FIRST RESOURCES
SUSTAINABILITY
REPORT 2021
CONTENTS
01
About is Report
02
CEO's Message
04
About First Resources
06
Our Approach to
Sustainability
10
Our Sustainability Progress
15
Environmental Management
Yield and Extraction
Improvements
Conservation and Forest Management
Climate Change
Water and Waste Management
Pest Management and
Chemical Usage
30
Community Engagement & Development
Rights of Indigenous and
Local Communities
Community Investment
34
Employee Relations & Workplace
Employee Attraction, Retention and Development
Gender Equality and Inclusion
Labour Conditions and
Human Rights
Occupational Health and Safety
43
Supply Chain
Managing our Supply Chain
Supporting Smallholders
47
Consumers & Customers
Protecting Consumer Health Sustainability Certifications
49
Appendix
Materiality and Stakeholder
Engagement
GRI Content Index SASB Content Index Glossary of Terms
About is Reportt
01
ABOUT THIS REPORT
We are pleased to present First Resources' 2021 Sustainability Report. is report provides a transparent account of our progress and challenges in integrating sustainable practices across our operations and supply chain.
For complete information, this report should be read in conjunction with our Annual Report and website.
SCOPE OF THE REPORT [102-1, 102-45, 102-50, 102-52]
First Resources publishes a sustainability report on an annual basis. is report covers the activities and operations of First Resources Limited (First Resources) in Indonesia and Singapore for the financial year 1 January 2021 to 31 December 2021 (FY2021). It excludes our rubber plantations in Indonesia, which account for a very small proportion of our business. Where applicable, the data from previous financial years have been included for comparison.
e content of this report is defined by the GRI principles of stakeholder inclusiveness, sustainability context, materiality and completeness. To ensure the quality of our content, we have applied the GRI principles of accuracy, balance, clarity, comparability, reliability and timeliness. is report also adheres to the Singapore Exchange (SGX) Listing Rule 711A on preparing an annual sustainability report and describes our sustainability practices with reference to the primary components set out in the SGX Listing Rule 711B.
also have been undertaken in material areas such as High Carbon Stock (HCS), High Conservation Value (HCV) and Free, Prior and Informed Consent (FPIC), providing us with a strong and independent verification of our performance.
CONTACT [102-53]
We welcome feedback from all our stakeholders. If you have questions or comments on this report, or on our sustainability performance in general, please contact us:
REPORTING FRAMEWORK [102-54]
is report is prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. We selected the GRI Standards to guide our reporting and disclosure as it is currently the most widely used sustainability reporting standards. Where relevant information is presented, its associated GRI disclosure number will be indicated below the section title. Our GRI content index is appended on pages 54-62.
We have also started reporting against the Sustainability Accounting Standards Board (SASB) Standards to meet our stakeholder needs. Our SASB content index can be found on pages 63-64.
First Resources Limited
8 Temasek Boulevard #36-02 Suntec Tower ree
Singapore 038988
DATA AND ASSURANCE [102-56]
T +65 6602 0200
While we did not engage a third party in the assurance of our sustainability report this year, all data presented within this report has been rigorously reviewed. In-depth assessments
Esustainability@first-resources.com
It is with great pleasure that I present First Resources' Sustainability Report 2021, which details our sustainability commitments, approach, and progress in the past year.
CEO'S MESSAGE
[102-14]
Dear Stakeholders,
ADAPTING TO THE NEW NORMAL
Due to strong demand, palm oil prices reached record levels in 2021. However, the year proved challenging for the palm oil industry. Unpredictable surges in COVID-19 caseloads resulted in the periodic reimposition of movement restrictions, disrupting global supply chains and causing labour shortages. It was critical for First Resources to take concrete steps to effectively navigate these challenges.
e health and safety of our employees remain our top priority during this time. We continued to implement measures to protect the health of our employees by establishing safe working measures aligned with the latest government regulations. Precautions were made across our operations to comply with safe-distancing measures and self-isolation protocols. We also established a complementary hotline to address queries related to our COVID-19 protocols, and facilitated the vaccination of all our eligible employees, their families, and the surrounding communities. We are pleased to announce a high vaccination rate of 95% for our office employees and 70% for our field employees.
02
To boost the morale and mental wellbeing of our employees, we engaged several motivational speakers and organised informative webinars on stress management. Taken together, these initiatives allow us to fortify the resilience of our workforce against unforeseen shocks and facilitate our transition into a post-pandemic world.
OUR PROGRESS IN 2021
Although we were optimistic for a swiſt recovery in early 2021, some of our sustainability plans were ultimately upended by the volatile COVID-19 situation, especially on the certification front. We have completed the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm oil (ISPO) audits for the mills we had planned to certify in 2021, and aim to complete the process in 2022.
Having achieved 100% traceability to mills since 2017, and 100% traceability to plantations for fresh fruit bunches (FFB) processed at our mills since 2020, we are proud to have reached our goal of 100% traceability to mills for all our kernel crushing plants. To enhance traceability to plantations for our third-party crude palm oil (CPO) and palm kernel (PK) suppliers, we integrated a supplier risk assessment as a key criterion in our onboarding procedure,bringing us closer to our goal of establishing a sustainable and transparent supply chain.
03
CEO'S MESSAGE
Despite challenging operational circumstances, we maintained environmental sustainability as a key priority in our operations. We rehabilitated 26 hectares of High Conservation Value (HCV) areas within our estates by planting over 7,900 trees, and organised educational workshops to promote wildlife conservation among employees and surrounding communities. With the help of our seven operating methane capture facilities, we were able to avoid 180,000 tonnes of carbon dioxide equivalent (tCO2e) of greenhouse gas (GHG) emissions per year which is comparable to 38,784 passenger vehicles1 driven for one year.
To pre-empt future disease outbreaks in our plantations, we partnered with the Indonesian Palm Oil Genome Consortium to develop Ganoderma-resistant planting material. While research is still underway, we are optimistic that our partnership will yield new breakthroughs in crop resilience.
Recognising the importance of talent development to the success and longevity of the business, we continued to groom high-potential employees for future leadership positions through our Executive Development Programme. We also launched the "Informance" application to provide our employees with on-demand feedback on their work. We made improvements in our safety performance and achieved zero permanent work-related injuries. We will continue to strive to provide a workplace that is safe, inclusive and rewarding for our employees.
We also continued to support the surrounding communities where we operate through investments in infrastructure, education, and healthcare, in addition to helping them navigate the COVID-19 pandemic. First Resources stepped in as a corporate donor to the "Indonesia Pasti Bisa Jaga Oksigen" programme, contributing IDR 435 million to finance the purchase of additional oxygen supplies for hospitals overwhelmed by a surge in cases. Our 11 health clinics also started offering COVID-19 vaccinations to support the national vaccination programme.
LOOKING AHEAD
As the world emerges from the throes of the COVID-19 pandemic, issues such as climate change have once again been catapulted to the forefront of the global agenda. Ahead of the Conference of Parties (COP) event in 2021,the Indonesian government has set a target to reach carbon neutrality by 2060.
As a palm oil company, First Resources has a crucial role to play. We will be looking to establish our baseline GHG emissions in line with global standards, set a reduction target, and identify reduction levers, in support of global climate ambitions.
With the gradual easing of domestic and international travel restrictions in Indonesia, I am also hopeful that we can expedite our certification programmes.
I would like to thank our employees and stakeholders for their unwavering dedication and patience as we tide over these difficult times. While 2021 has been nothing short of challenging, we are eager to regain our momentum and accelerate our sustainability initiatives in 2022. I call upon our stakeholders to continue supporting us as we embark on a fresh phase in our sustainability journey.
CILIANDRA FANGIONO
Executive Director and Chief Executive Officer
1
Data provided by the United States Environmental Protection Agency Greenhouse Gas Equivalences Calculator
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