2020 PROGRESS AND HIGHLIGHTS

PRIMARY SDGS TO
WHICH WE CONTRIBUTE

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2020 highlights, unless otherwise stated
90% of workers unionized, up from 82% in 2019
In addition to minimum wage, employees receive in-kind benefits amounting to ≥90% of minimum wage
56% decrease in lost time accident rate (frequency rate) since 2016 and 52% decrease in severity rate since 2018
Ongoing donations and support to communities during COVID-19 pandemic
100% of scheme smallholders covered by 2 programs: Kredit Koperasi Primer Anggota (KKPA) and Village Development Program (VDP)
>32,000 independent smallholders# covered by Musim Mas programs
CSR contributions of IDR 22 billion – 57% allocated to schools
14,439 houses provided with access to basic amenities (e.g., safe drinking water, electricity, mosques/religious centers)
5,785 ha of scheme smallholders RSPO-certified (88%) as of June 2021
Over 2,000 independent smallholders RSPO-certified with Musim Mas assistance
Scholarships awarded to 69 students
7,873 hectares of infrastructure area
123,897 MT FFB produced by scheme smallholders, a 14% increase from 2019 and a 41.5% increase from 2016
New Livelihoods Fund for Family Farming (L3F): 10-year project for 2,500 smallholders in Sumatra
20 schools and 49 childcare centers built/funded by Musim Mas
35.6 hectares of land set aside for employee food gardens
New digital finance learning platform for smallholders: AgriON
98.6% of school-age children living at plantations enrolled in school
26 clinics with free healthcare for workers and local communities
# EY has performed limited assurance procedures on these figures
Target Target year Progress in 2020, unless otherwise stated Status
Zero fatalities Ongoing We regret to report seven fatalities in 2020 Not achieved
Maintain Smallholder Hubs in key
landscapes to support third-party
extension services for independent
smallholders
2020 3 Smallholder Hubs set up at:
Aceh Tamiang (Oct 2020)
Aceh Singkil (Feb 2021)
Dayun, Riau (Feb 2021) (small-scale hub)
Partially achieved

PRIMARY SDGS TO
WHICH WE CONTRIBUTE

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2020 highlights, unless otherwise stated
28,210 ha set aside for conservation, 14% of total titled land (~⅓ the size of Singapore)
HCV/HCS assessments conducted for 100% of own plantations
Biodiversity and encroachment monitoring covered for 100% of Musim Mas plantations
144 fire trainings conducted in 2020

75 villages under FFVP, covering 468,569 ha

32 villages rewarded for remaining fire-free
544,220 MT CO2e avoided from 15# methane capture facilities
31,987,614 kWh of electricity generated from methane exported to national grid
More than 5,000,000 GJ of energy generated from PKS and palm fiber
100% zero-waste mills
Target Target year Progress in 2020, unless otherwise stated Status
Collaborate with SEARRP to review and improve biodiversity monitoring methodology 2021 Partnership agreement in progress On track
Reduce mill water usage intensity to below 1.2 m3/MT FFB 2021 We achieved water usage intensity of 1.17 m3/MT FFB# 2, a reduction of 4.9% from 2019 Achieved ahead of schedule
New target:
Maintain water usage intensity below 1.2m3/MT FFB y-o-y
Phase out ten pesticides 2021 Successfully phased out 6 of the 10 pesticides since 2018, including Cypermethrin and Mancozeb in 2020 On track
Equip 17 of 18 mills with methane capture facilities Target revised to 2022 15# methane captures operational; no new methane captures commissioned in 2020 On track
Reduce GHG emission intensity by 55% for RSPO-certified mills against 2006 baseline 2025 Increase in GHG emission intensity of 13.2%# from 2019, however overall reduction in emission intensity of 47% against 2006 baseline On track
Achieve 66% traceability to place of production1: 2020 Achieved 83% overall traceability to plantation, up from 60% in 2019 Achieved, surpassing Roadmap target.
Next target: 100% by 2025
Achieve 100% of CPO traceable to the Group’s plantations Achieved 100%, up from 96% in 2019 Achieved
Achieve 100% of CPO traceable to the Group’s supply base of independent smallholders Achieved 100%, up from 85% in 2019 Achieved
Achieve 80% of CPO traceable to supplier groups’ plantations, including 45% of CPO traceable to suppliers’ independent smallholders using risk-based traceability Achieved 80%, up from 58% in 2019 Achieved
Next target: 100% by 2025
1 Traceability to place of production means traceability to where FFB is produced, i.e., a company’s plantation/concession or a smallholder’s plot of land.
2 The water usage intensity refers to RSPO-certified mills.
# EY has performed limited assurance procedures on these figures

PRIMARY SDGS TO
WHICH WE CONTRIBUTE

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2020 highlights, unless otherwise stated
Received PROPER Green Awards in 8 categories for palm oil companies

ZSL SPOTT:
85.7% Score; Ranked 6th out of 96 palm oil companies in 2020 assessment
Green Tigers:
Score of 79; Ranked 3rd out of 23 palm oil companies
EcoVadis:
Awarded Bronze Medal
Continued partnerships and collaborations
Published 2021 NDP Risk Management Framework
Published and verified NDPE IRF profile

78% of volumes sourced are delivering on No Deforestation commitments
Monitored over 5.2 million hectares# of suppliers’ concessions for fire and hotspots2
Began developing new tools to assess human and labour rights in supply chains in 2021
Launched 5-year landscape Aceh Strategy in September 2020

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Target Target year Progress in 2020, unless otherwise stated Status
100% of new suppliers committed to NDPE Ongoing All new suppliers submitted commitments to NDPE Achieved
Actively monitor for deforestation and peat development for 90% of suppliers 2020 Musim Mas is actively monitoring 100% of its suppliers’ concessions Achieved, surpassing target
Next target: achieve 100%, inclusive of independent mills3
Conduct workshops on NDPE for 80% of supplying mills 2020 Workshops conducted for 76% of supplying mills, up from 51% in 2019 Not achieved, but progress made.
Next target: 100% by 2025
Receive commitment from 90% of supplying mills to abide by NDPE principles 2020 Received commitment from 97% of supplying mills#, up from 80% in 2019. Achieved, surpassing target
Ahead of target to achieve 100% by 2025
Ensure 70% of suppliers have completed the Musim Mas Self- Assessment Tool (SAT) 2020 60% of suppliers# have completed the SAT, up from 24% in 2019 Not achieved, but progress made
Next target: 100% by 2025
Develop system to report risk levels of suppliers for all sourcing areas 2021 Currently developing a consolidated reporting system in line with 2021 NDP Risk Framework for the Aceh province On track
Note: Our NDPE Roadmap, which was launched in September 2019, will be reviewed and updated in 2021). Please refer to our website for the latest version: https://www.musimmas.com/sustainability/ndpe-roadmap/.

2 The figure and scope of monitoring has been restated.
3 Independent mills are mills under Musim Mas’ control that source from independent smallholders instead of Musim Mas plantations.
# EY has performed limited assurance procedures on these figures

PRIMARY SDGS TO
WHICH WE CONTRIBUTE

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2020 highlights, unless otherwise stated
Musim Mas’ CPO yield 1.8 times higher than the global average in 2020
Worked with Satelligence to conduct baseline land-use analysis study using advanced imaging to detect planted and forested areas

PRIMARY SDGS TO
WHICH WE CONTRIBUTE

Other sustainability highlights and targets

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2020 highlights, unless otherwise stated
100% mills with plantations RSPO-certified (as of June 2021)
152,547 ha RSPO-certified, including scheme smallholders’ land (as of June 2021)
11 out of 17 PTs are ISPO-certified (65%) (as of August 2021)
13 out of RSPO 15 mills POIG verified (87%)
Updated Sustainability Policy 2020-2025 (launched in September 2020)
Aligned Musim Mas objectives with SDG goals and targets

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Target Target year Progress in 2020, unless otherwise stated Status
Complete certification for remaining certifiable mill, PT Sarana Esa Cita 2021 Certified in June 2021 Achieved