36
INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
ENVIRONMENTAL
STEWARDSHIP
GHG EMISSIONS, CARBON FOOTPRINT
AND ENERGY MANAGEMENT
Palm oil is an important, basic food product in today’s society.
As palm oil producers, we understand the environmental
challenges of business expansion, and acknowledge our duty
to produce palm oil in a responsible manner.
At the core of our sustainability commitment is a robust
approach to environmental management and compliance that
delivers cost savings through eco-efficiency, and accountability
through strong stakeholder relationships.
We are investing to save energy and water and promote a low
carbon industry in the long term.
We acknowledge that emissions of man
-
made GHG may
contribute to climate change and affect weather patterns.
This, in turn, can have great impact on the agri
-
businesses
in various ways. Changes in rainfall pattern and volume, for
instance, have a direct effect on the productivity, performance
and security of our supply chain.
The principal sources of GHG emissions in our operations are:
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stock during the development of new plantations
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the palm oil mills, transportation and machinery
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MEASURING OUR EMISSIONS
We joined the RSPO Palm GHG Calculator pilot project to set
a GHG emission baseline for our palm oil mills and estates. In
2014, we measured the GHG emissions at eight RSPO mills
and 22 estates covering 79,137 hectares, with a production
of 358,000 tonnes of CPO and 92,000 tonnes of PK. Based
on these numbers, the total net emissions from the mills
and estates were estimated to be 2.64 tonnes of CO
2
e per
tonne of CPO and 2.64 tonnes of CO
2
e per tonne of PK. We
have also estimated the total emissions from the sea and
land transportation of CPO between the bulking stations and
refineries to be 0.02 tonnes of CO
2
e per tonne of CPO.
Currently, we are only using the carbon credits for the carbon
sequestration from planting oil palms and other trees on
our estates. We have yet to determine the procedures for
calculating carbon credits for the designated HCV areas.
GHG REDUCTION STRATEGIES
We are using the learning points from the pilot project to help
develop our GHG reduction strategies.
Since 2013, we have committed to no new planting on
peatland. Peatlands contain rich carbon stocks, which are
a significant source of GHG emissions if disturbed. In line
with the RSPO principles, we are committed to a no
-
planting
policy on primary forests and HCV areas for new plantings.
To reduce the emissions from POME, we are doing a detailed
study on the reduction of methane in our Aerated Bunker
Composting system which has been installed in two mills.
As part of the government’s energy efficiency drive, we
have completed energy audits and set a baseline for energy
consumption at two mills. We plan to further assess our
energy consumption, and develop an effective energy
reduction target.
We encourage our employees to conserve electricity in the
plantation accommodation. We communicate the benefits of
energy efficiency at the plantations, mills and in living areas.
RENEWABLE ENERGY
All the machines, equipment, lighting and vehicles on our
estates require energy to operate. Increasingly, our mills are
switching to renewable energy sources. Currently, 99% of
the fuel for the mill boiler come from oil palm by
-
products,
such as palm kernel shells and fibres. The active use of
renewable energy has allowed us to avoid the equivalent
of 9,644,886 litres of non
-
renewable diesel at the RSPO
-
certified plantations and PROPER
-
audited mills.
