To achieve Net Zero Emissions, TSE Group has integrated the Forest, Land, and Agriculture (FLAG) sector, along with the energy and industrial sectors into its decarbonization strategy, ensuring that its entire supply chain contributes to comprehensive emission reductions.

In addressing the climate change challenges, SBTi provides a clear, science-based framework for companies to set measurable emission reduction targets, enabling industries to responsibly contribute to the transition toward a low-carbon economy. This initiative also supports TSE Group develop a transparent and credible mitigation strategy, ensuring a sustainable shift to a low-carbon future.

TSE Group’s approved greenhouse gas (GHG) emission reduction targets are as follows:

We are committed to reducing emissions through the phased development of Biogas Power Plants at five locations, the adoption of electric vehicles (EVs), and the transition from biodiesel to biogas-powered energy and solar panels as renewable energy sources. Additionally, we are implementing sustainable agricultural practices by replacing chemical fertilizers with organic fertilizers and biochar, along with various other initiatives to support the Net Zero Emissions 2050 target.

Through this commitment, we reaffirm the company’s strategic role in supporting the global decarbonization agenda and strengthening collaboration with stakeholders to build a sustainable future.

Jakarta, 28 March 2025

Management of TSE Group

1. Indications of Deforestation in the Iska Bekai Cooperative Plantation
   In late 2024, indications of deforestation were reported in the Salamepe, Merauke Regency, South Papua situated southwest of PT Dongin Prabhawa’s concession. The affected area belongs to the Iska Bekai Cooperative (KSU Iska Bekai) and is not part of   PT Dongin Prabhawa’s HGU (land use rights). KSU Iska Bekai has held these rights since 2023. Currently, KSU Iska Bekai is partnering with PT Tritama Lestari, under local government directives, to develop an oil palm plantation. PT Dongin Prabhawa has no involvement in this development. For further details, refer to the TSE Group Statement dated August 30, 2023.
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2.  TSE Group’s NDPE Policy
   Since 2019, TSE Group has enforced a No Deforestation, No Peat, No Exploitation (NDPE) policy, which covers both nucleus and plasma plantations. Our sustainability principles include:
   • No new developments until we identify and effectively protect High Conservation Value (HCV) and High Carbon Stock (HCS) areas within our concessions.
   • No new plantation development on peatland.
   • Preventing exploitation of communities and employees.
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3. TSE Group’s Traceability Policy
   Aligned with our ESG Policy, TSE Group only sources Fresh Fruit Bunches (FFB) from suppliers adhering to our stringent policy.

TSE Group is steadfast in its commitment to implementing ESG and NDPE policies, as well as supporting sustainable community development initiatives.

This statement is issued for public awareness and is communicated with full accountability.

Regards,
Tunas Sawa Erma Group Management

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For more information, contact:
Public Relations Division
Email: pr@tsegroup.co.id

In the process of carrying out this development, Iska Bekai Cooperative decided to appoint     PT Tritama Lestari as a partner in accelerating Plasma Plantation Development, as instructed in Merauke Regent Letter Number 602.2/7805 dated November 17, 2022.

With both the HGU Transfer Permit and the instruction letter of Merauke Regent, Iska Bekai Cooperative will be working together with PT Tritama Lestari on a plasma plantation to establish it independently.

Meanwhile, PT Dongin Prabhawa will continue making sustainable community development efforts across various fields through its Corporate Social Contribution (CSC) initiatives. It does so in accordance with its philosophy to build a harmonious, beneficial, and sustainable relationship with the community and other stakeholders for the sake of improvement and prosperity.

Regards,
Tunas Sawa Erma Group Management

For more information, contact:
Public Relations Division
Email: pr@tsegroup.co.id

We commit to following the Science Based Targets initiative (SBTi) standards in defining objectives.The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050.. Using this standard, we will set our own emissions goals with the needed actions to limit global warming to below 1.5°C.

In the next two years, we will establish near-term and long-term targets, which will encompass all our operational activities and supply chain and take into account carbon sequestration potential from the plantations and forests we manage. We will report our progress to meet these targets in a transparent and consistent manner through the SBTi platform and other relevant mechanisms.

We will also adhere to local rules and regulations to reduce greenhouse gas emissions and contribute to Nationally Determined Contribution (NDC) targets. For everyone’s information, NDCs are commitments that each country makes to the Paris Agreement.

In terms of Indonesia, its NDC is to cut down emissions by 29% below business-as-usual in 2030, or by 41% with international help.

Through this statement, we support the government’s efforts to demonstrate such a commitment, and we pledge to collaborate with other stakeholders to drive the transition to a low-carbon economy.

We believe that by taking these steps, our presence will make a positive impact — not only on the environment and climate as a whole, but also on the local economy and social prosperity, which are reliant on the palm oil industry. We hope this statement inspires fellow palm oil firms to join the net zero emissions movement.

Jakarta, May 3^rd 2023

TSE Group Management

For more information, contact:
Website: https://tsegroup.co.id/
Email: pr@tsegroup.co.id