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Sustainable Palm Oil Practices At Sinarmas Agribusiness and Food (GAR / PT. SMART Tbk) Agus Purnomo

Sustainable Palm Oil Practices

At Sinarmas Agribusiness and Food

(GAR / PT. SMART Tbk)

Agus Purnomo

Managing Director of Sustainability and Strategic Stakeholders Engagement May 2018

Overview of GAR

Overview of GAR Integrity Positive Attitude Commitment Continuous Improvement Innovation Loyalty
Integrity Positive Attitude Commitment Continuous Improvement Innovation Loyalty
Integrity
Positive Attitude
Commitment
Continuous Improvement
Innovation
Loyalty

Our Integrated Operations

Our Integrated Operations Integrity Positive Attitude Commitment Continuous Improvement Innovation Loyalty
Integrity Positive Attitude Commitment Continuous Improvement Innovation Loyalty
Integrity
Positive Attitude
Commitment
Continuous Improvement
Innovation
Loyalty

Our Global Positions

Our Global Positions Integrity Positive Attitude Commitment Continuous Improvement Innovation Loyalty
Integrity Positive Attitude Commitment Continuous Improvement Innovation Loyalty
Integrity
Positive Attitude
Commitment
Continuous Improvement
Innovation
Loyalty

GAR Social and Environmental Policy

GAR Social and Environmental Policy ENVIRONMENTAL MANAGEMENT SOCIAL AND COMMUNITY ENGAGEMENT WORK ENVIRONMENT AND INDUSTRIAL RELATIONS
GAR Social and Environmental Policy ENVIRONMENTAL MANAGEMENT SOCIAL AND COMMUNITY ENGAGEMENT WORK ENVIRONMENT AND INDUSTRIAL RELATIONS

ENVIRONMENTAL

MANAGEMENT

SOCIAL AND COMMUNITY ENGAGEMENT

WORK ENVIRONMENT AND INDUSTRIAL

RELATIONS

GAR Social and Environmental Policy ENVIRONMENTAL MANAGEMENT SOCIAL AND COMMUNITY ENGAGEMENT WORK ENVIRONMENT AND INDUSTRIAL RELATIONS

MARKETPLACE AND

SUPPLY CHAIN

GAR Social and Environmental Policy ENVIRONMENTAL MANAGEMENT SOCIAL AND COMMUNITY ENGAGEMENT WORK ENVIRONMENT AND INDUSTRIAL RELATIONS

Integrity

Positive Attitude

Commitment

Continuous Improvement

Innovation

Loyalty

Producing palm oil with low GHG emission 900.00 800.00 700.00 600.00 500.00 400.00 300.00 200.00 100.00

Producing palm oil with low GHG emission

Producing palm oil with low GHG emission 900.00 800.00 700.00 600.00 500.00 400.00 300.00 200.00 100.00

900.00

800.00

700.00

600.00

500.00

400.00

300.00

200.00

100.00

0.00

760 kgCO2e/dry ton CPO 390 kgCO2e/dry ton CPO
760
kgCO2e/dry ton
CPO
390
kgCO2e/dry ton
CPO

Average GHG without

Average GHG without MC

Average GHG with MC

Average GHG with Methane

Producing palm oil with low GHG emission 900.00 800.00 700.00 600.00 500.00 400.00 300.00 200.00 100.00

Biogas Engine

Producing palm oil with low GHG emission 900.00 800.00 700.00 600.00 500.00 400.00 300.00 200.00 100.00

Biogas Tank

 

Methane Capture

Capture

Methane Capture

Emission Reduction (tCO2 eq)

 

Methane Capture

Electricity generated

     

SRUF

89,737.0

RRMF

5,522,660

kwh

SMLF

96,792.6

     

RRMF

70,985.7

PRDF

6,987,040

kwh

     

PRDF

101,001.2

PLKF

5,905,324

kwh

PLKF

23,733.8

     

LIBF

48,910.3

LIBF

5,756,200

kwh

     

Total

431,160.6

Total

24,171,224

kwh

Integrity

Positive Attitude

Commitment

Continuous Improvement

Innovation

Loyalty

Conserving Forest in Partnership with Community Participatory mapping is key in getting community’s support to forest

Conserving Forest in Partnership with Community

Conserving Forest in Partnership with Community Participatory mapping is key in getting community’s support to forest
Conserving Forest in Partnership with Community Participatory mapping is key in getting community’s support to forest

Participatory mapping is key in getting

community’s support to forest and

biodiversity conservation

Progress to date

GAR has completed:

Participatory Mapping in 86 villages Participatory Conservation Plan for further dialogue on conservation in 11

villages

Conserving Forest in Partnership with Community Participatory mapping is key in getting community’s support to forest
Conserving Forest in Partnership with Community Participatory mapping is key in getting community’s support to forest
Conserving Forest in Partnership with Community Participatory mapping is key in getting community’s support to forest

Integrity

Positive Attitude

Commitment

Continuous Improvement

Innovation

Loyalty

Collaboration with communities, NGOs, and Government

Collaboration with communities, NGOs, and Government

Collaboration with communities, NGOs, and Government
Collaboration with communities, NGOs, and Government
Increasing smallholder farmers’ income Approach: Background: 1. Technical assistance: land are managed through Good Agricultural Practices
Increasing smallholder farmers’
income
Approach:
Background:
1.
Technical assistance: land
are managed through Good
Agricultural Practices
Poor agricultural
2.
practices
Financial incentives: loan
facility from Bank including
seeds, fertilizer, and living
allowance.
Smallholder
Farmers sustain
42% of palm oil
industry
Half of Smallholder
Farmers only
produce 2-3 tons
CPO/ha/year (low)
Photos:
Low quality seeds
Goal:
Progress to date:
1.
To increase productivity
into 5-6 tons
1.
Number of farmers and
replanted area: 430
farmers and 1,300 hectares
2.
By 2020 to target 35,000
hectares
2.
Total loan facility: 107
billion from state owned
Bank
Integrity
Positive Attitude
Commitment
Continuous Improvement
Innovation
Loyalty
After
Before
Tracable supply chain Delivering UN SDGs: Special workshops and training for suppliers to help them with

Tracable supply chain

Tracable supply chain Delivering UN SDGs: Special workshops and training for suppliers to help them with
Delivering UN SDGs:
Delivering UN SDGs:
Tracable supply chain Delivering UN SDGs: Special workshops and training for suppliers to help them with
Tracable supply chain Delivering UN SDGs: Special workshops and training for suppliers to help them with
Tracable supply chain Delivering UN SDGs: Special workshops and training for suppliers to help them with

Special workshops and training for suppliers

to help them with responsible practices

Tracable supply chain Delivering UN SDGs: Special workshops and training for suppliers to help them with

Progress to date:

  • 1. TTP for GAR owned mills: 45,000 hectares (15,000 farmers) are already mapped

  • 2. Engagement with Koltiva: 22,000 hecatres (11,000 farmers) are already mapped

  • 3. Engagement with SPKS: 7 villages, 2,00 hecatres (900 farmers) are already mapped

Integrity

Positive Attitude

Commitment

Continuous Improvement

Innovation

Loyalty

THANK YOU

THANK YOU