The expansion of agriculture has a significant impact on biodiversity, primarily through loss of habitat. Secondary to this are the impacts related to the intensification of land use, which have traditionally required the use of agrichemicals and soil tilling. To address these issues and impacts, SIPEF has made the below commitments that apply to both its own operations and to those of its suppliers.
Since November 2014, SIPEF has committed to no deforestation and to no new plantings on peat of any depth for all of its crops. For oil palm, SIPEF is also committed to the Roundtable on Sustainable Palm Oil (RSPO) Remediation and Compensation Procedure (RaCP) in its own operations and in that of plasma supplier programs. For both its own operations and its suppliers, the commitment is implemented through the respective RSPO procedures.
All new developments undergo an integrated High Carbon Stock Approach (HCSA) and High Conservation Value (HCV) Assessment in line with current relevant standards and prior to any land development. The process includes a peer review of the HCV/HCS assessments, all of which are available on the HCV Resource Network and HCSA websites.
In 2020, SIPEF has started utilizing the Global Forest Watch (GFW) platform as a remote sensing tool for monitoring its HCV and HCS areas for potential encroachment and land use change. This monitoring currently covers a total of 13 165.64 hectares, the full scope of the conservation areas of SIPEF’s own operations in Indonesia. The Group is working to expand its GFW monitoring activities to include the conservation areas of the Company's operations in Papua New Guinea, as well the areas of its suppliers.
The results of the GFW monitoring activities are disclosed in the SIPEF Sustainability Report as of 2020. In addition, a visual layering of the locations of any illegal/non-compliant deforestation identified through the monitoring activities can be enabled using the SIPEF Traceability Tool, Geo SIPEF.
The Group is further working with other partners on the monitoring activities to verify and update accurately all of the data and information. More information will be published on this work in the 2021 Sustainability Report.