Bumitama Agri : Sustainability Report 2022

45 Supply Chains and Responsible Sourcing

45 A Traceable Supply Chain

1. Assessing and Engaging Suppliers
2. A Focus on Smallholders

48 Appendices

52 Internal Audit Assurance Statement

54 Base Data

1. GRI Content Index

1. Glossary IBC Contact

Reporting frameworks alignment

This is Bumitama Agri Ltd's fifth biennial sustainability report, covering the Group's sustainability performance for 2021 and 2022. The document has been prepared in accordance with the latest Global Reporting Initiative (GRI) Standards and the GRI 13 Sector Standards agriculture indicators. GRI disclosures are included throughout the document and referenced under headings or subheadings as GRI XXX-XX or GRI 13.X.X. This report also complies with the requirements of the Singapore Exchange Securities Trading Limited (SGX-ST) Sustainability Reporting Guide listing rules 711A, 711B and Practice Note 7.6 Sustainability Reporting Guide, including the 2021 Common Set of Core ESG metrics. The report also introduces our contributions to selected United Nations Sustainable Development Goals (SDGs) and relevant targets.

Readers are invited to view this report in conjunction with other sustainability-related disclosures in our annual reports, website, and Roundtable on Sustainable Palm Oil (RSPO) Annual Communications of Progress (ACOP).

GRI Content Index (p60) 

Contributions to the SDGs (p17) 

Bumitama AR2022 (Refer to our website)

Report scope and boundaries

This report covers all Bumitama operations in Central Kalimantan, West Kalimantan and Riau, Indonesia. In addition to effects within our organisational boundaries, the report covers material aspects for all plasma smallholders and suppliers, including independent smallholders. Unless otherwise stated, data is representative up to 31 December 2022, and historical benchmark data is provided as available.

Assurance

Bumitama's internal audit department has provided limited independent assurance on selected disclosures in this report, including metrics related to implementing of commitments related to No Deforestation, No Peat and No Exploitation (NDPE), Greenhouse Gas (GHG) Emissions, fire & haze mitigation, health & safety, and FFB traceability and supply chain.

Internal Audit Assurance Statement (p52) 

Responsiveness and engagement

We have provided an appropriate context for our performance throughout this report, mainly the unique social and environmental landscapes in Kalimantan and Riau, Indonesia. We collaborated with Helikonia, a consultancy with extensive palm oil disclosure experience, to determine the most material topics. We also engaged with selected stakeholders to ensure that we were responsive to pertinent issues. International and sector-wide platforms also guided our reporting. This includes referring to leading benchmarks such as the Zoological Society of London's Sustainable Palm Oil Transparency Toolkit (ZSL SPOTT).

Materiality (p17) 

S U S T A I N A B I L I T Y R E P O R T 2 0 2 2

entered into 25-year agreements with six communities covering nearly 15,000 hectares. These agreements will help local families increase their earnings and independence while teaching them the importance of having a balanced approach towards forest conservation and the sustainable use of natural resources. We are looking to build on these successes by entering into broader stakeholder partnerships covering larger areas, landscapes and jurisdictions. Future efforts will include increasingly engaging with our suppliers and other contracted parties on our sustainability initiatives. We hope to improve their compliance and ensure our products are free from deforestation, peat degradation, and burning and do not otherwise violate our sustainable production policies.

When I launched Bumitama in 1996, I could never have imagined growing our operations from those initial 15,000 hectares to the nearly 188,000 hectares now under our control. It is an achievement beyond my wildest dreams. Since day one, I have committed to giving back to the communities where we operate by sharing our success. I am thrilled that we have now partnered with plasma smallholders covering 55,529 hectares. Our plasma smallholder partners, to whom we have allocated almost 30% of our total planted area, are an essential part of our sustainability agenda. We also plan to integrate production from 50,000 hectares of independent smallholder land into our supply chain by 2027 as part of Bumitama's palm oil income-generating programme. We will assist these independent smallholders with and provide training on replanting, yield improvement, market access, and meeting Indonesia Sustainable Palm Oil (ISPO) and Roundtable

on Sustainable Palm Oil (RSPO) certification standards. We are privileged to share their ancestral land and must ensure that these communities continue to flourish and benefit from our activities.

While our commitment to sustainability is driven first and foremost by a desire to be responsible corporate citizens, I fully recognise we need robust sustainability performance to maintain our operating license. Financial institutions, civil society, and governments continue to raise the bar on sustainable production and expect us to improve continuously. It is sometimes frustrating to deal with suspicion and criticism of palm oil in Western markets. Our response is to counter such claims by improving our sustainability performance, communicating our sustainability policies, and educating stakeholders. In 2022 we have launched an updated version of our Sustainability Policy, which builds on our inaugural policy launched in 2015. This new policy addresses increased expectations from our stakeholders and challenges created by accelerating climate change and other emerging sustainability issues. We have thoroughly reviewed the policy in consultation with some of our long-term partners to ensure it meets and exceeds sustainability best practices.

To conclude, I encourage everyone at Bumitama to embrace innovation, aspire to greatness, and engage in forward-thinking action. I thank everyone who walks with us on this path towards a better world.

Gunawan H. Lim

Executive Chairman and Chief Executive Officer