Kencana Agri Ltd

"Our plasma partnership programs share the best practices with local smallholder farmers, providing practical trainings and quality seed stock, advising on fertilizers and pesticide procurement and utilization, introducing new farming technologies, and assisting with land titling and transporting of FFB to palm oil mills. [...] Our plasma partnership program has resulted in numerous positive social-economic impacts for the farmers. For instance, the quality-of-life of a small village called Tempilang near our SWK’s operations has improved significantly, generating positive benefits of socio-economic development for the area and the local communities for the last 20 years. Their yield has increased remarkably that a cultural event, Ruahan is organized to celebrate their harvest annually." [...] "Through our Plasma Programme, over 8,000 local villagers who were previously plantation workers have now become new plantation owners."

"Our Community Development and Social Impact sustainable commitment as follows: [...] • Respect the rights of indigenous and local communities to give or withhold their Free, Prior and Informed Consent (FPIC) on lands to which they hold legal, communal or customary rights in line with applicable government regulations."

"By tracing supply flows, we can map our supply base, evaluate supplier performance against our sustainability policy, and engage with our suppliers to drive continuous improvement."

Kencana Agri, through one of our largest operations PT Sawit Kaltim Lestari, continues our collaboration with Golden Agri Resources (GAR) in a joint Sustainability Development Program study, which aimed to improve sustainability practices especially on product traceability, health and safety, workers’ capabilities and competencies, and many more. On top of that, GAR has been actively support us as one of their suppliers through on-line knowledge sharing sessions, namely trainings seminars, group discussion. The COVID-19 pandemic in 2020 did not subdued this collaboration with GAR in knowledge sharing and workers competencies improvement. As many as 68 employees from Kencana Agri participated in these knowledge sharing sessions which were all held through online platforms with various topics, namely: • Global Forest Watch Webinar, • Fair Employment of Casual Workers, • Setting Fair Targets and Wage Policies, • Mitigate Risk of Child Labour, • Planning and Implementation of Participative Community Empowerment Programs, • Handling Social Grievance and Conflict Resolutions, • FPIC Implementation in Sustainable Palm Oil Industry, • Social Dialogue and Effective Negotiation in Palm Oil Supply Chain, and • Sustainability Report as an Effort Towards Compliance and Seizing Global Markets."

"We follow conducts and principles of No Deforestation of high carbon stock areas and the preservation of high conservation value areas, no burning and no new planting on peat of any depth as well as no exploitation of human rights....The Audit and Risk Committee was formed to assist the board in creating and maintaining an effective internal control system to safeguard the Group’s assets, and integrity of the operations of the Group, and to ensure compliance with relevant regulations and legislations applicable in the Company, including those related to sustainability issues...In carrying out its duties, the Group's risk management committee conducts a meeting quarterly and identifies its key risks to assess the effectiveness of the risk management and internal control systems, especially dealing with financial, operational, compliance and climate change risks. Furthermore, these risks are reviewed and are subsequently reported to the Audit board and the Risk Committee. As part of Kencana Agri’s risk management principles, the Group took our utmost attention to precautionary approaches in everything that we do, including our operational impacts to the environment and society. This precautionary approaches and principles are embedded into our management systems and operational control measures, which are based on the Plan-Do-Check-Action cycle to ensure its consistency

In their 2021 sustainability report Kencana Agri Ltd report that "This year, the Group produced 585,285 tonnes and 134,237 tonnes of FFB from the nucleus and plasma estates respectively, totaling to 719,522 tonnes of FFB which then processed in our mills to produce a total of 149,646 tonnes CPO."

"As our commitment towards environment, we undertake High Conservation Value (HCV) Assessments as well as Social and Environmental Impact Assessments for all our new development areas"

"Kencana Agri has been actively implementing ISCC, ISPO and PROPER Principles and Criteria in all of our operations. Our mills and estates have been audited by third-party independent parties to assure that our implementation adheres to the high standards of those standards...PROPER was implemented at all of our operation areas. We work together with regional and national PROPER Committee in conducting regular reviews and assessments. I to ensure that PROPER principles were implemented thoroughly and properly at all plantations".

"Stakeholder engagement in Kencana Agri is driven by the desire to build mutual respect and understanding of the ongoing tasks needed to achieve key sustainability goals. The stakeholder engagement process which includes a proactive and both formal and informal approach, is carried out to fully understand our stakeholder’s sustainability concerns and issues with a view to ensuring that their key interests in these areas are aligned with that of our Group. By getting to know our stakeholders, we are able to better understand what they want and how the companies' plans and actions will affect their expectation...The following tables provide an overview of the efforts involved in our group’s focus on stakeholder engagement..."