SEO Version
SUSTAINABILITY TARGETS AND MATERIALITY ISSUES
BALANCING ENVIRONMENTAL AND SOCIAL CONCERNS
WITH ECONOMIC OPPORTUNITIES
Agricultural expansion, driven by both smallholders and large-scale
agriculture organisations, has rightly become a strong focus for
environmental sustainability. Other common issues of concern
are social conflicts due to land ownership, and the right to Free,
Prior and Informed Consent for the indigenous people.
Despite these issues, the palm oil industry has created millions of
jobs, both on the farm and non-farm, and has contributed
significantly to Indonesia’s agriculture exports. District authorities
and smallholder cooperatives participate actively in agricultural
activities to realize the inherent economic benefits. Expert studies
have shown that oil palm has been instrumental in reducing, and
in some cases, eliminating rural poverty in developing countries.
In Indonesia, efforts to minimise the environmental impacts and
optimise the social benefits of palm oil have led to the establishment
of mandatory standards, like the Indonesian Sustainable Palm
Oil (ISPO), for local palm oil industry. By the end of 2014, it will
be compulsory for all palm oil plantations in Indonesia to embark
on the ISPO certification process.
COMPLIANCE WITH RSPO AND ISPO STANDARDS
The RSPO is a Non-Governmental Organisation (NGO) formed by
international palm oil producers, end-users and other NGOs. It is,
to date, the highest environmental and social standards attainable
in the palm oil industry. IndoAgri is a member of the RSPO and
aims to obtain RSPO certification for all its plantations. We are
also preparing our plantations for the ISPO audit.
Further reading on the RSPO and ISPO framework is provided
on page 66-67.
SUSTAINABILITY AIMS
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1. Certify all estates managed by the Group and its plasma
smallholders to RSPO and ISPO
2. Audit 100% of our palm oil and other crops against world
class standards, such as RSPO
3. Reduce our environmental footprint
4. Improve the lives of the people living and working on our
estates
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RSPO Nucleus
(hectares)
83,449 26,172 54,691 75,609
239,921 Sustainable
Agriculture,
Products
ISPO Nucleus*
(hectares)
8,071 106,531 95,804 29,515
239,921
RSPO Plasma*
(hectares)
1,675
14,232 48,707 21,601 86,215 Smallholders
Carbon
Footprint
Palm Oil
Data Collection
and development
reduction target
Sustainable
Agriculture,
Products
Note1: The above targets for RSPO and ISPO are based on when the audit for certification requirements occur, certification issue date is subject to the accreditation period of the certifying body.
* A system developed by the Indonesian government for estates (nucleus) owned by plantation companies to develop oil palm plots (plasma) near their own plantation for smallholders.
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