Embed Size (px)
Citation preview
Our sustainability journey –
from policy to practice
Anita Neville, VP Corporate
Communications & Sustainability Relations
About GAR
A leading integrated palm oil company
1999: Listed on the Singapore
Exchange
A leading integrated palm oil
plantation company
Largest palm oil grower in
Indonesia.
Total revenue: over US$7 billion
Core net profit: US$221 million
2,510,000 metric tonnes of crude
palm oil (CPO) and palm kernel
(PK)
4
Palm oil is highest yielding of
any vegetable oil crop
Rapid growth in global demand
due to best value and versatility
In 2015, mature oil palms
occupied 6% of the harvested
area; supplied 39% of global
vegetable oil
In Indonesia palm oil production
provides:
− 16 million jobs
(direct/indirect)
− US$19 billion in export
revenue
The importance of palm oil
15
Our sustainability journey
Committed to sustainable palm oil
We want to ensure that GAR upstream
and downstream palm oil operations
are deforestation-free, traceable and
bring benefits to the people and
communities where we operate.
GAR Social and Environmental Policy
Our journey so far…
Preventing forest fires and haze
Since 1997 GAR has operated a strict Zero
Burning Policy and a policy of no
development on peat.
Our fire management programme includes:
− The training of emergency response
personnel
− investing in new technology and
equipment (e.g. drones and satellite
surveillance)
Almost zero fires in 2016 on our estates;
less than one percent of the land that we
manage was affected by fire during 2015.
Fire free village pilot programme in 2016
successful – 17 villages in West Kalimantan
and Jambi achieved fire free targets and
received infrastructure support awards
2017 programme – Desa Makmur Peduli
Api – will combine fire prevention, food
security and forest conservation.
OUR COMMITMENTS:
No development of and the conservation of HCS forests.
No development of and the conservation of peat lands of any
depth.
To develop strategies for long-term rehabilitation of peat
lands.
No development of and the conservation of HCV areas.
To conserve and protect rare, threatened and endangered
species as well as ecosystems and critical habitats of rare,
threatened and endangered species.
Conservation of HCV and HCS forests
We have identified and
are committed to
protecting
Our plans include…
OUR COMMITMENTS:
To respect the right to FPIC for indigenous peoples
and local communities and recognising the need for
food security in new developments.
The responsible handling of complaints and
grievances.
The responsible resolution of conflicts.
Social and community engagement
We have…
In partnership with The Forest Trust(TFT), developed
a Participatory Mapping (PM) process
We will follow that with Participatory Conservation
Planning
Continued to minimise conflicts through multi-
stakeholder consultations.
Established a new Grievance Procedure in 2015
Achieving full traceability and bringing our
suppliers along on our sustainability journey
In 2015, GAR mapped all mills that supply our refineries and kernel
crushing plants in Indonesia.
Identified 489 mills that supply GAR; 44 are GAR-owned and 445
are independent.
Now working with these mills to achieve 100 percent traceability all
the way to the plantation by 2020.
We are getting to know and understand our suppliers and the issues
they face.
This enables us to help them adopt better social and environmental
practices.
GAR helps smallholders increase productivity while
reducing impact on the environment
GAR has 67,000 plasma smallholders in Indonesia, who
supplied 22% of FFB in 2015.
Provide regular training sessions on best agronomy
practices (Integrated Pest Management, fertiliser
application) and supplies them with high yield seeds.
Over 400 farmers in 2015 received training and can in
turn share information with their neighbours.
Innovative financing to support sustainable farming
practices
GAR helped independent farmers secure US$3.59 million
in loans from a state-owned bank to replant 500 hectares.
As at end-2015, GAR had succeeded in inviting 270
farmers to participate in the scheme.
This helps boost incomes, productivity and reduces
pressure on opening new land.
Supporting small farmers to achieve
sustainable palm oil
Our commitment to traceability and transparency throughout our supply chain is important to meet a growing
demand on the part of our customers for certified, sustainable palm oil.
262,453 hectares of plantations including smallholder plantations of 51,149 hectares, 29 mills, five kernel crushing
plants, four refineries, six bulking stations and one oleochemical plant have received RSPO certification.
One mill and its supply base in Kijang, Riau has been certified under RSPO-RED scheme.
186,307 hectares of plantations and 30 mills have received ISPO certification.
291,351 hectares of plantations including smallholder plantations of 57,755 hectares, 29mills, two kernel crushing
plants, five refineries and 14 bulking stations have received ISCC certification.
Latest certification updates can be viewed on our website.
Progress in Certification
Managing our operational footprint
Verified the calculation of GHG emissions with EY to
start baseline studies.
Reduced emissions by 37,000 tonnes CO2eq due to
methane capture Sei Pelakar mill.
Installed tank digester system to capture methane
from POME treatment at Libo and Ramarama mills.
Zero Waste Policy is implemented in all operations.
Starting in 2016, we will pilot a water footprint
assessment to help better manage our water use.
Stopped using the herbicide paraquat.
Reduced total amount of pesticides and increased
the use of biopesticides.
Our Employees
2014 2015
Men Women Men WomenPermanent
Staff
43,301
(87.3%)
6,295
(12.7%)
43,151
(87.3%)
6,235
(12.7%)
Casual
Workers
37,000
(56%)
29,000
(44%)
32,000
(55.5%)
26,000
(44.5%)
Managers 698
(81.5%)
158 (18.5%) 733 (81%) 171 (19%)
Worker Benefits in plantations
*Annual Leave is subject to the terms of employment
Permanent Worker
Contract Worker
Casual Worker
GAR’s Good Labour Practices
32
Source: GAR Sustainability Report 2015
• No requirement for employees to deposit identity papers or money as a condition of their employment.
• Some employees join through pre-employment training or education programmes paid for fully by GAR.
Responsible recruitment
• In 2015, there were 168 Labour Unions representing 40,638 non-management employees (82.3 percent) across our plantations in Indonesia.
• We provide day care centres at all of our operating sites to support our female employees and their children.
Freedom of association & workplace
diversity
• Nearly 530 dedicated OHS experts within our workforce and conduct periodic training for all employees in accordance with national regulations
• Each of our units has an Occupational Health and Safety Supervisory Committee.
Occupation health and
safety
Empowering communities
2017 & beyond…
2017 in focus
Stay in touch
www.goldenagri.com.sg
