Sustainable plantations

Driving Change Through Sustainable Plantation Practices

As a responsible global corporate citizen, Cargill seeks to drive sustainable, progressive and positive change wherever it is needed across all the sectors we work in. In Indonesia, we strongly believe in supporting the local communities around our palm plantations in South Sumatra and West Kalimantan. Our investments enhance agricultural production; develop infrastructure and support education, healthcare, and other needs of local communities.

At our plantations, we operate more than 32 medical clinics and 32 nurseries to provide complimentary healthcare and support services to our employees and their families. We also provide regular medical assistance to villages in collaboration with local doctors and medical care units. Furthermore, our employees and their families live for free in the over 8,000 houses we have built, and they are able to practice their faith at the 42 mosques and six churches that we have also built.

Education – the key to enabling the community to thrive

Recognizing the role of education in society, Cargill has introduced a number of initiatives to promote education in the community. Cargill aims to provide an education that prepares the children of our employees as well as from the local communities around our oil palm plantations in South Sumatra and West Kalimantan, to be competitive globally.

In 2012, we supported the establishment of an education foundation, Yayasan Harapan Masa Depan Cerah (YHMDC), or Hope for a Brighter Future Foundation, to manage schools and educational programs located on our plantation sites. YHMDC funds the building of schools, the expansion of classrooms and teaching facilities, and oversees the running of 48 nationally accredited schools and teaching facilities.

Ensuring its curriculum adequately prepares students for a globally connected future with the inclusion of English language and character education classes, YHMDC employs 366 teachers across kindergartens, primary schools and middle schools, as well as sponsors government and teacher association programs to improve the competency of teachers and the quality of education in our communities. To date, over 6,000 young Indonesians are schooled by YHMDC.

DEI and Women Protection

In 2021, Cargill’s palm oil business unit successfully launched the first RP3 (Women Workers’ Safe House) in Indonesia's plantation sector. This initiative aims to protect, support, and prioritize the wellbeing of all employees, with a special focus on women workers. It works to ensure a safe and respectful workplace, free from harassment, discrimination, and violence, in alignment with Cargill’s Guiding Principles and our unwavering commitment to treating all individuals with dignity and respect.

The RP3 in our business unit in South Sumatra, PT Hindoli, is managed by the DEI (Diversity, Equity, and Inclusion) Committee. The committee is committed to building an inclusive working environment through three focus areas: conducting DEI events across locations, overseeing DEI facilities, and running RP3 services.

In 2024, we expanded the RP3 scope to our West Kalimantan operations and began building this organization under the DEI Committee as well.

The establishment of the DEI Committee has reinforced and synergized the protocols for workers' rights protection within Cargill’s palm oil business through collaboration with various stakeholders. We conduct regular training and awareness programs to improve DEI understanding. Across our palm oil operations in West Kalimantan and South Sumatra, DEI is more than a program. It is embedded in every aspect of our operations: from the plantations to the offices, the plants, our homes, and beyond.

Our Commitment to Protecting Natural Ecosystems, Biodiversity, and Upholding a No-Hunting Policy

At Cargill, we understand that long-term business sustainability is intrinsically linked to environmental, health and safety (EHS) for our employees and contractors, product quality, and the responsible use of natural resources across all operations.

We are committed to full compliance with all applicable environmental laws and regulations. We work proactively to prevent pollution, implement the 4R principles (Reduce, Reuse, Recycle, Replace), and continuously improve our environmental performance to safeguard business continuity and preserve ecological balance.

Our palm business unit is equally committed to adhering to government regulations and corporate standards related to OHS. We prioritize the prevention of injuries, illnesses, and damage to company assets—ensuring that all work, regardless of urgency, is carried out with the highest regard for safety.

In terms of product quality, we are dedicated to delivering food products that are safe, high-quality, and meet or exceed customer expectations. We ensure that all raw materials (Fresh Fruit Bunches) and production processes comply with legal, customer, and corporate requirements. Our focus remains on maximizing productivity, optimizing costs, embracing sustainable innovation, and driving continuous improvement in line with our business and operational goals.

To uphold these commitments, we will:

Comply with and exceed environmental, EHS, and quality standards through national and international certification, as well as corporate audits.
Actively identify and mitigate occupational health risks, placing a strong emphasis on employee safety, well-being, and safe work practices.
Prevent pollution, conserve energy, promote the use of renewable alternative fuels, apply no-burn land clearing methods, reduce greenhouse gas (GHG) emissions and conventional pollutants, and manage hazardous and non-hazardous waste responsibly.
Implement water conservation initiatives, prevent contamination of water sources, reduce the pollutant load from both industrial and domestic wastewater, and protect water ecosystems to maintain environmental balance.
Design and deliver safe, high-quality products; strengthen customer satisfaction efforts; and require all suppliers to operate responsibly and sustainably.

Refrain from opening new land for development beyond 2019. We are fully committed to protecting and preserving natural ecosystems, peatlands, and biodiversity. We continue to strengthen our conservation efforts, conduct regular monitoring of conservation areas, and uphold a strict zero-tolerance policy on wildlife hunting and trade, both within and beyond our operational sites.

We embed these targets and programs into our short- and long-term business strategies, use them to guide decision-making, and regularly monitor and review our performance to ensure progress and continuous improvement.

We also provide the resources and support our employees need to understand, implement, and take ownership of our policies and to actively contribute to our collective goals.

At Cargill, we believe that collaboration with stakeholders must be consistent, effective, and rooted in shared values. We are committed to empowering the communities where we live and work, growing together for a more sustainable future.

Biodiversity and Conservation

As part of upholding our commitment to biodiversity conservation, Cargill has implemented programs in West Kalimantan and South Sumatra, both within and beyond our concession areas.

To protect and enhance the quality of essential riverbank ecosystems in West Kalimantan, we launched a riparian land rehabilitation program for buffer zones. Through the establishment of nurseries and the planting of fast-growing tree species, we have restored more than 23 hectares of land. Wildlife monitoring has identified 25 protected or endangered species within the conservation area, with biodiversity levels remaining high.

In South Sumatra, following a devastating fire on a neighboring property, we have spent the past six years restoring a peat swamp forest. Through careful species selection, tree planting, and continuous monitoring, we are seeing positive trends in biodiversity and surface water levels, which help reduce fire risk and strengthen ecosystem resilience.

We are also engaged in the Nanga Lauk Community Village Forest Conservation Project in West Kalimantan. This initiative supports indigenous communities in protecting biodiversity and critical ecosystems through sustainable land-use practices and compliance monitoring. Cargill has committed an investment of USD 3.5 million over the next two decades to support this project. Working closely with the community, we aim to strengthen local livelihoods while safeguarding ecosystems, ensuring conservation efforts anticipate both opportunities and potential risks linked to our operations.

Further details and additional information are available in the full report.

In total, our conservation efforts encompass:

High Conservation Value Areas (HCV): 11,556 ha
Other Conservation Land Set Aside (in situ): 2,560 ha
Nanga Lauk Community Village Forest Conservation Area (ex situ): 1,430 ha

This reflects our commitment to biodiversity protection across HCV/HCS areas and alignment with IUCN Categories I–IV protected areas associated with our palm oil mill and plantation operations.

We refrain from opening new land for development beyond 2019. We remain fully committed to protecting and preserving natural ecosystems, peatlands, and biodiversity within our own plantations.

Recognitions:

In 2014 and 2013, we received the ‘Mitra Bakti Husada’ (Dedicated Health Partner Award) by the Indonesian Ministry of Health for our implementation of comprehensive healthcare programs, including maternal healthcare and nutrition initiatives for employees and the local communities around our PT Harapan Sawit Lestari and PT Hindoli plantations.
PT Hindoli received an award for the implementation of a biomass boiler as a renewable energy source for the company’s electricity needs and also received the Social Business Innovation Award in the Agribusiness category on August 25, 2016, for the company’s innovation and social responsibility that have made a positive contribution to society and the environment.
PT Hindoli received the "Investment Award" from the Governor of South Sumatra in 2018. This award recognized PT Hindoli’s outstanding efforts in operating a sustainable, progressive, and responsible business in South Sumatra.
PT Hindoli received an award from the Government of South Sumatra for its efforts to prevent, monitor, and control forest and land fires in 2018.
In 2019, six of Cargill's palm oil mills received awards from the Indonesian government for their sustainable production processes and were awarded the 2019 Green Industry Award Level V.
Two of Cargill’s palm oil mills in South Sumatra, Sungai Lilin and Tanjung Dalam mills, received Green ranking awards in the 2019 Corporate Performance Rating Program in Environmental Management (PROPER) from the Ministry of Environment and Forestry (KLHK) of the Republic of Indonesia for their achievements in environmental management.
In 2021, the Ministry of Health of the Republic of Indonesia presented the Mitra Bhakti Husada Award to PT Hindoli as a company and institution that implemented the Healthy and Productive Female Workers Movement (GP2SP) and Occupational Health and Safety (OHS/K3).
In 2021, eight of Cargill’s palm oil mills received the Green Industry Award.
Cargill’s Palm Oil Business Units in South Sumatra and West Kalimantan received the 2024 Customs Awards, presented by local governments. These awards were given to Cargill as the plantation exporter with the largest export duty contributions in both Palembang and Ketapang.
In 2024, Cargill’s palm oil business unit was awarded the Corporate Social and Environmental Responsibility Award from the Provincial Government of West Kalimantan.