Sustainability
Deforestation Free
We prioritise environmental preservation, protection of biodiversity, and the rights of local communities while advancing responsible agricultural practices and renewable energy initiatives to mitigate climate impact and promote long-term sustainability.
Environment
Climate & Nature Risks Mitigation
Our climate and nature risk mitigation approach is how we identify, manage, and reduce the negative impacts of environmental and ecological challenges on its operations.
Risk Management Approach
- We embed climate and nature-related risks into our overall business risk management process, guided by certifications and standards like ISO 14001, ISPO, and ISCC.
- Our risks are assessed by likelihood and impact (low, medium, high), and mitigation strategies are developed for each one. For example, bunding and drainage help reduce flood impacts, while fire watchtowers and drone patrols mitigate wildfire risk
Mitigation Strategies
- Operational measures: Recording rainfall, fire patrols, early warning systems, conservation reserves, and replanting practices to safeguard plantations.
- Governance & oversight: Risks are reviewed annually, escalated to the Board when significant, and integrated into corporate, operational, and engineering risk registers
- Sustainability commitments: Achieving certifications (ISPO, MSPO), protecting biodiversity, complying with environmental laws, and aligning with international frameworks like the TNFD.
Environment
High Conservation Value & High Carbon Stock
What Are High Conservation Value (HCV) and High Carbon Stock (HCS) Areas and their Misconceptions?
HCV and HCS areas are the same and managed identically.
Clarification:HCV areas are natural habitats identified for their significant biodiversity, rare species, ecosystem services, or cultural values. HCS areas specifically denote forested lands critical for carbon storage to mitigate climate change. AEP maps and protects these areas differently according to their distinct ecological and climate roles, applying tailored conservation and recovery plans to each.
All forested lands must be left untouched regardless of classification.
Clarification:While AEP strictly prohibits planting in identified HCV and HCS areas to preserve biodiversity and carbon sinks, they apply sustainable management and recovery obligations only on areas determined as truly critical. For newly cleared lands, full recovery and social forestry programs are implemented to restore lost HCS areas with community involvement, showing a balanced approach to responsible development and environmental stewardship.
HCS protection ignores social and community considerations.
Clarification:AEP’s sustainability approach integrates social forestry development and engagement with local communities and indigenous rights, ensuring Free, Prior and Informed Consent (FPIC) processes are respected. Land recovery in HCS loss areas includes long-term community co-management agreements, highlighting the fusion of environmental and social commitments in protecting high carbon stock forests.
High carbon stock forests don’t overlap with HCV areas.
Clarification:Some carbon-rich forests may also contain HCV values such as biodiversity or cultural significance. AEP’s approach involves mapping both HCV and HCS areas and ensures that overlapping zones receive integrated protection measures that address both biodiversity and carbon storage goals for comprehensive sustainability.
High Conservation Value (HCV):
We comply with preserving HCV and HCS areas as recognised by the Indonesian Department of Forestry. These areas were mapped with boundaries clearly marked by independent surveyors to ensure no planting occurs within them. They are regularly patrolled to prevent encroachment, with monitoring and management plans in place to protect flora and fauna. Natural vegetation on uncultivable lands whether deep peat, steep areas, riparian zones and mangroves are spared from planting to:
- Preserve biodiversity
- Protect wildlife corridors
- Prevent soil erosion
Importance of these areas:
- Biodiversity Protection
- Climate Regulation
- Fire Risk Reduction
- Coastal & Community Protection
- Sustainability Commitments
Environment
Best Management
Practices
Governed by an individual Standard Operating Procedure (SOP), we seek to inculcate Best Management Practices for optimal production, judicious use of resources and environmental preservation.
Integrated Pest Management:
To control the population of damaging pests and to improve biological balance while reducing dependency on chemical pesticides, barn owls, which are natural predators, have been introduced to control the rat population, replacing the use of rat baits. Beneficial plants such as Turnera subulata, Cassia cobanensis and Antigonon leptopus were planted to attract natural predators for biological control of bagworms and leaf-eating caterpillars.
Soil Management:
The Group has a strict no-peat planting policy since 2019 to protect sensitive peatlands and maintains permanent water gates in existing peat areas to keep water levels stable.
Peat Management:
The Group enforces a strict no new planting policy on peatlands to protect these sensitive ecosystems. Existing peat plantations are carefully managed with water level controls to prevent degradation and fire risks.
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Environment
BioGas
& BioCNG
At AEP, palm by-products such as palm oil mill effluent and empty fruit bunches are sustainably converted into biogas and upgraded BioCNG. These renewable energy sources are used for electricity generation, industrial processes, and transportation within the estates, significantly reducing greenhouse gas emissions and dependence on fossil fuels.