Climate Action

Climate Action

Action today for a climate-resilient tomorrow

As a plantation company operating in an industry with significant land footprint, REA understands the critical role we play in addressing climate change.

Climate Action is our commitment to addressing the pressing challenges of climate change through measurable and impactful initiatives. This pillar focuses on reducing greenhouse gas emissions, optimising energy use, and implementing renewable energy solutions such as methane capture. By prioritising low-carbon operations and fostering resilience within our supply chain, we aim to contribute to a more sustainable and climate-resilient future.

Our Commitment

We are committed to ambitious climate action goals aimed at minimizing our carbon footprint and ensuring long-term sustainability:

By 2030, we aim to reduce our net greenhouse gas (GHG) emissions by 50% compared to our 2020 baseline.

Our goal is to achieve net-zero emissions by 2050, aligning with global climate objectives.

We prioritise transparent carbon accounting by consistently publishing our emissions data under-recognised frameworks, including RSPO PalmGHG, ISCC, and SECR, to facilitate ongoing improvement and build stakeholder trust.

Managing Our Footprint: Understanding and Reducing Our Emissions
Scope 1
Scope 2
Scope 3

Scope 1: Direct Emissions

Scope 1 emissions originate from activities directly under REA’s operational control. These include:

Land-Use Change and Plantation Activities

Emissions from land conversion, soil management, and fuel combustion in plantation operations.

Processing and Mill Operations:

Emissions generated from the combustion of biomass and fossil fuels used to create steam and electricity for our milling processes.

Transportation

Emissions from company-owned vehicles and ships transporting fresh fruit bunches (FFB) and refined palm oil products.

Reducing Emissions Across Scopes 1, 2 and 3

We are actively working to reduce both direct emissions (Scope 1) and indirect emissions from energy consumption (Scope 2) through a variety of initiatives:

  • Sustainability Certifications: We follow frameworks such as RSPO, ISCC, and SECR to guide our emissions reduction strategies.
  • Sustainable Good Agricultural Practices (GAPs): We prioritise efficient fertiliser application, enhance soil health, and reduce emissions from peatlands.
  • Circular Economy Initiatives: We repurpose mill by-products, such as empty fruit bunches (EFB), for organic fertilizer and energy generation.
  • Water and Waste Management: Enhanced irrigation systems, water storage, and responsible waste management to support resilient plantation systems.
  • Renewable Energy Initiatives:
    • Methane Capture Facilities: We operate two methane capture that capture methane and convert it into renewable energy, reducing emissions and providing power to our operations and local communities.
    • Energy Efficiency: Using renewable energy to lessen reliance on fossil fuels and enhance local energy resilience.

REA is committed to reducing indirect emissions (Scope 3) by engaging with our supply chain:

1. Land Use Change Monitoring
We work to prevent deforestation and promote sustainable land management among our suppliers.

2. Smallholder Collaboration
We support smallholders by providing training and resources to smallholders, helping them adopt practices that align with our sustainability policies.

2024 Emissions Overview

In 2024, our total net greenhouse gas (GHG) emissions were recorded at 89,876 tCO2eq, which represents a reduction of 25.6% from the previous year, 2023.

Net Emissions decreased due to a significant reduction in fertiliser use, reflecting the switch from single fertilisers (Urea, MOP, KCP, RP) to compound fertilisers (NPK), a decrease in third-party FFB, and a reduced loss of stored carbon due to biomass and land clearing.

  • Per planted hectare
    Decreased from 3.04 tCO2eq in 2023 to 2.21 tCO2eq in 2024.
  • Per tonne of CPO produced
    Increased from 0.56 tCO2eq in 2023 to 0.46 tCO2eq in 2024.
GHG

For more detailed information on the calculation of GHG emissions on a group and individual mills basis, click here.

Forest and Biodiversity Protection: Reducing Emissions and Enhancing Ecosystems

At REA, we recognise the importance of forests and biodiversity in mitigating climate change, supporting ecosystems, and promoting sustainable development. Our comprehensive strategy for protecting and managing forests and biodiversity focuses on reducing emissions, enhancing ecosystem resilience, and fostering sustainability through targeted programmes and partnerships.

Deforestation-Free Supply Chain
Offsetting Emissions Strategies
Biodiversity Monitoring and Patrolling

1. NDPE Policy
We maintain a strict NDPE policy to ensure a deforestation-free supply chain, protecting vital forest ecosystems and preventing the conversion of peatlands. For more information, read here.

2. Deforestation Monitoring
We utilise satellite monitoring and conduct field audits to ensure oil palm activities across our operations do not involve deforestation. For more information, read here.

Our Road to Climate Resilience

REA has developed a structured implementation strategy that addresses climate risks and opportunities:

Waste Management

Waste Management

  • Partnering with the University of Mulawarman to improve research efforts aimed at preventing diseases in oil palm and ensuring the health of plantations.
  • Repurposing mill byproducts, such as empty fruit bunches (EFB) and other organic materials, to create nutrient-dense organic fertilizers that foster sustainable farming practices.
  • Transforming waste into protein sources through the use of black soldier fly larvae supports resource efficiency and environmentally friendly waste management strategies.
Driving a Circular Economy
Resilient Infrastructure
Land Management
Measuring Progress
Addressing Climate-Related Risks

At REA, managing climate-related risks is integral to our sustainability strategy. Guided by the Taskforce on Climate-related Financial Disclosures (TCFD) framework, we proactively identify, assess, and mitigate climate impacts to enhance resilience and ensure sustainable growth for our operations, communities, and the environment.

Climate Risk Governance
Assessing and Mitigating Climate-Related Risks
Certifications and Third-Party Validation

1. Leadership Accountability
The Managing Director, President Director, Board of Directors, and Chief Sustainability Officer (CSO) oversee our climate strategies and ensure climate risks are prioritised alongside business objectives and goals.

2. Integrated Decision-Making
Climate-related matters are regularly discussed in monthly operational management meetings with department heads, ensuring that risk identification and mitigation are embedded in operational strategies.