Singapore, 16 December 2021 – Global palm oil company Golden Agri-Resources (GAR) has won in two categories in the Sustainable Business Awards (SBA) 2021, namely Supply Chain Management and Business Ethics & Responsibility, with recognition of Special Achievements in two more categories – Community and Land Use & Biodiversity.
This year, the SBA focused on awarding organisations that have made clear efforts to reduce their carbon footprint in Asia. GAR’s Chief of Sustainability and Communications Officer Anita Neville received the award from the Minister of Sustainability and Environment of Singapore Grace Fu.
“GAR makes sustained efforts to embed responsible practices in our day-to-day operations because we recognise that this is the only way to ensure our business thrives. We are proud that these efforts have been recognised and we hope that these awards raise awareness of the tremendous work currently underway in the palm oil sector to address pressing issues such as climate change,” said Ms Neville.
In 2021, GAR achieved 95 percent traceability to the plantation for its entire supply chain. Traceability to plantations has become the essential foundation for the company to encourage the adoption of sustainable production practices, strengthening its relationship with suppliers of all sizes.
For example, through the KSATRIA Sawit Programme, GAR has mapped farmers, agents and suppliers, and through this process has offered programmes to support their uptake of sustainable practices. This initiative has been ongoing since 2019, and more than 80,000 farmers in Indonesia have participated.
GAR’s Sustainable Business Award 2021 Certificate
The company’s active involvement with suppliers has also encouraged efforts to reduce greenhouse gas (GHG) effects associated with forest clearance. GAR itself, currently conserves around 78,000 hectares of forests in its concessions in Indonesia, aligned with its Forest Conservation Policy launched in 2011. This represents an area larger than Singapore. In addition the company has engaged local communities to commit to conserve 43,000 hectares of forests, and is supporting suppliers in their own commitments to protect another 100,000 hectares.
GAR also adheres strictly to its Zero Burning Policy, in place since 1997. More than 90 villages are currently taking part in a joint fire prevention programme which focuses on training the local community to suppress fires, known as Desa Makmur Peduli Api. Fires and hotspots have decreased over the last five years.
In addition, GAR runs community programmes aimed at diversifying income streams and boosting food security for 60 local communities through organic and cash crop farming. These programmes aim to convince local communities they do not need to use fire to clear land or open more forested land to support themselves.
The SBA has been held since 2012 in five countries, i.e. Singapore, Malaysia, Indonesia, the Philippines and Thailand. This year, 100 participants took part in the Singapore awards, which had 12 main categories. The number of participants for this year’s edition increased from last year’s 87 and as many as 24 organisations took the awards home.
The SBA is an event organised by Global Initiatives (GI) – a Singapore-based company that focuses on issues surrounding sustainability and data science. Founded in 2006, GI has a long history of collaborating with multilateral institutions such as UN affiliates, regulators, companies and academia.
About Golden Agri-Resources Ltd (GAR)
GAR is one of the leading palm oil plantation companies with a total planted area of 536,877 hectares (including plasma smallholders) as at 30 June 2021, located in Indonesia. It has integrated operations focused on the 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$2.2 billion as at 30 June 2021. Flambo International Limited, an investment company, is currently GAR’s largest shareholder, with a 50.52 percent stake.
GAR has several subsidiaries, including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992. GAR is focused on responsible palm oil production. 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 over 70 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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