Climate Action

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Climate Action

Action today for a climate-resilient tomorrow

As a plantation company operating in an industry with a 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 minimising our carbon footprint and ensuring long-term sustainability:

We target a 50% reduction in GHG emission intensity per tonne of CPO by 2030 from a 2020 baseline, covering all palm oil operations (scope 1 & 2) to work towards the longer term objective of net-zero emissions by 2050.

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

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

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

Gross GHG emissions were overall 3.6% lower in 2024 compared with 2023 due to a reduction in the FFB received from third party suppliers, leading to lower emissions from transportation and processing.

While REA’s net GHG emissions were 25.6% lower than in 2023 due principally 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.

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

Net Emissions

For more detailed information on the calculation of GHG emissions on a group and on an 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 fertilisers 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.
Circular Economy

Circular Economy

  • Supporting projects that repurpose by-products, such as fibres, into eco-conscious materials such as toothbrushes, showcasing the potential of palm oil waste in innovative applications.
  • We are committed to implementing resource-efficient practices that reduce waste and enhance sustainability across all our operations.
Resilient Infrastructure

Resilient Infrastructure

  • Upgrading roadways, drainage systems, and water management infrastructure to withstand extreme weather conditions, such as heavy rains and heat waves.
  • Improving water stewardship programs to guarantee effective irrigation and reliable storage during times of drought.
Land Management

Land Management

  • Enhancing soil resilience through optimising methods for water retention and nutrient storage, enabling plantations to thrive under variable weather patterns.
  • Partnering with researchers and professionals in the industry to implement effective strategies for managing soil and ecosystems.
Measuring Progress

Measuring Progress

We track and disclose our emissions aligned to globally recognised methodologies:

  • RSPO PalmGHG Tool: This tool employs a lifecycle assessment approach to capture emissions from cultivation to processing.
  • SECR Framework: Covers Scope 1 and 2 emissions from global operations, ensuring transparency and accountability.
  • ISCC Certification: Independent verification of our sustainability performance across the entire supply chain.
Climate-Related Risks & Opportunities

At REA, managing climate-related risks and opportunities 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 & Opportunities
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.