Jakarta, 18 September 2017 – Sinar Mas Agribusiness and Food, operates under Golden AgriResouces (GAR), has been included in the 2017 Dow Jones Sustainability Indices (DJSI) (Asia-Pacific) in recognition for its corporate sustainability leadership within its industry. This marks the first time that GAR is made a member of the DJSI which was launched in 1999. GAR is the only Southeast Asian palm oil company to be included in the Food, Beverage and Tobacco sector in Asia-Pacific. It is also one of five Singapore-listed companies in the index.
“We are proud to achieve international recognition for the efforts and resources we have put into ensuring responsible palm oil production. This will help spur us to continue to make sustainability an integral part of how we do business,” said Agus Purnomo, Managing Director for Sustainability and Strategic Stakeholder Engagement.
“Achieving membership of the DJSI is a significant milestone for us and demonstrates that Sinar Mas Agribusiness and Food is serious when it comes to implementing responsible palm oil practices. Through our active participation in the assessment for DJSI, we are also trying to align what we do with global best practices,” said Rafael B. Concepcion Jr., Chief Financial Officer.
Key responsible palm oil initiatives by Sinar Mas Agribusiness and Food include efforts to make forest conservation a practical reality. Having identified an area equivalent to the size of Singapore to be set aside for conservation, the company is now entering into partnerships with local communities to secure agreements on communal conservation forests. Concurrently, Sinar Mas Agribusiness and Food helps the communities start alternative livelihoods such as organic farming on spare communal land so that they can earn an income without disturbing sensitive eco-systems. Successful conservation is key in avoiding Greenhouse Gas (GHG) emissions. Additionally, the company is using methane capture facilities to cut GHG emissions and recycling 100% of its production waste to minimise its environmental footprint.
Another key initiative includes supply chain transformation through intensive engagement. Aside from working with its suppliers to achieve traceability to the plantation, Sinar Mas Agribusiness and Food is using the increased interaction to understand issues facing suppliers when adopting responsible palm practices. This information is used to design targeted intervention strategies such as special training, workshops and the setting up of a dedicated supplier support team and helpline. The company believes that helping its supply chain become more responsible will eventually help transform the industry as a whole.
GAR reports on the progress of its sustainability commitments annually in the GAR Sustainability Report.
About Sinar Mas Agribusiness and Food
Sinar Mas Agribusiness and Food operates under Golden-Agri Resources (GAR) is one of the leading palm oil plantation companies with a planted area of more than 480,000 hectares (including smallholders) as of June 30, 2017. The company has an integrated operation producing food made from raw vegetable oils.
Sinar Mas Agribusiness and Food is focused on sustainable palm oil production. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; merchandising and refining CPO into value-added products such as cooking oil, margarine, shortening and biodiesel; as well as trading of palm oil products worldwide. It also has operations in China and India including a deep-sea port, oilseeds crushing plants, production capabilities for refined edible oil products as well as other food products such as noodles.
Founded in 1996, GAR was listed on the Singapore Exchange in 1999 with a market capitalisation of US$3.4 billion as at 30 June 2017. Flambo International Limited, an investment company, is currently GAR’s largest shareholder, with a 50.35 percent stake. GAR has several subsidiaries, including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.