TAPG realizes the importance of preserving the environment for the sustainability of the Company's business. Therefore, we always ensure that all subsidiaries implement and develop sustainable and eco-friendly palm oil plantation practices. Plantation management is carried out based on the Best Management Practices or the Good Agricultural Practices by making the efforts to protect and manage the environment, such as:

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• Protection of high conservation value (HCV) areas and biodiversity;

• Protection of high carbon stock areas (HCS);

• Mitigation and reduction of air pollution and greenhouse gas emissions;

• Protection of organic clay muck (OCM) areas;

• Management of water resources and the control of chemicals usage.

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One of the efforts to manage the areas with high conservation value is partnership between the Company and the independent research institute of Ecology and Conservation Center for Tropical Studies (ECOSITROP). This collaboration aims to manage and monitor the multifunctional conservation area of the Mayong Merapun Forest, covering an area of ​​approximately 600 hectares, located in Merapun Village, Kelay Sub-district, Berau District in East Kalimantan. The Company focuses on the preservation of biodiversity, both flora and fauna, including the conservation of the orangutan (Pongo pygmaeus) population living in the area.

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The company's efforts to manage, maintain and preserve the multifunctional conservation of the Mayong Merapun Forest can be seen in the video.

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Conservation Area Management

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TAPG has developed Integrated High Conservation Value (HCV) and High Carbon Stock (HCS) management and monitoring plan based on recommendation from HCV-HCS Assessors since 2014.

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The TAPG’s Integrated HCV-HCS management and monitoring plan document is based on considerations of ecological aspects, biodiversity conservation, landscape approach, preservation of local wisdom and meeting the needs of local communities.

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Some of the associated HCV-HCS management and monitoring programs are:

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1. HCV-HCS areas delineation and demarcation;

2. Establishing institutions for the management and monitoring of HCV-HCS areas including:

   • Strengthening capacity in identification, management, monitoring, and evaluation of HCV-HCS areas within the company

1. Socialization, education and consultation programs for all stakeholders;

2. Annual monitoring and evaluation of HCV-HCS data to determine the current condition of the HCV-HCS area values.

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In 2021, we conducted study on integrating HCV-HCS to all our subsidiaries. This study aims to update the conservation area management activities in the company and its surroundings, and latest information of biodiversity contained in managed area. This activity was carried out by Advanced Life Support (ALS) assessors from Daemeter, Greenera and Ecotrop.

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Climate Change Risk

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Climate change is a risk to our planet and prosperity where today we can see the impact around the world on the increasing temperatures, floods, extreme weather, changes in rainfall, and rising sea levels. TAPG aware of how the climate change would affect the palm oil operation and have taken measures to mitigate climate change impact.

Climate change will have multiple effects on oil palm yield, depending on the specific climatic conditions at a location, and changes to pests and diseases of oil palm. Therefore, TAPG have assessed the climate risk that would cost impact to our palm oil operation and how the Company could mitigate the impact of the climate risk. TAPG’s assessment on the climate risk assessment can be found here.

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Reducing Greenhouse Gas Emmisions

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TAPG has identified every greenhouse gas (GHG) emissions sources and calculated annualy. We strive to the Best Management Practices to reduce our carbon footprint throughout our palm oil mill operations. We set up metane capture facilities at PT. SKM at the end of 2022. It has a capacity of 60,000 m3 and afford to produce 2 Megawatt of electricity to operate the Kernel Crushing Plant and the, Palm Oil Mill and domestic power needs of PT. SKM. We are committed to keep reducing GHG emissions came up from palm oil mill liquid waste (POME).

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Our mills also use biomass, including by-products from mills (empty fruit bunches, shells and mill fiber), to generate electricity. These efforts contribute to reduce our consumption of fossil fuels, and diesel-fired power generators.

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TAPG has reported scope 1 and 2 emissions (combined scope 1 and 2 reporting) in our yearly published Sustainability Report. The emissions are calculated using the RSPO GHG calculator and adjusted to GHG Protocol, the world's most common greenhouse gas calculation standard. This calculation aims to record the value of GHG emissions from operation carried out by subsidiary companies. This baseline value will be used as a guide for developing a GHG emission management and mitigation plan.

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