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Page 1
Sustainability
Report 2023
a hd y
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Page 2
Design
The design of DSNG Sustainability Report is
inspired by a modern interpretation of traditional
Indonesian batik motifs. We took some of the most
Philosophy
iconic forms of batik motifs found in Java and
Kalimantan - where many of our business
operations are located - and simplified them,
stylized them, and macle them into repeatable
patterns. We then used this unique motif as the
Sd » main element to complete
visualization
the text and data
Here are some examples of graphic elements that we
have included in the report, which we consider to
represent the 3 main pillars of DSNG's sustainability
focus namely forest, climate and community, as well
as DSNG's main business units of the palm oil and
wood products
Mega Mendung Mbaka
{Symbolizes the (Symbolizes the
climate pillar) forest pillar)
Parang Burung Enagang
(Symbolizes the {inspired by batik pattern
community pillar} of Hornbill bird in
Kalimantan)
awa
a. | isen
(Symbolizes our wood
products business unit
(singular)
Kawung
(Symbolizes our palm
business unit)
oil
PT Dharma Satya Nusantars Tbk | Sustainability Report 2023
Page 3
+
Table of
Contents
Scale of our Sustainability
About the Report
Ambition & Strategy
Sustainability Vision Overview
Sustoinability Strategy Report Contact
30 Material Topics
32 Boundaries of Material Topic impacts
Our Supply Chain
4 An Overview of our Supply Chain We are DSNG
About DSNG
2023 Highlights Vission and Mission of DSNG
Embedding a Culture of Sustalnabitity
inte Company Values
7 Achlovements
41 Operational Areas
10 Contribution to Sustainable Development Targets
42 Activities and Business Relationships
4 Sustainability Perfarrmance Highlights
42 Supply Chain
46 Our Employees
President Director’s 48 Bussiness Scale
Foreword 48 External Initiatives and Association Memberships
Message to Stakeholders
DSNG’S Contribution
Sustainability Advisory to Building Economic
Board Chairman’s Letter Prosperity
Direct Economic Value Generated and Distributed
Sk 4
Zz Open Letter to OSNG
Our Innovations to Support Sustainable Business
Management of indirect Economic impacts
PT Charms Satya Nusantaa Tok | Sustainability Report 2023 ul
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Forest Pillar Our Commitment to Anti-Coruption and Anti-Bribery
Sustainability-linked Loan Financing
Our Policiés for Forest Protection and Management Whistleblowing System
Biodiversity and Conservation
Paim Rejuvenation and Integrated Pest Control Disclosure in
Environmental Compliance and Awards Accordance with Financial
Expenses from Environmental Activities Services Authority
Fire Prevention and Management
136 Disclosure List for Regulation 51/ POIK.03/2017
Climate Pillar
GRI Content Index
Climate Change Mitigation and Adaptation
Through our Operations 138 List of topics
GHG Emissions Inventory by Scope
Emissions Reduction Plan Scenarios And
Adaptation to Climate Change impacts
GHC Emissions Footprint
Feedback on this Report
85 GHG Emissions Reduction
142 Form to Provide Feedback
Community Pillar
Independent
Assurance Statement
Respecting Human Rights
Support for Communities laa Independent Assurance Statement
Our Challenge in Protecting the
Rights of Communities
Achievements In our Social and
Environmental Responsibility Programs (CSR)
Management of Diversity and Development
of Human Rescurces Competences
Gender Pay Ratio based on Employment
Status (between Wornen and Men}
Ensuring Safe, Secure, and Healthy Work Practices
improving Product Quality and Safety
Sustainability
Governance
Sustainability Governance
Critical Issues Managernent and Reporting Mechanism
Risk Management for implementing Sustainability
industrial Relations
Stakeholder Engagement
Responsible Business Commitment
Commitment to Human Rights
PT Oharma Satya Nusantara Tok | Sustainability Report 2023
Page 5
¢
Acronyms and
Abbreviations
Environmental impact assessment Japan Agriculture Standard
Non- forestry area Hazardous and toxic maternal waste
Hozardous and toxic material Legume Cover Crop
Bio- Compressed Natural Gas Village Institution for forest management
Natural Conservation Agency.
Landscape Protection Plan
Social health insurance administration body
Land Use Change Analysis
Climate Action Planuara
Medica! Creck-Up
Crude Palm Oil
Ministry of Environment and Forestry
Cotporste Social Resoonsibility
No Deforestation, No Peat, No Exploitation Policy
Certitied Sustainable Pain Oil
New Planting Procedure
Emoty Fruit Bunch
Non-Governmental Organization
Environmental Social Governance
Off Concession Conservation Area
Environmental and Social Management Systern
EU Deforestation Regulation Occupational Heaith and Safety
Fresh Fruit Bunch Program for the Enclarsernent of Forest Certification
Forest, Land, and Agriculture {terminology for Palm Kemel Oi!
emission from land use}
Pairn OU Mill
Free Prior Informed Conserit
Pairn Oj Mill Effivent
Greenhouse Cases
Personal Protective Equipment
Giga Joule
Corporate Performance Rating Program
Hectare
Remediation and Compensation Procedure
Human rights
Roundtable on Sustainabie Pair Oil
High Carbon Stock
Sustainability Advisory Board
High Conservation Value
Occupational Safety and Mealth Management
Cultivation rights
System
Health Safety Environmental
Standard Operation Procedure
indonesian Rupiah
Sustainability Policy Transparency Toolkit
International Finance Corporation Pedornance
Standards on Environmental and Social Sustainable and Responsibie Invectment-KEMAT
Sustainability Timber legality and verification system
Imernational Sustainability and Carbon Certification
Listed
Indonesian Sustainable Palm Oil
Ton Carboridioxide Equivalent
International Organization for Standardization
Emergency preparedness and response team
Intemational Union for Conservation of Nature
United Nations
CR Critically Endangered
United States Dollar
EN Endangered
vu Vulnerable
NT Near Threatened
Lc Least Concern
PT Oharma Satya Nusantara Tbk | Sustainability Report 2023
Page 6
— $
List of Subsidiaries
List of Subsidiaries, Mill/Plant, and
Bulking/Transit Station in This Report
PALM OIL BUSINESS UNIT
COMPANY NAME 5 on idsenheerio td eo: BULKING/ BULKING LOCATION
MILL NAME LOCATION TRANSIT STATION
PT Swakarsa Sinarsentosa pKey
(PT SWa)}
PKS2
PKS3
a, abe, cab yee Kuta: Timur Regency, Bulking Serau Regency,
arta ¢ } n East Kalimantan Province Labanan East Kalimantan Province
PKSG
PKS 7
PT Dharma intisawit
PKS Il
Nugraha (PT DIN}
PKSS
PT Pilar Wanapersada Lamandau Regency, Bulking West Kotawaringin Regericy,
(PT PWP) eon Central Kalimantan Province Bumiharjo Central Kalimantan Province
Sit
Peniti village, Sekadau Hilir
PT Agro Andalan (PT AAN) Sekadau Regency,
PKS8 ; ; Bulking Peniti District, Sekadau district, West
West Kalimantan Province , :
Kalirnantan Province
PT Bima Palma Nugraha Kutai Timur Regency, Kutai Timur Regency,
PKSS Bulking Maloy
(PT BPN) East Kalimantan Province East Kalimantan Province
Stssiun Transit Kutai Timur Regency,
ny; a Batu Lepag East Kalimantan Province
PT Bima Agri Sawit‘ (PT BAS) PKS10 utai
: Timur Regency,
gency
East Kalimantan Province ¥ " R ‘
Bulking Maloy Be UATNUE Saree
East Kalimantan Province
PT Oharma Agrotama Kutai Timur Regency,
Nusantara (PT DAN) East Kalimantan Province
PT Dewata Sawit Nusantara Kutai Timur Regency,
(PT OWT) East Kalimantan Province
PT Oharma Satya NuSantars Tbk | Sustainability Report 2023
Page 7
PALM OIL PLANTATION & MILL BULKING/
COMPANY NAME BULKING LOCATION
MILL NAME LOCATION TRANSIT STATION
PT Karya Prima Acro Kutai Timur Regency.
Sejahtera (PT KPAS) East Kalimantan Province
PT Dharma Persada Sintang Regency,
Sejahtera (PT OPS) West Kalimantan Province
PT Prirna Sawit Andalan Sintang Regency,
(PT PSA) 7 West Kalimantan Province ”
PT Kencana Alam Permal Sintang Regency,
(PT KAP) West Kalimantan Province =
PT Mitra Nusa Sarana Sintang Regency,
(PT MNS) = West Kalimantan Province
WOOD PRODUCT BUSINESS UNIT
COMPANY NAME PLANT LOCATION
PT, Dharma Satya Nusantara - Temanagung (WP Panel) Temangagung Regency, Central Java Province
PT. Tanjung Kréasi Parquet Industri (WP Flooring) Femangaung Regency, Central Java Province
ZBeagss
BS 88 S&
i oe
Bae Ss
PT Oharma Satya Nusantars Tbk | Sustainability Report 2023 vi
Page 8
O1 Scale of our
Sustainability
Ambition &
Strategy
[POIKS) CI]
Page 9
Sustainability Vision
g & To be the responsible choice for the people, planet, and prosperity.
Sustainability Strategy —(rouxs1A1
The Company's sustainability strategy is implemented Adherence to national and international certification
in alignment with its sustainability vision and the standards and compliance with applicable laws and
Group's Sustainability Policy, focusing primarily on requlations, is an integral part of our Sustainability
managing the impacts of the Company's operational Strategy implementation.
activities in three priority areas and adhering to three
main principles and policies;
Three Priority Areas:
Sf
Forests, Climate and Communities
The Company's Sustainability Policy was
Three Main Principles and Policies officially ratified according to Decision No.
No Deforestation, No Peat, No Exploitation (NDPE), 001/DSN/CSO/V11/2021, dated 8 July 2021,
Conservation and Circularity and is accessible through
The Company's sustainability policy is applied
comprehensively to subsidiary entities and their THIS LINK
supply chains, and this policy aligned with the UN's
2030 Agenda and the Paris Climate Agreement.
& GROUP'S SUSTAINABILITY POLICY MATRIX
COMMUNITIES GROUP SUSTAINABILITY
FOREST CLIMATE
STRATEGY
No Deforestation
O O No Exploitation
= ESMS
NDPE
Forest Conservation Welfare Preservation
Biodiversity Prosperity Circularity
PT Oharma Satya Nusantars Tbk | Sustainability Report 2023
Page 10
¢€
O2 Our Supply
— Chain
Page 11
LEGEND
NURSERY
é
4 ENVIRONMENTAL SERVICES internal Production Chain
Environmental
DSNG Supply 50...
REPLANTING OIL PALM PLANTATIONS BY 2023 Benefits Chain
Social & Economic
Chain 500... etddedd
Benefits Chain
R
CONSERVATION FORESTS at Wanau at Wahau
Renewable eneray
8,728.32...
* ha °
concessions
qb Verdant
PALM OIL
i, él
NDPE AND LANDSCAPE
PROTECTION
126
Thousand lor e @
& &GREEN
ton/hour
FFB
Storage
: : a Q
12 MILLS CPO
PLASMA PLANTATIONS
& ° Q
a a a
NUCLEUS PLANTATIONS
JOINT VENTURE
WITH
140 shelle/
tons ¥eor
for
PLANTATION PROFILE 15 year
(000 Ha} Nucleus Plasma Total
= —
Planted B4g Wie n27
fomature
Plantation
33 47 63 73%
@ Gunits Sio-CNG fueled
a —
@ POTENTIAL >600
ate” A. y Xx
METHANE CAPTURE
SMALLHOLDER PLANTATIONS
all e
2 & C3)
AND BIO-CNG PLANTS
EMISSION REDUCTION -_
tCOz¢ /year 6 am» PALM OIL MILL EFFLUENT/POME
VILLAGES AROUND
@ e 1,2 mw 1
OPERATIONAL AREA eo
CSR Funding > rplO8 BILLION Ad @ (-) 280 mVnhour
(ASSET 2023)
(-)
Rp25.5 Billion ~ @ EMPLOYEES HOUSING
COOPERATIVES/CREDIT
Per 2023 BIO-CNG POWER [J
UNION DSNG PARTNERS
PLANT
BIO-CNG
PT Dharma Satya Nusantera Tok | Sustainability Report 2023
Page 12
WP FLOOR WP PANEL
PRODUCTION CAPACITY :
fi PRODUCTION CAPACITY : @ Expansion on progress -
he 9,000 > 12,000 m#/manth
@ 150,000 min
b AG haan Sees @ 5 Units
of electric forklifts that STATE OWNED
can save 66 thousand [iters of PLANTATION
IMPORTED OAK diese! fuel or equivalent to 1
SUPPLIER tCO,e emissions per year
20%-30%
Supply
INDEPENDENT
WooD
FARMERS EXTERNAL WOOD
PROCESSING
PLANT DEPOT
DSNG WOOD PLANT
6,000 nf waste
wood is recycled
inte wood pellet
® 2,775 farmers receive
767,500 seedlings
tay distribution
@ 250 farrners (63. of
BLOCK BOARD them women} receive
training
> ‘ INDEPENDENT
ENGINEERED = AGROFORESTRY
FLOORING FARMERS
70%-80%
aS Supply
— ;
p ™ AO SONS ww
USD
ADB 500k
Technical assistance
from Asian Development
Bank, for more info
den CLICK HERE
PT Dharma Satya Nusantare Tok | Sustainability Report 2023 &
Page 13
03 2023 — Highlights
Page 14
AWARDS
&
O1 RSPO EXCELLENCE AWARD 2023
@ Innovation Category
A RTE? Next27
@ An Effective Alternative Energy Transition for
"
Community Fresh Fruit Bunches (FFB) Trucks REPO EXC Ea AWARDS 202:
Organized by
RSPO
© @ tToget more information CLICK HERE
O2 ESG DISCLOSURE TRANSPARENCY
AWARDS 2023
@ Leadership A Predicate
Organized by:
+ Investorlrustlp
+ Bumi Global Karbon Foundation
2 @ To get more information CLICK HERE
Q3 CSR AWARD, SINTANG REGENCY,
WEST KALIMANTAN
@ Group with the Largest CSR Category
Other CSR Award categories
erat serrate
> infrastructure: PT PSA, PT KAP, PT MNS PLUALAS PIONTIANGAAR
mee |b Otte TR POE
CLK JAWAD BOLL PINUS AAD
> Education: PT PSA, PT KAP, PT MNS
COMM
ORA TW SOCLAL ALEMONSLLILITY (CRT) A WAMED
CAQU PATE Hie TAWO TAH coge
+ Health: PT KAP, PT MNS Tike
teat 9 ryan
OGARMA KATIA NUBANTARA GROUP
> Religious; PT KAP
sere
(LE? ORNOAN CBE TENEEBAL
> Social Culture: PT KAP, PT MNS
ee 8 Rete Ram
RE Seeger
Aeeee Memes Peemeninges
Corpemen nts! Meayrmenito i aE! Tere eee
> Clean Wate: PT DPS
Oe oat eer orl
> inflation: PT PSA, PT MNS Ure!
wea pewe
> Sports: PT PSA, PT DPS, PT MNS
+ Environment PT PSA
> Village Electricity: PT KAP
> Populist Economics: PT MNS
DOharme Satya Nusantars Thk Sustainability Ropart 70673
Page 15
R
O4 AWARD FOR MANAGEMENT AND
PROTECTION OF AREAS WITH
HIGH CONSERVATION VALUE
(ANKT) IN PLANTATION AREAS
Ae Re
OL
@ PTDWT er
eee
20 One Chet Heres
Organized by
Government of East Kalimantan Province
OS ZERO ACCIDENT AWARD
* PTKPS
tere rae are
* PTSWA
Oraanized by
Ministry of Manpower
R
OG AWARD FORTHE COVID-19
PREVENTION AND MANAGEMENT
PROGRAM IN THE WORKPLACE Riagam Renphapaa
ee mr Lr Se Me es ne WE eee Hee
*® PTSWA, Platinum Category
PT SWAKARSA SINARSENTOSA
Kalimantan Timur
Whey Poreeshaes Tewertns Peaghersase Progra Proresutas das Mreutersbecus
BVI Trampat Neve denon haiegert PLATING ME
tere eae ome Mee eyeteteT Semats Pees
Oraanized by
Ministry of Manpower
PT Dharne Satya Nosantarm Tbk | Sustainability Report 2023
Page 16
ESG RATINGS
SRI-KEHATI major period (May 2023) S&P GLOBAL ESC SCORE
and minor period (November 2023)
Score
DSNC was listed in 3 sustainability stock index based on its ESO
performance from indonesia Stock Exchange, namely
1 2 3
ESG SECTOR
SRI-KEHATI ESG QUALITY LEADERS IDX
45 IDX KEHATI KEHATI
CLICK HERE
SPOTT Global Rankings & Scores SUSTAINALYTICS
ESC Risk Rating
55.4
*Bosed on 202) data
2020 2021 2022
More
@ More information CLICK HERE CLICK HERE
Page 17
CERTIFICATION
PALM OIL BUSINESS UNIT WOOD PRODUCT BUSINESS UNIT
8
° California Air Resource Board (CARB), U.S. EPA TSCA
91.67% 67 %o TITLE VI. Jasan Agriculture Standard (JAS) Certifications
ISPO-Gertified Palm Gil RSPO: Certified Palm Oil Mill for Wood Products - Panel
Mills (POM 1-31) (PKS 1-4, PKS 6-7, PKS 11)
34 26
ISPO-Certified Estates R5PO0-Certified Estates
Urvit Unit
BM Treda, Deck Soft Loc White Gak Active, Mutu, Real
94,122.03 ha 59,272.38 ha Wood, PEFC Chain of Custody, FSC, ISO 9001.201S
Certifications for Wood Products - Flooring
1SPO-Certified RSPO-Certified
Contribution to Sustainable Development Targets
a= i=
\ © FOREST <> ¥,
Target Achievement in 2023
Protection of areas with Canservatian ares patrols within the OSNG concession Muara Wahau site in East Kutal Regency
high conservation value were conducted 168 times with a total range af 765 ern covering an area of Tl conservation blocks
within the concession area and? riparian areas, resulting in the finding of a total of 8 riské/disturbances that have been
addressed further
Biodiversity conservation Integrated orangutan conservation at PT BPN and PT BAS,
® Construction of two artificial corndors a5 habitat connectors at PT APN in March
and December 2023
® Farmation of a human-vwildlife canflict task force at PT BAS in September 2023
» Off Concession Baseline biocliversity data study in the Karangan Dalam Village Forest area found:
Consetvation Area (OCCA)
® the presence of fauns and flora listed as protected in goad candition with high diversity
through the protection ot
and evenness
the Karangan Dalam
Village Forest Spanning ® the presence of hardwood tree speciesin yanous stages of growth indicating good forest
3148 ha and community health for the reaeneration of biodiversity
ivelinood activities
PT Dharmas Satya Nusantara Tbk | Sustainability Repart 20235
Page 18
cess = RES (Continued)
rg 14743 na in Bangun Vilage, Sepauk Dstnct,
Conservation of Bukit Tempurung forest
Protection of areas wih
with the Rimba Tuja) Semirah Forest Manageme
2 nt Inutitution
value Sintang Regency, mc aboration
nigh. conservation
oround the operational ered instututions,
Pendulangan covering2 436 ha together
9 with traditional
supply chain Conservation of Bukit
’ and thee DSNG
DS = ty chain
Village Lamandayu Regenty,
communities. and the governmentsof Tamiang Village and Bakonsu
formerly on ares veithin Ue ¢ vitivation nants
Kalimantan Part of the conserved area wad
Conti
of PT PWP that was released due ta land status changes
for NOPE policy cornpliance reached 98%
100% supplier compliance Registration of suppliers and farmer targeted
with DSNG's NDPE policy compliance fo suppliers are
of the roadmap and support for NOPE pokey
ti Dy imolomentation
and supply raceandiity
formers reached 105%
2025
Review, and Verification (MRV) process for NOPE compliance
(rnpleomentation of the Monitering,
by suppliers and farmers reached 109%
in 2023 with the application of Best practices ir
Renewal of OSNG'S palm Replanting in PT SWeA's block in 2022. continued
and provision of seeds
of plantations covering ® the land clearing and conditioning processes as well as preparmtion
LOC (Mucuna) Up To the planting of cain ol) covering SOO na
total of S00 Na in 2025 olanting
‘] ie: a >
x)
Achievernent in 2023
Target
Updating te baseline data f 2. and 3 greenhouse gas emissions using 201?
A AL% recuction in. GHG
Quick agriculture sector issued By the Srience-
by 70456 data. The update follows the new
emissions
Sector and Removals Guidance
Basad Targets Initiative (SBTi) and the draft GHG Protacol Land
[LSRG}
sarking » decrease of 7,908 tons of (CO;
Group emissions it) 2023 were 62,785 tons of 1CO;¢
compared to the 2019 baseline
Setting emission reduction targets basea an SBT) standaras
Developing climate change adaptation anam tigation: plans for the palm oil business UNit and
OSNG's business and
operations can adapt to and dd products business UNE
mitigate the impact of
climate change
Satye Nusantaré Tok Sustainability Report 202
pTroOhalihs
Page 19
h- Bee
y= —je=— re fi ic 1
Target Achievement in 2023
» Energy self-sufficiency © Developing an energy self-sufticiency roadmap for the DSNG palm oil business.unit in the
with in-situ renewable Muara Wahau Area
energy by 2028
© The operation of 2 Bio-CNG plants and Biogas Engines during 2023 generated a total energy
equivalentto 77,444,276 KWh or reduced's total of 5,286,144 L of diesel (for generators and
truck operabons). The Company potentially reduces the total emissions generated, equal to
18,716 tCOxe per year
© Trial of using Bio-CNG as fuel for operational vehicles using & converter in regular trucks. As of
December 2023, DSNG supports the: procurement of 6 new comrmunity-owned trucksto be
converted to us¢ Blo-CNG tuel
© Throughout 2025, the solar power plant at the WP Flooring plant has met the factory's electricity
Needs totaling 11.04 million kWh
*» Reducing or maintaining » Water usage intensity during 2023 of 1.30 m#/ton decreased by 0.09 m/tan FFB processed
water consumption intensity compared to weter usage intensity in 2022
Thor ;
to12 miton of FFB © Planning a water conservation trial at PT BRN, by constructing a Water catchment system
processed by 2025 in hilly areas
ee ads.
. = 3 : ; —
Target Achievement in 2023
* Communities around the ® Involving the community in the procurement of 600 operational vehicles.and Fresh Fruit
operational area also Bunches (FFB) transport trucks
benefit from livelihood ® Establishing: community-based business groups: rice cultivation and rice supply in New Miau
improvement activities
Village, vegetable cultivation in Benia island of Muara Wahau Village, eco: tourism in Lelhut Lake,
and air canditioning services in Muara Wahau Village
© From all these activities, in: 2024 there were a total of 429 entrepreneurs, with beneficiaries
reaching 7,735 people. The income fron: all these businesses reached 4 total of Rp4.6 Billion, an
increase of 394% from the achievernent in 2022
© Enhancernent of best
practices capacity for © 1236 independent farmers received an improvement in good agricultural capacity
independent farmers
© Support for educational © Dharma Utama School (SOU), established under the Dharma Litama Foundation, received the
advancement within and National Adiwiyata Award from the Ministry of Environment and Forestry {MoEF) in 2023
bround the operational ares © Developing 6 Learning Houses as additional learming places for 15 children
* Supporting the construction and educational prograrns of Al-Khairat Islamic Boarding School in
Muara Wahau, éducating 7§ fernale students and 6S male students, and supporting
the welfare
of 12 muslim teachers
© Conducting contextual education for 1S Dayak Punan children residing in Longsep Hamiet,
Muara Wahau Village
© Equal employment ® Organizing en internship programm for 12 students from SMKN Kongbeng at PT Gemilang Utama
opportunity far the Nusantara [PT GUN), asubsidiary of DSNG, which focuses on workshops, heayy machinery, and
cammunity civil construction
PT Dharma Satys Nusantars Tbk | Sustainability Repart 2023
Page 20
‘o RARGRBRasa—
Target Achievement in 2023
Protection and Protection of children and women prevention efforts socialization, a3 wellas FGD and case
fulfillment of women's handling
encenidren’s Aghts Establishing a Children's Forum in June 2023 as an extension strategy
Updating SOPs and working instructions for school shuttle: vehicles to ensure children's safety
Development of Assisting and supporting Dayak Punan residents with civil administration (48 People), and mass
indigenous communities marriage confirmation (16 peaple/B couples}
as Well as protection and
In coflaboration with the Cultural Preservation Agency Region XIV East Kalimantan-North
management of cultural
Kalimantan, organizing training and workshops on cultural heritage management
heritage
Aside of that achievernent in 2023, we also carried out the following activities;
Achievement in 2023
The independent audit results for the achiovernent of the Landscape Protection Plan (LPP) and
the Environmental and Social Action Plan |ESAP}) commitments by DSNG towards green
sustainability loans for the palm oil business unit are deemed satisfactory, fulfilling the
DSNG'S ESG
requirements with several recammendations
PERFORMANCE ALIGNS
WITH THE COMMITMENT DSNG recened 3 sustainability loan facility from the ADB amounting to 15 million USD,
TO SUSTAINABILITY LOANS accompanied by a technical assistance commitment worth $00 thousand USD This loan will be
used to fund the enhancement of sengon and jabon wood-based products, implement more
efficient production processes in water and energy usage, and procure wood raw materials
without deforestation for the wood products business unit
In cotlaboration with Rainforest Alliance, conducted visits to the WP Panelsupply chain and
developed a framework for the Kedu-Banyumas landscape initiative and community agroforestry.
COLLABORATION WITH
STAKEHOLDERS FOR THE technical guidance plan from May to October 2023
IMPLEMENTATION AND The Zoological Saciety of London (Z5L) conducted visits to PT BPN plantation areas, which
ENHANCEMENT OF ESG are within the orangutan habitat. ZSL and DSNG are in the process of negotiating a
PERFORMANCE collaboration in which ZSL will suppert BSNG In optimizing the use: of SMART for reporting
and monitoring biodiversity
x panera ~
PF Phas trie Salvi Nusantal
Page 21
Sustainability LEGEND 2021 2022 2023
Performance Highlights
ECONOMY /Poiks: 8:1) ENVIRONMENT (e02Ks1 8.2)
® REVENUE (RP BILLION) * WASTE * BIODIVERSITY CONSERVATION
8,354
8Nn7
PALM OIL 7597
4 772i
6,728
1,516
1,074
2,139,987
8
WOODWORKING NETPROFIT = © RENEWABLE o POME waste
2,128,900 PROTECTED FOREST (ha)
PALM OIL PRODUCTS (LOSS) ENERGY & {m?)
1,920,424
(129,594)
es
Addition
(Reduction) of B,913
POME ‘Waste
* SUSTAINABLE PALM OIL AND TIMBER PRODUCTS AS ENVIRONMENTALLY FRIENDLY PRODUCTS tev)
(208,476)
FFB, Sholl, and 1,013,803 80,282
PRODUCTION PRODUCTION VOLUME
Fiber Waste 1,165,161 77,208
® VOLUME OF PALM OF WOOD PRODUCTS
OIL BUSINESS UNIT BUSINESS UNIT (THOUSAND
{tors}
1,079,595 79,n0
{THOUSAND TONS) CUBIC METERS) INTENSIFIED LAND (ha)
Addition
Gubtrectiori) of (95,202)
544 107 FFB, Shell, and 151,358
Fiber Waste
Crude Patm Oil (CPO) 639 ee Panel ~~ (85,566)
(torss}
662 ¢ 98
30
1,157
A ‘A
& Palm Kernel Oj] (PKO) 38 Flooring 760 B86
os
4 756
FOREST
97 WOOD PRODUCTS RESTORATION [ha}
e and Palm m K Kernel (PK) Nie
123
Wood chip 3013S
watte (rm) 23,700
14538 AE
iB 7,889
* LOCAL ENGAGEMENT Addition 5,306 13,697
(Subtraction)
of Wood Chip
(6,435) 13,697
FARMERS
@ 4 10,217 Waste im) (9,102) (PEOPLE)
i Local Suppliers 22 Local Workers 10,363
73 13,637
PT Dharma Satya Nusantara Tok. | Sustainability Report 2023
Page 22
LEGEND 2021 2022 2023
ENVIRONMENT (Continued) SOCIAL [Ponxsi 83)
ou
ENERGY 6,651,751 = n
1
USAGE (G3)
(GJ 8,292,083 &
6,204,555 CSR FUND (RP BILLION) m SS
vt
e +
ENERGY USE INTENSITY Ad Py (-)
# WOOD PRODUCTS - FLOORING * GHG EMISSION INTENSITY ? TOTAL EMISSIONS {ton CO; eq)
BUSINESS UNIT (GJ/m*) {Ton CO, eq/ton CPO}
63,992
0,06 0.65 64.874 BENEFICIARIES
01 0.75 62,785 g
0,05 0.5 o
5,243
5,252
? PALM OIL BUSINESS UNIT
(Gi/ton FFB)
WOOD PRODUCTS - PANEL
BUSINESS UNIT (GJ/m") Aa
O47
082 &
2 gf @ 5 2 2
A K
ELECTRICITY GENERATED FROM USE OF RENEWABLE ENERGY FROM
<AA
B
~ °
&
METHANE CAPTURE {kWh) BIO-CNG AND BIOGAS [GJ] ASSISTED SENGON INDEPENDENT
1,778,671 42,403 COOPERATIVES FARMERS SMALLHOLDERS
13,453,401 48,432 (UNIT) (PEOPLE) (PEOPLE)
18,609,833 66,995
PT Dharma Satya Nusantara Tok | Sustainability Report 2023
Page 23
pad:
A =
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O04 President Director’s * °
Foreword &
[POIKS) D1]
b6
We are optimistic
about the
opportunities and
business prospects that
will enable us to make
an even greater
contribution to the
environment and social
life, especially through
our circular approach.
ANDRIANTO OETOMO
President Director
Page 24
Message to Stakeholders
| thank the editorial team again for this opportunity to reflect
g on our company's commitment to sustainability and share the
progress we've made over the past year.
However, allaw me to share with you the significant By capturing methane emissions from our operations,
events that | think have shaped our world in 2023, we are not only mitigating our environmental impact
While we have seen global temperatures shatter more but also harnessing a potent greenhouse gas asa
records this year, we have also witnessed another war valuable resource, Our first Bia-CNG investment in
escalate in the Middle East while the war in Europe 2020 exemplifies our dedication to finding cleaner,
continues. And as we get towards the end of this year, more sustainable energy alternatives.
it seemed that the world has undeniably reached a
We are particularly honoured this year that our efforts
social tipping point in the urgent transition away from
in taking this Bio-CNG technology to another level
fossil fuels, In the aftermath of the COP 28 in Dubai,
has been recognized by RSPO and we have been
Some of us whom | consider fortunate, have been awarded their inaugural award for Innavation at the
spared from the most painful impacts of those forces RT RSPO held in Jakarta in November 2023.
that shaped the world, the death and destructian
that has been laid waste by the wars and also those
that have been brought on by our anthropogenic
climate change impacts, The inconvenient truth is
that, if we continue on‘its path with unabated
emissions, very few will be spared from the acute
effects of climate change.
In this report you will read that since the
This year the EU put in motion several regulations commissioning of our first methane capture
which could significantly affect the trade of and Bio-CNG plant in 2020, we have:
commodities in Europe with the proposed inception
of the EU Due Diligence Regulation on Deforestation
* Invested again in methane capture and Bio-
and the EU Taxonomy. VVhile the intent of these
ENG facilities that is double the capacity of
requlations is goad, we watched with great interest
the first one
how. these two regulations and definitions would be
implemented and we have raised concerns through * Reduced the use of 6.12 million liters
various industry groups that these regulations when of diesel trucks and generators
implemented may have Unintended consequences * This is equivalent to the reduction of
for many small farmers in palm ail or wood, who do 18,198 tCO,e in GHG emission
not have the necessary resources to camply with the
formal requirements.
Against these challenges, we set about our bold
goal last year for our company — a commitment to
phase out fossil fuel use, starting with our palm
operations by 2028. Whether we are indeed
successful in this endeavour lies heavily with
innovation and investing in the right technologies
at the right time. We have set a particular emphasis
on methane capture and Bia-CNG,
PT Dharmas Satya Nusantara Tok | Sustainability Report 2023
Page 25
Recognizing the gravity of the environmental
challenges we face, our company has embraced our
Our journey towards
Climate Action Plan for all of our Business Units to
2030 as the cornerstone of our strategy to mitigate sustainability is not
effects of climate change and the opportunities that complete without fulfilling
come with it. Itis also fitting that this year was the first our responsibility to
time we commenced replanting in our estates. To us transparently report on our
this is where we have that rare second chance to impact on the environment
regenerate and address the issues of the past with
and the communities
what we learned over the years. Using better and
around us.
improved seedlings, ensuring tree islands and
biodiversity corridors are built into our replanted
areas, avoiding biologically and topographically law
yielding areas, providing access to better
mechanisation and much more. These and other
ave
exciting initiatives are embedded in our CAP and |
sincerely hope you will find it both informative and
interesting as you read about it in this report.
We were also pleasantly surprised to receive the ESG
Transparency Disclosure Award from Bumi Global
Karbon and Investortrust for our ESG reporting based
on SR 2022. It is essential to underscore that our
journey toward sustainability is not complete without
having discharged our responsibility to report
NEARLY
transparently our impacts to the environment and the
community around us. Hence the award is something
that is very meaningful for us and we take it as. a form 100%
of appreciation for the team's efforts in producing the Of our target for RSPO certification across
relevant reports. our nucleus palm ofl plantations will be
achieved by 2024.
| want to also commend the team for having
completed the second GHG inventory accounting for
our emissions (Scope 1, 2&3) in 2022 in line with the
target completion date, which is a follow up to our
2019 baseline for our GHG emissions, While we did not
| would also like to make a special mention of the
manage to reduce our Lotal emissions over the last 3
work we have been doing to. provide training on best
years, we are all enthused by the reduction in overall
practices and certifying the independent
GHG emission intensity per unit of production.
smaliholders. Notably, Her Excellency the German
We are also finally on our path to achieve the target Ambassador to Incionesia, Ambassador ina Lepel
clase to 100% RSPO certification of all our nucleus honoured Us by visiting our plantation and millin
plantations in 2024, as we have finally received RSPO's Muara Wahau in July this year, in Conjunction with
approval for our Remediation and Campensation her visit of the callaboration between GIZ and DSNG
Plan. This will be followed by the 100% certification of for independent smallholder training and
our plasma plantation in 2025. certification in Muara Wahau.
bk /| -Suitajgpbittiy Meert 2023
ig eee
Page 26
As we work towards achieving 106% compliance to in July this year, | sincerely appreciated their candid
our NDPE policy by 2025 in our palm business, we views about our gaps and the areas they opined tor Us
sincerely appreciate the collaborations and the to improve on
contributions of civil society organisations in this
Truthfully, while we may not be abie to meet all of
aspect, fram SPKS and Solidaridad in West
those expectations now, rest assured we remain
Kalimantan and GIZ in East Kalimantan and many
steadfast in our commitment to become better and
more that we work with and are mentioned in this
achieve those positive impacts we all want to happen
report
| sincerely believe that our collective efforts today will
in our Wood Pane! Business Unit, we achieved a shape a more sustainable tomorrow
significant milestone by signing up with Asian
Going forward, through the annual environmental
Development Bank to fund the increase of our
and social management system (ESMS) review
capacity for our wood factory and also provide the
mechanism, we will continue to moniter progress on
grant for the technical assistance that will be provided
sustainability performance in:order to achieve the set
to more than 4,000 small farmers in Central Jawa over targets and mitigate various economic,
the next 8 years. We aspire to have a landscape
environmental, and social risks that could potentially
approach for a sustainable Wood supply chain in
affect our Sustainability performance
Central Jawa by 2030 and we hope to work with CSOs,
local government, farmers and various stakeholders in Despite the challenges ahead, we are also optimistic
the landscape. about the opportunities and business prospects that
will enable us to make an even greater contribution to
Every year we report on our efforts by our CSR
the environment and social life, especially through our
department to bulid an inclusive supply chain and to circular approach,
ensure that vulnerable communities dre not left
behind around our operations. Personally | sincerely
admire the important work our CSR and operational
staff do in continuing the legacy of shared prosperity
of DSNG. While we do a lot of projects to improve
livelihoods in the communities around our operations,
one livelihood project to me stands out, the rice
cultivation project in Miau Baru Village, Kongbeng,
Finally | would like to thank the
East Kalimantan. Along with the help of the village-
owned enterprise (BUMDES)'s community
team of this year's
development committee, we collaborated with the sustainability report editorial
local community to produce tocally and sell 281 tons committee for their work in
of rice in 2023, This was an 246.91% scale up from last producing this year's
year, in a year where global rice shortage exacerbated sustainability report.
supplies and increased food prices.
i had the privilege this year to engage with civil ANDRIANTO OETOMO
sociely organisations, academia and various President Diréctor
stakeholders at our Stakeholder Engagement Forum
PT Ohana Satya Nusantarm THK | Sustainabllity Ropert 2025
Page 27
a eyatogs
O86
OS Sustainability
— Advisory Board
Chairman’s Letter
4
DSNG has demonstrated
significant progress in
addressing the
challenges posed by
upcoming regulations.
The path to ensuring
compliance across the
supply chain is
formidable, but it is a
challenge that must be
met to advance
sustainability goals.
DATUK DARREL WEBBER
Chairman Sustainability Advisory Board
# ) Ka
) .
Page 28
Esteemed Stakeholders,
| would characterise 2023 as a year of heightened engagement,
é P| exploration, innovation, and consistent advancement in
sustainability initiatives for PT Dharma Satya Nusantara Group
(DSNG).
DSNG distinguished itself through numerous Now, the immediate challenge would be to work
accolades, most notably receiving the "Best Under a together with the local community to conserve this
Billion" award from Forbes and an Innovation Award vital area.
from the Roundtable on Sustainable Palm Ojl (RSPO)
In this instance, DSNG has not only resolved a
for its pioneering integration of Bio-Compressed
longstanding dispute but could also set 4
Natural Gas (Bio-CNG) fn its operations,
precedent for sustainable and collaborative land
As the Chair of the Sustainability Advisory Board, management, This action to excise the land from
| have had the aistinct honour of closely DSNGs landbank, was endorsed by the RSPO,
observing, evaluating, and providing guidance highlights DSNG's dedication to balancing
on DSNG's commitment to a sustainabie future. operational needs with environmental stewardship
This letter is intended to illuminate the progress and community well-being.
achieved, the obstacles encountered, and the
In the area of sustainable agriculture, DSNG's
future goals of the organisation.
exploration of “regenerative agriculture” marks a
significant development. The company's cautious
CONTINUED PROGRESS AND
approach to replanting, alongside initiatives to create
EMERGING CHALLENGES: AN UPDATE
biodiversity-rich tree islands, demonstrates our
ON SUSTAINABILITY EFFORTS
commitment to soil conservation and enhancing the
This section offers updates on the progress and ecological foundations of their plantations.
challenges of issues highlighted in my previous
The introduction of new sustainability-linked laws,
annual letter.
particularly the European Union Deforestation
Significant strides have been made in Occupational Regulation, poses fresh challenges, It is my opinion
Safety and Heaith (OSH), particularly in proactively that, while these regulations are well-intentioned,
addressing chronic health conditions among our their broad application may not fully address the
workforce through targeted lifestyle and diet complexities of deforestation. The focus on
interventions. This initiative underscores a dedication smalihoider inclusion underscores a significant
not just to compliance, but to genuinely improving challenge, as. compliance demands could potentially
employee health and safety. sideline these vital contributors to the supply chain,
undermining broader deforestation efforts,
Nevertheless, the tragic loss of a life, in 2023,
during operations, is a stark reminder of the Nevertheless, DSNG has demonstrated significant
need to persist with the enhancement of the progress in addressing the challenges posed by
safety culture and practices, upcoming regulations, The path to ensuring
compliance across the supply chain is formidable, but
Resolving overlapping land status in one of DSNGs it is a challenge that must be met to advance
estates marks a significant milestone in DSNG's sustainability goals. The SAB is encouraged by DSNG's
engagement with local communities, DSNG has commitment to overcoming these obstacles and
excised the land from its landbank and as such, itis continuing its pursuit of sustainable development.
now returned to the government and managed by
lacal communities,
PT Dharma Satya Nusantara Tok | Sustainability Report 2023
Page 29
EVALUATING THE IMPACT
OF PAST INITIATIVES AND
FUTURE DIRECTIONS
f & SUSTAINABLE LANOSCAPE
INITIATIVE IN CENTRAL JAVA
« a.
lam encouraged to report progress on the ® 6 ENHANCING WORKER WELFARE WITH
A FIELD TOILETS: A MODEL OF
ground concerning the Sustainable Landscape
CONSIDERATE INFRASTRUCTURE
Initiative in Central Java, an effort previously
highlighted, However, it has become apparent The installation of14 field toilets for workers, a
that this initiative urgently requires a
detail mentioned in my last annual letter,
comprehensive strategy, developed in represents a significant step forward in
collaboration with all identified partners. The improving the daily working conditions of
absence of such a strategy, likely due to capacity DSNG's workforce. This collaboration with the
constraints among the identified collaborators, University of Indonesia has confirmed the value
underscores the need for enhanced cooperation and appreciation of these facilities by the
and resource allocation to realise the full potential employees. While seeminaly modest, this
of this endeavour initiative is a profound demonstration af DSNG's
commitment to employes welfare, setting a
commendabie standard not commonly
TRS =—s EXPANSION OF BIO-CNG FACILITIES:
observed even in more developed contexts.
A LEAP TOWARDS SUSTAINABLE ENERGY
The provision of dedicated field toilets,
The Bio-Compressed Natural Gas (Bio-CNG) particularly benefiting female employees, is
facility, a pioneering innovation within the DSNG a notable achievement that is starting to
operations, is currently undergoing an attract international attention. There is
expansion in production, This development is emerging pressure to expand this pilot
accompanied by increased adoption of Bio-CNG project and establish these facilities as a
through the conversion of diesel trucks to utilise standard across the organisation, reflectin g
this cleaner energy source. This initiative DSNG's leadership in fostering a dignified
exemplifies DSNG's commitment to sustainable and safe working environment
and renewable energy,
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Page 30
SUSTAINABILITY ADVISORY BOARD (SAB) affirms the positive influence of the SAB on DSNG's
UPDATE AND STRATEGIC INSIGHTS sustainability progress. Nonetheless, it is my view
that moving forward, there is a need fora more
QUARTERLY MEETINGS concrete understanding and measurement of the
a AND RISK MANAGEMENT SAB's impacts to ensure our contributions continue
to drive meaningful progress in DSNG's
In the past year, the Sustainability Advisory Board sustainability efforts.
(SAB) convened quarterly, with each session
commencing with a review of the organisational risk ENHANCING STAKEHOLDER ENGAGEMENT
matrix and updates on the management of high-risk AND COMMUNITY COLLABORATION
areas. The SAB is pleased with the progress observed
in these areas, reflecting DSNG's robust risk PROGRESS IN
management practices. STAKEHOLDER ENCAGEMENT
o
Reflecting on the initial trepidation towards
NEW MEMBERSHIP
adopting a more structured approach ta stakeholder
engagement in 2021, it is gratifying to observe the
The SAB welcomed Ibu Gita Syahrani, formerly the progress DSNG has made in this area, The inaugural
Executive Director of the Secretariat of the Sustainable stakeholder engagement session In 2022 In Jakarta
District Association (Linakar Temu Kabupaten Lestari, marked a significant step forward, attracting a
LTKL), as a new member, Her expertise, derived from reasonable turnout. The follow-up session in 2023
leading an association committed to sustainable was even more successful, evidenced nat only by
development through district government increased participation but also by the enhanced
collaboration in Indonesia, promises to significantly auality of discussions.
enhance the board's capacity to offer meaningful
guidance to DSNG on its sustainability journey. |bu
ZB INTERNATIONAL ENGAGEMENT EFFORTS
Gita Syahrani's inclusion is expected to bridge existing
capacity gaps and enrich our discussions. She is slated
to commence her role in 2024. In a Strategic move to navigate the complex landscape
of sustainability regulations and expectations,
particularly in Europe, DSNG has decided to
eo REFLECTING ON THE IMPACT OF THE SAB
proactively engage with key stakeholders in the
region. A delegation comprising Mr. Andrianto
At our final meeting of 2023, a critical reflection was Osetome (CEO), Mr, Denys Munang (CSO), and | was
raised regarding the SAB's effectiveness In advancing scheduled to visit the Netherlands in January 2024.
OSNG's sustainability agenda. This question was also This Initiative aims to introduce DSNG to European
directly posed to the CEO, Mr. Andriantoa Oetomo, ina stakeholders and, crucially, to gain insights into their
separate dialogue with me. The feedback received concerns and potential solutions.
~
PT Obarms Satya Nasantare Tae se +
- ee ~~? " : ~
Page 31
COMMUNITY ENGAGEMENT
a=’ IN EAST KALIMANTAN
DSNG's engagement with local communities in Kutai Timur, East Kalimantan sets a benchmark for effective
community collaboration, The company's initiatives to provide alternative livelihoods through mutually
beneficial solutions are commendable, A prime example of this success, in 2023, is the project aimed at
increasing local rice production. Through training and support, local communities significantly tripled rice
production in 2023, transforming the region from a net importer to being self-sufficient and even able to supply
excess produce to DSNG. This initiative exemplifies the positive outcomes that can be achieved through close
collaboration between the company and local stakeholders, creating a mode! of success that merits broader
application and study,
EXPLORING GLOBAL BEST PRACTICES IN SUSTAINABILITY:
INSIGHTS FROM INTERNATIONAL VISITS
DSNG has actively pursued learning opportunities through visits to regions globally recognised for their
leadership In conservation and Sustainable agricultural practices, among them Sabah, in Malaysia, as well as
Colombia and Brazil, These expeditions have yielded significant insights:
Sabah, Malaysia
= Colombia and Brazil “ >)
The experience of Sabah in habitat These countries presented the
connectivity for orangutans, particularly in complexities of sustainable palm oil
the design and construction of orangutan- production amidst challenges such as
specific bridges, has provided DSNG with higher manpower costs and a greater
valuable knowledge. Sabah's extensive incidence of crop diseases. The visits
experience in this area offers practical iiuminated the wide use of mechanisation,
lessons that can be adapted to improve innovative employee welfare solutions, and
biodiversity conservation efforts within the adoption of integrated pest
DSNG's operations. management practices, with an emphasis
on biological control methods.
Some of the insights gained from these visits are being assessed and where passible, actively integrated into
DSNG's operations.
This initiative underscores the commitment to adopting innovative, collaborative approaches to sustainable
development, drawing on global best practices to enhance its stewardship efforts,
Capacity Building Tear — ¥
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Page 32
BEYOND COMPLIANCE, BEYOND BOX-TICKING
A pivotal role of the Sustainability Advisory Board
{SAB) is to inspire DSNG te transcend conventional
compiiance, encouraging a proactive approach to
sustainable development, It is with a sense of pride
that | share examples of DSNG's commitment to
A notable achievement in 2023
this ethos.
concerns the enhancement of
Itis gratifying to report that, following discussions in the organisation's grievance
an SAB meeting in 2022, OSNG has significantly mechanism.
intensified efforts to make its grievance mechanism
more accessible and effective. Key initiatives have
Previous observations, including my own
included targeted sessions to safequard women's
during visits to DSNG's business units,
rights, engaging middle management in the process
highlighted that while a grievance
Moreover, the establishment of a centralised hotline
mechanism existed, it was not effectively
for grievances, now managed directly fromm the
communicated to staff, thereby limiting its
organisation's headquarters rather than locally within
utility. This isa common shortfall across
individual operational units, marks a significant step
various industries, where grievance
forward. These measures have substantially increased
mechanisms often fail to meet their
the likelihood of the grievance mechanism being
potential due to inadequate promotion
utilised effectively, reflecting DSNG's genuine
and integration into corporate culture,
commitment to addressing concerns and fostering a
supportive environment for all employees.
STRATEGIC PRIORITIES FOR FUTURE
SUSTAINABILITY LEADERSHIP
As DSNG continues to position itself as a leader in sustainability and a forward-thinking entity, it is imperative to
focus on key areas To ensure enduring success and responsibility. Based on observations and the evolving
tandscape of sustainability, the following recommendations are proposed for the organisation's consideration:
OT ADVANCEMENT OF CLIMATE ADAPTATION STRATEGIES
DSNG must continue developing its climate edaptation plans, especially as new insights emerge regarding climate impacts on the
regions of its operations. The current adaptation strategies, still in the early stages, require ongoing refinement and expansion to
effectively address future challenges,
a“
O2 ENHANCED STAKEHOLDER ENGAGEMENT
Refining systems to strenathen stakeholder connections is essential, Enhanced engsgement will enable DSNG to anticipate
trends, identify opportunities, and devise strategies to mitigate potential risks. A proactive approach to stakeholder relations will
serve as a cornerstone for navigating the complexities of the sustainability landscape
PT Dharma Satya Nusantara Tok | Sustainability Report 2023 25
Page 33
Ener
i Singapore
lture for farmers fesiience
furt
fon
) Aecorpontd LiL
Addressing these recommendations will not only
reinforce DSNG's sustainability leadership but
also contribute to the organisation’s resilience
and adaptability in a rapidly changing global
context
CONCLUSION: A SHARED PATH
TOWARDS SUSTAINABILITY
As we navigate the complexities of the
sustainability journey, itis clear that challenges are
abundant, and on the flip side, opportunities are
aplenty. The imperative, as always, will be to stay
the course in the pursuit of sustainable
development. Serving as the Chair of the
Sustainability Advisory Board, it is both an honour
and a duty to play a role in guiding DSNG on its
path to sustainability, Together with my colleagues
on the SAB, we are-committed to a collaborative
Journey of progress and discovery.
O03 COMMITMENT TO
REGENERATIVE AGRICULTURE
OSNG is encouraged to embrace the growing global
momentum around regenerative agriculture, While
Gefinitions may vary, the essence of regenerative Together with my
agriculture as a net positive development—for people, colleagues on the SAB, we
planet, and profit—stands in contrast to the narrower
are committed to a
perception of sustainable agriculture as merely avoiding
harm. Engaging with the evolving discourse and collaborative journey of
dlatforms focused on regenerative practices will position progress and discovery.
OSNG at the forefront of agricultural innovation.
DATUK DARREL WEBBER
Chairman Sustainability Advisory Board
O4 WORKFORCE ENGAGEMENT
AND INCLUSION
Continuing to innovate in workforce engagement
remains paramount, Recognising the challenges in
attracting anc retaining talent within the sector, OSNG
should prioritise modernising the workplace
envirenment. Efforts should sim to enhance inclusivity
for women, and ensure dignity and safety for all workers,
especially in roles often deemed dirty, dangerous,
difficult, and demeaning. These measures are critical for
DSNG's mid-term strategy, contributing to a more
engaged, committed, and productive workforce,
PT Dharmas Satya Nusantara Tok | Sustainability Report 2023 26
Page 34
€
O06 About
— the Report
Page 35
Overview
SCOPE OF THE REPORT
The Sustainability Report by PT Dharma Satya
Nusantara Tbk (DSNG) provides a comprehensive
overview of our sustainability approaches, endeavours,
and operational achievements. It encompasses the
performance. of our subsidiaries within the Palm Gil
and Timber Products Business Units, which operate in
Indonesia, our main market. The report encapsulates
activities conducted from January 1 to December 31,
2023, and is integrated into the DSNG 2023 Annual
Report, unless otherwise stated,
REPORT FRAMEWORK DSNG's 2023
This report was structured according to the Financial Annual Report can
Services Authority Regulation (PO3K) No. 51/
POIK.03/2017 and the Financial Services Authority be found at
Circular Letter (SEOJK) No. 16/SEOIJK.04/2021.
Additionally, the reportis in accordance with the
Global Reparting Initiative (GRI) Standards 2021, by THIS LINK
complying and following the GRI Standards for
Agriculture Sector Standard. The report applies the
GRI Standards” reporting principles of: Accuracy, Where possible, data from previous
Balance, Clarity, Comparability, Completeness, financial years were included for
Sustainability Context, Timeliness, and Verifiability. comparison.
This sustainability report was also prepared according
to the Sustainability Policy Transparency Toolkit
(SPOTT) and the Task Force on Climate-related
Financial Disclosures (TCFD} criteria.
ESG RATINGS
Sustainalytics
SRI-KEHATI a FIAT S&P Global
ESG Score
[based on DSNG
included as. a constituent in the 3 of 35 4 2021 Sustainability 3 9
sustainabitity indices, namely SRI-KEHATI, .
Annual Report}
ESG Quality 45 IDX KEHATI, and ESG
Sector Leaders IDX KEKATI
SPOTT ope
To view more data
90.4% am=zp
CLICK HERE
Ranked 10" globally
PT Dharmas Satya Nusantara Tek | Sustainability Report 2023
Page 36
DATA AND EXTERNAL ASSURANCE
To ensure the reliability As of the end of 2023, there were changes. and
and credibility of our restatements of information from previous reports,
data, internal verification including change in the legal status of land under
and independent external management. To ensure the reliability and credibility
party verification has of our data, interna! verification was conducted and
been done. approved by the Board of Directors and Board of
Commissioners. This report also underwent
verification by an independent external party, Moores
Rowland Indonesia, for several material indicators of
our operations that year. Financial data were audited
by @ Public Accounting Firm (PAF).
RESPONSE TO FEEDBACK
ON PREVIOUS YEAR'S REPORT
As of the end of 2023, DSNG has not received any
stakeholder feedback regarding the previous
sustainability report. Nonetheless, DSNG continued to
improve data presentation in this year’s report.
Report Contact
TEGUH TRIONO
Sustainability Engagement Lead
@ ss GRAHA DSN
Jl, Pulo Ayang Kav, ORS
Kawasan Industri Pulo Gadung
Kel. Jatinegara, Kec. Cakung
Jakarta Timur - 13930, Indonesia
VF cman
sustainability@dsngroup.co.id
} wessite
ntteuwww.dsn.co,id
& ) PHONE FAX
62214618135 +6221 4606942
PT Dharmas Satya Nusantara Tok | Sustainability Report 2023 29
Page 37
Material Topics (<5
DETERMINATION OF MATERIAL TOPICS
In determining material topics, BDSNG mapped Such material topics are continuously validated
relevant sustainability topics within the context of its and reviewed. This feedback and suggestions were
business sector, identified actual and potential Used to shape priorities for material topics in this
impacts, and assessed the significance of these report, Such material topics are continuously
impacts on sustainability topics. validated and reviewed.
DSNG organized an annual Stakeholder Engagement All material topics in the report are reported based
Forum (SEF) on 4 July 2023; inviting stakehalders from on the principles of Good Carporate Governance,
civil society organizations, investors, financial analysts, in alignment with DSNG's sustainability policy,
international development agency, academia, and which focusses on three core pillars: Forests,
research institutions. In this forum, DSNG presented Climate, and Communities. Additionally, material
its previous year's sustainability performance and topics relating to our commitments to NDPE and
solicited feedback and suggestions on material topics support for the Sustainable Development Goals
considered important by stakeholders, This feedback (SDGs) were also integrated
and suggestions were used to shape priorities for
material topics in this report.
MATERIAL TOPICS IN MATERIAL TOPICS IN
THE FOREST PILLAR THE CLIMATE PILLAR
DSNG supports the commitment to na DSNG supported the commitment to no peat by
deforestation through various forest continuously engaging in water conservation
conservation programs; biodiversity, and efforts and avoiding new plantation
environmental compliance across our entire development on peat lands. DSNG is also
supply chain, committed to preventing carbon release
through emission controls, renewable energy
development, as well as effective waste and
effluent management.
MATERIAL TOPICS IN MATERIAL TOPICS IN
THE COMMUNITY PILLAR GOOD CORPORATE
DSNG supports the commitment to no Governance is the foundation of the Company's
exploitation through labor management and performance in conducting transparent and
respect for human rights, improving the ethical business practices, as well as eliminating
welfare and prosperity of employees ana the corruption or bribery while ensuring sustainable
community, implementing health and safety at economic benefits to its stakeholders.
work; and managing indirect economic
impacts through various corporate social
responsibility initiatives.
PT Oharma Satya Nusantara Tbk | Sustainability Report 2023
Page 38
MATERIAL TOPIC SUB TOPIC
Biodiversity & Conservation
=. -_
ee Environmental Compliance
PROTECTING FORESTS Deforestation
AND BIODIVERSITY Fire Prevention and Management
FOREST
ce) ie
££ OO Environmental anc Social Practices of the Suppliers
Traceability
SUPPLY CHAIN PRACTICES
GHG emission
i & co) & Climate Risk tasnnn
“rch and Adaptation
GHG EMISSION Renewable Energy
CLIMATE
AND CARBON FOOTPRINT Waste Management
Water Management and Conservation
Occupational Health and Safety
4 Bs Lt)
ad| g Training and Education
No Exploitation
WORKING CONDITION
Diversity and Wornen Empowerment
co Human Rights and Employment Standards
s *@
Gender Eauality
Freedom far Union
WORKERS’ RIGHTS
COMMUNITY Women and Child Protection
Rights of Local Commiunity
Support to the Local Community
Economy Prosperity and Local Community Welfare
LOCAL COMMUNITIES
Gavemance and Business Ethics
t=
fers) Product Quality and Safety
Inmevstion and Technology
GOOD CORPORATE GOVERNANCE
Safety and Mata Privacy
= iS Lo Economic Performance
GOVERNANCE od Ea CO
fy Stakeholders Collaberation and Reporting
PROSPERITY AND Sustainable Economic Innovations
INCLUSIVE GROWTH indirect Economic impects
PT Dharma Satya Nusantara Tok | Sustainability Report 2023 31
Page 39
Boundaries of Material Topic impacts
. | FOREST PROTECTING FOREST AND BIODIVERSITY
The Company's
Impact on the The Company's Review and Stakeholder
Response and
Company Action Evaluation Engagement
Commitment
» impacting the Compliant to RSPO During the reporting » Conducted » Central and regional
plantation Processes for NPP, period, the Company periodically, governments
management and HCV & HCS has through a reporting
Employees
development Assessments mechanism of
Comiplied with
Financial Service
biodiversity
» Provision. at Conservation of RSPO NPP, HCV &
monitoring Authorities {O7K) and
conservation aréa critical species HCS nrocesses
performance Capital Market
and protecting specified by Govt
Fulfilled RSPO RacP Authority
keystone species Policy & the 1UCN Updating
COMMITMNENt To
including orangutan Red List conservation data Palm olf smallholders
help preserve
according to SMART and local
Conservation in off- forests with local
Patrol,and communities
concession areas communities in
through Laman Satong,
reporting to the » Non-government
authorities organizations (NGOs)
Partnerships and Ketapang, West
callaboranen with Kalimantan Maintaining the and environmental
communities & clvil cammunication activests
Constructed
society (OFF with stakeholders Intemational
artificial corridors to
Coneession Devyelopment/Aid
expand the roaming
Conservation Areas- Agency
wildlife areas within
OCCA)
the concession in
Bengalon Sub-
districL East Kutal
Regency, East
Kalimantan
Implemented
wildlife monitoring
in HCV areas in Ease,
Central, and West
Kalimantan
cancessions using
SMART Patrol
in collaboration
with USAID: SEGAR
and LPHD Karangan
Dalam, gathered
biodiversity data in
the Conservation
Area Outside the
Concession
spanning 3,148
hectares in
Karengan Dalam
Village, East Kutai,
East Kalimantan
PT Dharma Satya Nusantara Tok | Sustainability Report 2023
Page 40
) 0 Forest PROTECTING FOREST AND BIODIVERSITY (continued)
The Company's Action (continued)
© Committed to implementing best practices and operating following national and global standaris and regulations:
* IFC-PS1 (Environmental & Social Management System/ESMS)
© Palm O4 Certification (ISPO, RSPO & SCC}
* Timber Product Certification {SVLK, FSC, PEFC, CARB}
|) Forest SUPPLY CHAIN PRACTICES
e Com s
Impact on the ™ pany’ The Company's Review and Stakeholder
Response and Action
Company Evaluation Engagement
Commitment
© Influences the © Support the During the reporting ® The Company Shareholders and
>
implementation of implementation of periad, the Company: ‘periodically reviews Investors
the Company's NOPE policy within o Probided this using the
Central and local
©
NDPE PSURP RK socialization & mechanism of its
government
commitments for its chaln, especially training to | RS5PO Certifications:
supply chain external suppliers Through its ° Suppliers
and independent © 21RPC commitment to oo Customer
smaliholders © 22 Cooperatives &Green, an
independent audit
© 42 FFB Supply
is also conducted on
Agents
the Company's
© Achieved 94% of NDPE
target NDPE implementation,
implementation amongst athers
for Muara Wahau
region, Karangan
& Bengalon
© 3506 smaliholder
cooperatives nave
received RSPO
Certification
The Company's
Impact on the The Company's Review and Stakeholder
Response and
Company Action Evaluation Engagement
Commitment
Plantation and © Implemented best In the reporting period, * The Campany Shareholders
Timber Product sustainability the Company invested conducted a
Employees
operations directly practices in the in renewable energy greenhouse
gas
and indirectly managoment of through: emissions Central and local
impact the increase palm plantations inventory study for goverment
© Operating tvo Bio-~
Of GHG emissions, and the praduction CNG Plants that
the Grouc every Finaricial Services
which will also of palm olf and precduce 2,522. B49 three years, using Authority (O9K)
cantribute ta the timber products 209 emission data
Bio-CNG, which cary Palm oll
effects of Climate » Reduced GHG generate 7,159,846
as 3 baseline, and
smialinolders, and
Change developed an
emissions electricity, replacing focal communities
emissions
1,995,951 liters.of
reduction roadmap ° Local artist
diesel oil
across the group community
PT Dharma Satya Nusantara Tok | Sustainability Roport 2023
Page 41
The Company's
Impact on the The Company's Review and Stakeholder
Response and
Company Action Evaluation Engagement
Commitment
Energy use, © Aoplied energy With the operation © The Company
particularly fossil efficiency policies of these two plants disclosed GHG environmental
fuels, directly and and developing the Company can emissions to the
indirectly impacts. renewable energy teduce CHG public through the
the Companys GHG © Increased energy ermussions by 5.934 Sustainability
emissions tCOz Report of the DSNG
efficiency and the
website
Waste generated by use of renewable Started a trial of
Plantation and energy using Bic-CNG as The energy used:
Timber Product » Managed waste
fuel for FFB and saved was
operations has the transpartation evaluated and
generation through
potential to impact
feuse to Support
trucks using reported
the environment DSNG's circular
converters, As of periodically to the
through pollution December 2023, 4 Board of Directars
economy
FFB transport truck: and interested
Water use and implementation
waste from our providers from the: parties
© Reduced waste
community have
operations affect The amount of
disposal! inte the firecured 6 new
water bodies: and waste generated
environment trucks for
water reserves ir was monitored,
© Utilized water conversion
our operational reviewed, and
areas efficiently ® Continue the use of reported
* Conducted water Solar Panels at WP penodicailly to the
conservation, Engineered Board of Directors
Efffuents were Flooring mill, and interested
processed at Bia- Producing parties
CNG plant facilities, olectricity up to 138 The amount of
especially Pair Oi GW for operational
water used, and
Mill Effluent (POME} activities in WP- waste generated
Flooring
» Maintained the was monitored,
availability of water Establish an energy reviewed, and
in nelure and efficiency working reported
reused effluents group and pilot periodically to the
and waste energy saving Board of Directors:
initiatives at the WP and interested
wood panel-and parties
flooring mills
© Reducing waste by
applying the
principle of
circulanty
© During the
reporting periad,
Wwe processed
126/496 Loaf POME
ime the
equivalent of
10,284,430 kWh of
enoray through
Biogas
production
Utilizing. oll palm
biomass to
generate
electricity.and
become
complementary
fertitizer
PT Dharma Satya Nusantara Tok | Sustainability Report 2023
Page 42
The Company's Action (continued)
© Water usace intensity during 2023 of 1.30 m#/ton decreased by 0.09 mton FFB processed comparedto water usage intensity in 2022
The Company's
Impact on the The Company’s Review and Stakeholder
Response and
Company Action Evaluation Engagement
Commitment
© Priontized the © Implemented » The Company » Carned out regular ®© Contral and tocal
health and safety of operational safety implements reparting to gavernmment
workers to ensure and employee occupational health stakeholders *» Employees
uninterrupted health standards and safety oratocols
Operations and and conducts
© Prevented incidents
production activities tegular training and
bath fram
socialization to
workplace. accidents
and occupational employees
regarding OHS
diseases
© Conduct periodic
inspection of
Personal Protective
Equipment {PPE}
The Company's
Impact on the The Company's Review and Stakeholder
Response and
Company Action Evaluation Engagement
Commitment
© Provided © Involved iocal © By thé end of 2027, ® Carried out regular » Shareholders
and
employment workers as DSNG the percentage of reporting to investors
opperturrities for employeesor local workers: stakeholders © Employees
the local through suppliers, reached 51% in Pair
community complying with Oil business and 18% © Central and focal
employment wood business of goverment
© Promoted the
principle-of eauality
regulations DSNG's total * Palm oll smallholders
employees, and and local
to offer equa! © Offered equal
opportunitiesto the opportunities to there wee no child communities
local cormmiunity everyone to work labor or forced labor
through a fair practices inthe
and build a career
Company's
recruitment process at DSNG, respecting
workers" rights and
operational areas
eliminating © The lowest
discrimination employment
against Workers or remuneration value
in employment for DENG
employees is equal
to the minimum
wage set by the
local goverment
[POIKST F.19, F.20)
PT Dharma Satya Nusantara Tek | Sustainability Report 2023
Page 43
ws, artt gt ns puts + mee
LOCAL COMMUNITIES
Impact on the The Company's The Company's Review and Stakeholder
Response and .
Company Action Evaluation Engagement
Commitment
Inffuonced support » Conducted During the reporting Through the » Central and local
for plantation and com munity penod, the Company mechanism of goverment
factory onertations, empowerment and implemented, among periodical renorting
» Emptoyees
fulfilling social development others on the
responsibilities to programs implementation of Palm oll smailhotders
» Community
the cammunity, activities, and and surrounding
Respected the Empowennent
including reported to the cCOMMuUnties
community's rights, Program
indigenous peoples, Board of Directors » NGOs.and
incluging
and equitable » Alternative and external
Indigenous environment activists
welfare distributren Livelincod Program interested parties
Carmmunity
Development Plans Support and protect
and Cultural local cultural
Heritage heritage
Preservation » Actively engage
with local
communities and
indigenous
communities
GOVERNANCE GOOD CORPORATE GOVERNANCE
The Company's
Impact on the The Company's Review and Stakeholder
Response and
Company Action Evaluation Engagement
Commitment
» Impacted the Promote business The Company Through the © Shareholders and
decision-making with integrityand provides access to mechanism of investors
process that responsibility stakeholders and periodical reportina
» Employees
prioritizes the the public to submit on the
Implement
interests of feedback or implementation of Central and local
transparency in
stakeholders and complaints through activites, and government
disclosure-and
the Company and the Stakeholder reported to the Customers
communication to
managed the. Engagement Board of Directors
stakeholders in Suppliers
Carmpany following Forum (SEF) and and external
accordance with
the GCG principles providing grievance interested parties Paim oil smalihotders
applicable
channels and local
regulations and
communities.
reporting standards The Company elso
provides access to » Financial Services
» Implementing an
reports, complaints, Authority (QIK)
anti-corruption and
or claims related to Stock exchange
anti-bribery policies
corruption andor authorities
bribery through
whistleblowing
channels, email, or
vebsite
» Supportthe
Government's
program to
eradicate corruption
PT Dharms Sotya Nusantara Tbk | Sustainability Report 2023
Page 44
@ GOVERNANCE PROSPERITY AND INCLUSIVE GROWTH
The Company's
Impact on the The Company's Review and Stakeholder
Response and
Company Action Evaluation Engagement
Commitment
influenced the Developed By 2023; the Bio- Utilized reporting Shareholders and
continuity of supply sustainable paim oil ENG plant has mechanisms for investors
of Fresh Fruit Diantations snd utilized methane RSPO certification
Empioyees
Bunches (FFE) of community forests orussions Trom audits and annual
ealm oil and timber 12,929 L of POME to audits for our Suppliers
Developed palm oil
fogs as raw generate 7,159,846 &Greeri Palm oil smallholders
plantations without
materials for the kWh of electricity commitment and surrounding
NOPE
production process used for mill communities
Portormed supptier
Conducted
as Well as operations, offices
performance Contral and tocal
environmentally
sustainadle and employee
assessments and gavernmment
friendly operations
financing housing
reported
and production
involved the The Company mechanisms to
Involved local
Surreunding provides 6 ha of Stakeholders
companies in the
community in land te be managed regulary
Company's supply inte foad crops in
supporting the
supply chain chain, empowering support of food
and developing security by
Empowerment and
local economic
generating profits
development
potential from the sale of
programs for the
Encouraged local prectucts reaching
community affected
companies to Rp75 millian. In
the support from
involve local workers addition, it has
the local
as much as possible revitalized Lake
cornmmiunity for the
Lelhut as offices.
Sustainadility of the Assisted in
schools, of
Companys doveloping
Communities
operations and cooperatives (credit
recreation area
productiar unions) as financial
institutions for The Company has
community cooperated with 13S
economic cooperativesand
Geveloprnent local agents Ta
become FFB
suppliers
The Company has
distributed 767,400
jabon seedlings to
farmers in
Temanagung
Purworejo,
Wornosobo,
Baryamegara, and
Magelang
Inability Report 2023
Page 45
Page 46
About DSNG = ®ovks c2cscr! 24)
& COMPANY NAME OTHER NAME
Oosnwmacrour
& PT Dharma Satya Nusantara Tbk DSNG
SHAREHOLDING LEGAL STATUS OF ENTITY
As of December 7), 2023
Public @ Limited Liability Company
PT Triputra Investindo Arya @ Listed on Indonesia Stock
PT Krishna Kapital Investama Exchange (IDX) on
June 14, 2013
PT Tri Nur Cakrawala
@ Ticker Code: DSNG
PT Mitra Aneka Guna
Andrianto Oetome
® Arianto Cetomo
Operational Area
North Kalimantan
Indonesia |
West Kalimantan
|
Central Kalimantan
° “ East Kalimantan
]
Cemtral Javea
HEAD OFFICE ADDRESS Informotim Gischosure of
subsidiories offices ore disciotod in
GRAHA DSN the 2023 Annual Report,
@_ Ji, Pulo Ayang Kav. ORS \ Phone: +62 21 4618135 7 Email corsec@dsn.coid
Kawasan Industri Pulo Gadung Fax +62 214606942
P wwwdsnicoid
Kel. Jatinegara, Kec. Cakung
Jakarta Timur - 13930, Indonesia
PT Oharma Satya Nusantars Tok | Sustainebility Report 2023
Page 47
Vission and Mission of DSNG
Vision
To become a world-class company that grows
with society and is the pride of our country.
Embedding a Culture of Sustainability
into Company Values
The Company adopts a culture of sustainability at all organizational levels that
aligns with its values.
INTEGRITY
We put integrity as our core Value in everything that we.do,
+ Prioritize the company’s interests aver those of individuals or groups within the company.
+ Provide information based on factsin a responsible manner.
+ Walk the talk,
PASSION
We act with unrelenting passion,
y. + Intensely focused.
@° + Persistent and relentless in delivering:
+ Passion to uplift others,
STRIVE FOR EXCELLENCE
We strive for excellence,
- Committed to sustainably perform.
- Enthusiastic and open to learn and share knowledge.
+ Ingenious in its decision-making,
RESPECT
We-respect our empioyees, society, and the environment,
+ Seek understanding before taking action.
+ Respect others by allowing thern to grow together.
+ Demonstrate concern for the environment.
SYNERGY AND COHESIVENESS
We create synergy and cohestveness within diversity.
+ Build a sense of belonging in schieving unity towards the company’s objectives.
» Empower itself and others to create added value,
+ Maintain a prectuctive family atmosphere,
PT Oharms Satya Nusantara Thk | Sustainability Report 2023 40
Page 48
¢ LEGEND
Operational
* Nucleus Estate (ha) Total Estates
ie:
@ Managed Area
Tota! Plants
@ Planted Area a [POM; KCR
Areas
Wood Plants}
Plasma Estates (ha)
DEVELOPMENT OF PALM OIL
x PALM OIL BUSINESS UNIT
BUSINESS UNIT
TOTAL 5 3 @ 5,234
* 4,690
WEST
®@ 104,145.03
26,544 TF
sexe 14 KALIMANTAN 1,314
* 80,125.05
Sintang
1 EAST KALIMANTAN
Kutai Timur* Mahakam Ulu
* ® 72,463.94 * @ 1,271
* 59,927.26 @ 1,029.32
19,393 238
vm y 9 POM ag
FF 1 1 PKO MILL/KeP reat 1
2 WEST KALIMANTAN
Sekadau Sintang*
ae ® 6,993.20 3 ® 8,470.49
* 3,174.89 * 4,804.7
1,071 1,145
TF FT
rm 1
'@ 1POM
PF 3
3 CENTRAL 4 NORTH
KALIMANTAN KALIMANTAN aa WOOD PRODUCT BUSINESS UNIT
Lamandau* Bulungan
1" @ 71,580.19 3 @ 3,366.21 6 Central Java
# 8,302.08 * 2,886.74 TEMANGGUNG
3,555 1,202 Pingit District Kranggan District
¥F ¥F a 1 a 1
~~ '1 @ 2 POM
IE 1
“Chonge in managed aren following fegal change in
monaged aree of PT DWT, PT PWR, PT OPS dan PT PSA
PT Dharma Satye Nusantara Tok | Sustainability Report 2023 4)
Page 49
Activities and Business Relationships = (Pox sical 26)
The Company's business activities in 2023 were limited to the preduction and sales of palm oil and wood
products, with no significant change from last year. Within the said business activities, the Company also
produced Biogas to generate renewable energy and Biofuel in wood pellets and Palm Biomass.
ACTIVITIES, PRODUCTS AND SERVICES, MARKET SHARE, AND OTHER RELEVANT BUSINESS RELATIONS
SALES IN 2023
ACTIVITIES PRODUCTS sen ae
VOLUME IN 2022 Domestic Domestic Export Export
[Billion Rp) (46) (Billion Rel {9a}
Oll palm business Pair oll
unit 661,892 TST7 yoo ° i?)
Oil palm
40,356 sn 700 0 Py
plantation Palm kernel! off
Palm oil mill
Kernel
Kernel 122,732 136 100 0 o
Wood Products Panel S7 B44 6 242 602 $758
Business Unit
Engineered Soe
Flooring 756,468 24 WAX) 316 9247
Supply Chain
In 2023, no significant changes were related to the Company's supply chain, Our commitment remains to achieve
full traceability and compliance in our supply chain. In line with our NOPE commitment, the Company assists its
suppliers in its palm oil supply chain to achieve compliance by adopting sustainable practices, especially for
smallholders with limited resources.
In our Wood Products business unit, the Company has implemented its inventory and traceability systems on its
supply chain to community agroforestry farms using our proprietary e-RawMat application
|
i
Page 50
TRACEABILITY OF FRESH FRUIT BUNCH (FFB) IN 2023 (THOUSAND TON}
TRACEABILITY RESULTS
TYPE OF SUPPLIER TOTAL VOLUME
Traceable Volume % Traceability
Nucleus Estate 1,765,280 1,765,280 100
Plasma Estate 472,830 472.830 106
Other Estate (Uncontrolled by the Company) 45,400 45,400
Other Suppliers 582,519 565,786
Total 2,886,129 2,849,296
FFB VOLUME, PERCENTAGE AND ORIGIN OF SUPPLY (THOUSAND TON)
2022. 2023
SOURCE OF SUPPLIES
Total Total
Nucleus Estate 741,895 62.16 1,765,280
Plasma Estate 448,409 472830
Other Estate (Uncontrolled by the Company) 25,665 45,400
Other Suppliers 585,924 582,619
Total 2,802,093 2,836,129
CSPO RSPO SALES VOLUME (TON) [SPOTT 49]
SALES SCHEMES 2023
csPpo
Segregated 98,000 2.450 183,400
Mass Balance Scheme 18400 32,600
RSPO Credits Scheme 104,579 77,757 S14
ISCC Mass Balance Scheme 47,000 33,900
Sub Total 249,579 242,507
(NON-CSPO) CONVENTIONAL SCHEME
Sub Total 399,815 397,011 400,277
Total 649,394 639,518 665,041
PT Dharma Satya Nusantara Tok Sustainability Réepart 2023 43
Page 51
TRACEABILITY OF WOOD LOG PANEL WOOD PRODUCT BUSINESS UNIT IN 2023
TOTAL VOLUME TRACEABILITY RESULTS
TYPE OF SUPPLIER (mn)
Traceabie Volume Untraceable Votume % Traceability
Community Agroforestry 37,62) 37,68) - 7006
industrial Forest 38324 38324 - 100
Other Supplier
Total 136,905 136,005 - yoo
WOOD SUPPLIES FOR WOOD PRODUCT BUSINESS UNIT - ENCINEERED FLOORING
DESCRIPTION ca = 2022 2023
TOTAL SUPPLIERS
Lacal 14 22 3)
import Person 30 23 3
Sub Total holy 55 40
WOOD VOLUME
Ek Wood 21,830 2553
Sengon Wood 179,410 618
Jabon Wood me 8.568 - 8
Rubber Wood 167 22.157 7444
Sub Total 188,145 44,605 20,005
Value in Rupiah Billion Rp 255 48 105
Value in USD usD 11,168,095 15,812,702 6,921,889
The Company collaborates with sengon farmers and its collection partners to secure sustainable sengon wood
supplies fram managed Community Forests, The sengon wood is derived from traceable sources campliant with
the Indonesian Timber Legality Assurance System {SVLK) as a raw material for its wood products,
Ww
PAT UMUM PEMEGANG SAHAM TAH
PT DHARMA SATYA NUSANTARA Thk
8 JUNI a
_-
ad y 3
Satya Nusantara Tbk y| Sustainabiiity Reports2o23
Page 52
- PANEL
SUPPLIES FOR WOOD PRODUCT BUSINESS UNIT
WOOD
TOTAL SUPPLIERS
47 48
46
Person
Local
WOOD VOLUME
T7733 120.569
STAI
Sengon Log
B344 8436
7980
Jabon Log
i] 0
167
Rubber Log mom
30630 33,967
22,196
Sengon STBA
0
SBB 1,123
Jabon STBR
3s 6
258
Billion Rp
Value in Rupiah
Satya Nusantra Tok
Pt Dharma
Page 53
Our Employees = Pousics
The Human Capital function is responsible far managing the Company's Human Resources. In 2023, DSNG hired
4,810 new employees, of which 15% were female: Further details about the number of employees based on their
position and age can be found in the table below:
NUMBER OF DSNG EMPLOYEES BY POSITION, GENDER, AND AGE GROUP IN 2023
[POIKST F.19)(GRI 2-7, 405.1]
GENDER AGE GROUP
LEVEL POSITION
bale | Female 18-30 31-40 41-50 >50
Director and Equivaient 6 2 fe] 0 3 5
Senior Management 42 ag o 1 23 20
Middle Management 61 ie] 9 14 37 20
Staff 835 82 397 314 72 s?
Non-Staff 4838 877 1.960 2.209 1,333 213
Plantation Workers 9,933 3,570 5175 4,782 3,140 406
Total 15,715 4,559 7,532 7,338 4,721 701
NUMBER OF DSNG EMPLOYEES BY CENDER AND PLACEMENT AREA IN 2023
[RI 2-7]
= - -
MALE FEMALE
PLACEMENT AREA
Jakarta Head Office Ss? 0938 66 145
Central Java Temanggung 1168 TAS 435i 9.45
East Kalimantan Kutai East TOS72 67.27 3,033 66,53
Central Kalimantan Lamoendau 1,690 10.75 603 1323
Sekadau 776 A G4 13] 2.87
West Kalimantan
Sintang 900 5.73 183 3.36
North Kalimantan Bulungan 435 277 138 3.03
Others - 22 4 4 0.09
Total S715 100 4559 100
PT Dharmas Satya Nusantara Tbk | Sustainability Report 2023
Page 54
NUMBER OF DSNG PERMANENT EMPLOYEES BY GENDER AND PLACEMENT AREA IN 2023
[GRI 2-7}
2021 2022 2023
PLACEMENT AREA
Male Female Total Male Female Total Male Female Total
Jakarta 14) 3) 192 “9 59 208 lad 64 208
Central Java 1162 3093 TAT) 1,033 282 5 960 264 1224
East Kalimantan 6508 2,036 8544 2777 285) 12.682 10,295 2957 13,252
Central Kalimantan BO5 398 1,393 70 595 2.306 1,673 603 2,276
West Kalimantan 768 160 928 1,586 265 1,85) 1676 283 1,959
North Kalimantan 252 60 32 408 29 537 435 BE 573
Others ’ 0 1 7 - ° 5 2 v
Total 9,827 3,014 12,841 14,671 ‘4181 18,852 15,198 4an 19,509-
OTHER WORKERS ASIDE FROM DSNG EMPLOYEES
[CRI 2-2]
2021 2022 2023
Meera ater
End of the Year Beginning
:
of the Year etic of the
Beginning
End of the Year
Outsourced workers at DSNG Head 71a 243 249 26)
Office
Deto Source: Humon Copital Function, based on individuals registered on December 3), 2024
Page 55
Business Scale LEGEND 2021 ) 2022 =. 2023
BS
E
Pa
a:
oO ;
ea 8
8 wr
aos
ae§ g z8
zg ;
a 8
Total Liability Total Equity Total Assets Cost of Palm Oil Wood Product Renewable Profit
Product Sold Revenue Revenue Energy
Revenue
The Company has been a registered member of RSPO since 2008; Our membership covers all business units of the
RSPO palm oil industry, The first RSPO certification was obtained in 2013,
As of 2022, the Company has 26 plantation units
and 7 Palm Oil Mill [POM) certified with RSPO,
} } As of 2023 the Company has11 iSPC certificates for Palm Oil Mills (POM), which represents 91.67% of the
for Company's total number of mills
a PIT DSNG Is recognized as one of 25 constituentsof SRI-KEHATI index as of December 2020 and has heen ingiuded as
constituent in the two new stock indices, i.e ESG Quality 45 IDX KEHATI and ESG Sector Leaders IDX KEHATI as of
December 202),
Acenulti stakeholder partnership platform was established to support companies going through the ongaing global
Transition towards deforestation-free supply chains for commodities, including palm ail, soybeans, beef, and paper/pulp,
se Our membership in TFA is essential ta embrace a multistakeholder approach to reducing commodity-driven
R- = —__ deforestation through interventions such as the Jurisdictional Approach. In addition,
the platform facilitates sharing,
laarning, and collaboration With civil society, TEA mormbers, and regulators. DSNG Is also 4 mertiber of the TEAS
Southeast Asia Regiona! Committee.
PT Dharma Satya Nusantara Tok | Sustainability Report 2023
Page 56
INDONESIAN PALM OIL ASSOCIATION (IPOA)
@ ne) Asyneray between the central and regional governments in determining palrn of industry policy to create a
conducive climate for the paim olf industry
» A cooperation of various parties To ensure the sustainable supplies of wood raw matertats from plantation forests,
‘< ah) - preserved natural farests, and mutually beneficial use of other wood raw materials (rubber weed, coconut wood,
and palm wood)
INDONESIAN CHAMBER
OF COMMERCE AND INDUSTRY
- A forum that accommodates communication and consultation between Indonesian entrepreneurs and the
. government on trade, industry, and service issues
INDONESIAN SAWMILL AND WOOD WORKING ASSOCIATION (ISWA)
An association that encourages members to improve the processing of forest products to help boost the national
@& economy, especially in the forest sawn timber sector, as well as fostering members to improve quality and
(oud efficiency, researching product development, realizing the implementation of education and training to enhance
the quality of human resources and protect the interests of members.
INDONESIAN PUBLIC-LISTED COMPANIES ASSOCIATION
An association of Indonesian capital market aims to accelerate the capital market growth. Encouraging members
{Emitter} to establish a conducive and professional market climate.to motivate-other private companies in-onter the
capital market
4 Partnership for Action Against Child Labour in Agriculture (PAACLA} is.a multistakenolder partnership that
PAACLA applies a coordinated action approach and comprehensive and long-term collaboration to eradicate child labor
Oractices in agriculture
Pt Dharma Satya. Musantre TORK | Sustainability Report 2025
Page 57
wees
Ye
O08 DSNG’S
— Contribution to
Building Economic
Prosperity
[POIKS) B., Fl]
Page 58
Direct Economic Value
Generated and Distributed = (PosKsi
F 211681 201-4
In 2023, the Company generated revenue of Rp9,5 trillion, a decrease of 1.4% from the previous year's revenue
of Rp9,6 trillion. The largest revenue contribution was from palm oil (87.95%), followed by wood products (11.31%).
The increase in revenue occurred In palm oll In line with profit growth of 2.84% to Rp&354 trillion in 2023
compared to the previous year, The increase was due to the increase in FFB and CPO production,
REALIZATION OF REVENUE AND PROFIT (BILLION RP)
[POIKS) F.2}
2021 2022 2023 %
DESCRIPTION
3 2 1 12 23
Total Revenues 7,125 9,634 9.499 99% 135%
Net Profit B38 1,353 1,003 74% 161%
REALIZATION OF PRODUCTION AND SALE OF WOOD PRODUCTS BUSINESS UNIT
2021 2022 2023 %
DESCRIPTION UNIT
3 2 J Bred a
PANEL PRODUCTION
Production Realization Thousands m? 107 18 SB 33% T1O®%
Thousands m? 703 16 100 BR% 106%
Sales Realization
Billion Rp 65/ 835 610 TA% 128%
ENGINEERED FLOORING PRODUCTION
Production Realization Thousands m? 11s? 1080 756 Bo% 93%
Thousands im? 143 1s 74? 67% SBR
Sales Realization
Billion Rp 466 486 343 TOM O3%
TARGET AND REALIZATION OF WOOD PRODUCT BUSINESS UNIT
{[POIKSI F.2}
2023 TARGET 2023 TARGET 2024 Sn
DESCRIPTION UNIT
3 2 1 Lis 4 23
PANEL PRODUCTION
Production Realization Thousands m* 33 né R7 169% nies
Thousands m* 100 16 127 109% Nes
Sales Realization
Billion Ro $10 74S 763 TO2% 123%
PT Oharma Satya Nusantars Tbk | Sustainability Report 2023 5
Page 59
TARGET AND REALIZATION OF WOOD PRODUCT BUSINESS UNIT (Continuation)
[POIKS! F.2}
2023 TARGET 2024
DESCRIPTION UNIT
1 12
ENGINEERED FLOORING PRODUCTION
Production Realization Thousands m? 736 Ts 930 130%
Thousands m* 73 930 130%
Sales Realization
Billlan Rp 318 410
REALIZATION OF PRODUCTION AND SALE OF PALM OIL BUSINESS UNIT
2021 2023
DESCRIPTION UNIT
CPO PRODUCTION
Production Realization Thousand tons 14% IF
Thousand tons 640 104% TITS
Sales Realization
Billian RA vAS1| 7577 106% 142%
NON-CPO PODUCTION: KERNEL
Production Realization Thousand tons ns 123 104%
Thousand tons 27 100%
Sales Realization
Billlan Rp 168 36 noe
NON-CPO PRODUCTION: PKO
Production Realization Thousand tons 30 40 26%
Thousand tons 39 392 125%
Sales Realization
Biltian Rp 133%
TARGET AND REALIZATION OF PRODUCTION AND SALE OF PALM OIL BUSINESS UNIT
[POIKST F.2}
ACTUAL 2025 TARGET 2023 TARGET 2024
DESCRIPTION UNIT
CPO PRODUCTION
Production Realization Thousand tons 494 735 735 10%, 106%
Thousand tons 694 735 73S 100% 106%
Sales Realization
Billion Rp 6722 698s 6,983 100%
PT Oharma Satya Nusantars Tbk | Sustainability Report 2023
Page 60
TARGET AND REALIZATION OF PRODUCTION AND SALE OF PALM OIL BUSINESS UNIT (Continuation)
[POJKS) F.2}
ACTUAL 2023 | TARGET2023 | TARGET 2024 Sa
DESCRIPTION UNIT ——————
3 2 | 2 23
NON-CPO PRODUCTION: KERNEL
Production Realization Thousand tans 123 was TS 100% NO®
Thousand tons 28 28 28 10% 103%
Sales Reatization
Billion Rp 120 44 144 106% 120%
NON-CPO PRODUCTION: PKO
Production Realization Thousand tans 40 46 46 100% Ss
Thousand tons 40 46 46 100% 15s
Sales Realization
Billlan Rp 448 58a 588 100% 125%
In 2023, DSNG aid not receive financial assistance from the Government. The Company Generated its economic
value only from the sales of wood products and palm oil products. Some parts of the economic value generated
were distributed to the stakeholders through dividends, employee remuneration, investment in the community,
taxes, and others according to the prevailing laws and regulations.
- , =
ECONOMIC VALUES GENERATED AND DISTRIBUTED (MILLION RUPIAH)
ECONOMIC VALUE GENERATED
Revenue TA24 495 9,633,671 9,498,749
ECONOMIC VALUE DISTRIBUTED
Cost of Goods Sold 5,099,969 6,516,096 6,971,281
General and Administrative Expenses wh 343 ASI 39% on 14s
(including ernplayee wages and benefits) ‘
Payments to Shareholders 130,730 20,997 3I7,995
Profits Distributed to Owners of the
Parent Entity TINS 1.206,835 839,809
Payments to Government 299,414 464,556 518,410
Community Investment (CSR) 14,300 20,880 25500
Total Economic Value Distributed 6,631,409 8,830,857. $155,640
ECONOMIC VALUE RETAINED
PT Ohara Satya Nusantara Tbk | Sustainability Report 2023 SS
Page 61
EMPLOYEE PENSION FUND
GRI 201-3
aii IN 2023, THE COMPANY CONTRIBUTED TO
The Company has taken meastires to ensure the THE MEMBERSHIP FEES OF BOTH THE
welfare of its employees by enrolling them as JHT AND JP PROGRAMS OF BPIS
members of the Old-Age Security Program (JHT) KETENAGAKERIJAAN.
and Pension Security Program (JP) managed by the
Employment Security Program (BPIS The tatal contribution amounted:
Ketenagakerjaan). As such, the Company is not
® Rp72.45 billion in the Paim Oil
required to disclose the management of its sid ERS
employees’ old age and pension security, including . pale ig inthe: Wood Prod
fulfilling obligations to employees approaching Se cate yee ues
retirement, as BPJS Ketenagakerjaan oversees
these matters.
Our Innovations to Support
Sustainable Business
¢
CULTURE OF CONTINUOUS IMPROVEMENT 8 68
|POIKSI F.Z6] ° TEAMS
The Company continues to make continuous Applied from all DSNG
improvements to increase productivity and strive for poate cite :
cost efficiency towards responsible and improvement steps
environmentally friendly operations. The Company
innovates by utilising technology, renéwable eneray, —
and through the DSN Award Convention. The DSN
award is an annual event organised by DSNG which 34
adopts a culture of continuous improvement. The Tea
categories covered in the DSN Award are The best form of
improvements in plantation operations, palm oil improvements that are -
mills, heavy equipment and infrastructure, mills in AE Ry eT
the wood products business unit, as well as performance
supporting and sustainability functions,
In 2023, there were 868 improvement themes from
all DSNG business units and from this process, the
Company filtered out 34 improvement themes that
were considered to have a positive impact on the
Campany's performance:
The Company rewards groups that have contributed
to this continuous improvement with money,
trophies, and other benefits. The following are the
identified best improvement themes and their
impact on the Company:
PT Dharma Satya Nusantara Tbk | Sustainability Report 2023 S4
Page 62
TYPES OF IMPROVEMENT AND THE IMPACTS TO THE COMPANY
[SPOTT 120}
BE woop PRODUCTS BUSINESS UNIT
TYPES OF IMPROVEMENT
Productivity improvements in material preparation for the Labour cost efficiencies and productivity improvements in
cutting and ripping process for OTBR rubber bottoms the production process area
Reduction of time lest during bevel polishing on the Cost efficiency and productivity improvements of the
Homag 1 machine Homag 1 machine process
Elimination of conveyor belt damage downtime due to
Cost officiency and reduction of Mean Time to Repair (MTTR)
burning on COT-32
Reducing the cost of using Turalik 52 oil in the Powerpack
Cast efficiency
Conveyor Step Feeder
Increased floor base repair productivity on line 9 Cost efficiency and productivity improvement
Reduction in thresd adhesion defects and joint core
Cost efficiency and maintaining product quality
tensile adhesion
Improvements in Accounts Payable (AP) verification for Minimise errors to 0% In terms of work quality and improve
local non-timber invoices productivity
Reduction in database access failures on Coldpress 01
Improve application development and cost efficiency
machine automatic setting
Improving the value of canteen liquid waste PDAM water payment cost efficiency
Reduce the high cost of managing sludge give Cost officiency, safety improvement and work quality
DK PALM OIL BUSINESS UNIT
TYPES OF IMPROVEMENT ; co
Improves grabber productivity by reducing waste
Reduced sink evacuation time and grabber productivity
time officioncy
improvements in the accuracy of collecting loose fruit at TPH Cost efficiency and productivity improvements
Handling of wheel seal damage on grabber units Cost efficiency and productivity improvements
Reduction in FFB transportation costs Safety, cost efficiency and productivity improvements
Effective use of harvesting points in low-lying areas Cast efficiency and productivity improvements
Reducing the difference between delivery and actuai Productivity and quality of work increased to 100%,
paim oil mill delivery time as well at cost efficiency
Practical, efficient, and sustainable banana weed control Quality of results and cost efficiency increased to 100%
Improve HK productivity, thereby reducing fruit losses
Dealing with fruit falling into the grate on steep slopes
and cost efficiency
Improvements in working hour productivity and
Reduce fiber spillage at press stations
cost efficiency
PT Oharma Satya Nusantars Tbk | Sustainability Report 2023 65
Page 63
PALM OIL BUSINESS U
Improvements in HK productivity, work quality, and
Improvements in CPO loading capacity to tank units
cast officiency
Reduced frequency of lorry derailments on tippers Increased in machine processing capacity and lorry productivity
Optimization of LTDS to reduce the ratio of Calcium
Cost efficie and KER quality improvemen
Carbonate (CaCOs) consumption per ton of FFB = FRE TURES NEE =
Improvements In manufacturing time (productivity) and cost
Streamlining the flange production process
a fh P efficiency
Improvements in Bio-CNG generator downtime dus to PRS : Nees
Hamas Cost efficiency and genset productivity improvements
F ©
Sa a Cost efficiency, improvementsin work productivity, and
Reducing overtime costs for administering fertilizers 3 ; im ; ? ney:
no external audit findings
Reduction of carbon emissions from fuel oll use and cost
Reduced fuel costs for lawn care
efficiency
Reduces the time needed te recap the check sheet Improve productivity and cost efficiency
Improvements in omployee service advance 3 Down Improvements in the auality of employee service
completion time advance completion
Reduction in discrepancies related to the volume of Audi iit J est efficl
rr jen
Waste in overloaded landfills St a as
Effectiveness of Traceability activities using Landsat
ad Improve working hour productivity and cest efficiency
imagery, Drones, and field visits
af HEAD oFFice
TYPES OF IMPROVEMENT TERHADAP
PENGASRUH PERSEROAN
Improvements in the accuracy of final diese! .
: Cost efficiency related to diesel stock
stock determination
; . Pp Accuracy of advance payments and improvements in
Time accuracy and payment of employee BPD advances the productivity of BPD advance payments
Reduce in time required for data recovery in cases of Reduce costs and improve the quality of SLA-based
warranty hardware damage recovery support
Increasing Individual employee involvement in sorting Cast efficiencies in waste management and a reduction in
Waste at head office waste-related carbon-emissions
Page 64
we
CULTURE OF IMPROVEMENT AND
INNOVATION LEADS TO EFFICIENCY
A compelling illustration of the success of the
company’s innovation culture can be found in the
efforts of one of the QCC groups within the Wood
Product Business Unit, Recognizing the
shortcomings of Plytec machine No. 17, particularly
related to table length and surface roughness, cn of
the participant group embarked on a mission to
enhance its efficiency. Through their ingenuity and
collective efforts, they successfully redesigned the
table, resulting in a remarkable reduction of
product joint defects from 5.5% to just 0.5%, This
innovation net only improves product quality but
also optimizes material usage, leading to substantial
cost savings of RP650,000,000 per year,
Another noteworthy example is the
implementation of an automatic stop interlock in These examples underscore the tangible benefits
hotpress machine No. 9, spearheaded by another of fostering an innovation and improvement
QCC group. This innovative solution effectively culture within the Company, where employees are
minimizes product output defects, while also encouraged to think creatively and implement
increasing materia! utilization, thus generating solutions that drive operational efficiency ana
significant cost savings of Rp24,000,000 per year. enhance overall performance
OUR INVESTMENT TOWARDS A CIRCULAR ECONOMY
[PO2KS) £26)
We encourage renewable energy in our business activities in line with our transition towards a circular and low-
carbon economy, In the Palm Oil Business Unit, we use Palm O}l Mill Effiuent (POME), biomass shell waste, and
palm kernel fiber to produce renewable energy sources. Meanwhile, we Use solar power to diversify eneray
sources for the Wood Product Business Unit's operations.
Our first Bliomethane Compressed Natural Gas (Bio-CNG) plant commenced operations in 2021. In 2022, we
started the development of Methane Capture and a second Bio-CNG plant at an oil paim plantation in Muara
Wahau. This plant uses emissions from methane captured from 112,929 L of POME to generate Bio-CNG, which
can be used as a renewable energy source. Bio-CNG generated 7,159,846 kWh of electricity for palm oil mills,
offices, and employee housing operations.
PT Ohara Satya Nusantar Thk | Sustaimabiiity Report 2025
Page 65
In addition to using Bio-CNG as an electricity source,
In 2023, DSNG started
DSNG alse uses Bio-CNG as a substitute for diesel fuet
the operation of 21
for its operational vehicles. After successful trials with
Isuzu Bio-CNG trucks in 2021, the Cormnpany invested
trucks with Bio-CNG
in developing fuel conversion technology for diesel fuel and succeeded in
engine vehicles, enabling the transition to cost- reducing emissions by
effective Bio-CNG-powered vehicles. According to the 184.09 tCOze.
resultsof trials with Bio-CNG fuel on Mitsubishi FFB
transport trucks, Bio-CNG fuel fromm converted trucks
has proven to be as efficient as factory-made Bio-CNG
trucks. Based on this result, the Company expects to
save 8 million liters of diesel per year while reducing
emissions amounting to 23.78 thousand tCOze
through this technology: Since the end of 2023, the
Company has accelerated the transition to conversion
of FFB transport trucks rented from the community
by providing support for procuring 6 new trucks from
4 vendors, The use of new trucks is expected to THE BIO-CNG PRODUCED HAS
reduce fuel transition issues,
* Produced 7,159,846 kWh of electricity
OSNG has also established a joint venture company,
for palm oil mills, offices, and employee
PT Dharma Sumber Energi (DSE}, with eREX
housing operations.
Singapore PTE Ltd to supply palm kernel sheils to
Japan as biomass raw material for use in Rex's @ Reduced the consumption of
biomass power plant. DSE has obtained Green Gold 1,995,951 L of diesel oil for electrical
Label certification, and the Company intends to power generator,
supply 70,000 tons of palm kernel shells per year
based on its 1S-year cooperation period in the JV. In ® Saved diesel ail costs Rp30,94 billion
2023, DSE exported 40,397 tons of Palm Kernel Shells {assuming the price of diesel oil is Rp
to eRex with estimated revenues of 70.36 billion, 15.500 per liter),
AL the wood product business unit, the Company
has developed renewable energy through a rooftop
solar power plant (PLTS) at our 16,000 m2 WP
Engineered Flooring plant that can generate 115
megawatts of electricity per day at its maximum
Capacity, At the end of 2023, the rooftop solar power
plant installation has generated 1.38 GW of
electricity to support internal operations, With the
rooftop solar power plant, the Company potentially
reduces the total ernissions generated, equal to
1,035 tCOze per year.
Renewable energy allows the Company to reduce
GHG emissions of Scope 1 and 2 by 253,076 tCOze
per year. This amount is equivalent to planting
4,049,216 trees, reducing the use of 55,677
passenger car units, or removing 86,046 tons of
garbage from lanofills. The Company will continue
to shift entirely to renewable energy in the future, as
far as it is practicable.
PT Dhatme Satya Nusantara Tbk | Sustainability Report 2073
Page 66
INVESTMENT DEVELOPMENT AND REALIZATION ALIGNED WITH SUSTAINABILITY PRINCIPLES
cen ee
[POIKS! £3}
DEVELOPMENT INVESTMENT ACTIVITIES
Bio-CNG 2 The Compony’s Generete blo-methane RP7Z69 Bilion Generate 431,876
commitment to gas fuel of S70 m*hour, kWh electricity of
sustainable practices or 1S Matt of 1555.6]
through the-use of palm plectricity
oil mill effluent ta be
processed into
renewable energy
Bio-CNG Truck 2] units of Bio-CNG Total unit Produced 71,996 Nm*
Technol sh ootivert Trucks converter cost of Bio-CNG and reduced
existing FFB and CPO RPZ.G64 Billion diesel usage by 61,917 L
Transport trucks, rented
from local communities,
to Bio-CNG-fuelled 2) units. of Bio-CNG In total, the costs Produced 65,842
Converter Kit Diesel trucks to reduce Trucks, 8 units of Bio- incurred far the Nm? Bio-CNG and
to Bio-CNG emissions by replacing CNG generators, and? Genset converter, reduced diesel
diesel fuel and unit of Bio-CNG Dump truck, and usage by 74,824 L
decreasing operational car [AMB) operational units
maintenance casts amounted to
Rp3.41 billion
Electric Forklift at Electric forklifts Produce or reduce RpS25 Million per Reducing 64
Wood Product eliminate diesel and fuel the use of diesel fuel unit thousand liters
Business Unit oll, reducing with the use of 3 diesel per year
greenhouse gas (OHO) units of electric
emissions, fossil fuel forkiifts.
costs, and maintenance
costs
NEW SUSTAINABILITY TECHNOLOGIES AND INNOVATIONS
[POIKS! F.26}
DSN Group strives to leverage technology to enhance DSNG, through its subsidiary WP Panel, has
the efficiency and effectiveness of its business implemented wet scrubbers on the oil boiler
operations while promoting environmental chimneys at its wood panel factory in Temanggung,
sustainability and workplace safety, Central Java, to reduce emissions, The primary goal of
this technology is to reduce nitrogen dioxide (NG>2}
One technological advancement implemented at
emissions by 88 mg/Nm? and hydrogen fluoride (HF}
our palm oi! plantations and wood products factory
emissions below 0.05 mg/Nm®*, In addition, the use of
is the use of drones for estate and factory security wet scrubbers can improve the efficiency of the
monitoring. This has significantly expanded
boilers used in the plants by reducing exhaust gas
surveillance and monitoring coverage and temperatures by 28,7°C.
improved time efficiency compared to traditional
patrolling methods. Since the end of 2021, WP Panel has installed wet
scrubbers on all their oi! boiler chimneys. As of
To auitomate the palm ail mill process, we have
November 2022, laboratory analysis has shown that all
implemented Supervisory Control and Data
NO: emissions meet the quality standard of 1,000 mq/
Acquisition (SCADA) and Automatic Tank Gauge
Nm with an average of 250 ma/Nm‘4, while all HF
{ATG) to measure the storage tank volume. This
emissions are now below 0.05 mag/Nm?, which meets
automation has improved worker efficiency and real-
thé quality standard of maximum 10 ma/Nm,
time data access while providing employees with a
safer and more. comfortable environment.
PT Charme Satya Nusantara Tbk | Sustainability Report 2023
Page 67
WP Panel is constantly striving to improve the
efficiency of its production processes through
automation. Some of the efforts in this direction
include the installation of conveyors
WP Panel is constantly
and machine auto feeders to streamline the
movement of goods and using a plastic patching
striving to improve the
machine to expedite material repairs and
efficiency of its production
eliminate hazards for its employees processes through
automation.
To further improve efficiency, WP Panel is also
modifying its engines, for instance, by installing
automatic engine shutdown tools to conserve
energy. In addition to these measures, the
company utilizes SCADA technology to monitor
its Kiln Dry (KD) process
As part of its Internet of Things (lot) initiative, WP
Panel has implemented Smart Office programs
to streamline office work and Auto Order Control
and Auto Setting programs to automate
production operations.
Management of Indirect
Economic Impacts _ {sr!z052)
In line with the principle of shared prosperity, DSNG is
committed to encouraging sustainable development
in local communities, The Company understands the
importance of involving communities in its business
value chain and ensuring sustainable and resilient
livelihoods, The community engagement includes
involving them as suppliers of raw materials and
agricultural equipment, vehicle rental service
providers, building construction service providers, and
food suppliers for employees and families in our
operational areas, Through this community
engagement, OSNG Strives to create mutually
beneficial relationships with the community by
contributing to economic growth and development
and ensuring our operations’ long-term sustainability.
CREATING ALTERNATIVE LIVELIHOODS
AND ECONOMIC OPPORTUNITIES
Since 2022. DSNG has provided business
opportunities for local entrepreneurs and business
training for the focal youth community to meet the
needs of the local community and those who support
our operations. The Company cooperates with the
Village-Owned Enterprises (BUMDES) Muara Wahau
and Miau Baru in developing business opportunities
through the food industry, AC services, and
community-based ecotourism
PT Ohara Satya Nusantara Tbk | Sustainability Report 2023
Page 68
In 2023, DSNG and Village-Owned Enterprises Uyeng
Lahai Miau Baru Village supported 267 farmers and
local businesses by purchasing 281 tons of rice,
amounting to Rp3.8 billion to supply employees’ food
needs. Besides, the Company also provides Village-
Owned Enterprises administrators with assistance
related to capacity building. Through the
involvement of the Local Aariculture Office to give
land and improve the capacity building for Good
Agricultural Practices, the Company and Village-
Owned Enterprises plan to expand paddy fields to
300 ha and paddy productivity (yield) from 6 tons/ha
to 7 tons/ha by 2024.
Together with village-owned enterprises and Muara
Wahau Village, DSNG provides livelinood
opportunities through community food security and
ecotourism businesses. The Company has 2:ha of By the end of 2023,
Right to Cultivate land to be managed as paddy fields approximately 135 local
and 4 ha as vegetable farms to support food security, cooperatives and agents were
In 2023, the community’s Income from vegetable suppliers of agricultural
farms reached Rp75 million, Regarding ecotourism,
services for our palm oil estates
DSNG supports the community in revitalizing Lelhut
in Muara Wahau.
Lake as a local tourist destination; offering scenery
and outdoor activities, Lake Lefhut is a location for
office, school, community recreation, and outdoor This represents a 136.84% increase from
activities, In 2023, the turnover in this area reached 57 local suppliers involved in 2022.
Rpl42 million, coming from entrance tickets, parking
fees, recreational facility rentals, and revenue from
food stands or booths:
OTHER INDIRECT SIGNIFICANT IMPACTS
The Company also collaborates with cooperatives to For years, we have supported the local
develop plasma estates, from which we saurce fresh community by providing FFB transportation to
fruit bunches (FFB). Currently, we purchase FFB from our estates. In 2023, we sourced more than 600
86 plasma estate cooperatives surrounding our locally-owned trucks for transport, which involved
business locations throughout Kalimantan. approximately 12,000 individuals (assuming each
Additionally, we supported local farmers by providing truck was operated by a driver and an assistant),
training on good agricultural practices and
sustainable agriculture to 5.252 Independent Patm Oi]
Farmers at East Kalimantan,
[GRI 203-2a]
PROPORTION OF SUPPLIER PARTICIPATION BASED ON NUMBER OF ENTITIES
2021 2022 4 2023
DESCRIPTION
TOTAL % TOTAL ™” TOTAL %
Local Suppliers ss 28 S7 28 ms 38
National Suppliers 47 7 143 Ti 212 6)
Global Suppliers 2 1 i 3 7
Total 268 wo 201 00 350 wo
PT Otarma Satya Nusantara Tbk | Sustainability Report 2025
Page 69
PROPORTION OF SUPPLIER PARTICIPATION BASED ON PROCUREMENT VALUE*
[GRI 204-4]
2021
DESCRIPTION
TOTAL % TOTAL TOTAL %
Local Suppliers 67557 38 B3I76 42 161.918
National Suppliers Million Rp OS. 767 2 13,600 58 245,754 60
Total W324 wo
Intemational Suppliers Usb 19,000 - 62.150 - 164,000 =
international Suppliers EUR 13,990 . = 600,25!
* Bondes Wesel and fortiirer
The Company also brings other significant
¢
indirect benefits in the farm of labor absorption Regarding tax payments,
and stimulating the local economy through tax
payments and procurement spending from
the Company referstothe (@@anTsrani-1-
tax policies available on
local suppliers, our website
SIGNIFICANT INDIRECT IMPACT
[CRI 203-2]
DESCRIPTION UNIT 2021 2022 2023
Number of Local Workers Absorbed Person 10,27 10,363 13,697
Local Econornic Stimulus
Payment of local taxes/retributions Million Rp 631,215.79 869.376.92 950,160.25
Procurernent exeonditure for local suppliers 6755744 83,176.44 V5LSN7 SS
TOTAL ASSETS OF CREDIT UNION (CU)
2023
NUMBER OF TOTAL ASSETS
MEMBERS (BILLION RP)
CU Mitra Mandin 2401 8 2390 50.06 2,390 5425
CU Blom Bea Ling 1045S 304 1030 3790 We 43
CU Satu Hat! Ss 55 326 623 327 7.22
CU Padulangan Bersatu 240 23 282 3100 343 $5
PT Charme Satya Nusantarn Tok Sustainability Report 2025 &2
Page 70
To ensure a sustainable wood material supply chain,
the Company has engaged a substantial sum of
high independent farmers in Central Java as its
supply base since the establishment of its wood SINCE 2020, THE COMPANY HAS
factory In Temanggung. DISTRIBUTED JABON SEEDLINGS
By the end of 2023, 767,300 jabon seedlings will To 8,350 farmers Who are members of 143
have been distributed, and the company aims to groups, iInciuding
distribute 6 million seeds to farmers across
Temanagung Regency, Purworejo, Wonaosobo, * 502 female farmers, to ensure a
Banjarnegara, and Magelang by 2027 sustainable supply chain
To further support farmers, in 2024, DSNG plans to
launch capacity-building orograms that will focus on
climate-resistant agroforestry practices, financial
literacy, and training for forest management
certification (FMFSC}.
In the future, the Company will also employ land
mapping and monitoring to ensure its supply chain is
free from deforestation. With the support of external
stakehalders, the OSNG Panel Wood Product Business
Unit plans to be actively involved in developing a
landscape effort to promote sustainable agroforestry
in Central Java over the next few years,
us
aa. —— -_ Le ~*
Page 71
Forest
Pillar
The forest is one of the
Company's strategic priority
areas. We take a more
proactive approach to forest
management and protection
than simply advocating for no
deforestation, working to
actively and comprehensively
preserve and restore forests
within and beyond the
Company's concession areas.
Page 72
Our Policies for Forest ¢
THE COMPANY HAS ALSO-PUBLISHED
Protection and Management OUR NDPE POLICY ON THE WEBSITE
{GRI 2-25}
Which includes our commitment, baseline
implementation, and roadmap for
The forest is one of the Company's strategic priority implementation policy, This full information
areas, We take a more proactive approach to forest is accessible through
management and protection than simply advocating
for no deforestation, working to actively and
comprehensively preserve and restore forests within THIS LINK
and beyond the Company's concession areas:
The Company reviews the Environment & Social
Management System (ESMS) document every six
months to ensure that the approach remain
consistent with objectives and in line with relevant
international best practice standards. This is done in
order to address and minimize potential
environmenta! and social risks and to plan for
mitigating their impacts on Company's performance.
The framework of this ESMS document is based on
International Finance Corporation Procedure and
Standard (IFC PS), Roundtable on Sustainable Palm
Oj! (RSPO) Principles and Criteria (P&C), ADB
Safeguard 2009, Timber Legality and Sustainability
Verification System (SVLK}, Forest Stewardship
Council Standard for Chain of Custody Certification
(FSC Coc), Programme for the Endorsement of
Forest Certification (PEFC).
The Company also'shares best practices with its
suppliers, particularly independent farmers, to
increase their understanding and promote
sustainable practices that can increase yields
while reducing adverse effects on the
environment.and society.
NDPE POLICY AND TRACEABILITY
The Company has consistently applied the NDPE
policy throughout our supply chain. The company
ensure that no business unit or supply chains grow By the end of 2023, DSNG has provided
palm oil on peatiand at any depth. trainings and disseminations of the NDPE
policy and the required compliance to several
Furthermore, to achieve NDPE compliance across all
external suppliers.
operational units, including plasma plantations, the
Company has designed a phased implementation ® 2 Independent Plantation Companies (IPCs)
of the NDPE policy between 2021 and 2025. This
© 23 of 26 cooperatives
aim to ensure that all palm oil products and by-
products are 100% compliant and traceable by the * 42 of 43 FFB supply agénts attended the
end of 2025. training and socialization
PT Dharma Satya Nusantara Tbk | Sustainability Repart 20235
Page 73
In 2023, a supptier self-assessment of compliance
In 2023, a supplier self- toward the NDPE DSNG policy was aiso conducted.
aap ale This assessment involved 25 stakeholders,
policy was also conducted. In addition to achieve this goal, through the supplier
. ess ved network; DSNG is committed to providing training
This ass ment invol and capacity building to independent smallholders,
25 stakeholders. equipping them with the necessary knowledge and
skilis to implement NDPE policies and best practices
in managing their oil palm plantations,
During the 2023 reporting period, the Company
trained 3,637 plasma farmers on NDPE and Good
Agricultural Practices (GAP). This training also
focused on increasing farmers’ understanding of
the importance of implementing Health, Safety,
and Enviranment (HSE} practices and respecting
human rights in their farming practices, Over time,
these training programs will help our supply chain,
especially independent farmers, to comply with the
NDPE policy,
@ FLOW OF NDPE IMPLEMENTATION APPROACH
DSNG preparation of NDPE Policy
by
Group level socialization and
registration
i Registration of independent smatihotder mambers and
Independent Smalihaider nishiéution-reGords
Registration
oy Commitment to Code of Conduct and agreement to negotiated
Supplier Commitment Supplier Roadmap to Compliance
a implementation of Supplier RoaGmap and training and capacity
Supplier Roadmap Activities Dduiiding for suppliers, supported by DSNG
Full Traceability and NOPE
Compliance Management ( Chain of Custody, NOPE
MRYV » Auditing
PT Dharma Satya Nusantara Thk | Sustainability Repart 2023 66
Page 74
OUR JOURNEY AND CHALLENGES
IN IMPLEMENTING THE
NDPE POLICY
The Company fully implements its no-deforestation During 2023, the Company
commitment in.our production process and supply recorded 3 cases of
chain through traceability, and continuously updates complaints related to
our knowledge and business practices in line with indications of deforestation
global anti-deforestation compliance requirements,
in our plantation areas in
including preparing to comply with EU anti-
déforestation requirements (EUDR)},
East Kalimantan and
Central Kalimantan, from
in an effort to ensure traceability of our paim oil external parties.
supply, especially from independent smallholders,
since 2023 the Company has been using the Koltiva During this reporting period, the
Applicatian (httpsy/Awww-koltiva.corn/) to record and Company also recorded 1 indication of
map the polygons of smallholders’ plantations. This deforestation detected from the Global
process faces many challenges, including the length Forest Watch (GFW Pro] system used by
of time needed to record and map I smalihoider DSNG to monitor the concession area
polygon (up to 4 hours per smaliholder, for thousands and its surroundings.
of smallholders), the large number and types of forms,
and the flexibility of access and data security.
To address these challenges, the Company has taken
steps to collaborate with civil society organisations »
(GIZ in East Kalimantan, and Solidaridad in West
Kalimantan and Central Kalimantan}, increase the Details of the case, verification and
number of employees in charge of supplier validation results of the deforestation
engagement, invest in drones and additional GiS indication are provided on
capacity, and define new areas of interest (AOI) In
satellite monitoring using Satelligence,
In line with the NDPE policy, the Company provides
access for stakeholders and the public to submit
reports, complaints, or claims related to deforestation
or exploitation in our operational areas or supply
chain. The verification process of such reports is
conducted by the Sustainability Department and engage with the relevant parties. All reports are
involves spatial assessments, interviews, clarifications, closed after the reporting party receives a complete
data and fact checks, and field visits to validate the response fram the Company regarding the
accuracy of the reports. While taking necessary action verification process, validation and if necessary
on the report, we continue to communicate and improvement or follow-up on the matter.
Page 75
KEY ACHIEVEMENT IN 2023
SUSTAINABILITY LOAN:
OUTCOMES UNDER THE
FOREST PILLAR
To support our efforts in environmental economic, and social needs, As part of this loan
management and the implementation of commitment, the company will have developed
sustainable practices in the industry, we have and agreed an Environmental and Social
secured loans from Stichting andgreenfund Management System (ESMS}, Environmental
(&Green) for our palm oil business unit and fram and Social Management Plan (ESMP}, Wood
the Asian Development Bank (ADB) for our wood Supply Procedure doctiment, and Corrective
products business unit, Action Plan (CAP) for the wood business unit by
the end of 2023.
AS part of our commitment to work with &Green,
the Company has developed a Landscape
Protection Plan (LPP} and an Environmental &
Social Action Plan (ESAP] to ensure responsible
management of natural resources and
communities in our palrn oil operations. The audit
results of the LPP and ESAP performance in
2023 were considered favorable with all ESAPs
In addition, there has also been
found to be in compliance with some
socialization of grievance mechanisms
recommendations.
and sustainable agroforestry to 250
The Asian Development Bank (ADB) has Farmers (187 men & 63 women) spread
provided loans and technical assistance funds to across 8 districts in 10 villages in the
the Company's wood products business unit to regencies of Temanggung, Magelang,
implement sustainable agroforestry-based and Banjarnegara Central Java Province.
landscapes that balance environmental,
Biodiversity and Conservation
GRI 364-1, 304-2, 304-3, 304-4
AREAS OF OPERATION AND PROTECTED AREAS
[POIKS) F.9, F710}
During the reporting period, the total area for the is considered as protected forest area, according to
Company's operations reached 112,673 hectares. both national and global regulations,
The Company manages all concession land for the
Whilst not located in any protected areas, there are
activities of the oil palm business unit. All oil palm
parts of the Company's operational areas where
plantations are located on productive land with
orangutans; which are endemic to Borneo and have
Other Land Use Area (APL) status. There are no
protected status, roam, The Company has
plantations located in forest areas,
conducted a thorough study with relevant
Until the end of 2023, the Company ensures that no Stakeholders and implemented several
land management activities are carried aut below recommendations in 2023, including the
ground level, and that no part of the operational area development of artificial wildlife bridge.
PT Charms Satya Nusanters Tbk | Sustainability Report 2025
Page 76
To conserve Indonesia's forests and biodiversity,
DSNG is committed ta protecting forests by é&
designating High Carbon Stock (HCS) and High
Conservation Value (HCV) areas within its
The Company ensures that
concessions, as well. as mobilizing resources to no land management
protect and restore HCV and HCS areas. The activities are carried out
Company is committed ta implementing the below ground level, and
principles of RSPO, ISPO, and the International that no part of the
Finance Corporation Performance Standard (IFC PS)
operational area is
on biodiversity and sustainable management of
considered as protected
living natural resources (PS 6). This ensures
forest area, according to
responsible land use by maintaining environmental
equilibrium, through the implementation of best both national and global
plantation oractices and conservation practices, and regulations.
by mitigating the impact of operations on
biodiversity in a sustainable manner. [GR 304]
Prior to any new development, the Company is ag 112,673 ha
obligated to conduct RSPO's New Planting
Procedure (NPP). The aim of implementing the
F ai The Company's total
operational area (2023).
RSPO's NPP procedures is to ensure that a Land
Use Change Analysis (LUCA) process is followed to
mitigate the adverse impacts of our operations on ~ 17,393 ha
the environment and surrounding communities
The conservation area
and ta set aside conservation areas with high
Gael managed by the Company
biological, ecological, social, or culturally values
(2023), includes conservation
that are considered significant or very important to
forests inside and outside the
be preserved. The Company's construction
concession area.
activities must also not have an adverse and
significant impact on the biodiversity around the
construction site. [GRI 304-2} . » 15.44 %
eA Conservation area of the
MANAGEMENT OF CONSERVATION AREA
Company’‘s total oil palm
By the end of 2023, the Company has managed a plantation area.
conservation area of 17,393 ha (covering conservation
forests inside: and outside of the concession area}, the
conservation area is 15.44% of the Company's total oil
palm plantation area.
These conservation areas are scattered in several (OCCA) which is the fulfillment of Environmental
locations managed by Subsidiaries, Restoration and Return {ER} from the Company's commitment to LPP
Conservation Program (RaCP) areas—as the &Green, and is based also on an agreement between
Company's commitment to RSPO certification the Company and customary institutions / local
requirements and Off Concession Conservation Area governments around the operational area, [GR! 304-3)
[SS
rt 2023
Page 77
The Company has two Community-Based Forest The Company has also developed a Landscape
Conservation Programs that are part of the RSPO Protection Plan (LPP). We have aligned these plans
Remediation and Compensation Procedure (RaCP} and incorporated them into the Company's roadmap
scheme. The first program has been implemented to ensure the product quality and the sustainable
since January 2021 in Manjau Hamiet, Laman Satong production practices. This LPP is implemented
Village, Ketapang Regency, West Kalimantan, with an through long-term environmental and social return
area of 156.24 ha (from the total area of Laman Satong activities consisting of
Village Forest 1,070 ha}, through a ‘hectare to dollar’
Forest protection (ER 1)
mechanism to meet the compensation obligation of
the PT DAN, PT DWT, and PT DIL concessions, The Sustainable intensification of
budget allocation for this program is around IDR 55 productive land (ER 2)
billion for a project duration of 10 years. Meanwhile,
the second program has been running since January Forest restoration (ER 3)
2023 through a ‘hectare to hectare’ mechanism in
Social inclusion (Si)
Lemmianis Village Forest, Sepakat Jaya Village,
Ketapang Regency, West Kalimantan. This second In accordance with DSNG's commitment to &Green,
compensation program is designed to meet the the implementation of the LPP will start in seven
compensation obligation of the PT BPN, PT BAS, PT plantation areas in East Kalimantan with
PWP, PT AAN, and PT MNS concessions with a liability environmental return targets. and achievements as
area of 5,36) ha (from the total area of Lermmanis described in the table below:
Forest 6,967 ha}. Under this programme, DSNG is
committed to funding LPHD Lemmanis’ activities to
conserve the forest and improve the welfare of the
community living around the forest for 25 years,
ENVIRONMENTAL RETURN THROUGH LPP
FOREST CONSERVED LAND SUSTAINABLY FOREST RESTORED SMALLHOLDERS
DESCRIPTION (ERT) INTENSIFIED (ER2) {ER3) BENEFITING {S!)
ha he he Farmers
Targeted achievements until 2030 >7,550 *BS,750 no >6,025
Realization in 2023 4 OBA 7aN9 Os 13,697
Realization in 2022 722) 77,208 86 3597
Realization in 2021 S97 BO282 n4 7,859
OFF-CONCESSION CONSERVATION AREA
(OCCA) PROGRAM
[POIJKST F,10}
Under the oan commitment facilitated by &Green as
part of DSNG's Environmental Return (ER), the
Company has designated a forest area of 3148 ha in
Karangan Dalam Village as the implementation site for The OCCA Program was designed by DSNG to
the OCCA program. Further, the Company is also prioritize the conservation of biodiversity
collaborating with communities, government, and and ecosystem service, local economic
customary institutions to protect other forest areas empowerment, and capacity building for
outside the concession to support conservation local forest management institutions.
initiatives undertaken by community and customary Through multi-stakeholder collaborations,
institutions. These include Bukit Pendulangan (436 ha) the program also aims to strengthen the
and Bukit Buiao (1,350 ha) Central Kalimantan, Bukit implementation of NDPE policies that apply
Tempurung West Kalimantan (147.49 ha), and Rimba throughout DSNG's supply chain.
Bris West Kalimantan (10.5 ha).
PT Dharmas Satya Nusantara Tbk | Sustainability Repart 20235
Page 78
In implementing the OCCA pragram in Karangan BIODIVERSITY CONSERVATION EFFORTS
Dalam, DSNG is collaborating with the United
A key focus of our forest protection and management
States Agency for International Development
policy is the comprehensive monitoring and
Sustainability Environmental Governance Across
protection of biodiversity and the implementation of
Region (USAID SEGAR), particularly in collecting
an integrated landscape approach to the:conservation
baseline data on biodiversity and socio-economic
of key species. This holistic perspective baiances
conditions.of the community, building the capacity
ecological, social, and economic factors, promoting
of the Karangan Dalam Village Forest Management
sustainable development and harmonious
Agency (LPHD), and conducting joint monitoring
relationships with surrounding communities.
and evaluation conducted every six months. In
2023, USAID SEGAR and LPHD Karangan Dalam
collected baseline data and engaged with
government and community stakeholders,
>
ae
KEY ACHIEVEMENT IN 2023
© ORANGUTAN
CONSERVATION ACTION bi
STRATEGY STUDY (SRAK-OU) [aaa
Image captured by our camera trap
As a continuation of the previous Orangutan The construction of artificial wildlife bridge as one of
Conservation Action Strategy Study (SRAK-OU) the anticipatory actions from cases of human-wildlife
conducted by Ecositrop, a Biodiversity and Ecology conflict was carried out by the Human-Wildlife
Conservation Study Center in Samarinda, East Conflict Management Task Force (Satqgas) in the
Kalimantan, to establish wildlife corridors, in 2023, Bengalon and Karangan landscapes, established by
the Company built two of the planned three the Company throuch two subsidiaries in
wildlife bridges equipped with camera traps to collaboration with the East Kalimantan Natural
monitor wildlife movements. Resource Conservation Agency (BKSDA),
To date, the bridges are frequently used by long- By the end of 2023, 40 people had joined the Task
tailed monkeys and squirrels, No orangutans have Force at PT BPN and PT BAS, The Company regularly
been observed crossing the bridaes, This is trains the task force and also actively raises awareness
normal, as experts say, it takes at least a year for of conservation and wildlife protection among all
orangutans to adapt and eventually use the employees and non-employees living in the
corridor comfortably. plantation area. This; the Company minimize its
impacts on wildlife and their habitats.
Wildlife bridge 1-35 m Wildlife bridge 1] ~ 23 m
PT Dharma Satya Nusantars Tok | Sustainability Repart 2023 71
Page 79
MONITORING OF PROTECTED The Company regularly
AND CONSERVED HABITAT,
monitors the IUCN red list
FLORA AND FAUNA
protected wildlife species
Ta manitor the effectiveness of biodiversity in the operational area
conservation, the Company routinely and consistently of DSNG.
documents monitoring data of wildlife species
through the Spatial Monitoring and Reporting Tool
iSMART) Patrol Application in all the Company's
concession areas. The Company also develops this
application for K3L work monitoring, [Gri 304-2)
The Company also socializes and provides training
on the application of the SMART Patrol to
community groups forest guard (Petkuq Mehuey
Group in East Kalimantan) to achieve the LPP
target of ensuring that the concession area’s
conservation forests and the surrounding landscape
are Well maintained, Socialization of biodiversity was
also conducted with communities of Bukit Bulou
(Central Kalimantan), as well as Bukit Tempurung
and Rimba Briss {West Kalimantan)
In addition, the Company requiarly monitors the IUCN
red list protected wildlife species in the operational
area of OSNG. The Company has installed 10 camera
traps for 1 to 3 months on identified wildlife home
ranges within our HCV areas to monitor wildlife
activities.. The installed cameras have captured
images of various species of birds, mammals, and
reptiles, reflecting the diversity of wildlife in our
conservation area. |GRI 504-4)
@ See photos and details @ Complete information
of camera trap results related to the SMART Patrol THIS LINK
on our website application can be seen at
NUMBER OF PROTECTED SPECIES IN IUCN RED LIST [GAl 204-4]
CONSERVATION STATUS
Critically Endangered
(CR) Endangered [EN) Near Threatened (NT) Least Concer (LC)
4 82
PT Gharrria Satya Nusantare Tok Sustainability Roport 20735
Page 80
Palm Rejuvenation and
Integrated Pest Control
[GRI 2-25, 304-2}
To maintain product quality, the Company ensures bush rats, fire caterpillars, and Oryctes rhinoceros.
that no Genetically Modified Organisms (GMOs) are Integrated pest management utilizes natural enemies
used in palm oil pianting. The Company uses to control pests that damage the palm ail plantation,
certified seeds, such as PPKS Socfin, Lonsum,
In line with RSPO 2018 indicator 7.2.5 P&C, the
Damimas, and Sriwijaya. This commitment is realized
Company does not allow the use of paraguat and
through strategic investments in the provision of
other pesticides classified as Class 1A or 1B by the
superior seeds that are resistant to pests and
World Health Organization or those listed by the
diseases, This collaboration is carried out with
Stockhalrm or Rotterdam Conventions, except in
Verdant Bioscience Pte Ltd (Verdant), one of the
extraordinary circumstances. DSNG recognizes that
leading companies in palm ail tissue culture, through
the use of pesticides to control pests is nota
its subsidiary PT Agro Pratama,
sustainable solution and reqularly shares the best
In all Our palm oll plantations, the Company practices with its supply chain, including independent
implements integrated pest management to ensure palm oil farmers. [GR 304-2}
that the palm oil plantation is free frorn pests such as
KEY ACHIEVEMENT IN 2023
THE REPLANTING
PROCESS
On March 3, 2023, the Company planted the first oil
palm seedlinas to mark the beginning of the
plantation replanting effort: This first replanting was
carried out in an area of SOO ha within the PT SWA
block, Muara Wahau.
After clearing, land conditioning increases the organic
The replanting process involves preparing seedlings in matter content of the soil. It improves soil physical
the nursery, uprooting palm trees, chopping palm conditions such as soil aeration and optimal soil
trees, and removing palm roots, The tree and root moisture by planting ground cover legumes and
fragments are then returned to the field as 4 natural creating protectian zones and waterways in the
fertilizer to maintain soil nutrient levels in the soll and planting area. Sufficiently aged seedlings are planted
biomass balance in the planting block, in the replanting area in stages until the end of 2023.
PT Dharmas Satya Nusantars Tok | Sustainability Report 2023
Page 81
frees den
has ensuredrtpthat eeee
none of Environmental
| and Awards |
Compliance
its palm oil mills (POM)
have received a Red and Awards
PROPER rating.
The Company is committed .to responsible
environmental management and minimizing the
negative impacts of its operations. Ta achieve this,
the Company ensures that all of its business units
and subsidiaries comply with government
yr eK regulations, including PROPER, as required by Law
(UU) No. 23 of 1997 on Environmental
Management. PROPER is a government policy
designed to improve the enviranmental
management performance of companies in
accordance with existing laws and requlations.
As of 2023, the Company has ensured that none
of its palm.ail mills (POM) have received a Red
PROPER rating, indicating that the Company's
environmental Management practices are in
compliance with the applicable regulations, The
Company remains committed to upholding. its
environmental management standards and
= complying with all relevant regulations to
minimize its environmental! impact.
The Company conducts annual audits for
PALM OIL MILLS
RSPO, ISPO, and Supply Chain Certification
System (SCCS) certifications, covering both the
Palm Oil Mill (POM) and Kernel Crushing Plant
PROPER RATING IIN 2023 (KCP), The objective of these audits isto ensure
compliance with national and international
NATIONAL PROVINCE production standards that are environmentally
friendly and sustainable palm oil management.
@ 1,2,3,4,5, 6, 7, @ 1, 2,3, 4,6, 7,9,10 Read more about information on environmental
3,10 12 certification and certification audit
implementation in 2023 in the Appendix,
PROPER RATING PROPER RATING
During the reporting period, there were no
@ Blue @ Green exceptional circumstances or public
complaints relating to pollution from the POM
@ Blue chimneys. As a result, the Company has no
reports of significant impacts on
biodiversity in the surrounding areas. The
& Company remains committed to complying
with all relevant regulations and to continually
Read more about information on improve its environmental management
environmental certification and practices to minimize any negative impacts on
certification audit the environment.
implementation in 2023 in
PT Dharma Satya Nusantara Tbk | Sustainability Repart 20235 74
Page 82
The Company has:also established an Emergency
Expenses from
Response Task Force (TKTD) Division in each of its
subsidiaries’ plantations. The TKTD Division is
Environmental Activities [PO3KS) F.4]
responsible for monitoring any fire that may occur in
and around the company’s operating areas. The
In 2023, the Company incurred approximately
Rpi1.8 billion on its environmental and conservation Company uses the Visible Infrared Imaging
activities. In particular, some of its expenditure was on
Radiometer Suite (VIIRS) satellite and the National
the following activities: Oceanic and Atmospheric Administration (NOAA) to
assist the Company in monitoring and identifying the
Environmental Parameter Quality Monitoring hot spots, Any detected hot spots will be followed up
HCV Area Management by field verification and if necessary, the fire will be
extinguished by the fire team at our location, The
Orangutan Conservation
Company then evaluates the fire report to determine
Wildlife Artificial Corridor the cause of the fire, the effectiveness of fire
Procurement and Training of SMART Patrol management and systems/procedures, and the
Application for Biodiversity Monitoring and HSE rehabilitation of burned areas.
Inspection
Hazardous Waste Management
Study on Utilisation of Boiler Ash for Lightweight
Brick and Paving Block
Contest of Clean. and Healthy Residential
Wildlife Conflict Control
SHE Socialisation to the Community In 2023, the Company detected
Procurement of Seedlings for Restoration 176 hot spots in the Company's
plantation areas and 158 hot
Environmenta! Management certification
training spots within its plasma
plantation areas.
Forest and jand fire control certification training
Procurement of Traffic Signs
All hot spots were processed for verification
and where necessary extinguished. A large
proportion of the hot spots were caused by
Fire Prevention
smaiti-scale farmers and local communities
who continue to practice slash-and-burn
and Management Practices. Fire incidents are detected and
responded to through satellite and
In addition to the NDPE policy, the Company also
consistent ground monitoring.
applies a very strict no-fire policy prior to the
preparation or development of any land. The
Company uses mechanical methods to develop land,
and allows wood debris to decompose naturally,
returning its nutrition to the soil, reducing the need
for inorganic fertilizers, as well as reducing our
greenhouse gas emission footprint.
The Company mitigates fire risk thraugh sustainable
soil and water conservation practices. There Is still a
fire risk around the operational area due ta slash and
burn cultivation practices, Fire risks in the plantation
area can disrupt the palm oil growth and cause
property damage as well as threaten the safety of
employees and the surrounding community, The Full information on
Company has invested resources in community
the identified hot
spots can be found
outreach programs to raise awareness of the dangers
DSNG’s website
of forest and land fires, including through the Fire
Care Community Movement (GMPA) and the Fire Care
Farmers Group (KTPA),
PT Dharma Satya Nusantara Tbk | Sustainability Repart 20235
Page 83
10 Climate
Pillar
é6
Agricultural-based
businesses are
particularly
vulnerable to climate
change. Therefore,
the Company is
committed to
implementing
innovative strategies
to manage the
impacts of climate
change.
Page 84
Climate Change Mitigation
and Adaptation through
our Operation
DOSNG'S APPROACH TOWARD TCFD'S KEY PILLARS
Governance
The DSNG’s President Director and Chief
Sustainability Officer (CSO) oversee the
implementation of the Company's
sustainability policy, especially climate-related
issues, The Sustainability Advisory Board (SAB)
quides the Company’s sustainability strategies,
including climate-related risk management. At ™ Betas
SAB's quarterly meetings, the CSO updates the
beard on the relevant sustainability matters
and receives guidance from the Board
members on such matters as well as raises the In 2023, SAB held 4 (four)
attention to any contemporary or potential meetings to discuss:
issues. DSNG's Board of Directors receives
® Sustainability risks
regular reports regarding significant issues
and recommendations to be consistently ® Strategies and plans for adaptation and
reviewed to assist in preparing the Company's mitigation of climate change impacts
strategic performance, operational and
financial pians. ® DSNG transition toward flow carbon
economy
Agricultuiral-based businesses are particularly
vulnerable to climate change. Therefore, the
Company is committed to implementing
innovative strategies to manage the impacts
of climate change while consistently ‘Complete information
identifying and assessing critical risks through regarding DSNG's THIS LINK
CSO and SAB. ‘commitment to climate
change can be found on
Recommendations from the SAB, if necessary,
will be discussed with DSNG's Board of
Directors to be considered and approved
Strategy [GR 201-2]
In September 2021, DSNG collaborated with external parties to calculate greenhouse gas (GHG)
emissions and assess the climate-related risks, establish a baseline for the Company's climate action
plan based on 2019 emissions, snd identify key risks and opportunities from climate change to develop
coherent strategies and initiatives. Since 2019, the Company has determined GHG emissions
calculations every 3 (three) years
The GHG Emission Caiculation Study and Climate Risk Assessment play critical roles in mapping
DSNG's climate action strategy based on reliable data and a science-based approach that is integrated
into decision-making, business planning, and Operations in the future. In 2023, the Company updated
its GHG emission calculation baseline by implementing new guidelines for the agricultural sector
released by the Science-Based Target Initiative (SBTi) and the draft of GHG Protocol Land Sector and
Removals Guidance (LSRG). Several significant changes have occurred to ensure the calculation follows
8 universally accepted methodology,
PT Dharma Satya Nusantars Tbk | Sustainability Repart 2023 77
Page 85
Ke
Strategy (continuation)
DSNG identified numerous climate-related
risks, including Physical Risk Assessment,
Transition Risk, and Opportunities, consisting of
5 (five) physicat climate risks relevant to its
Several significant changes
business in Indonesia,
have occurred to ensure the
DSNG implements a holistic approach to calculation follows a universally
sustainability, integrating It into business accepted methodology. The
models and decision-making by considering critical updates from this
numerous climate-related scenarios,
recount are as follows:
including low-carbon scenarios. The Company
prepares strategic plans by considering
* Adopting IPCC 3,3.7 Calculations for
climate risks and integrating climate change
Land Use Change Emissions
adaptation and mitigation initiatives, namely
by implementing renewable energy to reduce ® S8TI requirements that requiate
dependence Gn fossil fuels. the split of Forest, Land, and
Agricuiture (FLAG) Emission
® The most recent emission factor
and the use of region-specific
emission factor
Risk Management
Through the Audit Committee, DSNG has
Metrics and Target
identified and initiated the mitigation of
environmental risks, including climate risks, The update of baseline data for DSNG's GHG
based on the GHG emission calculation emission calculations for scope's 1, 2, and 3 in
baseline and previously mentioned climate 2019 and calculations with 2022 data are
risk assessment. The Company has presented in the following tabie.
implemented an Environmental and Sociat
Management System (ESMS) following IFC-PS, Based on the update and the implementation
which includes the results of risk identification of the Climate Action Plan (adaptation and
and mitigation. The ESMS is applied to all mitigation} and emission reduction target per
aspects of DSNG's business, including its business unit, the Company revised its total
Strategic Business Units (SBUs), Climate GHG emission reduction target in scopes 1, 2.
change risk is one of the key risks identified by and 3 from 29% to 44% in 2030, This target
DSNG, Information on managing ESG risks takes inte account the Company's growth plan
within the ESMS can be found on pages 81. and technology implernentation, Based on
comprehensive calculations of scopes 1, 2, and
3, the scenario for reducing GHG emissions to
achieve these targets is presented in the
infographic on page 81.
PT Dharma Satya Nusantarea Tok | oe 1335
Page 86
DSNG'S 2019 AND 2022 GHG EMISSION DISCLOSURE
LEGEND 2019 ) 2022
[POIKS! F.1]
© Scope 1; Direct GHG Emissions © Scope 2: Indirect GHG emissions from
purchased heating electricity
i
1182568
-
33
8s
a3ag:z gé
6339 :
Sy4 fe 28 | BE =
m TW! on
“FS
we E Energi
PalmMOll eisoring WPPanet HO terparukan Ot! Palm Oil Bi ae WP Panel HO sr ncsoc Total
© Scope3: other indirect GHG emissions
A
3.532.742
!
a
ea
» Outside of scope » Emission due to land use change (LUC)
of Paim Oil Business Unit in tCOze
fo
ia
286.120.
Palm Oil Palm Oil
According to the draft Forest, Land, and Agriculture (FLAG) Science-Based Target Setting guidance, companies must keep FLAG and non-FLAG
targets and accounting separate. Moreaver, companies must report removals and emussions separately for baseline and annuat emissions
accounting. Therefore, the Company will prepare an emission calculation that is adjusted to the upcoming GHC Protocol Land Sector and
Removals Guidance.
PT Dharma Satya Nusantars Tbk | Sustainability Repart 2023.
Page 87
Sd
GHG Emissions Inventory LEGEND 2019 2022
by Scope «tco.e)
3,500K —
3,532,742
3,000K —
3,049,804
2,500K —
2,322,691
2,000K —
1,657,293 1,204,778
500K =
1,362,464
1,182,568 PURCHASED GOODS &
SERVICES
000K =
816,969
500K = PROCESSING OF SOLD
PRODUCTS
816,956 671,669
OK =
SCOPE 1 SCOPE 2 SCOPE 3 TOTAL
PT Dharma Satya Nusantera Tok | Sustainability Report 2023 8a
Page 88
LEGEND
Norm-FLAG Emissions Reduction Initiative
FLAG Emission reduction Initiative
(1) Cross-cutting (Mitigation & Adaptation)
Emissions Reduction Plan Scenarios and B Baseline emission
Adaptation to Climate Change Impacts
emission reduction
=~ Columni
G 5.000 — _——
ra}
UD
Ef
4000 —
3.000 =
2.000 =
1.000 —
0) _
BASELINE 2019 BASELINE 2019 PROSPECTED BIOGAS SUSTAINABLE DISCOUNTING NDPE & GREEN ENERGY WASTE FERTILIZER SUSTAINABLE MATERIAL ELECTRIFICATION, RESIDUAL
UPDATED WITH 2030 2030 EMISSION CAPTURE BUYER LAND USE PROCUREMENT EFFICIENCY MANAGEMENT MANAGEMENT SOURCING AND EFFICIENCY EFFICIENCY, AND EMISSIONS
BUSINESS PARTNERSHIP CHANGE (LUC) PRODUCTS OTHER RENEWABLE
ENERGIES
. EMISSION REDUCTION CAP WOOD EMISSION REDUCTION CLIMATE ADAPTATION
CAP PALM OIL
PRODUCT
B tcozehcPo 4 ENERGY SECURITY TA RESPONSIBLE PRODUCTION GF WATER MANAGEMENT
. tCO;e/m? 4 ENERGY SECURITY
6,0 es :
Meth Biomass, Biogas and ic j
— SoS Bio-CNG fueled Sine rhetcrecal Mechanization & Preventive 6,0 Water Conservation
40 2 Capture i Fertilizer& Farming & Smart ae PLTs Certified
: v Electricity & Automatization Maintenance 40 Ener ertities Electrical
Plants Tianeportatlona Herbicide Conservation thot Renewable Renewable
2,0 Efficiency Forklift
20 S 6 Energy Energy SUSTAINABLE VALUE
2019
CLIMATE ADAPTATION
2030 <
Se sienna
ee . cuutainat
0
Weresciants
o ee | Sse Conmrucsion Preece
vii z coer areata Improved Waste Sette ~~ SUSTAINABLE _. RESPONSIBLE “WASTE
Fi OPPORTUNITY — <n aay cea Management ayer 3 VALUE CHAIN PRODUCTION MANAGEMENT
FFB Suppliers Supply Partnership @ tco.eim?
- OPTIMIZATION afl SUSTAINABLE VALUE
6,0 To Increase PY - CHAIN
intensification, pera, Sustainable Forest Wood
‘Continuous replanting: & PHYSICAL RISK 40 Management eft Waste
Sustainable Refinery through EM SIOTISr. Reduction, Sustainable Digital
oe :
(f SMART CLIMATE AGRICULTURE 2.0 o } Comtitieation SENG, Sitropact Technology
— eee, ee Reduce Reduce Reuse, and Investing
i .
collaboration with community Ginsster Mapoine, . 0 — a oo glue ‘Coating Recycle
Siisteinability @: Pollinating insects & Simulation, Monitoring. & Water & a Werklog Facilities NDPE lose Loss Sine Sanwce ) (WetScrubber
STE ; Predators Management : Conservation Adjustment WP PANEL \ \
Impact Financing Construction Ensineerina
PT Dharma Satya Nusantara Tok | Sustainability Report 2023 sI
Page 89
IDENTIFIED PHYSICAL RISKS FROM CLIMATE CHANGE WITH FINANCIAL IMPLICATIONS
[GRI 201-2]
oO AVAILABILITY OF WATER
Estimated Estimated Cost
Key Impacts Time Frame Mitigation Measures of Measures or
for Action (years) Impacts
Inctesse efficiency of plant process &
Lack of water availability Marsa ccs USD
for operations, employed increase awareness through sunt
housing, and surrounding 2 Years socialization of efficient water use 0.5 million
Romimunities Increase water recycling inall per plant/mill
processes that use water
Waban eeeiciey cae Improve soll moisture conservation USD1 h d
: through cover biological crops.and 00 thousan
plants to suess and reduce ie : per estate
palm oll yields 3 Yea rs
Invest In various types of irtigation that USD 50 thousand
are technically feasible Her site for Land
, = Application
Qo RIVER FLOODS AND RAIN INTENSITY
Estimated Estimated Cost
Key Impacts Time Frame Mitigation Measures of Measures or
for Action (years) Impacts
Risk of extreme rainfall
resulting in river overflow
causing operational
disruption Improve water management in USD 15
flood prone areas. install & bulid ecu
» Soil nutrients drifted away 2 Yea rs water bunds and purnps to control & million per
frarn plants potentially IERARe EXGeaS Water estate
causing nutrient depletion
Transportation process
disrupted
staingaliyy Report Ones
“
Page 90
@ EXTREME HEAT
Estimated Estimated Cost
Key Impacts Time Frame Mitigation Measures of Measures or
for Action (years) Impacts
» Drastic tise in ait
temperatures, potentially
Less than
» Increase engagement with
causing land degradation,
SUTFOUNCING CoMMUNITGS On
USD 10
wildfires, reducing ground
fire prevention thousand
water and stunting plant
growth per estate
3 Years
Adverse impact on insect Potentially need to consider
pollinatian and plant-yields alternative forms af pollination Less than
USD 50
Provide awaieness to employee heat thousand
exhaustion, provide extra clothing
Employee heat exhaustion
per estate
affecting their productivity protection, adapt working hours and
supplement with liquid nourishment
hi LAND SLIDES
Estimated Estimated Cost
Key Impacts Time Frame Mitigation Measures of Measures or
for Action (years) Impacts
Land movement due te
topography, extreme rainfall
Improve cover crop coverage
beyond the carrying
capacity of the solls USD5
3 Years million
Avoid future planting oncertain
Disrupting operations and topographies
per estate
potentially reducing plant
yields
Improve road and infrastructure
within operational sites
@ WINDS / CYCLONES
Estimated Estimated Cost
Key Impacts Time Frame Mitigation Measures of Measures or
for Action (years) impacts
Strong wind Lat occurs for
» Plant wind barriers on operational sites
hours of days, potentially Less than
hampering plant growth
and causing operatianal 5 Years USD 50
Implement/update HSE regulations and
disruptions thousand
procedures for work during adverse storms
per estate
Note: These estimates of time frame and costs are based on future cost estimates that cart be expected to bo
reduced of inflated depending an each estate conditions and specifications of the time of implementation.
PT Dharma Satya Nusantara Tok | Sustsinability Report 20235
Page 91
THE COMPANY'S TRANSITIONAL RISK BASED ON CLIMATE RISK ASSESSMENT
Restrictions on land Wse land
Calculate internal carbon price
based on current regulations
Policies that contribute ta Carbon tax
POLICY AND climate change
Establish a climate strategy in
Ban on impart of products
LEGAL group scale
associated with deforestation
@
Improved technology that
Low-carbon technology
SUDDOITS lower Carbon and more Build the 2nd Bio-CNG Plant for
efficient economy renewabie energy
Renevable energy utilization
TECHNOLOGY
Shifts in supply and demand Tor
Sustainability investment Towards 100% RSPO
certain commodities. products and
Certification
services when nsks and
Product-related demand of
opportunities are associated with
MARKET climate risks
sustainable palm of} products Looking for green Investments
Monitoring from stakeholders Conduct disclosure reporting
Public perception of company’s
on environmental and through Sustainability Report
contribution to climate change
sustainability issues 2022 anc TCFD
REPUTATION
GHG Emissions Footprint
GHG EMISSIONS 2023 USING THE PALMGHG CALCULATOR METHOD
In 2023, DSNG calculated the GHG emissions using the PalmGHG Calculator method approved by RSPO. DSNG
generated 62,785 tCO,e emissions, a1% rise from the previous year. Meanwhile, there was a significant emission
reduction in paim oil mill operations due to the operation of two Methane Capture and Bio-CNG Plant, which
reduced emissions from Palm Oijf Mill Effluent (POME), DSNG also replaced fossil fuels with Biogas for electricity
generation, transport trucks, and equipment to reduce amissions, In 2023, the GHG emission intensity was
calculated using the PalmGHG Calculator method approved by RSPO
GHG EMISSION VOLUME OF PALM OIL BUSINESS UNIT
VOLUME (tCO,0)
SOURCES OF EMISSION
2021" 2022 2023°*
Palm Oil Mill (POM) 42,24) ABABA 37.200
Fertilizer W739 14,513 20,486
FFB Transportation 4,07 4189 4,500
Total Emissions 63,992 62,136 62,785
* The coiculotion wos besed on the PalmGHG Calculator fromm RSPO, including POM 1 2, 5. 4, and 6,
** The POMs being calculated were POM ?, 2,3. 4, and & along with FFB supply estates,
*** The calculation was based on the PalmGHG Calculator from SPQ, including POM 1, 2,3, 4, 6, Zand I,
PT Dharma Satya Nusantars Tbk | Sustainability Repart 2023 BS
Page 92
GHO EMISSION INTENSITY
[ORs 305-6]
SOURCE OF ENERGY UNITC 2021" qm 2023
Patm Off Mill (POM) 1GQneston CPO 065 O75 050
Fertilizer tCO;e/na O78 O75 O75
FFB Transportation CD, e/ton TBS 0.0039 o,o038 0.0036
* Tho catculation wer basedGv the PoltnCHG Calcutotor frern ASPO, including POM
** The POMs being calculated were POM tL 2. 5 4. and 6 along with FFB supply estates.
GHG Emissions Reduction [POIKSI FA2[GRI 306-5}
During 2023, OSNG reduced emissions by 0.25 tCO;¢/
ton CPO at its palm oil mill, with total fertilizer usage
amounting to 0.02 tCOze/ha: The emission reduction
is a manifestation of DSNG's success in shifting
0.25 cccrroncse
operations to use environmentally friendly renewabie
energy sources, Complete information relating to
DSNG reduction activities/ innovations in line with
The emission intensity at the
internal preparation studies on climate action is
successful reduced palm oll
available on page 81. factory DSNG (2023).
Moreover, the Campany actively promotes the
supplementation of its fertilization program by
utilising in situ organic materials to maintain moisture
and improve soil structure. All organic fertilizers used
in the plantations are local materials, such as empty
0.02 o-
The amount of successful
fruit bunches, POME, and solid waste, Therefore, this reduction in fertilizer
supplementary fertilization also reduces potential usage by DSNC (2025).
carbon and GHG emissions from depending entirely
on inorganic fertilizers. In addition to reducing
emissions, the reutilization of organic biomass is
proven to maintain and improve soil fertility, especially The POME applied:came from the fast batch with a
in marginal soils, In addition, the Company regularly BOD of «5,000 at a dase of 750-1,250. tons per ha per
conducts socialization of the same to our supply chain year,
regarding best practices in land management, land
Solid waste is applied in the silt pit at a dosage of
application, mulching, and mud pits,
100 kq per rod.
Some of the efforts of the Company in managing
Other tocal organic materials, such as fronds and
organic materials in our palm oil estates:
bunches of dried male flowers, are used accarding
The recommended dose of empty fruit bunches is to the procedure while maintaining sanitation and
40 tons/ha per year. regularly pruning the tronds.
Page 93
CARBON FOOTPRINT AND CLIMATE
ACTION INITIATIVES
The Company practices environmentally friendly
The Company does not use
operations by utilizing sustainable materials to reduce refrigeration/freezing
its carbon footprint, The Company has adopted the machines that utilize ozone-
reuse of some materials ss operational raw materials, depleting substances (ODS)
which include: such as chlorofluorocarbons
Implement the recycling principle in the wood (CFCs) and
flooring rental program for customers, This hydrochlorofluorocarbons.
program aims to conserve natural resources by (HCFCs) in the operational
reducing the need for new wood sources and process; therefore, the
saving energy. The recycled wood flooring will Company doesn’t measure
be refurbished and resized to be used in the
ODS emissions.
production of other wood products, such as
furniture
Process wood chips from wood products factories
into pellets and then marketed as biofuel. The AIR QUALITY MONITORING
biofuel has been tested to have a Gross Calorific
The Company also routinely conducts air quality
Value of approximately 4,400 Keal per Kg using the
ASTM D 5865 -13 test method measurements from mill operations and wood
product mills to control emissions, Emissions
Use POME as the raw material for the Bio-CNG
monitored include NOx, SOx, particulates, opacity,
plant in producing electricity to support the mill
hydrogen chloride, chlorine gas, ammonia, and
operations and the employees’ houses
hydrogen chloride, The Company conducts
Use sludge from POME and empty fruit bunches as measurements using methods that refer to the
material for mulching and natural fertilizers Minister of Environment Regulation No.07 of 2007
Use sheils and fibers as the fuel material of the concerning Emission Quality Standards for Non-
boilers and also exported as biomass fuel Mobile Sources for Steam Boilers. The Company does
not use refrigeration/freezing machines that utilize
Utilize natural pest control, such as Tyto alba,
ozone-depleting substances (ODS) such as
multinucleon polyhydro virus {(MNPVj, Cordyceps
chlorofiuorocarbons (CFCs) and
militaris fungus and Trichoderma sp, fungus, In
hydrochiorofluorocarbons (HCFCs} in the operational
addition, Turnera sp. is on the Indonesian
process; therefore, the Company doesn't measure
government's invasive species list
ODS emissions. [CR 305-6]
Reapoply felled and chopped palm biomass for soil
nutrient enrichment in the replanting area
MEASUREMENT RESULTS OF AIR EMISSION QUALITY OF WOOD-PANEL PLANT [GA| 305-7]
HIGHEST MEASUREMENT RESULTS
PARAMETERS STANDARD QUALITY
2021
————$
met >
Nitrogen Dioxide (NOs) 1,006 ya/Nm?* 733 94 1o7
Sulfur Dioxide (SO,} 800 UG/Nm 138 224 Ma
Particulate 350 mg/Nimv 3.8 2.0 26
Hydrogen Chloride (HCI) Sma/ Nr <3,.73 “373 <3.73
Cnlorine Gas (Cl,) 10 mq/ Nr «0.067 <0.067 «0.067
Ammonia (NH) OS mai Nr 0.007 0,084 0.06
Hydrogen Fluoride (HF) }Oomg/Neo? 182 “0.05 “0.05
Opacity Rio! <20 <20 «20
PT Dharma Satya Nusantara Tok: | Sustainability Report 2023
Page 94
MEASUREMENT RESULTS OF AIR EMISSION QUALITY OF WOOD-FLOORING PLANT
[CRI 305-7]
HIGHEST MEASUREMENT RESULTS
STANDARD
PARAMETERS SEMESTER I* SEMESTER 2°
QUALITY
POINT] POINT2 POINTS POINTS POINT] POINT2 POINT4 POINTS
Nitrogen Dioxide (NO) 1.000 porn 170.27 154.78 202.82 23615 184 33 16237 20837
Sulfur Dioxide (SO,} 800 pa/Nr? 132,88 152,59 164.54 165.71 141.69 138,25 154.26
Particulate 350 mag/Nm* 1453 135.92 241.65 192.63 180.29 142.83 184.93
Hydrogen Chloride (HCI) Sma/ Nr “05 “05 “0.5 “0.5 =0.5 =0.5 H =05
Chiorine Gas (Cly) 1O mg! Nm 0.003 0.0028 OCO3s2 0,0036 0.0058 0.0047
g
¢ 0.0028
4
Ammonia (NHa2} O5ma/ Noe «O12 <O|2 <O <Or 0.12 “0.12 ~ “0.12
Hydrogen Fluoride (HF} 10 mg/Nm* <1.37 <1.37 <1:37 <1:37 137 <137 1.37
Opacity 3% 25% 25% 30% 25% 25% 25%
* Points represent measurement position at the chimney
MEASUREMENT RESULTS OF AIR EMISSION QUALITY OF PALM OIL PRODUCT (FIBER AND SHELL)
[GRI 205-7]
HIGHEST MEASUREMENT RESULTS
STANDARD 2022 2023
PARAMETERS
QUALITY
BOILER? SOLER! BOKER] SOILERN BOILER) BOILERI SOLER} SOILER 1)
Nitrogen Dioxide (NO,) L000 pa/Nm* Wa2? 154.78 202.82 23615 49.47 T3524 145 146
Sulfur Dioxide (S02) 800 pg/Nm* - - 407.40 221.70 28.57 526 12 g
Particulate 350 mg/Nin’ - - 88,90 FB44 1237 1237 13.06 3.08
Hydrogen Chloride (HC!) 5 ma/ Nm . . <0) <01 O10 o.10 0.10 0.10
Chiorine Gas (Cly} 10 -mg/ Ne - - <j <j 1 1 1 1
Ammonia (NM) G5 mg/ Nee - - <0.0) <0.0) 0.0) 0.0) 0,0) 0.0)
Hydrogen Fluoride (HF) 10 mg/Nm?* - : <0) <0) 0.0) 0,0) 0,0) 0,0)
Opacity 20% - - 25 23 24 20 24 26
bility Report 2025
,
—
Page 95
b6
In addition to air emission quality measurement, the Throughout 2023,
Company also seeks efforts to control the air quality DSNG consumed
through:
7,787,445 GJ of energy.
A dust collector was Installed to filter the exhaust
gases from the boiler.
Reduction in the use of fossil fuels (diesel) by using
biogas resulted from processing liquid waste
methane gas (POME) from POM Into Bio-CNG.
Tree planting programs in degraded and riparian
areas of the river
Regular monitoring of air quality (emissions,
ambient air) by accredited laboratories.
ENERGY MANAGEMENT AND EFFICIENCY
[POIKST F.6, F,7]
Throughout 2023, DSNG consumed 7,787,445 G) of In addition, our Bio-CNG Plant produced 6,727,970 kWh
energy. This was calculated based on the energy of biomethane, equivalent to 24,221 GJ. Biomethane
consumed for transporting raw materials and production was used for kernel-crushing plant
production processes within the palm oil and wood operations, and some biomethane in the form of
products business units and Head Office. The compressed gas (CNG) was distributed for our
calculation of energy consumption is obtained employees' domestic electricity use, Our second Bio-
from the volume of fuel usage {shell and fiber, CNG plant is built with twice the capacity of the
diesel oil, Bio~CNG) and electricity converted into previous plant and is targeted to produce 8,854,560
energy units: GiaaJoule (GJ) is based on British kWh of biomethane, equivalent to 31,876 GJ, In addition
Petroleum Conversion Factors. The Company to the operational needs of the plant and employee
expects to increase the use of renewable energy housing, the biogas from this plant will also be used for
across all of its operations, [ORI 302-1] transportation.energy for FFB and CPO trucks. [ari 302-5}
ENERGY CONSUMPTION BY SOURCE
ENERGY SOURCE UNIT 2021 2022" 2023
Kernel Shells and Fiber 6,497,538 B,050,30) 7,532,531
Diesel ail (POM) 48,279 67.524 54,577
Bio-CNG Piant 26,880 22732 2,9n
- . Giga Joule
Biogas Engine 15523 20,700 37.024
Electricity from PLN (Head office and
217,910 N8\S86 132,942
Wood Panel Business Unit)
Jumiah
“ in 2022, there ore an additional of POMS
PT Dharma Satya Nugantars Tbk | Sustainability Report 2023
Page 96
THE COMPANY'S TOTAL ENERGY CONSUMPTION VOLUME
[GRI 302-1]
ENERCY SOURCE UNIT 2021 ; 2022" 1 2023
Head Office S32 123,195 134,980
Wood Products Business Unit (Pane!) 39,870 56,206 50,713
Wood Products Business Unit
Giga Joule 64.908 62.380 39,754
{Engineered Flooring) Bi
Paim Oil Business Unit 6,546.973 8.745.467 7569.95
Total -6,764.883 8,987,248 TI7BT445
* In 2022, there ore.an additonal of POMS.
ENERGY CONSUMPTION INTENSITY (EC!)
The Company calculates the energy consumption intensity as the enerqy usage ratio to the production volume of
each business unit, The ECI is calculated from the total energy consumption within the Company without
separating the energy sources used against the total product volume. [CRI 302-3)
INTENSITY OF ENERGY CONSUMPTION
[GRI 302-3]
isin ae ‘ Mes | wes
Head Office Glin? 33.55 36.53 40.03
Wood Products Business Unit (Panel) Gin? OAT 0,38 OS2
Wood Products Business Unit
‘ e Giim? 0.06 Ol 605
(Engineered Flooring)
Gi/ton TBS 277 286 2:53
Palm Oil Business Unit
Gi/tan CRO 2,03 7258 138
ENERGY CONSUMPTION EFFICIENCY [POIKS! F7|
Our eneray consumption levels in 2023 increased by These eneray-saving campaigns are disseminated
1,191,869 G) because of 2 new operating mills in 2022. through electronic posters, banners, and meetings.
The Company has coordinated efforts to streamline You can find comprehensive details on renewable
the energy use, including replacing fossil fuels with energy innovations on pages 86.
renewable energy sources: The Company calculates
DSN Wood Business' energy-saving efforts alsa
overall energy savings by using the difference
carried out several initiatives to reduce energy
between the actual amount of energy used with
demand in its factory operations, One of the
energy-saving programs and the estimated energy
Company's efforts is using three electric forklifts, the
used without. {GRi 302-4}
operation has saved 64 thousand liters of diesel and
Apart from utilizing renewable energy sources, the reduced 111 tCQse emissions. In adctition, DSN Panel
Company also undertakes several energy-saving is also actively making modifications related to
measures, such as promoting an energy-efficient machine on-off switches, ducting, installing
lifestyle and using energy-efficient equipment and Supervisory Control and Data Acquisition (SCADA}
light bulbs, among others. for energy efficiency,
PT Dharma Satya Nugantars Tbk | Sustainability Report 2023 B9
Page 97
RESPONSIBLE EFFLUENT . z
AND WASTE MANAGEMENT As a small but significant step
{POIKS! F.13, F.1A}(GR 30641, 306-4) to divert some of the office
Poorly managed waste piles can result in
waste at DSNG's head office in
environmenta! degradation. Therefore, the Company Jakarta, the Compa ny started
manages and treats waste and significant waste- a waste segregation initiative.
related impacts by diverting some waste from
landfills through a circularity approach. This approach
is carried out by reusing waste generated as much as
possible, so as to provide economic value and
minimise the damage that can be caused. The palm
oil business unit processes POME, a liquid waste from
the mill that contains organic solids and potentially to
generate methane gas, into biogas to drive turbines
to generate electricity. In 2023, a total of 126,496 L
POME was treated and converted Into Biogas,
eauivalent to 10,284,430 kWh.
AS a small but significant step to divert some of the
office Waste at DSNG's head office in Jakarta, the
Company started a waste segregation initiative.
Through this initiative, DSNG's head office has
reduced office waste disposed of in landfills by 49.3%
from a total of 7,553 kq of waste generated during
2023. The Company aims to reduce office waste
disposed of in landfills by 70% in 2030, following DKI
Jakarta Provincial government regulations,
TYPES, VOLUMES, AND MECHANISMS
OF SOLID WASTE MANAGEMENT
(GRtS06-2, 506-4]
PALM OIL BUSINESS UNIT
Empty fruits bunch 526,048 626,439 671,407
Reused as muich
and natural fertilizer
Shells and fibers 487,755 538,722 458,188
WOOD PRODUCT (WP) BUSINESS UNIT (m*)
Reused as Doiler
Wood Chips (WP ~ Panel) 72,820 10.889 792 fuel, processed into
wooden pallets, and
Wood Chi WP - Engineered exported a5 raw
. pal 735 12.820 6686 a "
Flooring) materials for other
wood products
PT Ohare Satya Nusantara Tbk | Sustainability Report 2025 90
Page 98
TYPES, VOLUMES, AND MECHANISMS OF EFFLUENT MANAGEMENT
IN PALM OIL AND WOOD PROOUCT BUSINESS UNITS
[GRI 303-2, 303-4]
WASTE TYPES 2021 2022" 2023 TREATMENT
PALM OlL BUSINESS
UNIT (m’*) aaed sie Hateiiel 4
oused as niaterial for
Bio-CNG plant
Anaerobic and aerobic
troatrnent of sewaae
ry
POME 229.987 2.128.900 920,424 peng?
Reuted as liquid
fertilizer and
hydration of palm oil
trees
* in 2G22 there are on aditional 2 Poin OW Milt
TYPES, VOLUMES, AND MECHANISMS OF HAZARDOUS WASTE MANAGEMENT
[ORI 306-2. S06-4]
WASTE TYPES 2021 2022 2023 TREATMENT
PALM OIL BUSINESS UNIT (m*)
Used lubricant/oll 62.39 6284 45,98
Former pesticide packaging, filters
. 26.25 24.87 25.74
used, contaminated cotton cloth
Total 88.64 e771 7152
Handed over to a
WCOD PRODUCT BUSINESS UNIT - PANEL (m7) licensed third party to
de transported to
Used lubricant/oll 2) 7 2s the processing site
Total 21 7 2s
WOOD PRODUCT SUSINESS UNIT - ENGINEERED FLOORING (n*}
Used tubricant/oll 618 18 os
Total 818 Le) O39
» Nusantanmn Tbk | Sustainabil ty Report 2025
Page 99
WASTE MANAGEMENT MECHANISM
[PO3KSI F114)
The Company has a wel
l-implemented waste
management mechanism
réeguiations. The Mana
following applicable The management of all
gement of all hazardous
waste is handed over to (83) hazardous (B3) waste
third Parties who have is
permits either ta destro handed over to third
y, recycte or make rec
overy
parties
efforts for potential con who have permits either
tamination at locations to
owned by stakeholders
Outside the Company's destroy, recycle or make
operational area, Each recovery efforts for pote
respective business unit
manages non-B3 waste, ntial
In addition to the utiliz contamination at loca
of waste presented on ation tions
page 90, the Campany
also owned by stakeholders
Manage s other non-B3 waste, whi
ch is reused in outside the Company's
plantations and factor
ies, The Company pro
Periodic reports on the vides 9perational area,
entire waste Manageme
and treatment process nt
to the authorities. In our
wood products busine
ss Unit, DSN Panel has
applied the 3R (reduce,
reuse, recycle} Principle
save water by reusing s to
blowdown Wastewater
the roof near the boiler to wet
to reduce heat and mit
fire risks in that area, iga te
WATER UTILIZATION
AND
MANAGEMENT OF EFF
LUE NT
The total water used dur
ing 2023 has decreased
2022 due to the use and from
regular maintenance of
machinery to improve pla
nt water efficiency by
implementing water-saving plant San
itatio
n
Measures, reusing and
recycling water from pla
Processing, and raising nt
awareness about water
In household water use. saving
The Company has not
measured water discha
rged based on the pur
disposal, therefore the pose of
Company is unable to
any information of wat disclose
er discharge and its imp
Management [ci sot-2. act
3C¥-4]
TOTAL VOLUME oF WAT
ER BY Source (M’)
=m
[POIKS? F.B)[GRI 303-3, 303-
5}
PALM OiL BUSINESS Unrr*
.- 2023
Surface water
4,526,586
3.519.298
Ground Water 3,747,759
NA
NA
Reservoir water (rainwat NA
er)**
NA
NA
Water from third parties NA
{clean water /
PAM company) NA
NA
NA
Sub Total Water Consumpti
on
4326586
3,91G.298
SPAT 7S0
PT Dharma Satya Nusant
ars Thk | Sustainability Repert
2023
2
Page 100
TOTAL VOLUME OF WATER BY SOURCE [M?) (Continuotian)
{[POIKS! F.B}[GR! $035, 303-5}
WATER SOURCE 2023
WOOD PRODUCT BUSINESS UNIT
Surface water NA NA NA
Ground Water 105,606 RS4t 24,495
Reservoir water (rainwater)** V7625 70s Hay?
Water from third parties 5,50! 5.676 §,462
Sub Total Water Consumption 48145 46.154
=—J ~ oe — = i. ; Fae,
* The primary
palm oil business unit uses water derived from surface water.
Reservoir water (rair wes netn ed in the reporting period,
WATER SOURCE CO-UTILIZATION
[GRI 303-1, 303-3, 303-5]
The rivers surrounding the Company's plantation Some of the conservation activities carried out by the
areas are natural waterways, The Company recognizes Company are:
the importance of responsible water management to
* Maintaining the shade and canopy of paim oil trees.
preserve limited resources owned and shared with
The layered leaf frond structure of palm oil trees
the community. The Company has obtained
permission from the local government to collect and can protect the soil from direct rainwater falls so
that the soil can absorb more water and reduce the
utilize water, However, the Company ensures that
surface water run-off.
each POM is invalved in maintaining that the
utilization of water resources by the Company and all ' Maintaining the root system of palm oil trees. The
subsidiaries does not affect the availability of fresh root of palm oi] trees can form natural biopores,
water for local communities, The Company also particularly near the bottom of the stem, thereby
periodically reports to the relevant authorities to increasing the ability to absorb rainwater into the
prevent a decrease in water pressure or a reduction in soil and reducing surface water run-off,
water levels and other negative impacts that can
reduce water quality. Utilizing empty fruit bunch and planting
Nephrolepis, Empty fruit bunch and Nephrolepis
Asa form of the Company's commitment to ensuring are used as ground cover to retain the soil
the condition of rivers, tributaries, and river borders, moisture.
the Company implements Work Instruction No. IK-
AGR-SHE-06-R01, The instruction reguiates the The Company's operational areas are not located in
following: areas with water scarcity. During 2023, the Company
received no public complaints, fines, or other
Establishing boundaries of riparian and prohibiting penalties from the authorities for using rivers,
chemicals on riparian areas, tributaries, waterways,or riparian areas; Information
on fivers, tributaries, waterways, Or riparian areas
* Monitoring the water quality-of the river.
around our operational areas,
* Installing signs prohibiting the poisoning of fish in
the river,
To maintain shared water sources, the Company @ For more information CLICK HERE
applies best practices to conserve water on palm oil
plantations.
PT Dharma Satya Nusantars Thk | Sustainability Ropert 2023
Page 101
PROCESS WATER INTENSITY
[PO3KSI F.8}
The Company maximizes the efficiency of water
usage through several efforts, such as optimizing
the use of rainwater and surface water and
maximizing the utilization of effluent from the mill,
Water is an essential resource, as every individual
depends on water. Therefore, the Company is
cammitted to keeping the limited water supply as
pristine as possibie.
To verify water usage at the mill, the Company
routinely manitors the Water Intensity (W1)/ton of FFB
:reduce or sustainslash <plle a ;
recessed, DSNG targets all palm oil operations to
water use intensity consumption to _——
T
»&2 M~/ton
3
FFB
1.2 m3/ton of FFB processed by 2025. Water usage as DSNG targets all palm oll operations
intensity during 2023 of 130 m3/ton decreased by 0.09 to reduce or sustain water use
m3/ton FFB processed compared to water usage Iyernetey Coren neon ot ZFS
intensity in 2022. itis daca
WATER INTENSITY
- = -
[GRI'303-5)
PALM OIL BUSINESS UNIT
Total Water Use nr 4,326,586 3,910,298 3,747,759
Water Use Intensity mitten, Processed 1.66 139 130
WOOD PRODUCT BUSINESS UNIT
Total Water Use mi 180,936 47569 147,569
m? /Production
Water Use Intensity - WP m
Flooring [nv] O12 O44 0.08
Engineered Flooring
mi {Production Panel
Water Use Intensity - WP Panel (m3) 1.27 126 149
* Dota source from POM 1, 2, 3,4, 6,7
“ Ths dote wos obtained from PKS 1-7] woter usage intensity
@ water calculations can
ha foundin THIS LINK
~ th
Page 102
MAINTAINING THE QUALITY OF TREATED EFFLUENT
[POIKS) F 34)
The Company ensures that effluent and waste water The Company, through its palm oil subsidiaries,
is treated to comply with the standards set by the utilizes its wastewater for land application under the
government so as not to pollute the water used by Quality standards and permits granted by the local
the local community. The following are the guidelines government.
that we apply both at the Headquarters, Palm Oil
Throughout 2023, the volume of wastewater derived
Business Unit, Wood Products Business Unit, and
from the production process amounted to 1,920,424
Subsidiaries. (Gri 306-5]
me with a wastewater intensity of 0.67 m4/processed
The quality standard for liquid waste for the FFB, As of 2023, there are no significant spills from
woodworking product industry is the Regulation of DSNG operations.
the Minister of Environment No.5 of 2014.
The Company maintains the BOD quality standard
below 5,000 mg/l following the Decree of the
Minister of Environment No. 28 of 2003 concerning
Technical Guidelines for the Assessment of
Wastewater Utilization from the Palm Oil industry
on the Soll in Palm Oil Plantations and Decree of
As of 2023, there are no
the Minister of Environment No. 29 of 2003
concerning Guidelines for Terms and Procedures for
significant spills from
Licensing the Use of the Palm Oil Industry
DSNG operations.
Wastewater on Soil in Palrn Oil Plantations. [POIKS1 £15) (GRIZ06-3}
RESULTS OF QUALITY MEASUREMENT OF PROCESSED WASTEWATER OF PALM OIL BUSINESS UNIT
PARAMETER STANDARD QUALITY 2021 2022" 2023
Bioiogical Oxygen Dermand{BOD) 5,000 ma/t B36 330 1580
Chemical Oxygen Demand (COD) = L787. 1533 A513
Acidity Level (pH} 9 7S Ts 72
RESULTS OF QUALITY MEASUREMENT OF PROCESSED WASTEWATER OF WOOD PRODUCT BUSINESS UNIT
~ FLOORING
PARAMETER STANDARD QUALITY 2023 SMT I 2023 SMT tt
Biological Oxygen Demand (BOD) 2915 3.56
Chemical Oxygen Demand (COD) 125 9018 126.05
Acidity Level (pH) 69 75 746
TSS 400 66 106
PT Dharma Satya Nusantara Tbk | Sustainability Repart 20235
Page 103
Community
Pillar
As part of the DSN
Group's Sustainability
Policy, we are
committed to
upholding and
respecting human
rights for our
employees and the
surrounding
communities.
Page 104
line. with
n rights policy is in
The Company's huma luding the
°
es and standards, inc
international initiativ leading
M i
of Human Rights, the
Universal Daclaration anization
q
ernational Labour Org
Convention of the Int Bus iness and
on the Principles of
{iLO}, the Guidelines the
United Nations (UN), Company do
es not
Human Rights of the onal Finance
The
in any
ndards of the int
ernati rimination
Performance Sta (PS tolerate disc
work conditions on:
por ati on (IF C PS) on labor and form whether r based .
Cor (PS7 and
and cultural heritage
’
2}, indigenous people jus e in
tic
ples of freedom and
PS 8), and the princi
palm oil production
policy of no
s the principle and
The Company uphold bas ed on
ation in any form
exploitation. Discrimin tol ted by
era
, or religion is not
gender, ethnicity, ace i-corr uption
we promote.an ant
our company, and values. Suku
h our corpor
culture that aligns wit
ate Gender
children, we
tion of women and
Jo support the protec that pri oritize their
policies since 2021 B
have established ensure access
td exploitation, and Gi
welfare, prevent chi
tion
to education and protec i S
n’s
to implement its Wome
DSNG is determined ing support Religion
ch includes provid
whi Race
Protection Policy,
ees and their families.
and facilities for female employ
ures to protect
appropriate meas
as well as taking any
al areas. The Comp
ration
women's nghts in ope od product
ion rooms in Our wo
has provided lactat anent field
te portable or perm
factories, and separa
notCoes n ancultanurtie.-
plantation in Wahau
Block, 35
The mpa ny also
toilets at our palm oll
part of our efforts, to
achieve this, $ corr ptio
A
3 Children
also implemented
The Company has and safety of
ensure the welfare
Protection Policy to children's
ted to protecting
children, It is commit ria te
them with approp
rights and providing in and around
rly those residing
protection, particula nds its two policies,
Company also dema ementation of these
operational areas, The To support the impl committee,
o tolerance ablished 4 women's
with its policy of zer the Company has est
suppliers to comply palm oll
has collaborated wit h atives from all DSNG
for child labor. DSNG comprise of represent and
uti ons t Kalimantsn,
ips, including instit t Kalimantan, Wes
multiparty partnersh icultural subsidiaries in Eas
mpany aiso
in the agr n. in 2023, the Co
ting child labor Centra) Kalimanta
involved in preven its subsidiaries at
, such as the Par
tnership for s committee at
sector in indonesia A), a5 established women’ Business Unit
in Agriculture (PAACL Flooring Product
Against Child Labour |POIKS F.79) the Weod Panel and
ment child protection
to
part of its commit
97
REPOTt 203
Tbk Sustainability
PT Dharma Satyo Nusantara
Page 105
HUMAN RIGHTS ENFORCEMENT
DSNG supports the enforcement of human rights for companies, in line with the second pillar of the United
Nations Guiding Princisies on Business and Human Rights (UNGPs), as part of its obligation to respect
human rights by the business sector.
DSNG enforces human rights through social Impact assessments conducted as part of the implementation
of Environmental Impact Assessments (AMDAL), which may affect the community and the environment,
and provides a mechanism for submitting complaints/grievances, This mechanism aims to evaluate and
mitigate the impact of the Company's operations on human rights. In addition, we ensure that every
community empowerment activity is carried out with due regard to human rights, especially for local
communities in the area,
DSN Group is committed to creating a child-safe
environment for children living within and in the
villages around the operational area.
[POIKS! F.19}
In line with the UN Convention on the Rights of
the Child and Indonesian Law No. 23 of 2002 on
Child Protection, utilizing its resources in its CSR
Department, the Company continuously strives to
fulfill the four key rights of the child:
@ The the right to survival
@ The right to protection
@ The right to development
# The right to participation,
The Company fulfills the children’s rights to
survival by providing facilities and access to health
and hygiene services, including:
DSNG fulfills the right to child protection through
* Quality health services a child protection campaign Carried out through
* Age-appropriate nutrition socialization to all employees and establishing the
Chiid Forum as a pioneer and platform for child
*® Clean water
protection actions.
* and safe housing
In 2023, DSNG established the DSN Child Forum
In fulfilling the children’s right to development, with a committee of 36 middie and high school
the Company provides educational services from students in the Muara Wahau site area.
an early age, including childcare facilities Establishing this Child Forum aiso fulfills the
that comply with national standards. DSNG also child's right to participate as part of the
provides capacity building for parenting community and to enable them to freely express
to parents or those responsible for childcare in their thoughts, views, and opinions, especially in
childcare centers, areas that affect them,
PT Dharma Satys Nusantara Tbk | Sustainability Report 2023 38
Page 106
Support for Communities
We are proud to continue
{POIKS) F235, F.24, F.25)
DSNG's vision and founding
COMMUNITY ENGAGEMENT
tradition of emphasizing the
Since the inception of the Company's operations, we development of sustainable
have engaged communities in participatory social and and resilient livelihoods for
environmental! impact assessments, This assessment
the communities in and
is part of the Environmental Impact Assessment
(AMDAL) document prepared by the operating
around our operational areas
subsidiaries. At the end of the reporting period, all through the principle of
operating subsidiaries completed AMDAL shared prosperity.
documentation (100%) in compliance with the Decree
of the Head of the Environmental Control Agency We incorporated this commitment into
No, 8 of 2020 on Community Involvement and our Group Sustainability Policy
by striving:
Information Disclosure in the AMDAL Process. [GR! 4131 to ensure that the communities around
Our operations are safeguarded and
Our initiatives with the community in managing social
continueto thrive. a
impacts around the operational area are carried out by
the CSR Function by taking a participatory and
consultative approach, Several community livelihood
and empowerment programs are carried out to
improve the health and business opportunities of the
community, especially for youth groups, vulnerable
groups, and families with limited income. [Gri 413-1]
We are aware that our Company's operations may
THE SIA FINDINGS GUIDE US TO IDENTIFY have an impact.on the surrounding community and
LOCAL NEEDS AND POTENTIAL IMPACTS IN that there are potential risks causing unintended
OPERATIONAL AREAS negative consequences, The ESMS pravides us with
the system to manage those risks. [GARI 413-2]
so that the Company can develop community
livelihoods and empowerment programs that In 2023, DSNG's CSR function also: focused on the
are sustainable and empowering and Social Impact Assessment (SIA). by mapping our
promote the self-reliance of the impact on the community and identifying community
communities in the affected areas, [GR! 413-1] needs around our operating areas. The SIA is part of
the Environmental and Social Management System
(ESMS) that the Company updates annually [Gai 413-2]
MANAGEMENT OF NEGATIVE IMPACT IN 2023
{GRi 406-1; 408-1, 413-1]
IDENTIFIED RISKS IMPACT MITIGATION PLAN
High demand for Limited alternative Developing altemative livelihood opportunities outside of palm al. OSNG actively
palm oll business ooportunities to catalyzes business opportunities for toca! entrepreneurs and provides business
Opportunities. palm of business training for focal youth to meer the needs of the surrounding community and
those whe support our operations. The Comipany collaborates with Muara Wahau
and Misu Baru Village-Owned Enterorises [RBLIMBES] to develop business
opportunities. such as the provision of basic food and necessities, air conditioning
services, and community-based ecotourism
PT Oharina Satya Nusantars Tbk | Sustainability Report 2023
Page 107
MANAGEMENT OF NEGATIVE IMPACT IN 2023 (Continuation)
[GRI 413-3]
Lack of awareness Children’s Rights Conducting a child protection campaign through socialization to all employees and
and low capacity Violation establishing the Chiid Forum as a platform to report on child protection actions:
among the
employees
concerning the
children rights
Lack of awareness Gender Establishing a women's committee and organizing engagement activities far the
of gender equality discrimination committee
Conducting a campaign for the protection of women
Building separate toilet facilities in the work area, including palm ail
plantations fields
We are committed to managing our social impacts through Social and Environmental Responsibility activities in
compliance to Law No. 40 of 2007 on Limited Liability Companies and Government Regulation No. 47 of 2012
on Social and Environmental Responsibility of Limited Liability Companies.
GRIEVANCE HANDLING FOR COMMUNITIES AND OTHER STAKEHOLDERS
(ORI 443-1]
Through our CSR programs, the Company continuously strives to build engagement in open cammunication
with the community and provides open access for them to share their grievances with us, through various
channels. In 2023, the Company received 428 complaints from both the community and other stakeholders, of
which 96.96% has been resolved, and 3.04% is-still pending resolution [GA 415-4]
LEGEND
@ TOTAL COMMUNITY REPORTS/COMPLAINTS BASED ON AREA IN 2023 2 96.96% (415)
& 3.04% (13) NUMBEROF COMPLAINTS
WEST KALIMANTAN
pr MNS SOAR. © resowwen
49 49 REPORTS
© MADE @® renoine
PT DPS
prKap © Avportcomplai
datentis
community reportcampiaint
s6 Qs by C50 os alte
darts aneigect
PT AAN NORTH KALIMANTAN ® Gost Kalimantan - Muare
177 iv] 177 PT DIL Wahow, Kerangon and Bengolon
greas of
(ateurd the operational
3 2 4 Muora Waheu/PT SWA-DIN-
DAN DWT-KPS-DSN,
@ Bengulon/PT BPN and
KaranganyPT BAS)
- tanjung
®@ North Xalimantan
EAST KALIMANTAN PT DIL
Sefor/Bulungan forcund
Muara Wahau operotionct crea)
5 2 6 @ Centra! Kalimantan - Lamandau:
or apn (around PT PWP's operational
CENTRAL KALIMANTAN 52 area)
prPWP é: 6 Dic © Wes Neaebeeorplins deltas
} Sintang (around the operational
xs O= Ox ae area of PT AAN, PT KAP, PT DPS.
CENTRAL JAVA 6 2 6 PT PSA, PT HINS)
3 ©: @: PT BAS ® Centro! Jove » Tomaeggung
6 2 6 (PT. BSN - Panel)
PT Dharms Satya Nusantars Tbk | Sustainability Report 2023 100
Page 108
Furthermore, the Company also provides alternative access to receive complaints from the public and other
stakeholders through:
[POIKSI F.24)}
1 2
OUR WOOD PRODUCT
WEBSITE P BUSINESS UNIT
Provide channels for In the Weed Products Business Unit, product-related reports are
anonymous grievances, submitted to the WP Engineered Flooring Marketing Team and the WP
Panel Quality Assurance Tearn, In addition, complaints from employees
and external stakeholders are handled by the Business Operation Support
CLICK HERE Team of each wood products subsidiary,
*% PALM OIL BUSINESS UNIT
All grievance reports are submitted to the Head of the CSR Operation Department. In the event, the
complaint cannot be resolved immediately, , it Shall be followed up in coordination with the Head of the
Plantation/Factory Area and, where necessary, escalated to a Director of the Company. Based on the
investigation and reporting process of the Head of Plantation/Factory and/or Director, the CSR Department
is tasked to convey the findings and engage with the agarieved party.
STATUS, TYPES, AND NUMBER OF COMPLAINTS FROM THE
COMMUNITY, BUYERS, AND OTHER STAKEHOLDERS IN 2023
STATUS
TYPE OF COMPLAINTS - Tare
infrastructure Al Al Cc
Plasma Estates/Cooperatives Partnership 100 oT 3
Planting Compensation (GRTT)/Land = 8 %
Compensation (GRL}/land claims
Employment and Job Opportunities 16 16 19
External FFB 4 < 0
Fruit Theft 4 “ ra
Misunderstanding between the 1 1 o
Security and Communities
Health service 1 1 o
Education 7 T 6
Community Development 26 25 1
Deforestation 1 7 Cc
POM / FFB / CPO / Bulking 1 ! 0
PT Oharmea Satya Nusantars Tbk | Sustainability Report 2023 11
Page 109
STATUS, TYPES, AND NUMBER OF COMPLAINTS FROM THE COMMUNITY, BUYERS, AND OTHER STAKEHOLDERS IN 2023
(continuation)
STATUS
TYPE OF COMPLAINTS TOTAL
| inProcess |
Contractor 26 26 0
Area Land border/HGU 5 3 2
Operational proces 12 72 13)
Environment 4 & 9
Total 428 ANS m
Complaint data is community complaint data managed by CSR ot the site
@ FLOW OF COMPLAINT
HANDLING MECHANISM
[PQIKSI F.24} Filling 3 complaint
Fill out the handling
form complaint form
& Studying the
Complaint Recipient complaint
CS2 Operations Analyzing the
Dept.Head cause of
: Do you need the
Plantation/Mill/Operation involvement of the Decision Making
Support Dept Head Board of Directors?
The Board Of Directors Determine
corrective actions
| of Taking action
Receive Resolutions improvement that. 2
Sh, p improvement
was done
Accepted?
Finish
PT Dharma Satya Nusantars Tok | Sustainability Repart2023° .
Page 110
Ov
LAND CONFLICTS
«
NUMBER ANO
9°
Any complaints and land conflicts with indigenous
HANDLING STATUS OF TOTAL KLAIM;:
peoples or ather community groups shall be
185
LAND OWNERSHIP
resolved by the Company without using force or CLAIMS WITH
violence under the national and provincial laws, the COMMUNITIES IN 2023
Company's land acquisition policy, and other
relevant regulations. In any land acquisition, the LEGEND
EAST
company observes the Free Prior and Informed KALIMANTAN
NUMBER
OF CLAIMS
Consent (FPIC) principle and the relevant land = AND NORTH
ownership laws.
2 SETTLED KALIMANTAN
Regarding land claim issues, the Company resolves
@ vrenvinc 5 Os
them by conducting meetings, socializing, verifyind WEST he iS;
relevant documents, surveying the location, and KALIMANTAN eg
56 °°
negotiating with the relevant parties. Mediation
through a third party or a judicial settlement will be
pursued if no agreement is reached. In 2023, the
Company has resolved 96.22% of land ownership
claims or grievances with the community
+ |
2 ' CENTRAL
4 KALIMANTAN
24 iv] v7 cf) 7
The Company has always
strived to ensure that none of
its activities violate the rights
of indigenous peoples, RESPECT FOR INDIGENOUS PEOPLE
including legal land tenure and
In 2021, the Company collaborated with parties with
the implementation of the relevant expertise lo conduct various studies on
traditional cultural practices indigenous communities in the operational area and
and customs. in the surrounding areas cf the Palm Oil Business Unit
in East Kutai Regency; East Kalimantan Province, to
meet international sustainability standards IFC
Performance Standard (IFC-PS) 7 on indigenous
peoples and IFC-PS 8 on cultural heritage, in jine with
our commitment to &Green,
With this study, the Company strives to understand
the existing social conditions of indigenous peoples
to develop a guidance document for developing the
economic, cultural, and institutional potential of
indigenous peoples. Aside from that, these
guidelines also include OSNG's participation with
communities in developing and implementing
community empowerment programs, ensuring the
implementation of Free, Prior, and Informed Consent
{FPIC) involving indigenous peoples, as well as
identifying and developing cultural heritage
management plans in DSNG's operational areas;
PT Dharma Satya Nusantara Tbk | Sustainability Report 2023
Page 111
In addition to ensuring the fulfillment of the health
and livelihood rights of indigenous peoples, in 2023,
DSNG aiso collaborated with the local government to
support the registration and civil administration
records, especially for the Dusun Long Sep
community, which is part of the Dayak Punan kelai,
traditionally Known as a nomadic community and
some members decided to settie in the Longsep area,
Muara Wahau Sub-district.
in December 2023, the Company organized a cultural
heritage management workshop attended by 30
employees from the East Kalimantan 1-Wanhau and
East Kalimantan 2-Bengalon and Karangan Areas. This
activity aims to familiarize employees with the
In the first year after the partial
protocols and methods involved in the
documentation and management of cultural heritage.
enclave of PT PWP, DSNG
It serves as 3 Crucial tool for recording the rich history
implemented a community
and culture of indonesia, preserving the identity of its engagement programme in
indigenous communities in a sustainable manner. the form of:
gu a
Our Challenge in Protecting -- Conservation education
and practice for youth
and women
the Rights of Communities
One of our key challenges in protecting the rights of @ Identification &
communities living in and around our operations, is @ @ documentation of
managing and prioritising community rights to local wisdom
determine land use.
Two lessons learnt in managing these challenges took Biodiversity inventory
place at our subsidiaries, PT Pilar Wana Persada (PT training
PY/P), Nanda Bulik, Lamandau Regency, Central
Kalimantan, and PT Dewata Sawit Nusantara (PT
DWT}, East Kutail, East Kalimantan,
Multistakeholder
dialogue
PROTECTING PT PWP'S ENCLAVE AREA
As reported in the 2022 period, following up on efforts
to mitigate overlapping land status with local
communities, DSNG carried out the process of
partially releasing PT PWP's HGU (enclave) area of
3,572.81 ha which was legalised in May 2022. Based on the study result, SatuNama recommended a
3-year programme that has been part of the
Along with this process, DSNG in collaboration with
engagement plan of PT PWP's CSR team since 2023,
SatuNama Foundation conducted studies involving
In this first year, the programme included education
relevant stakeholders in and around the said land.
and conservation practices for youth, women and
SatuNama was engaged to conduct tenure studies,
school students, identification and documentation of
stakeholder mapping, sacio-cultural studies including
local wisdom related to natural resource
assessing parts of the land that have historical, cultural
management, biodiversity inventory training and
and conservation values, as well as identifying
multi-stakeholder dialogue. One of the significant
potential conflict risks and fand clearing risks. This
achievements of this series of programmes was the
series of studies were conducted to understand the
community and customary declaration to protect the
livelihood needs and rights of the community, while
Bukit Pendulangan forest area (covering an area of
conveying our concern for the conservation of the area
1,000 ha), which is part of the enclave area and was
and to reach some consensus on fand use in the
previously PT PWP's HCV area.
former HGU HCV Area.
PT Dharmas Satya Nusantra Tok Sustainability Report 20735
Page 112
THE MIDWAY BETWEEN CONSERVATION AND
Achievements in our Social
COMMUNITY LIVELIHOODS AT PT DWT
In East Kutai Regency, East Kalimantan, DSNG and Environmental
encountered a challenge where the community did
not want to relinquish their customary management Responsibility Programs (CSR)
rights over the land that had been designated as an
HCV area in PT DWT, The community insisted on |PQUKST F253, F.25]
managing and cultivating food crops and opening
settlements on the land.
In 2023, DSNG invested Rp20.88 billion to implement
While it is a thorny issue for us to. choose between the various Social and Environmental Responsibility
legal right to operate our and recognising the need to Programs. This amount represents a 18% increase
maintain relationships with the communities in our from the previous year of Rp25.5 billion. This amount
area, we are firmly committed to the principles of Free, excludes dividends paid to the District and Provincial
Prior and Informed Consent (FPIC) and the FAO Governments and payments made to local
Voluntary Guidelines on the Responsible Governance contracting companies for the provision of goods
of Land Tenure, Fisheries and Forestry in the Context and services, DSNG also supports the Government,
of National Food Security, including capability building and training, event
sponsorship, joint programs, and provision of public
In response to this challenge, DSNG worked with
infrastructure.
Lingkar Komunitas Sawit (LINKS) to initiate a dialogue
with the Nehas Liah Bing Village community, In addition, the Company also regularly conducts a
especially the land tenants, The purpose of the series of socialization and consultation activities on
dialogue was to.understand the livelihood needs and sustainability programs with local communities,
rights of the community, as well as to convey our DSNG delivered materials in the form of Social Impact
concern for the conservation of the area and to reach Assessment (SIA), Livelihood Restoration Program
a land use agreement in the HCV area. As a4 result of (LRP), Indigenous People Program (IPP), Cultural
the dialogue and land tenure study, DSNG has Heritage Prodram (CHP), Landscape Protection Plan
voluntarily submitted a report and submitted a (LPP), Traceability and Environmental Socia!
request for consideration to the RSPO, DSNG is also Management System (ESMS} to the local community,
collaborating with the community to manage the land
sustainably by considering the needs of the
community and conservation of the remaining forest ¢
Regarding the protection status of HCV areas, DSNG
conducted a limited HCV reassessment and public
consultation on the results of the assessment,
including involving the RSPO secretariat in
conducting field verification of the HCV BY? AS as Pee
reassessment and its reporting,
Amount invested by DSNG to implement
The Company also developed Memorandum of
Understanding on HCV Area Management in
Block X with Wehea Customary Institution and in
Block XI between PT DWT and Long Beitegq
Hamlet community.
PT Dharma Satya Nusantra Tok: | Sustainability Report 2023 105
Page 113
The Company also continuously conveys related to
the FPIC Protocol, NDPE Policy, Humen Rights &
Employment, Evaluation & Preparation of CSR
Programs with the community, Code of Ethics/
Business Ethics, grievance mechanism, and
mechanism for conveying information and
Communication and a list of documents that external
DSNG has always been
parties can access. With this socialization, the
Company expects to improve its performance in
committed to empowering
carrying out social and environmental responsibilities.
women. Empowering women
involves:
WOMEN EMPOWERMENT
® Ensuring women’s self-worth, whether as
Within OSNG's operational premises, the Women's an employee, family member, or part of
Committee regularly provides socialization and the community, where their rights to
training related to fulfilling and protecting women's determine their own choice.
and children's rights, including giving briefings for our
employees’ wives and caregivers at daycare centers. ® Ulfilling women's rights to
determine their own choices
In and around its operational areas, the Company
encourages the involvement of women in village ® Assuring equal opportunity for
economic development activities through women to participate in decision-
agricultural activities as well as In the production of making
handicrafts or culinary products. The Company
actively encourages cooperatives and credit unions
to involve women as administrators, even leaders, in
managing their organizations.
EDUCATION
Improving access to quality education is vital to our
community empowerment programs, especially for
the youths, Since 2011, DSNG has established Sekolah
Dharma Utama (SDU) under the patron of Yayasan
Dharma Satya Nusantara Utama (YDSNU}. The
purpose of establishing SDU is to provide access to
quality educational facilities for the children of DSN
Group's employees living in the Muara Wahau estate
area, Dharma Utama Elementary and Junior High
Schools have been awarded hiah-leve! accreditation
from the Ministry of Education and Culture: In
addition, the Sekolah Dharma Utama (SDU) in Muara
Wahau was also awarded the prestigious Adiwiyata
School award at the National level in 2023.
The Company also supports providing formal and
informal education to the surrounding community.
The Company supports the implementation of
education from the East Kutai Regency Education
Office by providing locations.and constructing 5
Public Elementary Schools. In addition, CSR
employees in the Wahau Block actively provide
contextual educational assistance to the Dayak Punan
children in Dusun Long Sep, Contextual education
learning focuses on how the Dayak Punsn children
can recognize numbers and letters and: maintain
health and hygiene
PT Dharma Satya Nusantra Tok Sustainability Roport 2023
Page 114
ECONOMIC INDEPENDENCE
In 2023, the implementation of
DSNG successfully contributes to local income, the preservation of cultural
employment, and ecanamic independence in several
heritage has been carried out
Ways. Social responsibility programs in the economic
by the Company in the form of:
aspect are mainly aimed at supporting community
empowerment and development, Details on initiatives
to build economic independence and community ® Support for the implementation of
empowerment can be found on page 60 traditional ceremonies
Management of Indirect Econamic Impacts section
® Maintenance of cultural heritage
(cultural sites and ancestral graves}
SOCIOCULTURE AND TRADITION
® Access for the community to visit
DSNG believes that the traditional culture of the and perform rituals at cultural
community surrounding our operations is part of the heritage sites located In and
identity and sustains the social stability and quality of around our concession areas
life of the local communities, As part of our
commitment to IFC PS-8 relating to Cultural Heritage
Preservation, the Company understands that
preserving the cultural heritage of the indigenous
community for its future generations Is paramount
and is therefore committed to maintaining it,
applying processes in the chance discovery of cultural
heritage objects and procedures for respecting local/
indigenaus rights in implementing the traditional
cultural practices and customs
COMMUNITY AREAS AND INFRASTRUCTURE
The continued maintenance and improvement of
public infrastructure in the residential areas of the
communities surrounding the operational areas is a
key part of DSNG's community development
programs, as it provides facilities and benefits for
various levels of society. In 2023, the Company
invested Rp1.05 billion, an Increase of 17% from 2022.
for infrastructure development such as maintenance
of inter-village axis roads, construction of inter-village
access roads, construction of bridges, and provision of
clean water sources. [GRI 203]
PT Dharms SatyeiNusantar
; r~
Page 115
Management of Diversity and Development
of Human Resources Competences
Our employees come from diverse backgrounds, and we
é é believe that this forms a vital part of our company's
competitive advantage, which has contributed to the
success of the Company.
DSNG is committed to attracting and maintaining talented employees, nurturing them with skills, experience,
motivation, and the appropriate attitude to ensure DSNG's business growth and performance sustainability.
DIVERSITY AND EQUAL OPPORTUNITIES
Diversity is an essential aspect for DSNG to establish
a transparent and respectful work environment
DSNG's management is committed to gender
diversity and equal opportunity for all employees to
build a career irrespective of their gender, ethnicity,
religion, and political views, as well as other During 2023, the Company
discriminative factors, {e03KS1 Faa}(GRI 405-3) implemented Management
DSNG respects and gives freedom to all employees to Trainee Programs to recruit
join as members, administrators or form Workers’ and train talented new
Unions whose role is to synergise with each other as employees, who are projected
business partners who have the same voice to achieve to become strong leaders for
the Company's strategic goals, The Company has our various business units.
several Trade Unions, both in the palm oil business
segment and the wood products Business segment,
The programs successfully recruited 30
whose working relationships are regulated in
outstanding Lalents for both operational
Collective Labour Agreements (CLAs) that are officially
and supporting functions.
registered at the local Manpower Office.
The Company also recognises the right of employees
to express their opinions and be involved tn decision-
making rélated to employees through trade unions.
By the end of 2023, 60.11% of employees were
members of trade unions,
The Company has regulations registered with the
Loca! Labour Office for employees who are not
members of trade unions, The Company always
creates an open and effective two-way
communication relationship: The Company and the
Labour Union establish a Bipartite LKS to create a
conducive warking environment.
During 2023, the Campany implemented
Management Trainee Programs to recruit and train
talented new employees, who are projected to
become strong leaders for our various business units;
The programs successfully recruited 30 outstanding
talents for both operational and supporting functions,
PT Oharma Satya NuSantars Tbk | Sustainability Report 2023 108
Page 116
. 4 TOTAL NEW EMPLOYEES IN 2022 BY GENDER AND AGE GROUP [GARI 401-Ta] LEGEND e = - y MALE
272 56 (7.80%) 0 (0%) i
390
7.88%)
sty i 18 (14.93%)
s
2,434 Vv
v
(59-4834) 4,092 (85.07%)
8B (0.2056)
18-30 YEARS 31-40 YEARS 41-50 YEARS 51> YEARS TOTAL
The Company does provide ‘maternity leave’ for fernale employees MATERNITY LEAVE
for 90 calendar days and special leave for two calendar days to © -
spouses to support their wives during labor, [GRI 401-3] 90 DAYS v 2 DAYS
e& TOTAL NEW EMPLOYEES IN 2023 BASED ON GENDER AND WORK STATION [GRi 40}-la]
5 (0.70%) 599 N14 (15.8856) 0 (0%) °
(83.43%) .
718 (14.93%)
v
4,092 (18.07%
123 (3%)
9%
Leet aes, 10 (0.24%)
Go Sc
HEAD PALM OIL WooD OTHER UNITS TOTAL
OFFICE BUSINESS UNIT PRODUCT
BUSINESS UNIT
PT Oharmea Satya Nusantars Tbk | Sustainability Report 2023 103
Page 117
TOTAL OF EMPLOYEES LEAVING THE COMPANY
2071 2022 2023
DESCRIPTION
en swe
Resign 3,592 7S7 4,853 89} 4.724 682
Termination of
Employment 1,222 256 1,673 68 1,305 168
Relationship
eeenng 49 5 181 29 145 27
Retirement Age
Other Causes 2 6 25 2 27 2
Total 4,875 1,024 6,732 1,230 6,201 879
TOTAL OF EMPLOYEES TURN OVER BY POSITION
2021 2022 2023
POSITION LEVEL - =
Total Turn Over(%) Tonal Turn Over(%s) Total Turn Over(%)
RESIGN
Staf B& 3.8 a6 12 83 8.2
Non-Stof 134 1s? 675 6 415 WS
Plantation Crews 3,469 35] 4,975 423 4,308 36.2
TERMINATION OF EMPLOYMENT RELATIONSHIP
Staf 57 65 4S 49 7 7.0
Non-Staf 494 B2 av 439 45a 6.5
Plantation Crews 927 34 1,06S oi 1,044 V7
ENTERING RETIREMENT ACE
Staf 9 7.0 6 OF B 13.
Non-Stof al 03 Bez} 27 108 19
Plantation Crews 24 02 46 04 5! OA
OTHER CAUSES
Staf 4 Os 3 03 2 0.2
Non-Staf 5 0) 8 ot 10 02
Plantation Crews 8 0.) 16 ot 7 0.
Total 5,899 7,962 7,080
PT Ohara Satya Nusantara Tbk | Sustainability Report 2023 noe
Page 118
TOTAL OF EMPLOYEES TURN OVER BY OPERATIONAL AREA AND GENDER
2025
fone mo
AGE GROUP
Head Office 23 10 4% 3
Paim Oil Business Unit 5,861 32 5.909 730
Wood Product Business Unit B45 308 274 146
Other Units 3 0 4 0
Total 7982 7,080
LOCAL EMPLOYEES
The Company is committed to recruiting residents as
o . s
a priority wherever our subsidiaries the company
operates. In our palm oil business unit and wood
product, there were 13,548 employees who were
residents, which was 66% of the total employees in
2023. [GRi202-2}
Gender Pay Ratio based on
Inthe palm oil business unit, the Company hires lacal
Employment Status (between
employees from various cities in East Kalimantan,
women and men) jar: 601-2)
North Kalimantan, Central Kalimantan and West
Kalimantan, totalling 12,028 people, or 64% of the total
employees in the palm oil business unit. In addition,
the Company also employs local employees from
various cities in Central Java, totalling 1,510 people, or
1.01
93% of The total employees in the wood products
0.393
business unit. [GRI 202-2]
COMMITTED TO EMPLOYEE WELFARE
[GRI 202-1; 405-2]
Management
Management
Plantation
Non-Staff
DSNG Strives to provide competitive and equitable
Middle
Senior
Crews
Staff
remuneration to ensure employee retention and the
appropriate motivation for them to improve
performance. In addition, DSNG also provides other
rewards in the forms of allowances dan incentives
and does not discriminate in the remuneration EMPLOYEE TRAINING AND DEVELOPMENT
packages between male and female employees, [POIKS! F223
DSNG provides competitive remuneration according
to job positions, which include entry-level positions, Employee training and development is critical to
subject to the prevailing regulations and the DSNG for its long-term plan to retain employees and
Minimum Wage Standard prevailing in the province. ensure their skill and competence can achieve the
As a member of RSPO, DSNG fully endorses Decent Company's abjectives. Employee training and
Living Wages as determined INANI standards, development is part of the responsibility of DSNG's
whenever it shall be in effect. Human Capital Department.
PT Oharma Satya Nusantara Tbk | Sustainability Report 2023
Page 119
DSNG places a strict emphasis on safety training to prevent accidents and obligates all its employees on its sites
to have safety as a core competency, [SRI 404-7]
During 2023, the Campany provided orientation an sustainability and other training to support productivity
improvement. In addition to training, all male or female employees receive regular evaluations for their career
development. {GRI404-2)[GRI 404-3}
TOTAL TRAINING HOURS BASED ON EMPLOYEE LEVEL
{GARI 404.)
Level 4 up 16,812 45,765 53,376
Level 3 down 18.264 189 ATS
Plantation Crews 2,422 5.752 79,242
Total 37,498 70,508 149,097
Ensuring Safe, Secure, and Healthy Work Practices
IMPLEMENTATION OF OCCUPATIONAL
SAFETY AND HEALTH (OHS)
[POIKSI F.21]
DSNG is committed to providing employees with a
safe and comfortable workplace by implementing an
Occupational Safety and Health Manegement System
{SMK3), The implementation of SMK3 includes all
employees (100%) as well as the employees of our
business partners. The policy is applied
unexceptionally to them, including other stakeholders
who visit or are within the Company's operational
area. [GR| 403-7, 403-8]
DSNG has a mechanism for employees to report
conditions that may endanger workplace safety and
health through the Go Home Safe program, where
reports can be submitted to the direct supervisor,
The Company expects this program to encourage
employee awareness of OHS impiementation at work
and within the scope of their responsibilities,
For us, no operational
The Go Home Safe program is carried out by outcome is more important
developing habits and awareness and conducting than the work safety of our
continuous inspections of employees relating to the employees. DSNG believes
salts aemiaasileiaieabinaiae that all accidents can be
The Company will remove employees from avoided; therefore, we are
dangerous situations and immediately fallow up on committed to eliminating
reports submitted, including conducting accidents and incidents
investigations in the event of an incident. Until the across all operational areas.
reporting period, no situation endangered the safety
and health of employees.
PT Oharma Satya Nusantars Tbk | Sustainability Report 2023 T2
Page 120
The application of SMK3 within the Company has
been adjusted in Government Regulation No. 50 of ee
2012 concerning the Implementation of the
Occupational Safety and Health Management System
(SMK3) by implementing hazard identification risk
assessment & contro! (HIRAC), as well as OHSAS 18001: The Company regularly
BOO 7 ORE LOES SOS evaluates the performance of
The Company regularly evaluates the performance of OHS (Occupational Health and
OHS (Occupational Health and Safety) applications, Safety) applications, conducted
conducted internally and involving external parties, internally and involving external
including the local Manpower Office. The evaluation parties, including the local
process includes all facilities, operational units, and Manpower Office
employees in each business unit. In the fourth quarter
of 2023, for the K3L inspection, which consists of the
PKS Inspection, Housing Inspection, and PPE
Inspection in the garden, DSNG began utilizing the
SMART monitoring application to monitor the
Company's conservation areas. Using SMART ensures
that K3L inspections are conducted as they should be.
[POIKSI F.22]
OHS TRAINING PROGRAM
To promote the understanding and build OHS culture, the Company involves all employees in implementing OHS
Management System through several activities so that employees can directly participate, consult, and
communicate with management This communication is also a forum for employees to develop, implement, and
evaluate the OHS implementation.
OHS TRAININGS CONDUCTED FOR EMPLOYEES IN 2023
com cnn
[GRI 403-5, 403-4]
Firefighting Training, First Aid in Accidents & Occupational Health and Safety
and Environment .
Firefighting Training, First Aid in Accidents & Occupational Health and ze
Safety and Environment
Basic Mentality for Assistants 137
Child Care & First Aid i
Basic Electrical Training 33
Training for Afdeling Generator Operator & Hazardous Waste Handling 16
Factory Waste Control zh)
Emplasment Treatment & Household Management 6
Generator Operator License s
First Aid Certification Training t
Safe Driving Socialization 40
Hazardous Waste Handling Training 7
PT Oharma Satya Nusantars Tbk | Sustainability Report 2023 TT
Page 121
OHS TRAININGS CONDUCTED FOR EMPLOYEES IN 2023 (Continuation)
cst is
[GRI 403-5, 403-6]
Danger Suspect Training 95
General K3 Expert Training 1
Safety Training 79
Firefighting Training 24
OCCUPATIONAL HEALTH FACILITIES
[PO3KSI F.21]
The performance of each employee in carrying out their work is highly dependent on their healthy physica!
condition, DSNG's work environment is equipped with health facilities and clinics that are widely accessible to all
employees and contractors.
DSNG's work environment is equipped with health facilities and clinics. These Include the main clinic, the estate
clinic, and polyclinics dedicated to all employees, their families, and the surrounding community, In addition, at
every workplace, we provide a First Aid kit for minor accidents.
PATIENT VISITS TO HEALTH FACILITIES IN 2023
PALM OIL BUSINESS UNIT
renearrant se oeut Bengaion Karangan Ng. Bulik Pitecetean ssa
Outpatient 41,207 8.160 3775 B\S24 557 67.483
inpatient 1,07 44 3) oO 0 Wy?
The Company conducts pericdical medical check-ups (MCU) for all employees every year, The Company
facilitates and conducts MCU activities by the Company's Doctors at health facilities with a period of once
a year. [GRI 403-10}
Health checks for employees included:
The condition of the employee's vital organs (head, eyes, ears, nose, throat, thorax, abdomen},
Cholinesterase blood test for employees with chemical-related risk scope of work.
Spirometry test for employees with scope of work related to breathing.
Audiometry test for employees with scope of work related to noise risks.
Monthly gynecological check-ups for pregnant employees.
In addition, DSNG also provides health insurance facilities by including all employees in the national health
insurance program of the National Social Security Agency (BP1S) Kesehatan and paying membership
contributions, The amount of membership dues paid in 2023 amounted to Rp36 billion. As participants of the
national health insurance program, DSNG employees will get access to health services for non-accupational
Diseases (PAK), Health services are provided at health facilities agreed upon between BPIS Kesehatan and
employees as participants. As a measure to prevent and manage chronic diseases caused by sedentary
lifestyles, the Company launched a series of programmes for holistic chronic disease management. These
programmes comprise promotion (healthy living education and training}, prevention (health check-ups,
nutrition consultation, and exercise programmes), treatment {emergency care, follow-up therapy, patient
compliance monitoring}, and rehabilitation (medical recovery),
PT Oharma Satya Nusantars Tbk | Sustainability Report 2023 14
Page 122
In 2023, in the oil palm
plantations in Wahau Block, the
main health facilities and clinics,
managed to achieve 100%
prevention of severe diseases.
To support an active and healthy lifestyle,
the Company supports various group
Sports activities according to the
employees! interests.
OCCUPATIONAL HEALTH PROMOTION ACTIVITIES FOR EMPLOYEES IN 2023
(CRI 603-6, 403-7]
TRAINING ACTIVITIES NUMBEROF PARTICIPANTS
Childcare and First Aid Methods 7
Health education for TPA caregivers 80
Coffee Time-Nutrition
Coffee Time-Heaithy Lifestyle
Coffee Time: Work Life Balance
Healthy Talk with Or.Kristina 3 Herlernbang
Class for pregnant mothers
Distribution of supplemental food
Distribution of Vitamin A
Immunization
Tropical disease counseling
Environmental health monitoring
Socialization of Clean and Healthy Living Behavior (PHBS}
Health Oialogue
Mosquito Larvae Inspection
PT Onarma Satya Nusentara Tok | Sustainability Report 2023 1S
Page 123
ACHIEVEMENTS IN WORK SAFETY
Throughout 2022, 6 subsidiaries of the Company reported zero work accidents, During Year 2623, the number of
working hours last in the paim olf business unit increases from 36,492 working hours to 37,560 working hours, For
the wood products business unit, the total number of lost work hours was increased from 18 in the previous year
to 48, The statistics of OHS performance for Severity Rate and Frequency Rate was calculated using every
1,009,000 working hour. (oR'403-9]
ACHIEVEMENTS IN OCCUPATIONAL SAFETY MANAGEMENT
FOR PALM OIL BUSINESS UNIT
[GR 403-9}
Severity Rate 203.39 1874 158.32
Frequency Rate S44 Wi 142
Total Working Hour 32,550,180 33,465.287 39,539,012
Total Lost Working Hour 39,702" Be AI2 37,560
Fatal Work Accidents } | |
Zero Accidents at Subsidiary 2 6 6
* The increese is affected by the number of accidents in the severe and mediurn categories
ACHIEVEMENT IN OCCUPATIONAL SAFETY MANAGEMENT FOR
WOOD PRODUCT BUSINESS UNIT EMPLOYEE
[GRI 403-9]
WP - ENGINEERED FLOORING WP - PANEL
PARAMETER
202) 3022 2023 2021 2022 2023
Severity Rate 2.84 6.57 9.87 66 643 125.12
Frequency Rate 5.06 159 370 223 2.23
Total Working Hour $557,265 627,679.50 BI0.9146 4,315,780 2,184,513.90 2,685,487
Total Lost Working Hour 35 18 48 72 Bo 336
Fatal Work Accidents 0 9 7 o 9 0
Zero Accidents at Subsidiary 1 1 ° 1 | 0
The Company has not recorded the Total Recordable incident Rete (TRIR) and Near Miss Frequency Rote (NMFR)
Page 124
Through various efforts to implement OHS, in 2023, the Company managed to regain the OHS Award in the Zero
Accident Award from the Ministry of Manpower:
PT SWAKARSA SINAR SENTOSA 'o,
ae PT DHARMA SATYA NUSANTARA
we
{+}
POM 1] managed to achieve 3,018,569 working POM 2 managed to achieve 1,918,530 working
hours without work accidents, starting from hours without work accidents, starting from
January 1, 2017 ta December 3], 2022. January 2, 2017 to December 31, 2022
PT DHARMA SATYA NUSANTARA & PT DHARMA SATYA NUSANTARA , y
we
POM 3 managed to achieve 2,215,466 POM 6 achieved 1,590,569 working-hours
working-hours without work accidents from without work accidents fram January 2, 2017
January }, 2020 to December 2022, to December 3}, 2022.
PT DHARMA SATYA NUSANTARA
we PT KARYA PRIMA AGRO SEJAHTERA
fy
POM 7 managed to achieve 4,505,718 working Managed to achieve 2,012,742 working hours
hours without work accidents, starting from without work accidents from January 2, 2020
January 2, 2017 to December 31, 2022. to December 3}, 2022.
Additionally, through its subsidigry PT Swakarsa Sinar Sentasa, DSNG also received an award for achievements in
handling COVID-19 in the workplace and the community in East Kalimantan witha platinum category.
STANDARD PPE FOR EMPLOYEES
[CRI 403-7}
FORM OF THREATS AND DISTURBANCES STANDARD PPE
PALM OIL BUSINESS UNIT
Fertilization and spraying Helmet, faceshieid, corset, and boots
Machinery noise Earplug wearable
Waist injury Corset fespeciaily for harvesters}
Welding fire ang light exposure Welding shield and jacket
Struck by falling objects from above, such as FFB, fronds, objects
Helmet
from elevated areas while working
Leg Injury Safety shoes, safety boots
Falling from heights Body harness
PT Oharma Satya Nusantars Tbk | Sustainability Report 2023
Page 125
FORM OF THREATS AND DISTURBANCES STANDARD PPE
WOOD PRODUCT BUSINESS UNIT
Wood dust and adhesive vapor Masks, protection glasses, and gloves
Machinery noise Earplug wearable
Eye Injury Welding shields and glasses
Electrical current Gloves
Falling from heights Safety harness bett
The criterion for high occupational risk is adjustable and determined in the SOPs for identification, assessment,
control, nazard-risk and impact aspects.
Improving Product Quality and Safety
[POIKS) F,17, E27, F268, F293)
DSNG ensures that all customers receive equal
services, quality, and products. To achieve this goal,
the company consistently assesses 100%. of its
production processes, focusing on ensuring customer The Comp ony also Pro vides a
safety and well-being. By having several national and channel for customers to
international certifications: FSC, PEFC, CARB, ISPO& communicate their complaints
RSPO, amongst others, the Company and its about products and services
subsidiaries can guarantee product safety and quality, online through
These certifications are regularly verified and audited
by various independent parties and, in multiple
instances, provide DSNG with additional premiums.
None of the Company's products were withdrawn or
subjected to sanctions or fines related to product
safety until the end of 2023. Moreover, each product is
manufactured under the specific production process
implemented by each business unit and has its target
markets, both domestically and internationally.
¢
TO ACHIEVE THIS GOAL, THE
COMPANY CONSISTENTLY
ASSESSES
@; 8) PRODUCTION
& Oo PROCESSES
During the reporting period, the Company did not
Focusing on ensuring
customer safety and well-
recerve any Customer reports/Complaints regarding
being, the Company's services.
PT Ohara Satya Nusantara Tbk | Sustainability Report 2023 ne
Page 126
BUSINESS UNITS, PRODUCTS, AND TARGET MARKETS
CRO Domestic: 6,983 Billion
EXSS- Palm Oil :
2 . PKO Domestic: 144 Billion
1" Business Unit
PK Domestic: 588 Billion
Domestic: 478 Million
Panel
Export: 609,224 Million
Wood Product
Business Unit
Domestic: 17,56 Million
Engineered Flooring
Export: 319.522 Million
CUSTOMER SATISFACTION SURVEY
[POIKST F.40}
The Company conducts requiar customer satisfaction surveys, The survey is conducted se the Company can
determine customer satisfaction with service performance and product quality. The results of the customer
satisfaction survey suggest that customers are generally satisfied with the services and the quality of the
products delivered.
CUSTOMER SATISFACTION SURVEY RATING BASED ON PARAMETERS
—_ | :
1% Palm Ol
Business Unit*
1
0
=§ 202}
& 2022
-
2023
* Using a scale of 0-5
Page 127
€
12 Sustainability
— +~=Governance
Page 128
Sustainability Governance
SUSTAINABILITY GOVERNANCE STRUCTURE
AND DELEGATION OF RESPONSIBILITY FOR
ADDRESSING ESG IMPACTS
DSNG recognizes the importance of the
{POIKS! ENGR 2-9, 2-10, 2-11, 2-12, 2-33; 244, 245, 2499, 2-20, 2-21)
implementation of good corporate
governance (GCG) to drive the Company’s To ensure the practical application of GCG, the
business sustainability inthe tong term, Company has a GCG structure that refers to Law No,
40 of 2007 concerning Limited Liability Companies,
THE COMPANY'S IMPLEMENTATION OF
consisting of three pivotal bodies; the General
GOOD CORPORATE GOVERNANCE (GCG) IS
Meeting of Shareholders {GMS}, the Board of
GROUNDED IN FOUR KEY PILLARS
Commissioners, snd the Board of Directors.
® Ethical behavior
The GMS is the GCG organ with the company’s
® Accountability highest power and authority. The Board of
® Transparency Commissioners is the GCG body collectively
responsible for supervision and providing advice and
® Sustainability
input to the Board of Directors to ensure the
This aligns with the corporate governance Company's management aligns with the GCo pillars,
guidelines set forth by the National Committee The Board of Directors is the GCG body tasked for and
on Governance Policy (KNKG), responsible for managing the Company. The
Company has established guidelines and procedures
for the nomination and remuneration of the highest
governance bodies, namely the Board of
Board of Commissionors Commissioners and Board of Directors. In carrying out
their duties and responsibilities, the Board of
Board of Directors Commissioners, Board of Directors, and employees
may encounter situations involving conflicts of
President of Directors interest. To maintain independence and
professionalism, the Company implements a conflict-
Managing Director of-interest policy. Details regarding the roles and
SBU Agro - Palm Oil responsibilities of gach GCG bodies, has been
elaborated in the 2023 Annual Report.
Managing Director Sustainability
S8U - Wood Product Advisory Board
Managing Oirector
SOU - Renewable 4
Energy
Further information can be accessed
Chiof Sustainability Officer
through our website:
CLICK HERE
Corporate Social Compliance and Sustainability
Respansibility Engagement Engagement
System
ESG Committee
Representative - Corporate
Representative - SBU
PT Channa Sotya Nusentara Tok | Sustainability Report 20235 Lr)
Page 129
The Board of Directors is responsible for ensuring é é
that the Company's sustainability strategy and
performance are relevant to the agenda for solid
performance across environmental, social, and The SAB periodically
governance aspects, To ensure the implementation engages with various
of sustainable practices, the Company has stakeholders to help DSNG
designated a Chief Sustainability Officer (CSO), address and enhance its
assisted by the Department of Sustainability and sustainability performance.
the ESG Committee, to implement, monitor, and
report on the Company's Sustainability initiatives, as
well as to apply the concept of continuous
Improvement across our operations, supply chain,
and the communities in which we operate, The CSO
reports directly to the President Director and ¢
periodically updates the President Director on the Further information regarding the SAB
Company's sustainability matters, can be found through our website at
The Company has also establisned a Sustainability
Advisory Board (SAB) consisting of highly experienced CLICK HERE
individuals in Sustainability, along with members of
the Board of Directors and CSO. The SAB was formed 7 one
to assist, quide, and provide recommendations to fT OHARMA SATYA WUSANTARA. TR
ithe
DSNG's Board of Directors regarding ESG and other
sustainability issues, The SAB periodically engages
with various stakeholders to help DSNG address and
enhance its sustainability performance.
MEMBERS OF SUSTAINABILITY ADVISORY BOARD
AS OF DECEMBER 31, 2023
DATUK DARREL
WEBBER
Chairman
MICHAEL TIMOTHEUS In 2023, the SAB held four meetings discussing several
vp AGEING; topics, including:
Member Member
Significant risks in DSNG's sustainability
performance related to forests, climate, and
Vj communities
fj +"
Current trends and issues related to national and
global policies that could pose risks or
opportunities for DSNG's business and
SikiE COLL SHA sustainability performance
MUNANG SYAHRANI - Wes
Member Member DSNG's strategic steps in risk mitigation and the
(Effective as.of measures taken by the Company to minimize
I Jonuery 024)
impacts
AM
moi |S 4|W The Company consistently and periodically monitors
its environmental and social impacts and Implements
various programs to manage its impact,
Effective per Ist January 2024
PT Dharmas Satya Nusantara Tok | Sustainability Report 2023 122
Page 130
In the preparation of the Sustainability Report, the Board of Directors and Board of Commissioners play a crucial
rate by approving the reporting standards, determining the material topics to be addressed in the report, and
endorsing the fina! document. Specifically, the Chief Sustainability Officer (CSO) appoints the Sustainability
Engagement Lead officer with the assistance of the pertinent departments responsible to compile the
Sustainability Report.
COMPETENCY DEVELOPMENT RELATED
TO SUSTAINABILITY
[POIKS) E.2\[GRI 2-17)
The Company encourages members of the Board of Commissioners, the Board of Directors, the SAB, and the ESG
Committee to participate in training and seminars to enhance knowledge of sustainability practices, including
participating in benchmarking studiés to broaden the perspective of implementing sustainability performance.
CATEGORY OF SUSTAINABILITY CAPACITY
TOTAL HOURS
BUILDING
Benchmarking study 247.5
AVERAGE HOURS OF TRAINING
Seminar 270 106.63
Training 55 oe
MAN-DAYS TRAINING
Workshop pee 40
@ For details of sustainability competency development training,
THIS LINK
please refer to
PERFORMANCE EVALUATION
[GRI 2-18}
The performance evaluation of the Board of The performance of the Board of Directors and
Commissioners and individual members of the Board individual members of the Board of Directors is
of Commissioners is conducted annually through self- evaluated by the Board of Commissioners every year
assessment, and the results of each member's and and is based on duties and obligations stipulated in
collegial assessment are reported to the shareholders the applicable laws and regulations and the
at the GMS. Generally, the performance of the Board Company's Articles of Association. The results of the
of Commissioners is determined based on duties and evaluation of the overall performance of the Board of
abligations stipulated in the applicable faws and Directors and the individual performance of each
regulations, the Company's Articles of Association, member of the Board of Directors will form an integral
and the mandate of the Shareholders. part of the compensation scheme and the provision of
incentives for members of the Board of Directors,
PRDharma Satya NugantaraTbk | -. wont “ \
Page 131
Critical Issues Management and Reporting Mechanism
[POIKS) ES][GR! 3-3)
The Company has an extensive Stakeholder In 2023, DSNG implemented optimal and sustainable
Engagement Plan (SEP) within its Environmental GCG practices, which helped the Company avoid
and Social Management System (ESMS), where significant legal sanctions from the authorities
stakeholders can convey various issues of concern
regularly through the Stakeholder Engagement
Forum (SEF). Subsequently, the CSO communicates
the results from the SEF to the President Director. In
2023, the Company received 4 issues of stakeholder
concern through the SEF
4
Risk Management for issues of stakeholder concern
through the SEF (2023).
implementation of
Sustainability = eos Esi10n135)
The Audit Committee is responsible for the Company's risk management impiementation with the support
from the Board of Commissioners, actively manitors the implementation of Risk Management by the Board of
Directors, evaluates the accountability of the Board of Directors, and the implementation of Risk Management
Policies, and evaluates and approves the Board of Directors requests for transactions that require the approval of
the Board of Commissioners: DSNG regularly identifies risks that can affect the Company's performance which
are provided inthe 2023 Annual Report.
Te maintain sustainable performance growth, the Company also identifies ESG risks that may affect the
Company's performance, this includes developing a crisis management protocol. The protocol comprises the
definition and identification of various types of crises, a mechanism for the formal activation and termination of
crisis responses, including crisis communication guidelines, and the description of roles and responsibilities of
the crisis management committee,
The following table represents the results of the identification of issues, developments, and the impact of
mitigating critical risks in 2023:
FOREST RISK ; BIODIVERSITY AND CONSERVATION
Description of the Risk Risk Mitigation Executed Programs
Deforestation Fulfillment of the RSPO process for NPP and Habitat & HCV protection and River Buffer
Forest fire MCV & MCS Assessment Zones
Conservation of crucial species based an Compliance with RSPO NPR
Government Policy and the IUCN Red List Commitment to RaCP RSMO through the
Conservation outside concession:areas hectare-to-hectare mechanism in Laman
through barinerships and collaboration with Sateng Village and Sepakat Jaya Village,
communihes and non-governmental Ketapang Recency, West Kalimantan
organizations (OCCA) HCV monitoring usinad SMART Patrol and
Taking preventive actions to reduce the camera traps
potential risk of forest fires
Prenaring eauioment and infrastructure for
forest fire mittaation
PT Dharma Satya Nusantara Tok | Sustainability Report 2023 24
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vy For
RISK ; BIODIVERSITY AND CONSERVATION [Continvation)
Executed Programs
© The Cf Concession Conservation Area (OCCA) program collaborates with USAID SEGAR and LPHD Karangan Dalam
» Fite prevention through 6 landscape approach, in collaborstion with authorities and community farmer groups in fire and land fire
mittgation and handling
) ) FOREST RISK : CERTIFICATIONS
Description of the Risk Risk Mitigation Executed Programs
© Failure to obtain green © Conducting internal audits for all certification © Palm Oil Certification {ISPO,RSPO & ISSCC}
certifications (ISPO, systems held by plantations and factories and
© Wood Product Certification (SVLK,FSC, PEFC,
RSPO, ISCC; etc.) taking further actions as necessary based on
CARB, JAS}
findings
© Conducting refresher training to update
knowledge on Quality Audit patterns for
Quality Inspection Teams
) ) FoREsT RISK | SUPPLY CHAIN PRACTICE
Description of the Risk Risk Mitigation Executed Programs
*» Implementation of the © Implementing the Company's no Providing socialization and training to:
Company's NDPE within deforestation, peat, and exploitation (NDPE)
» Ipc
the supply chain commitments within the supply chain
» Cooperatives
» FEB Supplier Agents:
Responsible supply chain program covering:
» Third-pany FFA supplychains
» Third-party FFB supplier compliance
» FEB supplier traceability
CEDescription of the Risk
esa Risk Mitigation Executed Programs
® Extended drought causing Informing potential prolonged drought te © Management of fire risks due to El Nina
“
surface and groundwater suppliers, employees, and the community for impacts using 6 holistic apgroach
deficits amticipation
* Mapping fire-prone areasinside and
» Floods and fires » Taking mitigation measures
for fires and
outside concessions
floods
© Developing fire prevention and mitigation
» Identifying, planning. and proactively infrastructure (e.g. watchtowers}
exploring activities to reduce climate impacts
* Training and socialization of fand clearing
» Enhancing water management in fiocd- without burning
proné areas
PT Oharma Satya Nusantara Tbk | Sustainability Ropert 2023
Page 133
: RISK : CLIMATE CHANGE (Continuation)
Risk Mitigation Executed Programs
Installing and building water storage and pumps to control and * Preparedness and emergency response readiness training
Manage excess water and simulation
Post-fire handling evaluation
Efficient use of water through savings and reuse of turbid
water for inngation and other purposes
Building dikes:in flood-prone areas {PT BRN}
RISK + ENVIRONMENTAL POLLUTION
Description of the Risk Risk Mitigation Executed Programs
Increased wastewater Wastewater treatment Waste management and handling srograms
volume (Organic Fenilizers, Biogas. Siomass)
Waste sorting and separation
Decreased water quality Chemical substance management program
Sate storage of hazardous and toxic waste
f Environmental lution emergency
Proper use of fertilizers and pesticides pony PI SHEK response
TES PHOS
program
Safe storage of fertilizers and pesticides
Utilization of oil palrn biomass waste te
Safe equioment cleaning
generate elactticity and supplementary
fertilizer
Conversion of wood waste into wood pellets
to replace fossil fuels
Participation in PROPER with the Ministry of
Environment and Forestry
The risks and mitigation efforts identified by the Company are Included in the ESMS, to facilitate the group-level!
and Business Unit-level monitoring. The results of the ESMS are presented in an ESMS document, which
becomes the subject of periodical evaluations, to help the Company adjust its operational condition and ensure
the sustainability and effectiveness of the mitigation of the priority risks, The evaluation is carried out Through an
internal audit mechanism,
PT Dharma Satya Nusdntata THK "
~
Page 134
Industrial Relations [Gat 2-30}
As we seek efforts to establish a good industrial relationship, we have developed a Corporate Manual (CM), which
was already approved by the Labor Office at the Provincial level, for our Palm Oil Business Unit, and a
Collaborative Agreement (CA) at our Wood Product Business Unit. Both CM and CA are introduced to ensure the
fulfillment of employee's riahts and obligations, where CA will bind the whole employees (100%) and also applies
to both contractors and vendors who work within and/or for the Company,
Stakeholder Engagement [POIKST EA)[GRI 2-29)
The Company has identified the strategic The stakeholders are identified using AccountAbility
stakeholders for both internal and external which {AA) 1000 Stakeholder Engagement Standard and IFC
convey direct and indirect impacts to our operations. PS'1,in respect to the level of engagement and
The internal stakeholders are the employees and their interests, We provide comprehensive information
families, whereas the external stakeholders consist of about the main stakeholders, reasons for
the government, non-governmental organizations, engagement, methodology, and frequency in the
individuals with extensive network and specializations, document of the Stakeholder Engagement Plan (SEP)
universities and academic members, multiparty and in the Environmental and Social Management
forum, vendors and suppliers, media, investors, System (ESMS).
customers, the local community, certification agency
In 2023, we have taken a series of stakeholder
and young generation, including millennials.
engagement activities, independently or by invitation
from other stakeholders. Some of the key activities are:
1 STAKEHOLDERS ENGAGEMENT FORUM (SEF) AT DSN GROUP
QO 4 JULY 2023
On July 4,2023, DSNG held the second Stakeholders Engagement Forum (SEF). Thirty-five invitees
attended the event, representing:
@ 18 civil community organizations @ 3 banking institutions
® 3 research institutions @ 2 financial analysts
® l university
This forum allows each stakeholder to provide insights regarding the impacts of DSNG's operations and
propose improvements: This forum atso allows DSNG to explore potential collaboration opportunities with
civil society and its stakeholders to achieve a common sustainability purpose.
‘) 20 NOVEMBER 2023
In conjunction with the RT RSPO annual conference that was held in Jakarta, DSNG organized an
informal networking event, inviting representatives fram domestic and international members of Civil
Society, NGOs, industry peers and financial investors, amongst others. In this event, DSNG aims to build
on and expand its network, to enhance collaboration opportunities, and explore other potential
sustainable ventures.
PT Dharma Satya Nugantars Tbk | Sustainability Report 2023 127
Page 135
2 SUSTAINABILITY EDUCATION AND CULTURAL ARTS INCLUSION
DSNG, through TKP! and DSMN, conducted various activities that served as platforms to raise awareness
about sustainability issues, involving artists, architects, interior designers, and architecture and interior
design students, These activities provided awareness about sustainability and using wood flooring in art
and design applications.
© 25 JANUARY - 77 JUNY 2023 4 Targeting architecture and interior
ACTIVITIES TEKarch 4.0-5.0 design students
25 OCTOBER - 8 NOVEMBER 2023 ,
—> Targeting art enthusiasts and the public
CONTINUUM ART EXHIBITION
COLLABORATION WITH CIVIL SOCIETY AND INTERNATIONAL PROGRAMS FOR CAPACITY
BUILDING OF INDEPENDENT FARMERS
DSN Group collaborated with Solidaridad and the German Government-GiZ development program in
initiatives to enhance the capacity of independent farmers for best farming practices and sustainable
palm oil supply chains. Together with Solidaridad; the Company. through its subsidiary PT Kencana Alam
Permai (KAP) in West Kalimantan, supported Raja Swa Cooperative in establishing and managing a
compost house using organic waste from empty fruit bunches,
Company also developed the capacity of independent farmers
EAST KALIMANTAN . t : ies
> affiliated with 6 (six) cooperatives in Kutai Timur Regency.
ES DSN Group received a visit from Her Excellency Ina Lepel,
QO 30 MAy 2023 the Federal Republic of Germany Ambassador to Indonesia,
ASEAN and Timor Leste, at the Muara Wahau Site and Bio-
CNG 2 Factory. During the visit, discussions covered
empowering independent farmers, converting palm oil
waste into renewable energy, and global climate change
and forest preservation issues.
BENCHMARKING JOURNEY OF BEST PRACTICES IN THE PALM OIL
s INDUSTRY TO LATIN AMERICA
© 24 MARCH - 8 APRIL 2023
7 (seven) representatives from the DSN Group's senior management visited Daabon in Colombia and
Agropalma in Brazil, Both companies exce! in managing organic palm oil plantations and in sustainable
palm oil practices. During this visit, DSN Group representatives were exposed to organic plantation
management, the use of innovative technology to generate real-time operational data for nurseries,
plantations, factories, and their worid class sustainable farming practices.
PT Dharmas Satya Nusantars Tbk | Sustainability Repart 20235 128
Page 136
Responsible Business .
Commitment Our NDPE commitment is accessible at
DSNG adopts three core principles to address the
THIS LINK
impacts of its business and operations, namely No
Deforestation, No Peat, and No Exploitation (NDPE),
Preservation, and Circularity,
'@) NDPE PRINCIPLE
The NOPE principle & the Company's commitment to protecting forests. peatlands, and the human riahts of employees and communities
Some of our implementation efforts include:
Implementing and socializing NDPE policies in our supply Socializing practices in protecting forests and biediversity
chains
Towards a net zero emission transition
Supporting the socialization of Best Managernent Practices to
our farmers and supply chain and promoting sustainable Respecting the rights of indigenous people
certifications for smallholders
O PRINCIPLE OF PRESERVATION
This principle represents the Companys efforts to protect the surrounding environment from harmful impacts from human activities. Some
implementations of the preservation principles in place are:
Implement our Landscape Protectian Plan and traceability Off-Concession Conservation Areas (OCCA) covering an area of
efforts with our supply chain to comply with our NDPE policy, 3,145 ha, where we work with the community to preserve their
nature's cultural and environmental heritage
Survey critical species such as orangutans in our concessions
and adopt interventions to preserve and protect their habitats Report on our climate action plan to.continue reducing carbon
footprint through resource utitization of renewabdle eneray,
investing in Bic-CNG plants, and applying air filter in boiler
chimneys, amongst others
@ THE PRINCIPLE OF CIRCULARITY
We implementa circular economy through this principle by Utilizing and managing our waste and by-oraducts. We apply this princisle
primarily. in our operations and reflect the approach of some of our initiatives for community Gevetopment. Some of the efforts that
represent the principal implementation are:
Utilizing our byproducts for Biomass fuel. Pale kernel shells are exported for Diornass electricity generation
Utilizing POME as an energy source for biogas and Bjio-CNO
These three principles are embedded in Group rs
Sustainability Policy No. 001/DSN/CSO/VII/2021, The
framework for managing its impact in three critical Our sustainability policy
areas: Forests, Climate, and Community. is available at TNS IN
PT Dharmas Satya Nusantara Tok | Sustainability Report 20235 129
Page 137
NEGATIVE IMPACT RECOVERY PROCESS
DSNG is committed to the responsible use of resources to minimize the negative impacts arising from our
operations. We diligently align our operational and supply chain processes with our NDPE policy to pramate
sustainabie practices.
DSNG its dedicated to implementing
the highest standards of
sustainability practices.
OUR THREE CORE AREAS:
Forest Climate Community
A
‘eT Hhorma Satya Nusantr Tbk, [Sustainability Report 2023 >
~ A
.¥
Page 138
Commitment to
7 ea rCage ON A CCL
ANTS mH ,
” 1 iec 2 . Ni
Human Rights
{GRI 2-23, 2-24, 4054, 4063, 408-1]
DSNGO is committed to upholding human rights
protection through the following policies:
OSNG GROUP SUSTAINABILITY POLICY
(No. QOYOSN/CSO/ViI/2031)
DSNG is committed te respect and secure the rights
of all Workers, in accordance with international
initiatives and standards such as the Universal
Declaration of Hurman Rights, the International
Labour Organization's (ILO) core conventions, United
Nations Gulding Principles on Business and Human
Rights , |FC Performance Standards on labour and
working conditions {PS 2}, and the principles of Free
and Fair Labour No recruitment of minors under
the age of 18.
THE NDPE POLICY
Was published in Novernber 2019
DSNG is committed ta Implementing production
14 permanent field toilets in the
® plantation with separate
practices that respect the rights of indigenous
v facilities for male and female
peoples, workers and focal communities. This policy
employees.
aims to promote Human Rights and Health and
Safety at Work in DSNG's Operational areas, in
accordance with international initiatives and
Standards such as the Universal Declaration of Human Ensures no discrimination
Rights, the Internationa! Labor Organization (ILO} core 2 against women in the work
Conventions, the United Nations Guiding Principles on environment,
Business and Human Rights, IFC Performance
Standards on employment and working conditions
(PS 2), and the principles of Free and Fair Laborin 377 women's committee members
Paim Oil Production representing DSNG subsidiaries in
palm oil and wood products
CHILD PROTECTION POLICY business units (2023).
[No. 043/DSN/CHC/ 11/2023)
This policy aims to ensure the rights and protection
of children living in the surrounding operational
WOMEN PROTECTION POLICY
areas of DSNG, realize chitd weifare, prevent child
(Na, 044/D5N/CHE/N/2023)
exploitation, provide access to a decent education,
as well as ensure no recruitment of minors under DSNC's policy demonstrates its dedication to
the age of 18. To support child protection, DSNG, Ppramoting gender equality in the workplace by
through Multiparty Partnerships, collaborates with supporting female employees. The Company is fully
an institution engaging in the Prevention of Child committed to safeguarding women's rights as
Labor in the Agricultural Sector In Indanesia, namely workers and family members. It Is prepared to take all
the Partnership for Against Child Labour in necessary measures to protect such rights In its
Agriculture - PAACLA operations.
PT Chars Sstye Musantera Tbk | Sustainability Roport 2023 3
Page 139
The Company has built 14 permanent field toilets in its
with separate facilities for male-and female employees
to ensure our female employees are in a private, safe,
and comfortable environment when using the
restroom,
in addition, the Company also ensures no
discrimination against women in the work
environment The Company has a zero-tolerance policy
for discrimination, sexual harassment, and other
misconduct, Strict action will be taken, including
reprimands, disciplinary action, and legal recourse if
necessary, Our top priority is the well-being and safety
of our employees, and we are committed to. creating a
harassment-free workplace,
The Company has established a committee for women. During the year 2023, there
Until the end of 2023, there were 377 women's were no cases/incidents of
committee members representing DSNG subsidiaries corruption.
in palm oll-and wood products business units, The
establishment of this women’‘s.committee aims ta
organize socialization and campaigns for protecting
and fulfilling children's rights, as well as workshops and
engagements on the needs for pratection and °
fulfillment of children's rights,
The Company has an Anti-Corruption
and Anti-Bribery policy, a copy can be
Our Commitment to accessed through
Anti-Coruption and Anti-Bribery THIS LINK
[GRIt 205-1, 205-2 205-3}
The Company continuously secializes this policy at
¢
various internal events to employees, leaders, and the DSNG Political Involvement Statement
Board of Directors, including new employees and and Policy can be accessed at
suppliers. As part of the evaluation effort, the Company,
through the Internal Audit Division, continuously
conducts assessments to identify business processes THIS LINK
with a high risk of corruption, Based on these
assessments, during the year 2023, there were: no
cases/incidents of corruption. Handling suspected anti-
corruption follows the anti-bribery and anti-corruption
policy No. 032/CHC/V1/2022.
In line with our commitment to Anti-Corruption and
In line with our commitment to Anti-Corruption and Anti-Bribery, the Company also implements a Political
Anti-Bribery, the Company ajso impiements a Palitical Invelvement Policy that restricts employees from
Involvement Policy that restricts employees from engaging in political activities in any form on behalf of
engaging in political activities in any form on behalf of the Company. During 2023, the Company also did not
the Company, During 2023, the Company also did nat make any contributions or donations ta any political
make any contributions or donations to any political campaigns, political parties, political party candidates
campaigns, political parties, political party candidates or political officials:
or patitical officials
PT Dharma Satya Nusantara Tok | Sustainability Report 20235 Ws2
Page 140
Sustainability-linked
DSNG became the first ail palm plantation company In addition, under the arant received from ABD,
to obtain a USD 30 million loan facility with a 10-year DSNG aims to educate around 4,000 farmers [at
term from Stichting andgreen.fund {&Green) in 2020. least 1,200 of whom are Women) to adopt climate-
Then in 2023, the Company obtained a sustainability- resilient agricultural practices through the cultivation
related loan facility of USD 15 million and a technical of Sengan.and Jabon trees, as sustainable
assistance grant of USD 500 thousand from the Asian alternatives to forest timber, thereby preventing
Development Bank (ADB). Bank BCA and Bank deforestation and supparting biodiversity
Mandiri also channelled sustainability linked loans as a conservation.
Supporting catalyst for DSNG in implementing
In 2023, 250 farmers have been trained, 63 of whom
sustainability principles in developing its business, As
are women farmers,
a result, 30.2% or Rol,702 billion of DSNG's total loan
facilities are in the form of sustainability linked loans.
On receiving the sustainability linked loan, DSNG is
required to fulfil various sustainability standards such
as International Finance Corporation Performance
Standards (IFC PS) on Environmental and Social
Sustainability, World Bank Group Environmental
Health and Safety (EHS) Guidelines. From these 250
standards, DSNG developed-an Environmental and Farmers who received training,
Social Action Plan (ESAP), Landscape Protection Plan
(LPP), No Deforestation, No Peat, No Exploitation
& Among them are women farmers (2025).
(NDPE) Policy, as well as a Group Sustainability Policy
and Environmental and Social Management System
(ESMS).
The Company's sustainability performance is audited
independently each year, and in. 2023 the audit results
showed that the LPP and ESAP achievements were @ Thereport canbe
THIS LINK
rated good and all ESAPs were declared compliant accessed
on
with some recommendations: The audit report is
published on the &Green and DSNG websites as part
of the transparency commitment to stakeholders.
COVENSIONAL SUNTAINABILITY
LINKED LOAN
STIDR
ST USD
LT IDR
y - a ad
IMPACT LOAN USD mandiri
CURRENTLY 21%
PROFILE 18%
30.2% or equivalent to IDR 1,702 bn of DSNG
foan are in the form of sustainability loan Ltr usD
PT Dharma Satys Nusantara Tok | Sustainability Report 2023 133
Page 141
Whistleblowing
System {GAI 2-16]
Company ensures the
The Company implemented the Complaint
privacy protection of
Reporting System Policy (SPP) No. 042/DSN/CHC/
11/2021, which-aims to detect and prevent violations
reporters or witnesses who
that could potentially harm all stakeholders of the report complaints.
Company, The Company ensures the privacy
protection of reporters or witnesses wha report
complaints: Furthermore, this systenyensures that
all grievances or complaints can be resolved ¢¢ ¢
effectively and meticulously by involving relevant
parties.
Our violation reporting procedures accommodate
complaints from internal and external parties and
are regulated based on the Complaint Handling
Policy. The report can be submitted through:
1
wy EMAIL
pengoduon@dsngroup.co,id
2
THE COMPANY’S
WEBSITE
http://www.dsn.co.id
277
Amount of report submitted
through the SPP (2023).
3
YW OFFICIAL LETTERS All of these reports have
been followed up on and
declared resolved.
Official letters addressed to the
complaint reporting unit at the
headquarters’ address, operational
In 2023, there were 277 reports submitted through
office, or CSR department at the site
the SPP, which have been followed up on and
location.
declared resolved by by the Human Capital Function
and the Company related to Employee Grievances.
PT Dharmas Satya Nusantara Tok | Sustainability Report 2023 4
Page 142
OO
al
; 4 GA
a
- a
13. Disclosure in
— Accordance with
Financial Services
Authority
[POIKS! G.4]
Page 143
SUSTAINABILITY STRATEGY
F.3 Impacts from Operational Areas Closetoor = 8-69
6
Elaboration of Sustainability Strategy Situated in Areas of Conservation or Contain
Bioxiversity
HIGHLIGHTS OF SUSTAINABILITY ASPECT
PERFORMANCE F.10 Biodiversity Conservation Efforts 68-69
Economic Aspect Emission Aspect
Environmental! Aspects 14-15 FT Amount and Intensity
of Emission Producedby 79
Social Aspect Type
F.i2 Efforts and Achievements Made in Emission 85
COMPANY PROFILE Reduction
Vision, Mission, and Sustainability Values
Waste and Effluent Aspect
BERSS x»
FAS Amount of Waste and Effivent Produced 30
Company Address
by Type
Business Scalp Waste and Effivent Management Mechanism 30
FAs
Products. Services and Business Activities
F.15 Landfill (ifany) 95
Membership in Association
Complaint of Environmental Aspect
Significant Changes of Issuer and Public
F.A6 Number and Contents of Recetved and Resolved «= 7
Company Environmental Complaint
STATEMENT OF THE BOARD OF DIRECTORS SOCIAL PERFORMANCE
Statement of the Soard of Directors 16-19 FAT Commitment to Provide Equal Product and/ 118
or Services to Consumers
SUSTAINABILITY GOVERNANCE Employment Aspect
Person in Charge for the Implementation F.16 Equality of Work Opportunities 37
121
of Sustainable Finance FAS Forded and Child Labours 97
Competency Development of Sustainable
F.26 Regional Minimum Wage 20
Finance
Risk Assessment for Lhe Implementation F.21 Decent and Safe Work Environment 2-113
ES
of Sustainable Finance F.22 Training and Capacity Building for 2
Engsaement with Stakehoiders Employees
issues Conceming the Implementation of Social Aspect
in
Sustainable Finance
F.23 Impact of Operations to Surrounding 99-100
Communities
SUSTAINABLE PERFORMANCE
F.24 Public Complaints: 99-100
Activitiesto build sustainable culture Corporate Social Responsibility {CSF} 99-100
F.25
ECONOMIC PERFORMANCE Activitles
Sustainable Finance Product and/or
Comparison ot Targetto Perlormance of
Production, Portfolio, Financing Target, or Service Development Responsibility
investment, Revenue and Profit/Loss. Innovation and Development of Sustainable 54
Finance Products/Services
F.3 Comparison of Target ta Performance of 59
Portfolio, Financing Target, or Investment in Number of Evaluated Product/Services for 18
Financial Instruments or Projects:in Line with Safety for Customers
the Sustainable Finance Impact of Products/Services 118
ENVIRONMENTAL PERFORMANCE Numiber of Product Recalled 18
General Aspects Survey of Customer Satisfaction.an Sustainable JG
Finance Product and/or Services
Environmental Costs 75
Material Aspects OTHERS
Use of Environmentally Friendly Materials Written Verification from independent 28
Party [if any)
Energy Aspects
Feedback Sheet 142
Amount and intensity of Energy Consumed 88-89
Response to the Feedback nf Previous 28
Efforts and Achievements Made for Energy
Year's Sustainabibty Report
Efficiency Including Use of Ronowable Energy
Sources Disclosure Listin Accordance with Financial 136
Services Authority Regulation Number SY
Water Aspect PORK.O3/2017
F.8 Water Consumption 92
PT Dharma Satya Nusantara Tok | Sustainability Roport 2023
Page 144
¢
14 GRI Content
— Index
Page 145
2-29 — Appreach to stakeholder engagement
§ 8
GRI Used 2-30 = Collective bargaining agreements
GRI 1; FONDAS! 2021
: Material Topics
MATERIAL TOPICS 2021
Applicable GRI Sector Standards S-1 Process to determine material topics 30
GRI 13: AGRICULTURE, AQUACULTURE $2 Dattartopksnvaterial 31-37
AND FISHING SECTORS 33 Management of material topics 31-37
Economic Performance
ECONOMIC PERFORMANCE 2016
General Disclosures
GENERAL DISCLOSURES 2021 201-1 Direct economic value generated
and 51
chatributed
2-1 Organizational details 39 201-2 Financial implications and other risks and 77
22 Entities ine in the organization's 228 opportunities dus to cimate change
sumainability reporting 201-3 Cefined
‘ei
benefit plan obligations and other 54
2-3 Reporting period, frequency and contact paint 28 Sas
; - 201-4 Financial assistance received from 53
2-4 Restatements of information 28 government
2-5 External assurance 29
- P Market Presence
2-6 Activities, value chain and other business 42 MARKET PRESENCE 2016
retationships
2-7 Employwes 46 202-1 Ratios of standard entry tevel wage by m
gender cornpared to local minimum wage
2-8 Workers Who ure not employees 47
202-2 = Propartion of senior management hired frarn m
29 Govemanee structure and composition 121 the local community
2-10 Nomination and selection of the highest 121
governance body gS Indirect Economic impacts
ECONOMIC IMPA’ 2016
2-11 Chair of the highest governance body 121 ats
212 — Role of the highest govemance body in 121 203) — Infrastructure investrients and services 107
overseeing lhe management of impacts supported
2-13 —_ Belegation of responsibility for managing impacts = 12] 203-2 Significant indirect economic impacts 60
2-14 Role of the highest govemance
body in 121
Sustainability report Procurement Practices
"a PROCUREMENT PRACTICES 2016
2-15 Conflictsof interest T21
m Proportion of spendi it
2-16 Communication of critical concerns 134 204-1 ne PI Ore Eee 62
2-17 Collective knowledge of the highest 123 cri aes
governance body 205 :
ANTI-CORRUPTION 2016
2-18 Evaluation
of the performance of the highest 23
governance body 205-1 Gperations assessed for risks retated 132-133
to comuption
2-12 Remuneration policies Y21
‘ ; 205-2 Communiceten
and training about anti 132-133
2-20
-? = Process to determine remuneration 121 Ped poilden and pr a
2-21 Annual total compensstion ratio 121
205-3 Confirmed incidents of corruption 132-133
2-22 «= Staternent
on sustainabie development 2 and actions taken
strategy
2-23 Policy commitments 29 Energy
ENERGY 2016
2-24 Embedding policy commitments 129
2-25 Processes to remediate negative impacts 129 302-1 Energy:consumption within the organization 88
2-26 Mechanisms for seeking advice and raising 134 302-2 Energy consumption outside of the 88
CONGONS organization
2-27 Compliance with laws and regulations 134 302-3 Energy intensity 89
2-258 Membership associations 48
PT Dharma Satya Nusantara Tok | Sustainability Report 2023 8
Page 146
302-4 Reduction of energy consumption
89 Employment
302-5 Reductions in eneray requirements 88 EMPLOYMENT 2096
of products
and services
601-1 New employee hires and employee 103
turnover
cri Water and Effluents
303 WATER AND EFFLUENTS 2018 401-2 Benefits provided to full-time employees that ™m
are not pravided to temporary or part-time
S035-) Interactions with water as a snared 93 employees
= 40)-3 ~~ Parental leave mW
303.2 Management of water discharge-related 91
impacts
Occupational Health and Safety
303-3 Water withcrawal 92 OCCUPATIONAL HEALTH AND SAFETY 2018
303-4 Waterdischarge 92
4034 Scoupational health and safety 12
303.5 Waterconsumptian 92 management system
403-2 Hazard identification, risk assessrnent, snd 3
cri Biodiversity incident investigation
ws BIODIVERSITY 2016
“O33 Occupational health services 114
304-1 Operational sites owned, teased, 68-71 403-4 Worker participation, consultation, and Tl4
managed in, or adjacent to, protected communication an occupational health and
areas and areas of high biodiversity value safety
ouside protected Srees 603-5 Worker vaining on occupational health and 114
204-2 Significant impacts of activities, products and 68 safety
services on biodiversity 403-6 Promotion of worker health 114
306-3 Habitats protected.or restored 72 403-9 Prevention and mitigation of occupational 15
s04-4 UCN Red List js Diaed pian 72 health and safety impacts directly linked by
conservation list species with habitats in business relationships
areas affected by operations 403-9 Workers covered by an occupational healthand = 472
safety management system
cn Emissions 603-9 Work-related injuries
"Emissions 2016 iia ' ns
603-0 Work-related ill health 114
3054 — Direct (Scope 1] GHG emissions 84
305-2 Energy indirect (Scope 2] GHG emissions 84 i) 7) Training and Education
Oy TRAINING AND EDUCATION 2016
305-3 9 Otherindirect (Scope 3) GHG emissions 84
305-4 \GHGemissions invensity 85 604-1 Average hours oftraining per yearperemployee 112
. ‘ 204-2 Programs for upgrading employee skills anc 112
305-5 'Raduction of CHG emissions 86 transition assistance programs
205-6 Emissions of ozone-depleting substances 86 LOG Percentage of employees receiving requiar 12
{ODS} performance and career development reviews
305.9 Nitrogen oxides {NOx}, sulfur oxides {SOx}, and 86
other significant air emissions
ani Waste
~~. waste 2020 | |
SOG) Waste generation and significant waste- 90 ;
related impacts The PT Dharma Satya
406.2 Management of significant waste- 90 Nusantara Tbk sustainability
related impacts report has been developed in
A : : a: *
306-3 Waste generated 95 accordance with the 2021
306-4 Waste diverted from disposal 90 Global Reporting Initiative
oJ . .
SOG-S Waste directed to disposal 95 (GRI) Standards, by
complying and following the
Agriculture Sector Standard.
Statement of use
PT Dharma Satya Nusantara Tok | Sustainability Report 2023 739
Page 147
Diversity ang
Equal Opport
DIVERSITY AND unity
EQUAL OPPORT
UNITY 2016 I Child Labor
Diversity of Jo CHILD LaBor
vernance bodic« and em 2016
ployees
Ratio of Casic 46
satay yard NOMNUN Opetstions 8N
WOoMen tomer Oration af d Suppliore ap
nH HNCISONS of
AGHVITICZIN bieie fee
chy Id labos 3
:
Non Diserimination Local Commun
NON-DISCRI ities
MINATION
2016 LOCAL COMMUN
ITIES 2016
INcictoncs OF Operations
disc TENINATI With foes! co
ON ane mmunity
SOFFECTIVE tic
tions Lakers 131 ONGAIGeM
NT 99
IMipect ASSOGEOtit
developmen g awed
t Programs
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th significant
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al COMMUnit
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Page 148
a Saytoys
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806
15 Feedback on aK
— This Report
Page 149
We thank you for reading this sustainability report, We hope to receive input to Improve quality and meet future
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QUESTIONS (YES/NO)
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his report is easy to understand. Yes No
This report has encouraged you to contribute to
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HOW IMPORTANT/INTERESTING IS THE PERFORMANCE BELOW (SCALE 1-10)
Economic Social Environmental
Performance Performance Performance
QUESTIONS (FREETEXT)
What information do you in.what aapect.doyou-think Other advice and
the Company needs to
recommendation:
foal need to be. added? improve its contribution?
STAKEHOLDER’S PROFILE
Shareholder/
in se Employee Consumer
Public Government Business Partner
Media NGO Others
y° Gender : -- Age :
@& Employee : * Latest Education :
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Thank You for Your
Participation
PLEASE RETURN THIS FEEDBACK SHEET TO THE
FOLLOWING ADDRESS:
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PT DHARMA SATYA NUSANTARA TBK
GRAHA DSN
J). Pulo Ayang Kav. OR3
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Kel. Jatinegara, Kec. Cakuna
Jakarta Timur - 13930, Indonesia
La 7 as
COMPANY WEBSITE EMAIL PHONE FAX
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16 Independent
— Assurance
Statement
The independent
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PT Bima Agri Sawit
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PT BAS
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org
PT Oharma Agrotama
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PT Dewata Sawit Nusantara
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PT OWT
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PT Oharma
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Satya NuSantars Tbk
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LOCATION
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PT Karya
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PT KPAS
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Persada
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PT OPS
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PT Prirna Sawit Andalan
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PT PSA
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PT Kencana Alam Permal
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PT Mitra Nusa Sarana
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PT MNS
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Oharma Satya Nusantars Tbk
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PT Dharma Satya Nusantera Tok
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PT Dharma Satya Nusantare Tok
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PT MNS COMM ORA TW SOCLAL ALEMONSLLILITY
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PT DPS Oe
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PT MNS DOharme
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Ministry of Manpower R OG
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PT SWAKARSA SINARSENTOSA Kalimantan Timur Whey Poreeshaes Tewertns
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PT Dharne
p.15
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indonesia Stock Exchange
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PT APN
p.17
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Dharmas Satya Nusantara Tbk
p.17 ×6
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PT SWeA's
p.18
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PT BRN
p.19
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Ministry of Environment and Forestry
p.19
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PT Gemilang Utama
p.19
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PT GUN
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Dharma Satys Nusantars Tbk
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PT Dharma Satya Nusantara Tok.
p.21 ×10
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PT Dharmas Satya Nusantara Tok
p.24 ×2
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org
PT Ohana
p.26
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org
PT Dharma Satya Nusantara Group
p.28
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person
Gita Syahrani
p.30
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person
Andrianto At
p.30
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Andriantoa Oetomo
p.30
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org
PT Obarms
p.30
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PT DSN
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PT Dharmas
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Financial Services Authority
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PT Dharmas Satya Nusantara Tek
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PT Dharma Satya Nusantara Tek
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Dharms Sotya Nusantara Tbk
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Satya Nusantara Tbk
p.46 ×5
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DSNG
p.46
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PT Krishna Kapital Investama
p.46
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PT Mitra Aneka
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PT Oharms Satya Nusantara Thk
p.47
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PT DWT
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PT PWR
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PT DHARMA SATYA NUSANTARA Thk
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PT Ohara
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PT Ohara Satya Nusantar Thk
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PT Dharma Sumber Energi
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Charme Satya Nusantara Tbk
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PT Otarma
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Charms Satya Nusanters Tbk
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PT Dharma Satya Nusantars Tok
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Dharma Satya Nusantars Tbk
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PT Dharma Satya Nusantarea Tok
p.85
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Minister of Environment Regulation
p.93
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Dharma Satya Nugantars Tbk
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PT Ohare
p.97
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PT Dharma Satya Nusant
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org
PT Dharma Satya Nusantars Thk
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Minister of Environment
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PT Onarma Satya Nusentara Tok
p.122
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