Greenhouse gases (GHG) associated with the greenhouse effect and subsequent global warming are caused by the accumulation of mostly carbon dioxide and other gases such as methane and nitrogen dioxide in the atmosphere. The principal sources of GHG emissions in our operation area are carbon dioxide emissions arising from changes in carbon stock during the development of new plantations and methane emissions from palm oil mill effluent (POME) ponds. In line with our Policy on Sustainable Palm Oil, we are dedicated to developing plans that will progressively reduce our GHG emissions.
REDUCING EMISSIONS FROM LAND USE CHANGE
Since 1 July 2015, as part of our “No Deforestation, No Peat and No Exploitation” (NDPE) commitment, we have not undertaken any new developments on peat areas at any depth, as well as areas identified as High Carbon Stock (HCS) forests using the HCS Approach. We believe that this will help reduce our Group’s overall emissions significantly over the long-term.
REDUCING EMISSIONS USING METHANE CAPTURE
Palm oil mill operations generate palm oil mill effluent (POME) as a liquid by-product from the processing of fresh fruit bunches (FFB). POME is typically treated in open lagoons through anaerobic digestion, a process that reduces its toxicity but releases methane into the atmosphere. Methane is a potent greenhouse gas, with a global warming potential 27 times higher than carbon dioxide.
To mitigate these emissions, we have implemented a methane capture system that prevents the release of methane into the atmosphere by sealing lagoons with high-density polyethylene cover. The captured gas is then utilised as a renewable energy source to support mill operations and electricity generation.
We have operational methane capture facilities at 15 of our mills. In 2025, these methane capture facilities helped the Group to avoid the emissions of approximately 640,782 tonnes of CO2e in GHG emissions. We will continue to install additional methane capture plants in the future, where feasible.