InfoSAWIT, BALI – In the issue of climate change, the agricultural sector plays a dual role. According to Anita Neville, Chief Sustainability and Communications Officer of Sinar Mas Agribusiness & Food, agriculture or food systems are both "actors" and "victims" in the ongoing climate crisis.
"As an actor, agriculture is responsible for 30% of global greenhouse gas (GHG) emissions. This is a significant carbon footprint for our planet. However, on the other hand, this sector is also highly vulnerable to the impacts of climate change and biodiversity loss," Neville stated during the 7th International Conference on Oil Palm and Environment (ICOPE) Day 1, attended by InfoSAWIT, on Wednesday, February 12, 2025.
She added that the increasing Climate Risk Index shows that many countries in the Asia-Pacific region are among the top 40 most vulnerable to climate change. "Rural communities and farmers are the most affected. In Indonesia, for example, increasingly frequent floods have impacted supply chains, logistics, and overall productivity," she explained.
Neville also revealed the impact of consistently high temperatures on pollination and palm oil behavior. "We have not even begun to assess the impact of extreme temperature days on labor productivity and its implications for the push towards automation and mechanization in our industry," she added.
As Chief Sustainability Officer, she is often asked how the company's sustainability strategy aligns with its business strategy. "My answer is always the same: sustainability is our business strategy. Climate change and biodiversity loss are existential threats to every business in the world, including in Indonesia. This is a business imperative," she emphasized.
To address these challenges, Sinar Mas Agribusiness & Food has taken several concrete steps. "We have intensified our investigation into our carbon footprint, improving the quality and granularity of the data we collect, and aligning our approach with internationally recognized best practices," Neville explained.
Throughout 2022 as a baseline year, up to 2023, the company has mapped its emissions based on Scope 1, 2, and 3, and set targets aligned with the Science Based Targets Initiative (SBTi) methodology. "This provides clear direction on how to reduce our carbon footprint," she stated.
Supply Chain Challenges
Neville revealed that approximately 77% of the company's carbon footprint comes from Scope 3 or third-party supply chains. "This is a significant challenge but also an opportunity. If 78% of our carbon footprint comes from the supply chain, then our solutions can also be solutions for our customers, most of whom are global food brands," she explained.
She emphasized that around 90% of emissions from fast-moving consumer goods (FMCG) brands come from Scope 3. "This is a shared responsibility. My challenge in addressing Scope 3 is also my customers' challenge. Our solutions can be their solutions. We are in this together," Neville asserted.
Neville stressed that efforts to reduce carbon footprints are not only a responsibility but also an opportunity to create commercial advantages. "This is an issue that involves the entire supply chain. With the right collaboration, we can create sustainable and profitable solutions for all parties," she concluded.
With a strong commitment to sustainability, Sinar Mas Agribusiness & Food hopes to set an example for other industries in facing the challenges of climate change and biodiversity loss. (T2)
