Statement on RAN’s report: Will Japan’s Megabanks Stop Financing Rainforest Destruction?
Rainforest Action Network (RAN) mentions Golden Agri-Resources (GAR) in one of its case studies in the report. However, the cases it refers to are not new and GAR has previously released multiple statements in the public domain as well in briefings and statements to its stakeholders.
Re the bribery case involving three executives at a subsidiary, GAR has issued responses in its Annual Report, on its website and in this report, as well as proactively to its stakeholders. GAR has detailed the actions it has taken including requiring executives to sign Integrity Pacts committing them to ethical and lawful behaviour and enhanced our Code of Conduct training, together with mandatory e-testing and e-acknowledgement.
On GAR’s removal from the Dow Jones Sustainability Index, RobecoSAM which carries out the assessment for inclusion in the DJSI index changed its methodology in 2018 for all companies. This included factoring a greater impact on a company’s scores from open issues. GAR continues to take part in the annual assessment and has given updates to RobecoSAM on those tracked cases which are available to investors via RobecoSAM’s survey website.
GAR has been transparent and has taken timely and appropriate action when dealing with ESG issues as it remains fully committed to responsible palm oil as per its sustainability policy, the GAR Social and Environmental Policy (GSEP).
About Golden Agri-Resources Ltd (GAR)
GAR is one of the leading palm oil plantation companies with a total planted area of 495,247 hectares (including plasma smallholders) as at 30 September 2019, located in Indonesia. It has integrated operations focused on the production of palm-based edible oil and fat.
Founded in 1996, GAR was listed on the Singapore Exchange in 1999 and has a market capitalisation of US$2.1 billion as at 30 September 2019. Flambo International Limited, an investment company, is currently GAR’s largest shareholder, with a 50.35 percent stake. GAR has several subsidiaries, including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.
GAR is focused on responsible palm oil production. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil, margarine, shortening, biodiesel and oleo-chemicals; as well as merchandising palm products throughout the world. It also has operations in China and India including a deep-sea port, oilseed crushing plant, production capabilities for refined edible oil products as well as other food products such as noodles.
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