Cargill gets green seal of approval from Indonesia for its palm oil mills

Five palm oil mills at Cargill’s PT Hindoli and PT Harapan Sawit Lestari oil palm plantations in Indonesia were recently recognised for achievements in environmental management by the Indonesian Ministry of Environment and Forestry and Ministry of Industry.

Cargill’s Tanjung Dalam mill and Paku Juang and River View mills received Blue awards, while its Sungai Lilin mill and Manis Mata mill received Green awards in Indonesia’s Program for Pollution Control, Evaluation and Rating (PROPER) 2016 in the Agroindustry category.

The awards were presented to Cargill at a ceremony held at the office of the vice president of the Republic of Indonesia, H. Muhammad Jusuk Kalla, on 7 December, 2016. The vice president was joined by Environment and Forestry Ministry Siti Nurbaya.

Cargill’s environmental best practices were further lauded by Industry Minister Airlangga Hartato at the Green Industry Awards 2016 on 20 December. Hindoli’s Sungai Lilin and Tanjung Dalam mills received the highest award, Level V, for their sustainable production processes.

“We are very grateful for the recognition received by the Vice President of Indonesia, Bapak Jusuk Kalla, the Minister of Environment and Forestry, Siti Nurbaya, and the Minister of Industry, Bapak Airlangga Hartato. Cargill is pleased to contribute to Indonesia’s development in tandem with our global commitment to operate responsible supply chains,” said John Hartmann, chief executive officer of Cargill Tropical Palm Holdings.

He added: “These awards from Indonesia’s government will inspire our Indonesian teams and their global colleagues to continue advancing environmentally and socially responsible practices.”

According to Cargill, both awards are testament to the company’s ongoing pursuit of its global environmental goals – using energy and fresh water more efficiently, reducing greenhouse gases (GHG), and drawing power from renewable energy sources - all of which bring economic, environmental and social benefits to customers, communities and businesses.

Since 2012, three of Cargill’s palm oil mills have made significant improvements in energy¹ and fresh water² efficiency, and seen a reduction in GHG intensity³.

As of May 31, 2016; from a 2012 baseline4:

  • Sungai Lilin mill: 10.70% improvement in energy efficiency, GHG intensity improved 0.60%, and fresh water efficiency improved 3.70%
  • Manis Mata mill: 13.25% improvement in energy efficiency, GHG intensity improved 5.00%, and fresh water efficiency improved 17.43%

As of May 31, 2015; from a 2012 baseline5:

  • Tanjung Dalam mill: 2.24% improvement in energy efficiency, GHG intensity improved 2.60%, and fresh water efficiency declined 4.17%

All three mills run on 100% renewable energy sourced from the conversion of palm kernel shells and fiber into electricity by the mills’ biomass boilers. This clean energy source extends beyond the mills’ operations; powering close to 700 Cargill employee homes around the mills.

In addition to the recognition for Cargill’s sustainable oil palm plantation business this year, nine other Cargill subsidiaries in Indonesia (feed mills, starches and sweeteners plants and a copra crushing plant) also received the Blue PROPER rating. Cargill’s copra crushing plant in Amurang, North Sulawesi, also received the Green Industry Award (Level IV), which is the second highest achievement in the awards program.