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IPOC 2024: Palm Oil Opportunity in Global Markets The Indonesian Palm Oil Conference (IPOC) 2024 is being held once again from 6–8 November in Bali, Indonesia. As one of the largest and most significant forums for the palm oil industry, IPOC 2024 brings together global stakeholders to discuss the challenges and opportunities facing the sector. Under the theme "Seizing Opportunities Amidst Global Uncertainty,"  this year’s conference aims to establish strategies and policies that can support the sustainability of the palm oil industry amidst global market volatility and environmental challenges. Indonesia’s palm oil industry plays a vital role in the global market, accounting for around 41% of total global palm oil production. However, significant challenges, both domestic and international, require collaboration to find solutions that can maintain this industry's competitiveness and sustainability. Challenges Facing the Palm Oil Industry Sustainability and Environmental Regulation Sustainability remains a key issue of global concern. The palm oil industry is often linked to deforestation, loss of wildlife habitats, and other environmental impacts. While numerous sustainability initiatives have been introduced, such as the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO), the greatest challenge remains effective implementation on the ground. The European Union Deforestation Regulation (EUDR), which took effect in 2023, has added pressure on the industry. EUDR requires products like palm oil to be proven deforestation-free, pushing palm oil producers to improve traceability and transparency throughout their supply chains. This will be one of the main issues at IPOC 2024. In Session 2: Implementation of EUDR: Opportunities & Challenges  on 7 November, discussions will focus on how EUDR impacts companies and smallholder farmers, as well as the policy's effects on global palm oil supply and demand. Speakers such as Rizal Affandi Lukman from CPOPC and Ian Suwarganda from Golden Agri-Resources will provide insights into these regulatory challenges. Market Volatility and Global Economic Uncertainty In addition to environmental concerns, the Indonesian palm oil industry must also navigate market volatility influenced by geopolitical tensions and shifts in international trade policies. Palm oil prices are often unpredictable, and political uncertainty, such as the Ukraine conflict and tensions in the Middle East, can affect global supply and demand. The bioenergy sector, particularly the demand for biofuels, presents a promising opportunity for expanding palm oil markets. IPOC 2024 will allow participants to explore this new market potential, with hopes of advancing the sustainability of the palm oil industry. Session 4: Economic Outlook and Market Trends  on the second day will discuss palm oil price projections and global market trends, including EUDR’s impact and supply and demand dynamics in major markets such as the EU, China, and India. Analysts like Thomas Mielke and Julian McGill will offer perspectives on palm oil pricing in 2025, a topic relevant to the volatility and global policy impact addressed in this article. The growing demand for biofuel and the opening of new markets for palm oil will be a topic in Session 1: New Government Policy on Mandatory Program of Biofuel,  led by Edi Wibowo from the Ministry of Energy and Mineral Resources, who will address Indonesia’s biofuel mandate. This reflects opportunities to bolster the Indonesian palm oil industry’s competitiveness in the global market, especially in connection with advancing energy and biofuel policies. Innovation in Plantations and Technology One of the keys to overcoming stagnant production and enhancing sustainability is innovation in technology and plantation techniques. Topics such as crop breeding, the use of drones and sensors for monitoring plant health, and product traceability are all significant at IPOC 2024. These technologies can help boost productivity and reduce negative environmental impacts, as seen in the urgent replanting initiatives. Such innovations will play a major role in increasing Indonesia's palm oil industry competitiveness in the global market. In Session 1  on 7 November, Advancements of Research and Development on Oil Palm Productivity  led by Edy Suprianto from PIPPSI will address these topics. The focus on productivity improvements through innovation will also help mitigate the environmental impacts of the palm oil industry. IPOC 2024: Finding Collaborative Solutions for Sustainability Stakeholder Dialogue One of IPOC’s main strengths is its ability to bring together governments, industry players, and non-governmental organisations to discuss policies that promote sustainability. IPOC 2024 will include discussions on how Indonesia’s palm oil industry can tackle international regulatory challenges, improve product traceability, and comply with sustainability standards. This gathering also offers participants a chance to share experiences and best practices that can be applied within the Indonesian market. Formulating Joint Strategies for Sustainability IPOC 2024 is also expected to serve as a platform to develop concrete steps that can enhance the competitiveness of Indonesia's palm oil industry globally. This includes government policies that support industry growth by facilitating investments in environmentally friendly technology and support for smallholder farmers in implementing sustainability standards. Recommendations from the conference will provide clear guidance for the industry and government to address the challenges ahead. Conclusion IPOC 2024 provides a rare opportunity to strengthen collaboration between government, industry, and civil society to find sustainable solutions for the palm oil industry. In the face of significant challenges such as stringent environmental regulations, market volatility, and geopolitical uncertainty, this conference represents a crucial moment to establish policies and strategies that can address these issues. The success of IPOC 2024 will be measured not only by the discussions it generates but also by the tangible implementation of solutions for a more sustainable future in the palm oil industry. 4o

Greenwashing Cases Decline A significant development in the sustainability landscape has been noted, as RepRisk's latest report reveals a 12 percent decline in global greenwashing cases between June 2023 and June 2024 across all sectors. This marks the first drop in greenwashing incidents in the last six years, signalling a shift towards greater caution by companies when communicating their environmental claims. Alexandra Mihailescu Cichon, RepRisk's Head of Commercial, stated that companies are becoming more mindful of how they convey not just their environmental efforts but also their broader ESG initiatives. However, despite the overall decrease, the report highlights new challenges. Of the 1,841 misleading communication incidents documented, 56 percent were classified as greenwashing. Private companies were responsible for 70 percent of these greenwashing cases, while public companies accounted for the remaining 30 percent. Philipp Aeby, CEO of RepRisk, emphasized that stakeholders are now more aware of the reputational risks posed by greenwashing than ever before. The Rising Severity of Greenwashing Cases While the overall decline is encouraging, the report also found an increase in the severity of greenwashing cases. Thirty percent of companies involved in greenwashing incidents between 2022 and 2023 were repeat offenders in 2024. In the United States, 42 percent of companies implicated in greenwashing in 2023 were once again cited in the 2024 report, indicating a pattern of systemic violations. The oil and gas sector continues to be the industry most frequently associated with greenwashing claims, representing 22 per cent of the total cases. Although this sector has been a consistent offender since 2019, 2024 saw increased scrutiny on food and beverage companies concerning their sustainability claims. Additionally, the banking and financial services sector, which had experienced a 70 per cent surge in greenwashing cases in previous years, saw a 20 per cent decline in 2024. Peterson Indonesia: Commitment to Transparency and Anti-Greenwashing As a sustainability consultancy, Peterson Projects and Solutions Indonesia strongly opposes any form of greenwashing in sustainability reporting. We believe transparency is paramount to sustainability efforts. When producing sustainability reports, companies must ensure their claims genuinely reflect the actions they are taking, rather than merely engaging in reputational window-dressing. We also acknowledge the risk posed by "greenhushing," a practice where companies withhold or conceal information about their environmental efforts to avoid scrutiny. While increased regulation and oversight may help curb greenwashing, it is crucial that companies remain forthcoming in reporting their sustainability actions comprehensively. With the growing awareness among stakeholders and the public about the risks of greenwashing, we at Peterson Projects and Solutions Indonesia will continue to support companies in ensuring that their sustainability reports reflect genuine, transparent, and honest actions. Interested in our sustainability services? Contact us by clicking that link or email us to marketing.indonesia@onepeterson.com

Sustainable finance has become a critical component in the global transformation towards a greener, more resilient economy. As the threat of climate change becomes increasingly urgent, the financial sector plays a vital role in supporting this transition. By redirecting financial flows away from unsustainable activities and towards climate-resilient business models, financial institutions can significantly contribute to achieving the Sustainable Development Goals (SDGs) and preserving natural capital. Why Are Nature and Sustainable Economics Interconnected? Nature provides various ecosystem services that are crucial to the functioning of the economy, such as pollination, water quality management, and protection against floods and storms. All economic sectors depend on these natural services. However, environmental degradation can disrupt these vital services, posing significant risks for businesses and their investors. As global threats intensify, financial institutions must adopt policies that are not only economically profitable but also ensure the sustainability of ecosystems​. Transforming the Financial Sector The COVID-19 pandemic triggered a major shift in the global financial landscape. The pandemic’s wide-reaching impacts have dramatically increased the need for financing to achieve the SDGs, with the annual funding requirement rising from $2.5 trillion to $4.2 trillion​. In Indonesia, the funding gap to meet the SDGs is now estimated at Rp122 trillion, with a shortfall of Rp24 trillion to be addressed​. Despite these challenges, the global financial sector has significant capacity to meet this demand. With total assets under management reaching $379 trillion globally, allocating just 1.1% of these assets would be sufficient to cover the annual SDG financing needs worldwide. Indonesia’s Role in Sustainable Finance As a leader in Asia, Indonesia has demonstrated a strong commitment to sustainable finance through initiatives such as the issuance of SDG Bonds and Green Sukuk. These instruments provide a clear example of how financial tools can be aligned with sustainable development goals​. Indonesia’s SDG Bond framework, which has been independently reviewed, ensures that capital allocation not only supports economic objectives but also contributes to environmental preservation​. This progress has been further strengthened by recent legislation, including Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector. This law expands the definition of sustainable finance to include financing for the transition towards sustainable economic growth and the implementation of sustainable taxonomy​. The taxonomy serves as a guide for financial institutions to identify economic activities that support sustainability, ensuring capital flows towards environmentally friendly projects. The Green Taxonomy: A Pillar of Sustainable Finance in Indonesia Indonesia’s Green Taxonomy is a critical tool in advancing sustainable finance. This classification system helps investors identify projects or activities that contribute to sustainability. By providing clarity, the taxonomy minimizes the risk of greenwashing, where financial products are falsely marketed as environmentally friendly​. The implementation of the Green Taxonomy, which initially focuses on the energy sector, highlights Indonesia’s commitment to balancing the energy transition with economic growth. Renewable energy sources, such as solar and wind power, are receiving significant attention in this roadmap as the country strives to meet its net-zero emission (NZE) targets by 2060 or sooner​. Promoting Transparency and Accountability Indonesia’s sustainable finance framework is designed to ensure transparency and accountability. The impact reports for projects financed through green bonds or sukuk are reviewed by independent institutions, ensuring that investments genuinely deliver positive environmental and societal outcomes​. This transparency reassures investors that their funds are being allocated to truly sustainable projects. Conclusion Sustainable finance has become the backbone of the transition towards a low-carbon, environmentally friendly economy. Through initiatives such as the issuance of SDG Bonds, Green Sukuk, and the introduction of the Green Taxonomy, Indonesia has demonstrated a strong commitment to leading this change in the financial sector. With the global financial sector holding vast potential, Indonesia’s success in implementing sustainable finance can serve as a model for other countries to follow in the journey towards a greener, more resilient future.

Recycled Claim Standard (RCS) As the global shift towards sustainability accelerates, the focus on recycled materials becomes increasingly critical. The Recycled Claim Standard (RCS) is an international, voluntary standard designed to ensure third-party certification of recycled content and provide transparency throughout the supply chain. RCS aims to guarantee that products claiming to contain recycled materials genuinely meet those claims. Purpose and Benefits of RCS The RCS was created to boost the use of recycled materials across various industries. Its key objectives and benefits include: Harmonisation of Recycled Content Definitions RCS helps unify the definition of recycled materials across industries, making it easier for both businesses and consumers to understand what recycled content means in practice. Traceability of Recycled Inputs With RCS, recycled materials are tracked from the point of collection through to the final product, ensuring authenticity at every stage of production. Tools for Consumers and Brands RCS provides both consumers and businesses with reliable tools to make informed decisions about the products they use, based on verifiable recycled content. Assurance of Authentic Recycled Content The standard provides third-party verification to ensure that products truly contain the recycled materials they claim, reducing the risk of misleading marketing practices. Certification Process of RCS Every stage of production using recycled materials must be certified under the RCS, starting from the recycling process itself and concluding with the final business-to-business transaction. Both material collection and concentration sites are subject to self-declaration, document collection, and on-site inspections. Certification requirements extend to separating pre-consumer and post-consumer recycled content at each stage of production. Limitations of RCS While the RCS focuses on recycled content verification, it does not address the social or environmental impacts of manufacturing processes, product quality, or legal compliance. Moreover, it is a voluntary standard that does not override national regulations, meaning businesses must ensure they also comply with local laws related to product claims. The Importance of a Verified Chain of Custody One of the distinguishing features of RCS is its emphasis on the chain of custody, verified by independent third parties. Each entity in the production chain must prove that the recycled materials used in their products meet the defined standards of recycled content. Verification involves collecting declarations from recycled material suppliers and conducting periodic audits to ensure compliance. This structure promotes greater transparency between businesses and consumers, fostering trust in the claims made about recycled materials. Conclusion The Recycled Claim Standard (RCS) is crucial in promoting sustainability within the production sector. By encouraging the use of recycled materials and offering a reliable certification process, RCS helps businesses and consumers reduce the exploitation of natural resources. Although the standard has some limitations, its commitment to transparency and traceability of recycled content makes it a valuable tool in shaping a greener, more responsible future.

Future-Ready Aviation Strategies for Indonesia's Sustainable Growth The Indonesian aviation sector, a significant contributor to greenhouse gas (GHG) emissions, is set to undergo major regulatory changes. To align the aviation industry with sustainable environmental practices, the Ministry of Transportation is preparing to introduce stricter regulations to reduce GHG emissions. These changes were announced by the Minister of Transportation, Budi Karya Sumadi, during the Hub Talks  event titled "Future Ready Aviation Professionals, Strategies for Achieving Indonesia Emas 2045" , held at JIExpo Kemayoran, Jakarta, on Saturday, September 7, 2024. Transitioning to Green Aviation: Reducing Greenhouse Gas Emissions Minister Budi emphasized the critical role aviation plays in global GHG emissions. To address this, the Ministry is pushing for a transition from fossil fuels to more environmentally friendly energy sources. Implementing "green aviation" concepts and developing "smart airports" are seen as key steps in the government's strategy to reduce the aviation sector's environmental footprint. Minister Budi stated: "We at the Ministry of Transportation plan to strengthen sustainability regulations in aviation, ensuring that this industry not only grows economically but also aligns with environmental sustainability principles,"   Collaboration and Human Resource Development Aside from environmental concerns, Minister Budi highlighted the importance of collaboration and human resource development within the aviation sector. As Indonesia aims to build a competitive aviation industry for the future, the Ministry is focusing on upskilling aviation professionals through digital transformation, training programs, and certifications. Indonesia’s demographic advantage, with a large productive population, offers a unique opportunity to build a robust aviation sector. However, according to Minister Budi, the key to success lies in improving the quality of human resources through digital literacy and skill development. The Minister said: "With our demographic bonus, we have the potential to build a resilient and competitive aviation industry. The key is to enhance our human resources through upskilling and digital literacy,"   Strengthening Digital Infrastructure and International Cooperation Looking ahead, the Ministry plans to improve digital infrastructure at airports, enhance aviation services, strengthen international cooperation, and bolster policies that promote an innovative, efficient, and sustainable aviation ecosystem. These efforts align with Indonesia's broader vision for achieving Indonesia Emas 2045 , a future where the country thrives economically while maintaining its commitment to sustainability. Budi added: "These initiatives are part of our efforts to ensure the realization of Indonesia Emas 2045,"   Global Acknowledgement and Support from ICAO International Civil Aviation Organization (ICAO) President Salvatore Sciacchitano, speaking via video, praised Indonesia’s efforts to incorporate sustainability into its aviation industry. He also acknowledged Indonesia’s plans to develop a new, sustainable capital city, Nusantara, as a testament to its forward-thinking approach. Sciacchitano stated: "Indonesia's focus on smart and sustainable transportation is transforming the nation. It serves as an example for other countries, and ICAO is proud to collaborate with Indonesia,"  The ICAO President also noted Indonesia’s contributions to environmental protection, training programs for developing countries, and the presence of Indonesian aviation experts in the ICAO APAC Regional Office, all of which positively impact the aviation sector in the Asia-Pacific region. Enhancing Aviation Safety and Training Director of ICAO Asia-Pacific, Tao Ma, commended Indonesia for achieving a strong Effective Implementation (EI) score in the ICAO aviation safety audit. However, he emphasized the need for continuous improvement, especially in human resource development. According to Tao Ma, improving aviation safety in Indonesia hinges on providing continuous training for aviation professionals. Tao Ma remarked: "One of the key recommendations to enhance aviation safety in Indonesia is to focus on professional training,"

Indonesia International Sustainability Forum (IISF) 2024 The 2024 Indonesia International Sustainability Forum (IISF), officially inaugurated by President Joko Widodo on September 5, 2024, at the Jakarta Convention Center (JCC), showcased Indonesia’s commitment to addressing climate change and promoting sustainable economic growth. This event brought together stakeholders from around the globe, including the government, private sector, NGOs, and academics, to exchange ideas and collaborate on innovative solutions to combat climate challenges. President Jokowi’s Vision: Collaboration for Climate Action In his opening remarks, President Jokowi emphasized the need for a humanitarian and collaborative approach to effectively tackle climate change. He noted that economic-driven efforts focused on profits and individual interests would not be sufficient. Instead, partnerships between developed and developing nations must be strengthened to create a green economy that benefits not only the environment but also the prosperity of the people. Indonesia’s potential for green energy is vast, with over 3,600 gigawatts of potential renewable energy sources. The country’s investment in the floating solar power plant at Cirata Reservoir, the largest in Southeast Asia, exemplifies its commitment to renewable energy. Additionally, Indonesia’s vast mangrove forests, which cover 3.3 million hectares, play a crucial role in carbon sequestration, storing carbon 8-12 times more effectively than tropical rainforests. However, Jokowi underscored that global cooperation is essential to fully harness these opportunities. He urged developed nations to invest in green energy and share technology to ease the financial burden on developing countries. Foreign Minister Retno Marsudi’s Call for Green Investment On the second day of IISF 2024, Indonesian Foreign Minister Retno Marsudi highlighted the importance of green investment in her keynote speech. She emphasized that renewable energy is an environmental solution and a driver of economic growth. With Indonesia aspiring to be a part of the global shift towards a low-carbon economy, it actively uses diplomacy to promote sustainable development and global cooperation to achieve the United Nations’ Sustainable Development Goals (SDGs) and the Paris Agreement. Retno outlined three priorities for a sustainable future: Investing in Green Energy : The Just Energy Transition Partnership (JETP) and the Asia Zero Emission Community (AZEC) are among Indonesia's initiatives to promote green energy. She called for affordable green technology to be treated as a public good. Unlocking the Blue Economy : Indonesia’s Blue Economy Roadmap 2023-2045 aims to generate over USD 1.5 trillion and create 30 million jobs annually by focusing on sustainable industries such as aquaculture and downstream fisheries. Carbon Sequestration : As one of the largest tropical rainforest countries, Indonesia is pivotal in absorbing carbon emissions. The country has set ambitious targets to achieve net zero emissions by 2060 or earlier. Sustainable Forestry and Agroforestry One of the notable side events at IISF 2024 was Warung Nusantara (Warnus), which focused on promoting eco-friendly local Indonesian products. During this event, the Coalition for Earth Economics (KEM) and PT Amartha Mikro Fintek (Amartha) signed a Memorandum of Understanding (MoU) to develop microfinance programs in social forestry. This initiative aims to strengthen agroforestry systems in rural communities by providing microfinance access, building capacity, and enhancing digital financial literacy. The partnership will significantly impact social forestry sectors in regions like Bali Barat and Trenggalek. By empowering local farmers and entrepreneurs, the program will support inclusive and sustainable economic growth while fostering environmental conservation. The Importance of Cocoa Value Chain for Sustainable Growth Another key discussion at IISF 2024 centred around the cocoa value chain. As the third-largest cocoa producer in the world, Indonesia produces 700,000 tons annually, with 85% of the output exported as raw beans. The forum emphasized the need to move towards value-added processing, such as producing cocoa powder, butter, and chocolate, which could potentially increase export value to USD 3 billion annually. Over 90% of Indonesia’s cocoa production is managed by smallholder farmers using agroforestry methods. This sustainable farming approach supports carbon absorption, boosts biodiversity, and enhances farmers' resilience to climate change. Effective collaboration and capacity building are crucial for realizing the full potential of the bioeconomy in the cocoa sector. Moving from Extractive to Restorative Economies KEM reiterated the need to shift investments from extractive industries, such as oil and gas, to restorative economies. Natural-based innovations and bioeconomy models offer real solutions to environmental challenges while creating jobs and contributing to social welfare. Gita Syahrani, Chairperson of KEM, stressed that Indonesia’s future lies in building sustainable foundations through these restorative practices, which align economic growth with environmental protection. Conclusion The 2024 Indonesia International Sustainability Forum was a critical platform for fostering global collaboration in tackling climate challenges and promoting sustainable development. From President Jokowi’s call for humanitarian approaches to Foreign Minister Retno Marsudi’s emphasis on green investment and the significant initiatives in social forestry and agroforestry, IISF 2024 highlighted Indonesia’s role as a leader in sustainability. Through collective efforts and strategic partnerships, Indonesia is paving the way toward a greener, more inclusive future.

Energy Transition Investment by China China has positioned itself as a global leader in energy transition, making significant strides towards reducing its reliance on fossil fuels. As part of its ongoing efforts to reform the energy sector, China has made a historic investment of $676 billion (approximately Rp 10 quadrillion) in energy transition. This investment represents 38% of the world’s total energy transition spending, marking China's commitment to a sustainable future. China’s Energy Transition Goals On August 29, 2024, the National Energy Administration (NEA) of China released a white paper highlighting the country’s achievements and future plans in the energy sector. The white paper outlines China’s dedication to advancing energy storage technologies, promoting energy conservation, and fostering green energy cooperation under the Belt and Road Initiative (BRI). NEA Head Zhang Jianhua emphasized the importance of continuing to reform China's power system and called for market-oriented reforms. Investment and Global Leadership China’s investment in energy transition is unprecedented, with $676 billion poured into various initiatives aimed at reducing reliance on fossil fuels and expanding renewable energy sources. According to BloombergNEF, this investment accounts for 38% of the global total, solidifying China's position as a leader in the global energy transition. Renewable Energy Milestones China has set an ambitious target of installing 1,200 gigawatts (GW) of wind and solar power by 2030. Remarkably, the country achieved this goal in July 2024, six years ahead of schedule. This rapid expansion of renewable energy highlights China's commitment to achieving its energy goals and contributing to global sustainability efforts. Challenges and Future Ambitions Despite these significant achievements, China faces challenges in meeting other energy and environmental targets. For example, the country aims to reduce its carbon intensity by 18% over five years until 2030. To meet this goal, China must cut absolute emissions by 2% annually in both 2024 and 2025. The Deputy Director of the NEA’s Planning Department, Song Wen, has reaffirmed that China will not alter its carbon peak targets, despite these challenges. The Director of the NEA’s New Energy Department, Li Changjun, added that China will consider setting more ambitious renewable energy goals based on national conditions. Conclusion China’s substantial investment in energy transition underscores its role as a global leader in the fight against climate change. While challenges remain, China’s early achievement of its renewable energy targets and ongoing reforms in the energy sector signal a promising future for the nation and the world.

Introduction to SMETA: The World’s Leading Audit SMETA (Sedex Members Ethical Trade Audit) is recognised globally as the most widely used ethical audit. It plays a crucial role in helping businesses evaluate and enhance their labour, health and safety, environmental, and ethical standards within their operations and supply chain. By providing a structured and comprehensive assessment, SMETA allows companies to protect workers, improve working conditions, and comply with legislation. What is SMETA? SMETA is an ethical audit methodology that businesses employ to gain a deeper understanding of their social and environmental performance. It covers key areas such as labour standards, health and safety, environmental management, and business ethics. Conducted by accredited Sedex Affiliate Audit Companies (AACs), the audit results in a Corrective Action Plan that guides businesses or their suppliers in addressing areas needing improvement. The SMETA Audit Process Application : The process begins by submitting a SMETA audit application to an AAC. Only accredited companies are authorised to conduct these audits and upload the results to the Sedex platform. Preparation : Prior to the audit, businesses should complete a Sedex Self-Assessment Questionnaire (SAQ). This tool is essential for identifying potential risks and understanding current compliance status, helping companies prepare effectively for the audit. Onsite Audit : The onsite audit involves several steps including management and worker interviews, document reviews, and site tours. It is essential that businesses maintain normal operations during the audit and designate a liaison to assist the auditor. Reporting : Following the audit, the auditor uploads the report to the Sedex platform, where authorised customers can access it. This report includes a summary of findings and any non-compliance issues identified during the audit. Continuous Improvement : SMETA emphasises continuous improvement rather than simply passing or failing. The audit helps businesses identify areas for ongoing enhancement in their operations and management systems. Benefits of SMETA for Your Business SMETA audits provide numerous benefits that can significantly impact your business: Increased Visibility : By understanding the social and environmental performance of your business and suppliers, you can make informed decisions and demonstrate your commitment to responsible practices. Risk Management : SMETA allows businesses to assess and monitor high-risk suppliers, ensuring continuous performance improvements over time. Efficient Auditing : The data collected through SMETA can be shared with multiple buyers, reducing the need for repeated audits and streamlining the process. Improved Supplier Performance : The Corrective Action Plan provided by SMETA guides suppliers in addressing and resolving issues identified during the audit, leading to better overall performance. Legislative Compliance : SMETA audits facilitate compliance with both existing and emerging legislation, helping businesses avoid legal risks and penalties. Conclusion Incorporating SMETA into your business operations not only protects workers and improves conditions but also enhances your company’s reputation and compliance with international standards. By focusing on continuous improvement, SMETA ensures that businesses remain competitive and sustainable in an ever-changing global market.

South Korea Waste Recycles South Korea has achieved an extraordinary milestone in waste management, particularly in the recycling of food waste. The country successfully recycles 98% of its food waste, setting an example for the world in sustainable waste management. This article explores the strategies and technologies that have enabled South Korea to reach this impressive figure and the challenges that still remain. The Evolution of Food Waste Management in South Korea Over the past 20 years, South Korea has undergone a dramatic transformation in how it manages food waste. Once a nation that discarded nearly all of its food waste, South Korea now recycles almost all of it. This remarkable shift is the result of stringent policies and the adoption of cutting-edge technologies designed to handle food waste efficiently. Key Policies Driving Success The South Korean government has implemented several key policies that have played a crucial role in achieving this high recycling rate. These include: Ban on Landfilling Food Waste:  The country has banned the disposal of food waste in landfills, a practice that was once commonplace. Mandatory Waste Sorting:  Citizens are required to separate their food waste from other types of waste, ensuring that it can be recycled effectively. Pay-As-You-Throw System:  A cost-based disposal system has been introduced, where residents pay based on the amount of food waste they produce. These policies were initially met with resistance, as citizens had to pay fines and fees for their food waste. However, over time, recycling has become a routine part of life for South Korea's 50 million people. Advanced Recycling Facilities South Korea's success in food waste management is also due to its extensive network of recycling facilities. The country has around 300 facilities that process food waste into various useful products, such as compost, animal feed, and biogas. One notable facility is the Daejeon Bioenergy Center , which converts food waste into bioenergy. This center handles half of the daily food waste generated in the city of Daejeon, demonstrating the effectiveness of bioenergy production from waste. The Role of Technology Technology plays a significant role in South Korea's waste management system. In Seoul, for example, many high-rise buildings are equipped with electronic waste bins that weigh the food waste and charge residents monthly based on the amount they dispose of. Some residents even compost their waste at home using compost bags that cost as little as 10 cents. Challenges and Lessons Learned Despite its success, South Korea continues to face challenges in food waste management. One of the ongoing challenges is reducing the overall amount of food waste generated and ensuring that waste is properly sorted. Non-compostable items mistakenly mixed with food waste can cause mechanical problems at recycling facilities. Moreover, while biogas production from food waste has been effective in South Korea, this model may not be easily replicable in other climates or economic environments. Conclusion South Korea's comprehensive approach to food waste management, which combines waste reduction with effective recycling systems, has positioned the country as a global leader in this field. By enforcing strict policies, investing in advanced technologies, and educating its citizens, South Korea has proven that significant progress in waste management is possible. However, the journey continues as the country works to overcome ongoing challenges and further improve its food waste management system.

Introduction: A Strategic Partnership for a Greener Future Indonesia and Japan have partnered significantly to advance renewable energy initiatives to achieve Net Zero Emission (NZE) targets. This collaboration is formalized through a Memorandum of Understanding (MoU) between Indonesia's Ministry of Energy and Mineral Resources (ESDM) and Japan's New Energy and Industrial Technology Development Organization (NEDO), an entity under the Ministry of Economy, Trade, and Industry (METI) of Japan. The AZEC Ministerial Meeting: A Platform for Global Decarbonization The MoU was signed during the 2nd Asia Zero Emission Community (AZEC) Ministerial Meeting, which was held in Jakarta on August 21, 2024. This meeting brought together ministers from AZEC member countries, including Indonesia, Thailand, Malaysia, Singapore, Vietnam, the Philippines, Cambodia, Laos, Brunei, and Australia. The event is a key moment in Asia's journey towards a zero-emission future, with Indonesia and Japan playing pivotal roles. Focus Areas of the Indonesia-Japan Energy Partnership Under the MoU, Indonesia and Japan are committed to promoting decarbonization in the energy sector by leveraging available energy resources, adopting clean energy technologies, and enhancing energy efficiency. Key areas of focus include: Renewable Energy Development : Both countries will develop renewable energy sources such as solar, hydro, wind, and bioenergy (biomass, biomethane, and biofuels). Hydrogen Production and Supply Chain : The partnership will focus on producing hydrogen and establishing its supply chain. Energy Conservation Technologies : Indonesia and Japan will work together to optimize energy conservation technologies, including hybrid solar-diesel power plants, heat pumps, and cogeneration waste heat to power (WHP) systems. Electrification in Industry : The collaboration extends to electrification technologies in the industrial sector, smart grid technology development, and demand-side management. Energy Services Company (ESCO) Model : This partnership also includes the development of the ESCO model, which enhances the value of coal for industrial use and manages waste in critical mineral processing. NEDO's Role and Impact in Indonesia NEDO, a technological innovation accelerator, focuses on addressing global energy and environmental challenges. One of its notable projects in Indonesia is the development of the first hydrogen production unit from the Lahendong Binary Geothermal Power Plant, which has a capacity of 500 kilowatts (kW). NEDO also supports the Energy Management System (EMS) demonstration project in Nunukan, Pulau Sebatik, which integrates solar, biomass, gas, and diesel power plants. AZEC Ministerial Meeting Outcomes and Future Initiatives The 2nd AZEC Ministerial Meeting resulted in significant outcomes, including the AZEC Ministerial Joint Statement, the publication of 70 MoUs for new AZEC projects (with 30 led by Indonesia), and the launch of the Asian Zero Emission Center. These initiatives will drive substantial investment and collaboration in regional decarbonization efforts. Conclusion: Paving the Way for a Sustainable Future The partnership between Indonesia and Japan is a testament to their shared vision of addressing climate change through clean technology and energy efficiency. The initiatives launched during the AZEC Ministerial Meeting mark a significant step forward in achieving net zero emissions and fostering sustainable economic growth in Asia.

The forestry industry plays a crucial role in maintaining ecosystem balance and the sustainability of natural resources. As global challenges such as climate change, deforestation, and land degradation become increasingly essential, forestry certification standards are becoming increasingly essential. One internationally recognized standard is the Indonesian Forestry Certification Cooperation (IFCC). What is IFCC? IFCC is a sustainable forestry certification scheme focused on responsible forest management in Indonesia. Established with the aim of supporting sustainable forest management practices in line with conservation, social, and economic principles, IFCC is pivotal in promoting responsible forestry in the country. IFCC collaborates with the Programme for the Endorsement of Forest Certification (PEFC) , an international organization that endorses forestry certification schemes worldwide. Through this partnership, wood products certified by IFCC are globally recognized, adding value to the forestry industry players in Indonesia. Benefits of IFCC Certification Global Market Access:  IFCC certification opens up opportunities for Indonesian forestry companies to penetrate international markets that increasingly demand certified products. Consumer Confidence:  This certification enhances consumer confidence in wood products, assuring them that these products come from sustainably managed sources. Regulatory Compliance:  IFCC helps companies meet legal and regulatory requirements related to forest management in Indonesia and export markets. Environmental Sustainability:  The IFCC standard ensures that forest management practices do not sustain natural resources and affect biodiversity and wildlife habitats. Positive Social Impact:  By adhering to the IFCC standard, companies contribute to local community empowerment and respect the rights of workers and indigenous communities. IFCC Compliance with Indonesian Forestry Laws and Regulations As a sustainable forestry certification scheme, IFCC is designed to comply with various regulations and laws in Indonesia, including those related to forest management, environmental protection, and forestry. Some of the relevant regulations followed by the IFCC standard include: Law No. 41 of 1999 on Forestry IFCC ensures that certified forest management adheres to the principles set out in Law No. 41/1999, which includes provisions on sustainable forest management, natural resource conservation, and community empowerment around forests. Government Regulation No. 6 of 2007 on Forest Planning and Forest Management Plan Preparation The IFCC standard complies with Government Regulation No. 6/2007, which governs forest planning and the preparation of forest management plans, including long-term and short-term plans that forest utilization permit holders must develop. Minister of Environment and Forestry Regulation No. P.32/MENLHK/SETJEN/SET.1/3/2016 on Forest Areas with Special Purposes Management IFCC supports the management of forest areas with special purposes, such as conservation, education, and research, in accordance with this regulation. Minister of Environment and Forestry Regulation No. P.77/MENLHK/SETJEN/KUM.1/11/2019 on Timber Legality Verification System (SVLK) Guidelines The IFCC standard is compatible with the Timber Legality Verification System (SVLK), one of the recognized timber legality systems in Indonesia, as part of its regulatory compliance. Government Regulation No. 27 of 2012 on Environmental Permits The IFCC standard requires certificate holders to comply with environmental permit requirements, including those stipulated in Government Regulation No. 27/2012, ensuring that all forest management activities do not harm the environment and meet the requirements set out in the Environmental Impact Analysis (AMDAL). By adhering to these regulations, the IFCC standard helps ensure that certified forest management aligns with international standards and fully complies with applicable regulations and laws in Indonesia. As a sustainability consultant, Peterson Indonesia can assist companies in understanding and meeting these requirements to ensure a smooth and compliant certification process. The IFCC Certification Process The IFCC certification process involves several stages, from preparation to post-certification monitoring. Here are the key steps in the certification process: Initial Preparation:  Companies must conduct an internal audit to ensure readiness to meet IFCC standards. Application Submission:  Companies can submit a certification application to an IFCC-recognized certification body once ready. Field Audit:  The certification body will conduct a field audit to assess the compliance of forest management practices with IFCC standards. Certificate Issuance:  If all requirements are met, the certification body will issue an IFCC certificate valid for five years, with annual audits to ensure ongoing compliance. Monitoring and Supervision:  During the certification period, companies must continuously monitor forest management practices and be prepared for re-audits as scheduled. Peterson Indonesia’s Role in IFCC Certification As a sustainability consultant, Peterson Indonesia has the experience and expertise to assist forestry companies in the IFCC certification process. Our consultancy services include: Initial Evaluation and Preparation:  Assisting companies in conducting internal audits and identifying areas for improvement to meet IFCC standards. Training and Capacity Building:  Providing training to company staff to understand and apply IFCC principles in daily operations. Certification Process Support:  Guiding companies through the certification process, from application submission to field audits. Ongoing Monitoring and Continuous Improvement:  Helping companies maintain compliance with IFCC standards through regular monitoring and recommendations for improvement. Conclusion IFCC certification is vital for forestry companies looking to ensure responsible and sustainable forest management practices. With support from Peterson Indonesia, companies can navigate the certification process more smoothly and effectively, ensuring they meet legal and market requirements and contribute positively to the environment and society.

Understanding NDPE NDPE stands for No Deforestation, No Peat, No Exploitation . This policy represents a commitment to ensuring that industry practices, particularly in the palm oil sector, are conducted in an environmentally and socially responsible manner. Objectives of NDPE The NDPE policy aims to protect the environment and the communities involved in the palm oil supply chain. Its primary objectives include: Avoiding deforestation and peatland degradation. Respecting human rights, especially the rights of indigenous peoples and workers. Enhancing sustainable environmental management practices. Targeted Stakeholders NDPE applies to all companies involved in the global palm oil supply chain, including: Plantation companies. Trading companies. Consumer goods companies. Financial institutions. How to Implement NDPE Here are the steps for implementing NDPE according to the main points of the policy: No Deforestation Landscape Approach:  Identify and conserve High Conservation Value (HCV) and High Carbon Stock (HCS) areas in development and surrounding landscapes. Sustainable Management:  Manage and monitor HCV and HCS areas sustainably. FPIC (Free, Prior, and Informed Consent):  Respect land rights of local communities through informed, non-coerced consent. Greenhouse Gas Emission Management:  Assess and reduce operations' greenhouse gas (GHG) emiss ions. No Burning:  Avoid using fire for land clearing or replanting. No Peat Peatland Protection:  Protect and manage existing peatlands responsibly. Water Management:  Ensure proper water management to prevent peatland degradation. Fire Prevention:  Prevent fires through effective monitoring and community cooperation. Peat Restoration:  Restore peatlands when necessary. No New Development:  No new development on peatlands. No Exploitation Respect for Communities:  Respect the rights of indigenous peoples, local communities, and smallholders. Support for Smallholders:  Provide adequate support to smallholders to ensure their well-being. Gender Equality:  Apply gender-sensitive approaches in all actions. Worker Rights:  Ensure fair wages, safe working conditions, and freedom of association. Expected Impacts Effective implementation of NDPE is expected to: Reduce global deforestation and protect biodiversity. Preserve peatlands as important carbon sinks. Improve the well-being of local communities and workers in the palm oil sector. Promote more sustainable and responsible industry practices. By committing to NDPE implementation, your company can be crucial in fostering a more sustainable and ethical palm oil supply chain. Understanding and applying the principles of NDPE supports global efforts to protect the environment and contributes to the social and economic well-being of the communities involved in the industry. As a leading sustainability consultant, we are ready to assist you at every step of your journey towards more responsible and sustainable business practices. Contact us to learn more about how we can support your NDPE implementation and ensure the success of your sustainability initiatives.