Takeaways

• PalmCo won two major honours at the 2025 ESG Initiative Awards, recognizing its leadership in waste management and executive-level sustainability initiatives.
• The company’s renewable energy breakthroughs, including CBG production and biogas power plants, are cutting emissions and transforming palm waste into valuable energy.
• PalmCo’s CEO, Jatmiko K. Santosa, was awarded Best CEO for ESG Initiatives for strengthening governance, expanding NDPE principles, and supporting farmers through the PSR program.

PTPN IV PalmCo, a subholding under the (Persero) Plantation Holding, secured two major recognitions at the ESG Award 2025, Best Waste and Resource Management Initiative and Best CEO for ESG Initiatives, awarded to President Director Jatmiko K. Santosa. The event highlighted companies demonstrating strong environmental, social, and governance (ESG) commitments, particularly in areas such as renewable energy and waste management.

“Not About Awards, But Consistency”

Jatmiko said the recognition serves as an important reminder that PalmCo’s sustainability efforts must continue beyond receiving awards. “For us, this award is not a matter of achievement, but a matter of consistency in improving the way we work and making daily decisions,” he said.

He explained that PalmCo’s ESG implementation spans all operational levels, from plantation fields to processing factories. The company is strengthening conservation efforts in high conservation value (HCV) areas, maintaining biodiversity, and ensuring more ethical supply chain cooperation. “The people around the garden are part of our work ecosystem. Sustainability is unlikely to succeed without involving them,” he added.

Read More: ESG & Waste Management Dilemma: Challenges & Business Impact

Turning Palm Oil Waste Into Renewable Energy

PalmCo’s win for the Best Waste Management Initiative reflects its progress in renewable energy innovation. The company has developed technology to convert palm oil waste into energy through its liquid waste treatment plant, producing Compressed Bio-Methane Gas (CBG) and electricity through Biogas Power Plants (PLTBg).

Several units have also adopted biomass co-firing to reduce fossil fuel dependence. “We want waste not to stop as waste. If it can become energy, it is more beneficial for the company and the environment,” Jatmiko said.

PalmCo now uses more than 80% renewable energy, with an annual carbon emissions reduction of around 169,000 tons of CO₂. The company also enforces a zero-disposal policy for non-B3 waste and maintains a strict zero-deforestation commitment.

Strengthening Governance and Ethical Operations

The Best CEO for ESG Initiatives award acknowledges PalmCo’s efforts to improve internal governance. ESG indicators are now part of management performance evaluations, supported by tighter oversight through anti-fraud systems and whistleblowing channels.

PalmCo is strengthening NDPE (No Deforestation, No Peat, No Exploitation) principles across its supply chain, while its clean-energy roadmap includes new CBG facilities, capacity expansion for PLTBg and PLTMh, and research into biodiesel and bio-pellet development.

On the social side, PalmCo is advancing its People’s Palm Oil Rejuvenation (PSR) program, which spans 60,000 hectares and benefits around 120,000 farmers. “If farmers grow, industry grows, PSR succeeds; it is not impossible that the Palm Oil industry's long-term investment in Indonesia will always be sustainable,” Jatmiko noted.

Also Read: The Benefits of EcoVadis Certification for Sustainable Businesses

Long-Term Sustainability Remains the Focus

With over 600,000 hectares of plantations covering palm oil, tea, and coffee, palm oil sustainability remains a long-term priority for PalmCo. “We realize that the palm oil industry is always in the spotlight. Therefore, the only way is to work better, be more transparent, and be more responsible,” Jatmiko said.

He affirmed that the awards will not shift the company’s focus. “This award reminds us that our journey is still long. Sustainability is a long-term commitment,” he concluded.

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Source: VOI