Indonesian Sustainable Palm Oil (ISPO) is a policy made by the Indonesian Government that aims to improve the sustainability of the palm oil industry in accordance with the Indonesian Government’s rules and regulations, enhance the competitiveness of Indonesian palm oil in the world market, and participate in supporting the reduction of greenhouse gas emissions.

The implementation of the ISPO is mandatory, and is done to uphold the principles of guidance and advisory services. The initial stage of implementation for the ISPO certification is the garden classification (Garden Class) according to the Decree of the Agricultural Minister 07 of 2009 on Guidelines for Assessment of Plantation Business.

Since 24 November 2020, the Minister of Agriculture Regulation No. 11 of 2015 has been revised by the Minister of Agriculture Regulation No. 38 of 2020 concerning the Implementation of Indonesian Sustainable Palm Oil (ISPO) Certification, which regulates the seven principles and criteria of ISPO. Those are:

• Compliance with laws and regulations
• Implementation of good agricultural practices
• Management of the environment, natural resources, and biodiversity
• Labour responsibility
• Social responsibility and community economic empowerment
• Transparency
• Continuous business improvement

PT Tunas Sawa Erma acquired its ISPO certification on 6 December, 2016 and was re-certified on 5 December, 2021, PT Berkat Cipta Abadi and PT Dongin Prabhawa acquired their ISPO certifications on 22 March, 2019 and were re-certified on 21 March, 2024. Meanwhile, PT Gelora Mandiri Membangun has been ISPO certified since January 19, 2024. Each certification is valid for a period of five years.

Water remains an essential element for environment protection and oil palm productions. In order to ensure the sustainability of this important resource, we protect rivers by designating buffer zones. We also carry out various initiatives that aim to ensure optimal water conditions, thereby creating an ideal environment for oil palm cultivation. The objective of our water system management is to prevent flood, minimize erosion, and secure the water supply for our plantation areas during the dry season. The implementation of our water management system has been designed with careful consideration and comprehensive hydrology, agronomy, topography, as well as environmental and social impacts studies. The effectiveness and impact of the water management system, including its construction phase, have been carefully analyzed and evaluated.

We have put extraordinary efforts to protect water quality in managing the quality of water by periodically testing samples and analyzing the results at locations designated by each oil palm plantation. Samples are analyzed and approved by the Indonesian government and we will continue to do this. We are committed reducing river water pollution impact and do not discharge wastewater from the CPO mill into the river. Currently, all entities under the TSE Group have obtained permits related to wastewater palm oil management to be channeled to Land Application.

Currently, all liquid waste generated from operational activities across all units within the TSE Group is being utilized as liquid fertilizer, in accordance with the Approval for the Utilization of Palm Oil Liquid Waste for Soil Application, and implemented in compliance with applicable environmental regulations.

In regard to water, we are primarily focused on controlling and reducing the impacts of chemicals on water quality in natural waterways. We aware of the problems posed by excessive use of agrochemicals, such as pesticides, fungicides, and herbicides which may be washed off by the rain into nearby natural waterways. As part of our commitment to reduce chemical usage, we prioritize non-chemical pest control measures for all our palm oil plantations. Our Integrated Pest Management Systems are designed to minimize the use of chemicals by relying on biological and cultural alternatives.

Integrated pest management is the practice of using a range of strategies to sustainably maintain pest populations within economic thresholds while creating minimal harm to local ecosystems. For example, by encouraging natural predators to reduce the use of chemical pesticides. Oil palm pests include rats, rhinoceros beetles, bunch moths, bagworms, and nettle caterpillars.

We are committed to continuous improvement and transparency in management and monitoring of endangered, endemic, and protected flora and fauna in order to maintain the biodiversity. Wildlife hunting is only allowed if it is performed by the local community and in a limited amount to fulfill the needs for food or traditional ceremony. Other than that, wildlife hunting is not allowed and the notice is shown on a signboard.

In support of the greenhouse gas reduction program, we are taking strategic steps to mitigate climate change by capturing methane gas and utilizing it as an energy source. This not only prevents greenhouse gas emissions but also reduces the reliance on fossil fuels. Approximately, 70% of palm oil plantations’ emissions are attributed to methane from POME. We aim to complete our first biogas plant by 2025, register it as a carbon project, and issue carbon credits. Additionally, TSE Group has committed to achieving Net Zero Emissions by 2023, identifying and reducing future greenhouse gas emissions across the organization.