Reduce GHG Emission – Our Work to Combat Climate Change
Our work on climate change is consistent with our Group Sustainability Policy to focus on three key areas: forests, climate and communities. As a company engaged in the agricultural industry, climate change is an existential threat for our industry and its is absolutely essential that the company prepare clear adaptation and mitigation measures. DSN Group has a deliberated and structured path towards their Net Zero aspirations with the aim to reduce emissions, adapt to climate change risks, and align itself to the efforts of the Government of Indonesia towards meeting its Nationally Determined Contribution (NDC) and the transition to a low carbon and climate resilient future.
DSNG’s Sustainability Policy is the main policy roadmap which integrates climate-related issues into business objectives and strategy. The policy applies to all our operations, suppliers and investments. The Group Sustainability Department of DSNG, through its Sustainability Governance Structure oversees, manages, and regulates environmental sustainability as well as climate risk issues together with the Business Units of the group. In addition, DSNG has implemented the Environmental & Social Management System (IFC-PS) to continuously identify our Climate Risks and Mitigation measures for the group. The individual business units management implement the necessary measures and monitor the climate risks at the operational level.
Under our Environmental and Social Management System (IFC-PS), we have identified key climate risks as well as mitigation measures to address them in our operations. We developed our initial Climate Risks Assessment (CRA) with Asia Biogas and ERM. Please see here our key outcomes of the Climate Risk Assessment study: DSNG’s Climate Approach, Methods, Impacts, Risks & Opportunities.
DSNG is committed under our Group Sustainability Policy (effective 8th July 2021) throughout our business units in the group, to the following :
1. Measuring our Carbon Footprint,
Since 2021, we have begun work on Greenhouse Gas (GHG) Emission Scoping with a notable company that are specialists in the field of emission reduction projects for businesses and organizations around the world. This work is essential to bring a detailed understanding of DSN Group’s current performance on GHG emissions and take stock of the future emission we will face. To provide an objective base from which to launch science-based approaches, that can mitigate or eliminate these emissions, which will eventually lead us to Net Zero.
2. Reducing our Carbon footprint
Earlier in 2021 we committed to actively reducing our ghg emissions by 29% in 2030, consistent with Indonesia’s commitment to reduce emissions against 2010 baseline. We also commited in our Palm Oil operations, where our largest carbon hotspot are, to reduce our greenhouse gas (GHG) emissions intensity by 16.4% by 2030 from our 2019 baseline.
With much diligence we worked on our Climate Action Plan over much of 2023, and we are pleased to revise our targets to reduce total (Scope 1, 2 & 3) GHG emissions 44% by 2030 from a 2019 baseline. This target takes into consideration our growth plans for the company and the existing technology available. We have not imputed any offsets nor natural biogenic sequestration in our targets, as we want to focus more on reducing our total emissions as a priority. We are also eagerly awaiting the GHG Protocol to publish its final guidance on Land Sector and Removals Guidance.
Therefore, in our Palm Oil operations, we are now committed to reduce our greenhouse gas (GHG) emissions intensity 45% by 2030 from our 2019 baseline.
For more details on our Climate Action Plan and Emission Reduction Targets by Business Unit, please download here.
The said GHG emissions intensity has combined scope 1, 2, and 3 emissions for both FLAG and Non-FLAG emissions. The calculation has excluded the offset from our biogenic removal.
In order to achieve the said commitment, we are consistently applying the NDPE policy throughout our supply chain, pursuing aggresively our energy independence from fossil fuels and innovating numerous ways to increase our efficiency while minimizing our carbon footprint. We realize that with emerging technologies and innovation we would be able to further reduce our emissions in the future and as such, we will review our targets GHG emissions reduction commitment from time to time.
For more details please see here: Key outcomes of the GHG Inventory Accounting study: DSNG’s Emission Disclosure and Plans for Climate Mitigation.
The GHG accounting and reporting procedure is based on the ‘The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard – Revised Edition’ (GHG Protocol) and the complementary ‘Corporate Value Chain (Scope 3) Accounting and Reporting Standard’. These are the most widely used international accounting tools for government and business leaders to understand, quantify and manage GHG emissions. The standards were developed in partnership between the World Resources Institute and the World Business Council for Sustainable Development. The accounting methodology also follows guidelines from the Science based Targets Initiative on separation of FLAG and non-FLAG emissions, and is aligned with the draft GHG Protocol Land Sector and Removal Guidance (LSRG).
The GHG accounting approach was based on the principles of the GHG Protocol:
- Relevance: an appropriate inventory boundary that reflects the GHG emissions of the company and serves the decision-making needs of users;
- Completeness: accounting includes all emission sources within the chosen inventory boundary. Any specific exclusion is disclosed and specified;
- Consistency: meaningful comparison of information over time and transparently documented changes to the data;
- Transparency: data inventory sufficiency and clarity, where relevant issues are addressed coherently; and
- Accuracy: minimise uncertainty and avoided systematic over- or under quantification of GHG emissions
For scope 3 emissions we have also calculated based on SBTI, information can be seen here: Scope 3 Indirect GHG Emissions
Accounting and Reporting Standard’. Emission factor for PG&S refer to Comprehensive Environmental Data Archive (CEDA), 2022; Ecoinvent 3.8; BEIS, 2023; World Food Land Database (WFLDB) 3.5. Total emissions from the purchase of raw materials (PG&S) from Fresh Fruit Bunches (FFB) are 974,861 tCO2e. Data assumptions and extrapolations:
- FFB was provided as a sum in kg. Emissions were calculated using palm oil fruit emission factors from Indonesia, published by the WFLDB in 2020.
The WFLDB is an international life cycle inventory database led by Quantis. It was developed in collaboration with international partners, including industry, sector experts, and research institutions. The WFLDB provides high-quality emissions and environmental footprint data to help stakeholders across the agri-food value chain understand the environmental impact of their products. More details can be found on the WFLDB website.
In mid 2023, we again conducted another GHG Inventory assessment to measure our carbon foot print and below is a brief summary of our GHG footprint for our Palm Oil Business unit in 2019 vs 2022:
The said GHG emissions has combined scope 1, 2, and 3 emissions for both FLAG and Non-FLAG emissions for our entire palm oil business operations. The calculation has excluded the offset from our biogenic removal. The methodology used is the GHG Protocol and consistent with the guidelines of SBTi. Additionally, because of the latest changes to the SBTi and GHG Protocol guidelines, we have made a revision and update of the previously calculated 2019 baseline, in order to align with best practices and universally accepted methodology.
Our Land Use Change (LUC) emissions for 2022, are now reflected under scope 1 emissions in line with SBTi and GHG Protocol Guidelines.
In the table above, our GHG Emissions Intensity has reduced from 2.14 tons CO2 per ton of CPO in 2019 to 1.65 CO2 per ton of CPO in 2022, when we consider only the GHG emissions of Scope 1 and 2 combined for both FLAG and Non-FLAG emissions for our entire palm oil business operations, where also the calculation has excluded the offset from our biogenic removal.
Please see here for details of our work to actively reduce emissions :
DSNG to develop solar power plant in Wood Product Segment
DSNG Commissioned First Bio-CNG Plant
Please also download our latest Sustainability Report to see our details and data on Climate Change Mitigation and GHG Emissions and Carbon Footprint