Sustainability

Sustainability Approach

FAP Agri strives to continuously apply sustainability principles in every aspect of its business activities, aiming to produce high-quality and sustainable palm oil products. We focus on three main pillars:

    1. Operational Sustainability (Prosperity): We are committed to maintaining a healthy financial balance to support the company’s ongoing operations.
    2. Kesejahteraan masyarakat (People): Kami berusaha menciptakan nilai tambah bagi semua individu yang terlibat dalam aktivitas Perusahaan, memperhatikan kesejahteraan mereka.
    3. Pelestarian lingkungan dan keberlanjutannya (Planet): Kami berperan aktif dalam melindungi lingkungan dan menjaga keberlanjutannya, sebagai warisan untuk generasi mendatang.

With this approach, we aim to ensure that sustainability is the core of our operation, for the benefit of our future generations.

Scope of sustainability

The provisions of this policy apply to all current and future operations and subsidiaries. This includes refineries, factories, or plantations owned or managed by the Company, as well as third parties engaged in business relationships with the Company. All parties involved are expected to comply with this policy. The formulation of the Company’s policies and strategies is based on the following principles:

High productivity and efficient cost management are key to the company's sustainability.

We continuously strive to improve the quality of life for communities living around the Company. Involvement and empowerment of local communities, as well as fostering a positive societal role, have been goals of the Company’s plantation development and operations since its establishment.

We are committed to developing sustainable and environmentally friendly palm oil plantations. Our measures include protecting areas with High Conservation Value (HCV) and High Carbon Stock (HCS), using fire-free land management, implementing waste management practices, and mitigating greenhouse gases.

Sustainability
Policy

FAP Agri is a company that manages palm oil plantations, palm oil mills, and palm kernel processing plants, with its headquarters in Jakarta. We hold concessions in North Kalimantan, East Kalimantan, and Riau. The company’s primary activities include palm oil cultivation, processing Fresh Fruit Bunches (FFB), producing Crude Palm Oil (CPO), Palm Kernel Expeller (PKE), and Palm Kernel Oil (PKO). Through this Sustainability Policy, we and all our subsidiaries understand the importance of a commitment to sustainable development. The company strives to comply with legal regulations, implement best plantation practices, and optimize the use of natural resources, which must align with efforts to protect the environment and improve the quality of life for communities, particularly those around our concessions. The company also collaborates with stakeholders, including the government, suppliers, customers, communities, non-governmental organizations, and academia, to achieve our commitment to sustainable palm oil.

Compliance with laws is a fundamental essence for the Company’s sustainability.  

    1. Adhere to applicable laws, policies, and government regulations.
    2. Commit to continuously raising awareness among all staff and employees to comply with laws, policies, and regulations related to the Company's operations.

FAP Agri is committed to practicing responsible management in accordance with environmental and ecosystem regulations. Our primary goal is to adhere to sustainable development principles to safeguard the interests of both current and future generations.

The Sustainability Policy in environmental management includes the following provisions:

 

    1. No Deforestation
      The clearing of forests or development of new land identified as High Conservation Value (HCV) areas or High Carbon Stock (HCS) areas is prohibited. This is to protect primary forests and maintain forest sustainability and carbon content.
    2. Protecting Conservation Areas and High-Value Conservation Areas
      Our commitment is to preserve biodiversity and protect forests within FAP Agri's concession areas. This includes areas with High Conservation Value (HCV) and High Carbon Stock (HCS) under the company's control. We also support SDGs Goal No. 15, which pertains to terrestrial ecosystem conservation, sustainable forest management, and biodiversity preservation
    3. Fire-Free Land Policy
      We maintain a policy of fire-free land clearing, whether for new planting or replanting. We also implement regular fire prevention and control measures, including training personnel for wildfire management
    4. No New Development in Peatlands
      New planting development in peatland areas is not conducted in accordance with prevailing regulations. Peatlands play a crucial role in climate change mitigation and must be managed carefully.
    5. Commitment to reducing Greenhouse Gas Emissions

Our commitment is to support government efforts to achieve carbon neutrality (Net Zero Emission) by 2060 and to support SDGs Goal No. 13, which relates to climate change. Various measures are taken to reduce GHG emissions, including managing energy use, replacing fossil fuels with biomass, and enhancing energy efficiency in operations.

FAP Agri builds positive relationships with communities in its operational areas. We also conduct Corporate Social Responsibility (CSR) programs with a focus on empowerment and self-sufficiency.

 

Rights and Community Empowerment

 

    1. Recognize and respect the customary rights of indigenous people and local communities by implementing Free, Prior, and Informed Consent (FPIC) mechanisms optimally.
    2. Create job opportunities for local communities and develop their economic potential.
    3. Support communities through Corporate Social Responsibility (CSR) programs.
    4. Conduct Social and Environmental Impact Assessments (SEIA).
    5. Empower the economy in over 49 villages interacting directly with the Company across all concessions, positively impacting over 15,000 people.
    6. Provide river transport facilities to ease access between villages.
    7. Manage over 13 health facilities (clinics) in the Company’s operational areas, staffed by more than 31 healthcare professionals, including doctors, midwives, and nurses.

FAP Agri creates a work environment that supports optimal performance, safety, and employee well-being. We seek and retain employees who can realize their potential and facilitate their continuous development through training and learning.

 

a. Respect for Human and Worker Rights

    1. We respect and support universal human rights principles in accordance with the UN Universal Declaration of Human Rights for all workers, contractors, indigenous peoples, and local communities affected by the company’s operations.
    2. We do not tolerate child labor, illegal workers, discrimination, forced labor, sexual harassment, or any other forms of abuse.
    3. We comply with minimum wage regulations established by the government.
    4. We respect the right of all workers to form or join labor unions and/or worker cooperatives in accordance with government regulations.

 

b. Gender Equality

    1. We protect female workers from discrimination and gender-based violence.
    2. We provide equal pay for equal work, regardless of gender.

 

c. Health and Safety

    1. We strive to protect workers from safety and health hazards, as well as exposure to harmful chemicals.
    2. We provide a decent work environment based on occupational health and safety (OHS) principles, ensuring it is safe and comfortable for all employees, including facilities such as housing, places of worship, child care centers, clinics, schools, and sports facilities.
    3. We continuously work to comply with all company procedures and achieve zero accidents in the workplace.

 

d. Stakeholder Engagement

    1. We provide information to stakeholders on social, legal, and environmental issues, and actively participate in multi-stakeholder industry forums to achieve sustainability across all sectors.

As a key element in maintaining product quality, FAP Agri ensures that all Fresh Fruit Bunches (FFB) processed by the company can be traced back to the farmer’s plantation. This is a crucial measure to assure buyers that the supplies we receive come from legally recognized farmers.

FAP Agri is committed to establishing a sustainable and responsible supply chain system through our commitment to the supply chain and support for smallholders.

 

a. Supply Chain
The company strives towards a traceable and verifiable palm oil supply chain.

 

b. Smallholder Support
Suppliers must commit to adhering to our company’s sustainability policies.

Gedung Gold Coast, Tower Liberty Lt. 16 A- H Jl. Pantai Indah Kapuk, RT.6, RW.2, Kamal Muara, Penjaringan, Jakarta Utara 14470

corp.secretary@fap-agri.com

(021) 50205811

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