Our primary aim is to protect eco-systems and use resources efficiently, so that we can create significant value for customers, shareholders and the environment.
Our Policy aims to prevent deforestation and conserve High Conservation Value (HCV) and High Carbon Stock (HCS) areas. We commit to ensure that there is no new development in HCV areas within our operations and to buying palm oil from smallholders/external suppliers that does not originate from areas cleared of primary forest since 2011.
Prior to any new planting we use the HCS Approach Toolkit which allows estates to quantify carbon stocks of assets and gauge FPIC in the community.
We will regularly communicate with employees and local communities living around our estates the importance of the HCV areas and the restriction of activities such as hunting, trapping or trafficking of wild animals within them or adjacent to them. The hunting and poaching of wildlife, including rare, threatened and endangered species are prohibited within our plantations.
For established plantations, our Sustainable Palm Oil Policy 2017 aims to ensure the implementation of Best Management Practices for peat to manage and improve the ecological functions of peatland within and adjacent to our concessions.
Where our assets are RSPO-certified, peatland is protected, and we meet the requirements of the new Indonesian Government Regulation (no. 71/2014) that prohibits clearing new land for cultivation, cutting drainage channels that may dry out peat, intentionally burning peatlands and other activities that risk damage to peat.
The Indonesian government wants stricter fire controls and declared emergency status in some areas in 2017, and some Provinces delivered some impressive fire prevention actions this year.
The way IndoAgri controls fires is systematic and reliant on local engagement. In 2017 we once again worked with local government, village chiefs, and local communities to build local capacity and knowledge to prevent fires. Our fire towers, new equipment and training are helping and operational teams ensure that land preparation is done mechanically so that good practice is shared.
We continue our work to be a welcomed member of the community who actively engages with and listens to local stakeholders, while making a positive contribution.
During planting we aim to clarify land ownership and land rights. It makes good business sense to ensure that our process does not threaten supply resilience and RSPO certification process helps us to ensure that engagement, land rights and ownership are respected.
Also, community relations are part of HCV management, at the core of building trust and consent. Each HCV assessment and management team has a formal dialogue process with relevant stakeholders about HCV and land management.
Our Environmental Management Systems (EMS, which follows ISO14001), Enterprise Risk Management framework and Whistleblowing mechanism are in place to ensure compliance with the relevant requirements and manage environmental risks. Some 65% of palm oil mills and estates have an EMS in place. In 2017, we have 16 mills, 1 refinery, 1 bulking station certified against ISO 14001 standard. We aim to certify our mills and refineries by end 2019.
We continue to consolidate good management practices on site. Our sustainability team is focused on resource efficiency and works with colleagues from Indofood Group. Supported by energy studies in 2016, the goal is to identify energy savings and earmark more sites with energy efficiency opportunities
Total net emissions in 2017 for each tonne of CPO and palm kernel (PK) were 1.54 tonnes CO2e (2016: 1.79 tonnes CO2e). Emissions related to transport of CPO to four refineries were 0.07 tonnes CO2e per tonne CPO transported (2016: 0.05 tonnes CO2e/tonne CPO).
Our three aerated bunker composters (including one at our new Kencana Sari mill) continue to reduce methane emissions by 30%-70% compared with standard composting.
Whilst we administer fertiliser during planting and replanting we also use leguminous cover crops to manage atmospheric nitrogen and improve the soil. We also recycle empty fruit branches (EFB) and POME for use as a soil improver. 89% of total volume fertiliser used is organic.
We have stopped the use of Paraquat since the end of March 2018 in all of our operations. IndoAgri complies with government regulations (Komite Pestisida) on restricted pesticides.
Click here for the 2017 list of Red List species.