Peatland Protection at Asian Agri: Managing Risk with Science and Best Practices
Peatland requires a different approach to management. Its unique characteristics mean that, without proper controls, it can pose environmental risks such as increased carbon emissions, land subsidence over time, and impacts on surrounding water systems.
Because of this, responsible peatland management is important not only for protecting nearby ecosystems, but also for supporting long-term plantation stability and more sustainable production practices. When managed responsibly, peatland can help reduce environmental risks, protect surrounding water systems, and support the long-term resilience of existing plantation areas.
Asian Agri’s peatland plantations are clearly mapped and managed under strict environmental and operational controls. Asian Agri also does not carry out new development on peat soil.
RSPO Best Management Practices on Peatland
As a member of RSPO, the water management practices for our estates are based on RSPO Best Management Practices on Peatland. A drainability study of the area must be conducted before the peatland is considered for new cultivation. The assessment will determine which water management approach is most suitable for the area, for example the use of bunds, water gates and weirs (water control structures).
Good water management prevents inflow of water during the monsoon period when river water levels are high. It also serves an all-important function to prevent water from leaving the plantation during the dry months, mitigating the risk of over-drainage of the peat.
Over-drainage not only increases the rate of oxidation of the peat (GHG emission), but it also irreversibly destroys the physical structure of the peat itself and, therefore, is highly detrimental to the oil palm growth and yield. Subsidence poles are installed at strategic locations in the peat plantations to monitor the rate of peat subsistence on a monthly basis.
Our procedure requires that the water level in the drainage should be maintained throughout the year at between 50 and 70 cm from ground level. This is in line with the RSPO Manual on Best Management Practices for Existing Oil Palm Cultivation on Peat (2012).
Our existing peatland estates are distributed in North Sumatra and Riau. We are currently managing eight peatland estates. These represent around 17 percent of the total area under our management.
As our existing estates on peatland are entering their replanting phase, drainability assessments need to be conducted prior to replanting in order to determine the suitability of the land for the next cycle of oil palm planting.
We also committed to a “no new planting” policy on peatland with 65% organic soil or more regardless of the depth of peat. Prior to any new planting, peatland mapping and assessment are carried out by peat experts from our R&D department. The results are used to produce a peatland map showing areas that should be protected from any new development. We also conduct monitoring of our water usage for all of our mills and estates.
We also share the knowledge and guidance on best management practices with suppliers who are engaging with us and have planted on peatland in order to ensure minimum impact to the environment.
Commitment to Responsible Peatland Management
At Asian Agri, how we manage peatland is set out clearly in our Sustainability Policy. It defines what we can and cannot do, and ensures peat areas are handled with greater care. This is reinforced by our commitment to NDPE (No Deforestation, No Peat, No Exploitation) and aligned with RSPO requirements.
In practice, this means:
- No new development on peatland
- Managing existing peat areas under defined environmental controls
- Maintaining water levels to support peat stability
- Monitoring field conditions and reviewing results regularly
- Assessing restoration or alternative land use where replanting is not suitable
We review these practices regularly and report on them as part of our sustainability disclosures. Together, these measures help ensure that existing peat areas are managed responsibly while reducing environmental risks associated with peat degradation, subsidence, and poor water management.
Peatland Mapping and Risk Identification
At Asian Agri, peatland assessment is carried out by our Research & Development (R&D) team. The team conducts field surveys and technical assessments to understand peat depth, condition, and overall land suitability.
Using this information, they develop soil maps across our estates to identify where peat areas are located and how they differ from other soil types. These maps help guide the type of management needed for each area based on actual field conditions.
Before any replanting takes place on peatland, the R&D team carries out a more detailed review. Protective maps are prepared to ensure replanting remains within areas that have already been developed. Where a site is considered unsuitable for replanting, other approaches, including restoration, may be considered together with relevant stakeholders.
The information gathered through these assessments supports day-to-day field decisions and helps ensure peat areas are managed according to their specific conditions. This allows management practices to be adjusted where needed while helping reduce environmental risk through more careful land use and replanting decisions.
By improving understanding of peat conditions before replanting or operational activities take place, these assessments support more informed decision-making and help maintain the long-term suitability of existing plantation areas.
Best Management Practices on Peatland
Managing peatland comes down to good water management. Peat needs to stay moist to remain stable. If it dries out, it can release more carbon, lose its structure, and begin to sink.
As a member of the Roundtable on Sustainable Palm Oil (RSPO), we follow RSPO best practices for managing peat areas, with a strong focus on water control and field discipline.
Water Management
We start planning water management well before replanting. About five years in advance, we assess how water moves through the land. This helps us understand what the site can support and what controls are needed.
In the field, we manage water flow using:
- Bunds
- Water gates
- Weirs
These structures are adjusted based on conditions, especially during heavy rain or dry periods. We aim to keep water levels between 50 and 70 cm below the surface. This helps:
- Prevent excess water from entering during the rainy season
- Retain enough moisture during dry periods to avoid over-drainage
Maintaining stable water levels helps reduce peat degradation over time and supports more responsible management of existing peat areas. It also helps preserve peat stability, lower the risk of excessive subsidence, and support the long-term productivity and resilience of plantations located on peatland.
Subsidence Monitoring
We also track how the land changes over time. We install subsidence poles at key locations and take measurements every month.
Peat soil can sink as it dries and breaks down, especially when the land is over-drained. Over-drainage can:
- Increase peat oxidation, leading to higher carbon emissions
- Damage the soil structure, often irreversibly
- Affect oil palm growth and yield over time
- Weaken the land and increase the risk of flooding
By monitoring subsidence regularly, we can better understand how peat conditions are changing over time and adjust water management or field practices when needed. This helps operational teams respond more quickly to changes in the field and supports the longer-term stability of peat areas already under cultivation.
Nutrient and Water Quality Management
Peat areas require a more careful approach to nutrient management because soil and water are closely linked. At Asian Agri, we plan fertilizer use based on site conditions, including the right dosage, timing, and method.
Because nutrients can move with water through peat soil, poor control can lead to runoff into nearby waterways. Over time, this can cause eutrophication, where excess nutrients:
- Trigger algae growth
- Reduce oxygen levels
- Affect water quality and aquatic life
By managing nutrients together with water levels, we reduce nutrient loss and protect surrounding water systems.
Monitoring, Compliance, and Continuous Improvement
Peatland management does not stop once systems are in place. Conditions can change over time, making regular monitoring essential for understanding what is happening on the ground and whether management measures are working as intended.
At Asian Agri, field data such as water levels, subsidence measurements, and site conditions are recorded and reviewed regularly by operational teams. This allows potential issues to be identified early and gives teams the information needed to respond before they become larger environmental or operational concerns.
This work is guided by internal procedures and aligned with RSPO requirements, including certification and sustainability reporting. Together, these frameworks help ensure that peatland management is applied consistently across operations and remains subject to regular review.
Regular monitoring also helps us learn from field conditions over time. The insights gathered are used to refine management practices, improve water management strategies, and support better outcomes for both the plantation and the surrounding environment. In this way, monitoring is not simply about compliance. It is a tool for reducing risk, protecting peatland, and supporting Asian Agri’s Climate Positive and Responsible & Sustainable Production commitments under AA2030.
Supporting AA2030 Through Responsible Peatland Management
Asian Agri’s approach to peatland management supports AA2030 by contributing to both the Climate Positive and Responsible & Sustainable Production pillars. Through peatland mapping, water management, subsidence monitoring, nutrient management, and regular field assessments, we manage existing peat areas based on science and field conditions.
For Climate Positive, peatland protection helps reduce the risk of emissions from peat degradation. By maintaining water levels, monitoring subsidence, preventing new development on peat, and assessing restoration or alternative land use where replanting is not suitable, Asian Agri supports better decisions on carbon-rich soils.
For Responsible & Sustainable Production, these practices help maintain peat stability, protect surrounding water systems, and improve the long-term resilience of existing plantation areas. This allows Asian Agri to manage land developed before current standards more responsibly, while supporting AA2030’s broader goal of balancing production with environmental stewardship.
Frequently Asked Questions (FAQs)
- What is Asian Agri’s approach to peatland management?
Asian Agri follows RSPO best practices for managing peatland. The company focuses on water management, nutrient control, and monitoring peat subsidence to maintain peatland stability, reduce emissions, and ensure long-term productivity. - How does Asian Agri manage water levels on peatland?
Asian Agri maintains water levels between 50-70 cm below the surface on peatland to prevent over-drainage and protect peat from oxidation. This is achieved through controlled drainage, bunds, and water gates, which are adjusted based on weather conditions. - What monitoring systems does Asian Agri use for peatland?Asian Agri tracks key indicators like water levels and peat subsidence. The company installs subsidence poles across peat areas and monitors them monthly to ensure peat stability and detect early signs of potential issues.
- Why is nutrient management important for peatland?
Nutrient management is crucial for peatland as peat soils are sensitive to fertilizer use. Asian Agri ensures the right dosage, timing, and application method to avoid nutrient loss, prevent eutrophication in nearby waterways, and protect the surrounding ecosystem. - How does Asian Agri ensure compliance with peatland management practices?
Asian Agri ensures compliance with peatland management practices through regular monitoring, internal audits, and alignment with RSPO requirements. Sustainability reporting and certification processes also support ongoing accountability and continuous improvement.