FAP Agri is committed to making significant contributions to environmental protection and the preservation of the environment, as well as efforts to mitigate global climate change. We implement various actions to manage the impact of our operational activities and demonstrate our commitment to environmental sustainability, in line with Presidential Regulation of the Republic of Indonesia No. 61 of 2011 concerning the National Action Plan for Greenhouse Gas Emission Reduction (RAN-GRK).

We implement two main approaches to support greenhouse gas (GHG) emission reduction programs. The first approach is the management of energy use, particularly electricity and fuel. By reducing electricity and fuel consumption, we contribute to lowering CO2 emissions, given that much of the electricity is generated from fossil fuel power plants. Additionally, we focus on reducing GHG emissions at our facilities, including emissions from palm oil mill waste or Palm Oil Mill Effluent (POME). We also explore more environmentally friendly innovative technologies. The calculation of GHG emissions is conducted regularly using the GHG Calculator provided by ISPO. Our GHG emission control program includes:

1. 1. Implementing the "from waste to energy" concept by replacing diesel fuel in plant operations with biomass, which results in lower GHG emissions.
   2. Adhering to the Zero Burning Policy as per applicable regulations and ISPO principles.
   3. Not clearing new land in areas with a Letter of No Objection (SKT) or engaging in peatland exploitation to prevent carbon release into the atmosphere.
   4. Improving energy efficiency through the use of energy-saving equipment.

These efforts reflect our commitment to supporting the Government's goal of achieving carbon neutrality by 2060 and meeting Sustainable Development Goal (SDG) No. 13, which is to take urgent action to combat climate change and its impacts. We continually assess various aspects of the company that may contribute to GHG emissions.

FAP Agri prioritizes responsible waste management. Waste from palm oil cultivation must be managed efficiently to prevent potential environmental pollution. The waste generated from processing Fresh Fruit Bunches (FFB) into Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) includes solid, liquid, and gaseous waste. Solid waste from palm oil production, such as empty fruit bunches, shells, fibers, and kernel cake, is repurposed as fuel and fertilizer. Boiler ash is used as a source of fertilizer, and fibers are processed through composting.

Hazardous and toxic waste (B3) generated from production processes is managed rigorously. All B3 waste is temporarily stored in government-approved Temporary Storage Places (TPS). B3 waste is transported by licensed carriers in compliance with government regulations.

Liquid waste from palm oil mills is utilized in Land Application practices due to its essential nutrient content. Palm oil mills process liquid waste using Land Application methods that meet standard quality benchmarks. FAP Agri also utilizes surface water from rivers and streams for plantation and palm oil mill operations. Efforts to maintain water sources and the use of clean technologies help sustain surface water supplies, in alignment with our commitment to the 3R (Reuse, Recycle, and Recovery) concept in waste and environmental management.

FAP Agri conducts regular environmental monitoring and is committed to adhering to environmental standards. This monitoring aims to assess the impact of the company's activities on the environment and ensure compliance with government-set quality benchmarks. Environmental management at FAP Agri focuses on preventing or mitigating negative environmental impacts. Some of the measures taken include:

1. 1. Routine watering of main roads to control dust.
   2. Maintenance of company trucks and requiring third-party FFB transport contractors to maintain their vehicles.
   3. Use of dust collectors on boilers to reduce dust emissions.
   4. Mandating that all workers and boiler operators use Personal Protective Equipment (PPE) such as masks, gloves, work boots, and safety glasses.
   5. Planting green vegetation around residential and office areas to improve environmental quality.

Through these actions, FAP Agri strives to maintain harmony between company operations and the surrounding environment.