In running the palm oil business, PTPN Group has been committed to implementing the principles of sustainability and has followed the environmental and social standards set by the Indonesian Sustainable Palm Oil (ISPO), the Roundtable Sustainable of Palm Oil (RSPO) and the International Sustainability & Carbon Certification (ISCC). This certification is a requirement to be able to penetrate the export market. In 2022, most of PTPN Group’s plantations and palm oil plants have been certified.
PTPN Group will continue to increase the certification of its plantations and plants. The expired certificates have also been extended. Implementation of sustainable palm oil standards using ISPO, RSPO and ISCC standards is one way to reduce and limit environmental damage and reduce the dangers of climate change. In addition, the implementation of this certification provides a competitive advantage for PTPN Group to meet the increasing demand for CPO in the global market.
PTPN Group has received many benefits after applying sustainable palm oil standards in the form of ISPO, RSPO and ISCC. According to information received by IPO News, one of the subsidiaries of PTPN Group, namely PTPN V, had pocketed a profit of up to Rp. 103 billion from 2019 to September 2021. This profit was obtained since its CPO exports had penetrated the European market. PTPN V’s success in penetrating the European market is because it is considered to have carried out its commitment to reduce greenhouse gas (GHG) emissions resulting from the entire series of palm oil plantation production activities. The CPO products produced by PTPN V have complied with the European Union’s renewable energy standards (EU Renewable Energy Directive).
Until 2022, some 75% of palm oil plant units (PKS) and PTPN V plantations have received ISCC certificates and 75% have received RSPO and ISPO certificates. Having this certification provides an advantage in the form of a premium price in the export market. Currently, 12 PKS and 10 PTPN V plantations have received ISCC certificates, including Tandun, Rokan, Lubuk Dalam, Terantam, Tanjung Medan, Sungai Pagar, Intan and Tapung. Moreover, PTPN V also encourages plasma smallholders who own 2,436 hectares of oil palm land to obtain ISPO, RSPO and ISCC certificates.
Not only PTPN V, other subsidiaries such as PTPN I to PTPN IV and PTPN VI to PTPN XIV also have brilliant performances.
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