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SINGAPORE, May 31, 2024 /PRNewswire/ -- Golden Agri-Resources Ltd (GAR) has published its Sustainability Report 2023, detailing the company's efforts to address climate change risks, enhance sustainable production throughout the palm supply chain, and support economic development in farming communities where it operates.
GAR Chairman and Chief Executive Officer, Mr. Franky O. Widjaja, explained how GAR's ongoing investments and partnerships in sustainability are supporting climate resilience in the palm oil sector and helping the company navigate evolving regulatory requirements.
We recognise that action on climate change is not just a necessity but critical to our business and our industry's future. GAR is committed to achieving net zero by 2050 and has pledged to pursue a pathway limiting global warming to 1.5 degrees Celsius. This goal requires significantly reduced greenhouse gas emissions from our operations and Scope 3 emissions in our value chain.
"As we move forward, technology and sustainability serve as cornerstones in our quest for excellence. We recognise the imperative to harness the transformative forces of technology to drive efficiency, foster innovation, and propel us into new realms of growth. Moreover, sustainability is not merely a green choice; it represents a strategic investment in our future, enhancing our market position and ensuring long-term profitability. At GAR, we believe we can do well and do good."
Report highlights include:
Moving Towards Net Zero Emissions
Following recent efforts to map and calculate its emissions, GAR is finalising its decarbonisation strategy and roadmap for all entities in which the company has equity of 50 percent or above. This is scheduled for completion in 2024 and will focus on four key areas: implementing No Deforestation and No Peat commitments; realising carbon sequestration from carbon removal initiatives; methane avoidance and utilisation; and renewable energy for heat and power.
Advancing Cross-Sector Partnerships
GAR has recently joined the World Business Council for Sustainable Development (WBCSD), a global network of 200 businesses committed to transitioning to a more sustainable world. This move will allow GAR to learn best practices from diverse industries, contributing to climate change solutions while promoting thriving, resilient agriculture systems that deliver for both farmers and the environment.
As a signatory of the Agriculture Sector Roadmap to 1.5°C, GAR is also on track to achieve 100 percent 'Delivering' for all of its palm oil volumes under the No Deforestation, No Peat and No Exploitation Reporting Framework (NDPE IRF) by 2025.
Enhancing and Expanding Traceability
GAR has expanded the traceability of its palm oil supply chain in Indonesia, achieving 99 percent Traceability to the Plantation (TTP) by 2023. Notably, we have attained full traceability to estates, marking a milestone of 100 percent. Moving forward, we will continue to work towards extending support and facilitating the transition for smallholders to achieve the remaining percentage of TTP.
The company is now leveraging its experience and investments in traceability to start mapping all of its global supply chain for palm and non-palm products, including sugar and soy, for the first time. With this information, GAR can better engage and upskill its suppliers across all commodities to ensure alignment with the company's sustainability commitments. This will be fundamental to meeting growing customer demands and market regulations such as the European Union Deforestation Free Regulation (EUDR).
Supporting Resilient Rural Communities
GAR is continuing to support thriving agricultural communities in the areas where it operates. Through the Bright Future Initiative, GAR has established more than 160 projects in over 100 villages across its operations in Indonesia to promote economic development and develop local enterprises, including organic vegetable, livestock and cash crop farming. The company is also helping to upskill local communities, enabling them to market and sell these value-added products to boost their incomes.
In addition, GAR is supporting communities to tackle and prevent fires in light of heightened fire risk caused by El Niño weather conditions. Currently, 117 villages are enrolled in the company's long-term Desa Makmur Peduli Api programme, which trains local communities to prevent and suppress fires and educates them on the hazards of fire and haze.
About Golden Agri-Resources Ltd (GAR)
GAR is a leading fully-integrated agribusiness company. In Indonesia, it manages an oil palm plantation area of 532,488 hectares (including plasma smallholders) as of 31 March 2024. It has integrated operations focused on the technology-driven production and distribution of extensive portfolio of palm-based products throughout its established international marketing network.
Founded in 1996, GAR was listed on the Singapore Exchange in 1999 and has a market capitalisation of US$2.5 billion as of 28 March 2024. Flambo International Limited, an investment company, is GAR's largest shareholder, with a 50.56 percent stake. In addition, GAR's subsidiary, PT SMART Tbk 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 oil palm trees; the 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 100 countries through its global distribution network with shipping and logistics capabilities, destination marketing, on-shore refining and ex-tank operations. GAR also has complementary businesses such as soybean-based products in China, sunflower-based products in India, and sugar businesses.
For media enquiries, please contact:
Andrew Compton
Direct Dial: +65 6590 0859
Email: andrew.compton@goldenagri.com.sg
