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:

  • 53% reduction in FLAG (forest, land and agriculture) emissions per tonne CPO by 2030; and 72% reduction in absolute FLAG emissions by 2050.
  • 28% reduction in industrial scope 1, 2 and 3 emissions by 2030; and 90% reduction in industrial scope 1, 2 and 3 emissions by 2050.
Methane capture
The Group had six mills in operation in 2023, of which five 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 2023 were 204,512 tCO2e (including energy consumption by our offices, palm oil estates and mills, emissions from POME, land-use change (LUC), and application of EFB and fertiliser).
Scope 3 emissions
The Group’s scope 3 emissions for 2023 were 2,046,661 tCO2e (91% of Group emissions in 2023), 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, 84% come from the further processing of the products that the Group sells (category 10).
Reduction in GHG emissions
The Group has achieved a 19% reduction in absolute Group emissions (from a baseline of 2.78 million tCO2e in 2021 to 2.25 million tCO2e in 2023). The reduction is largely attributed to a decrease in the volume of FFB sent to external mills for processing. The Group’s emissions intensity (across scopes 1, 2 and 3) has reduced to 5.9 tCO2e per tonne of CPO and 4.9 tCO2e per tonne of palm product (from 8.9 tCO2e per tonne of CPO and 7.3 tCO2e per tonne of palm product in our baseline year, 2021).

All information is for year ended December 2023

Group GHG emissions
Units 2023 2022 2021 baseline
Scope 1 tCO2e 203,936 194,158 187,962
Gas, biogas and biomass tCO2e 16,355 12,338 9,939
Transport (petrol and diesel) tCO2e 15,147 16,873 17,145
Other fuels (F-gases and propane) tCO2e 465 555 546
POME (including land application) tCO2e 72,726 71,590 72,731
Application of fertiliser tCO2e 60,821 53,556 49,937
Land use change tCO2e 35,637 37,451 35,993
Composting EFB tCO2e 2,785 1,795 1,671
Scope 2 tCO2e 576 515 379
Purchased electricity tCO2e 576 515 379
Scope 3 tCO2e 2,046,659 2,275,183 2,594,417
1. Purchased goods and services tCO2e 199,172 173,597 159,772
2. Capital goods tCO2e 404 4,088 2,521
3. Fuel-related emissions tCO2e 3,548 4,081 4,207
4. Upstream transportation and distribution tCO2e 15,377 15,787 7,869
5. Waste generated in operations tCO2e 3,192 1,955 1,472
6. Business travel tCO2e 1,054 783 962
7. Employee commuting tCO2e 5,648 4,947 4,126
8. Upstream leased assets tCO2e N/A N/A N/A
9. Downstream transportation and distribution tCO2e 12,661 13,246 28,034
10. Processing of sold products tCO2e 1,711,974 1,980,520 2,321,314
11. Use of sold products tCO2e 39,923 32,868 26,936
12. End-of-life treatment of sold products tCO2e 48,381 39,536 33,361
13. Downstream leased assets tCO2e N/A N/A N/A
14. Franchises tCO2e N/A N/A N/A
15. Investments tCO2e 5,325 3,775 3,843
Total emissions tCO2e 2,251,171 2,469,856 2,782,758

Scope 1, scope 2 and scope 3 emissions (CO2, CH4, N2O and hydrofluorocarbon emissions) are calculated using guidance of the GHG Protocol applying the operational control approach.

Further information:

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:

  • Monitor species diversity in our concessions and understand the impact of our operations on biodiversity.
  • Take measures to address drivers of biodiversity loss and enhance biodiversity within conservation set aside areas, in areas of our estates, and where appropriate beyond the boundaries of our concessions. This includes habitat enrichment in areas of estates to increase the diversity of natural vegetation in areas of estates and improve connectivity between conservation areas.
  • Prevent illegal hunting or collecting in plantations and conservation areas.
  • Manage pests, diseases, weeds and invasive non-native species using appropriate integrated pest management (IPM) techniques.
  • Develop measures to resolve human-wildlife conflicts.
  • Promote awareness of biodiversity and conservation issues among our employees, suppliers, contractors, and with the local communities that live around our concessions.

Our timebound targets are to:

  • Have a comprehensive biodiversity monitoring program in place by 2025.
  • Restore 450 ha of riparian ecosystem by 2030.
  • Achieve a positive impact on biodiversity by 2030.
Area set aside for conservation
6,309 ha of the Group’s land is set aside as conservation area. These conservation areas include:

  • Areas of HCS forest that contain high concentrations of carbon in the vegetation and soils.
  • Riparian reserves to stabilise riverbanks and protect against chemical run off, and that serve as wildlife corridors, provide habitats for pollinators and pest-control agents, and are beneficial for both acquatic and terrestial wildlife.
  • Biodiverse areas of forest that provide habitats for rare, threatened or endangered (“RTE”) species.
  • Areas that have social or cultural importance to the local communities.
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 2023

Indicator Units 2023 2022
Conservation area Hectares 6,309 4,777
IUCN Red List Species by category
Least concern Number 199 199
Near threatened Number 19 19
Vulnerable Number 21 21
Endangered Number 11 11
Critically endangered Number 4 4

Further information:

Indicator Disclosure
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
Satellite monitoring detected 34 hotspots in and around company boundaries in 2023. Ground verification confirmed 17 fires, of which five were inside company boundaries. These were quickly managed according to our fires response protocol and were reported to the RSPO and relevant authorities.

All information is for year ended December 2023

Indicator Units 2023 2022
Hotspots detected inside concession boundaries Number 15 4
Hotspots detected outside concession boundaries Number 19 15
Fires occurring inside concession boundaries Number 5 0
Fires occurring outside concession boundaries Number 12 8

Further information:

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 2023

Indicator Units 2023 2022
Compost Tonnes per hectare 5.79 4.77
Inorganic fertiliser Tonnes per hectare 0.93 0.89
Herbicide Litres per hectare 1.34 1.46
Pesticides Litres per hectare 1.19 1.23
Area of oil palm on peat Ha 4,637 4,637

Indicator Disclosure
Water use intensity
In 2023, 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.
PROPER is a program of the Indonesian Ministry of Environment and Forestry (KLHK) to promote good environmental management. In 2023, two of our mills (Bumi Permai mill and Rahayu mill) achieved the Green category PROPER award while two other mills (Pangkatan and Tengkalat) secured blue status.

All information is for year ended December 2023

Indicator Units 2023 2022
Mill water use m3 per tonne ffb processed 0.9 1.0
Pollution complaints Number 0 0
PROPER status1
Pangkatan mill Status Blue Blue
Tengkalat mill Status Blue Blue
Bumi Permai mill Status Green Green
Rahayu mill Status Green Blue
Benuang mill Status N/A N/A
Kenanga mill Status N/A 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.

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