We assessed significant risks of climate change from higher temperatures, extreme weather (floods and droughts), increase in seawater levels, and higher atmospheric carbon dioxide (CO2) levels. These phenomena will result in salinization of freshwater, water shortages, wildfires, air pollution and ozone depletion, which will cause lower crop yields and more complicated estate agricultural management (water management, forest fire prevention and management, control of pests and diseases, and reduction of natural pollination quality) that will ultimately increase operational costs.
We have seen an increase of these phenomena with hotspots and flooded areas within a radius of 5 km, reflecting a shift of rainfall patterns with more intense periods of heavy rain and longer dry periods, even within the same regions.
To participate in global efforts to mitigate climate change effects and to ensure sustainability of our own operations, we have done the following:
• Trial on fertigation. This process is expected to enable us to manage soil moisture as well as water and nutrient supply to the oil palm trees more efficiently, reducing water usage;
• Composting, which has reduced chemical application (in the form of inorganic fertilizer) to the land and has eventually reduced greenhouse gas (GHG) emissions from inorganic fertilizer use;
• Introduction and implementation of Micron Herbi sprayers, which has reduced chemical application to the land;
• Introduction of ESP (Electrostatic Precipitators) in our mills to reduce emission of particulate matters (air pollution);
• Improving pollination levels by construction of elaeidobius kamerunicus boxes
• Various efforts to reduce GHG emissions by reducing usage of fossil fuels
In all our operational units, we have started to implement measures to reduce our GHG emissions by significantly reducing the usage of fossil fuels and optimizing use of renewable energy. We also embarked on water conservation and waste management programs to ensure sustainability of the business.
All the transition risks are integrated into our regular risk assessment and strategy determination, being monitored, measured, and assessed for any new risk development or opportunity for mitigation. This integration includes our efforts to use more compost and reduce inorganic fertilizer usage and research and development on practices to maintain access to water by the palm oil roots and to reduce water precipitation from the soil during drought.