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Global Compact International Yearbook 2009

The road to Copenhagen is the catchphrase: Climate Change is the top issue of inaugural edition, on the market since 1th of august 2009. In a very personal and exclusive foreword, UN Secretary-General Ban Ki-moon stresses the urgency of multilateral action: „One underlying message of this Yearbook is that a global, low-carbon economy is not only technologically possible, it makes good business sense“, said Ban. „We need the voice and energy of business to help us combat climate change.“ Sir Anthony Giddens adds the importance of the upcoming Copenhagen Climate Summit: „It is an important year, and everybody knows it because it is the year of Copenhagen. It’s a key for climate change policy. I do hope the Copenhagen negotiations will be successful, but there are reasons I have to be worried. “ Another key issue of this edition is the global economic crisis: 2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. Georg Kell, Executive Director of the Global Compact, writes: „Restoring confidence and trust in markets requires a shift to long-term sustainable value creation, and corporate responsibility must be an instrument towards this end. If the crisis is any indication, it is now time to build on the advances made over the past 10 years by companies and investors in the area of ESG performance and bring this discipline to the mainstream. “

The road to Copenhagen is the catchphrase: Climate Change is the top issue of inaugural edition, on the market since 1th of august 2009. In a very personal and exclusive foreword, UN Secretary-General Ban Ki-moon stresses the urgency of multilateral action: „One underlying message of this Yearbook is that a global, low-carbon economy is not only technologically possible, it makes good business sense“, said Ban. „We need the voice and energy of business to help us combat climate change.“ Sir Anthony Giddens adds the importance of the upcoming Copenhagen Climate Summit: „It is an important year, and everybody knows it because it is the year of Copenhagen. It’s a key for climate change policy. I do hope the Copenhagen negotiations will be successful, but there are reasons I have to be worried. “

Another key issue of this edition is the global economic crisis: 2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. Georg Kell, Executive Director of the Global Compact, writes: „Restoring confidence and trust in markets requires a shift to long-term sustainable value creation, and corporate responsibility must be an instrument towards this end. If the crisis is any indication, it is now time to build on the advances made over the past 10 years by companies and investors in the area of ESG performance and bring this discipline to the mainstream. “

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Best Practice<br />

Environment<br />

weight of approximately 21 percent of<br />

the mass of fruit processed. The empty<br />

fruit bunches are applied directly to the<br />

oil palm estates at a specific dosage. As<br />

the nutritional content quickly declines,<br />

empty fruit bunches should be applied<br />

within six days in order to maximize<br />

the benefit. As organic mulch, empty<br />

fruit bunches provide natural nourishment<br />

to the oil palm trees and soil; provide<br />

a growth medium for beneficial<br />

RSPO Principles<br />

effluent to the estates, ponds should be<br />

established to store the digested effluent,<br />

which is channeled directly from the<br />

mills to the estates.<br />

SMART uses the shells and fiber of husks<br />

from the fresh fruit bunches, which are<br />

the solid waste from the mills.<br />

Reduce Dust from Boilers<br />

To promote cleaner air, SMART has<br />

initiated the usage of boilers that are<br />

equipped with "dust collectors" or "multicyclones",<br />

as some would call them. The<br />

main function of dust collectors is to remove<br />

the smallest-sized particulates from<br />

the boiler flue gas so the exhaust released<br />

to the atmosphere is clean. In addition,<br />

most of the mills are also equipped with<br />

automatic fuel and draft controls that<br />

can improve the burning or combustion<br />

efficiency of the palm fuel (shell and<br />

fiber) and ultimately avoid dust.<br />

1. Commitment to transparency<br />

2. Compliance with applicable laws and regulations<br />

3. Commitment to long-term economic and financial viability<br />

4. Use of appropriate best practices by growers and millers<br />

5. Environmental responsibility and conservation of natural resources and<br />

biodiversity<br />

6. Responsible consideration of employees and individuals and communities<br />

affected by growers and mills<br />

7. Responsible development of new plantings<br />

8. Commitment to continuous improvement in key areas of activity<br />

Bio-gas Generator Initiatives<br />

SMART is continually pursuing other<br />

initiatives to reduce or prevent negative<br />

environmental impact, such as methane<br />

gas release, waste water and production<br />

residue that can pollute and endanger<br />

the environment. Advanced options are<br />

being reviewed to further reduce the usage<br />

of diesel by replacing it with bio-gas.<br />

Currently, an alternative is being worked<br />

on to reduce the use of diesel by capturing<br />

methane gas from mill effluent.<br />

micro-organisms; stimulate the growth<br />

of new roots; promote soil conservation<br />

to prevent erosion and intensify the soil’s<br />

water-holding capacity.<br />

The POME from the mill, generally representing<br />

55 percent of the mass of fruit<br />

processed, can also be used as organic fertilizer,<br />

after being digested in the waste<br />

water treatment plant to decrease several<br />

parameters in accordance with the<br />

Decree of the Minister of Environment<br />

of the Republic of Indonesia Number<br />

29, Year 2003. Digested palm oil mill<br />

effluent contains natural nutrients and<br />

water for the oil palm trees and soil and<br />

provides a growth medium for beneficial<br />

micro-organisms. To apply the digested<br />

As an alternative to direct application<br />

of the digested effluent and empty fruit<br />

bunches to the estates, organic compost<br />

can also be generated by spraying<br />

the digested effluent onto the shredded<br />

empty fruit bunches. After the decomposition<br />

process, empty fruit bunches will<br />

lose half their weight and 80% of their<br />

volume, but the nutrient content will<br />

remain the same. This alternative allows<br />

efficient transportation and application<br />

of the composted empty fruit bunches to<br />

estates located far from the mills.<br />

Use of Shell and Fiber as<br />

Fuel in Boilers<br />

Minimizing usage of diesel means reducing<br />

the consumption of fossil fuels and<br />

emissions released into the air, as the<br />

exhaust from diesel generators contains<br />

hydrocarbons and nitrogen oxide (NOx),<br />

which increase pollution. Instead of using<br />

diesel to fuel the boilers in the mills,<br />

Conventionally, mill effluent is treated<br />

in open lagoons, where it undergoes an<br />

anaerobic process that releases methane<br />

gas to the atmosphere. The methane<br />

gas released could be captured by biodigesters<br />

and burnt in gas engines to<br />

generate electricity for the mill. In this<br />

way, emission of methane gas to the atmosphere<br />

is eliminated. At the same time,<br />

the usage of gas in generators to produce<br />

electricity, as a replacement for diesel<br />

generators, greatly reduces the exhaust<br />

gases from fossil fuel. SMART will constantly<br />

embrace technological innovation<br />

to work on more advanced alternatives<br />

that constructively contribute to lessening<br />

the impact on the environment and<br />

ultimately preserving nature.<br />

Contact: Ismu Zulfikar<br />

<strong>Global</strong> <strong>Compact</strong> <strong>International</strong> <strong>Yearbook</strong> <strong>2009</strong> 71

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