What policies has REA implemented?

_{Achieve the RSPO certification for REA’s three 3 existing palm oil mills}

_Ongoing

• POM & COM certification was obtained in June 2011
• POM 2^nd cycle recertification audit was conducted in April 2021 (remote audit) and in October 2021 (onsite audit). The audit was carried out in 2 stages due to Covid-19 restrictions
• POM 2^nd cycle recertification achieved in October 2021
• COM 2^nd cycle recertification audit conducted in May 2022
• COM 2^nd cycle recertification achieved in August 2022
• POM 1st surveillance audit successfully conducted in April 2022
• Tepian Estate has been excluded from the POM supply since 2019 due to an outstanding compensation liability that is currently being resolved with RSPO
• KMS estate successfully recertified as COM’s supply base in 2020
• SOM is awaiting certification (pending resolution of an outstanding HCV compensation liability)

_{Achieve RSPO certification for the 2 new palm oil mills that the group had expected to commission in 2019/2020 in CDM and PBJ}

_{Not applicable}

_{Development of the CDM mill has been delayed as there is no immediate requirement; PBJ was sold in 2018, obviating the need for an additional mill}

_{No new development after 15 November 2018 within the HGU area without an HCV and HCS assessment conducted by an independent HCV-HCS ALS (Assessor License Scheme) assessor}

_Ongoing

<sub>Achieved. No new development is, or will be, permitted to take place before completion of an HCV assessment by an independent HCV-HCS ALS assessor

HCV assessment reports for PU and KKS have been approved in February 2021 by the HCVRN quality panel

HCSA standalone report for PU approved in June 2022 by HCSA Steering Committee</sub>

_{Map all encroachment within the conservation reserves and develop an action plan to restore these areas}

_Ongoing

_{REA is continuously monitoring conservation areas and mapping encroachment sites, and has developed an action plan to tackle the encroachment and regenerate the areas}

_{No new development on peat}

_Ongoing

_{Achieved for all developing estates which undergo soil surveys prior to development}

_{Reduce the intensity of GHG emissions per planted hectare}

_Ongoing

_{Achieved. The 3 existing mills (POM, COM and SOM) have identified and monitored all sources of GHG emissions from their operational activities}

_{In 2021, gross carbon dioxide emissions associated with REA's palm oil operations in Indonesia were slightly higher compared with 2020, reflecting higher emissions from fertiliser, fuel use and POME. The increase in emissions from POME is due to an increase in the volume and COD value of POME}

_{Net emissions in 2021 were lower than in 2020, due to overall reduced emissions from several sources and increased carbon sequestration from excess electricity, decreased emissions from kernel crushing and the addition of areas designated as high carbon stocks outside of the HCV areas. However, there is a decrease in carbon sequestration from oil palm where plantations are now over 25 years old. This is because the Palm GHG calculator (v.4.0.1.) assumes replanting after 25 years, so they are no longer included as a source of carbon sequestration despite the fact that this does not necessarily reflect the true situation}

_{Reduce the volume of water used to process each tonne of FFB in all 3 mills}

_Ongoing

_{The 3 mills (POM, COM and SOM) monitor water usage on a monthly basis; efficiency of water use in 2021 decreased slightly compared to 2020, to 1.36 m³ per tonne FFB}

_{No work-related fatalities}

_Ongoing

_{In 2021, there were no incidents resulting in fatality. Safety performance saw a significant improvement in 2021, as the number of work accidents decreased from 1,408 in 2020 to 656 in 2021 and the number of lost days decreased from 13,822 in 2020 to 1,010 in 2021}

_{The group treats any fatality within its premises extremely seriously and responds in the same way irrespective of whether or not the incident is considered to be work-related. There is a rigorous incident investigation and reporting procedure to ensure that the cause of any incident is properly identified and that the senior management and operational teams implement any necessary remedial action across the group to minimise the risk of repeat occurrences}

_{Obtain OHSAS 18001 certification}

₂₀₂₃

_{Delayed until 2023 as the group works towards full implementation with monthly internal audits and inspections conducted in accordance with the standard}

_{Reduce lost time accident rates}

_Ongoing

_{In 2021, 183 Lost Time Incident (LTI) cases with 1,010 working days lost were recorded compared with 824 LTI cases with 13,822 working days lost in 2020}

_{The company is committed to continuing to reduce the number of work accidents through safety programs that are integrated with operational activities. The focus of continuous improvement to achieve zero accident rates is to improve safety leadership which must be present at all levels from the foreman to senior management. Best management practices (BMPs) are continuously improved and worked upon through promoting and campaigning for safe work environments and compliance with standard safety equipment and infrastructure}

_{No employees under the age of 18}

_Ongoing

_{Achieved: no employees under the age of 18}

_{Reduce employee turnover rates}

_Ongoing

_{The total employee turnover ratio decreased from 13% in 2020 to 11% in 2021}

_{Develop PPMD and plasma smallholder oil palm plantings equivalent to at least 20% of the total area planted by the REA group}

_Ongoing

_{Delayed. Land has been acquired to increase this percentage and is currently undergoing the appropriate assessments prior to development into oil palm}

_{Achieve RSPO certification for the mature associated smallholder plantings supplying the group’s 3 existing mills}

₂₀₂₅

_{The group is focusing on the RSPO certification plan for smallholder cooperatives, but this will take time to achieve with significant preparatory work required, such as providing socialisation and training to several independent farmer cooperatives. There are currently 2 associated smallholders preparing the certification plan for approval by the RSPO}

_{No new development without the FPIC of local communities}

_Ongoing

_{No new development takes place without the FPIC of the local community}

_{100% traceable supply base for all three mills}

_{Completed in 2018 & ongoing}

_{100% traceable supply base for all 3 mills: mapping and tracking of smallholders was completed in 2018}