PT Sinar Mas Agro Resources and Technology Tbk : Latest 2022 Sustainability Report Demonstrates the Role of Robust Data to Advance Sustainable Supply Chains for Sinar Mas Agribusiness and Food

SINGAPORE, 31 May 2023 - The company's Sustainability Report 2022 showcases Sinar Mas Agribusiness and Food's ongoing commitment to advancing responsible production across palm oil supply chains.

Chairman and CEO Franky O. Widjaja commented on the company's progress on its long-term sustainability targets:

"By the end of 2022, we had achieved 98 percent traceability to plantation (TTP), one of our key sustainability goals. This is the culmination of years of intensive effort, beginning in 2015 when we launched our supply chain traceability project. As a result, we are likely one of the few agri-businesses to have mapped their palm critical suppliers this comprehensively in Indonesia.

"Investing in mapping, knowing our supply chain, and using that data to monitor compliance with sustainability commitments is paying off. Our traceability and related efforts enable us to mitigate risks in our supply chain while offering our customers a clearer overview of their supply chain."

Report highlights include:

Continued progress on the path to 100 percent TTP. Sinar Mas Agribusiness and Food has extended its palm supply chain traceability efforts and has achieved 98 percent TTP, providing comprehensive monitoring of compliance with the company's sustainability commitments, including the implementation of No Deforestation, No Peat and No Exploitation (NDPE) policies. This is reported on annually through the NDPE Implementation Reporting Framework (NDPE IRF).

In line with its commitment to providing robust, transparent sustainability data, selected supply chain indicators, including TTP achievement, have been externally assured by an independent third party for the first time. NDPE IRF data is also externally assured. These advances in supply chain traceability put Sinar Mas Agribusiness and Food at an advantage to comply with increased regulatory scrutiny of deforestation-free supply chains such as the European Union Anti-Deforestation Regulation (EUDR).

Accelerating climate action through the Agricultural Sector Roadmap to 1.5°C. At COP27, Sinar Mas Agribusiness and Food and 13 other companies signed the Agriculture Sector Roadmap to 1.5°C, which aims to accelerate existing action by the agri-commodity sector on deforestation to align with global climate goals in a way that contributes to food security, economic development and farmer livelihoods. As agreed in the roadmap, all of the company's palm oil volumes are expected to be in the "Delivering" category of the NDPE IRF by 2025. Sinar Mas Agribusiness and Food has already achieved more than 90 percent "Delivering" for all of its crude palm oil (CPO) and palm kernel oil (PKO) production.

Stepping up leadership in reporting and transparency. Sinar Mas Agribusiness and Food has started implementing Taskforce on Climate-related Financial Disclosure (TCFD) recommendations and is reporting both scope 3 emissions and Land Use, Land-use Change, and Forestry (LULUCF) emissions for the first time. Work is also progressing on strategies to curb GHG emissions.

Building resilience in rural communities through increased incomes and improved livelihoods. Sinar Mas Agribusiness and Food has launched 76 Community Economic Empowerment projects throughout its Indonesian operations, providing training in organic farming and growing valuable crops like coffee, moringa, medicinal plants and pepper. The company is supporting communities to scale up these initiatives with training in business planning and digital and financial literacy. 37 Micro, Small and Medium Enterprises (MSMEs) have been set up through this programme to date.

Enhancing fire vigilance in anticipation of El Niño. Over 100 villages are enrolled in Sinar Mas Agribusiness and Food's long-term fire prevention programme, Desa Makmur Peduli Api (DMPA), to tackle fire and haze. The company has also enhanced its fire detection capacity, launching the GeoSMART app to detect hotspots three times faster than previous methods. With the possibility of El Niño weather conditions returning in 2023 and 2024, these strategic collaborations are critical to fire and haze mitigation - protecting employees and the community while avoiding GHG emissions.

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About Sinar Mas Agribusiness and Food

Sinar Mas Agribusiness and Food, part of the Golden Agri-Resources (GAR) group of companies, is a leading global agribusiness based on palm oil production, with a planted area of more than 536,399 hectares (including plasma smallholders) as of 31 March 2023. The company has an integrated operation producing food made from raw vegetable oils.

Sinar Mas Agribusiness and Food is focused on sustainable palm oil production. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; merchandising and refining CPO into value-added products such as cooking oil, margarine, shortening, and biodiesel; as well as trading of palm oil products worldwide. It also has operations in China and India including a deep-sea port, oilseeds crushing plants, production capabilities for refined edible oil products as well as other food products such as noodles.

Its parent company, GAR was founded in 1996 and listed on the Singapore Exchange in 1999 with a market capitalisation of US$2.7 billion as of 31 March 2023. Flambo International Limited, an investment company, is currently GAR's largest shareholder, with a 50.56 percent stake. GAR has several subsidiaries, including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.

For more information about our company, visit https://www.smart-tbk.com.

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