Zero burning in land clearing
The Group adheres strictly to the policy of zero burning in both new planting and replanting of oil palm. Zero burning not only keeps the air smoke-free but yields several benefits as well. The remnant debris, comprising bushes or small trees which are felled, are shredded and spread in the field to biodegrade, releasing nutrients slowly, adds valuable organic matter to the soils, reducing the use of fertilisers during the immature period. This policy is incorporated in the land clearing contract in which external contractors are engaged.
Soil enrichment and conservation program
The Group has implemented some of the Good Agriculture Practices (“GAP”) and recognises the importance of managing various types of soil in plantations as it is a key contributor to crop productivity. A healthy soil can sustain healthy and productive palms and provide viable environment for beneficial animals and soil microbes. Some of the GAP carried out are as follows:
• Planting of leguminous cover crop in new planting and replanted areas. The fast-growing plants provide cover to protect the soil and build up nutrients in the topsoil as well as to suppress weed.
• Solid organic waste material generated from the milling operations such as decanter cake and empty fruit bunches (“EFB”) are applied in fields, especially at marginal soil areas.
• Maintaining of soft grasses in palm avenues.
• Field application of oil mill processing co-products such as treated palm oil mill effluent (“POME”) and decanter cake.
• Conservation of soil and water by building conservation pits and bunds, terracing, roadside drainage and sumps and water catchment ponds.
Fertiliser management program
The management of fertiliser application processes in our Group is documented in our standard operating procedures. Monitoring practices are also put in place to ensure optimum dosage and uptake of nutrients by the palms. Oil palm nutrient requirements are determined through yield performance profile of the palm trees, soil and leaf analysis conducted by an independent Agronomist team. Recommendations for type and dosage of fertilisers are given to the respective estate based on these analysis. This prescriptive practice allows a more precise and efficient application of fertilisers with minimum wastage. Fertiliser application is timed during months where rainfall is at moderate levels to prevent runoff losses and potential volatilisation losses during dry months. In addition, the quality of fertiliser to be applied is also periodically assessed by taking samples and sending to independent labs for testing of nutrient contents.
Integrated Pest Management (“IPM”)
IPM is a component of GAP which incorporates use of biological, mechanical and physical methods to reduce the use of chemicals and pesticides. Implementation of IPM, wherein responsible use of chemicals and pesticides is paramount to ensure safety of our workforce, local communities and the environment where we operate.
This is achieved through due diligence and justification process and prioritise biological control prior to use of chemicals and pesticides, thus limiting introduction of hazardous agents to the open environment. This approach requires surveillance and monitoring of pests and diseases and ensures no prophylactic use of chemicals and pesticides unless in exceptional circumstances as identified within the local legal requirements.
Some of the IPM techniques carried out by the Group include:
• Propagation of beneficial plants such as Cassia Cobanensis, Antigonon Leptopus and Turnera Subulata to increase population of predators of pests that could control the population of bagworms and nettle caterpillars on our Group’s estates.
• Use of pheromone traps to minimise damage to young palms rhinoceros beetles.
• To allow local predator animals such as barn owl and snake to propagate in our estates to control rat population.
To enhance the effectiveness of IPM and safe use of chemicals and pesticides, training and field demonstrations are regularly conducted by the chemical suppliers for estate personnel from our management to our workers. This training encompasses identification of various pests and diseases in oil palm, safe procedures to apply chemicals and pesticides, and the proper procedures to adhere to in managing the pests and diseases of oil palm.
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SUSTAINABILITY STATEMENT
Monitoring with Geographic Information System (“GIS”) / Global Positioning System (“GPS”) Data
With drones becoming more affordable and widely available, we have started to perform census of our Group’s palm tree with this technology. This project will provide a realistic overview of our plantation assets and landbank status incorporating GIS and GPS information. This will enable more accurate data collection of our Group’s total palm stand to facilitate more effective management planning, utilisation of resources and the correct dosage of fertiliser application.
Waste and effluent management
The Group applies the best management practices in the handling of wastes at our sites by minimising waste generation and proper segregation, storage, transport and disposal of scheduled waste and domestic waste in adherence to standards set by the Department of Environment (“DOE”) and local municipal councils.
All scheduled wastes are handled in accordance with the Environmental Quality (Scheduled Wastes) Regulation 2005 requirements. Assigned competent person for all operation sites will periodically submit reports through DOE online reporting system (Electronic Scheduled Waste Information System).
POME is properly treated and monitored by assigned competent person to ensure full compliance with the Environmental Quality (Industrial Effluent) Regulations 2009 requirements. Our effluent treatment system allows capturing greenhouse gas to reduce greenhouse gas emission to the atmosphere and is adequately designed to meet the discharge parameters mandated. However, the quality of discharge may be influenced by various factors including quantity of FFB milled and rainfall. The DOE comes for regular site inspection and collects effluent sample at final discharge point for analysis.
This ensures that communities downstream of our palm oil mills are also able to enjoy the use of water resources.
Reduction of greenhouse gas emission
The Group has successfully implemented three (3) methane capture facilities for the renewable power generation projects at its three (3) mills which reduce greenhouse gas emissions as well as reducing the reliance on diesel power generator during start-up or low crop period. The power generated from greenhouse gas is either sold to the grid or utilised by milling operations and other downstream activities of the Group. The project implemented in our Kota Tinggi mill was the first project on biogas generated from POME that is registered with the Clean Development Mechanism (“CDM”) Executive Board of United Nations Framework Convention on Climate Change. As a result, better utilisation of energy from waste material and biomass contributes towards reducing the environmental impact and improve sustainability of the palm oil industry.
Riparian reserves
Riparian reserves are areas of conservation between land and rivers teeming with life from the habitats of flora and fauna. The importance of identifying these areas for conservation lies in their role of supporting local ecosystems as well as maintaining water and soil quality. As part of our efforts, we have identified and incorporated buffer zones and riparian reserves within our plantations.
To manage and preserve our riparian reserves, we plant legumes cover crops to prevent soil erosion.
Prudent use of paper practices
We acknowledge that the environmental impact of paper usage is significant. Our approach is to avoid unnecessary paper consumption and waste generation, where possible and appropriate. We always look at ways to reduce paper usage and encourage the usage of electronic platforms such as WhatsApp social media, SMS and email as efficient alternative modes of communication with our suppliers and customers and for our day-to-day internal operations, and to use recycled paper to print any document where possible.
Electronic publications
To reduce the consumption of paper, the Annual Report of the Company is published on the Company’s website for access by shareholders and investors.
SOCIAL
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