence of riparian reserves and promote the growth and conservation of natural vegetation alongside all water courses and water bodies in concession areas. |
PROPER1 |
PROPER is a program of the Indonesian Ministry of Environment and Forestry (KLHK) to promote good environmental management. In 2022, one of our mills (Bumi Permai mill) achieved the Green category PROPER award while three other mills (Pangkatan, Tengkalat and Rahayu) secured blue status. |
All information is for year ended December 2022
Indicator | Units | 2022 | 2021 |
---|---|---|---|
Mill water use | m3 per tonne ffb processed | 1.0 | 1.2 |
Pollution complaints | Number | 0 | 0 |
PROPER status1 |
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Pangkatan mill | Status | Blue | Blue |
Tengkalat mill | Status | Blue | Blue |
Bumi Permai mill | Status | Green | Blue |
Rahayu mill | Status | Blue | N/A |
1The Program for Pollution Control, Evaluation and Rating (PROPER) is a scheme by the Ministry of Environment in Indonesia Government of Indonesia to promote compliance with environmental regulations. A color-coded rating (from black to gold) serves as an indicator of environmental performance, including emissions reduction, responsible waste management and pollution control.
Strategy
Our principal activity is the production of certified sustainable crude palm oil.
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