Since 2013, we have ceased all new planting on peatlands and have successfully maintained water levels across the peat areas we manage. Peatlands store about one-third of the world’s soil carbon, making them vital for global climate stability. When drained or burned, they release large amounts of carbon dioxide, a major GHG that accelerates climate change. In 2023, Indonesia’s Ministry of Environment and Forestry designated certain areas within our concessions as deep peatland7 after a detailed review. To ensure compliance with peatland protection rules, the government requires companies to submit monitoring reports monthly and annually for audits purposes. IndoAgri fully complies with these regulations and prohibits new development on peatlands, regardless of their depth. Any nucleus planting programmes require approval at the IndoAgri Executive Board level. Our approach to managing HCV areas, outlined on pages 21-23, also applies to peatlands. We maintain clearly defined peatland boundaries and minimum water table depths for cultivated areas, working closely with the Ministry of Environment, Ministry of Forestry, and Ministry of Agriculture, and peatland experts to ensure compliance. In 2025, we worked with the government to identify appropriate technology and service providers to enable us to meet peatland effluent monitoring regulations that were introduced in 2024. We monitor peatland water levels through peat subsidence checks, GIS-based remote sensing, and 3D flood-risk modelling, complemented by firebreak installation and canal engineering to regulate water flow during dry periods. Hydrographic and topographic maps of peatland areas have been submitted to the government to ensure transparency. In addition, automatic groundwater loggers are deployed for continuous monitoring, and we regularly consult with the Ministry of Environment and Forestry and the Ministry of Agriculture to ensure compliance with all applicable regulations. Starting in 2026, we will transition to drone-based monitoring, with data transmitted through automatic weather stations in line with new government regulations for peatland management. This system will enable real-time reporting of water levels and weather conditions directly to government platforms, ensuring full compliance and enhanced transparency. In 2025, we did not experience any fires in the peatland areas. All water-level tests performed by the government during the year met regulatory standards. Beyond compliance, IndoAgri also actively engage stakeholders, including local officials, local NGOs, labour unions and community representatives, though annual meetings which serve as a platform to raise awareness, obtain feedback on our environmental management approach and address any specific environmental concerns raised. For further information on our commitment to peatland protection, please refer to the Policy available on our website. Monitoring groundwater levels in peatland areas at Tanjung Makmur Estate, West Kutai, East Kalimantan. 7 Deep Peatland refers to peat soil more than three meters deep. These tend to store vast amounts of carbon and are legally protected in Indonesia to prevent large-scale emissions and biodiversity loss. 24 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
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