Golden Agri-Resources (GAR), one of the world’s leading integrated agribusiness and palm oil companies, has released its Sustainability Report 2025, showcasing significant achievements during the first full year of implementing its ambitious Collective for Impact sustainability framework. The report outlines meaningful progress across the company’s three strategic sustainability pillars—Sourcing Responsibly, Caring for Our Planet, and Empowering People—demonstrating GAR’s commitment to embedding sustainability into every aspect of its business operations.
Despite ongoing economic uncertainty, evolving regulations, and increasing pressure on global supply chains, GAR reported measurable advancements in environmental stewardship, supply chain transparency, smallholder development, and community empowerment. The company emphasized that sustainability is no longer treated as a separate initiative but has become a core component of business strategy, operational decision-making, and long-term growth planning.
Sustainability at the Heart of Business Strategy
According to GAR Chairman and Chief Executive Officer, Mr. Franky O. Widjaja, the Collective for Impact framework serves as a roadmap for integrating sustainability considerations into business decisions and corporate governance.
Widjaja noted that global businesses face an increasingly complex operating environment shaped by climate challenges, shifting regulations, and changing consumer expectations. In response, GAR is focused on maximizing productivity from existing agricultural land while ensuring responsible management practices that protect natural resources and support long-term resilience.
He emphasized that sustainability must play a central role in managing risks, identifying opportunities, enhancing product quality, and maintaining competitiveness in a rapidly changing marketplace.
The 2025 Sustainability Report demonstrates how the company is translating these commitments into tangible actions and measurable outcomes across its operations and value chain.
Strengthening Supply Chain Transparency and Traceability
One of the key highlights of the report is GAR’s continued progress in improving supply chain transparency and responsible sourcing practices.
Building on more than a decade of experience in sustainable palm oil supply chain management, GAR achieved 100% traceability to the mill for all non-palm agricultural commodities sourced under its Responsible Agri-Commodity Sourcing Policy. This milestone provides greater visibility into the origin of raw materials and strengthens the company’s ability to identify and address environmental and social risks throughout its supply chain.
Enhanced traceability allows GAR to move beyond risk assessments and take proactive steps to engage suppliers, improve agricultural practices, and build capacity among stakeholders. The company is working closely with suppliers to help them comply with emerging sustainability regulations and market requirements.
Particular attention has been given to preparing supply chains for compliance with major European regulations, including the European Union Deforestation Regulation (EUDR) and the EU Corporate Sustainability Due Diligence Directive. These regulatory frameworks require companies to demonstrate that products entering European markets are free from deforestation and produced in accordance with environmental and human rights standards.
GAR also reported strong progress in implementing its No Deforestation, No Peat, and No Exploitation (NDPE) commitments. Under the NDPE Implementation Reporting Framework (IRF Version 5.8), the company achieved 100% “delivering” status for its Indonesian palm oil sourcing operations, reflecting full alignment with the framework’s sustainability expectations.
Furthermore, GAR has become one of the early adopters of the updated IRF Version 6.0 methodology, introduced in January 2026. Using the revised assessment framework, the company currently reports an 82.6% “delivering” status, indicating strong performance while continuing to work toward its ambitious goal of achieving full compliance by 2030.
Advancing Climate Action and Decarbonization
Climate action remains a central focus of GAR’s sustainability agenda, with the company accelerating efforts to reduce greenhouse gas emissions and expand renewable energy usage across its operations.
The report reveals that renewable energy now accounts for 54% of GAR’s total energy consumption, representing an important milestone in the company’s transition toward lower-carbon operations.
A significant contributor to this achievement is the use of biomass energy generated from plantation waste. More than 90% of GAR’s upstream operations are now powered by biomass-based energy sources, reducing dependence on fossil fuels while creating value from agricultural byproducts.
GAR continues to invest in practical and scalable decarbonization solutions that can deliver measurable environmental benefits. During 2025, the company expanded its renewable energy infrastructure and commissioned three new methane capture facilities.
Methane capture technology plays a critical role in reducing emissions from palm oil production processes by preventing methane—a greenhouse gas significantly more potent than carbon dioxide—from being released into the atmosphere. Instead, captured methane can be utilized as a renewable energy source, further supporting the company’s clean energy objectives.
Through investments in methane capture systems, biomass utilization, and renewable energy infrastructure, GAR achieved a 3.6% reduction in Scope 1 and Scope 2 greenhouse gas emissions during 2025.
When combined with broader value-chain initiatives, the company reported a 4.6% year-over-year reduction in total Scope 1, Scope 2, and Scope 3 emissions, highlighting progress toward its longer-term climate goals and commitments.
Supporting Smallholders and Building Supply Chain Resilience
GAR recognizes that smallholder farmers play a critical role in the sustainability and resilience of agricultural supply chains. As a result, enhancing smallholder productivity and livelihoods remains a cornerstone of the company’s long-term strategy.
In 2025, GAR expanded its Sawit Terampil program, reaching more than 11,000 independent smallholder farmers. The initiative provides training, technical assistance, and best-practice guidance aimed at improving agricultural productivity, sustainability performance, and farm profitability.
The achievement marks significant progress toward GAR’s long-term target of supporting 100,000 smallholders by 2035.
The program also contributed to improved sustainability certification outcomes. More than 1,000 participating farmers successfully obtained certification from the Roundtable on Sustainable Palm Oil (RSPO), enabling them to access new market opportunities and demonstrate compliance with internationally recognized sustainability standards.
By helping farmers adopt responsible cultivation practices and improve yields on existing land, GAR aims to strengthen supply chain resilience while reducing pressure for agricultural expansion into environmentally sensitive areas.
Empowering Communities and Local Economies
Beyond its environmental and agricultural initiatives, GAR continues to invest in community development programs designed to improve economic opportunities and strengthen local resilience.
The company expanded its Bright Future Initiative throughout palm-producing regions, focusing on youth development, entrepreneurship, education, and community empowerment.
During 2025, GAR partnered with 182 villages and implemented 280 community development projects. These initiatives addressed a wide range of local priorities, including infrastructure improvements, education support, livelihood development, and social welfare programs.
GAR also increased support for local entrepreneurship through partnerships with 163 Micro, Small, and Medium Enterprises (MSMEs). By providing capacity-building opportunities, business development assistance, and access to resources, the company aims to help local businesses grow and contribute to more resilient rural economies.
These efforts align with GAR’s broader vision of creating shared value across its operating regions by ensuring that communities benefit from sustainable agricultural development and economic growth.
Source Link:https://www.goldenagri.com.sg/
