Sustainable Palm Oil Production for People and Planet

We believe that palm oil should be produced sustainably. At each of our plantations, we have clear social and environmental policies and integrate responsible development into our operational plans. In addition, we are making a substantial contribution to local community development. 

Since 2004, we have been a member of and actively support the efforts of the Roundtable on Sustainable Palm Oil (RSPO), working toward certification across all our palm oil plantations in line with industry best practices and regulatory requirements. Since 2014, Cargill has further strengthened its sustainability journey through several key initiatives, including: 

• Launching a Sustainable Palm Oil Policy through which Cargill strives to build a traceable and transparent palm oil supply chain, with a clear focus on no deforestation of high conservation value (HCV) lands or high carbon stock (HCS) areas; no development on peat; and no exploitation of the rights of indigenous people and local communities. We collaborate with and seek the support of suppliers, customers, governments, non-governmental organizations, and other stakeholders to implement this policy. 
• Publishing a roadmap to achieve a fully traceable and sustainable supply chain. In March 2017, our first progress update of the year included our Palm 2020 Roadmap, which outlined our path toward a fully transparent, traceable, and sustainable palm supply chain. 
• Becoming a signatory to the Sustainable Palm Oil Manifesto in 2014, which further commits Cargill to no deforestation, creating traceable and transparent supply chains, and protecting peat areas, while ensuring economic and social benefits for the local people and communities where oil palm is grown. 
• Joining other large companies, governments, and civil society groups from around the world in pledging to contribute to global efforts to address deforestation and enhance food security, as part of the New York Declaration on Forests during the 2014 UN Climate Summit. 
• In 2024, we strengthened our commitment to Traceability and NDPE (No Deforestation, No Peat, No Exploitation) across Cargill Tropical Oils’ supply chain. We worked closely with our suppliers to improve transparency, applied stricter monitoring measures, and reported our progress more openly. Through these efforts, we continued to move toward a fully traceable and deforestation-free supply chain, while also supporting smallholders and promoting responsible practices across the industry. 
• In 2024, we achieved full traceability to plantation (TTP) for all volumes sourced across our palm oil mills and kernel crushing plants, as well as full traceability to mill (TTM) for the Lampung refinery. These results reflect our continued progress in ensuring full visibility and accountability throughout our operations.

 

Supporting local smallholders

Palm smallholder farmers contribute significantly to the success of our plantations. Cargill works directly with thousands of farmers to help them increase yields, improve incomes, and raise standards of living. 

Smallholders are integral to our supply chain. In Indonesia, Cargill works with more than 24,000 smallholders to achieve RSPO standards, improve crop quality, maximize yields, and build their brands both locally and internationally, while also supporting improved livelihoods. As of 2024, 24,640 hectares of Cargill’s smallholder plantations have received RSPO certification, representing approximately 77% of all scheme smallholder certifications. We have trained 100% of our scheme smallholders in Good Agricultural Practices (GAP) and our NDPE commitments. Through tailored training programs, we equip smallholders with the knowledge and skills to meet sustainability standards, increase yields, and uphold responsible practices across the supply chain.

As of 2024, five of Cargill’s mills source fresh fruit bunches (FFB) internally, while four mills source from both internal and external suppliers. Collectively, Cargill’s nine mills source FFB from our own Inti-owned estates (65%), scheme smallholders (23%), and independent smallholders (12%). Scheme smallholders currently cultivate 31,690 hectares of planted area, alongside 78,626 hectares managed by Cargill-owned estates. This shared commitment highlights the essential role of smallholders in advancing a more sustainable, inclusive, and resilient palm oil sector.

Through a formal contract, Cargill shares premiums from certified sustainable palm oil with its smallholders. In 2011, PT Hindoli smallholders were the first in the world to receive their first premiums from the sale of RSPO-certified fresh fruit bunches which they produced.

 

Partnership with the local community and farmers

We work with smallholders and the local community to improve the efficiency and effectiveness of agricultural and farming practices. Our aim is to promote sustainability, improve yields and crop quality, and ultimately raise smallholders’ incomes in the communities where we operate. 

• Cargill has provided support and training to oil palm smallholders to get RSPO certified. We developed a formal program to share palm oil premiums from the sale of RSPO-certified products. Our smallholders at Hindoli received their first RSPO premiums in 2011 and in 2016 received over US$1,9 million (IDR 25,007,014,082) in combined RSPO/ISCC premiums over US$3 million (IDR 309,606,472,491). Our smallholders at Harapan received their first RSPO/ISCC premiums totaling US$190,000 in December 2015.
• Since 2021, we have partnered with Save the Children to improve financial well-being, economic resilience, and hygiene-related health outcomes among local communities in Ketapang District, West Kalimantan. Our three-year program focused on empowering communities and concluded in December 2024, engaging 8,100 direct participants and 30,000 indirect participants across 20 villages.
• We launched the CARE-Cargill Resilience Building with holistic approach for Women in Palm Oil Communities project in 2022 to support and empower women in South Sumatra, Indonesia. As of February 2025, we have reached over 4,900 people (81% women) directly and more than 100,000 people (55% women) indirectly with programs that expand economic opportunity, empowered gender equality, strengthen leadership skills, promote good health and nutrition, and boost community resilience.
• Through the national Women’s Farmer Group program, we have continued to support the development of nearly 50 all-female groups in 13 villages in Musi Banyuasin District, with approximately 750 members and supported the establishment of over 220 gardens with equipment, seeds, and extension workers. We promoted financial access with 13 women-led Village Savings and Loan Associations (VSLAs) with nearly 512 members.
• In 2024, Cargill reached a significant milestone in its journey toward a transparent, traceable, and sustainable palm supply chain. Cargill awarded the first RSPO premium to the independent smallholder group Perkumpulan Petani Mitra Harapan (PPMH) in Ketapang Regency, West Kalimantan Province. PPMH, which obtained its Roundtable on Sustainable Palm Oil (RSPO) certification in 2023, sent their certified fresh fruit bunches (FFB) physically to our IP Mill. The RSPO premium was awarded for their ability to meet rigorous agricultural, legal, environmental, and social standards. The RSPO premium helps to incentivize smallholders financially and encourages sustainable palm oil production.

  • As of 2025, through its partnership with Cargill, 2,286 independent smallholders have successfully obtained RSPO certification. Their certificates are available here:

    1. Perkumpulan Pekebun Swadaya Mitra HIndoli (PPSMH)

    2. Perkumpulan Pekebun Sawit Ketapang (PPSK)

    3. Perkumpulan Petani Mitra Harapan (PPMH)

 

Greenhouse Gas (GHG) Emissions

Cargill Tropical Palm (CTP) has conducted a comprehensive GHG inventory to assess emissions across our operations and supply chain. We identified the most significant emission sources and developed a mitigation plan covering both mill and plantation operations. Key emission sources include land use change, palm oil mill effluent (POME) processing, fertilizer and pesticide use, fossil fuel consumption for operations and transportation. 

Our mitigation strategies focus on: 

• Applying fertilizers at recommended dosages to optimize efficiency 
• Reducing, reusing, and recycling materials where possible 
• Improving energy efficiency through limited electricity use 
• Maintaining transportation fleets and machinery to lower emissions 
• Conducting regular air quality monitoring 

Seven methane capture facilities are now operational at our mills in South Sumatra and West Kalimantan, converting biogas from wastewater treatment into renewable energy. These efforts have reduced emissions by approximately 105,000 metric tons of CO₂e to date. At Manis Mata and Sei Kerandi Mills, captured methane powers mill operations and supplies electricity to surrounding communities—enhancing local energy access and strengthening grid resilience. We are also pursuing opportunities to harness methane at five additional mills for beneficial use. 

GHG emissions at CTP are calculated using the RSPO PalmGHG Calculator, with data inputs verified by the Certification Body’s RSPO auditors against operational records. The total emission from land use conversion in our own plantation and scheme smallholders plantation in 2024 is approximately 950,000-ton CO2e.

 

Water Use Intensity

Across our palm oil mill and plantation operations, we implement a comprehensive water management plan to promote efficient use of water resources, safeguard long-term availability, and prevent negative impacts on other users within the catchment area. 

Our approach includes: 

• Surface water and bore well quality testing is conducted regularly by a KAN-accredited laboratory (LP-231-IDN). 
• Regular reporting of total water consumption and effluent discharge to the Government of Indonesia, as required under the Social and Environmental Impact Assessment (AMDAL). 
• Treatment of mill effluent to ensure full compliance with national environmental regulations. Discharge quality, particularly Biological Oxygen Demand (BOD) and Chemical Oxygen Demand (COD), is closely monitored and reported. 
• Effluent application through both land application systems and river discharge, with strict monitoring to protect water quality. 

In 2024, water intake decreased to 0.88 m³/MT FFB (a 4% reduction from 2023) and discharge to 0.81 m³/MT FFB (a 3.6% reduction). These improvements demonstrate our continued focus on resource efficiency and responsible water stewardship. 
 

Chemical Use and Integrated Pest Management

The use of agrochemicals such as pesticides in our plantations is limited to chemical weeding and pest control, and only when necessary. This practice is part of our commitment to reducing pesticide usage and minimizing environmental impacts through the implementation of its Integrated Pest Management (IPM) program. 

We prioritize natural predators and alternative pest control methods to reduce reliance on chemicals and support environmental preservation. When pesticide application is unavoidable, strict procedures are in place for the safe handling and disposal of hazardous materials.  

We prioritize organic fertilizers made from mill byproducts and carefully manage the use of inorganic fertilizers to ensure efficient and responsible application. Total Chemical Fertilizer and Pesticide Usage in 2024: 233.94kg/ha.