PT Perusahaan Perkebunan London Sumatra Indonesia Tbk : ESG Report

2022 S U S T A I N A B I L I T YR E P O R T

PT PP LONDON SUMATRA INDONESIATbk

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INDEPENDENT ASSURANCE STATEMENTVERIFIKASI TERTULIS DARI PIHAK INDEPENDEN

Independent Assurance Statement

Report No. 0423/BD/0030/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 2022 ('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 2022 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 was 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 was 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 also not designed to detect all weaknesses in the internal controls over the preparation and presentation of the Report, as the engagement was not 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, April 21, 2023

James Kallman

Chief Executive Officer

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

With more than 65,000 professionals operating in 120 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

PT. Moores Rowland Indonesia

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

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

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

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

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CONTENTS

DAFTAR ISI

President Director Statement	6
Sambutan Presiden Direktur
2022 At A Glance	8
Sekilas 2022
Our Approach To Sustainability	10
Pendekatan Kami Terhadap
Keberlanjutan
Business Overview	21
Tinjauan Usaha
Protecting Our Environment	25
Perlindungan Lingkungan
Responsible Sourcing	43
Pasokan Yang Bertanggungjawab
Our People	51
Sumber Daya Manusia
Community Relations	60
Hubungan Masyarakat
Appendix	66
Apendiks

ABOUT LONSUM, OUR VISION, MISSION, AND VALUES(GRI 2-1)

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 KAMI (GRI 2-1)

PT PP London Sumatra Indonesia Tbk (LONSUM) merupakan perusahaan yang terdaftar dalam Bursa Efek Indonesia (BEI) dan berkantor pusat di Jakarta. LONSUM beserta anak perusahaannya bergerak di bidang fasilitas perkebunan dan pengolahan minyak sawit, karet, kakao, dan teh. Kami beroperasi dalam penelitian dan pengembangan, pemuliaan benih bibit, pembudidayaan dan pengolahan kelapa sawit.

Visi kami adalah menjadi yang terdepan dalam 3C (Tanaman, Biaya, Kondisi) dan agribisnis berkelanjutan yang digerakkan oleh penelitian.

Misi kami untuk memberi nilai tambah bagi pemangku kepentingan di bidang agribisnis.

Nilai-nilai yang mendorong bagaimana kami bekerja kami: dengan disiplin sebagai dasar cara hidup kami, kami menjalankan bisnis kami dengan integritas, kami memperlakukan pemangku kepentingan kami dengan hormat, dan bersama-sama kami bersatu untuk mencapai keunggulan dan inovasi berkelanjutan.

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OUR POLICY

Our Sustainable Agriculture Policy (Policy) is approved at Board level and guides all our sustainability programmes. It is available on our website and 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 KAMI

Kebijakan Pertanian Berkelanjutan (Kebijakan) kami disetujui oleh setingkat direksi dan menjadi panduan bagi seluruh program keberlanjutan kami. Kebijakan ini tersedia di website berlaku bagi seluruh kegiatan usaha kami, termasuk para petani plasma dan pemasok pihak ke tiga darimana kami membeli bahan baku untuk pabrik kami. Komitmen utama dari Kebijakan untuk memproduksi produk yang berkelanjutan adalah sebagai berikut:

1. Larangan deforestasi, perlindungan 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 lahan
4. Penghormatan atas Hak Asasi Manusia, termasuk kebebasan berserikat dan tanpa diskriminasi
5. Pelaksanaan Persetujuan atas Dasar Informasi di Awal tanpa Paksaan
   (PADIATAPA)I

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OUR SUSTAINABILITY REPORT(GRI 2-3, 2-6)

LONSUM is proud to present its 6th annual Sustainability Report for the calendar year 2022. This report has been prepared in accordance with the Global Reporting Initiative (GRI) 2021 Standards and also complies with requirements of the Peraturan Otoritas Jasa Keuangan Nomor 51/POJK.03/2017.

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.

This report communicates our performance and progress against our Policy commitments and targets on material topics for the calendar year 2022. This report should be read alongside our Annual Report and website. Relevant links are provided in the report. LONSUM has commissioned third-party assurance on this report.

We welcome your feedback or questions at [e-mail]. The GRI Content Index and previous reports are available online.

LAPORAN KEBERLANJUTAN KAMI (GRI 2-3, 2-6)

LONSUM dengan bangga menyampaikan laporan keberlangsungan tahunan kami yang ke-6 untuk tahun 2022. Laporan ini terlah dipersiapkan sesuai dengan standar Global Reporting Index (GRI) 2021 sekaligus mematuhi persyaratan dari Peraturan Otoritas Jasa Keuangan Nomor 51/ POJK.03/2017.

Kami telah memilih standar dan prinsip dari pelaporan GRI untuk memastikan laporan kami memiliki inklusivitas, ketepatan, kejelasan, keandalan, dan keterbandingan dari informasi yang disajikan pada laporan ini.

Laporan ini mengkomunikasikan performa dan progress kami terhadap komitmen kebijakan kami dan berfokus pada topik material untuk tahun 2022. Laporan ini harus dibaca dengan laporan tahunan dan website kami. Tautan yang relevan disediakan dalam laporan. LONSUM sudah mendapatkan jaminan pihak ketiga atas laporan ini.

Kami menerima feedback atau pertanyaan di [e-mail]. Konten indeks GRI dan laporan yang terdahulu sudah tersedia secara daring.

Reporting Scope

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% of our total planted area. There is no significant changes to the size, structure or ownership of our company compared to the previous report.

Our financial, employee, community and health & safety data constitute the whole Group (all operations in the scope of this report). Our responsible sourcing, and product data include only our downstream palm oil operations.

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

Ruang Lingkup Pelaporan

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

Datafinansial,pekerja,masyarakatdankesehatan&keselamatankamidatamerupakankeseluruhan grup (semua operasi dalam ruang lingkup laporan ini). Data sumber yang bertanggungjawab, dan data produk hanya mencakup operasi fasilitas penyulingan hilir kami.

Data lingkungan kami mencakup lokasi-lokasi berikut dalam operasi kelapa sawit dan karet kami:

30	9	3	6
out of 38 sites	out of 12 sites	out of 3 sites	out of 6 sites
ISPO-certified/audited plantations	ISPO-certified/audited plantations	Rubber factories	Rubber plantations
30 dari 38 lokasi	9 dari 12 lokasi	3 dari 3 lokasi	6 dari 6 lokasi
Perkebunan bersertifikat /	Pabrik bersertifikat /	Pabrik karet	Perkebunan karet
diaudit ISPO	diaudit ISPO atau PROPER