HCV Assessment

The Company initiated its HCV assessment in 2015 through the National Interpretation of High Conservation Values, as incorporated into the Guidelines for the Identification of HCVs in Indonesia 2008. As the global HCV framework evolved, this document also incorporated the Common Guidance for the Identification of HCV 2013 published by HCV Resource Network.

HCV assessment results conducted by Indonusa Group are also reviewed by assessors who are licensed under the Assessor Licensing Scheme (ALS) and are registered with the HCV Network.

Recovery Plan Programme

Corresponding to the Company's commitment to enhancing ecosystem sustainability, remediation is also planned. This is in line with UN SDG 13 (Climate Action) and 15 (Life on Land), which focus on conserving terrestrial ecosystems and reducing climate change impacts.

Liability assessment is a scientifically based and rigorously reviewed process. Its purpose is to provide remediation and compensation for changes in land covers that have taken place since January 2016. Forest cover change analysis follows methodologies established by the International Panel on Climate Change (IPCC). This approach essentially involves tracking and identifying deforested areas, which then inform the development of the Company's recovery plan. This plan is designed to ensure that the Company's future supply chain is free from deforestation and determine the extent and types of compensation required to offset biodiversity loss, carbon emissions, and their impacts on local livelihoods.

This Recovery Plan is certainly in line with the FOLU Net Sink 2030 as mandated by Presidential Regulation No. 98/2021 on the Implementation of Carbon Pricing to Achieve the Nationally Determined Contribution Target and Control over Greenhouse Gas Emissions in National Development. Article 3 paragraph (4) of this regulation indicates that GHG emission reduction is mainly supported by the forestry sector, where forest serves as carbon storage, through the carbon net sink approach (carbon net sink refers to the amount of carbon emissions sequestrated is larger than those released). This program employs four main strategies, i.e., prevention of deforestation, sustainable forest management and conservation, peatland protection and restoration, and carbon sequestration improvement.