Smallholder Partnership
Intensive Engagement with Smallholders for Better Livelihoods
Doubling smallholders' income through replanting program.
Smallholders are central to our business and sustainability journey. Through our replanting program, we support plasma smallholders with high-quality planting materials, access to financing, land preparation, technical assistance, and alternative livelihood opportunities during the immature period of newly planted oil palms.
By improving the long-term productivity of replanted plantations, we aim to help smallholders strengthen their livelihoods and increase their income. Replanting is one contributor to income growth, alongside factors such as yields, weather conditions, and other sources of household income.
Performance
| 2024 Progress |
1.01x tons FFB/haThe average productivity of all our smallholders’ replanted plantations in 2024 reached 1.01x the baseline, equivalent to 15.19 tons FFB/ha, based on a baseline of 15 tons FFB/ha. One of the replanted KUDs has already achieved 1.87x tons FFB/ha at just five years old.The 2024 average productivity is lower than 2023, primary due to the inclusion of newly producing replanted areas aged between 2-4 years, which currently yield only 0.68x tons FFB/ha. These younger, lower-yielding areas have temporarily reduced the overall productivity for the year. |
100% completion of smallholders’ replanting program.
As oil palms age, their productivity declines. Through our replanting program, we support plasma smallholders in replacing aging palms with high-quality planting materials, including our Topaz seeds, while providing technical and financial support throughout the process.
Under AA2030, we aim to complete the replanting of 60,000 hectares of plasma smallholder plantations by 2030, helping improve long-term productivity and strengthen smallholder livelihoods.
Performance
| 2024 Progress |
Up to 31.5% CompletedSince the start of our replanting program in 2016, we have successfully replanted over 18,900 hectares of our scheme smallholders’ plantations — including 3,484 hectares in 2024 — representing 31.5% of our total target of 60,000 hectares. |
100% ISPO certification for smallholders.
Certification helps smallholders strengthen sustainable agricultural practices, improve management systems, and demonstrate compliance with Indonesian sustainability standards.
We support our plasma smallholders through training, technical assistance, and preparation for Indonesian Sustainable Palm Oil (ISPO) certification, with the goal of supporting all of our plasma smallholder cooperatives toward certification by 2030.
Performance
| 2024 Progress |
72% of Smallholder Cooperatives CertifiedIn 2024, 72% of our smallholder cooperatives (KUDs) obtained ISPO certification. Out of 76 KUDs, 55 have been certified in total, with 11 achieving certification in 2024 alone. |
5,000 independent smallholders to be RSPO certified.
Following our achievement of 100% RSPO certification for the plasma smallholders we support, we are extending certification support to independent smallholders.
Through the Smallholder Inclusion for Better Livelihood & Empowerment (SMILE) program, launched in 2020 with Apical and Kao Corporation, we provide targeted training, capacity building, and certification support to help independent smallholders adopt sustainable practices and gain access to certified supply chains.
Performance
| 2024 Progress |
Up to 27% Independent Smallholders CertifiedIn 2024, an additional 534 independent smallholders managing 1,129 ha of plantation obtained RSPO certification, bringing the total to 1,373 independent smallholders managing 3,099 ha. This represents 27% of our target to achieve RSPO certification for 5,000 smallholders. |
Inclusive Growth
Encourage Strong Participation to Achieve Best Quality of Life
Zero extreme poverty surrounding our operational area.
Developing practical skills can help community members expand their employment and livelihood opportunities. We provide vocational training in areas such as palm oil harvesting, plantation management, and mechanics, with programs focused particularly on communities surrounding our operations.
Under AA2030, we aim to equip 5,000 community members with relevant livelihood and vocational skills by 2030.
Performance
| 2024 Progress |
35% AchievedIn 2024, we provided vocational training to 686 individuals, bringing our total to 1,736 trained since 2022. Our goal is to equip 5,000 people with essential livelihood skills. |
Establishment of Small-Medium Enterprises that covers more than 500,000 ha.
We support the development of micro, small, and medium enterprises (MSMEs) in communities surrounding our operations to strengthen local economies and diversify sources of income.
Our support includes practical training, assistance in identifying market-aligned commodities and local business opportunities, and guidance to help community enterprises become more resilient and sustainable.
Performance
| 2024 Progress |
82% AchievedIn 2024, we supported the establishment of SME programs in 54 out of 159 villages across three provinces; 6 villages in North Sumatra, 7 villages in Riau, 6 villages in Jambi, covering 102,716 ha.In total, we have already covered 410,112 ha, or 82% of the 500,000 ha target. |
Provide 5,000 sets of school essentials to children through our Bag-to-School programme
Education plays an important role in strengthening opportunities for children and communities. Through our Bag-to-School program, we provide students in communities surrounding our operations with essential learning materials, including school bags, stationery, books, uniforms, and shoes.
Under AA2030, we aim to distribute 5,000 education packages by 2030.
Performance
| 2024 Progress |
27% Education Packages DistributedIn 2024, through our Bag-to-School programme, we provided 678 education packages to elementary, secondary and high school students. In total, we have distributed 1,355 packages, or 27% of our goal to provide 5,000 packages to students. |
Optimize recovery of waste oil.
We continuously improve oil recovery and waste management across our mills. Waste and residual oils recovered during FFB and empty fruit bunch processing are collected separately and repurposed for non-food-grade applications, helping improve resource efficiency and reduce production losses.
Performance
| 2024 Progress |
Upgraded/ Added 19 press machinesWe upgraded and/or added 19 full-EFB press machines in 12 mills. These machines play a crucial role in sustainability efforts by promoting responsible waste management practices. By using these machines, we can achieve more efficient recovery of waste oil.Through optimizing these machines, we also contribute to reduce the distribution of non-food grade products in the market. |
Climate Positive
Promote Sustainable Palm Oil Through Best Management Practices
One to One commitment for restoration area.
Under our One-to-One Restoration Ecosystem commitment, we aim to restore, manage, or conserve one hectare of ecosystem for every hectare of land we cultivate.
Our approach prioritizes the protection of existing natural ecosystems alongside the rehabilitation of degraded areas, including riparian zones and other high-potential landscapes, supported where appropriate through community-based restoration initiatives.
Performance
| 2024 Progress |
We continued to maintain the existing natural ecosystem and enrich the degraded area in concessionWe have secured the necessary legal permits for Ecosystem Restoration Concession (ERC). We will revitalize the degraded areas within the ERC to enhance biodiversity and strengthen ecological resilience. |
Net Zero emissions from land use.
Reducing our greenhouse gas emissions is an important part of our AA2030 commitments. We pursue a combination of operational efficiency, methane capture, renewable energy, conservation and ecosystem restoration, and reduced use of chemical inputs to progressively lower our carbon footprint.
Performance
| 2024 Progress |
| In 2024, our GHG emissions intensity for Scope 1 and 2 was 3.36 tCPO2eq/MT CPO. We continue to avoid and reduce GHG emissions, while also pursuing projects like ecosystem restoration that enhance natural carbon sequestration. |
Optimize methane capture facilities for all mills.
Methane capture is one of our key approaches to reducing emissions from palm oil mill effluent (POME). Our biogas facilities capture methane generated during POME treatment and convert it into renewable energy that can be used across our mills and other operations.
Performance
| 2024 Progress |
Methane Capture Maintained, More PlannedWe maintained our methane capture facilities in optimal condition, sustaining approximately 90% reduction in methane emissions. We are also exploring the possibility of adding new facilities. |
Achieve 100% renewable energy for our operations.
We are increasing the use of renewable energy across our operations to reduce dependence on fossil fuels. Our primary renewable-energy sources include fiber and palm kernel shells recovered from palm oil processing, together with biogas generated by capturing methane from POME.
Performance
| 2024 Progress |
| In 2024, 97% of our energy needs were met through renewable sources. For the remaining fossil fuel use, we are actively exploring renewable alternatives, including the potential installation of solar PV systems. |
Responsible & Sustainable Production
An Integrated Course of Actions to Establish Sustainable Product
No new land use change for plantations.
We have maintained no land expansion for plantation development since 2003 and remain committed to increasing production without expanding our plantation footprint. Instead, we focus on improving productivity within existing planted areas through replanting, better planting materials, research and development, mechanization, and improved agricultural practices.
Promote eco green for sustainable operations.
Responsible palm oil production requires strong environmental management and compliance with recognized sustainability standards.
Performance
| 2024 Progress |
Maintained 100% of Our Sustainability CertificationsWe consistently maintain 100% certification for all our plantations, including Indonesian Sustainable Palm Oil (ISPO), Roundtable on Sustainable Palm Oil (RSPO), International Sustainability and Carbon Certification (ISCC), Kosher, Good Manufacturing Practices+ (GMP+), Hazard Analysis and Critical Control Points (HACCP), and Green Gold Label (GGL). In addition, nearly 90% of our biogas output is used for power generation, contributing approximately 40% of our total electricity production. |
Implementing circular economy best practices.
We apply circular-economy principles by recovering and reusing by-products from our plantation and milling operations wherever practicable.
Performance
| 2024 Progress |
| We are committed to improving the circularity of our operations by recycling organic waste, such as using empty fruit bunches (EFB) as fertilizer and capturing methane from palm oil mill effluent (POME) to generate power. In 2024, we reused 58% of EFB and processed 54% of POME through our methane capture facilities. For us, circular economy implementation is an ongoing journey of continuous improvement. |
Reduce 50% pesticide usage.
We aim to reduce chemical pesticide use by 50% by 2030 compared with our 2022 baseline. Through Integrated Pest Management (IPM), we prioritize pest surveillance, biological and ecological controls, ecosystem enhancement, non-chemical controls, and targeted application methods.
Performance
| 2024 Progress |
Pesticide Usage Reduced by 31%In 2024, we reduced pesticide use by up to 31% compared to the 2022 baseline. This reduction was achieved through integrated biological pest control methods, including the use of natural predators such as assassin bugs (Sycanus sp), the use of host plants, selective spraying, and drone-assisted pesticide application. |