Greenhouse gases (GHG) associated with the greenhouse effect and subsequent global warming are caused by the accumulation of mostly carbon dioxide and other gases such as methane and nitrogen dioxide in the atmosphere. The principal sources of GHG emissions in our operation area are carbon dioxide emissions arising from changes in carbon stock during the development of new plantations and methane emissions from palm oil mill effluent (POME) ponds. In line with our Policy on Sustainable Palm Oil, we are dedicated to developing plans that will progressively reduce our GHG emissions.

REDUCING EMISSIONS FROM LAND USE CHANGE

Since 1 July 2015, as part of our “No Deforestation, No Peat and No Exploitation” (NDPE) commitment, we have not undertaken any new developments on peat areas at any depth, as well as areas identified as High Carbon Stock (HCS) forests using the HCS Approach. We believe that this will help reduce our Group’s overall emissions significantly over the long term.

REDUCING EMISSIONS USING METHANE CAPTURE

We have operational methane capture facilities at eight of our mills. The estimated reduction in GHG emissions for each facility is approximately 0.51 tonne of carbon dioxide equivalent (tCO2e) for each tonne of crude palm oil produced, based on the International Sustainability Carbon Certification calculation methodology.

In 2022, these methane capture facilities helped the Group to avoid the emissions of approximately 213,000 tonnes of tCO2e in GHG emissions. In the same year, we installed a new methane capture facility at another of our mill.

As at 31 December 2022, 51,020 hectares of our nucleus plantations and six palm oil mills are certified under the ISCC scheme. ISCC-certified products must have at least 35% of GHG emissions savings as compared to fossil fuels which have an emission value of 83.8 grams of carbon dioxide equivalent per megajoule (referring to EU-Renewable Energy Directive 2009).