Golden Agri-Resources’ latest Sustainability Report tracks progress on supply chain transformation

IMG SRC: Pixabay

Golden Agri-Resources’ (GAR) Sustainability Report 2017 highlights important milestones in the company’s efforts to transform its palm supply chain. GAR achieved 100 percent Traceability to the Plantation (TTP) at the end of 2017 for its 44 owned-mills. This means that 39 percent of GAR’s palm supply chain is now fully traceable. GAR is now working with over 420 third-party supplier mills to help them achieve TTP by end-2020.

“TTP means we can guarantee the provenance of our raw materials and is in line with the efforts of others in the sector, including our major customers, who are also working on full transparency of their palm supply chain. For us, this achievement is an essential part of our wider efforts to help our suppliers change for the better. Through deeper engagement, we reduce supply chain risks while helping our industry become more responsible and resilient,” said GAR Chairman and CEO, Franky Oesman Widjaja.

In parallel with its mapping efforts, GAR is carrying out targeted site visits; monitoring suppliers as part of risk assessment and management; and assessing their needs to help them upgrade their capacity to implement responsible practices. As part of its ongoing outreach, GAR holds annual SMART SEED (Social and Environmental Excellence Development) workshops for its suppliers with practical themes such as achieving certification, improving labour practices and implementing traceability. GAR also holds special workshops as needed, and in 2017, organised a workshop for suppliers to heighten awareness of the protected status of the Leuser Ecosystem in Aceh, as well as how to improve procurement practices to avoid sourcing from growers who may be operating in that protected area.

The achievement of full TTP will help GAR share responsible practices with more agents, brokers and smallholders in its supply chain.

The progress made in this area aligns with UN Sustainable Development Goal (SDG) 12 – Responsible Consumption and Production – as GAR tries to improve the livelihoods of its suppliers especially small farmers while ensuring sustainable production.

In 2017, GAR also made a breakthrough in long-term yield improvement through the launch of two new planting materials – Eka 1 and Eka 2. These non-GMO clonal seeds, which can potentially produce more than 10 tonnes of CPO per hectare per year, are set to revolutionise productivity and will be rolled out progressively in GAR plantations starting in 2022. Eka 1 and Eka 2 are the results of GAR’s longheld belief in investing in technology and R&D to advance sustainable productivity, while reducing the need to open more land for agriculture. This puts GAR on track to deliver UN SDG 2 which aims to increase agricultural productivity to relieve global hunger.

GAR continued to make progress on other fronts including its innovative community conservation partnerships. Participatory Mapping and Conservation Planning continued apace with 13 villages in conservation partnerships to protect more than 7,000 hectares of High Carbon Stock (HCS) forests. GAR’s progress on forest conservation and other environmental initiatives contributes to the achievement of UN SDG 15 — the protection of Life on Land.

The SR2017 is based on Global Reporting Initiative (GRI) Standards Reporting Guidelines. The full report can be viewed on the GAR website. GAR has been publishing a Sustainability Report since 2011.