The Group believes that palm oil can be produced in a sustainable manner if a responsible approach is adopted. The
Group’s business model, in which environmental stewardship is an integral part, is geared to balance the conside ration for profitability with care for the environment. In line with this, the Group is committed to minimise the impact of commercial agricultural activities on the environment. This is done by adopting best management practices in oil palm cultivation while in parallel pursuing green initiatives such as biodiversity conservation and enhancement. The Group values engagement with relevant stakeholders so as to promote this message. It is hoped
that by strengthening the dialogues, greater understanding on sustainable palm oil production can be forged.
LAND USE,CONSERVATION AND CARBON SEQUESTRATION
About 9% or 6,413 acres of its land bank in Sabah
has been reserved by the Group for the purposes
of conservation, education, recreation and training.
Various natural landscapes are found on this reserve
and they are scattered across the Group’s operating
units. These include wetlands, water bodies, hilly terrain
and secondary forest with conservation value. The
overall land use for the Group is highlighted in the chart
below. There were no significant changes in land use
as compared to the previous year, except for immature
areas that have been reclassified as mature with the
palms planted on them coming into production.
The Group’s “Hundred-Acre Wood”, located in the midst
of tropical rainforest in Sugut region remains the most
visible statement and crowning glory of its commitment on sustainable green projects. The icon showcases the Group’s eco-conservation initiatives and centre for strengthening dialogues and education. The Group has established a training centre in this location. The natural surrounding also makes it an excellent spot for recreation. The plot of land covering over 100acres has ecologically important habitats that not
only provide ecological services such as preventing
erosion on steep slopes, reducing soil degradation and
re-establishing a functional network of natural habitat, they also provide aesthetic values and recreational
purposes.
“Hundred-Acre Wood” is important as it is the remaining remnant of forest that serves as the functional green corridor for the adjacent natural habitat. In the recent 2 days and 1 night bird and avi-fauna survey conducted by a group of bird enthusiasts and ornithologist, 70 species of bird were found and identified in the surrounding area of the “Hundred-Acre Wood”. In addition, few regularly sighted bird species are now the permanent residents in the “Hundred-Acre Wood” which mainly grazes on the fruits found in the wild and those planted in the fruit orchard.
The Group continued with the forest tree planting
project and various sites have been identified in the
estates for tree planting. In the reporting year, a nursery
for forest tree saplings has been established in Meliau
Estate in Sandakan. The flood-resistant tree species, bongkul
(Neonauclea subdita), which were planted in the low lying
areas in Sugut survived through the massive flood during
the monsoon season and are growing vigorously.
Oil palm trees have high rates of net primary productivity
and biomass growth, hence contributing in carbon sequestration. Based on the methodology developed by Malaysian Palm Oil Board (“MPOB”), the total carbon
sequestered in the reporting year has reached more than737,500 metric tonne or 29 metric tonne per planted hectare, based on the total planted area with age profileranging from 1 to 24 years. The Group monitored the total amount of carbon sequestered from its plantations in Sabah since year 2006, and the amount of carbon
sequestered has increased every year as more palm trees attained maturity.
RESOURCE STEWARDSHIP
Soil Management
Best Management Practices
Although oil palm trees positively contribute in carbon
sequestration throughout the crop cycle, much of the
carbon sequestered will eventually be returned to the
atmosphere when the palms are felled. The return of
the biomass to the soil is critical to ensure long-term
soil fertility. In the replanting of Desa Talisai Estate, zero
burning technique was adopted where all the biomass is
shredded, chipped and well spread on the site for in-situ
decomposing.
The Group’s Planting Manual and other Standard
Operating Procedures which incorporate best
management practices are the references for performance
excellence in the operations throughout the Group. These
practices will help to improve soil fertility, reduce erosion
and leaching losses. In addition, legume cover crop is
planted to reduce surface run-off and to restore soil
fertility prior to the planting of oil palm seedlings. As and
where required, terracing was realigned during replanting
with proper silt drain on each terrace. Proper frond stacking
and systematic application of empty fruit bunches
and biocompost are also carried out. A green practice
minimising the usage of herbicide and no blanket spraying
is implemented.
Optimal Utilisation of Agrochemicals
The Group’s fertiliser application programme is
recommended and monitored by the in-house agronomist
under the ambit of the research and development
department. The fertiliser programme is recommended
based on scientific data derive from the leaf nutrient
analysis and yield performance profile of the palm trees.
Palm trees grown on marginal soil are closely monitored
on their nutrient balance requirement. In addition,
agronomy practices for these palms also involve best
practices such as mulching and soil conditioning with
empty fruit bunches and biocompost.
The Group has also implemented integrated pest management (“IPM”) which involves a combination of
different pest management techniques. This includes
pest and disease census, surveillance and monitoring as
well as appropriate treatments. This integrated approach
helps to maintain a high level of biodiversity in the
estate, while keeping the level of pest population below
thresholds. In the reporting year, 2,407 predatory insects
such as Cantheconedia spp. and Platynopus spp. were
bred in insectariums and were released to the field for
biological control.
Water Conservation
All the operating units in the Group have more than one
water reservoirs for water security. They serve as part of
the risk management during drought season. The original
vegetation around the water reservoirs are still intact and
in some areas, fruit trees and timber species are planted
around the perimeter of the water reservoirs. Agrochemical
weeding and inorganic fertilisation are strictly prohibited
near the water catchment area. Perimeter silt drain and
traps are installed to reduce sedimentation in some areas
where siltation may affect the quality of the water source.
Water quality is being monitored through annual water
sample analysis by accredited third party laboratory based
on the guidelines of World Health Organisation (“WHO”)
drinking water standard.
The palm oil mill effluent (“POME”) is treated before being
channelled to the selected fields for land irrigation. The
Group strives to reduce the Biological Oxygen Demand
(“BOD”) through tertiary effluent treatment plant. We
continue to closely monitor the amount of water used
per tonne of fresh fruit bunches processed to ensure the
optimal use of water.
For domestic consumption, all houses in the operating
units are equipped with plastic water storage tanks to
harvest rainwater. Harvesting rainwater can reduce the
dependency on water supply from the treatment plant
and it is also a source of good quality water. The rainwater
can be used for washing and bathing purposes, while the
treated water from the water reservoir is used for human
consumption.
In the pre-nursery management, the pot tray system has been adopted. This system confers several advantages
against the conventional polybag system. This system
allows reduction in the consumption of important
resources such as water and soil. In the main nursery, drip
irrigation technology replaced the conventional sprinkle
watering system. This precise irrigation system has helped
to minimise water consumption and achieve uniformity in
the growth of oil palm seedlings.
Air Quality Management
The Group has also made significant progress in reducing
smoke and air pollutant levels in its processing plants.
The Continuous Emission Monitoring System (“CEMS”)
have been installed in the plants and are linked up to the
Department of Environment via dial-up communication.
Solid Waste Management
The Group continued to review and improve its waste
management strategy. Palm oil mill by-products are
utilised and recycled back to the fields. The landfill sites
for household wastes in the operating units are carefully
selected based on site topography and soil suitability to
avoid water source contamination. All chemical containers
are triple-rinsed, punctured with holes to prevent re-use
for water storage. The empty containers are then securely
kept in the special storage area prior to submission to
authorised recycling vendors.
EMISSION REDUCTION
The Group is cognisant of the global climate change
issues and believes that it can play a vital role in reducing
the green house gaseous (“GHG”) emission from its
agricultural activities.
The Group is committed to reduce GHG emission by
adopting the industry best practices,new technologies
and innovations. One of the main sources of GHG
emission is from the fossil fuels used in the operations and
transportation. Zero burning policy is strictly adhered to
for new land clearing or re-planting activities. Crude palm
oil and palm kernel from the processing plants in Sugut
region are mostly transported out to Sandakan via sea
transport instead by road. This is cost effective and it also
reduces the GHG emission arising from transportation.
The Group has incorporated methane capturing in the
construction of a new palm oil mill in Indonesia. The plant
will capture methane gas from the POME discharge stream
and utilise it for power generation. GHG emission will be
reduced through avoidance in methane emission and
substitution of fossil fuel for power generation.
The Group has a biocomposting plant in Sugut that has
been in operation since 2004. The plant converts the empty
fruit bunches (“EFB”) and POME to organic biocompost
for use in the estates. The use of POME and EFB in the
composting plant results in zero discharge and helps to
reduce the GHG emission. In palm oil mills where EFB is
no longer incinerated, they are utilised as organic mulch in
field. Biomass, such as fibre and shell, are utilised as fuel in
the boilers for steam and power generation in replacement
of non-renewable fossil fuels.