InfoSAWIT, BALI – Anita Neville, Chief Sustainability and Communications Officer of Sinar Mas Agribusiness & Food, emphasized the importance of sharing data related to product carbon footprints and emission intensity with customers to reduce carbon emissions in the supply chain. This is seen as a significant opportunity for the company and its business partners to achieve sustainability goals.
“We see a great opportunity in sharing this data, especially regarding product carbon footprints. With our customers, we can invest together to reduce carbon emissions throughout the supply chain (scope 3), through our business and supply chain,” Neville stated during the 7th International Conference on Oil Palm and Environment (ICOPE) on the first day in Bali.
Neville reported that in 2022, the company's baseline emissions reached 29.5 million tons of CO2e. The majority of these emissions stem from activities related to palm oil across all sector categories. The remainder comes from activities outside palm oil, such as energy, logistics, and packaging.
“The largest proportion of our carbon footprint lies within the supply chain (scope 3), both related to palm oil and outside palm oil activities. We believe this figure will continue to change as we work to reduce the use of default values in calculating carbon footprints,” she explained.
Sinar Mas Agribusiness & Food has set ambitious emission reduction targets, aligned with the Science Based Targets Initiative (SBTi) methodology. While the company's aspiration is to achieve net-zero emissions by 2050, Neville stressed the importance of setting short-term targets to ensure consistent progress.
“We aim to reduce palm oil-related emissions by 30% from the 2022 baseline by 2030, and reduce non-palm oil-related emissions by 42% in the same period. These targets also consider our future business growth,” she stated.
Neville noted that the solutions to achieve these targets are already known. “This is not rocket science. We know what needs to be done. The challenge lies in the affordability and funding of these solutions, as well as how to implement them comprehensively across the supply chain,” she said.
Some of the strategic priorities the company is pursuing include landscape governance changes and carbon removal, optimizing land use, and enhancing carbon absorption. Additionally, the use of renewable energy and energy efficiency through increased use of clean energy and reduced energy consumption, as well as engaging third-party supply chains to support business partners in implementing sustainable practices.
Commitment to Conservation
As a major company managing approximately half a million hectares of oil palm plantations, Sinar Mas Agribusiness & Food has also set aside around 80,000 hectares of forest for conservation. This step is part of the company's long-term commitment to not engage in deforestation and not exploit communities in its operations.
“We are committed to preserving the environment and supporting sustainability through concrete actions. This is not just a responsibility but also an opportunity to create a positive impact for the industry and society,” Neville asserted.
Neville also emphasized that collaboration between companies, customers, and the supply chain is key to achieving sustainability goals. “The issue of emissions in the supply chain is a shared responsibility. The solutions we implement benefit not only us but also our customers and business partners. We are all in this together,” she concluded.
With concrete steps and a strong commitment, Sinar Mas Agribusiness & Food hopes to lead the transition towards a more sustainable and environmentally friendly palm oil industry. (T2)
