Sustainability: Sustainable Development - Certification

Sustainability Development

Certification

At REA, certifications validate our commitment to sustainable palm oil production. By adhering to these certifications, we maintain compliance with stringent national and international standards while driving continuous improvement across our operations.

Certification promotes transparency, traceability, and accountability which in turn allows us to offer premium pricing for our certified products. Our certifications—RSPO, ISPO, ISCC, and Environmental Management—reflect our focus on mitigating deforestation, protecting human rights and safety, ensuring transparent and traceable supply chain, and reducing greenhouse gas (GHG) emissions.

We aim to achieve and maintain certification under these internationally recognised schemes for all of our plantations and mills.

RSPO
ISCC
ISPO
Certified Sales
Environmental Certification

RSPO

The Roundtable on Sustainable Palm Oil (RSPO) sets globally recognised standards to promote sustainable palm oil production, with a focus on environmental conservation, social equity, and economic viability. Since joining the RSPO in 2007, REA has committed to these values through comprehensive audits and certifications.

All three of our oil palm mills—Cakra, Perdana, and Satria—are RSPO-certified, with the first certifications dating back to 2011 – within 3 years of the Indonesia National Interpretation (INA NI) approval (in 2008) of the generic RSPO Principles & Criteria for Indonesia.

Our RSPO Journey

1. RSPO Membership and Certification

    • Member since 2007.

    • All 3 mills certified: Cakra, Perdana, Satria.

    • First certifications achieved in 2011, within 3 years of INA NI approval (2008).

2. Certification Achievements in 2023

Annual surveillance audits successfully completed for:

    • POM and COM mills.

    • COM and SOM kernel crushing plants (KCPs).

    • Downstream bulking station.

    • PalmTrace licenses renewed.

3. New Certifications

    • SOM mill and supply base certified in 2023.

    • Valid until 2028 (subject to annual audits).

    • Compensation plans include collaboration with the Orangutan Foundation.

4. Smallholder Certification

    • 157 smallholders supplying POM and COM certified in 2022.

    • 19 smallholders within SOM supply base submitted for certification in 2023, expected by 2024.

Conservation and Remediation Plans

  1. Compensation plans approved for 173 hectares cleared prior to 2008 regulations.
    • Includes long-term conservation programs and remediation initiatives.
  2. Compensation liabilities:
    • 959 hectares of planting at CDM.
    • Land clearing at 2 plasma cooperatives.
    • Riparian reserve establishment along rivers in 2 estates.
    • Payments spread over 25 years.
2024 RSPO Supply Chain Performance

Palm Kernel Crushing: REA has two Kernel Crushing Plants (KCPs) located at the COM and SOM mills. These KCPs exclusively process kernels from REA’s three mills, all of which are certified by the RSPO.

  1. 42,400 tonnes of palm kernels were processed in 2024.
  2. 68.5% (29,024 tonnes) sourced from RSPO-certified FFB.
  3. 31.5% (13,376 tonnes) sourced from non-certified FFB, including:
    • 60,633 tonnes from non-certified REA plantations.
    • 114,620 tonnes from independent smallholders.
    • 44,972 tonnes from associate smallholders (PPMD).
    • 23,759 tonnes from corporate outgrowers.
Raw Material SuppliedFFB processed (tonnes)PK Crushed Certified (tonnes)PK Crushed Uncertified (tonnes)PK Cakra Certified (tonnes)PK Cakra Uncertified (tonnes)PK Satria Processed Certified (tonnes)PK Satria Processed Uncertified (tonnes)Uncertified PK sold to third parties (tonnes)
Certified FFB:
Own plantations587,93529,383-18,681-9,1360-
Smallholders plantations25,6151,279-785-422--
Subtotal613,55030,662-19,466-9,5580-
Uncertified FFB:
Own plantations--------
Independent Smallholder60,633-3,433-885-2,418-
Associate Smallholder114,620-6,399-2,640-3,695-
Corporate Outgrower44,972-2,469-774-1691-
Subtotal23,759-1,323-90-1,182-
Total243,985-13,624-4,389-8,987-
Traceability and Smallholder Inclusion

REA maintains 100% traceability from plantation to each of our KCPs, ensuring that both our internal and third-party suppliers comply with our policies and procedures.

KCPCertificate NumberValidityMaterialVolume Supplied (tonnes)Traceability to MilTraceability to Plantation
SOMBVC-RSPO-20171129-229/11/2022-28/11/2027Palm Kernels,Palm Kernel Expeller, CPKO20,699100%100%
COM824 503 1602429/11/2022-28/11/2027Palm Kernels,Palm Kernel Expeller, CPKO23,811100%100%
Ensuring Smallholder Inclusivity

By adopting the Mass Balance model, we ensure uncertified smallholders remain part of our supply chain. REA actively engages with these smallholders, offering support to improve practices and achieve RSPO certification. This approach not only aids their economic well-being but also promotes sustainable agricultural practices, setting the stage for future certification opportunities.