In order to achieve long-term success in our industry, we believe that we need to align our interests with that of the communities and environments that we operate in. We are therefore committed to ensure that our business is carried out in an environmentally friendly and socially responsible manner.
First Resources is a member of the Roundtable of Sustainable Palm Oil (RSPO), a multi-stakeholder association that promotes the production and use of palm oil in a sustainable manner based on economic, social and environmental viability.
COMMITMENT TO OUR ENVIRONMENT
We recognise that good environmental management is integral to the sustainability of our business and we are committed to being environmentally responsible in areas which we operate in. To achieve this, we strive to integrate international and local environmental standards into our plantation practices and make concerted efforts in increasing awareness and inculcating responsibility in our employees. Policies and systems put in place are documented in standard operating procedures of our plantations and mill operations. We have obtained the ISO 14001 Environmental Management Systems certifications for several of our subsidiaries and are in the process of obtaining the same for the rest. These certifications underline our commitment and demonstrate our compliance to international standards for good environmental management.
The following highlights some of the policies and initiatives we have adopted, in our pursuit of responsible palm oil production.
Zero-Burning
We adopt a strict zero burning policy in our land clearing process. We deploy mechanical means to clear land for new plantings and this process involves felling and stacking. The subsequent decomposition of the biomass provides essential nutrients for the soil and is highly beneficial for the newly planted oil palms.
Responsible Planting
We are committed to responsible planting and we implement best practices aimed at maintaining soil fertility, water quality and minimising soil erosion. We plant legume cover crops to explore their atmospheric nitrogen fixation capability, reduce surface runoff and improve soil organic matter. On sloppy terrains, we construct terraces and silt pits to minimise soil erosion, leaching of nutrients and pollution of waterways. River buffer zones at both sides of river banks are also kept to serve as a filtration system to preserve water quality.
Integrated Pest Management
Integrated Pest Management is our pest control strategy aimed at reducing the dependence on synthetic pesticides which could pose contamination risks and other harmful impacts to the environment and natural habitats. For example we use barn owls as a biological control agent for rat populations and establish beneficial plants which provide food and shelter to natural predators of oil palm leaf-eating pests.
Waste and Pollution Minimisation
We have a recovery and recycle policy to minimise waste output to our surroundings. We believe that in the long run, the benefits from a waste minimisation programme will clearly outweigh the initial costs. Empty fruit bunches from our mills are taken back to the plantation for use as organic fertilizers. Solid wastes from our mills such as fiber and shells are recycled as fuel to generate electricity for our mills. Our effluent waste treatment programme uses bacteria to breakdown effluent, which is then directed to our plantations as fertilizer substitutes.
COMMITMENT TO OUR COMMUNITY
We believe that local community support and involvement is needed to ensure the success and sustainability of our business. We are therefore mindful that our business operations must directly and indirectly contribute to the development of the local communities whom we work alongside with.
Partnership with Smallholders
First Resources actively participates in smallholder ownership schemes, generally known as the ‘plasma schemes’. Under these schemes, we assume responsibility for developing oil palm plantations to the productive stage, for the benefit of smallholders. Once developed, the plasma plantations are transferred to the smallholders and we are committed to purchase fresh fruit bunches from the smallholders at government regulated prices. Such schemes are designed to assist smallholders become independent plantation owners and subsequently enjoy the economic benefits from their plantations. Apart from developing the plantations, we also provide technical assistance, practical training and fertiliser recommendation. These initiatives are targeted at imparting best plantation management practices to the smallholders so that they can maximise the yields from their assets. As at 31 December 2009, we have 12,059 hectares of planted plantations under such schemes, and we are committed to expand this going forward. Through our efforts in these smallholder schemes, we have witnessed the improvement in living standards for thousands of smallholders and their families.
Welfare for the Community
Apart from generating jobs, we also invest directly in the welfare of the local communities. We contribute to the development of local communities through investments in infrastructure such as healthcare centers, schools, electricity and clean potable water. In addition, we upgrade roads and bridges, places of worship, and other amenities. We recognise that education is the key to a better future for the local communities and we provide educational funds and assistance in the forms of scholarships, uniforms and books.
Welfare for our Plantation Employees
We promote a safe and healthy working environment for our plantation employees by providing occupational health and safety training and supporting facilities and infrastructure. We are committed to all government regulations regarding safety at work, including regulations on health, work-related accidents insurances, minimum working age, protection of children, as well as other national and regional labour laws. All our employees are covered by health and accident insurance. Medical care is also made available to all workers and their families through the clinics that we have set up in our plantations. Our plantations are also equipped with essentials such as places of worship, schools, canteens, sporting and other recreational facilities.
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