NO PEAT DEVELOPMENT

Since the introduction of our Policy on Sustainable Palm Oil in 2015, First Resources has not carry out any new plantings on peatland at any depth. For our existing plantations on peat, we implement best management practices. Any peat areas which are assessed to be unsuitable for replanting, we will explore options for restoration or environmentally beneficial alternative uses.

Peat soil is defined as soil with more than 65% organic matter. Our specialised peat taskforce focuses on conducting detailed peat surveys and assessments in our estates. The taskforce is led by our research and development department and supported by our agronomy and sustainability departments. Since 2019, peat surveys in all estates have been completed. Results from the peat surveys inform our land use planning and guide the enhancement of water management plans for our plantations on peat.

For existing plantations on peat, we also maintain groundwater levels at optimal levels to minimise peat subsidence and the release of carbon dioxide. To regulate and manage water levels, we have also blocked canals and built water gates at selected estates in accordance with the guidelines of the Indonesian Ministry of Environment and Forestry, and the Indonesian Peatland Restoration Agency.

We have also begun conducting peat drainability assessments. These assessments are required by the Roundtable of Sustainable Palm Oil (RSPO) and are conducted at least five years prior to replanting of existing oil palms on peatland. The assessment results are used to set the timeframe for future replanting as well as phasing out of oil palm cultivation.

SOIL MANAGEMENT

First Resources' soil management practices are aimed at maintaining and enhancing soil fertility and reducing risks of soil degradation posed by our activities. Our objective is to enable our oil palms to attain their full productive potential, but through minimal use of inorganic fertilisers.

For new development areas, we mechanically clear land and harness the organic contents within fallen, decomposing biomass to replenish plantation soil. This provides a rich substrate for new plantings and reduces inorganic fertiliser usage. On undulating plantations, we build terraces and silt pits to minimise soil erosion and the leaching of fertilisers and pesticides into water bodies. Buffer zones are maintained along riparian strips to protect river banks and maintain water quality.

Before the planting or during the immature phase of oil palms, our estates are planted with legume cover crops to conserve and improve soil fertility and fix atmospheric nitrogen for the trees.

In our efforts to minimise the use of inorganic fertilisers, we recycle all the biomass and organic by-products produced in our plantations and mills such as pruned fronds, EFB and POME and use them as organic fertilisers. However, the use of such organic fertilisers alone is not sufficient to maximise the potential of the palms. Our research team therefore conducts site specific leaf and soil analysis to recommend the amount of inorganic fertiliser required to create a balanced nutrition programme for our plantations.

WATER MANAGEMENT

As an agribusiness, water is crucial not only for the maintenance of our crops but also in other areas of our operations such as the well-being of our workers and to generate steam for processing. We adopt best water management practices to ensure efficient use of water, to prevent pollution of waterways and to minimise disruption of water supply in our operations. Our efforts include:

• Constructing trenches, drains and silt pits to ensure good drainage and prevent flooding during rainy season. These also serve water containment purposes to maintain soil moisture in the plantation during the dry season.
• Spreading and stacking pruned oil palm fronds according to land contours to reduce surface runoff and maximise water retention.
• Preserving measured buffer zones along river strips across all operations to protect river banks and maintain water quality.
• Constructing wells and dams in housing areas to ensure steady water supply for our employees as well as local communities.
• Identifying and protecting water sources that are important for the local wildlife and surrounding communities by conducting HCV assessments prior to development.
• Targeting to use less than 1m³ of water for each tonne of fresh fruit bunch processed at the mill.
• Treating palm oil mill effluents and refinery effluents to ensure the Biological Oxygen Demand (BOD) levels and Chemical Oxygen Demand (COD) levels are within the legal limits before being discharged or used for land applications.
• Ensuring that all wastewater from our palm oil mills and refineries are treated and discharged in compliance with local laws and regulations.