Golden Agri-Resources’ (GAR) latest Sustainability Report shows the company continuing to strengthen its efforts in responsible production. Chairman and CEO Franky O. Widjaja said, “As we continued to work on responsible palm production in 2021, we also identified ESG matters needing more attention, including our response to climate change and addressing GHG emissions.
Implementation of the GAR Social and Environmental Policy or the GSEP remained on track. Using lessons learnt during the pandemic, we continued to leverage technology and pushed ahead on critical initiatives such as achieving full traceability for our palm supply chain.”
Report highlights include:
Strengthening focus on climate action. GAR is one of the signatories of the Agricultural Commodity Traders Statement of Purpose at COP26 and is committed to a 1.5C trajectory. The company is reporting Scope 1 and Scope 2 emissions for all of GAR’s operations for the first time in the Sustainability Report 2021. The company is also working on reporting Scope 3 emissions and is developing a strategy for GHG emissions reduction. GAR is also preparing to implement the Task Force on Climate-related Financial Disclosure (TCFD) recommendations.
Continued support for community and employee well-being. Employee and community well- being remained a priority with the pandemic in its second year. GAR helped more than 140,000 people, including employees, get vaccinated and supplied over 60 tonnes of liquid oxygen and 12 oxygen concentrators to local communities and hospitals in Indonesia. GAR also continued to provide PPE such as masks as well as health packages to thousands of medical frontliners.
The achievement of 95 percent TTP for GAR’s entire palm supply chain. GAR continued to push ahead with this major initiative. As the supply chain is not static, new suppliers joining the supply chain require time to build capacity to implement TTP. GAR is engaging actively with these and the very few suppliers who have yet to complete their TTP, and has devised action plans to support them. GAR is also exploring ways to build a database of TTP-compliant suppliers for future sourcing. The company will now be focusing more attention on the next phase of deepening supplier support and engagement.
118,000 smallholders were registered in Ksatria Sawit programme as at end-2021. GAR continued to register more Tier 2 suppliers under this programme created to help accelerate TTP. This will make it easier to conduct outreach, training and support programmes in the next phase of GAR’s supplier transformation programme.
GAR supports, directly and indirectly, the conservation of around 240,000 hectares of forest area. This includes 79,900 hectares within GAR’s own concessions; some 117,000 hectares within third-party supplier concessions; and 43,000 hectares in community areas. This demonstrates GAR’s continuing commitment to forest conservation.
About Golden Agri-Resources Ltd
GAR is one of the leading palm oil plantation companies with a total planted area of 536,907 hectares (including plasma smallholders) as at 31 March 2022, located in Indonesia. It has integrated operations focused on the technology-driven production and distribution of an extensive portfolio of palm-based products.
Founded in 1996, GAR was listed on the Singapore Exchange in 1999 and has a market capitalisation of US$2.9 billion as at 31 March 2022. Flambo International Limited, an investment company, is currently GAR’s largest shareholder, with a 50.56 percent stake. GAR has several subsidiaries, including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.
As an integrated agribusiness, GAR delivers an efficient end-to-end supply chain, from responsible production to global delivery. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil, margarine, shortening, biodiesel and oleo- chemicals; as well as merchandising palm products globally. GAR’s products are delivered to a diversified customer base in approximately 100 countries through its global distribution network with shipping and logistics capabilities, destination marketing, on-shore refining and ex-tank operations in many countries. GAR also has complementary businesses such as soybean-based products in China, sunflower-based products in India, as well as sugar businesses.
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