Golden Agri Resources : INTERACTIVE SR2022

SUSTAINABILITY REPORT 2022

GOLDEN AGRI-RESOURCES LTD

Photo by Uti Heriansyah

03_	04_	07_	11_
About this	Chairman's	Interview with GAR's	ESG Performance
Report	Statement	Chief Sustainability and	Update
		Communications Officer

21_	26_	35_	38_
About GAR	Our ESG	Materiality	Stakeholder
	Approach	Assessment	Engagement
40_	51_	56_	66_
Marketplace and	Our Customers	GAR in the	Our People
Supply Chain		Community
76_	90_	97_	99_
Our Environmental	Climate Change/	GAR and the	Assurance
Management	TCFD report	UN SDGs	Statement
106_	107_

RAMONA CARRYING OUT MECHANICAL FERTILISATION IN PEKAWAI ESTATE

The cover photo entitled

"Ramona carrying out mechanical fertilisation in Pekawai Estate" was taken by Uti Heriansyah. We are committed to offering women equal opportunities in our operations.

Glossary	Feedback and
	Contact

ABOUT THIS REPORT

CONTENT	ESG PERFORMANCE UPDATE	SUPPLY CHAIN	COMMUNITY	PEOPLE	ENVIRONMENT	CLIMATE CHANGE	GOLDEN AGRI-RESOURCES LTD	3
							SUSTAINABILITY REPORT 2022

A B O U T

T H I S R E P O R T

This Sustainability Report provides an account of our progress and challenges in managing our most critical sustainability topics in FY2022.

Unless otherwise stated, this report focuses on the company's activities in Indonesia, where the majority of our operations are based. For the first time, we have included data on our global workforce in the chapter "Our People".

We have prepared this report in accordance with Global Reporting Initiative (GRI) Standards and the relevant sector standards for Agriculture, Aquaculture and Fishing. We have used the GRI reporting framework since we began reporting on our ESG performance in 2011 and continue to use it as it is the most widely-used reporting framework globally. The full GRI content index can be found on the GAR website.

Our report also contains disclosures recommended in the Agricultural Products Sustainability Accounting Standard (Industry Standard, Version 2018-10) that was developed by the Sustainability Accounting Standards Board (SASB). The SASB disclosure index can be found on our website.

We are reporting on climate-related disclosures based on Task Force for Climate-related Financial Dislcoures (TCFD) recommendations.

We are proud to present photos taken by our employees throughout this report. They range from shots of estates, operations, local communities and the diverse flora and fauna found in our areas.

Assurance

We have engaged PricewaterhouseCoopers LLP to undertake a Limited Assurance on selected sustainability information related to supply chain in our Sustainability Report for FY2022. In the next few years, we will be expanding the number of indicators selected for limited assurance. Other information related to our material topics including High Carbon Stock (HCS), High Conservation Value (HCV) and Free, Prior and Informed Consent (FPIC) is reviewed by certification bodies such as the Roundtable on Sustainable Palm Oil (RSPO). Our NDPE IRFdata is also undergoing verification by Control Union. The data for this report has also been reviewed internally.

Photo by Ricki Hamdani Sinaga

CHAIRMAN'S STATEMENT	CONTENT ESG PERFORMANCE UPDATE SUPPLY CHAIN COMMUNITY PEOPLE ENVIRONMENT CLIMATE CHANGE	SUSTAINABILITY REPORT 2022	4
	GOLDEN AGRI-RESOURCES LTD

C H A I R M A N ' S S T A T E M E N T

By the end of 2022, we had

achieved 98 percent traceability to plantation (TTP)*. As a result, we are likely one of the few agri-businesses to have mapped their palm critical suppliers this comprehensively in Indonesia.

FRANKY OESMAN WIDJAJA

Chairman and Chief Executive Officer

Dear Colleagues and Stakeholders,

I am happy to report that 2022 was another fruitful year for Golden Agri-Resources (GAR). The company delivered a sterling performance in 2022, which saw record financial earnings.

Despite experiencing the most volatile market for palm oil in recent history, our global operations and fully integrated business model demonstrated strength and resilience. The outstanding collaboration and focused execution by our people on the ground made a positive difference.

Continuously Improving Our Sustainability Performance

By the end of 2022, we had achieved 98 percent traceability to plantation (TTP)*, one of our key sustainability goals. This is the culmination of years of intensive effort, beginning in 2015 when we launched our supply chain traceability project. As a result, we are likely one of the few agri-businesses to have mapped their palm critical suppliers this comprehensively in Indonesia.

Investing in mapping, knowing our supply chain, and using that data to monitor compliance with sustainability commitments is paying off. Our traceability and related efforts enable us to mitigate risks in our supply chain while offering our customers a clearer overview of their supply chain. We are providing more granular information on No Deforestation, No Peat and No Exploitation (NDPE) implementation in our supply chain to our customers.

*The sustainability information has been externally assured for FY2022

CHAIRMAN'S STATEMENT

CONTENT ESG PERFORMANCE UPDATE SUPPLY CHAIN COMMUNITY PEOPLE ENVIRONMENT CLIMATE CHANGE

GOLDEN AGRI-RESOURCES LTD	5
SUSTAINABILITY REPORT 2022

We report this annually through the NDPE Implementation Reporting Framework (NDPE IRF) and provide more detailed and tailored reports to customers upon request.

This will help us meet our commitments in the Agriculture Sector Roadmap to 1.5°C, which we and 13 other companies signed at COP27. The roadmap aims to accelerate existing action by the agri-commodity sector on deforestation to align with global climate goals in a way that contributes to food security, economic development and farmer livelihoods. As agreed in the roadmap, all palm oil volumes are expected to be in the "Delivering" category of the NDPE IRF by 2025. I am proud that GAR is an active participant and signatory to this important initiative.

Related to this, we are actively stepping up our climate action. We are implementing the Taskforce on Climate-related Financial Disclosure (TCFD) recommendations. Aside from reporting Scope 1 and Scope 2 for the whole group, we are also reporting on our Scope 3 emissions for the first time. We are progressing in our work to set targets for emissions reduction. All Board members also attended SGX-mandated ESG training sessions which included TCFD requirements and implementation.

As a responsible agri-business, optimal land usage is crucial, reducing the burden on the earth while feeding the needs of a

growing global population. Therefore, and in alignment with our No Deforestation commitment, our strategic priority is expansion through intensification. Our upstream operations' primary objective is to grow yields sustainably at manageable costs by adopting technological and agri- science innovation, especially as we pursue replanting of our older estates. We also aim to optimise the value of our plantation's by-products as a biomass alternative.

In addition, we continue expanding our capacity downstream to serve customer preference for healthier and sustainably sourced products.

We are building strategic partnerships with more local communities. We have launched 76 Community Economic Empowerment projects throughout our operations in Indonesia. These projects aim to boost incomes and improve the livelihoods and resilience of local communities. They range from organic vegetable and livestock farming to growing valuable crops like coffee, moringa, medicinal plants and pepper. We are scaling up these projects by helping the communities establish Micro, Small and Medium Enterprises (MSMEs). To date, 37 MSMEs have been set up with GAR providing training in business planning and digital and financial literacy. This will upskill local communities and help them earn better income from selling value- added products derived from the Community Economic Empowerment projects.