Aims to achieve 100% No Deforestation, No Peat, and No Exploitation (NDPE) through the Supplier Transformation initiative
Golden Agri-Resources Ltd’s supports suppliers of palm oil products and their derivatives in Aceh Province to achieve 100 percent No Deforestation, No Peat, and No Exploitation (NDPE) through the Supplier Transformation initiative. In 2023, GAR’s suppliers in Aceh achieved a 99.5 percent “Delivering” status using the NDPE Implementation Reporting Framework (IRF). This is on track with the Company’s target to achieve 100 percent “Delivering” status for its global palm supply by the end of 2025.
GAR is committed to supporting palm oil supply chain transformation and meeting global sustainability requirements. The Company’s next target is to help 10.000 independent oil palm farmers in Aceh, North Sumatra, Riau, and West Kalimantan and realise a 100 percent deforestation-free supply chain globally by 2025.
The Supplier Transformation initiative in Aceh includes outreach, discussions, workshops, and technical guidance to create a sustainable and environmentally friendly supply chain. The target audience of these initiatives is oil palm farmers, palm oil sales agents, and companies that own palm oil mills. Currently, 34 mills in Aceh contribute to GAR’s supply chain.
The most recent Supplier Transformation initiative was a joint workshop in southern Aceh. GAR collaborates with Wilmar and Musim Mas, which also have supply sources in Aceh. This collaborative effort is the response of the three palm oil companies to overcome deforestation in southern Aceh, especially in the Rawa Singkil Wildlife Reserve area. By tracking the coordinates of palm oil mills, collecting data on agents and plantations, and closely monitoring land conversion, the Company demonstrates a solid approach to monitoring for deforestation and being able to offer a traceable supply chain.
“Independent farmers are part of the Company’s supply chain and need to be supported to increase crop yields, gain market access, and reduce the risk of land conversion. In North Aceh Regency, Perkumpulan Sejahtera Pelita Nusantara (PSPN), a group consisting of 270 independent farmers, succeeded in obtaining Roundtable on Sustainability Palm Oil (RSPO) certification thanks to assistance from the Sawit Terampil programme,” he explained.
