PT Perusahaan Perkebunan London Sumatra Indonesia Tbk : ESG Report

2021 Sustainability Report

PT PP London Sumatra Indonesia Tbk

At

Sustainability

Business

CEO Statement

a Glance

Approach

Overview

Environment

Sourcing

People

Community

Appendix

Sambutan

Sekilas

Pendekatan

Tinjauan

Lingkungan

Pasokan

Sumber Daya

Masyarakat

Apendiks

Presiden Direktur

Keberlanjutan

Usaha

Manusia

Independent Assurance Statement

Verifikasi Tertulis dari Pihak Independen

Independent Assurance Statement

Report No. 0522/BD/0020/JK

∙	Interviews of relevant staff involved in
	sustainability-related	management	and
	reporting
∙	Following data trails to the initial aggregated

All key assurance findings are included herein, while detailed observations and follow-up recommendations have been submitted to LSIP management in a separate report.

To the Management of PT PP London Sumatra

Indonesia Tbk,

We were engaged by PT PP London Sumatra Indonesia Tbk ('LSIP') to provide assurance in respect to its Sustainability Report 2021 ('the Report'). The assurance engagement was conducted by a multidisciplinary team with relevant experience in sustainability reporting.

Independence

We carried out all assurance undertakings with independence and autonomy having not been involved in the preparation of any key part of the Report, nor did we provide any services to LSIP during 2021 that could conflict with the independence of the assurance engagement.

Assurance Standards

Our work was carried out in accordance with ISAE3000 'Assurance Engagements other than Audits or Reviews of Historical Financial Information,' issued by the International Auditing and Assurance Standards Board. This standard requires that we comply with ethical requirements and plan and perform the assurance engagement to obtain limited assurance.

Level of Assurance

By designing our evidence-gathering procedures to obtain a limited level of assurance based on ISAE3000, readers of the Report can be confident that all risks or errors have been reduced to a very low level, although not necessarily to zero.

Scope of Assurance

The scope of our work is restricted to the following selected information:

• Water, effluent and waste
• Occupational health and safety
• Responsible sourcing and certification

Responsibility

LSIP is responsible for the preparation of the Report and all information and claims therein, which include established sustainability

management targets, performance management, data collection, etc. In performing this engagement, meanwhile, our responsibility to the management of LSIP is solely for the purpose of verifying the statements it has made in relation to its sustainability performance, specifically as described in the selected information, and expressing our opinion on the conclusions reached.

Methodology

In order to assess the veracity of certain assertions and specified data sets included within the report, as well as the systems and processes used to manage and report them, the following methods were employed during the engagement process:

• Review of the report, internal policies,
  documentation, management and information systems

source, to check samples of data to a greater

depth.

Limitations

Our scope of work was limited to a review of the accuracy and reliability of selected sustainability performance-related information. It was not designed to detect all weaknesses in the internal controls over the preparation and presentation of the Report, as the engagement has not been performed continuously throughout the period and the procedures performed were undertaken on a test basis.

Conclusions

Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the Report has not been properly prepared and presented, in all material respects.

Jakarta, May 23, 2022

James Kallman

Chief Executive Officer

Moores Rowland is an international organization specializing in audit, accounting, tax, legal and advisory services. Moores Rowland is a member of Praxity AISBL, the world's largest Alliance of independent and unaffiliated audit and consultancy companies.

With more than 33,400 professionals operating in 97 countries across the globe, each sharing the same values and sense of responsibility, Praxity is served by Moores Rowland in Indonesia, one of the leading sustainability assurance providers.

PT. Moores Rowland Indonesia

Jl. Sisingamangaraja No. 26 - Jakarta Selatan 12110 - Indonesia

Tel: [phone] - Fax: [phone] - www.moores-rowland.com

PT. Moores Rowland Indonesia

Jl. Sisingamangaraja No. 26 - Jakarta Selatan 12110 - Indonesia

Tel: [phone] - Fax: [phone] - www.moores-rowland.com

PT PP London Sumatera Indonesia Tbk

Sustainability Report | Laporan Keberlanjutan | 2021

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At

Sustainability

Business

CEO Statement

a Glance

Approach

Overview

Environment

Sourcing

People

Community

Appendix

Sambutan

Sekilas

Pendekatan

Tinjauan

Lingkungan

Pasokan

Sumber Daya

Masyarakat

Apendiks

Presiden Direktur

Keberlanjutan

Usaha

Manusia

Content

Daftar Isi

Independent Assurance Statement	02
Verifikasi Tertulis dari Pihak Independen
CEO Statement	06
Sambutan Presiden Direktur
2021 At A Glance	08
Sekilas 2021
Our Approach To Sustainability	10
Pendekatan Keberlanjutan Kami
Our Covid-19 Response	21
Reaksi Kami Terhadap Covid-19
Business Overview	23
Tinjauan Usaha
Environmental Protection	27
Perlindungan Lingkungan Kami
Responsible Sourcing	43
Pasokan Yang Bertanggung Jawab
Our People	52
Pekerja Kami
Community Relations	61
Hubungan Kemasyarakatan
Appendix	67
Ringkasan Data

About LONSUM, Our Vision, Mission and Values

PT PP London Sumatra Indonesia Tbk (LONSUM) is listed on the Indonesia Stock Exchange with headquarters in Jakarta. LONSUM and its subsidiaries operate plantation and processing facilities to produce palm oil, rubber, cocoa and tea. The group also operates research & development, and seed breeding.

Our Vision is to be the leading 3C (Crops, Cost, Conditions) and research-driven sustainable agribusiness.

Our Mission to add value for stakeholders in agribusiness.

Our Values guide our work: with discipline as the basis of our way of life, we conduct our business with integrity, we treat our stakeholders with respect, and together we unite to strive for excellence and continuous innovation.

Tentang LONSUM, Visi, Misi, dan Nilai-Nilai Kami

PT PP London Sumatra Indonesia Tbk (LONSUM) tercatat di Bursa Efek Indonesia dengan kantor pusat di Jakarta. LONSUM dan anak perusahaannya mengoperasikan fasilitas perkebunan dan pengolahan untuk menghasilkan minyak kelapa sawit, karet, kakao dan teh. Grup ini juga mengoperasikan penelitian & pengembangan, serta pemuliaan benih.

Visi kami adalah menjadi perusahaan agribisnis terkemuka yang berkelanjutan dalam hal Produksi, Biaya, Kondisi (3C) yang berbasis penelitian dan pengembangan.

Misi kami adalah untuk menambah nilai bagi "stakeholders" di bidang agribisnis.

Nilai-nilai yang mendorong bagaimana kami bekerja: dengan disiplin sebagai falsafah hidup, kami menjalankan usaha kami dengan menjunjung tinggi integritas, kami menghargai seluruh pemangku kepentingan dan secara bersama membangun kesatuan untuk mencapai keunggulan dan inovasi berkelanjutan.

PT PP London Sumatera Indonesia Tbk

Sustainability Report | Laporan Keberlanjutan | 2021

3

At

Sustainability

Business

CEO Statement

a Glance

Approach

Overview

Environment

Sourcing

People

Community

Appendix

Sambutan

Sekilas

Pendekatan

Tinjauan

Lingkungan

Pasokan

Sumber Daya

Masyarakat

Apendiks

Presiden Direktur

Keberlanjutan

Usaha

Manusia

Our Policy |Kebijakan Kami

Our Sustainable Agriculture Policy (Policy) is approved at Board level and guides all our sustainability programmes. It applies to all our operations, including our plasma smallholders and other third-party suppliers from whom we purchase for our factories. Key Policy commitments to deliver sustainably produced products are:

1. No deforestation; conservation of High Conservation Value (HCV) and High Carbon Stock (HCS) areas
2. No planting on peat regardless of depth
3. No burning
4. Respect for Labour and Human Rights, including Freedom of Association and non- discrimination
5. Free Prior and Informed Consent (FPIC)

Kebijakan Agrikultur Berkelanjutan (Kebijakan) kami menjadi panduan bagi seluruh program keberlanjutan kami. Kebijakan ini berlaku bagi seluruh kegiatan usaha kami, termasuk para petani plasma dan pemasok pihak ke tiga dari mana kami membeli bahan baku untuk pabrik kami. Komitmen utama dari Kebijakan untuk memproduksi produk yang berkelanjutan adalah sebagai berikut:

1. Larangan deforestasi, konservasi Kawasan Bernilai Konservasi Tinggi (KBKT/HCV) dan area dengan Stok Karbon Tinggi (SKT)
2. Larangan penanaman di area gambut dengan kedalaman berapapun
3. Larangan pembakaran
4. Penghormatan atas Hak Asasi Manusia, termasuk kebebasan berserikat dan tanpa diskriminasi
5. Pelaksanaan Persetujuan atas Dasar Informasi di Awal tanpa Paksaan (Padiatapa).

Read more online

Baca lebih lanjut online

Our Sustainability Report |Laporan Keberlanjutan Kami

Our 5th Sustainability Report communicates our performance and progress against our Policy commitments and targets on material topics for the calendar year 2021. This report should be read alongside our Annual Report and website. Relevant links are provided in the report.

This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. We have chosen the GRI reporting standards and principles to ensure stakeholder inclusiveness, accuracy, clarity, reliability, and comparability of the information presented in this report. The report also complies with requirements of the Peraturan Otoritas Jasa Keuangan Nomor 51/POJK.03/2017. LONSUM has commissioned a third-party assurance on this report.

We welcome your feedback or questions at [e-mail]. Previous reports are available online.

Laporan keberlanjutan kami yang ke-5 ini mengkomunikasikan performa dan perkembangan kami terhadap komitmen dari Kebijakan ini serta target untuk topik-topik material untuk tahun 2021. Laporan ini dapat dibaca bersama Laporan Tahunan dan situs webkami. Tautan yang relevan disampaikan juga dalam laporan ini.

Laporan keberlanjutan ini telah disiapkan sesuai dengan Standar Global Reporting Initiative (GRI): Opsi inti. Kami telah memilih standar dan prinsip pelaporan GRI untuk memastikan keterlibatan pemangku kepentingan, akurasi, kejelasan, keandalan, dan komparabilitas informasi yang disajikan dalam laporan ini. Laporan ini juga memenuhi persyaratan dari Peraturan Otoritas Jasa Keuangan Nomor 51/POJK.03/2017. LONSUM telah meminta jaminan pihak ketiga atas laporan ini.

Kami menyambut umpan balik atau pertanyaan Anda di [e-mail]. Laporan sebelumnya tersedia online.

PT PP London Sumatera Indonesia Tbk

Sustainability Report | Laporan Keberlanjutan | 2021

4

At

Sustainability

Business

CEO Statement

a Glance

Approach

Overview

Environment

Sourcing

People

Community

Appendix

Sambutan

Sekilas

Pendekatan

Tinjauan

Lingkungan

Pasokan

Sumber Daya

Masyarakat

Apendiks

Presiden Direktur

Keberlanjutan

Usaha

Manusia

Reporting Scope |Ruang Lingkup Pelaporan

The scope of this report covers our most dominant crop, oil palm, which occupies 82% of our total planted area, and our rubber operations, which occupy 14%t of our total planted area. There is no significant change to the size, structure or ownership of our company compared to the previous report.

Financial, employee, community and health and safety data refer to the whole Group (all operations). Our responsible sourcing and product data include only our palm oil operations.

Our environmental data includes the following sites in our palm oil and rubber operations:

• ISPO-certified/audited plantations: 27 out of 38 sites

• ISPO and/or PROPER-certified/audited mills: 9 out of 12 sites
• Rubber plantations: 6 out of 6 sites
• Rubber factories: 3 out of 3 sites

Ruang lingkup laporan ini mencakup tanaman kami yang paling dominan, kelapa sawit, yang menempati 82% dari total area tanam, dan operasi karet, yang menempati 14% dari total area tanam kami. Tidak ada perubahan signifikan pada ukuran, struktur atau kepemilikan perusahaan kami dibandingkan dengan laporan sebelumnya.

Data keuangan, karyawan, masyarakat dan kesehatan dan keselamatan mengacu pada keseluruhan Grup (semua operasi komoditas). Sumber dan data produk kami yang bertanggung jawab hanya mencakup operasi minyak sawit kami.

Data lingkungan kami mencakup operasional kelapa sawit dan karet kami, yaitu:

• Perkebunan bersertifikat / diaudit ISPO: 27 dari 38 lokasi
• Pabrik bersertifikat / diaudit ISPO atau PROPER: 9 dari 12 lokasi
• Perkebunan karet: 6 dari 6 lokasi
• Pabrik karet: 3 dari 3 lokasi

PT PP London Sumatera Indonesia Tbk

Sustainability Report | Laporan Keberlanjutan | 2021

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