ENG IND
Material topics relevant to lonsum palm oil operations
  1. Protection of Forests, Peatlands and Biodiversity 
  2. Fire Control and Haze Prevention
  3. Climate Change and GHG Emissions
  4. Water, Waste and Effluents
  5. Use Of Fertilisers, Pesticides and Chemicals
  6. Responsible Business Conduct (RBC)
  7. Community Rights and Relations
  8. Occupational Health and Safety
  9. Smallholder Engagement and Livelihoods
  10. Supply Chain Traceability and Transparency
  11. Sustainability Certification
  12. Product Quality and Safety
  13. Yield Resilience and Innovation
  14. Human, Child and Labour Rights
  15. Pandemic Resilience
Pandemic Resilience

Relevant Topics 15

No Goal/Target Progress (see pages 27-46)
1 Communicate business continuity plans in the face of significant disruptions Updated and communicated business continuity plans in line with changing government regulations
2 Conduct annual reviews of Business Continuity Management to stay updated and prepared Reviewed Business Continuity Management 
3Regularly assess key risks in supply chain Identified key risks posed by pandemics
4 Engage employees, smallholders and communities that Lonsum operates in on matters related to pandemic preparedness
Established Task Force to socialise pandemic protocols to stakeholders
Responsible Business Conduct

Relevant Topics 16

No Goal/Target Progress (see pages 27-46)
1 Zero cases of bribery and corruption
 Zero confirmed incidents of bribery and corruption in our operations in 2020
Protecting Our Environment

Relevant Topics 1, 2, 3, 4, 5

No Goal/Target Progress (see pages 27-46)
1 Reduce energy consumption ratio in palm oil mills 1% reduction of energy consumption per tonne of FFB processed at ISPO/PROPER mills compared to 2019
2 Reduce GHG emissions per tonne of palm product 1% reduction in GHG emissions per tonne of palm product, compared to 2019
3 Reduce water consumption ratio in palm oil mills 5% reduction of water consumption per tonne of FFB processed at ISPO/PROPER mills compared to 2019
4 Maintain effluent levels to be within local regulation thresholds All effluent levels within regulation thresholds
5 By 2020: ISO 14001 certification for 11 mills Achieved
6Continue maximize use of renewable fuel (palm shell )
98% of fuel used in mills is from renewable products.
7Continue to strengthen fire mitigation procedures
Completed 3 fire control training days in 5 estates in 2020
8Ensure quality of training for fire control teams and fire specialists across all our plantations
Our fire specialists receive regular training conducted together with the Ministry of Environment and Forestry, the military, police, and the local government

9Continue to engage local communities and villages on fire-fighting and prevention
Engaged 32 villages on fire prevention since 2017.
10No planting on peatland and continue maintaining peat water levels
Since 2013, no new planting on peatlands and water levels maintained in all peatlands under our control

11Compliance with our policy of no deforestation and zero HCV loss
No primary forest or HCV land was affected during new planting and replanting in 2020
12To achieve 100% use of available organic fertilizer (Empty Fruit Bunches (EFBs) and Palm Oil Mill Effluent (POME) from our mills)Achieved


13Continue to improve on Integrated Pest Management to reduce reliance on chemical pesticide use
5% decreased of total pesticides used compared to 2019
Sourcing Traceability

Relevant Material Topics: A, C, D, E, F, G, H, I, J

Certification is a key tool to help deliver on our Policy goals on deforestation, peatland, burning and human rights. Please see detail on sourcing targets below.

No Goal/Target Progress (see pages 47-58)
1 By end 2023: ISPO certification for all estates
 Achived 94% of targeted hectarage
2 By end 2023: ISPO certification for all estates Achieved certification for 8 out of 12 mills. Additional 2 mills have undergone first round of audits
3By 2020: 100% of FFB we process is sourced in accordance with Policy
Achieved
4 By 2025: 100% of FFB we process is ISPO-certified On track; 95% of FFB we process in 2020 is ISPO-certified
5Capacity-building for third-party FFB suppliers
Regularly engaged third-party FFB suppliers to ensure compliance with Policy
6Support 11 KUDs to be ready for smallholders ISPO certification
On track; 1 KUD achieved ISPO certification, 8 KUDs completed first round of audits, and 2 KUDs
7Continue capacity building programmes for smallholders working with Lonsum
Launched Sustainable Oil Palm Smallholders Forum which provided capability building programmes for smallholders
8Ganoderma-tolerant seed production to meet annual replanting requirements for owned plantations since 2018
Continued to improve in R&D on Ganoderma-tolerant seeds
9Conduct R&D for climate change resilience and adaptation
Continued to improve in R&D on dr ought-resistant seeds

Figures cover hectarage or number of mills that are already certified or have ISPO first stage audit. The certificate release date is subject to the accreditation period of the certifying body. Hectarage data are based on planted areas on 31 December 2019. One mill ceased operations in 2017 thus we have a total of 11 operational mills.
Our People

Relevant material topics: E, F, J

No Goal/Target Progress (see pages 59-72)
1 Zero fatalities (across total workforce) We regret to report one fatality in our palm oil operation
2 Reduce accident frequency rate (AFR) by 10% between 2018-2020 AFR remained stable from 2018 level at 0.6
3 By 2020: SMK3 certification for 11 mills10 mills received SMK3 certification. 1 mill audited
4Comply with all Indonesian laws and regulations on human rights and labour rights
Full compliance with regulations across all operations
5Revise safety plans for pandemics to ensure safety of workers
Safety plans revised to account for pandemics
6Maintain no forced labour or child labour in our operations and suppliers
Zero incidents of forced labour or child labour
Land Rights
No Goal/Target Progress (see pages 27-46)
1 Comply with all Indonesian laws and regulations on land rights and land management
 Full compliance with regulations
2 Maintain zero incidents of FPIC violations on new development area
 Zero incidents of FPIC violations on new development area