Responsible development

To mitigate the environmental and social impacts associated with oil palm expansion, the group has in place a policy and standard operating procedure for responsible development.

A critical stage of developing a new oil palm plantation is the land acquisition process. REA takes care to ensure that all legal and customary land use rights linked to an area of land are systematically identified, verified and documented. Only if free, prior and informed consent (FPIC) is granted by any land use rights holders will the land acquisition and development process proceed.

Once an area of land has been acquired, REA endeavours to use it wisely, minimising the environmental impact of its operations by implementing international standards of best practice. This means limiting oil palm cultivation to land that is agriculturally suitable and avoiding the development of primary forests and peat soils, which are high carbon stock areas, and HCV areas. Detailed land use plans for each concession are prepared based on the results of field surveys conducted prior to land clearing, as embodies in the RSPO’s new planting procedure, upon which the group’s policy is based. This includes an Environmental Impact Assessment (EIA), soil survey, HCV assessment conducted by RSPO-approved consultants, carbon stock assessment and, if necessary, a hydrological assessment. Whilst undertaking these surveys can significantly delay the commencement of land clearing, such detailed due diligence is critical to the group’s ability to develop sustainable palm oil operations.

The group conducts bi-yearly social impact assessments in the communities surrounding the estates, focused on the perceptions of the households as to how the group’s activities have affected their daily lives.

Progress of the RSPO"s NPP for new estates 2019

EIA: Environmental Impact Assessment
SIA: Social Impact Assessment
HCVA: High Conservation Value Assessment
LUCA: Land Use Change Analysis
(H)CSA: (High) Carbon Stock Assessment
NPP: New Planting Procedure
RSPO: Roundtable on Sustainable Palm Oil


PBJ

  • In 2018, all the PBJ concessions were sold to a third party and, therefore, the NPP was not completed.
PBJ2 Satria
  • The NPP audit for PBJ2 Satria was conducted in 2016 with Certification Body BSI and the report was submitted to the RSPO in 2017. After review by the RSPO, they indicated that it was necessary to update and review the HCV, CSA and LUCA assessments, as more than 3 years had passed at the time of NPP submission.
  • There is an overlap with a mining concession in the PBJ2 Satria concession and, therefore, the NPP process is temporarily on hold pending a resolution of the overlap.
PU
  • First assessments of HCV, LUCA, CSA were conducted in 2014.
  • PU completed an update and review of the HCV, LUCA and CSA assessments in 2018.
  • An NPP audit for PU was conducted in September 2018 which resulted in a request for additional assessments.
  • Subsequently, updates to the RSPO Principles & Criteria in 2018 required a submission of the HCV assessment to the HCVRN Quality Panel, which will lead to either acceptance of the assessment or a request to integrate the HCV assessment with the (H)CSA assessment. This in turn will influence the NPP.
KKS
  • Assessments of HCV, LUCA, CSA, SIA were conducted in 2017.
  • Subsequently, updates to the RSPO Principles & Criteria in 2018 required a submission of the HCV assessment to the HCVRN Quality Panel, which will lead to either acceptance of the assessment or a request to integrate the HCV assessment with the (H)CSA assessment. This in turn will influence the NPP.