ENVIRONMENTAL
Being cognizant of the impact its operations may have on the environment, the Group has undertaken the following salient sustainable practices throughout
the financial year under review.
SUSTAINABILITY
STATEMENT
4
EFFLUENT MANAGEMENT
Palm Oil Mill Effluent (“POME”) is a significant by-product of processing FFB. Without appropriate treatment, the
effluent may be detrimental to the environment. We understand the importance of managing our environmental
impact by appropriately handling our effluent and water discharge.
Therefore, POME is properly treated and monitored by assigned competent person to ensure full compliance
with the Environmental Quality (Industrial Effluent) Regulations 2009 requirements. Our effluent treatment system
is adequately designed to meet the discharge parameters mandated. However, the quality of discharge may
be influenced by various factors including quantity of FFB milled and rainfall. The DOE comes for regular site
inspection and collects effluent sample at final discharge point for analysis.
The details of the POME produced during the financial year by our palm oil mills are as below:
| FY2023 | |
|---|---|
| POME produced (MT per MT of FFB processed) | 0.64 |
| Greenhouse gases captured (M³ per MT of FFB processed) | 21.98 |
In addition, the POME is also used as fertiliser by land application. POME application as fertilisers helps add extra
nutrients to the soil hence boost yields of oil palm.
5
WASTE MANAGEMENT
The way we manage our waste influences our environmental footprint and our social license to operate. Hence, we
observe strict internal controls in waste management to prevent mishandling and to ensure adherence to relevant
laws and regulations.
Domestic Management
We monitor our collection schedule and manage our waste as we focus on disposing our waste appropriately and
reducing our waste output.
Hazardous Waste Management
All scheduled wastes are handled in accordance with the Environmental Quality (Scheduled Wastes) Regulation
2005 requirements. Assigned competent person for all operation sites will periodically submit reports through the
DOE online reporting system (Electronic Scheduled Waste Information System).
The Group has always been committed towards regular monitoring of use of waste, especially those categorized
as hazardous materials, which consists of used lubricants, used rags, used batteries, used filters, empty paint cans
and printer cartridges, and needles from health clinics. We adhere to the government regulations on hazardous
waste handling.
At all operations hazardous wastes are safely segregated, labelled and stored. Our storage facilities are equipped
with accidental spill containment kits, firefighting gears, shower/eyewash and first aid kits.
Our Milling operations has generated 29.89 mt of Scheduled Wastes for the FY 2023. The details are as follows:
Scheduled Wastes breakdown (%)
We work with authorized and licensed third party to further process, recycle, and transport hazardous waste for
proper disposal in accordance with national legislations and international best practices. Each type of hazardous
waste will be handled in accordance with the regulations and procedure stipulated by the authorities.
Safety and Health Officers based in our mills have been properly trained and are qualified to monitor and ensure
that hazardous waste management practices are in accordance with the relevant rules. For our estate, there is at
least one person trained to perform the task. The Safety and Health Officer based on the mills will conduct periodic
spot check on scheduled wastes at the Group Estate to ensure compliance to the regulations.
Biomass Residue
The Group follows waste management best practice for our palm oil estates and mills and we seek to recover and
re-use all waste where possible. The waste produced from our production processes include empty fruit bunches
(EFB), mesocarp fibre, and palm kernel shells. These are recycled or re-used as energy or fuel and composed or
mulched as organic fertiliser. EFB is applied as mulch to conserve moisture, improve soil fertility, and minimise
weed growth.
The production of biomass residue is positively correlated with the production of CPO and PK. At present, we are
able to measure some of our biomass residue.
Biomass residue is a by-product of FFB processing, which in turn are excellent sources of natural energy and
fertiliser. Highlighted below is our performance data on biomass residue. We re-utilised almost all our Empty Fruit
Bunches (“EFB”).
| Empty Fruit Bunches | Palm Kernel Shells | Palm Fibres |
|---|---|---|
Methods of re-utilisation:
|
Methods of re-utilisation:
|
Methods of re-utilisation:
|
Other forms of biomass residue (trunks and pruned fronds) have been recycled as organic fertiliser.
Emission from the Boilers
We monitor our boiler emissions via the Continuous Emissions Monitoring Systems (“CEMS”), which is implemented
as part of local environmental regulations. The system monitors and concurrently updates the DOE on the contents
of our emissions.
6
WATER MANAGEMENT
Water is life. The availability and sustainability of clean water is essential for our sustainability. Resolving the
challenges of the future requires a thorough re-evaluation of how water is managed on our estates and palm oil
mills and how this can be repositioned in the broader context of overall water resources management and water
security.
From business point of view, maintaining a clean and uninterrupted supply of water constitutes one of the most
critical components in sustainable palm oil production. Water is crucial not only for the well-being of our crops
but also in other areas of our operations such as the well-being of our workers and as one of the key input to our
biogas power plant.
The water consumption statistics for our palm oil mill are as below:
| RAW WATER USED BY MILLING OPERATIONS FY2023 | |
|---|---|
|
Source Raw water obtained from surface water. Raw water purchased from third parties. |
% 99 1 |
| Total | 100 |
| Consumption of Water (m3) / per MT of FFB processed | 1.1 |
In line with our efforts to conserve water on our estates, we plant leguminous cover crops, wherever suitable
during replanting process to reduce evaporation water losses and conserve soil moisture storage. In our estates,
we have also constructed water conservation pits where practicable to collect water for irrigation purposes.
The Group recognises that maintaining good water quality is vital for safeguarding the health of our employees as
well as of the local communities. Measures are taken to set up water treatment plant to process and supply clean
water safe for human consumption. Collection of water sample is carried out at least once a year for testing of
water quality to ensure that it is safe for drinking and other daily usage.
Water Sampling
We take our responsibility of preventing contamination of the rivers due to effluent and water discharge from
our operations seriously. To do so, we conduct water sampling in these rivers. Water sampling is conducted by
external laboratories and the results are retained for reference. To date, there have been no instances of water
contamination in rivers surrounding our operations.
7
BIODIVERSITY AND CONSERVATION
We recognise that our operations are surrounded by local ecosystems and biodiversity. As a member of the
agricultural industry, we understand our role and responsibility in respecting these habitats and to support the
sustainability of surrounding ecosystems. We have therefore implemented practices and controls to minimise our
impact on the environment.
Riparian Reserves
Riparian reserves are areas of conservation between land and rivers teeming with life from the habitats of flora
and fauna. In order to support the existing ecosystem on these reserves and thereby maintaining the surrounding
water and soil quality, it is crucial that these reserves be identified and conserved. As part of our efforts, we have
identified and incorporated buffer zones and riparian reserves within our plantations.
To manage and preserve our riparian reserves, we plant Legumes Cover Crops (“LCC”) to prevent soil erosion. In
addition, LCC helps to improve the growth of oil palm by preventing weed growth and increasing the fertility of
soil by supplying organic matter.
High Bio-diversity Assessment (HBV)
We have carried out HBV assessments in our
plantations and mills and have identified protected
species in our surrounding areas. To protect the rich
biodiversity in our rainforest, we operate a strict
zero tolerance policy towards hunting, destroying,
logging or burning to protect species and wildlife.
Training on HBV Monitoring and Rehabilitation
is conducted for employees in our estates. This
training aims to ensure that knowledge on HBV
management and implementation of best-practices
is updated and relevant.
Environmental Impact Assessments
Prior to every replanting exercise, we perform
extensive Environmental Impact Assessments
(“EIA”) via third party consultants. EIA is performed
with the aim of minimising adverse environmental
impact from our replanting activities. For this
reason, criteria considered in an EIA report
includes:
- soil erosion/slope stability and soil conditions
- water and noise pollution
- potential loss of flora and fauna and their habitats
- waste disposal
- impact of replanting and abandonment
- socio-economic and ecological impact
- safety and health
Results of the EIA are reported to the DOE. We
take into consideration the EIA and a number
of other factors before a replanting exercise is
performed. This includes the age of the oil palm,
FFB yield, height of palm and areas with very low
palm stands.
Zero burning in land clearing
The Group adheres strictly to the policy of zero
burning in both new planting and replanting of oil
palm. Zero burning not only keeps the air smokefree but yields several benefits as well. The remnant
debris, comprising bushes or small trees which
are felled, are shredded and spread in the field
to biodegrade, releasing nutrients slowly, adds
valuable organic matter to the soils, reducing the
use of fertilisers during the immature period. This
policy is incorporated in the land clearing contract
in which external contractors are engaged.
Prudent use of paper practices
We acknowledge that the environmental impact of
paper usage is significant. Our approach is to avoid
unnecessary paper consumption and waste
generation, where possible and appropriate. We
always look at ways to reduce paper usage and
encourage the usage of electronic platforms such
as WhatsApp social media, SMS and email as
efficient alternative modes of communication with
our suppliers and customers and for our day-to-day
internal operations, and to use recycled paper to
print any document where possible.
Electronic publications
To reduce the consumption of paper, the Annual
Report of the Company is published on the
Company’s website: www.kimloong.com.my for
access by shareholders and investors.
8
INTERGRATED PEST MANAGEMENT (“IPM”)
IPM is a component of GAP which incorporates
use of cultural, biological, mechanical and
physical methods to minimise use of chemicals
and pesticides. Implementation of IPM, wherein
responsible use of chemicals and pesticides is
paramount to ensure safety of our workforce,
local communities and the environment where we
operate. This is achieved through due diligence and
justification process prior to use of chemicals and
pesticides, thus limiting introduction of hazardous
agents to the open environment.
IPM also enforces the requirement for the Group
to proactively work towards reducing the usage of
chemicals and pesticides by applying alternative
non-hazardous means of pest management like
using native biological controls. This approach
requires surveillance and monitoring of pests
and diseases, and ensures no prophylactic use
of chemicals and pesticides unless in exceptional
circumstances as identified within the local legal
requirements.
Some of the IPM techniques carried out by the
Group include:
- Propagation of beneficial plants such as Cassia Cobanensis, Antigonon Leptopus and Turnera Subulata to increase population of predators of pests that could control the population of bagworms and nettle caterpillars on our Group’s estates.
- Use of pheromone traps to minimise damage to young palms by rhinoceros beetles.
- Shredding felled trunks into chips of acceptable size to suppress the breeding of rhinoceros beetles.
To enhance the effectiveness of IPM and safe
use of chemicals and pesticides, training and
field demonstrations are regularly conducted by
the chemical suppliers for estate personnel from
our management to our workers. This training
encompasses identification of various pests
and diseases in oil palm, safe procedures to
apply chemicals and pesticides, and the proper
procedures to adhere to in managing the pests and
diseases of oil palm.
9
NO DEFORESTATION, NO PEAT AND NO EXPLOITATION COMMITMENT (“NDPE”)
We work closely with the widest possible range
of industry stakeholders to implement our NDPE
commitments in relation to:
No Deforestation
a)
To ensure protection of areas with High
Conservation Value (“HCV”) and High Carbon
Stock (“HCS”) by identifying and protecting
these areas through activities benchmarked
to the relevant national, industry and
international best practice.
b)
Any plantation development activity must
identify HCV areas and HCS forests for
protection utilising international best practice
guidance.
c)
Where feasible, explore options for natural
forest restoration by working with expert
stakeholders and communities.
No New Development on Peat
a)
No new development on peat land regardless
of depth.
b)
Best Management Practices for existing
plantation on peat will be stringent
and aligned with national, industry and
international best practices, which includes
guidelines provided by MPOB. Additionally,
peat land management shall follow good
agriculture practices laid out in our policies,
codes and SOPs.
c)
Where feasible, explore options for
peat restoration by working with expert
stakeholders and communities.
No Exploitation of People and Local Communities
To ensure no exploitation issues, we concern ourselves with:
a)
Upholding human rights.
b)
Providing safe and healthy workplace.
c)
Enhancing employee welfare and promoting
career development.
d)
Respecting and upholding land rights.
e)
Creating shared value for local and national growth.
10
REDUCTION OF GREENHOUSE GAS EMISSION
The Group has successfully implemented three (3)
methane capture and power generation projects
at its three (3) mills which reduce greenhouse
gas emissions as well as supply low-cost steam
and electricity for milling operations and other
downstream activities of the Group. The project
implemented in our Kota Tinggi mill was the first
project on biogas generated from POME that is
registered with the Clean Development Mechanism
(“CDM”) Executive Board of United Nations
Framework Convention on Climate Change. The
Group has through the operation of the biogas
generation plants been able to generate energy
from waste material and biomass. This contributes
towards reducing our environmental impact and
improve sustainability of the Group’s operation.
Capital investments have been made for pollution
controls such as capturing GHG, reducing dust
concentration emitted, improving POME treatment
efficiency and quality of POME discharged. The
estimated cost of investment is approximately
RM26 million.
The details of renewable energy generated by the Group using gas engines for the financial year was 17,490 MW.
| Internal use | Supplied to grids | |
|---|---|---|
| FY2023 | 6,816 MW | 10,674 MW |