SIPEF

Integrated

Annual Report

2024

Contents

Message from the chairman and managing director .... 12

SIPEF at a glance ....................................... 18

Highlights of 2024 ......................................20

1. Company Report ......................................24

2. Sustainability Statement .............................86

3. Corporate Governance Statement ...................282

4. Financial Statements ................................330

5. Annexes .............................................404

Other information about the Company ................463

Glossary ...............................................466

Responsible persons ...................................472

Contributing to

a better tomorrow...

SIPEF Integrated Annual Report 2024

by cultivating

sustainable excellence,

4 The connection to the world of sustainable tropical agriculture

SIPEF Integrated Annual Report 2024

bringing

people together,

6 The connection to the world of sustainable tropical agriculture

SIPEF Integrated Annual Report 2024

and nurturing

communities.

8 The connection to the world of sustainable tropical agriculture

SIPEF Integrated Annual Report 2024

SIPEF

10 The connection to the world of sustainable tropical agriculture

Doing well

by doing good.

SIPEF Integrated Annual Report 2024

Message from the chairman

and managing director

12 The connection to the world of sustainable tropical agriculture

2024 was a year of both challenges and progress

for SIPEF, marked by strong market dynamics,

operational resilience, and continued investment

in sustainable growth. Despite the eects of cli-

mate variability and geopolitical uncertainties,

the Group successfully maintained stable financial

performance while strengthening its position as a

leading producer of high-quality, traceable, and

responsible agricultural products.

Palm oil continues to be essential for feeding the

world’s growing population and meeting global

demand for vegetable oils across multiple indus-

tries, thanks to its high yield per hectare and

ecient processing. SIPEF remains committed

to meeting this demand sustainably by enhancing

land use eciency, investing in high-quality oil

palm varieties, and integrating smallholders into

a responsible supply chain.

Throughout the year, financial and operational

performance remained solid, supported by strong

palm oil market fundamentals. Palm oil prices

averaged USD 906 per tonne on the Bursa Malaysia

Derivatives Exchange (MDEX), reﬂecting global

supply constraints and steady demand. SIPEF

achieved an average ex-mill gate selling price of

USD 867 per tonne, a 4.4% increase compared to

2023, with particularly strong prices in the second

half of the year.

SIPEF recorded a total net profit (share of the

Group, after tax) of KUSD 65 838 and continued

its investments in operational improvements and

growth. Sustainability remained a key priority, with

KUSD 86 858 invested while successfully reducing

net financial debt to KUSD 18 087.

SIPEF’s palm oil operations faced a challenging

start to the year, particularly in Papua New Guinea,

where the impact of the November 2023 volcanic

eruption continued to aect production. However,

the team responded with remarkable resilience,

collaborating with local government and under-

taking an extensive rehabilitation programme that

included the pruning and recovery of 3 500 hectares

of ash-aected land. Production levels in Papua

New Guinea have steadily improved, and further

recovery is expected in 2025.

Palm oil continues to be essential

for feeding the world’s growing

population and meeting global

demand for vegetable oils across

multiple industries, thanks to its

high yield per hectare and efficient

processing.

SIPEF Integrated Annual Report 2024 Message from the chairman and managing director

The Group’s banana operations saw

further expansion, with a total of

580 hectares of new plantations

developed in Côte d’Ivoire. This

contributed to a notable 24.6 %

production increase.

In Indonesia, production was aected by the cycli-

cal impact of prolonged dry conditions in 2022 and

2023, leading to variable yields across dierent

estates. Despite these challenges, there was an

upward trend in palm oil production compared to

2023, increasing by 1.5%, driven by strong perfor-

mance in South Sumatra. South Sumatra’s palm

oil production increased by 19.6% in 2024. SIPEF

expanded its planted area to 30 052 hectares, with

South Sumatra now contributing nearly a quarter

of SIPEF’s total Indonesian palm oil production.

The commissioning of the Agro Muara Rupit mill

in June 2024, with an initial processing capacity

of 45 tonnes per hour, marked a major milestone in

strengthening processing infrastructure.

Replanting of the palm plantations remained

a strategic priority across Indonesia and Papua

New Guinea to ensure long-term productivity. In

Bengkulu, the Sei Jerinjing rubber estate was fully

converted to oil palm, with 1 298 hectares newly

planted.

The Group’s banana operations saw further expan-

sion, with a total of 580 hectares of new plantations

developed in Côte d’Ivoire. This contributed to a

notable 24.6% production increase. The successful

certification of banana operations under Rainforest

Alliance and Fairtrade standards reinforced the

Group’s commitment to responsible agricultural

practices.

In 2024, SIPEF reinforced its commitment to

responsible agriculture by improving how it deliv-

ers, monitors, and communicates impact. With sus-

tainability firmly embedded in its operations, the

focus turned to strengthening traceability, enhanc-

ing product quality, and advancing innovation.

The launch of GeoSIPEF, a digital traceability

platform, marked a major step towards full sup-

ply chain transparency and compliance with the

EU Deforestation Regulation (EUDR). Product

quality also progressed, with the first shipment of

washed crude palm oil from Mukomuko meeting

strict mineral oil (MOSH/MOAH) and chloride

specifications — the result of ongoing mill upgrades.

Innovation eorts continued with the development

of a bio-CNG (compressed natural gas) facility

at the Perlabian mill, part of SIPEF’s emissions

reduction strategy. At the same time, collabora-

tion with Verdant Bioscience Pte Ltd focused on

high-yielding and resilient palm varieties to support

long-term productivity.

The connection to the world of sustainable tropical agriculture

In 2024, SIPEF reinforced its commitment to

responsible agriculture by improving how

it delivers, monitors, and communicates

impact.

SIPEF Integrated Annual Report 2024 Message from the chairman and managing director

16 The connection to the world of sustainable tropical agriculture

In Papua New Guinea, landscape-level High

Conservation Value and High Carbon Stock

Approach (HCV-HCSA) assessments supported

smallholder integration and regulatory alignment,

while the integration of the Citra Sawit Mandiri

plantation into the Umbul Mas Wisesa mill rein-

forced certified volumes. To ensure transparency,

SIPEF aligned its reporting with ESRS and CSRD,

completed a double materiality assessment, and

introduced external assurance for the first time.

These initiatives embody SIPEF’s longstanding

understanding that doing well and doing good are

inherently connected. Progress is not measured by

performance alone, but by the ability to innovate

with care, act with consistency, and remain deeply

attuned to the people and environments that sus-

tain the business. It is in this balance that SIPEF

continues to find its purpose - and its strength.

Above all, 2024 marked a significant leadership

transition. After 45 years of dedicated leadership,

François Van Hoydonck handed over the manage-

ment of the Group to Petra Meekers. Under Petra’s

guidance, the executive committee remains focused

on continuity, the strategic pillars, and responsible

growth, fully aligned with the values that define

SIPEF.

SIPEF enters 2025 with cautious optimism. With

further recovery expected in Papua New Guinea,

the maturing of recently planted areas in Indonesia

and Côte d’Ivoire, and continued focus on quality,

innovation, and traceability, SIPEF is well-posi-

tioned to deliver on its strategy and deliver value

to its shareholders and stakeholders.

SIPEF extends its sincere thanks to all employees,

partners, and shareholders. Their dedication and

trust remain the foundation of the Group’s con-

tinued success. It is through their commitment

that SIPEF grows with purpose, innovates with

integrity, and upholds the highest standards in

sustainable agribusiness. Together, we continue

to shape a future of responsible growth and lasting

value.

Progress is not measured by

performance alone, but by the

ability to innovate with care, act

with consistency, and remain

deeply attuned to the people and

environments that sustain the

business. It is in this balance that

SIPEF continues to find its purpose -

and its strength.

SIPEF Integrated Annual Report 2024 Message from the chairman and managing director

BELGIUM AND

LUXEMBOURG

OFFICES

23 employees

SINGAPORE

OFFICES

17 employees

CÔTE D'IVOIRE

BANANAS

1 257 ha

2 640 employees

INDONESIA

PALM

71 951 ha

16 856 employees

(1)

PAPUA NEW GUINEA

PALM

13 550 ha

4 668 employees

MARKETS

SERVED

Europe

United Kingdom

Indonesia

West Africa

GLOBAL PRESENCE

SIPEF

at a glance

SIPEF is a Belgian agribusiness group listed on

Euronext Brussels, specialised in the production

of sustainable palm products and bananas. In

Indonesia and Papua New Guinea, the Group pro-

duces palm products including fresh fruit bunches

(FFB), crude palm oil (CPO), palm kernels (PK),

and crude palm kernel oil (CPKO). SIPEF’s banana

operations are located in Côte d’Ivoire. The Group

is in the final stages of phasing out its operations

in rubber, tea, and horticulture.

In 2024, SIPEF had 24 204 employees across

five countries around the world. The majority

are employed or contracted through the Group’s

subsidiaries in Indonesia, Papua New Guinea and

Côte d’Ivoire.

SIPEF manages a total of 86 757 hectares of own

production area. In 2024, its total revenue was

KUSD 443 810.

(1) The figure also includes the total employees in the tea activities (Indonesia).

18 The connection to the world of sustainable tropical agriculture

Banana

estates

Banana

packing

stations

Palm oil

mills

Oil palm

plantations

Palm oil

mills

Kernel crushing

plants (integrated

with mills)

Oil palm

plantations

INDONESIA

PAPUA

NEW GUINEA

MALECÔTE D’IVOIRE FEMALE

Palm oil Bananas

86 757

18 066

Male

6 138

Female

Palm oil

Tonnes

362 404

Bananas

Tonnes

51 038

Total planted

area

KUSD

443 810

Total revenue

KUSD

65 838

Net profit after tax

(share of the Group)

PLANTED AREA IN HECTARES

INDONESIA PAPUA

NEW

GUINEA

CÔTE

D’IVOIRE

TOTAL

Oil palms 71 951 13 550 0 85 500

Bananas 0 0 1 257 1 257

TOTAL 71 951 13 550 1 257 86 757

EMPLOYEES BY COUNTRY

Belgium 23

Indonesia 16 856

Papua New Guinea 4 668

Côte d’Ivoire 2 640

Singapore 17

TOTAL 24 204

SIPEF Integrated Annual Report 2024 SIPEF at a glance

Highlights

of 2024

ACTIVITIES

 SIPEF’s palm oil production

declined by 7.4% in 2024, impacted

by the volcanic eruption in Papua

New Guinea in November 2023.

Additionally, dry weather conditions

in late 2023 and a cyclical downturn

aected crop levels in Indonesia.

 The crude palm oil (CPO) washing plant at the Mukomuko

palm oil mill is now operational with promising results.

 Production of bananas in Côte

d’Ivoire increased by 24.6% compared

to 2023. The newly developed

sites of Lumen and Akoudié, now

exceeding 508 hectares, continued

to outperform.

 The Papua New Guinea operations

showed resilience in 2024, navigating

the challenges posed by the November 2023 eruption of

Mount Ulawan. Overall production of fresh fruit bunches

(FFB) in the fourth quarter declined by 30.1% compared

to the previous year, and FFB production from the Group’s

own estates finished 22.5% lower. These results aligned

with expectations set after rehabilitation.

+24.6%

Bananas

 All palm oil extraction mills in Papua New

Guinea and Indonesia have taken quality

measures to keep MOSH/MOAH levels in palm

oil low.

 The pilot project at the Barema palm oil mill

in Papua New Guinea for the separation of

‘virgin’ oil and ‘technical’ oil was halted in 2024.

Although the virgin oil showed positive results,

the technical oil was considered too acidic, and

market interest was low.

 SIPEF launched its innovative supply chain

traceability tool at the end of October 2024,

strengthening its commitment to compliance

with the EU Deforestation Regulation (EUDR).



PT Citra Sawit Mandiri completed its first

audit for RSPO certification, an achievement

that will add 1 568 certified hectares to

SIPEF’s certified supply base.

20 The connection to the world of sustainable tropical agriculture

INVESTMENTS AND EXPANSION

+28 ha

Planted area in

Côte d’Ivoire



The Group invested a total of KUSD 86 858 in intangible and tangible assets

in 2024. These related to the usual replacement investments in existing

developments, as well as new developments in South Sumatra and Côte

d'Ivoire.

 The expansion in South Sumatra, Indonesia

(excluding Dendymarker Indah Lestari), has

been steady, with 19 827 hectares already

planted.

 The replanting of the Dendymarker Indah

Lestari estate acquired in 2017 has been

completed. 10 225 hectares have been replanted.

 The Agro Muara Rupit palm oil mill in South

Sumatra was completed, SIPEF’s seventh mill

in Indonesia. The first commissioning took place

in April 2024. In its first phase, this palm oil mill

has a processing capacity of 45 tonnes of FFB

per hour. Other investments in South Sumatra

included further expansion of planted areas and

associated infrastructure, such as houses and

roads.

 The expansion of hectares planted with bananas

in Côte d’Ivoire continued with another 28

hectares in 2024, bringing the total planted area

at the end of 2024 to 1 257 hectares.

SIPEF Integrated Annual Report 2024 Highlights of 2024

RESULTS

 In 2024, palm oil prices remained historically favourable,

averaging USD 906 (MYR 4 128) on the Malaysian

Derivatives Exchange (MDEX).

 Steady prices and enhanced cost control once more

guaranteed outstanding financial performances,

comparable to the 2023 results.

 The unit production prices of palm

oil remained well under control. The

further decrease in fertiliser cost

and a positive eect from the strong

USD compared to local currencies,

however, were offset by the lower

total production, leading to a slightly

higher unit selling price.

 The Net Financial Position remains limited to KUSD

-18087, after investments of KUSD 86 858, mainly related

to the continued expansion in South Sumatra.

 To prepare for compliance with the EU Corporate

Sustainability Reporting Directive (CSRD) and the

European Sustainability Reporting Standards (ESRS),

SIPEF completed its first double materiality assessment

in May 2024. The Group’s 2024 Integrated Annual

Report presents its first CSRD- and ESRS-compliant

Sustainability Statement, which successfully underwent

limited assurance by an independent third-party.

 SIPEF published its revised Group-level policies on

grievances, and on anti-corruption and anti-bribery, in

addition to the revisions to its Responsible Plantations

and Responsible Purchasing Policies.

SUSTAINABILITY



The board of directors decided to

propose to the shareholders meeting

of 11 June 2025 a gross dividend of euro

2.00 per share, payable as of 2 July

2025.

 Net recurring profit, share of the Group, after

taxes, amounted to KUSD 71 913 compared to

KUSD 72 735 last year. Total net profit (share

of the Group, after tax) amounted to KUSD

65838. Basic earnings per share were USD 6.33

compared with USD 6.99 per share in 2023.

71 913

KUSD

Net recurring

profit

The connection to the world of sustainable tropical agriculture

100%

FAIRTRADE

 Plantations J. Eglin SA achieved 100% Fairtrade certification for all SIPEF

banana plantations in Côte d’Ivoire in 2024, including the newly certified

Akoudié and Lumen sites. All banana operations also remained certified

under Rainforest Alliance and GLOBALG.A.P.

 Plantations J. Eglin SA contributed to advancing

social dialogue in the Ivorian banana sector by

supporting a major industry event in Abidjan

focused on living wage and shared responsibility.

 For SPOTT 2024, SIPEF scored 88.8%,

ranking 14th out of 100 companies, a slight

decrease from 2023 (88.9%). For its 2024 CDP

disclosures, SIPEF retained a B (Management)

score for Forests and a C (Awareness) score for

Climate Change.



SIPEF managed over 15 000 hectares of conservation areas in 2024. Zero

deforestation incidents were recorded across the Group’s own operations or

supplier areas during the reporting year.

 Climate and biodiversity risk and opportunity

assessments were completed in support of the

Group’s climate and biodiversity transition

planning, and Scope 3 emissions reporting was

initiated in line with CSRD.

 Construction began on the Group’s first bio-

compressed natural gas (bio-CNG) plant at the

Perlabian palm oil mill in North Sumatra, and

contracts were signed for the development of

similar facilities at Dendymarker Indah Lestari

and Agro Muara Rupit in South Sumatra. These

eorts will contribute to progressing SIPEF’s

GHG reduction strategy.

 An updated version of SIPEF’s GeoSIPEF

supply chain traceability tool was launched,

strengthening transparency and alignment with

the EU Deforestation Regulation (EUDR). New

features include a customer portal for shipment-

level data and legal documentation.

 SIPEF launched initiatives to empower more

women in plantation roles, including training

and employing over 50 women in ablation and

harvesting roles traditionally held by men.

 A dedicated community engagement

department was established in Papua New

Guinea to address local concerns and strengthen

stakeholder relationships.

SIPEF Integrated Annual Report 2024 Highlights of 2024

24 The connection to the world of sustainable tropical agriculture

Company

Report

SIPEF Integrated Annual Report 2024 Company Report

SIPEF’s

mission and

strategy

Drawing on the experience developed throughout its

more than 100-year history, SIPEF consistently produces

high-quality and fully traceable palm products and

bananas.

The Group is committed to generating economic value

for its shareholders and other stakeholders while oper-

ating in an environmentally and socially responsible

manner.

Sustainability is at the core of SIPEF’s business model,

and the Group works hard to make a positive contri-

bution to the communities and economies where it

operates.

Fundamental to achieving SIPEF’s mission are the

Group’s Guiding Principles and Balanced Growth

Strategy.

26 The connection to the world of sustainable tropical agriculture

SIPEF’s

mission and

strategy

BALANCED

GROWTH STRATEGY

• Production eciency

• Operational excellence

• High-quality, sustainable,

traceable, certified products

• Innovation and early adoption

• Environmental stewardship

• Respecting employees and communities

• Responsible supply chain management

• Good business conduct

SIPEF produces high-

quality, sustainable,

and traceable agricultural

products, with the aim to

diversify into targeted markets

and foster a harmonious balance

between nature, people and growth.

GUIDING PRINCIPLES

MISSION

• Reliability and stability

• Long-term planning and decision making

• Continuous improvement

• Sustainable economic growth

• Conservation and restoration

of the environment

• Supporting employees and communities

• Value creation for all stakeholders

SIPEF Integrated Annual Report 2024 Company Report

SIPEF’s management and employees, as well as all contracting parties, are governed by a set

of Guiding Principles, which shape the conduct and culture of the Group:

GUIDING

PRINCIPLES

7. Value

creation for all

stakeholders

To create value for all its

stakeholders, fairly and

responsibly.

1. Reliability

and stability

To be a reliable and

stable partner for all its

stakeholders.

4. Sustainable

economic

growth

To generate economic

value for its shareholders

and other stakeholders,

while striving for a

controlled level of debt.

5. Conservation and restoration

of the environment

To conserve and, where possible, restore the natural

environment within its operations by engaging in

sustainable agricultural practices and actively managing

conservation areas.

3. Continuous

improvement

To continuously improve

all aspects of its business,

focusing on quality, produc-

tivity and best environmental,

social and governance

practices.

2. Long-term

planning and

decision making

To always plan for, and

make decisions, based on its

long-term vision.

6. Supporting employees

and communities

To treat all employees and local communities

with respect for their rights, while supporting

opportunities to improve their well-being and

development.

28 The connection to the world of sustainable tropical agriculture

BALANCED

GROWTH STRATEGY

SIPEF’s Balanced Growth Strategy is designed so that the Group can achieve its commercial

objectives while preserving natural ecosystems, engaging in fair labour practices, providing

support for local communities in the places where it operates, and practicing good business

conduct.

SIPEF Integrated Annual Report 2024 Company Report

Production eciency

Respecting the limited availability of agri-

cultural land, whilst continuing to meet

growing market demands, is crucial for

SIPEF’s success as a business, now and in

the future.

SIPEF's production eciency goals are:

 Optimising land use in production

areas and improving production

processes

 Engaging in practices and solutions

focused on improving soil health and

boosting yields

See page 47 for more details

Environmental stewardship

For SIPEF, environmental stewardship

means minimising and managing all

direct and indirect impacts of its business

activities on the natural environment, and

on the climate.

SIPEF's environmental stewardship goals

are:

 Sustainable land use and

biodiversity conservation, including

no deforestation and no new

developments on peat (NDP)

 Minimise impacts on natural

resources and the environment

 Greenhouse gas (GHG) emissions

reduction and long-term climate

resilience

See page 118 for more details

The Balanced Growth Strategy’s eight focus areas and

their related goals are described below.

30 The connection to the world of sustainable tropical agriculture

Operational excellence

SIPEF is committed to operational excel-

lence, and continuously strives to improve

the eciency of its processes and the eec-

tiveness of its practices.

SIPEF’s operational excellence goals are:

 Maximising production quantity

and quality

 Optimising inputs, processes and

outputs by re-using by-products,

minimising waste, and using smart

agriculture and mechanisation

 Promoting a culture of continuous

improvement

See page 49 for more details

Respecting employees

and communities

SIPEF’s Balanced Growth Strategy rests

on the premise that growth is not possible

without being a responsible employer and

neighbour, first.

SIPEF’s goals with regards to respecting

employees and communities are:

 Respecting human, labour, and

community rights, in accordance

with local laws and international

frameworks

 Contributing to the needs of

local communities by providing

employment, and health, education,

and infrastructural services

 Foster long-term relationships,

create shared value, and support

the well-being and resilience of local

communities

See pages 156 and 227

for more details

SIPEF Integrated Annual Report 2024 Company Report

High-quality, sustainable,

traceable, certified products

Supplying high-quality, sustainable,

traceable, and certified products is key for

SIPEF to dierentiate itself from others

and diversify into targeted markets.

SIPEF’s high-quality, sustainable, tracea-

ble, certified products goals are:

 Implementing the highest food

safety and quality standards

 Maintaining 100% traceability for

all products

 Full compliance with leading

sustainability standards and

certifications

See pages 50 and 238

for more details

Responsible supply

chain management

SIPEF believes that creating value in a

responsible way includes supporting its

suppliers to become part of its sustainable

supply chain. All of the Group’s suppliers

are oil palm smallholders, whose locations

are known and mapped.

SIPEF’s responsible supply chain manage-

ment goals are to:

 Support smallholders in their

journey towards improved,

sustainable, and certified production

 Support smallholders to earn higher

incomes and have better access to

international markets

 Screen and monitor suppliers to

ensure compliance with SIPEF

policies

See page 196 for more details

32 The connection to the world of sustainable tropical agriculture

Innovation and early adoption

SIPEF recognises the immense potential

of being an early adopter of innovations

that focus on enhancing the productivity,

quality, and resilience of its future crops.

SIPEF’s innovation and early adoption

goals are:

 Investing in research and

development (R&D) to enable

progress towards sustainable

and optimal land use, ecient

production, higher quality products,

improved soil health, and resilient

crops

 Testing and applying new principles

and practices

 Remaining agile and adaptable to

accommodate strategic and market

shifts

See page 56 for more details

Good business conduct

SIPEF maintains the highest regard for

ethical business practices, understanding

their critical role in mitigating financial,

reputational, and legal risks.

SIPEF’s good business conduct goals are to:

 Foster a culture of ethical conduct

amongst management, sta, and

contractors

 Implementing systems and

processes to ensure the practice of

ethical conduct

 Maintain robust policies,

procedures, and measures to address

any risks, including those associated

with bribery or corruption

See page 256 for more details

The interactions and connections between SIPEF’s

four sustainability focus areas and goals and its

four business focus areas and goals are discussed

on pages 46-47 in the Company Report and pages

90-93 in the Sustainability Statement.

SIPEF Integrated Annual Report 2024 Company Report

STRATEGY GOVERNANCE

AND MANAGEMENT STRUCTURE

 For a detailed description of '    - see the Corporate Governance Statement

 For a detailed description of '    - see the Sustainability Statement

SIPEF board of directors

SIPEF's board of directors is ultimately responsible for the design and oversight of the Balanced Growth

Strategy.

Global teams

Delivery of the Balanced Growth Strategy is coordinated at a Group level by the global teams in Belgium,

Singapore, and Luxembourg (finance, legal, marketing, IT, operational management, sustainability, and

HR strategy). This includes monitoring and reporting on progress.

Regional teams

Regional teams at SIPEF’s subsidiaries are responsible for operational activities. This includes HR matters

(for employees and contractors), and the execution of the Balanced Growth Strategy for SIPEF’s palm

operations (in Indonesia and Papua New Guinea) and banana operations (in Côte d'Ivoire).

SIPEF executive committee

The implementation of the Balanced Growth Strategy is led by SIPEF’s executive committee, which steers

the global teams in Belgium, Singapore, and Luxembourg.

Regional executive committees

There are regional executive committees at SIPEF’s operations in Indonesia, Papua New Guinea, and Côte

d’Ivoire. These committees oversee the local teams and their operational activities and report directly to

SIPEF’s executive committee.

The connection to the world of sustainable tropical agriculture

SIPEF EXECUTIVE COMMITTEE

LUXEMBOURG

(Jabelmalux SA)

BELGIUM

(SIPEF Head Oce)

SINGAPORE

(SIPEF Singapore Pte Ltd)

(1) SIPEF has 14 subsidiaries in Indonesia. Governance, communications and reporting to the SIPEF executive committee are managed through the regional

executive committee of SIPEF’s main and largest subsidiary, PT Tolan Tiga Indonesia.

Regional executive

committee

Regional executive

committee

Regional executive

committee

PAPUA NEW GUINEA

(Hargy Oil Palms Ltd)

CÔTE D'IVOIRE

(Plantations J. Eglin SA)

INDONESIA

(PT Tolan Tiga Indonesia)

(1)

Leadership teams

Board committees

Global teams

Group subsidiaries

SIPEF BOARD OF DIRECTORS

REMUNERATION

COMMITTEE

NOMINATION

COMMITTEE

AUDIT

COMMITTEE

SIPEF Integrated Annual Report 2024 Company Report

Overview of

SIPEF's activities

Palm Oil

SIPEF cultivates oil palms on more than 85 500

hectares of land in Indonesia and Papua New

Guinea. Its estates are spread across several

locations.

In Indonesia, the Group started cultivation in 1920

at the historical sites of Tolan Tiga in Northern

Sumatra. Next, it acquired the sites of Agro Muko,

located in Bengkulu province. The sites of Umbul

Mas Wisesa group in North Sumatra, were first

planted in 2007, with its oil palms reaching the end

of their first planting cycle only in 2024.

SIPEF’s latest oil palm development is a newer

expansion in the province of South Sumatra, which

is still mostly in a young mature phase.

To complement its own

productions and meet

market demand, the Group

also sources from partner

smallholder producers

operating on 6 196 hectares

near its own sites across

Indonesia.

In Indonesia, SIPEF’s

commercial activities are

managed by the Group’s

subsidiary PT Tolan Tiga

Indonesia.

In Papua New Guinea, SIPEF started cultivating oil

palms in 1978 in the province of West New Britain,

a region known for its high yielding volcanic soils.

SIPEF’s activities In Papua New Guinea are man-

aged by its subsidiary Hargy Oil Palms Ltd.

Oil palm fresh fruit bunches (FFB) are grown and

harvested across these areas before being processed

into crude palm oil (CPO), palm kernels (PK) and

crude palm kernel oil (CPKO). SIPEF owns ten pro-

cessing mills: seven located at its sites in Indonesia,

and three in Papua New Guinea.

CPO is SIPEF's main product, accounting for

98.2% of the Group's gross profit. 100% of the

CPO produced in Papua

New Guinea is exported to

Europe. Of its Indonesian

production, 7.6% is export-

ed for sale to European

customers, and the

remaining 92.4% is sold to

customers locally.



In 2024, the Group's palm oil related activities accounted for

89.3% of its total revenue.

36 The connection to the world of sustainable tropical agriculture

Bananas

SIPEF started growing the Cavendish variety of

bananas in Côte d’Ivoire in 1985.

By the end of 2024 these have become five connect-

ed estates, which cover an area of 1 257 hectares in

the southern Lagunes Region of the country.

SIPEF’s bananas are selected and packed for export

at one of SIPEF’s seven packing stations, located on

its estates. Around 90.0%

of the Group's banana pro-

duction is exported for sale

in the United Kingdom and

on the European market,

with the remainder being

sold regionally, in West

Africa.

SIPEF’s activities in Côte

d’Ivoire are managed by

its subsidiary Plantations

J. Eglin SA, which is one of

three major players within

the banana export sector in

the country.

Rubber and tea

SIPEF started phasing out its operations in rubber

and tea in 2021. Less than 1% of the Group's revenue

in 2024 came from its residual production of these

crops. The phase out will be completed in 2025.

For more information on the phasing out of rubber,

tea, and horticulture see page 85.

Banned products

SIPEF does not produce

any products that are

banned in certain markets,

nor is SIPEF active in fos-

sil fuel sectors, chemicals

production, controversial

weapons, or the cultivation

and production of tobacco.



As the Group’s second largest activity, banana cultivation

accounted for 9.6% of its total revenue in 2024.

SIPEF Integrated Annual Report 2024 Company Report

PLANTED AREA BY ACTIVITY IN 2024 IN HECTARES

INDONESIA PAPUA NEW GUINEA CÔTE D'IVOIRE TOTAL %

Oil palms 71 951 13 550 0

85 500

98.6%

Bananas 0 0 1 257

1 257

1.4%

Total 71 951 13 550 1 257

86 756

100.0%

% 82.9% 15.6% 1.4% 100.0%

By 2031, SIPEF is aiming for a total annual produc-

tion target of 600 000 tonnes of palm oil (including

smallholders), and 55 000 tonnes of bananas. To

achieve this, SIPEF is focusing on improving pro-

duction eciency by optimising land use, improv-

ing production processes and boosting existing

oil palm yields. The Group will also continue to

seek investment opportunities by exploring the

possibilities of developing new hectares with oil

palm adjacent to its current operations in order to

enlarge its production capacity and, if needed, its

infrastructure. Additionally, SIPEF will continue

its work to retain existing property and concession

rights.

More information on SIPEF’s palm and banana

operational activities and their results for 2024

can be found on pages 62-79.

PRODUCTION 2024 IN TONNES

OWN THIRD

PARTIES

YTD Q4/24

Oil palms 301 220 61 185 362 405

Bananas 51 038 0 51 038

Planted area and production target

38 The connection to the world of sustainable tropical agriculture

SIPEF Integrated Annual Report 2024 Company Report

Sustainable

financial

growth and

shared profit

100%

sustainability

certified

products

Smallholders

access to global

markets

Community

wellbeing

Sustainable

financing

Top tier

agricultural

land

Workforce

and supplier

stability

Focus on

Research and

Development

Strong

customer

relationships

Paving the

way to enter

premium

markets

OUTCOMES STRATEGY IMPLEMENTATION

Value creation

at SIPEF

SIPEF’s value creation model below illustrates

the key inputs that allow SIPEF to implement its

Balanced Growth Strategy and deliver on its value

proposition to serve customers in niche markets

who demand high-quality, low-contaminant,

sustainability certified and fully traceable

products.

High-quality, traceable,

certified products

Respecting employees

and communities

High-quality, low contaminant,

100% sustainability certified, and fully traceable

premium palm products and bananas

VALUE PROPOSITION

Operational

excellence

Responsible supply

chain management

Environmental

stewardship

Production

eciency

Innovation and

early adoption

Good business

conduct

INPUTS

VALUE CREATION MODEL

40 The connection to the world of sustainable tropical agriculture

Sustainable financial growth and shared profit

USD 65.8 million result (share of the Group), or

USD 6.33 basic earnings per share.

100% sustainability certified products

As a key market player in certified crude palm

oil and bananas, SIPEF is raising the bar to be a

frontrunner on certification and traceability.

Smallholders access to global markets

SIPEF provides raw materials, best management

practices and certification support to enable access

to global high-value markets for smallholder

suppliers in its supply chain in Indonesia and Papua

New Guinea.

Community wellbeing

SIPEF supports employees, their family members

and communities through infrastructure devel-

opment and access to healthcare and education in

areas of development.

Paving the way to enter premium markets

SIPEF is prepared ahead of time to capture emerg-

ing high-value, niche premium markets and deliver

on its unique oering.

SIPEF's value proposition towards serving high-end customers in niche markets that demand high-quality,

low-contaminant, sustainability certified and fully traceable premium palm products and bananas, is

realised through the implementation of its Balanced Growth Strategy, and the delivery of the key goals

and related targets under that strategy.

The 8 connected focus areas under the Balanced Growth Strategy are:

• Production eciency

• Operational excellence

• High-quality, traceable, certified products

• Innovation and early adoption

• Environmental stewardship

• Respecting employees and communities

• Responsible supply chain management

• Good business conduct

STRATEGY IMPLEMENTATIONOUTCOMES

Sustainable financing

Limited financial risks through controlled debt,

protecting SIPEF from the consequences of mar-

ket volatilities and externalities such as natural

disasters.

Top tier agricultural land

Owned land/ long-term leased land in suitable

geographical areas with excellent conditions for the

long-term cultivation of tropical and agricultural

products.

Workforce and supplier stability

Stable retention rates of workers and smallholder

suppliers by always meeting RSPO, Rainforest

Alliance, and Fairtrade requirements on labour

rights and fair wages.

Focus on Research and Development

R&D investments via SIPEF's joint venture Verdant

Bioscience Pte Ltd to excel in the production of

resilient, high yielding oil palms and the piloting

and scaling of climate adaptation measures with a

focus on water eciency and soil health.

Strong customer relationships

Key customers who have long term relationships

and consistent contracts with SIPEF for the pro-

vision of sustainable palm products and bananas.

INPUTS

SIPEF Integrated Annual Report 2024 Company Report

SIPEF'S PALM OIL VALUE CHAIN

As an upstream player, SIPEF's core activities focus on the cultivation of oil

palm, and on the harvesting and processing of fresh fruit bunches (FFB) into

crude palm oil (CPO), palm kernels (PK) and crude palm kernel oil (CPKO).

SIPEF’s palm oil value chain is visualised below, with explanatory text

describing its key upstream features and inputs, SIPEF’s own operations

and those of its suppliers, and key downstream elements.

Raw material inputs and production resources

such as seeds, plants, and fertiliser are

supplied by third parties as well as by SIPEF's

R&D joint venture Verdant Bioscience Pte

Ltd. SIPEF imports and purchases production

resources locally, including machinery,

equipment, and tools, and purchases logistics

and infrastructure services for harvesting,

transport, and processing. It also provides its

smallholder suppliers with the required raw

materials and production resources. Other

key inputs include long-term leasing of land,

securing new land for development, and

securing contracts with smallholder suppliers.

More than 24 000 employees work in SIPEF’s

plantations and mills in Indonesia and Papua

New Guinea. They are responsible for the

cultivation, harvesting, transportation, and

processing of CPO, PK and CPKO.

SIPEF also purchases FFB from around

5 540 smallholder suppliers whose production

areas are in close proximity to the Group's

plantations.

In accordance with RSPO certification

requirements, SIPEF provides employees and

their families, many of whom are members of

nearby communities, with social, economic,

educational, health, housing, and clean energy

support.

Oil palms are cultivated on SIPEF's own

plantations. Palm oil seeds are germinated in a

controlled environment and then transferred

to polybags. In the nursery they are cared for

until they are large enough to be planted in the

field, usually after about one year. An oil palm

typically produces its first FFB after about

three years. After this, it is considered mature

and ready for harvesting.

FFB are harvested and transported to SIPEF's

mills and crushing plants.

SIPEF

PLANTATIONS

ORGANIC FERTILISER

INPUTS

SMALLHOLDER

PLANTATIONS

SIPEF MILLS

INCL. KERNEL

CRUSHING PLANTS

MILL WASTE +

FFB

SIPEF EMPLOYEES

Third-party activities

SIPEF activities

SIPEF product destination

42 The connection to the world of sustainable tropical agriculture

At the mills, FFB are stripped and separated.

The palm fruits are processed into pulp and

pressed to extract CPO. Palm kernels are

crushed to extract CPKO.

Mill waste and by-products are used to

generate clean energy for all of SIPEF's mills

and surrounding communities. At some sites,

palm nut mesocarp fibres are burnt in boilers

connected to steam turbines that generate

renewable energy. At other sites, methane is

captured from palm oil mill euent (POME)

and used to fuel a biogas generator to produce

renewable electricity.

Organic waste and biomass, such as empty

fruit bunches (EFB) and treated POME, are

applied to the fields as organic fertiliser.

Some CPO is washed to remove impurities

and enhance quality to produce a food grade,

premium product for customer refineries.

Other CPO is left in its crude form.

When ready, the CPO is transported by tanker

trucks to nearby ports. In Indonesia, local

crushers collect PK at SIPEF mills.

In Indonesia: CPO extracted at SIPEF's seven

mills is collected and transported by third

party partners to tanker terminals for export

to Europe. The remaining CPO is transported

overland by truck to be processed by local

refiners.

In Papua New Guinea: SIPEF manages the full

storage and transport chain of CPO and CPKO

processed at its three mills. One hundred

percent of this goes into tankers for export to

Europe.

SIPEF's key customers are refiners in Europe

and local kernel crushing plants. They sell

SIPEF's oil on to a network of niche high-end

food, chemical, and cosmetic industries

that require high-quality, premium CPO and

CPKO to produce products for European and

American retailers.

RENEWABLE ENERGY

SIPEF MILLS

INCL. KERNEL

CRUSHING PLANTS

SIPEF EMPLOYEES COMMUNITIES

CUSTOMERS

REFINERS & KERNEL

CRUSHING PLANTS

CPO, PK &

CPKO

BYPRODUCTS

STORAGE/

TRANSPORT

DISTRIBUTION

NETWORK

RETAILERS

CONSUMERS

12 14

SIPEF Integrated Annual Report 2024 Company Report

SIPEF'S BANANA VALUE CHAIN

SIPEF's activities in banana production focus on the cultivation, harvest-

ing, and transportation of green banana bunches. From packing stations,

SIPEF's bananas are sold to ripening and distribution centres in consumer

markets. SIPEF’s banana value chain is visualised below, with explanatory

text describing its key upstream features and inputs, SIPEF’s own operations

and those of its suppliers, and key downstream features.

Raw material inputs, such as in vitro banana

plants and fertilisers, are supplied by third

parties across three continents to enhance

disease resilience and optimise yields. Plants

with higher disease tolerance require less

frequent chemical spraying. Production

resources like machinery, equipment, and

tools are locally sourced as well as imported.

Electricity for field irrigation and packing

stations is purchased from the public grid.

Land for cultivation is either owned by SIPEF

or secured through long-term leasing from the

government.

More than 2 000 employees carry out the

cultivation, harvesting, and transportation of

bananas across SIPEF's five estates in Côte

d'Ivoire. An additional 400 employees work

across the seven packing stations where

bananas are selected, packed and palletised.

In accordance with Rainforest Alliance and

Fairtrade certification requirements, SIPEF

provides employees and their families, many

of whom are members of nearby communities,

with social, economic, educational, health,

housing, and clean energy support.

During the first three months of cultivation,

Cavendish banana in vitro plants are grown

in SIPEF's nurseries, before being planted at

the plantations. After around nine months the

banana bunches are mature.

Organic field waste and biomass, such as

banana stems and empty bunches from the

plantations as well as empty palm fruit bunches

and cocoa husks from local suppliers, are

applied to the fields as organic fertiliser.

Green banana bunches are harvested,

collected, and transported by cable car

SIPEF BANANA

PLANTATIONS

SIPEF BANANA

PACKING

STATIONS

TRANSPORTED

GREEN

BANANAS

SIPEF EMPLOYEES

ORGANIC FERTILISER

INPUT

BY THIRD PARTIES

FIELD WASTE+

Third-party activities

SIPEF activities

SIPEF product destination

INPUTS

44 The connection to the world of sustainable tropical agriculture

RETAILERS

SUPERMARKETS

CONSUMERS

or tractor to one of SIPEF's seven packing

stations.

At the packing stations, banana bunches

are separated into hands. These are

washed, analysed, and sorted by customer

classifications. Quality and traceability

parameters are checked according to

destination market requirements and

customer specifications.

Green bananas are packed and palleted.

Around 90% are prepared for export from

the Port of Abidjan to destination ports in

the United Kingdom (UK), Europe, and West

Africa. The remaining pallets are loaded

into reefer trucks for transport overland

to neighbouring countries. All transport

preparation takes place in SIPEF's packing

stations, where the cold chain also begins.

Packing materials from banana packing

stations are re-used or recycled. Locally

purchased cardboard boxes and pallets are

recycled by customers at their destination. For

some UK customers, re-usable IFCO crates are

used for packing and transporting the bananas.

At the port of Abidjan SIPEF's containers are

controlled and loaded onto vessels belonging

to one of two key partner shipping lines. When

these vessels arrive at their destination ports,

their containers are cleared by customs and

discharged.

Around 60% of SIPEF's green bananas are

destined for ripening depots in the UK, before

being sold to retailers. Around 30% of banana

go to the European market, where they first

go to warehouses, before being distributed

to ripening depots, and then retailers. The

remaining 10% of SIPEF's bananas are sold on

the West African market.

SIPEF BANANA

PACKING

STATIONS

TRANSPORTED

GREEN

BANANAS

SIPEF EMPLOYEES COMMUNITIES

CUSTOMERS

RIPENERS AND

DISTRIBUTORS

PACKED AND

PALLETISED

GREEN

BANANAS

CONTAINER/

TRANSPORT

DISTRIBUTION

NETWORK

RECYCLABLE AND REUSABLE

PACKING MATERIALS

REUSABLE

IFCO CRATES

FIELD WASTE+ BYPRODUCTS

SIPEF Integrated Annual Report 2024 Company Report

SIPEF’s

business strategy

COMMERCIAL PRIORITIES

AND THE BALANCED GROWTH STRATEGY

SIPEF's Balanced Growth Strategy is made up of four business focus areas and four sustain-

ability focus areas. Each focus area is supported by a set of goals, approaches and targets.

• Production efficiency

• Operational excellence

• High quality, sustainable,

traceable, certified products

• Innovation and early

adoption

BUSINESS FOCUS AREAS SUSTAINABILITY FOCUS

AREAS

• Environmental stewardship

• Respecting employees and

communities

• Responsible supply chain

management

• Good business conduct

SIPEF’s Balanced Growth Strategy

has four focus areas that drive its commercial activities

The Group’s commercial strategy is implemented

through long-term investments, programmes and

projects, that centre around the four focus areas:

production efficiency, operational excellence,

high-quality, sustainable, traceable, certified

products and, innovation and early adoption.

All four focus areas, and their related business goals

are closely linked and interrelated with SIPEF’s

sustainability focus areas and those goals.

The connection to the world of sustainable tropical agriculture

Together, they ensure that commercial growth is

always balanced with good business practices and

commitments to managing plantations, operations

and supply chains responsibly, whilst contributing

to society and local economies.

The Group’s mission to produce high-quality, low

contaminant, 100% sustainability certified and

fully traceable palm oil products and bananas, is

the strongest example where SIPEF’s business,

and sustainability strategy, focus areas and goals,

are strongly interconnected and interdependent.

Other key areas of integration include growth

whilst always applying strict social and environ-

mental requirements for new developments and

suppliers; implementing best management prac-

tices and regards for human rights when making

operational improvements for better eciency; and

ensuring fair employment and social development

opportunities in the rural in areas where SIPEF

operates, when applying new innovative ways of

working.

The full set of sustainability and business goals is

available under ‘Balanced Growth Strategy’.

BUSINESS STRATEGY IMPLEMENTATION

Production efficiency

Oil palm and banana plants are naturally highly

productive crops but yields and eciency can be

significantly improved through the optimisation

of land use and production processes. That’s why

production eciency is a core strategic focus area

for SIPEF.

The Group is committed to implementing best

management practices that aim to improve soil

health, optimise inputs to production, and further

increase product quality and the yield per planted

hectare. Investments in research and development

(R&D) and in innovative solutions are also support-

ing the Group’s production eciency goals. SIPEF

also continues to explore new opportunities for

development in brownfield areas, in accordance

with its no deforestation and no new planting on

peat (NDP) policy.

In 2024, SIPEF also continued investing in new

machinery and refurbishing existing machinery to

make production more ecient at its palm oil mills.

This included three boilers used to generate renew-

able energy. The refurbishments reduce oil losses

through process eciencies, while also lowering

emissions. Further boiler upgrades, including the

installation of CPO washing facilities and biogas/

methane capturing plants, are planned for 2025.

PRODUCTION EFFICIENCY GOALS:

 Optimising land use in production areas.

 Improving production processes.

 Engaging in practices and solutions focused

on improving soil health and boosting yields.

SIPEF Integrated Annual Report 2024 Company Report

Improving soil health to enhance

production eciency

SIPEF is investing in numerous initiatives and

activities to improve soil health across its opera-

tions. This includes agricultural practices and opti-

mised use of organic materials to sequester carbon

in the soil and improve soil structure. Healthier

soil requires less inorganic fertiliser, which allows

SIPEF to reduce both GHG emissions and costs.

In addition to improving production, decreasing

climate impacts, and increasing climate resilience,

investing in soil health also improves business

resilience. Oil palm production depends on the use

of fertilisers and other inputs that are produced in

many areas of the world. Supply chain disruptions

due to geopolitical events can have a major impact

on the price or availability of these inputs. All these

initiatives to improve soil health help to reduce

reliance on externally sourced inputs, increasing

resilience to external impacts.

High-yielding oil palm is part of the solution to land scarcity

Palm oil plays a crucial role in meeting the inter-

linked challenges of land scarcity and growing

global demand for vegetable oils. While the

world’s population continues to rise, the amount

of available arable land is decreasing due to land use

competition, soil degradation caused by human-in-

duced erosion and pollution, and the surging global

demand for food. In the coming decades, this will

be compounded by the risks linked with climate

change.

Oil palm is highly productive, yielding as much as

two to eight times more per hectare than any other

vegetable oil crop.

Globally, palm oil supplies 40%

of the world's vegetable oil demand on just under 6%

of the land used to produce all vegetable oils.

It also

has the lowest requirements for inputs of fertilisers,

pesticides, and fuel per tonne of production. This

makes palm oil an important part of the solution

to the challenge of land scarcity.

(1) Source: www.wur.nl/en/newsarticle/New-light-on-the-sustainability-of-palm-oil.htm

(2) Source: www.wwf.org.uk/updates/8-things-know-about-palm-oil

48 The connection to the world of sustainable tropical agriculture

OPERATIONAL EXCELLENCE GOALS:

 Maximising production quantity and quality.

 Optimising inputs, processes and outputs by

re-using by-products, minimising waste and

using smart agriculture and mechanisation.

 Promoting a culture of continuous

improvement.

Operational excellence

SIPEF is committed to operational excellence and

aims to continuously improve its processes and

practices. There is a strong focus at every level on

executing the business strategy more eciently and

eectively, with lower operational risk, lower oper-

ating costs, and increased revenues. This means

maximising the value of the Group's activities and

outputs, both in terms of the quantity and quality

of its products to meet customer demand, but also

in the new or added value that can be generated for

the by-products of production processes.

A continuous improvement department was estab-

lished in 2024, with the aim of optimising all palm

oil operations to be more ecient and eective.

This department's mandate is to create a culture

where management and employees are invested in

business outcomes and empowered to implement

change across all palm oil business processes and

practices. The focus for this department during

2024 was on improving data management and

analysis, mapping practices, and identifying oppor-

tunities for improvement.

This department will also ensure that success

stories and learnings are taken on board and

applied across all areas of operations. This applies

throughout the business from the ground up and

includes the creation of discussion groups among

employees on the estates.

SIPEF Integrated Annual Report 2024 Company Report

Smart agriculture: mechanisation of harvesting processes

An area of focus in 2024 that will continue into

2025 and beyond is investing in the right tech-

nology to mechanise harvesting processes and

increase eciency. For example, GPS trackers are

being introduced to trucks to optimise logistics

within and between locations, reducing sta time

and fuel costs. New cranes are being rolled out that

can be used to load multiple trucks, reducing the

double handling in the field and improve quality

of the fruit. Improving harvesting eciency and

introducing further mechanisation is important

given growing challenges in recruiting employ-

ees in both Indonesia and Papua New Guinea. To

incentivise people to join the industry, SIPEF also

focuses on improvements that support employees in

the fulfilment of their roles. For example, in several

areas there has been a shift from manual to electric

wheelbarrows with in-house modifications made

to adapt to what works best for SIPEF employees.

Plantations are also adopting carbon-fibre har-

vesting poles that are lighter and more agile than

traditional poles. These activities aim to improve

eciency in the harvesting and transportation of

FFB, to ultimately improve both yields and quality.

High-quality, sustainable, traceable, certified products

SIPEF is committed to producing high-quality,

sustainable, traceable, and certified palm oil and

bananas. This contributes to the Group's mission

to foster a harmonious balance between nature,

people, and growth, while also differentiating

the Group from other players on the market and

providing a competitive advantage.

High-quality, low contaminant products

SIPEF's commitment to high-quality starts

from the initial stages of production and extends

throughout its supply chain. This is an important

commitment that dierentiates SIPEF from its

competitors while meeting growing demand for

high-end, premium products.

For its palm oil operations, the Group has estab-

lished comprehensive quality assurance protocols

and conducts regular inspections and tests to

ensure that its palm oil meets the strictest industry

standards for food safety.

SIPEF aims to significantly minimise contami-

nants, such as Mineral Oil Saturated Hydrocarbons

(MOSH), Mineral Oil Aromatic Hydrocarbons

(MOAH), and Chloride (the precursor that can

lead to a higher formation of 3-monochloropro-

pane-1,2-diol (3-MCPD) and Glycidyl Esters (GE) in

the refining process). These contaminants can lead

to health concerns if consumed in large quantities.

GOALS FOR THIS FOCUS AREA ARE:

 Implementing the highest food safety and

quality standards.

 Maintaining 100% traceability for all

products.

 Full compliance with leading sustainability

standards and certifications.

50 The connection to the world of sustainable tropical agriculture

Taking a leading role in significantly minimis-

ing these contaminants positions SIPEF well to

respond to growing concerns in consumer countries

over additives and specific contaminants in vege-

table oils, alongside the requirements of European

food safety regulations.

During the course of 2023 – 2024 a series of tar-

geted programmes were successfully implemented,

aimed at producing low contaminant crude palm

oil (CPO), and thereby unlocking new supply chain

opportunities in premium markets.

Stringent safety controls across

SIPEF’s banana value chain

Eective procedures and controls are in place to

uphold the quality and food safety of the Group's

banana production. Strict maximum residue levels

(MRL) regulations apply for the United Kingdom

and the European Union (EU), SIPEF’s destination

markets.

To ensure consistent compliance with these

regulations, and maintain high GLOBALG.A.P.

certification standards, year-round assessments

across all of the farms of Plantations J. Eglin SA

(Plantations J. Eglin) are conducted. These tests

assure the readiness and eectiveness of SIPEF’s

traceability protocols and process, in the unlikely

event of a food safety incident.

Should a risk or incident be identified or reported,

SIPEF’s traceability system enables full tracking

of the aected banana, back to its field of origin

including harvest details, applied treatments, per-

sonnel involved, and processes at packing stations

and during transportation.

Further information on SIPEF’s approach to con-

sumer and end-user health and safety, including

2024 initiatives, is available in ‘S4: Consumers and

end-users’ in the Sustainability Statement.

SIPEF Integrated Annual Report 2024 Company Report

Prevention of 3-MCPD formation through CPO washing

CPO washing is an eective way to eliminate chlo-

ride and ensure a premium product.

In 2024, a pilot CPO washing plant was installed

at one of SIPEF’s mills in Indonesia. Standard

operating procedures were implemented, and

in-house testing capabilities and protocols were

developed. The first batch of washed CPO was

delivered with promising results, placing SIPEF in a

leading position to produce CPO with significantly

lower chloride levels than those recommended by

European food safety standards.

In 2025, SIPEF will continue to invest in devel

oping its state-of-the-art CPO washing capacities

in response to customer demands for CPO with

significantly lower chloride levels that what is

currently available on the market.

As such SIPEF is able, ahead of its peers, to respond

to the requests of its customers and are taking the

lead in raising the bar and setting new standards

with regards to producing premium CPO.

Control and reduction of MOSH and MOAH

MOSH and MOAH can enter palm oil at dierent

stages of food production including cultivation,

processing, storage or transportation.

A Group wide strategy was launched in 2023

underpinned by significant investments in

resource capacities, machinery and equipment.

Under ‘Engineering 2.0’ the transition to H1 food

grade lubricants was realised for all mills in 2023.

Over the course of 2024, the Group progressed to

refurbish, upgrade, do maintenance on, or replace

all machinery and presses across its mills. New

engineering controls and procedures were devel-

oped, and the necessary change management and

cultural shifts were implemented. As such, across

SIPEF’s entire operations, state of the art processes,

machinery and facilities now significantly reduce

the risk of lubrication leaks.

During 2024, all CPO mills and PKO crushers were

using only H1 food grade lubricants. Regular and

strict sampling was carried out by SIPEF as well

as by customers themselves, confirming a clear

and consistent reduction in MOSH and MOAH,

significantly lower than the European Food Safety

Authority, or current customer requirements.

With the success of this programme, SIPEF has

firmly placed itself on the market as the provider

of low contaminant, high-quality premium CPO.

The connection to the world of sustainable tropical agriculture

Full traceability for palm oil and bananas

SIPEF is a market leader in traceability, with all its

products being fully traceable to their production

location, either an estate managed by SIPEF or a

supplier smallholder plot.

Traceability goes hand in hand with sustainability,

and all the sustainability certification schemes

SIPEF complies with require full traceability on

sourcing to claim full sustainability of a product.

This is important because it enables customers

and consumers to ascertain that the products they

buy are indeed sourced from certified

estates and smallholders, and there-

fore contribute to environmental,

social and economic sustainability.

Traceability is also crucial for

ensuring food safety, meeting con-

sumer demands for transparency,

complying with regulations, and

improving supply chain manage-

ment and eciency. SIPEF’s trace-

ability capabilities prepare the Group

for compliance with the European

Union Deforestation Regulation

(EUDR), which mandates stringent

traceability requirements to ensure

that commodities placed on the EU

market do not come from deforested

land.



In 2024, SIPEF maintained 100% traceability for its palm oil

products and bananas.

SIPEF uses an advanced interactive mapping appli-

cation called GeoSIPEF to give its palm customers

traceability insights and provide comprehensive

tracking and verification of product origins. The

application makes it possible to view all locations of

cultivation and processing, either a block within an

estate managed by SIPEF or a smallholder supplier

block.

Further information on SIPEF’s approach and pro-

gress for traceability is available in ‘S4: Consumers

and end-users’ in the Sustainability Statement.

SIPEF Integrated Annual Report 2024 Company Report

75%

RSPO certified planted areas

(own plantations)

100%

RSPO certified

PKO in Papua

New Guinea

3 mills

in Indonesia

ISCC certified

6 mills

in Indonesia

ISPO certified

87%

RSPO certified

CPO

9 mills

RSPO

certified

2 kernel

crushing plants

in Papua New Guinea

RSPO certified

Sustainability standards and certification

SIPEF produces palm oil and bananas while

preserving natural ecosystems, engaging in fair

labour practices, and providing support for local

communities in the places where it operates.

One of the ways that the Group demonstrates this

commitment to positive impact is through sustain-

ability certification. SIPEF consistently meets the

leading sustainability standards in the palm oil and

banana industries.

All sustainability certification standards that

SIPEF complies with are developed by indepen-

dent organisations and credible industry bodies,

with third-party auditing that includes rigorous

audit procedures at sites of operation. This gives

SIPEF’s customers and end-users the confidence

that SIPEF's sustainability claims are verifiable,

credible, and trustworthy. Supplying sustainabil-

ity certified products to its customers also helps

them to perform better on their own sustainability

related supply chain objectives.

Palm oil certification

SIPEF is working towards a target of 100%

Roundtable on Sustainable Palm Oil (RSPO) certi-

fication across all its palm oil operations, including

its smallholder supply base. A structured, time-

bound plan is in place to ensure that all mills and

supply bases achieve 100% certification by 2030.

As of 31 December, 75.3% of SIPEF’s own planted

area is RSPO certified. The nine mills and two

kernel crushing facilities previously certified have

maintained their RSPO certification, with eight

mills under the Identity Preserved (IP) model

and one mill under the Mass Balance (MB) model.

SIPEF’s tenth and newest mill, Agro Muara Rupit,

became operational in July 2024 and has begun

54 The connection to the world of sustainable tropical agriculture

5 estates and

7 packing

stations

1. Rainforest Alliance

certified

5 estates and

7 packing

stations

GLOBALG.A.P

certified

5 estates and

7 packing

stations

Fairtrade

certified

preparations for certification. Additionally, six of

the Group’s mills in Indonesia are certified under

the Indonesian Sustainable Palm Oil (ISPO), with

preparations underway for the seventh mill, Agro

Muara Rupit.

Currently, the planted area in Musi Rawas is still in

the process of acquiring its cultivation licence (Hak

Guna Usaha – HGU). Until all HGUs are obtained,

the RSPO certification process cannot begin, and all

fruit production remains uncertified. This uncer-

tified fruit is delivered to the MB RSPO-certified

Dendymarker palm oil mill, where it is mixed with

RSPO-certified production from PT Dendymarker.

As a result, all palm oil production from South

Sumatra is certified under the MB model.

Banana certification

As of 2024, the Group's entire banana operations

– all five estates and seven packing stations of

Plantations J. Eglin - are 100% Rainforest Alliance,

Fairtrade and GLOBALG.A.P. certified.

During the course of the year, SIPEF completed the

certification process of its newest sites, Akoudié

and Lumen, which the Group had acquired in Cote

d’Ivoire, in 2021.

The Group's headquarters in Belgium remained cer-

tified under the GLOBALG.A.P. Chain of Custody

Standard and the Rainforest Alliance supply

chain certification standard (2020 Sustainable

Agriculture Standard: Supply Chain Requirements).

Additionally, it maintained its Fairtrade Trader

Standard certification.

More information about the implementation of

specific environmental, social and governance-

certification requirements is available in the

sustainability statement of this report.

SIPEF Integrated Annual Report 2024 Company Report

Innovation and early adoption

SIPEF places great importance on innovation and

the early adoption of new practices and technol-

ogies. The Group’s innovation focus is leading to

higher quality products, optimised land use, and

reduced carbon impacts.

Much of SIPEF's innovation is focused on pro-

duction eciency. Local teams across all areas of

operations continue to test and apply new principles

in production. This is also the driving force behind

SIPEF's strategic investment in Verdant Bioscience

Pte Ltd (VBS). VBS is working on several innova-

tion areas that have the potential to enhance palm

oil production, such as the development of high-

er-yielding oil palm varieties that have improved

resilience to pests, diseases and climate-related

challenges.

The Group also continues to invest in digitalisation,

geographic information system (GIS) mapping,

and other advanced technologies with the aim of

developing predictive modelling capabilities that

can be used to determine yield and climate impacts

in the future. For example, SIPEF is using GPS data,

high-resolution imagery and drone technology that

has enormous potential to optimise production

eciency. Drones can be used to identify diseases or

lack of nutrients, allowing for earlier intervention.

Fertiliser application can also be carried out by

drone, allowing for greater eciency while reducing

risks associated with manual application.

Crucially, SIPEF is investing in the granularity of

the data it collects and the analysis of this data,

enabling better informed business decisions across

all areas of its operations.

GOALS UNDER INNOVATION AND EARLY ADOPTION:

 Investing in research and development

(R&D) to enable progress towards

sustainable and optimal land use, ecient

production, higher quality products,

improved soil health and resilient crops.

 Testing and applying new principles and

practices.

 Remaining agile and adaptable to

accommodate strategic and market shifts.

56 The connection to the world of sustainable tropical agriculture

Piloting technology for climate resilience

During 2024, several pilot projects were initiated

to utilise new technologies to improve production

eciency and resilience to the impacts of climate

change. If successful, these initiatives will be devel-

oped and scaled up further in 2025.

 

Drone and satellite technology is being used to

produce digital maps of production areas that will

generate improved yield projections. Historical data

is combined with current analysis of soil health,

weather patterns, the genetic potential of the palm

varieties, and nutrient analysis. This improves

accuracy of projections while reducing investment

in analogue monitoring.

  

 

Better monitoring is being introduced to measure

changes in carbon emissions and identify which

activities and conditions impact emissions.

 

A research programme on soil health is investigat-

ing climate change resilience and how to reduce the

use of inorganic fertilisers.

   

SIPEF already uses empty fruit bunches (EFB) as

organic fertiliser. However, the Group is now work-

ing with a partner to explore additional potential

applications, including carbonising biomass. This

process reduces the emissions produced from EFB

breaking down in the fields, while sequestering

carbon in the soil, improving soil structure, and

enhancing water-holding capacity.

SIPEF Integrated Annual Report 2024 Company Report

Verdant Bioscience Pte Ltd

SIPEF is committed to driving innovation, embrac-

ing continuous improvement, and championing the

early adoption of advanced technologies, including

new genetic varieties. For this reason, SIPEF made

a strategic investment in Verdant Bioscience Pte

Ltd (VBS) in 2013. Having access to a research and

development (R&D) source provides a great deal of

value to the Group’s operations.

Currently, VBS is focused on three critical areas

of R&D, each poised to significantly enhance the

profitability, sustainability and climate resilience

of palm oil production:

 Development of genetically improved oil palm

varieties with higher yields and enhanced

adaptability to SIPEF’s plantation environments,

including resilience to the effects of climate

variability;

 Strengthening pest and disease genetic tolerance

while building resilience to environmental,

biological and climate-related challenges;

 Advancing agronomic practices, with an

emphasis on innovative approaches that improve

soil health, support regenerative agriculture and

mitigate the impacts of climate change.

By committing to these areas of innovation, SIPEF

is laying a sustainable foundation for long-term

productivity and environmental stewardship,

ensuring that resources are utilised eectively

while preserving the integrity of its ecosystems.

58 The connection to the world of sustainable tropical agriculture

Oil Palm F

Hybrids

VBS is working to develop and deliver the world’s

first high-yielding, trial-proven F

Hybrid varieties

for the oil palm industry. Oil palm F

Hybrids have

the potential to double yield per hectare, thereby

helping to meet demand while mitigating risks of

deforestation and biodiversity loss.

VBS is making significant progress with its

Hybrid trial testing programme and each year

more genetically diverse and potentially higher

yielding F Hybrid crosses are trial tested. In 2021,

the programme began with the planting of 31 genet-

ically dierent F

Hybrid crosses. This was followed

by an additional 42 crosses in 2022, 161 crosses

in 2023 and 140 crosses in 2024. The trials aim

to rigorously evaluate the yield performance and

adaptability of these hybrids, ensuring they meet

VBS' high standards before the potential commer-

cial release of the first oil palm F

Hybrids in 2029.

A major milestone was achieved in January 2024,

when VBS commenced harvesting and yield

recording its first F

Hybrid trial. It is too early to

conclude which F

Hybrid crosses will be selected

for commercialisation, but early yield performance

is promising.

Disease tolerance

Another major objective is to ensure that VBS’

Hybrids that are eventually commercially

released are tolerant to the Ganoderma disease.

This disease often causes serious commercial losses

in terms of palms per hectare and yield reduction

after first generation oil palms are replanted.

Hybrid crosses are screened in the nursery for

disease tolerance, drought tolerance and variation

in nutrient uptake. The crosses are then field tested

in a range of environments in dierent geograph-

ic locations and in areas with higher Ganoderma

disease inoculum to accelerate selection progress.

SIPEF Integrated Annual Report 2024 Company Report

Climate resilience

VBS is developing commercial F

Hybrid crosses

that will deliver high yields despite the changing

rainfall patterns caused by climate change and

in more marginal environments in terms of soil

fertility.

These eorts reﬂect a commitment to enhancing

the adaptability and resilience of oil palm varieties

in response to evolving environmental conditions.

Each year, more batches of genetically diverse

Hybrid crosses are trialled across SIPEF’s

plantations to ensure optimal selection for the

Company’s estates and tailored alignment with

SIPEF’s management practices.

Improvements in agronomic practices

VBS provides tailored agronomic recommendations

for each SIPEF estate block and field, aiming to

maximise return on investment while restoring and

maintaining soil regenerative health. To achieve

this, ongoing fertiliser field trials are being con-

ducted to evaluate the eects of various treatments,

including major and minor nutrients, across diverse

environments. The objective results gained from

these trials will make it possible to refine fertiliser

recommendations tailored specifically to the needs

of SIPEF estates.

Inorganic fertiliser expenses account for over

50% of a plantation’s direct costs, which makes it

crucial to optimise fertiliser application rates. VBS

research has intensified its focus on regenerative

agricultural practices, emphasising the manage-

ment of legume cover crops, shrubs and trees to

enhance nitrogen fixation and overall soil health.

These practices are designed to extract greater

value from both organic and inorganic fertilisers,

resulting in higher yields per nutrient unit applied.

Further eorts are directed at utilising organic

fertilisers, such as compost derived from a combi-

nation of palm oil mill empty fruit bunches (EFB)

and palm oil mill euent (POME), or EFB alone

where composting facilities are unavailable. These

organic fertilisers act as ecient slow-release nutri-

ent sources, improving soil health and reducing the

risk of soil-borne diseases by increasing microbial

diversity and activity.

60 The connection to the world of sustainable tropical agriculture

Improvements in crop protection practices

SIPEF and VBS promote integrated pest and dis-

ease management strategies, prioritising biological

control methods and preventative measures, with

minimal reliance on pesticides. In cases where

biological control proves ineective, VBS will only

recommend the use of targeted pesticides specif-

ically tailored to control the pest, using precise

application techniques. Broad-spectrum pesticides

are avoided whenever possible.

VBS introduced and manages a SIPEF facility to

produce a fungus (Trichoderma) that is antag-

onistic to the Ganoderma disease to be used on

SIPEF’s Indonesian estates. Research continues

to investigate and improve application methods

and to select the optimal Trichoderma isolates for

each environment.

Crude palm oil quality

VBS has been actively supporting SIPEF’s

Indonesian estates by providing services to inves-

tigate the variation between their palm oil mills

of levels of Mineral Oil Saturated Hydrocarbons

(MOSH), Mineral Oil Aromatic Hydrocarbons

(MOAH), and chloride in crude palm oil (CPO).

The objective is to eliminate contaminants and

ensure compliance with stringent European Union

food safety standards.

To address these challenges, VBS has investigated

where contamination happens in the palm oil pro

duction process. This allows SIPEF to demonstrate

high standards of quality and safety across its palm

oil supply chain.

SIPEF Integrated Annual Report 2024 Company Report

In 2024, SIPEF's operational activities highlighted

many opportunities for growth, despite climatic

impacts that were felt across Indonesia.

Despite these pressures, Indonesia demonstrated

resilience, achieving a 2.1% increase in fresh fruit

bunch (FFB) production, underscoring the eec-

tiveness of the Group's strategic investments in

sustainability and operational eciency.

North Sumatra saw a mixed performance, with pro-

duction challenges due to previous water deficits.

However, infrastructure upgrades, including mill

enhancements and pest control measures, sup-

ported operational stability. Citra Sawit Mandiri’s

RSPO certified crop was successfully integrated

into the Umbul Mas Wisesa mill, and replanting

eorts resulted in the immature hectare count

increasing to 3 850 hectares.

In Bengkulu, production was influenced by

adverse weather patterns, with a dry spell between

September and December 2023 delaying fruit devel-

opment and aecting crop availability in early 2024.

While full year FFB production decreased by 5.2%,

ongoing operational enhancements, including 1 298

hectares of newly planted oil palm and 2 256 hec-

tares of replanting, have positioned the region for

future growth. The average age of oil palms across

the estates now stands at 10.5 years, reﬂecting the

continued replanting of the region’s plantations.

South Sumatra emerged as a major growth driver,

recording a 20.9% increase in FFB production

and a 19.6% rise in crude palm oil (CPO) output.

These results were supported by the contribution of

8184 hectares of young palms, favourable rainfall,

improved fruit ripening in younger mature areas,

and the operational launch of the Agro Muara

Rupit mill. With 18 876 own mature hectares and

2 991 smallholders' mature hectares, and a total

area of 30 052 hectares planted, own and small-

holders' plantations, South Sumatra remains

pivotal to SIPEF’s long-term growth strategy as

newly matured areas progressively contribute to

production.

In Papua New Guinea, SIPEF demonstrated

resilience in recovering from the November 2023

eruption of Mount Ulawan. Rehabilitation eorts

progressed eciently, with 3 500 hectares of ash-af-

fected areas fully pruned by May 2024, preparing

the estates for future production. Despite these

eorts, SIPEF's own FFB production ended the

year 22.5% lower than 2023, while the total palm

oil production saw a 22.1 % decline, in line with

expectations following the eruption.

Smallholder production was less aected by the

eruption and only experienced a 13.2% decline,

although recovery is already underway. Favourable

rainfall in the second half of 2024 further support-

ed the region’s gradual rebound.

PALM OIL: OPERATIONAL ACTIVITIES IN 2024

SIPEF's operational

activities and results

62 The connection to the world of sustainable tropical agriculture

As part of its commitment to sustainability,

SIPEF finalised an integrated High Conservation

Value (HCV) and High Carbon Stock Approach

(HCSA) assessment, identifying opportunities for

conservation as well as for new developments in

collaboration with smallholders. These initiatives

reinforce SIPEF's dedication to environmental

stewardship and community engagement.

Across all operations, 2024 reinforced the impor-

tance of adapting and investing in the long-term

growth of the business. While Indonesia and Papua

New Guinea experienced overall declines in produc-

tion due to climatic and volcano impacts, SIPEF’s

targeted eorts, particularly in South Sumatra,

showcased the potential for continued growth. With

strategic replanting programmes, infrastructure

upgrades, and sustainability initiatives, SIPEF

remains well-positioned to drive sustainable per-

formance in the years ahead.

SIPEF Integrated Annual Report 2024 Company Report

Operational activities in Indonesia

Together with its subsidiary, PT Tolan Tiga Indonesia, SIPEF controls and manages its

operational activities in Indonesia through the head office in Medan and three regional

management offices in the provinces of North Sumatra, Bengkulu, and South Sumatra,

where its plantations and mills are located.

North Sumatra

Kerasaan

Eastern Sumatra

Citra Sawit Mandiri

Toton Usaha Mandiri

Umbul Mas Wisesa

Tolan Tiga

Agro Rawas Ulu

Agro Muara Rupit

Dendymarker Indah Lestari

Agro Kati Lama

Agro Muko

Mukomuko Agro Sejahtera

South Sumatra

Bengkulu

1 2

Estates

Mills

Bandar Sumatra

* see GeoSIPEF for further details

Names and locations of SIPEF’s plantations

and mills in Indonesia*

64 The connection to the world of sustainable tropical agriculture

INDONESIA, NORTH SUMATRA

MATURE

IN HECTARES

IMMATURE

IN HECTARES

AVERAGE OIL

PALM AGE

FFB

PRODUCED 2024

IN TONNES

FFB

PRODUCED 2023

IN TONNES

YIELD 2024

FFB/HA

IN TONNES

Tolan Tiga group 10 915 3 193 11.8 282 262 282 821 25.9

Umbul Mas Wisesa group 9 242 658 14.6 180 246 186 328 19.5

Subtotal own plantations 20 157 3 851 13.0 462 508 469 149 22.9

Smallholders 4 295 0 N/A 8 888 11 116 N/A

TOTAL 24 452 3 851  471 397 480 265 

The North Sumatra business unit comprises

the Tolan Tiga and Umbul Mas Wisesa groups.

These groups work as one established operation

and include seven estates and three mills. The Tolan

Tiga group covers 10 915 hectares of mature estates

and 3 193 hectares of immature estates, and the

Umbul Mas Wisesa group covers 9 242 hectares

of mature estates and 658 hectares of immature

estates.

Throughout 2024, operations in the North Sumatra

region continued to experience the eects of the

droughts in 2021, 2022, and 2023, which impacted

both mineral and organic soil estates. This ongoing

challenge had a negative impact on fresh fruit bunch

(FFB) yields. Total FFB production on mineral soil

estates amounted to 282 262 tonnes, representing

a slight decline of 0.2% compared to the previous

year. Meanwhile, FFB production on organic soil

estates was 180 246 tonnes, reﬂecting a decline of

3.3% year-on-year.

Citra Sawit Mandiri estate achieved an 8% increase

in production compared to 2023. This was driven

by improvements in the organisation and eciency

of harvesting, aimed at improving crop quality and

ripeness, in preparation for supplying Umbul Mas

Wisesa mill from August 2024. In contrast, pro-

duction at the Umbul Mas Wisesa estates declined,

mainly due to the start of the replanting cycle for

the organic soil estates, with a total of 658 hectares

replanted at the southern estates of Umbul Mas

Wisesa.

With the successful achievement of RSPO certifi-

cation at the Citra Sawit Mandiri estate in August

2024, certified FFB are now being supplied to the

Umbul Mas Wisesa palm oil mill for processing,

despite some logistical challenges due to the con-

dition of external access roads.

The organic soil estates in North Sumatra in 2024

made significant eorts to maintain operations

despite encountering some weather-related chal-

lenges. Heavy rainfall and high tides in January

temporarily aected nearly 70% of the area, with

additional localised flooding impacting access

roads in October and December. Nevertheless, the

estates focused on innovative techniques including

drone-applied and biological controls, to address

periodic outbreaks of leaf-eating pests eectively.

The North Sumatra region saw continued progress

and development in 2024. Significant milestones

were achieved at the Bandar Pinang estate, part of

the Tolan Tiga group, where the conversion from

rubber to oil palm was successfully completed. A

total of 527 hectares of oil palm were planted in

2024, bringing the total converted area to 1 016 hec-

tares. Additionally, 50 hectares have been allocated

Estates

SIPEF Integrated Annual Report 2024 Company Report

for Verdant Bioscience Pte Ltd further supporting

innovations and progress on the F1 hybrid pro-

gramme (see page 58 for more information).

In January 2024, harvesting began at the first

significant area planted with the new commercial

Verdant Select material, which are selected crosses

reproduced in commercial quantity as semi-clonal

seeds. This area delivered the highest commercial

first year yields achieved to date, with 25.5 tonnes of

FFB per hectare over an area of 83.6 hectares. This

marks an important milestone and underscores the

high potential of Verdant Select material, demon-

strating SIPEF's commitment to innovation and

yield optimisation.

The replanting program within the Tolan Tiga

group made steady progress, with 753 hectares

replanted and another 440 hectares prepared

for planting in 2025. The organic soil estates also

contributed to this progress, with 658 hectares

successfully replanted in 2024. These eorts col-

lectively increased the total immature area from

2 496 hectares in 2023 to 3 850 hectares in 2024,

contributing to a reduction in the average oil palm

age for the North Sumatra region to 13.1 years.

The North Sumatra mineral soil estates Bukit

Maradja and Kerasaan implemented proactive pest

management measures in 2024 to address periodic

outbreaks of leaf-eating pests. Targeted treatments,

including drone spraying and biological controls,

were eectively applied across the impacted area

throughout the year, ensuring the health and pro-

ductivity of the estates.

The regional business unit of Bengkulu is made

up of Agro Muko and the Mukomuko Agro Sejahtera

groups, consisting of thirteen plantations and two

mills, which are located over two sub-regions, each

delivering to its own mill. The area consists of

17401 hectares of mature estates and 5 542 hectares

of immature estates.

In 2024, the harvested FFB decreased by 5.2% com-

pared with the previous year, from 362 376 tonnes

in 2023 to 343 695 tonnes in 2024. Multiple drought

periods in the years 2022 and 2023 continued to

have an impact on crop production for 2024. The

weather conditions in 2024 were more favourable,

with monthly rainfall distribution closely aligning

with historical 10-year averages across all estates,

contributing to improved growing conditions.

The Batu Kuda estate successfully replanted 465

hectares in 2024, bringing the total replanted hec-

tarage at 939. The remaining 431 hectares will be

replanted in 2025 with the total hectares targeted

at 1 370. Harvesting activities continued across

the remaining 431 hectares of old plantings, which

produced 1 881 tonnes of FFB. With the success-

ful completion of the new main access bridge in

December 2024, the improved accessibility into the

INDONESIA, BENGKULU

MATURE

IN HECTARES

IMMATURE

IN HECTARES

AVERAGE OIL

PALM AGE

FFB

PRODUCED 2024

IN TONNES

FFB

PRODUCED 2023

IN TONNES

YIELD 2024

FFB/HA

IN TONNES

Agro Muko 15 022 4 670 11.8 310 701 323 895 20.7

Mukomuko Agro Sejahtera 2 379 939 8.6 32 994 38 481 13.9

Subtotal own plantations 17 401 5 609 10.5 343 695 362 376 19.7

Smallholders 1 038 13 N/A 14 693 17 356 14.2

TOTAL 18 439 5 622  358 388 379 732 19.4

66 The connection to the world of sustainable tropical agriculture

INDONESIA, SOUTH SUMATRA

MATURE

IN HECTARES

IMMATURE

IN HECTARES

AVERAGE OIL

PALM AGE

FFB

PRODUCED 2024

IN TONNES

FFB

PRODUCED 2023

IN TONNES

YIELD 2024

FFB/HA

IN TONNES

Agro Kati Lama 4 270 962 7.2 65 962 64 387 15.4

Agro Rawas Ulu 2 534 218 7.1 35 232 35 397 13.9

Agro Muara Rupit 5 395 4 079 4.4 69 793 57 566 12.9

Dendymarker Indah Lestari 6 677 799 4.5 92 794 60 815 13.9

Subtotal own plantations 18 876 6 058 4.8 263 781 218 165 14.0

Smallholders 2 991 2 127 - 40 260 32 377 13.5

TOTAL 21 867 8 185  304 041 250 542 13.9

estate will promote further operational eciencies.

Most of the required infrastructure to support the

rehabilitation of the estate will be completed by

2025 (bridges and roads).

The conversion of Sei Jerinjing rubber estate was

completed in 2024 with 1 298 hectares being suc-

cessfully planted with oil palm. A total of 2 256

hectares of oil palm was successfully replanted

across the Bengkulu estates in 2024 (inclusive of

Sei Jerinjing). The average age of the palms across

the estates now stands at 10.8 years.

The developments in South Sumatra are

organised into four groups of estates: Agro Kati

Lama, Agro Rawas Ulu, Agro Muara Rupit, and

Dendymarker Indah Lestari. In 2024 the cultivated

areas in South Sumatra increased by 1 742 hectares

to 19 827 hectares, all in compliance with RSPO cri-

teria. In South Sumatra the Group now has 30052

hectares of newly planted, maturing oil palms, of

which 5 118 are plasma hectares. During the year

the tonnage of harvested FFB increased by 20.9%

compared to the previous year, from 218 165 tonnes

in 2023 to with 263 781 tonnes in 2024.

Throughout 2024, the South Sumatra estates expe-

rienced variable weather conditions with very wet

weather in the first quarter causing widespread

ﬂooding in late January as well as prolonged dry

weather in the third quarter. Very low rainfall

during July and August resulted in the suspension

of planting and manuring activities until rainfall

returned from September onwards enabling all

field activities to recommence and shortfalls to be

recovered. The overall rainfall for 2024 was on par

with the 10-year average for most of the estates.

Dendymarker Indah Lestari has now achieved

RSPO certification for 7 457 hectares, including

2 749 plasma hectares. The average age of palms

across the estates now stands at 4.8 years.

The potential for further development, of over 3 000

hectares, remains under management review, con-

tingent on the performance and viability of existing

projects as well as the exploration of opportunities

in adjacent areas.

SIPEF Integrated Annual Report 2024 Company Report

In Indonesia, there are currently seven opera-

tional mills with a combined hourly processing

capacity of 320 tonnes of FFB per hour, an increase

from 275 tonnes per hour in 2023. The newly

commissioned mill in South Sumatra, Agro Muara

Rupit, has been operational since June 2024. The

total crop processed across all Indonesian mills in

2024 amounted to 1 107 566 tonnes, reﬂecting an

increase of 39 615 tonnes or 3.6% compared to 2023.

Consequently, total palm product production also

rose by 5 104 tonnes or 1.7% to 298 488 tonnes, up

from 293 384 tonnes in 2023.

The Group’s average oil extraction rate (OER) stood

at 22.40%, a decrease from the previous year’s

22.89%.

Mills*

INDONESIA, NORTH SUMATRA BUKIT MARADJA PERLABIAN UMBUL MAS WISESA

2024 2023 2024 2023 2024 2023

Capacity (tonnes FFB/h) 30 30 55 55 40 40

Actual throughput 29.8 29.0 43.8 50.7 38.9 40.2

FFB processed (tonnes) 113 030 114 090 177 331 176 404 155 656 152 673

Crude palm oil produced (tonnes) 27 185 26 952 38 180 38 865 33 999 34 985

Oil extraction rate (%) 24.05 23.62 21.53 22.03 21.84 22.91

Kernel extraction rate (%) 5.17 5.20 5.80 5.87 4.37 4.20

Free fatty acids (%) 2.61 2.59 2.86 2.76 3.41 3.44

INDONESIA, BENGKULU MUKOMUKO BUNGA TANJUNG

2024 2023 2024 2023

Capacity (tonnes FFB/h) 60 60 30 30

Actual throughput 59.4 59.7 32.8 32.1

FFB processed (tonnes) 262 829 266 301 94 679 107 941

Crude palm oil produced (tonnes) 59 485 62 574 20 189 23 610

Oil extraction rate (%) 22.63 23.50 21.32 21.87

Kernel extraction rate (%) 4.28 4.12 5.21 5.17

Free fatty acids (%) 2.71 2.95 2.78 3.3

INDONESIA, SOUTH SUMATRA DENDYMARKER INDAH

LESTARI

AGRO MUARA RUPIT

2024 2023 2024 2023

Capacity (tonnes FFB/h) 60 60 45 N/A

Actual throughput 58.9 50.9 45.7 N/A

FFB processed (tonnes) 226 880 250 542 77 161 N/A

Crude palm oil produced (tonnes) 50 844 57 465 18 162 N/A

Oil extraction rate (%) 22.41 22.94 23.54 N/A

Kernel extraction rate (%) 3.85 3.86 3.30 N/A

Free fatty acids (%) 3.24 3.20 3.51 N/A

* See GeoSIPEF for further details

68 The connection to the world of sustainable tropical agriculture

In North Sumatra, Bukit Maradja mill achieved

an OER of 24.05%, exceeding the target, while

Perlabian mill, and Umbul Mas Wisesa mill record-

ed lower OERs compared to the previous year. The

OER at Umbul Mas Wisesa declined by 4.67%, pri-

marily due to exceptionally wet weather and ﬂood-

ing in January and October 2024. Despite these

challenges, the kernel extraction rate improved at

Bukit Maradja and Umbul Mas Wisesa, whereas

Perlabian experienced a slight decrease of 1.19%.

Free fatty acid (FFA) levels in crude palm oil (CPO)

increased slightly at Bukit Maradja and Perlabian,

driven by higher rainfall, though all mills remained

within the ceiling limit of 3.50%.

In Agro Muko, spanning two mills, the average

OER dropped from 23.03% in 2023 to 22.29% in

2024, coinciding with a 4.47% reduction in pro-

cessed FFB. Boiler refurbishment at both mills

is ongoing and expected to enhance performance

in 2025. However, the implementation of a kernel

recovery programme at Agro Muko in 2024 result-

ed in notable improvements, with FFA levels at

Mukomuko mill and Bunga Tanjung mill remaining

well controlled.

In South Sumatra, the Dendymarker Indah Lestari

mill recorded an average OER of 22.41%, marking

a 2.31% decrease compared to 2023. This reduc-

tion is attributed to extended wet seasons and

ﬂooding, coupled with a high proportion of small

bunches from young plantings processed at the

Dendymarker Indah Lestari mill. Crops from newly

replanted areas (2020–2022 plantings) accounted

for 33.4% of the crop processed, with internal lab

analysis indicating potential OERs ranging from

15.91% to 22.23%. Encouragingly, the OER at Agro

Muara Rupit mill remained stable at 23.54%, with

internal lab analysis showing potential OERs

between 17.93% and 24.69% for crops from the

2017–2018 plantings at Agro Muara Rupit and Agro

Rawas Ulu estates.

Despite ﬂuctuations in OER and challenges posed

by adverse weather conditions, CPO production in

South Sumatra increased significantly. Total CPO

production from the Dendymarker Indah Lestari

and Agro Muara Rupit mills reached 69 006 tonnes

in 2024, representing a 20.1% increase from the

57 465 tonnes produced in 2023, driven by more

planted areas reaching maturity. However, FFA

levels at both mills increased slightly due to higher

regional rainfall.

In alignment with SIPEF’s strategic focus on

improving CPO quality, a comprehensive quality

enhancement programme was initiated in 2023.

Several initiatives aimed at reducing contam-

inants such as chloride, Mineral Oil Saturated

Hydrocarbons (MOSH), and Mineral Oil Aromatic

Hydrocarbons (MOAH) in CPO were implement-

ed. Notably, a washing plant was installed at

Mukomuko mill in 2023, consistently achieving

chloride levels below 2.5 ppm.

By the end of 2024, SIPEF committed to installing

additional washing plants at the Bukit Maradja,

Perlabian and Bunga Tanjung mills, with comple-

tion expected by early 2026. In parallel, the Group

transitioned all mineral lubricants to food-grade

lubricants, resulting in significant improvements

in MOSH and MOAH values, further reinforc-

ing SIPEF’s commitment to quality and safety.

Additionally, an overarching quality programme

focusing on housekeeping standards and critical

point control was established to prevent foreign

element contamination in palm products.

As part of SIPEF’s emissions reduction strategy,

both Dendymarker Indah Lestari and Agro Muara

Rupit mills have initiated the installation of bio-

gas plants. The lagoon-type biogas plant at Agro

Muara Rupit and the tank-type biogas plant at

Dendymarker Indah Lestari are projected to be

operational by the end of 2025. Additionally, a Bio-

CNG plant project is set to commence at Perlabian

SIPEF Integrated Annual Report 2024 Company Report

mill and Umbul Mas Wisesa mill in collaboration

with the KIS Group, with expected completion by

end of 2025 and 2026 respectively. These plants

aim to capture methane emissions and convert

the gas into bottled Bio-CNG for sale to external

o-takers, contributing to SIPEF’s sustainability

and emissions goals.

Looking ahead, SIPEF remains committed to

enhancing operational eciency and sustaina-

bility across its mills. The ongoing investments in

infrastructure, quality improvement programmes,

and emissions reduction initiatives underscore the

Group’s dedication to responsible and sustainable

palm oil production. As more planted areas reach

maturity and additional enhancements come

online, SIPEF Indonesia is well positioned to

achieve further growth, ensuring long-term value

creation for its stakeholders.

70 The connection to the world of sustainable tropical agriculture

Operational activities in Papua New Guinea

Hargy Oil Palms Ltd (HOPL) in Papua New Guinea operates six oil palm plantations,

structured under three estate groups (Hargy, Navo and Pandi), along with 3 646 certified

smallholders, the six estates form their specific supply base for each mill.

Names and locations of SIPEF’s plantations

and mills in Papua New Guinea*

Estates

Mills

West New Britain

Hargy Oil Palms

* see GeoSIPEF for further details

SIPEF Integrated Annual Report 2024 Company Report

HOPL's operations in Papua New Guinea cov-

er 26190 hectares of mature estates and 2 285

hectares of immature estates. These operations

demonstrated resilience and steady progress in

2024, despite the challenges posed by the November

2023 eruption of the Mount Ulawan volcano.

In the first quarter of 2024, fresh fruit bunches

(FFB) that remained on aected palms were suc-

cessfully harvested before heavy pruning was car-

ried out. As a result, production levels were initially

maintained. However, the necessary pruning of

damaged palms led to a decline in FFB production

during the second quarter, which continued until

late in the year. By November and December, there

were signs of recovery in rehabilitated areas. This

suggests that production will continue to recover

in 2025, despite some remaining impact expect-

ed until at least mid-year. HOPL's own estates

recorded 284 785 tonnes of FFB production for

the year, 22.5% lower than 2023, aligning with

post-eruption damage assessments. Smallholder

FFB production reached 201 965 tonnes, a 13.2%

decline from the previous year. While smallholders

were less aected by the volcanic eruption, lower

fertiliser acceptance in recent years contributed

to the decline in yields. To address this, SIPEF will

continue its extension support for smallholders

by promoting fertiliser application practices and

focusing on yield optimisation.

Rainfall in 2024 was above the five-year average

at all sites. The wet season in the first quarter was

more intense than in recent years, slightly aecting

FFB recovery and oil quality. However, from April

onwards, monthly rainfall exceeded 150mm at most

sites, ensuring stable growing conditions without

major disruptions. This weather pattern is expected

to support favourable production conditions in the

coming years.

Replanting activities were successfully completed,

with 582 hectares replanted, accounting for 4.3%

of total planted areas, maintaining an optimal

10.2-year average palm age across the estates.

Smallholder replanting faced some challenges, with

323 of the planned 500 hectares replanted, mainly

due to grower acceptance issues. Addressing these

obstacles remains a priority for 2025 and beyond.

A key milestone was the completion and approval

of the High Conservation Value (HCV) and High

Carbon Stock Approach (HCSA) assessment, which

identified areas for potential smallholder expan-

sion. In 2025, the RSPO New Planting Procedure

will be finalised, enabling new planting in these

designated areas and reinforcing SIPEF’s commit-

ment to sustainable development.

Estates

PAPUA NEW GUINEA, WEST NEW BRITAIN

MATURE

IN HECTARES

IMMATURE

IN HECTARES

AVERAGE OIL

PALM AGE

FFB

PRODUCED 2024

IN TONNES

FFB

PRODUCED 2023

IN TONNES

YIELD 2024

FFB/HA

IN TONNES

Hargy estate 4 161 253 10.8 125 147 134 558 30.1

Navo estate 5 700 852 9.4 86 221 157 216 15.1

Pandi estate 2 584 0 11.5 73 416 75 565 28.4

Subtotal own plantations 12 445 1 105 10.2 284 785 367 339 22.9

Smallholders 13 745 1 180 16.9 201 965 232 414 14.7

TOTAL 26 190 2 285  486 750 599 753 18.6

72 The connection to the world of sustainable tropical agriculture

Mills*

PAPUA NEW GUINEA, WEST NEW BRITAIN HARGY NAVO BAREMA TOTAL

2024 2023 2024 2023 2024 2023 2024 2023

Capacity (tonnes FFB/h) 45 45 60 50 45 45 150 140

Actual throughput 44.9 44.6 54.9 49.8 43.8 45.0 143.6 139.4

FFB processed (tonnes) 71 881 78 607 139 056 181 666 73 848 107 067 284 785 367 340

FFB processed smallholders (tonnes) 80 508 91 214 33 138 44 037 88 320 97 162 201 965 232 413

Crude palm oil produced (tonnes) 34 041 40 561 41 346 55 598 38 975 50 604 114 362 146 763

Oil extraction rate (%) 22.32 23.88 24.00 24.64 24.03 24.74 23.49 24.46

Free fatty acids (%) 3.20 3.40 3.53 4.16 3.53 4.18 3.44 3.96

Crude palm kernel oil produced (tonnes) 7 147 8 337 8 777 12 493 8 219 10 400 24 143 31 230

Palm kernels produced (tonnes) 2 809 3 318 N/A N/A 6 669 9 094 9 478 12 412

Kernel extraction rate (%) 4.69 4.91 5.09 5.54 5.07 5.09 4.96 5.21

Kernel oil extraction rate (%) 1.84 1.95 N/A N/A 2.09 2.11 1.95 2.07

Milling operations in Papua New Guinea contin-

ued to advance in 2024, with steady improvements

observed throughout the year. Early challenges

with the oil extraction rate (OER) due to a particu-

larly heavy wet season in West New Britain were

progressively overcome from April onwards. Both

Navo and Barema mills saw gradual improvements,

with December OER levels aligning with those

achieved in 2022. At Hargy mill, steam production

issues temporarily impacted sterilisation process

es; however, these have since been resolved, with

further eciency gains anticipated in 2025.

The Navo mill expansion project reached signifi-

cant milestones in 2024 with the commissioning

of a new boiler and turbine, increasing throughput

capacity to 60 tonnes per hour. The addition of a

high-capacity turbine has also improved energy e-

ciency, now supplying power to all four residential

compounds at the Navo estate during processing

hours, reducing reliance on diesel generators.

The final phase of the expansion, which includes

upsizing the FFB loading ramp from 80 tonnes to

500 tonnes, is well underway and set for completion

by the second quarter of 2025, further enhancing

operational eciency and oil quality.

Throughout 2024, operations in Papua New

Guinea upheld a strong commitment to product

quality. Eorts to manage mineral oil contaminant

(MOSH/MOAH) levels remained highly eective,

ensuring compliance with acceptable thresholds.

Additionally, baseline chloride testing was conduct-

ed for the first time, laying the foundation for fur-

ther initiatives to reduce these already low levels.

These eorts reinforce HOPL’s strong reputation

for providing high-quality oil.

* see GeoSIPEF for further details

SIPEF Integrated Annual Report 2024 Company Report

74 The connection to the world of sustainable tropical agriculture

2024 was a strong year for SIPEF's banana produc-

tion. Despite the agronomical challenges on the

historical sites of Azaguié and Motobé, there was

a 24.6% increase in banana production as well as

an increase in yield from 33.3 to 40.6 tonnes per

hectare. The newly developed sites of Lumen and

Akoudié continued to outperform, and production

at the Agboville site returned to a good performance

level. 45 942 tonnes were exported to the European

Union (EU) and the United Kingdom (UK), and

5093 tonnes were exported to the regional markets

of Senegal and Mauritania.

Quality was also high, with low rates of damage.

This reﬂects SIPEF's ongoing investment in inno-

vation, operational excellence, and production

eciency.

However, production did suffer from climate

impacts, with 2024 being a particularly hot year.

This meant more irrigation was required. The very

hot dry season had an impact on production across

the whole of Côte d’Ivoire and beyond. In 2024,

the global banana market encountered several

challenges that aected production, trade, and

pricing. The overall banana trade contracted by

approximately 1%, driven by adverse weather con-

ditions and the spread of plant pests and diseases.

Thanks to the continuation of the usual marketing

policy of fixed-price annual contracts with reputa-

ble European customers in 2024, the Group is not

subject to the volatility of international banana

markets. Thus, Plantations J. Eglin SA (Plantations

J. Eglin) could provide a stable contribution to gross

profit throughout the year.

Côte d’Ivoire remains the top banana exporting

country from Africa to Europe, ahead of Cameroon

and Ghana.

BANANAS: OPERATIONAL ACTIVITIES

SIPEF Integrated Annual Report 2024 Company Report

Operational activities in Côte d’Ivoire

SIPEF's subsidiary, Plantations J. Eglin, controls and manages the Group's operational activities

in Côte d’Ivoire. The plantations and packing stations are all located in the southern Lagunes

region of the country.

Région des Lagunes

Plantations J. Eglin - Azaguié 1 & 2

Plantations J. Eglin - Agboville

Plantations J. Eglin - Motobé

Plantations J. Eglin - Lumen 1 & 2

Plantations J. Eglin - Akoudié

Estates

Packing stations

Names and locations of SIPEF’s plantations

and packing stations in Côte d’Ivoire

76 The connection to the world of sustainable tropical agriculture

SIPEF’s banana estates are located across five

locations within the southern Lagunes region of

Côte d’Ivoire. Together, the plantations cover 1 229

hectares. All of the plantations are situated between

45 and 100km from the port of Abidjan. From here,

the bananas are exported in refrigerated containers

to Europe and the regional market (Senegal and

Mauritania). Land transport serves other regional

markets.

Founded in 1959, Plantations J. Eglin is one of the

three main operators in the Cavendish banana

export sector in Côte d’Ivoire.

The five estates are numbered by historical acquisi-

tion order. The company acquired in 1985 by SIPEF

only included the Azaguié site (1). In 1989, the

Agboville plantation (2) was purchased, followed

by the Motobé site (3) in 2009. In 2021, the Lumen

(4) and Akoudié (5) sites were acquired to complete

the current production areas. All of these sites were

used to grow crops (bananas, pineapples, ﬂowers,

cocoa or coee) for several decades before their

acquisition by SIPEF.

By the end of 2024, all the estates were fully plant-

ed, with the exception of the Akoudié site, which

was acquired in 2021. This site fell behind schedule

due to part of the area of the acquired site being

unavailable, meaning that an alternative area had

to be found. The remainder will be planted in early

2025.

Overall marketed production increased by 24.6%

compared to 2023. Yields were very strong at the

Lumen and Akoudié estates. Lumen saw an increase

of 53% on 2023, and for Akoudié the increase was

205%.

In terms of quality, 2024 will also be considered a

very good year compared to previous years. Damage

rates were very low, particularly in the second half

of the year. This resulted in a better recovery of

processed bunches, which in turn reduced sorting

discrepancies.

The climate continued to have an impact on pro-

duction in 2024. 2024 was a particularly hot year,

and the higher temperatures during the dry season

in March, April, and May had a severe impact on

the banana plants, which required more irrigation.

The estates were less aected by the harmattan in

comparison with previous years, with only a few

days with low night and morning temperatures.

2024 also saw 200-400mm less rainfall than

2023. Neither the heavy rainy season nor the short

rainy season was excessively wet. Only the Motobé

Estates

ESTATES

PLANTED

AREA 2024

IN HECTARES

PLANTED

AREA 2023

IN HECTARES

EXPORTED

PRODUCTION 2024

IN TONNES

EXPORTED

PRODUCTION 2023

IN TONNES

YIELD 2024

TONNES/HA

YIELD 2023

TONNES/HA

Azaguié 314 340 9 922 11 702 31.7 34.4

Agboville 231 246 8 938 8 003 38.6 32.5

Motobé 204 221 6 165 6 424 30.2 29.1

Lumen 292 291 19 389 12 676 66.4 43.6

Akoudié 216 130 6 624 2 171 30.7 16.7

TOTAL 1 257 1 229 51 038 40 976 40.6 33.3

SIPEF Integrated Annual Report 2024 Company Report

plantation suered ﬂooding when the Comoé River

burst its banks following torrential rain in the north

of the country and in Burkina Faso. As a result, a

25-hectare area was lost to ﬂooding over a period

of over three weeks.

Across all sites, the expected number of ﬂowers was

on track, but there was a lack of unit weight in the

bunches. The excessive temperatures disrupted

the growing cycle. At some sites this led to falls in

production.

In 2024 SIPEF hired a new employee dedicated to

managing trade within Senegal and Mauritania.

While this is a smaller area of the business than

European and British exports, it is very important

as it provides a market for bananas that may not

meet the demanding specifications of Europe and

the UK. The reduced transport time also means

that riper fruit can be transported.

Yields at historic sites, particularly Motobé and

Azaguié, continued to be less favourable than the

expected average. The Agboville site made better

progress, and the second half of the year showed

clear improvement.

Extensive analysis work is under way on Motobé

and Azaguié, and a strategy for technical and agro-

nomic improvements is being implemented. Areas

with particularly low yields, as well as the 25-hec-

tare area that was ﬂooded, will be eliminated and

allowed a longer fallow period. Soils will be fed with

more organic matter, the drainage network will be

revised, and there will be a focus on agro-ecological

practices to prevent weeds and pests. It is expected

that these activities will lead to stronger results for

these areas from 2027.

Aside from the climate, the risk to the production

of banana plants continues to be Black sigatoka.

SIPEF ensures that this disease is kept under

control through integrated pest management

and practices and when required the use of drone

spraying, which limits any disruption and enables

more precise targeting of the areas being treated.

Another risk is Panama disease, also known as

Tropical Race 4 (TR4), the introduction of which

would decimate the banana plantation. However,

the entire industry is taking preventative measures

against it. More generally, growers are collaborating

with national research institutions to identify new

products to combat banana pests such as insects,

weeds, or fungi.

78 The connection to the world of sustainable tropical agriculture

Packing stations

PACKING STATIONS EU REGIONAL LOCAL TOTAL

CAPACITY

TONNES/DAY

2024 2023 2024 2023 2024 2023 2024 2023

Azaguié 60 8 845 9 904 1 077 1 798 1 276 1 100 11 198 12 802

Agboville 40 8 032 6 926 906 1 078 1 010 815 9 948 8 819

Motobé 40 5 403 5 726 762 699 992 1 080 7 157 7 505

Lumen 60 17 601 10 783 1 788 1 893 1 560 719 20 949 13 395

Akoudié 40 6 062 1 994 562 178 751 409 7 375 2 581

TOTAL 45 943 35 332 5 095 5 644 5 589 4 122 56 627 45 098

There are seven packing stations in Côte d’Ivoire,

spread across the same locations as the five planta-

tions. The total crop processed across the packing

stations in 2024 was 56 627 tonnes, reﬂecting an

increase of 11 529 tonnes or 25.6% compared to

2023.

The packing stations prepare bananas according to

the specific requirements of European and British

customers, using a variety of packaging methods.

This includes dierent materials such as biode-

gradable tapes, recyclable bags, or bulk packaging

to minimize plastic use. Additionally, pricing labels

and other necessary customizations are applied

as needed, ensuring both compliance and sus-

tainability in the packaging process. The Group's

seven packing stations are fully equipped to handle

up to 60 000 tonnes per year, with all necessary

investments completed to enhance eciency and

streamline operations. With production volumes

continuing to grow beyond 2024, the packing sta-

tions are well prepared to meet future demand. We

still have to invest to upgrade the two oldest ones

and need to extend the Akoudié packing station.

SIPEF Integrated Annual Report 2024 Company Report

Palm oil

SIPEF's commitment to sustainability is reﬂected

in the way it markets its oil palm products, which

are sold entirely on the local market in Indonesia

and across Europe. The primary customers are

refineries, which process the oil for various end

uses, including the food industry, the oleochemical

sector, and the production of green energy such as

biodiesel.

SIPEF partners with customers that prioritise a

sustainable supply chain and responsible sourcing

policies. These customers value high-quality, cer-

tified, and fully traceable

products, and are prepared

to reﬂect this in their price

setting.

2024 marked a pivotal

moment in the vegetable

oil industry. For decades,

palm oil was widely

regarded as the world’s

most aordable vegetable

oil. However, expansion

was curtailed by the

introduction of consumer

facing companies no-de-

forestation policy in 2015

as well as the Indonesian government regulations

on expansion, and the industry is now facing a new

reality. Palm oil was priced higher than soybean,

rapeseed, and sunﬂower oils for more than half

of 2024.

Palm oil production continued to grow modestly in

Malaysia, driven by an increase in the availability

of labour following the post-covid-19 period. In

contrast, production in Indonesia saw a sharp

decline. The country has not added significant new

planting areas, and years of inadequate replanting

have resulted in an aging tree profile, leading to

reduced yields. This trend is expected to persist

in the coming years.

Vegetable oil prices surged despite strong soybean

harvests in Brazil and Argentina early in the year,

as well as a record crop in

the United States. Lower

global palm oil production,

coupled with diminished

rapeseed and sunflower

crops, contributed to

rising prices. In 2024, the

reduced availability of

palm oil became the key

price driver.

Global demand for vege-

table oils grew at its usual

pace, but biodiesel demand

remained a strong growth

factor. With Indonesia, the

United States, and Brazil leading the way, many

major producing countries increased their bio-

diesel blending mandates. By the fourth quarter,

however, some hesitation emerged as the price gap

between vegetable oils and gasoil reached record

levels. Nevertheless, Indonesia’s newly elected

government remained committed to increasing

its biodiesel blending target for 2025, from B35

(35% biodiesel) to B40.

MARKETS SERVED: PALM OIL

SIPEF’s markets

80 The connection to the world of sustainable tropical agriculture

The European Union’s new Deforestation

Regulation (EUDR), originally set to take eect

on 1 January 2025, began to make waves in the

palm oil industry. Although the regulation’s

details remained unclear, many industry players

were already preparing for its implementation. At

the same time, consumer-facing companies have

shown a growing interest in EUDR-compliant oil,

recognising its potential to complement existing

RSPO certification as part of the evolving landscape

of industry standards. The EUDR is emerging as an

additional requirement rather than a replacement

for RSPO certification but is contributing to tem-

porary adjustments in the premium for certified

oils in 2024 as the market adapts to these new

benchmarks.

The delayed introduction of the EUDR has pro-

longed market indecision, but most European

consumer-facing companies are preparing for the

regulation to take eect by 2026, aligning with

both EUDR compliance and RSPO segregated

certification.

The average price for crude palm oil (CPO) quoted

at the Malaysian Derivatives Exchange (MDEX)* in

2024 was 4 128 Malaysian Ringit (MYR - USD 903)

against an average of 3 796 MYR (USD 833) in 2023,

an increase of 8.4%. However, the last semester was

significantly higher.

Palm kernel oil

The lauric oil market, encompassing both palm

kernel oil (PKO) and coconut oil, regained its

strength in 2024. After a period of price parity with

palm oil, both lauric oils commanded a significant

premium once again. The average price of PKO CIF

Rotterdam in 2024 was USD 1 310, compared to

USD 950 in 2023, representing a 37.5% increase.

The fourth quarter saw an even sharper rally, with

prices reaching a substantial premium over palm

oil.

A reduction in palm fruit production led to the

rapid depletion of stocks, with tightness in supply

aecting PKO faster than palm oil itself. On the

demand side, particularly in the oleochemical

sector, there was some growth especially after

higher energy costs were factored in. Additionally,

the lower coconut supply in 2024 compounded the

tightness in lauric oil, resulting in a robust demand

environment that contributed to the price surge.

* The Palm oil quote at the Malaysian Derivatives Exchange (MDEX) is the global leader in price discovery for palm oil. This will be the leading

pricing mechanism to determine prices locally as well as overseas. To convert a MDEX quote to a CIF European port one will add the prevailing

export tax as well as the corresponding sea freight cost. The previously used CIF Rotterdam market has lost its relevance and liquidity dried up

over the recent years, as palm oil as a pure commodity has changed into a supply chain commodity where certification, traceability, and quality

parameters can be customer specific.

SIPEF Integrated Annual Report 2024 Company Report

Global banana markets

A. Global production and marketing

2024 was marked by two major phenomena which

had an impact on the banana trade.

Climate anomalies had a major impact on the

banana trade in 2024. Yields were lower in sev-

eral countries across Central America and Africa

due to extreme heat, presumably linked to the El

Niño phenomenon which ended in April 2024.

Box-to-bunch ratios were abnormally low, which

created occasional production shortfalls. This was

notably the case in Central America (Guatemala,

Honduras, Mexico), in certain regions of Ecuador,

and in Côte d'Ivoire. As a result of the shortfall in

supply from Central American suppliers, there

was more active demand in the market in the

United States of America (US), leading to a 34%

increase in Ecuadorian banana shipments to the

US. As a result, Ecuadorian spot prices remained

strong throughout the year and a lower volume

was available for Europe. This phenomenon was

exacerbated by the Euro/US Dollar exchange rate,

which remained low, making the American market

more attractive than the European market.

Logistical challenges also impacted the banana

trade in 2024. Global maritime trade was slowed

by drought-induced low water levels in the Panama

Canal early in the year, the closure of the Suez

Canal due to geopolitical tensions in the Middle

East, industrial actions in US ports, and limited

maritime space availability. These issues reduced

container movement ﬂexibility and complicated

access to shipping routes.

B. European banana consumption

The banana consumption in the European Union

(EU) increased. In October 2024, European sup-

ply was 8.5% higher than in October 2023. Both

imports and European production contributed to

this upward trend. European producers supplied

4% more bananas to the market than in the pre-

vious 12 months. Imports from non-EU countries

also increased by 4.9%. Dollar zone origins, such

as Latin America, experienced 6.4% growth, while

the origins Africa, Caribbean and Pacific (ACP)

remained stable. Among Dollar origins, Colombia,

Panama, and Ecuador saw the most significant vol-

ume increases. In contrast, within the ACP zone,

Cameroon, Ghana, and Belize experienced growth

rates between 18% and 40%, whereas Côte d'Ivoire

and the Dominican Republic faced declines of 11%

to 14%.

C. Consumption in other countries:

United States of America

In the first 10 months of 2024, U.S. banana con-

sumption rose to 3 518 000 tonnes, a 1% increase

from the previous year. October was among the

6 months in 2024 that saw higher consumption

levels compared to 2023, reaching figures unseen

since 2018. Over the twelve months ending in

October 2024, consumption grew by 1.6%, total-

ling 4149000 tonnes. Supply dynamics shifted,

with Ecuador strengthening its position as the

second-largest supplier to the US market, achiev-

ing nearly a 30% increase. Guatemala, the leading

supplier, experienced a 3.8% decline. The organic

banana segment also expanded, capturing a 13.3%

market share.

MARKETS SERVED: BANANAS

(1) Source: CIRAD

(2) Source: CIRAD

82 The connection to the world of sustainable tropical agriculture

SIPEF’s market strategy for bananas

SIPEF’s strategic focus for bananas is in line with

the Group’s overarching strategy: the production

of high-quality, traceable, and certified products.

This approach requires a focus on controlled and

sustainable growth, maintaining a controlled debt

structure, and building strong partnerships across

supply chains. Banana operations are managed by

SIPEF’s subsidiary, Plantations J. Eglin in Côte

d'Ivoire.

SIPEF collaborates with a panel of ripener cus-

tomers that share a com-

mitment to sustainability

and high-quality. These

ripeners maintain a close

connection to the market

and work collaboratively

with their suppliers to

align with evolving cus-

tomer needs. This coop-

erative model strengthens

the supply chain while

ensuring consistent prod-

uct quality and market

responsiveness.

By working together in

this way, pricing struc-

tures can be established

that support longer-term

contracts, oering stability for all parties involved.

At the same time, SIPEF and Plantations J. Eglin

retain the ability to set prices that reﬂect both mar-

ket conditions and operational factors, including

control over logistics and the destination port. This

approach not only safeguards reliable FOB income

but also maximizes value through enhanced supply

chain eciency and quality assurance, supported

by secure maritime logistics, palletised deliveries,

and quality checks upon unloading at European

ports.

The strategic focus remains on sustainable pro-

duction, in alignment with evolving consumer

demands. Key initiatives emphasise reducing waste,

optimising packaging, and meeting the require-

ments of sustainability conscious consumers.

Examples include the introduction of products such

as bananas pre-packaged in bags or with tape, which

significantly reduces plastic usage. The transition

to reusable plastic crates for fruit packaging has

also replaced traditional 18.5 kg cardboard boxes,

further reducing environ-

mental impact.

A notable trend is the

growing demand for pre-

weighed, single-unit sales

in supermarkets. By oer-

ing bananas in convenient,

pre-packaged formats,

this approach aligns with

consumer preferences for

eciency.

In 2024, the volume of bananas imported and sold

in Europe and the UK increased by 30% compared

to the previous year. This growth resulted in a total

of 44 343 tonnes distributed across these markets.

A significant portion, 25 968 tonnes (62%), was

sold in the UK, while the remaining 18 375 tonnes

(38%) were primarily distributed across continental

Europe, with France being a key destination.



All SIPEF’s banana production is Fairtrade and

Rainforest Alliance certified.

SIPEF Integrated Annual Report 2024 Company Report

All SIPEF’s banana production is Fairtrade and

Rainforest Alliance certified. When bananas are

sold as Fairtrade certified, SIPEF receives a guar-

anteed selling price, and a premium is paid to a

workers’ association. When bananas are sold as

Rainforest Alliance certified, an additional amount

(a Sustainability Investment and Sustainability

Dierential) is paid on top of the market price.

However, only 3 362 tonnes (8% of production)

were sold as Fairtrade certified, while 19 529 tonnes

carried the Rainforest Alliance label. Inﬂation

in Europe has placed significant pressure on pur-

chasing power, which is likely to have negatively

impacted sales of products with sustainability

labels. Despite these challenges, the UK market

remains a stronghold for securing the commercial,

social, and environmental added value associated

with these certifications.

The comprehensive range of certifications, includ-

ing Fairtrade and Rainforest Alliance, continues

to align with market requirements and meet the

expectations of the current customer base, rein-

forcing a commitment to sustainability and ethical

practices.

Throughout 2024, SIPEF maintained exceptionally

high-quality standards, reﬂecting seamless coordi-

nation and communication between the production

quality team and their counterparts in Europe. This

collaborative eort ensured that the standards of

the fruit met the stringent demands of the market.

Export logistics were managed well, encompassing

sea transport from the port of Abidjan to European

destinations and overland transport from packing

stations to the port. There were minimal losses

attributable to the logistics chain, transit times,

or interruptions in the cold chain.

Import regulations for bananas from the ACP

region, including Côte d'Ivoire, remain stable,

ensuring continued free access under the ACP quo-

ta. In contrast, bananas from the Central and South

American countries such as Costa Rica, Ecuador

and Colombia are still subject to a customs duty of

EUR 75.00 per tonne when imported into Europe.

Following Brexit, the UK continues to adhere to

European import regulations. These regulatory

frameworks play a key role in maintaining com-

petitiveness and market accessibility, highlighting

their strategic importance.

Trade volumes within Africa, however, remained

steady in 2024 compared to the previous year, with-

out reﬂecting the upward trend seen in European

markets. The sub-region markets, particularly

Senegal and Mauritania, demonstrate strong

growth potential, driven by rising consumption

in major cities. These markets are increasingly

adopting the European retail model, with large and

medium-sized retailers expanding their presence.

SIPEF’s eorts have been concentrated on strength-

ening commercial and contractual relationships

with existing customers, while establishing a foot-

hold with new customers in Senegal, where demand

is on the rise. Market access is facilitated through

refrigerated logistics, including containerised sea

transport and refrigerated lorries, ensuring quality

and reliability throughout the supply chain.

The connection to the world of sustainable tropical agriculture

Since 2021, SIPEF has been in the process of phas-

ing out its operations in natural rubber and tea.

SIPEF’s rubber production stopped at the end of

the second quarter of 2024 and all rubber assets

have now been converted or sold. Two of the three

rubber plantations have been converted into oil

palm plantations and are expected to be mature

by 2027.

In May 2021, PT Tolan Tiga Indonesia signed a sale

and purchase agreement related to the conditional

sale of PT Melania, which owns the SIPEF’s third

rubber plantation (MAS Palembang) and its tea

plantation (Cibuni estate), to the Shamrock Group.

PT Tolan Tiga Indonesia is currently working

towards the renewal of the cultivation licenses,

Hak Guna Usaha (HGU) to definitively complete

the sale. In the interim period, Cibuni estate has

continued to be managed by PT Tolan Tiga and the

management of the rubber activities has shifted to

the Shamrock Group.

The phasing out process will continue in 2025. In

2024, less than 1% of SIPEF’s revenue came from

its residual production volumes of rubber and tea

in Indonesia. Due to the conditional sale to the

Shamrock Group, the results of the rubber and tea

activities of MAS Palembang and Cibuni have not

been incorporated in SIPEF’s consolidated accounts

since 2021. Post balance sheet, the purchaser sent a

termination letter regarding the sale and purchase

agreement. SIPEF group has contested the legal

validity of this termination letter.

By the end of the second quarter of 2024, SIPEF’s

subsidiary Plantations J. Eglin SA in Côte d’Ivoire

had stopped all remaining production of tropical

ﬂowers. This area of 29 hectares will be replanted

with bananas in the course of 2026.

PHASING OUT OF RUBBER, TEA AND HORTICULTURE

SIPEF Integrated Annual Report 2024 Company Report

Sustainability

Statement

86 The connection to the world of sustainable tropical agriculture

SIPEF Integrated Annual Report 2024 Sustainability Statement

General

information

ABOUT THIS STATEMENT

This Sustainability Statement has been produced in

accordance with the Corporate Sustainability Reporting

Directive (CSRD) and has followed the requirements

of the European Sustainability Reporting Standards

(ESRS). The report has been prepared on a consolidated

basis with the scope of consolidation aligned with the

financial statements of the SIPEF group. It also complies

with the EU Taxonomy disclosure requirements set out

in Article 8 of Regulation 2020/852 (the EU Taxonomy

Regulation).

(1) Exception: Workforce data for the Cibuni tea estate (under PT. Melania) is included in the reporting scope, as SIPEF continues to manage

employees at that location.

Scope and coverage of own operations

The statement includes SIPEF’s palm and banana

operations, as well as key actors and activities in

its palm oil and banana value chains, focusing

exclusively on the sustainability matters and

impacts, risks, and opportunities (IROs) identified

as material through the Group’s double materiality

assessment. All of SIPEF’s subsidiaries are includ-

ed in the scope of consolidated reporting, and are

exempt from producing individual sustainability

reporting, pursuant to Article 19a(9) of Directive

2013/34/EU. The consolidated report does not

extend to PT. Melania (rubber and tea), as these

are classified as assets held for sale in accordance

with IFRS, as outlined in the financial statements.

In general, activities related to tea and rubber are

excluded, as these operations are being phased out

and represent less than 1% of the Group’s revenue.

For further details, see the Company Report.

The connection to the world of sustainable tropical agriculture

Scope and coverage of upstream and downstream value chain

In alignment with the parameters of the double

materiality assessment, the statement focuses

solely on value chain activities directly linked to

supplying SIPEF (upstream) or producing, trans-

porting, and selling its products (downstream).

An overview of SIPEF’s value chains can be found in

the Company report. For an overview of the mate-

rial sustainability matters identified for SIPEF’s

value chains, see page 93.

Definitions of medium- and long-term time horizons

The definitions of medium- and long-term time

horizons applied for reporting purposes in this

statement are consistent with the principles out-

lined in ESRS 1, Section 6.4. An exception is for

the assessments of IROs linked to climate change,

which have utilised the following definitions:

 Short-term horizon: 1–3 years

 Medium-term horizon: 4–10 years

 Long-term horizon: 11–25 years

The alternative definitions for time horizons

applied in the context of climate change have been

adopted to align with the unique nature of SIPEF's

operations, particularly the production of palm

oil. Given the 25-year lifecycle of a palm, these

definitions provide a more accurate representation

of the long-term impacts, risks, and opportunities

related to climate change on the group’s operations

and strategies.

Other disclosures on basis for preparation

The format of SIPEF’s management report is an

integrated annual report, and the Company has

therefore utilised incorporation by reference to

address many of the disclosures required by the

ESRS.

A list of the ESRS disclosure requirements, includ-

ing those that have been incorporated by reference,

can be found in Annex 5.

Further details on the basis for preparation of the

report, including methodologies and assumptions

used for the data presented in this statement can

be found in Annex 4.

SIPEF Integrated Annual Report 2024 Sustainability Statement

SUSTAINABILITY STRATEGY

SIPEF’s sustainability strategy is driven by the

Company’s commitment to managing its planta-

tions, operations, and supply chain responsibly

while contributing to society and local economies.

This includes strict requirements for new develop-

ments and suppliers, the implementation of best

management practices, respect for human rights,

and eorts to generate employment and develop-

ment opportunities in the rural and remote areas

where SIPEF operates.

SIPEF integrates sustainability into its business

by balancing commercial growth with responsible

practices. The Company's sustainability strategy

is structured around four key focus areas, each

supported by specific goals, approaches, and targets

that align with SIPEF’s material sustainability

matters. These focus areas are closely linked to

the Company's business priorities, forming the

foundation of SIPEF’s Balanced Growth Strategy.

• Production efficiency

• Operational excellence

• High quality, sustainable,

traceable, certified products

• Innovation and early

adoption

BUSINESS FOCUS AREAS SUSTAINABILITY FOCUS

AREAS

• Environmental stewardship

• Respecting employees and

communities

• Good business conduct

• Responsible supply chain

management

Under SIPEF’s Balanced Growth Strategy, four focus areas frame the Group’s sustainability approach,

which drives its environmental, social and governance activities.

90 The connection to the world of sustainable tropical agriculture

The following section presents SIPEF’s four sus-

tainability focus areas and the related sustainabil-

ity matters, identified as material in 2024 for both

SIPEF’s own operations and value chain. It also

highlights the linked sustainability and business

goals.

For SIPEF’s own operations, all goals apply uni-

versally across product groups and geographical

areas. Where relevant, stakeholder relationships

are referenced in the goals. For SIPEF’s value chain,

key product groups and customer segments are

specified, providing an indication of region, with

palm oil operations in Indonesia and Papua New

Guinea and banana operations in Côte d'Ivoire.

Further details are related alongside the ESG topic

disclosures.

An overview of SIPEF’s operational locations and

markets served, as well as the full set of sustainabil-

ity and business goals can be found in the Company

Report.

Material sustainability matters

Own operations

FOCUS AREA MATERIAL SUSTAINABILITY MATTERS GOALS

Environmental

Stewardship

(Environmental

information)

E1: CLIMATE CHANGE PG. 119

Sustainability goals:

• Greenhouse gas (GHG) emissions reduction

and long-term climate resilience

• Minimise impacts on natural resources and

the environment

• Sustainable land use and biodiversity

conservation, including no deforestation and

no new developments on peat (NDP)

Connected business goals:

• Full compliance with leading sustainability

standards and certifications

• Optimising land use in production areas and

improving production processes

• Engaging in practices and solutions focused on

improving soil health and boosting yields

• Optimising inputs, processes and outputs by

re-using by-products, minimising waste, and

applying smart agriculture and mechanisation

• Investing in research and development (R&D)

to enable progress towards sustainable and

optimal land use, ecient production, higher

quality products, improved soil health, and

resilient crops

• Climate change mitigation

• Climate change adaptation

• Energy

E2: POLLUTION PG. 131

• Pollution of air

• Pollution of water

E3: WATER PG. 136

• Water consumption

• Water withdrawals

• Water discharges

E4: BIODIVERSITY AND ECOSYSTEMS PG. 141

• Land-use change

• Land degradation

• Species population size

• Species global extinction risk

SIPEF Integrated Annual Report 2024 Sustainability Statement

FOCUS AREA MATERIAL SUSTAINABILITY MATTERS GOALS

Respecting employees

and communities

(Social Information)

S1: OWN WORKFORCE PG. 157

Sustainability goals:

• Respecting human, labour, and community

rights, in accordance with local laws and

international frameworks

• Foster long-term relationships, create shared

value and support the well-being and resilience

of local communities

Connected business goals:

• Full compliance with leading sustainability

standards and certifications

• Promoting a culture of continuous

improvement

• Secure employment

• Child labour

• Forced labour

• Working time

• Adequate wages

• Freedom of association

• Collective bargaining

• Work-life balance

• Health and safety

• Training and skills development

• Diversity

• Gender equality and equal pay for work of

equal value

• Measures against violence and harassment in

the workplace

S3: AFFECTED COMMUNITIES PG. 227

• Security-related impacts

• Free, prior, and informed consent

• Adequate Food

Good business conduct

(Governance

Information)

G1: BUSINESS CONDUCT PG. 257

Sustainability goals:

• Foster a culture of ethical conduct amongst

management, sta, and contractors

• Implementing systems and processes to ensure

the practice of ethical conduct

• Maintain robust policies, procedures, and

measures to address any risks, including those

associated with bribery or corruption

Connected business goals:

• Promoting a culture of continuous

improvement

• Corporate culture

• Corruption and bribery: Prevention and

detection including training, Incidents

• Protection of whistle-blowers

92 The connection to the world of sustainable tropical agriculture

FOCUS AREA

MATERIAL

SUSTAINABILITY MATTERS VALUE CHAIN LOCATIONS GOALS

Responsible

supply chain

management

(Social

information,

Environmental

information)

E1: CLIMATE CHANGE PG. 119

Sustainability goals:

• Support smallholders in their

journey towards improved,

sustainable, and certified

production

• Support smallholders to earn

higher incomes and have better

access to international markets

• Screen and monitor suppliers to

ensure compliance with SIPEF

policies

• GHG emissions reduction and

long-term climate resilience

• Minimise impacts on natural

resources and the environment

• Sustainable land use and

biodiversity conservation,

including NDP

• Respecting human, labour,

and community rights, in

accordance with local laws and

international frameworks

Connected business goals:

• Full compliance with leading

sustainability standards and

certifications

• Maintain 100% traceability for

all products

• Engaging in practices and

solutions focused on improving

soil health and boosting yields

• Implement the highest food

safety and quality standards

• Climate change mitigation

• Smallholders

• Machinery, equipment and

tools suppliers

• Agrochemicals suppliers

• Logistics - Land transportation

• Logistics – Shipping

• Logistics - Storage facilities

• Climate change adaptation • R&D partner / Seedling

Supplier

E2: POLLUTION PG. 131

• Pollution of water

• Smallholders

E4: BIODIVERSITY AND ECOSYSTEMS PG. 141

• Land-use change

• Land degradation

• Smallholders

• R&D partner / Seedling

Supplier

S2: WORKERS IN THE VALUE CHAIN PG. 196

• Secure employment

• Working time

• Adequate wages

• Training and skills development

• Child labour

• Diversity

• Gender equality and equal pay

for work of equal value

• Measures against violence and

harassment in the workplace

• Privacy

• Smallholders

• Health and safety

• Smallholders

• Logistics – Shipping

• Logistics - Land transportation

S4: CONSUMERS AND ENDUSERS PG. 238

• Access to (quality) information

• Health and safety

• Customers

• Consumers and end-users

Value chain

SIPEF Integrated Annual Report 2024 Sustainability Statement

DOUBLE MATERIALITY ASSESSMENT

Assessing materiality plays a vital role in shaping

the sustainability focus areas and goals under

SIPEF’s Balanced Growth Strategy. This process

enables SIPEF to identify and prioritise key envi-

ronmental, social, and governance (ESG) issues,

which form the foundation for the Group’s evolving

sustainability programmes and reporting activities.

In 2024, SIPEF completed its first Group-wide

double materiality assessment, marking a signifi-

cant milestone in its compliance journey with the

CSRD. The materiality assessments from the last

two reporting periods focused primarily on impact

materiality and were guided by the requirements

of the Global Reporting Initiative (GRI).

The 2024 assessment identified sustainability

matters that are material from both impact and

financial perspectives, evaluating the ESG impacts

of the Group and its value chain, as well as ESG-

related financial risks and opportunities. This

comprehensive process was a collaborative eort

involving SIPEF’s sustainability teams, finance

department, and an external consultant, and it

was fully integrated into SIPEF’s business impacts,

risks, and opportunities assessment framework.

For more details on the broader business impacts,

risks, and opportunities (IROs) framework, see

Section 5 on SIPEF’s internal control and risk

management systems in the Corporate Governance

Statement.

Overview of SIPEF’s double materiality process

In line with requirements of the ESRS, the assess-

ment considered 10 topics and 93 sustainability

matters. It was conducted in three main phases

over the period from the third quarter of 2023 to

the third quarter of 2024.

1. MAPPING AND

UNDERSTANDING

Q3  Q4 2023

1. Stakeholder mapping

and engagement plan

3. Value chain mapping

4. Relevance mapping

5. Benchmarking

exercise

2. IDENTIFICATION

AND ASSESSMENT

OF IMPACTS, RISKS

& OPPORTUNITIES

IROs

Q1  Q2 2024

1. Identification of IROs

3. Impact materiality

assessment

4. Financial materiality

assessment

5. Value chain

materiality

assessment

3. CONSOLIDATION,

VALIDATION, AND

NEXT STEPS

Q2  Q3 2024

1. Compiling and

consolidating results

2. Validation and

approval of results

3. Identification of

material information

for disclosure

4. Review and

alignment of policies,

actions, and targets

94 The connection to the world of sustainable tropical agriculture

PHASE 1: Mapping and understanding

 Stakeholder mapping and engagement plan:

SIPEF’s key stakeholders were mapped, and

existing engagement frameworks reviewed.

Additionally, a plan was developed for any ad-

ditional stakeholder and expert engagement that

would be needed for the materiality process.

 Value chain mapping: A high-level mapping

of SIPEF’s value chain was conducted and the

various stakeholders at each step researched.

 Relevance mapping: An initial relevance as-

sessment was performed using the topics listed

in Appendix A of ESRS 1, which included inputs

from some of SIPEF’s regional sustainability

teams.

 Benchmarking exercise: Material and reported

topics of peers and customers were reviewed

and compared in a benchmarking exercise, the

results of which would inform SIPEF's process

at a later phase.

PHASE 2: Identification and assessment of IROs

across SIPEF’s operations and value chain

Identification of IROs

 Long-list of impacts: Based on desktop

research, findings from previous workshops

and stakeholder consultations, and in-house

expertise, two long-lists of actual, potential,

positive, and negative impacts of SIPEF’s oper-

ations were created—one for its palm operations

and one for its banana operations. These lists

were developed using the list of relevant ESRS

sustainability matters identified in Phase 1.

Additionally, each impact was categorised as

short-, medium-, or long-term.

 Long-list of risks and opportunities: A long-

list of risks and opportunities was developed for

SIPEF’s operations using the list of Business

Risks approved by the SIPEF audit committee

and board of directors, in conjunction with the

list of relevant sustainability matters identified

in Phase 1. In the case of biodiversity- and

climate-related topics, the results of expert

and internal impacts, dependencies, risks, and

opportunities assessments were incorporated

in the list. Links between the risks and

opportunities and impacts and dependencies

were reviewed and recorded during this exercise.

Impact materiality assessment

 Scoring mechanism: A consultant was engaged

to support SIPEF on the overall methodology of

the process, and in the development of specific

elements, including the scoring mechanism

for impact materiality. As per the ESRS

requirements, the mechanism was developed

to assess:

- severity (scale, scope, and irremediability)

of actual negative impacts

- severity and likelihood of potential

negative impacts

- scale and scope of actual positive impacts

- scale, scope, and likelihood of potential

positive impacts

The scoring criteria used a scale from 1 to 5, with

separate criteria for environmental impacts and

for social and governance-related impacts.

 Impacts assessment process: The long-lists

of impacts associated with SIPEF’s operations,

tailored separately for palm and banana

operations, were incorporated into feedback

and assessment templates, which integrated

the aforementioned scoring mechanism. These

SIPEF Integrated Annual Report 2024 Sustainability Statement

templates were distributed to sustainability

teams in Indonesia, Papua New Guinea, and Côte

d'Ivoire, to gather input on impact descriptions

and scoring. Certain impacts were centrally

scored by the global sustainability team (GST)

and external experts when appropriate. Where

available, data from monitoring or due diligence

processes informed decision-making on the

actual versus potential status of the impact

and its scoring. This included past grievances,

certification non-conformances, and monitoring

results. Rationales for scoring were documented,

and all scores and inputs were consolidated.

 Threshold: A threshold for impact materiality

had been set at 3.5 and above. Scores from

the different countries of operation, GST,

and experts were compared side by side. Any

impact with a score exceeding 3.5 was ﬂagged

as potentially material, with its materiality to

be reviewed further during validation.

Financial materiality assessment

 Scoring mechanism: The scoring mechanism

used for financial materiality was adapted from

the Group's previous business risk assessment

methodology. Under the existing methodology,

each identified business risk was scored based

on its likelihood of occurrence, using categories

ranging from "Remote" to "Certain", as well as

the magnitude of the financial impact (low,

medium, high). For the 2024 evaluation of

financial materiality, the likelihood categories

were translated into percentage ranges (for

example, "Certain" = 80–100%, and "Remote"

= 0–5%). Size of financial eects were calculated

in USD for each risk and opportunity, and

thresholds established for determining financial

materiality.

 Risks and opportunities assessment process:

The finance team conducted the assessment

process for sustainability-related business risks

and opportunities, alongside the assessment for

the other business risks, using actual amounts

from consolidated Profit & Loss (P&L) accounts

where available, and reference figures from

desktop research to calculate financial eects.

Likelihood was assessed in alignment with the

2023 Audit Committee evaluation, but updated

as required, and the GST and other departments

were consulted as needed. For sustainability

matters scored as material during the impact

materiality assessment, financial impacts were

also determined. Topics without identified risks

or opportunities from the Audit Committee or

internal or external experts, and not scored as

material for impact materiality, were deemed

immaterial for financial materiality.

 Threshold determination: SIPEF selected

benchmarks for financial eect thresholds based

on the nature of impacts. Recurring impacts

were based on average net profit over three years

with a 10% factor, while one-o impacts used

average equity over three years with the same

10% factor.

Value chain materiality assessment

 Detailed mapping: The Phase 1 high-level value

chain map was refined in consultation with

relevant departments to identify key actors,

locations, and activities (upstream, downstream,

business partners) in SIPEF’s palm oil and

banana value chains.

The connection to the world of sustainable tropical agriculture

 Impact materiality: Each key actor and their

business activities were qualitatively evaluated

against ESRS topics for impact materiality.

This involved identifying significant impacts

in SIPEF’s value chain, focusing on activities

related to supply, production, transportation,

and sales. Using desktop research and in-house

expertise, impacts were categorised as actual,

potential, positive, or negative, and classified as

short-, medium-, or long-term. These impacts

were then assessed using the same scoring

mechanism applied to SIPEF’s own operations.

 Financial materiality: The financial impact

of the value chain was assessed by reviewing

consolidated P&L accounts, the top 10 suppliers

in terms of Opex and Capex in Indonesia and

Papua New Guinea, and the P&L of Plantations J.

Eglin SA in Côte d’Ivoire. A value chain category

was deemed material if expenditures exceeded

the predefined financial threshold. As the value

chain impacts are recurring, the threshold for

recurring impacts was applied.

PHASE 3: Consolidation, validation, and next steps

 Compiling and consolidating results: Impact

materiality scores and financial materiality

results were compiled and consolidated into

a single overview. Sustainability matters

exceeding the set thresholds for either impact

or financial materiality were identified. A

sustainability matter was deemed material if

it surpassed the threshold for either impact or

financial materiality.

 Validation and approval of results: Validation

and approval at the executive management level

was carried out through workshops where

members of the SIPEF executive committee,

along with the GST, reviewed the final scores

for each sustainability matter. The process

considered benchmarking results, scoring

inputs from the dierent teams and experts,

and previously reported material topics. Final

decisions and their rationales were clearly

documented.

 Identification of material information

for disclosure: To assess SIPEF’s current

sustainability management and reporting

maturity against the ESRS disclosure

requirements, a gap analysis and mapping

exercise was conducted. This exercise identified

gaps, and the action plans needed to address

them. Disclosure requirements linked to

sustainability matters not deemed material

through the double materiality assessment were

also filtered out during this process.

 Review and alignment of policies, actions,

and targets: A mapping of policies, actions,

targets, and KPIs has been carried out at Group

level and at country level to ensure alignment

with the results of the double materiality

assessment.

SIPEF Integrated Annual Report 2024 Sustainability Statement

Scope and parameters of assessment

SIPEF's double materiality assessment evaluated

its own operations and value chain to identify

material IROs, considering all sustainability

matters required under ESRS 1 Appendix A. The

analysis covered all of the Group’s palm activities in

Indonesia and Papua New Guinea, and banana pro-

duction activities in Côte d'Ivoire, recognising that

all of these activities in these locations carry some

risk of adverse impacts. Tea and rubber activities

were excluded, as these activities are being phased

out, and their associated risks are considered lim-

ited. For more details on the phase-out process, see

the Company Report.

Activities and actors from both upstream and

downstream in SIPEF’s value chains, segmented by

crop (oil palm and banana), were assessed for IROs.

The assessment began with a qualitative evaluation

to identify the most significant impacts likely to

occur, considering the nature and geographies of

each key actor’s business, and the associated risk

of adverse impacts. The focus was on activities

directly relevant to supplying SIPEF (upstream)

or producing, transporting, or selling SIPEF's

products (downstream), with all other activities

deemed out of scope.

Sustainability matters related to value chain actors

were excluded from scope if:

 the sustainability matters were not deemed

relevant

 risk of significant IROs was limited to none

SIPEF’s smallholder suppliers are among the most

important actors in SIPEF’s palm value chain and

were assessed as part of the main materiality pro-

cess, specifically in relation to sustainability mat-

ters under ESRS S2, ‘Workers in the Value Chain’.

Environmental and business conduct impacts for

smallholders were evaluated alongside the broader

value chain as detailed in this subsection.

Stakeholder and expert consultation

Stakeholder and expert consultation played a vital

role in SIPEF's materiality process. The identi-

fication of IROs was informed by comprehensive

desktop research, as well as materiality workshops

conducted in 2022 and 2023 in the countries of

operation. These workshops provided a platform

for regional sustainability teams, employees,

and internal experts from relevant departments

to discuss key sustainability matters. Moreover,

regional sustainability teams provided their scoring

assessments of the IROs.

The desktop research was conducted using a list of

key stakeholder organisations as a guide to review

relevant online and oine materials. During its

stakeholder mapping exercise, SIPEF evaluated that

these organisations and their associated published

materials would serve as appropriate proxies for

aected stakeholders, particularly workers in the

agricultural sector, local communities, consumers,

and nature.

Relevant information from existing stakeholder

engagement materials was also reviewed. This

included social impact assessments conducted with

communities surrounding SIPEF’s operations, as

well as criteria from previous customer and investor

ESG questionnaires, and sustainability ratings and

benchmarks.

The connection to the world of sustainable tropical agriculture

Lastly, SIPEF engaged with internal and external

experts on very specific sustainability matters

through interviews and, for climate and biodi

versity-related topics, assessments of impacts,

dependencies, risks, and opportunities. Read

more about the climate-related assessments in

'E1: Climate change' and the biodiversity-related

assessment in 'E4: Biodiversity and ecosystems'.

Results of double materiality assessment

SIPEF’s double materiality process identified nine

topics, and 45 sustainability matters as material

at the group level. Circular economy was the only

topic assessed as not material, as SIPEF neither

manufactures products nor engages in services

relevant to this topic.

The results of the assessment were presented as

part of SIPEF’s business IROs assessment, which is

reviewed annually by the board through the audit

committee. The full scope of results was subse-

quently approved by the board.

The approved results will inform the review of

SIPEF’s policies, targets, and KPIs, as well as

the further development of its sustainability

programmes and management procedures. This

ensures that SIPEF effectively addresses and

monitors the management of the identified IROs.

An overview of the topics and sustainability matters

found to be material is disclosed on pages 91 - 93 of

this ‘General information’ section.

A full overview of the material IROs is provided

in Section 5 on SIPEF’s internal control and risk

management systems in the Corporate Governance

Statement.

Detailed descriptions of specific material IROs,

along with all information required under the ESRS

2 disclosure requirement SBM-3, are provided with-

in the disclosures under the corresponding topical

ESRS for each relevant sustainability matter.

SIPEF Integrated Annual Report 2024 Sustainability Statement

SIPEF BOARD OF DIRECTORS

Sustainability team

Papua New Guinea

Sustainability team Indonesia

• Team North Sumatra

• Team Bengkulu

• Team South Sumatra

Sustainability team

Côte d'Ivoire

Papua New Guinea

Executive committee

chaired by the

general manager

Côte d'Ivoire

Executive committee

chaired by the

general manager

Indonesia

Executive committee

chaired by the

president director

SIPEF EXECUTIVE COMMITTEE

Managing director: responsible for sustainability

• Senior sustainability ocer

• Senior ESG ocer

• Junior sustainability analyst

• Legal Counsel ESG

• Data manager

GLOBAL

SUSTAINABILITY

TEAM

SIPEF

GROUP HEAD OF

SUSTAINABILITY

REGIONAL

SUSTAINABILITY

TEAMS

100 The connection to the world of sustainable tropical agriculture

SUSTAINABILITY GOVERNANCE

SIPEF board of directors

Key responsibilities: ultimate oversight

Ultimate responsibility for the sustainability

strategy, including oversight of SIPEF’s material

sustainability matters and their associated impacts,

risks, and opportunities (IROs), is collectively held

by the SIPEF board of directors. The full board of

directors is responsible for the final approval of

new or revised sustainability policies, as well as the

results of the annually conducted IROs assessment

(formerly the business risk assessment). The board

is supported in its oversight responsibilities by the

audit committee, which monitors sustainability

reporting, with matters discussed in committee

meetings subsequently reported to the full board.

The responsibilities of the board and the audit com-

mittee are described in the Corporate Governance

Statement and SIPEF’s Corporate Governance

Charter.

Monitoring and reporting

The board evaluates SIPEF’s sustainability per-

formance using rankings, ratings, certification

progress, impact and risk assessments, and reports

from the executive committee. Sustainability brief-

ing papers, covering critical sustainability topics,

are included in the Managing Director’s reports,

and a safety report is provided to the board on a reg-

ular basis. Material ESG topics are also discussed

during the board’s annual strategic meeting.

SIPEF began developing a cohesive impact and risk

assessment approach aligned with CSRD and ESRS

in 2023, completing its group-wide double materi-

ality and limited assurance readiness assessment in

2024. The targets and KPIs established to monitor

progress in managing material IROs were approved

by the board of directors, following the audit com-

mittee’s recommendation, in February 2025. As of

2025, the board will conduct a structural review of

progress against these targets and KPIs through

quarterly data updates and reports.

More information on the board meetings held in

2024, including sustainability matters covered, can

be found in the Corporate Governance Statement.

Expertise and qualifications

The board of directors benefits from the significant

sustainability-related expertise of three directors:

• Yu-Leng Khor: a senior economist specialising

in ESG and sustainable supply chains in

Southeast Asia, appointed in June 2021.

• Giulia Stellari: brings extensive expertise

in sustainable supply chains, agricultural

technology, and climate-related risks and

solutions, appointed in June 2023.

• Petra Meekers: over 20 years of experience

in sustainability within the palm oil industry,

including management and directorship roles at

leading palm oil and consumer goods companies.

Petra has also been with SIPEF in both board

and executive roles and rejoined the board as

managing director in September 2024.

Together, their expertise extensively covers SIPEF’s

material environmental, social, and governance

sustainability matters and IROs.

Additionally, through the regular briefing papers

the board receives on critical sustainability topics,

it ensures access to the necessary information for

overseeing sustainability matters and assessing

related material. The board further leverages sus-

tainability-related expertise by inviting internal

experts to present their findings in more detail,

and by engaging external experts for specialised

advice when necessary.

SIPEF BOARD OF DIRECTORS

Sustainability team

Papua New Guinea

Sustainability team Indonesia

• Team North Sumatra

• Team Bengkulu

• Team South Sumatra

Sustainability team

Côte d'Ivoire

Papua New Guinea

Executive committee

chaired by the

general manager

Côte d'Ivoire

Executive committee

chaired by the

general manager

Indonesia

Executive committee

chaired by the

president director

SIPEF EXECUTIVE COMMITTEE

Managing director: responsible for sustainability

• Senior sustainability ocer

• Senior ESG ocer

• Junior sustainability analyst

• Legal Counsel ESG

• Data manager

GLOBAL

SUSTAINABILITY

TEAM

SIPEF

GROUP HEAD OF

SUSTAINABILITY

REGIONAL

SUSTAINABILITY

TEAMS

101

SIPEF Integrated Annual Report 2024 Sustainability Statement

Detailed information on the composition of the

board of directors can be found in the Corporate

Governance Statement, which also provides infor-

mation on remuneration.

SIPEF executive committee

Key responsibilities: oversight of

strategy implementation and progress

The SIPEF executive committee collectively over

sees the implementation of the Group’s sustainabil-

ity strategy and the preparation of sustainability

reporting.

Within the executive committee:

• The managing director leads and provides

expertise on all sustainability-related matters.

• The chief financial ocer (CFO) is responsible

for financial materiality, including monitoring

financial eects from sustainability-related risks

and opportunities.

• The chief commercial ocer (CCO) oversees

customer, consumer, and end-user-related IROs

for SIPEF’s palm operations.

• The fruits department manager is responsible

for IROs linked to SIPEF’s banana operations.

The responsibilities of the executive committee are

described in the Corporate Governance Statement

and SIPEF’s Corporate Governance Charter.

Monitoring and reporting

The executive committee regularly reviews SIPEF’s

sustainability progress and performance, receiving

ongoing reports from the group head of sustaina-

bility. These reports cover various ESG topics and

updates, including certification progress, SIPEF’s

GHG calculations, fire and tree cover loss moni-

toring, and health and safety metrics. Starting in

2025, this process will also aim to include quarterly

monitoring of the Group’s performance against all

KPIs and targets approved by the board of directors

in February 2025.

The executive committee also holds weekly meet-

ings with regional executive committees, which can

include updates on sustainability performance. In

addition, the managing director and the manager

of the fruits department visit operations at least

annually, receiving presentations and updates

directly from regional sustainability teams. To

address grievances, the managing director is

kept informed of any grievances escalated to the

Group-level. The managing director also serves

as a member of the Group’s grievance committee.

More information on the executive committee

meetings held in 2024, including sustainability

matters covered, can be found in the Corporate

Governance Statement.

Expertise and qualifications

As the lead on sustainability within the executive

committee, managing director Petra Meekers

brings extensive experience in ESG matters within

the palm oil industry and provides strategic guid-

ance in these areas. The other executive committee

members contribute their specific expertise across

various fields, applying their knowledge in line with

their defined responsibilities.

The executive committee jointly reviews progress

on CSRD-compliant reporting and sustainability

implementation, including KPI and target setting.

It also routinely conducts in-depth analyses of

key sustainability topics, ensuring it has access to

the necessary expertise to oversee sustainability

matters and assess related IROs. This includes

leveraging sustainability-related expertise from

the global and regional sustainability teams, via

reporting from the group head of sustainability.

102 The connection to the world of sustainable tropical agriculture

Further details on the composition of the executive

committee, its members’ professional backgrounds,

and information on remuneration and linked

incentive schemes are available in the Corporate

Governance Statement.

SIPEF group head of sustainability and global sustainability team

Key responsibilities: aligning

strategy with execution

The group head of sustainability is the key senior

executive responsible for developing and driving

the Group’s sustainability focus areas and goals

under the Balanced Growth Strategy. In this dual

role of managing the global sustainability team

and guiding the activities of regional sustainability

teams, the group head of sustainability ensures

eective alignment between SIPEF’s sustainability

strategy and its execution.

The global sustainability team works to align

SIPEF’s sustainability strategy, policies, and

communications with the evolving expectations

of key stakeholders and regulatory requirements.

They are responsible for coordinating the integra-

tion of the strategy and group-level policies with

operational activities and stakeholder priorities,

including designing and coordinating the Group’s

double materiality assessment. The team also

manages internal and external reporting on the

Group’s sustainability performance. The group

head of sustainability and the global sustainabil-

ity team operate under the oversight of SIPEF’s

managing director.

Monitoring and reporting

Responsibilities under monitoring and reporting

include consolidating key information and data

from all three regional teams to regularly inform

the executive committee on the status of sustain-

ability matters. This includes performance moni-

toring against SIPEF’s group-level commitments,

certification progress, and the management of

material IROs.

In 2024, significant eorts were made to expand

and improve data collection, aligning it with the

material IROs identified through the double mate-

riality assessment. Starting in 2025, this work will

evolve into a reporting structure that tracks the

Group’s performance against all KPIs, and targets

set in 2024, enabling quarterly updates to the exec-

utive committee and the board of directors.

103

SIPEF Integrated Annual Report 2024 Sustainability Statement

Regional sustainability teams

Key responsibilities: strategy

implementation

The three regional sustainability teams in

Indonesia, Papua New Guinea, and Côte d'Ivoire

coordinate and implement SIPEF’s sustainabil-

ity strategy and policies at the operational level.

These teams work with all relevant departments

to achieve targets set, as well as ensure legal and

certification compliance.

• The Indonesian team is led by the regional

manager sustainability of PT Tolan Tiga

Indonesia, and comprises 21 team members,

spread across four locations: the Medan Head

Office, North Sumatra, Bengkulu and South

Sumatra.

• The team in Papua New Guinea is managed

by the sustainability head of department and

has six members focused on dierent areas of

sustainability at Hargy Oil Palms Ltd (HOPL).

The team is supported by nine RSPO ocers

from the plantations and mills department.

The sustainability head of department is also

a member of the HOPL executive committee.

• The team in Côte d'Ivoire is led by the director

of operations, managed by the sustainability

manager, and consists of three additional

members. Five sustainability assistants support

the team at the operations (one at each site).

Monitoring and reporting

The regional sustainability teams collate infor-

mation and data and provide it to the global

sustainability team. Data is submitted on at least

a quarterly basis, while qualitative updates and

data alignment discussions are conducted through

regular meetings between the regional and global

sustainability teams.

Both the global and regional sustainability teams

report to the board of directors via the group head

of sustainability and the managing director on spe-

cific sustainability matters. The respective regional

executive committees oversee the regional teams,

together with the group head of sustainability.

Risk management and internal controls

SIPEF’s sustainability monitoring and report-

ing rely on internal controls tailored to specific

reporting areas, with multiple internal functions

contributing based on their expertise. To ensure

accurate and complete ESG metric reporting,

control measures were implemented at the con-

solidated level.

An overview of these control measures is provided

on page 110 of this 'General information' section.

A more detailed description of SIPEF’s internal

control and risk management systems is provided

in the Corporate Governance Statement.

104 The connection to the world of sustainable tropical agriculture

SUSTAINABILITY POLICIES

Sustainability at SIPEF is underpinned by the

Group’s two main sustainability policies: the

SIPEF Responsible Plantations Policy (RPP), and

the Responsible Purchasing Policy (RPuP).

Complementing these policies are various other

sustainability-related policies addressing specific

issues, established at both Group and country levels.

Together, they form the foundation of a comprehen-

sive framework for sustainable and ethical business

practices.

This section focuses on the RPP and RPuP, while

other policies are discussed in the context of

relevant sustainability matters and IROs in the

Environmental, Social, and Governance sections.

Specific commitments from the RPP or RPuP that

apply to managing sustainability matters and IROs

will also be disclosed alongside the corresponding

topic disclosures within those sections.

ENVIRONMENTAL FOR FURTHER DETAILS:

• Environmental Policy • Environmental information: page 118

SOCIAL FOR FURTHER DETAILS:

• Occupational Health and Safety Policy

• Human Rights Policy

• Forced or Tracked Labour Policy

• Child Labour Policy

• Equal Employment Opportunity Policy

• Protection of Reproductive Rights Policy

• Freedom of Association Policy

• Sexual Harassment Policy

• Social information: page 156

GOVERNANCE FOR FURTHER DETAILS:

• Corporate Governance Charter

• Code of Conduct

• Anti-corruption and Anti-bribery Policy

• Grievance Policy

• Governance information: page 256

105

SIPEF Integrated Annual Report 2024 Sustainability Statement

Responsible Plantations Policy

First established in 2014, SIPEF’s Responsible

Plantations Policy (RPP) embodies the Group's

core environmental and social commitments for

sustainable production and processing. This policy

is applicable to all SIPEF-managed plantations and

smallholders supplying products to SIPEF mills

and integrated kernel crushing plants.

Key commitments and requirements:

 100% certification and traceability of products

 No deforestation, no new developments on peat,

and no exploitation (NDPE)

 Free, Prior, and Informed Consent (FPIC) prior

to any new development

 GHG emissions reduction

 Continuous improvement, emphasising the

prompt adoption of best management practices

for optimising land use, while minimising

adverse impacts

One of the driving commitments of the RPP is

achieving a 100% Roundtable on Sustainable Palm

Oil (RSPO) certified supply base for its palm oil

production, and for the smallholders delivering to

its mills. It also commits the Group to upholding

the 100% certification of its banana operations to

the Rainforest Alliance Sustainable Agriculture

Standard, as well as the GLOBALG.A.P. and

Fairtrade standards.

Responsible Purchasing Policy

Formalised in 2020, SIPEF’s Responsible

Purchasing Policy (RPuP) outlines the Group's

responsible sourcing requirements for engaging

with third-party suppliers of fresh fruit bunches

(FFB), who are exclusively smallholders. It sets

out criteria for supporting smallholders on their

journey towards sustainability certification, with

a focus on RSPO certification. The policy also pro-

vides a framework for SIPEF to select, monitor, and,

if necessary, suspend or exclude smallholders from

the Company’s supply base.

Key commitments and requirements:

 Sourcing from RSPO certified smallholders, or

those with potential for certification under the

Group's RSPO Time Bound Plan

 Criteria for collaborating with smallholders

linked with respecting human and labour rights,

FPIC, no deforestation and no new developments

on peat (NDP), and other environmental and

social considerations

106

The connection to the world of sustainable tropical agriculture

Development and dissemination

SIPEF believes that stakeholder interests are

central to policy development, including ensur-

ing that the needs and concerns of smallholders,

local communities, and other aected parties are

addressed. Since their inception, the RPP and

RPuP have aligned with the principles of leading

sustainability standards, developed through mul-

ti-stakeholder engagement, as well as international

frameworks such as the Universal Declaration of

Human Rights. SIPEF also regularly reviews indus-

try benchmarks, such as the Sustainability Policy

Transparency Toolkit (SPOTT), and consults with

country-level departments, including sustainability

and smallholders’ teams, to continuously refine and

enhance these policies.

The RPP and RPuP were last updated in August

2024 to reﬂect stakeholder views and align with the

Group’s strategy. Updates to both policies included

revising the NDP cut-o date to 31 December 2015

to align with the wider industry and ensuring com-

pliance with the EU Regulation on Deforestation-

free Products (EUDR). Additionally, for the RPP,

the updates included aligning the policy’s pillars

with the Balanced Growth Strategy and adding a

commitment to restore natural ecosystems aected

by deforestation.

Sustainability teams in each country play a vital

role in eectively disseminating the policies across

SIPEF’s operations. Methods include emails,

announcement boards, worker briefing sessions,

standard operating procedures, training sessions,

signed contracts with contractors, and other social-

isation initiatives to ensure the policies reach all

stakeholders critical to their implementation. The

group head of sustainability holds the highest level

of accountability for implementing the RPP and

RPuP.

Both policies are accessible to all stakeholders on

SIPEF’s website.

 www.sipef.com/hq/sustainability/sipef-corporate-policies

107

SIPEF Integrated Annual Report 2024 Sustainability Statement

DUE DILIGENCE STATEMENT

SIPEF’s due diligence system integrates policies,

processes, and tools to ensure the Group is in com-

pliance with international sustainability standards,

ethical practices, and human rights frameworks. It

is designed to identify, assess, mitigate, and monitor

ESG impacts and risks throughout the Company’s

operations and supply chain.

Integration of due

diligence in governance,

strategy, and business

model

Monitoring,

evaluation, and

reporting

Impacts and risks

identification and

assessment

Mitigation measures

and continuous

improvement

Addressing actual

impacts

KEY

COMPONENTS

RELEVANT DISCLOSURE

REQUIREMENTS

Integration of due diligence in governance, strategy, and business model

The integration of due diligence in governance is essential for eective implementation and

long-term success. Cornerstone policies such as the RPP, RPuP, and Grievance Policy outline

commitments to certification, traceability, risk assessment, monitoring, reporting, accountabil

ity, and engaging with stakeholders to address concerns. SIPEF’s governance structure ensures

these, and other commitments are upheld, with leadership and management teams collaborative

ly managing risks and mitigating impacts. Regular reviews and reporting mechanisms further

drive accountability and continuous improvement. By aligning operations with sustainability

standards and addressing ESG risks, due diligence directly supports SIPEF’s business model and

strategy to deliver sustainable, traceable, and certified products.

ESRS 2 GOV-2

See pages 101-102,

292-293, 298

ESRS 2 GOV-3

See pages 308-309,

315

ESRS 2 MDR-P

Disclosed throughout

topical ESRS sections

ESRS 2 SBM-3

Disclosed throughout

topical ESRS sections

Key components of

due diligence at SIPEF:

108 The connection to the world of sustainable tropical agriculture

KEY

COMPONENTS

RELEVANT DISCLOSURE

REQUIREMENTS

Impacts and risks identification and assessment

At the highest level, the double materiality assessment is a foundational component of SIPEF’s

framework for identifying and prioritising ESG impacts and risks across operations and the

supply chain. This process is supported by inputs from teams in each country of operation, as well

as external risk assessments. At the operational level, each subsidiary employs tailored mecha

nisms to identify ESG impacts and risks, reﬂecting their local contexts, systems, and processes.

A unifying element across these eorts is adherence to the sustainability standards and audit

frameworks SIPEF has committed to: RSPO for palm operations, and Rainforest Alliance,

Fairtrade, GLOBALG.A.P., and SMETA for banana operations.

ESRS 2 IRO-1

See pages 94-99

ESRS 2 SBM-3

Disclosed throughout

topical ESRS sections

Mitigation measures and continuous improvement

Where impacts and risks are identified, SIPEF implements mitigation measures and action plans

to address these. Training programmes, capacity-building initiatives, research development

and innovation, and the adoption of best practices are employed to foster a culture of continuous

improvement across the organisation.

ESRS 2 MDR-A

Disclosed throughout

topical ESRS sections

Monitoring, evaluation, and reporting

SIPEF employs a myriad of mechanisms and tools to monitor, evaluate, and report ESG impacts,

risks, and the progress of actions across its operations. Internal measures include on-the-ground

surveys, audits, and grievance channels. External eorts involve impact assessments, stakeholder

engagement, and third-party monitoring and certification. Findings are shared from the coun

try-level to the Group-level through internal reporting mechanisms, while data on impacts and

risks are communicated via structured data collection processes. Key results are transparently

published in the Integrated Annual Report and the Grievance Dashboard.

Increasingly, SIPEF is developing its use of digital tools and technology to support monitoring

and reporting eorts on a continuous basis, including satellite surveillance for deforestation and

fires, and the SIPEF Grievance Solutions platform.

ESRS 2 MDR-M

Disclosed throughout

topical ESRS sections

ESRS 2 MDR-T

Disclosed throughout

topical ESRS sections

Engaging with aected stakeholders

Stakeholder engagement is integral to SIPEF’s due diligence process, supporting all stages

of identifying, addressing, and mitigating ESG risks and impacts. This includes a grievance

mechanism that allows internal and external stakeholders to raise concerns directly at any time,

with whistleblower protection ensuring a confidential and retaliation-free channel for reporting

unethical behaviour. Proactive community engagement further helps SIPEF address issues early

and integrate stakeholder insights into impacts and risks identification and mitigation measures.

ESRS 2 GOV-2

See pages 101-102

ESRS 2 SBM-2

See pages 111-117

ESRS 2 IRO-1

See pages 98-99

Addressing actual adverse impacts

When actual adverse impacts are identified whether through monitoring and evaluation or

through direct stakeholder feedback, SIPEF develops action plans to address non-conformities or

ineective actions.

ESRS 2 MDR-A

Disclosed throughout

topical ESRS sections

109

SIPEF Integrated Annual Report 2024 Sustainability Statement

RISK MANAGEMENT AND INTERNAL CONTROLS

OVER SUSTAINABILITY REPORTING

SIPEF has established a sustainability reporting

system that involves cross-departmental collabo-

ration and continuous refinement based on iden-

tified risks. The Group implements both internal

and external controls to enhance the accuracy,

reliability, and transparency of its sustainability

reporting. These controls are designed to minimise

risks of errors, improve data quality, and ensure

compliance with evolving sustainability disclosure

requirements.

Risk identification and management

As part of SIPEF’s risk assessment approach for

sustainability reporting, the GST works closely

with regional sustainability teams and internal

data owners to identify risks and maintain a reliable

reporting framework. The team includes a global

data manager, who joined in April 2024, as well as

a legal counsel ESG. This collaboration ensures

continuous monitoring and updates to the frame-

work to align with evolving reporting requirements

and maintain compliance with relevant regulatory

disclosures.

As part of this process in 2024:

1. SIPEF’s sustainability data collection

template was updated to align with the material

sustainability matters identified in its double

materiality assessment. The template ensures

that data reporting under each matter complies

with the ESRS.

2. Data has been collected monthly or

quarterly, depending on the data point, by the

regional sustainability teams and submitted to

the GST.

3. Submitted data has been reviewed and

analysed, with historical data trends used to

identify potential gaps. Regular calibration

meetings were held to ensure alignment on data

definitions and collection procedures.

Through this process, SIPEF has identified man-

ual data handling as a key risk in its sustainability

reporting, as it increases the potential for errors

and inconsistencies. To mitigate this risk, SIPEF is

transitioning to a more structured and automated

data collection system. In the interim, several inter-

nal controls have been implemented to improve

data accuracy and consistency.

110

The connection to the world of sustainable tropical agriculture

Internal controls

With the expansion of sustainability data report-

ing in 2024, SIPEF has strengthened its internal

controls through the development of a formalised

data procedure. This procedure outlines roles and

responsibilities at both the country and group levels

and establishes a structured submission process.

An approval workﬂow ensures that regional man-

agement reviews and validates the data before sub-

mission to group level. For all data and information

reported to the board or published in the annual

report, SIPEF’s executive committee provides final

approval prior to reporting finalisation.

External controls

In preparation for SIPEF’s 2024 integrated annual

report, the Group worked closely with its external

auditor who during 2024 performed a limited

assurance of its double materiality assessment

and compliance with the overall ESRS disclosure

requirements.

In addition, certain environmental and social

performance data continues to be reviewed

through certification audits to ensure compliance

with standards such as the RSPO and Rainforest

Alliance.

The outcome of the limited assurance process of

this report can be found in the Auditors Statement.

Stakeholder engagement

SIPEF places great importance on understanding

the needs, expectations, and evolving concerns of

its key stakeholders. Regular dialogue and partner-

ships are critical to the successful implementation

of SIPEF’s Balanced Growth Strategy, ensuring

that the perspectives of those impacted by and

inﬂuencing SIPEF’s decisions are considered.

In the following table, a list of key stakeholders

and SIPEF’s approach to engagement is described.

111

SIPEF Integrated Annual Report 2024 Sustainability Statement

STAKEHOLDER

ENGAGEMENT PURPOSE

AND RELEVANCE ENGAGEMENT APPROACH

RESPONSE TO

ENGAGEMENT OUTCOMES

AFFECTED STAKEHOLDERS

Nature Relevance: Nature

provides essential

resources for cultivation,

ecosystem services, and

inﬂuences the health and

productivity of planta

tions. Environmental

impacts linked to

SIPEF’s activities could

also aect the Company’s

reputation.

Purpose:

• Assessing actual and

potential impact on the

natural environment

• Improving

environmental

practices towards

responsible production

Engagement with environmental experts/organ-

isations, who serve as proxies for nature as a key

stakeholder.

• Climate and biodiversity experts, to

conduct physical climate and biodiversity

impact, dependencies, risks and opportunities

assessments, and review SIPEF’s climate-

related targets

• Technical consultants, who carry out

integrated HCV-HCSA assessments,

Environmental Impact Assessments, and

deforestation and fire monitoring

• Science-based conservation organisations,

such as the Zoological Society of London

(ZSL) and SINTAS Indonesia, who have

provided technical support and training on

tiger monitoring under the SIPEF Biodiversity

Indonesia programme (SBI)

• Environmental NGOs, to gather information

on the latest sustainable agricultural practices,

through participation in RSPO working groups,

meetings at RSPO annual conferences, and

desktop research

• Climate and biodiversity

assessment results have

informed SIPEF’s double

materiality analysis and

the development of the

Group’s climate transition

plan.

• Assessment and

monitoring findings by

technical consultants

inform SIPEF’s due

diligence on its NDP

commitment, as well as

management plans for

conservation areas.

• Training and support from

ZSL and SINTAS have

been utilised to improve

tiger monitoring at SBI.

• Key publications and

studies by NGOs help

inform the materiality of

sustainability matters.

Employees

Relevance: With over

24000 employees,

SIPEF’s workforce is the

driving force behind its

success and central to

its operations and the

successful implementa

tion of its strategy.

Purpose:

• Ensure compliance

with human and

labour rights policies

• Address employee

needs and grievances

through structured

mechanisms

• Engage sta on

workplace rights,

well-being, and fair

treatment

• Provide essential

services such as

housing, healthcare,

and education

• Promote sustainability

awareness and

responsible workplace

practices

Direct engagement with employees, or via trade

unions and social experts/organisations, who

serve as proxies.

• Risk assessments and training

programmes, covering health and safety,

sustainability, best management practices, and

policy implementation to ensure compliance

and continuous improvement

• Trade unions, through annual, quarterly

and ad-hoc meetings to discuss collective

bargaining agreements, wages, and working

conditions

• Annual appraisals, to provide employees

with performance evaluations, feedback, and

development opportunities to support career

growth

• Social experts, for assistance in addressing

grievances, evaluating gaps in labour practices,

and improving relevant policies

• Social NGOs and academic institutions,

engaged to gather insights on leading

frameworks and best practices through

desktop research

• SIPEF’s grievance mechanism, which

employees can engage directly through

accessible channels to raise grievances or

provide feedback

• Health and safety risk

assessments inform

management plans, as well

as training content and

frequency.

• Feedback from trade union

meetings is reviewed by

HR departments in each

country of operation, with

actions taken to align

agreements and workplace

conditions as needed.

• Grievances, and

any corresponding

recommendations from

social experts, shape

action plans. Past and

ongoing grievances

have also contributed to

SIPEF’s double materiality

analysis.

• Desktop research

findings help determine

the materiality of

sustainability matters.

112 The connection to the world of sustainable tropical agriculture

STAKEHOLDER

ENGAGEMENT PURPOSE

AND RELEVANCE ENGAGEMENT APPROACH

RESPONSE TO

ENGAGEMENT OUTCOMES

Small-

holder

suppliers

Relevance: Smallholders

contribute significantly

to SIPEF’s FFB supply

and global palm oil

production. They ensure

a stable supply chain

and have the potential

to enhance the overall

social, environmental,

and economic sustain

ability of the palm oil

sector.

Purpose:

• Support smallholders

to improve their

production and

livelihoods,

and integrate

sustainability

practices with the

aim to achieve RSPO

certification

• Engage smallholder

suppliers in best

management practices

around optimising

yields, soil health,

correct pesticide

use and biodiversity

protection

Engagement with smallholders, primarily

through SIPEF’s smallholder departments and

sustainability teams in Indonesia and Papua New

Guinea.

• Smallholder programmes, through

which SIPEF conducts training, shares

best management practices, supplies

seedlings, fertiliser and equipment, supports

smallholders with RSPO certification, and

oers agronomic and logistical assistance

• Monitoring and audits, carried out internally

and by third parties, ensure compliance

with supplier requirements, including no

deforestation and RSPO certification.

• A Local Planning Committee (LPC),

comprising of HOPL, a local government body,

and research and smallholder representative

organisations, coordinates R&D, agronomic

services, training, and community

development support for smallholders

• Assessment and

monitoring findings

support SIPEF’s due

diligence on Responsible

Purchasing Policy

implementation,

including smallholder

compliance with RSPO

certification and NDP.

This process involves

ongoing dialogue, with

outcomes communicated

back to smallholders

through the smallholders’

departments.

• LPC meetings facilitate

stakeholder engagement

and collaboration

between key stakeholders

within the industry,

leading to initiatives

such as streamlining

land title transfers,

improving law and

order, and implementing

community-focused social

programmes to support

sustainable development

and livelihoods.

Affected

communi

ties

Relevance: Local com

munities can be directly

impacted by operations

through land use,

environmental changes,

employment opportuni

ties, and social dynamics.

Engagement strengthens

social licence to operate,

reduces conﬂicts, and

enables targeted support.

Purpose:

• Understand and

address community

grievances and

concerns

• Understand and

support needs related

to employment

and community

development

Direct engagement with communities through

community engagement departments, or via

social experts and organisations, who serve as

proxies.

• Social experts and licenced assessors,

engaged to guide SIPEF’s FPIC processes

with communities, ensuring transparent and

inclusive decision-making prior to any new

land development

• Internal and external social experts, who

carry out social impact assessments (SIAs) to

evaluate and address the eects of operations

on communities

• Community programmes, supporting

local development, well-being, and economic

empowerment

• Social NGOs and academic institutions,

engaged to gather insights on leading

frameworks and best practices through

desktop research

• SIPEF’s grievance mechanism, which

communities can engage directly through

accessible channels to raise grievances or

provide feedback

• Management plans are

developed based on the

results of SIAs.

• Integrated Conservation

Land Use Plans are

informed by FPIC

results, and no new land

is developed without

the consent of aected

communities.

• Confirmed grievances are

followed up by action plans

to address them. Past

and ongoing grievances

have also contributed to

SIPEF’s double materiality

analysis.

• Desktop research

findings help determine

the materiality of

sustainability matters.

113

SIPEF Integrated Annual Report 2024 Sustainability Statement

STAKEHOLDER

ENGAGEMENT PURPOSE

AND RELEVANCE ENGAGEMENT APPROACH

RESPONSE TO

ENGAGEMENT OUTCOMES

Consumers

Relevance: Consumers

shape demand, par

ticularly in SIPEF’s key

markets, the EU and

UK, where quality and

sustainability expecta

tions are high.

Purpose:

• Understand evolving

market expectations

on food safety, quality,

and sustainability

standards

Insights on consumer concerns are gathered

through customers who act as proxies, as SIPEF

operates upstream and does not produce con

sumer goods, or market directly to consumers.

Since 2022, SIPEF has

increased its focus on

quality, particularly food

safety, as part of its broader

business strategy. This shift

addresses various industry

priorities, including con

sumer health concerns about

contaminants in palm oil.

USERS OF ANNUAL REPORT AND OTHER KEY STAKEHOLDERS

Customers

Relevance: Customers

are critical to SIPEF’s

business as they

purchase its products

and set requirements

for certification and

purchasing policies.

Purpose:

• Understand

customer needs and

expectations.

• Communicate

developments

in quality and

sustainability across

SIPEF’s production

practices and products

• Collaborate on pilot

projects to test

innovative solutions to

shared challenges

Direct engagement with customers through

marketing department, fruits department, and

sustainability teams.

• Customer meetings, to align on

expectations, requirements, and sustainability

commitments

• ESG questionnaires, that assess SIPEF’s

compliance with customer policies

• Knowledge exchange, through meetings with

customers’ sustainability teams, to share best

practices and industry developments

• Desktop research, including policy reviews,

sustainability reports, and websites, to gather

insights and benchmark customer priorities

• Customer requirements

and priorities have

contributed to SIPEF’s

strategy to focus on high

quality, traceable, and

sustainable certified palm

oil.

• Engagement and feedback

from customers prepares

SIPEF for new and

emerging market trends.

• Desktop research and

benchmark results have

informed the validation

process of SIPEF’s double

materiality assessment.

Peers Relevance: Peers can

indicate the benchmarks

for sustainability already

being set for the industry.

Purpose:

• Benchmark

sustainability

performance to

align with industry

standards

• Exchange knowledge

and best practices

to drive continuous

improvement

Direct and indirect engagement through:

• Knowledge exchange, via meetings with

customers’ sustainability teams, to share best

practices and industry developments

• Desktop research, including policy reviews,

sustainability reports, and websites, to gather

insights and benchmark priorities

Desktop research findings

and benchmark results have

supported the identification

and prioritisation of the

materiality of sustainability

matters.

114 The connection to the world of sustainable tropical agriculture

STAKEHOLDER

ENGAGEMENT PURPOSE

AND RELEVANCE ENGAGEMENT APPROACH

RESPONSE TO

ENGAGEMENT OUTCOMES

Share-

holders

and

investors

Relevance: Shareholder

and investors Contribute

to the financial founda

tion for SIPEF’s business

and set key requirements

that shape its policies

and strategic decisions.

Purpose:

• Share updates on

SIPEF’s strategy,

business, financial

and sustainability

performance

• Build trust through

open dialogue,

disclosure and

transparency

• Understand

expectations on

financial and

sustainability

performance

Direct engagement with SIPEF’s main sharehold

er, Ackermans & van Haaren (AvH) including:

• Regular meetings and workshops, organised

by AvH and involving the sustainability team

and their other participations, featuring ESG

retrospective and forward-looking sessions, as

well as ESG workshops

• ESG questionnaire and annual ESG

meeting, to review SIPEF’s sustainability

progress in relation to shareholder

expectations and requirements

• Board representation, providing SIPEF with

strategic direction

Engagement with other shareholders and banks:

• Financial and sustainability reporting,

including interim reports, and the integrated

annual report

• ESG questionnaires, from banks to assess

SIPEF’s performance and compliance with

their requirements

• Roadshows and analyst meetings, to engage

with investors and provide financial and

strategic updates

• Website, as a resource for financial and

ESG-related disclosures

• Requirements and

feedback have inﬂuenced

policy development,

reporting, and strategic

direction.

• Knowledge sharing

and workshops have

contributed to the

development of SIPEF’s

double materiality

methodology.

• Discussions and

ESG questionnaires

have informed the

materiality assessment of

sustainability matters.

Govern-

ments and

regulato

ry bodies

Relevance:

Governments and reg

ulatory bodies set legal

requirements that SIPEF

must comply with.

Purpose:

• Compliance with

international, national

and local regulations

• Collaborate on

infrastructure,

service development,

smallholder capacity-

building initiatives,

and conservation

eorts

• SIPEF prepares for site inspections by

authorities and submits reports in compliance

with government regulations in the

jurisdictions where it operates and supplies its

products

• SIPEF engages with local authorities and

ministries to contribute to public service

projects

• SIPEF consistently

ensures compliance

with all applicable

laws and regulations

while proactively

incorporating feedback

from relevant government

representatives when

provided.

• SIPEF regularly reports

compliance to the relevant

authorities.

115

SIPEF Integrated Annual Report 2024 Sustainability Statement

STAKEHOLDER

ENGAGEMENT PURPOSE

AND RELEVANCE ENGAGEMENT APPROACH

RESPONSE TO

ENGAGEMENT OUTCOMES

Multi-

stake-

holder

initia

tives and

standards

Relevance: Multi-

stakeholder initiatives

and certification

schemes bring stake

holders together, and

define suastainability

standards and require

ments for responsible

management practices.

They also play a key role

in providing access to

the markets served by

SIPEF, and facilitate

multi-stakeholder

knowledge exchange and

best practice sharing.

Purpose:

• Understand and

contribute to the

development of

sustainability

standards

• Share best practices

and collaborate to

improve industry-wide

adherence

• Ensure compliance

through certification

audits

• Promote the

production and use of

certified sustainable

palm oil

SIPEF engages directly through:

• RSPO membership, including participation

in the Biodiversity and High Conservation

Values Working Group, Standard Setting

Committee, Jurisdictional Approach Working

Group, Compensation Task Force, and ‘No

Deforestation’ Joint Steering Group

• Representation on the RSPO Board of

Governors, holding a seat on behalf of ‘Rest-

of-the-World’ growers

• RSPO Annual Communication of Progress

(ACOP), reporting on sustainability

commitments and progress

• Compliance audits, both internal and

external, for RSPO, Rainforest Alliance,

Fairtrade, GLOBALG.A.P (Good Agricultural

Practices), International Sustainability and

Carbon Certification (ISCC), ISO14001, ISO

14064-1, and Indonesian Sustainable Palm Oil

(ISPO)

• Membership of other multi-stakeholder

initiatives, such as the Tropical Forest

Alliance and Belgian Alliance for Sustainable

Palm Oil

• SIPEF sta with

representation roles

within RSPO inform

internal decision-

makers about best

practices, solutions, and

amendments or new

certification requirements

that the group must

implement or prepare for.

• SIPEF sta participating

in working groups

or committees are

responsible for

representing the

Company’s views and

expectations.

• The criteria of the

standards SIPEF

complies with shape

its sustainability

management system,

policies, due diligence

processes, and

environmental, social, and

governance practices.

Research

and

devel

opment

(R&D)

Relevance: Research

and development drive

innovation, validate best

practices, and shape

industry standards, and

can support SIPEF’s

ambitions for sustaina

bility, quality, production

eciency, and long-term

resilience.

Purpose:

• Access to the latest

innovative solutions

that contribute

to improving

productivity and

quality

• Collecting information

on best industry

practices and

upcoming trends

SIPEF engages directly through:

• Investment in R&D partner, Verdant

Bioscience Pte Ltd, developing F1 Hybrid

crosses designed for high yields in changing

rainfall patterns and marginal soils impacted

by climate change

• Engagement of innovation and technology

solution providers, to identify, set up, and

help implement carbon sequestration and

SMART agriculture solutions

Trial results and scientific

research informs the feasi

bility of SIPEF’s long-term

strategy and plans, which

includes a focus on produc

tion eciency, operational

excellence, and resilience

to changing environmental

conditions.

116 The connection to the world of sustainable tropical agriculture

STAKEHOLDER

ENGAGEMENT PURPOSE

AND RELEVANCE ENGAGEMENT APPROACH

RESPONSE TO

ENGAGEMENT OUTCOMES

Bench-

marks and

ratings

Relevance: These

organisations conduct

sustainability bench

mark assessments or

ratings that evaluate

company transparency

and sustainability

practices. The results

could have potential

impacts on reputation

and investor appeal for

SIPEF.

Purpose:

• Understand and align

with stakeholder

expectations on

sustainability

performance

SIPEF is evaluated by, and responds to, rating

agencies and benchmark organisations on

an annual basis, based on publicly available infor

mation and SIPEF’s submissions. These include:

• SPOTT (Sustainability Policy

Transparency Toolkit)

• Forest 500

• CDP: Forests and Climate Change

• Gap analyses identify

sustainability, policy, and

reporting gaps. Updates

to reporting, policies, and

action plans are made

based on feasibility.

• Assessment results

are also reviewed by

management alongside

past performance

and industry peer

comparisons.

Amendments to strategy and business model

SIPEF’s first group-wide double materiality assess-

ment in 2024, which has been informed by the

engagement and views of various key stakeholders,

has identified key impacts, risks, opportunities, and

material sustainability matters for the Company.

Following the assessment, SIPEF has refined its

focus areas, priorities, and sustainability goals

under the Balanced Growth Strategy to align

with the results. The Company has also initiated

a comprehensive review of its sustainability targets,

KPIs, and policies, with the process set to continue

in 2025 and 2026. This review exercise has the

potential to modify the views of key stakeholders.

Stakeholder engagement and governance

SIPEF’s executive committee and board of direc-

tors remain informed about stakeholder views on

material sustainability matters through regular

reporting and briefings. These include findings

from risk assessments, certification audits, and

sustainability ratings and benchmark results,

which support strategic decision-making.

Additionally, the executive committee played a key

role in the validation of SIPEF’s double materiality

assessment, while the board was responsible for

its approval. The assessment incorporated stake-

holder views and included benchmarking insights

to support the validation process.

Through these reporting mechanisms and process-

es, SIPEF ensures that its management and super-

visory bodies remain well-informed and responsive

to stakeholder concerns, aligning sustainability

priorities with the company’s long-term direction.

117

SIPEF Integrated Annual Report 2024 Sustainability Statement

Environmental

information

SIPEF’s approach to environmental stewardship

focuses on minimising and managing both direct

and indirect impacts of its business activities on

the natural environment, and on the climate.

Sustainable land use and conservation are inte-

gral to this approach, as reﬂected in the Company’s

biodiversity and conservation initiatives, and in its

group-wide commitment to no deforestation and

no new developments on peat, applicable to both

its own operations and its smallholder suppliers.

The Group is dedicated to reducing the environ-

mental footprint of its operations, from plantations

to processing, through the implementation of best

management practices and risk-based impact mit-

igation strategies, including reducing greenhouse

gas (GHG) emissions.

Focus area and

sustainability goals

 

 GHG emissions reduction and long-term climate

resilience

 Minimise impacts on natural resources and the

environment

 Sustainable land use and biodiversity

conservation, including no deforestation and

no new developments on peat

118 The connection to the world of sustainable tropical agriculture

E1: Climate change

The global agricultural sector is a contributor to

climate change, with agriculture, forestry, and

other land uses collectively representing about

one-fifth (22%) of worldwide anthropogenic GHG

emissions.

At the same time, the sector is also

vulnerable to climate-related risks and impacts,

including unpredictable weather patterns, more

extreme weather events, heat stress, and increased

incidence of pests and diseases.

As an agriculture company, SIPEF has a goal to

reduce its GHG emissions and build long-term

climate resilience. This goal falls under the Group’s

environmental stewardship focus area, which is

part of SIPEF’s Balanced Growth Strategy. To

achieve this goal, the Group will implement a com-

prehensive climate transition plan that integrates

sustainable energy practices, circular economy

principles, optimised land use, and water resource

management, while protecting biodiversity. This

approach contributes to fostering a sustainable,

low-carbon future for the oil palm industry.

SUMMARY OF KEY CONTENTS

MATERIAL SUSTAIN

ABILITY MATTERS

APPLICABLE

POLICIES

TARGETS KEY UPDATES

• Climate change

mitigation

• Energy

• Responsible

Purchasing

Policy (RPuP)

• Responsible

Plantations

Policy (RPP)

• Methane capture: install methane capture at all mills

by FY2030.

• Site based monitoring of GHG emissions through

direct measurements at all the organic soil estates by

2028.

• 28% reduction in net emissions intensity from 2021

baseline by 2030 (Scope 1 & Scope 2) for oil palm

operations, which will be revised to align with ESRS

requirements as a next step.

• Gross GHG emissions,

including Scope 3, were

reported for the first

time in 2024.

• Physical and transition

climate risk assessments

were carried out in

support of the Group’s

climate transition

planning

• Climate change

adaptation

• RPP • Protection of coastal shorelines and prevention of

ﬂooding through buer restoration of 41.5 hectares by

2027 in oil palm operations.

• Regenerative agriculture pilots with a model to scale

up at five sites by 2026 in oil palm operations.

• Installation of rainwater harvesting system in all palm

oil mills by 2030.

• Installation of water recycling basin at one banana

packing station by 2025.

(1) Source : www.epa.gov/ghgemissions/global-greenhouse-gas-overview

(2) The target was set prior to this reporting period and is not included in the scope of the CSRD limited assurance conducted for this Sustainability

Statement. It will be revised in 2025 to align with the requirements of the ESRS.

119

SIPEF Integrated Annual Report 2024 Sustainability Statement

CLIMATE CHANGE AND ENERGY

A double materiality assessment carried out on

SIPEF’s operations and upstream and downstream

value chain identified climate change mitigation,

climate change adaptation and energy as material

sustainability matters. The assessment was car-

ried out in consultation with internal and external

experts utilising the best information available.

Impacts

 

 , -

SIPEF's operations generate GHG emissions main-

ly from land use change including cultivation in

organic soils, palm oil mill euent (POME), and

inputs for the operations such as fuel and fertilisers.

Approximately 98% of SIPEF’s GHG emissions

come from the cultivation and processing of oil

palm products. Banana production does not make a

big contribution, accounting for just 2% of SIPEF’s

overall gross GHG emissions.

-  

 ,  -

In Papua New Guinea and Côte d’Ivoire, SIPEF’s

operations remain heavily reliant on non-renewable

energy sources.

SIPEF’s GHG emissions

  

SIPEF has been calculating its Scope 1 and Scope

2 emissions since 2019 and included Scope 3

emissions in 2024. Since 2022, SIPEF has used

the ISO 14064-1 standard-specific principles and

requirements at the organisational level for the

quantification and reporting of GHG emissions

and removals. For 2024, the GHG Protocol was

used as a reference to justify the inclusion of Scope

3 categories included in emissions calculations.

SIPEF reports its emissions and removals based

on an organisational boundary that covers all its

operations listed in the consolidated financial

statements in the following locations: Belgium,

Indonesia, Côte d’Ivoire, Papua New Guinea, and

Singapore. The scope includes all activities in the

processing and cultivation of palm oil and bananas.

This comprises:

 Scope 1 and Scope 2: plantations, mills and

packing stations that are owned and managed

by SIPEF.

 Scope 3: indirect upstream and downstream

emissions associated with value chain activities

relevant to SIPEF.

The scope of the Company will be expanded or

reviewed if there are additional processing activi-

ties reported under the consolidated assets.

SIPEF’s GHG calculation procedure and calculators

were developed by external experts. Conversion

and emission factors are based on peer reviewed

sources such as those provided in the databases of

the Intergovernmental Panel on Climate Change

(IPCC), the US Environmental Protection Agency,

and peer reviewed scientific studies.

(3) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impacts are newly

identified and were not included in these exact forms in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

120 The connection to the world of sustainable tropical agriculture

Significant assumptions in the calculations include:

 the methodology results in an accurate estimate

of real annual emissions and removals.

 there is no catastrophic impact to the biological

growth of plantations and conservation areas.

GHGs considered in the calculation include carbon

dioxide (CO), methane (CH), nitrous oxide (NO),

hydrofluorocarbons (HFCs), perfluorocarbons

(PFCs), sulphur hexaﬂuoride (SF) and nitrogen

triﬂuoride (NF). Final emissions are converted to

carbon dioxide equivalent using the global warming

potential (GWP) coecients from the IPCC.

The impacts of SIPEF’s operations on climate

change are listed below:

 Scope 1: Direct emissions from plantations,

mills, and packing stations, and oces that are

owned and managed by SIPEF. Emissions result

from land use change, POME, and inputs such

as fertilisers, fuels, chemicals, lubricant, and

refrigerants.

 Scope 2: Indirect emissions from the energy

purchased externally from the national

grid according to the Group’s location-based

approach. While the Group currently reports

Scope 2 emissions using the location-based

method, it uses this as a proxy to estimate

market-based emissions. Steps will be taken to

implement the market-based approach as data

quality and availability improve.

 Scope 3: Indirect emissions from upstream

and downstream operations in SIPEF’s value

chain. These are reported under the following

categories:

 Category 1: Purchased goods and services.

For SIPEF’s own operations, this includes

extraction, production, and transportation

of goods and services purchased or

acquired, not otherwise included in other

Scope 3 categories. SIPEF also includes the

emissions from independent smallholders’

land use change including organic soils

emissions, and inputs for operations such

as chemicals and fertilisers.

 Category 2: Capital goods. For SIPEF’s

own operations, this includes extraction,

production, and transportation of capital

goods purchased or acquired.

 Category 3: Fuel and energy-related

activities: For SIPEF’s own operations,

this includes production and delivery of

fuels and energy consumed, which are not

directly accounted for in Scope 1 or Scope 2

emissions.

 Category 4: Upstream transportation

and distribution. For SIPEF’s own

operations, this includes emissions from

the transportation of seeds, fresh fruit

bunches (FFBs), fertilisers, pesticides,

and chemicals carried out by third parties,

including fuel used by contractors.

 Category 6: Business travelling. For

SIPEF’s own operations, this includes air

travel of employees for business-related

activities.

 Category 9: Downstream transportation.

For SIPEF’s own operations, this includes

downstream emissions from shipping

activities and transportation from ports to

warehouses for banana operations in Côte

d’Ivoire.

121

SIPEF Integrated Annual Report 2024 Sustainability Statement

As part of SIPEF’s Scope 3 GHG inventory assess-

ment, the following categories have been excluded

from current reporting. These exclusions are based

on an evaluation of materiality, data availability,

operational control, and business relevance.

 Excluded due to immaterial impact on total

emissions: Category 5 - Waste generated in

operations, Category 7 - Employee commuting

and Category 15 – Investments.

 Excluded due to lack of visibility and control over

product use. These categories relate to emissions

from downstream activities, where SIPEF has no

visibility or inﬂuence over how sold intermediate

products are processed, used, or disposed of.

Given the wide range of potential applications,

each with dierent emissions profiles, accurate

estimation is currently unfeasible: Category 10

- Processing of sold products, Category 11- Use

of sold products and Category 12 - End-of-life

treatment of sold products.

 Excluded due to non-relevance to SIPEF’s

business activities: Category 8 - Upstream leased

assets, Category 13 - Downstream leased assets,

Category 14 – Franchises.

While SIPEF has no operational control or

inﬂuence over these downstream processes, it is

assumed that the Company's customer base is like-

wise engaging in eorts to reduce their own GHG

emissions, in line with broader industry and regu

latory trends. As part of the Group's commitment to

transparency and continual improvement, SIPEF

will periodically revisit the relevance of these

categories and assess opportunities to enhance

data availability and estimation methodologies in

future reporting cycles.

Scope 1 and Scope 2 emissions are calculated using

primary data. Scope 3 emissions are calculated

using a combination of primary data and spend-

based calculations as per the GHG Protocol.

Approximately 65% of total Scope 3 emissions are

estimated using the spend-based approach.

   

In 2024, most of SIPEF’s gross emissions were

Scope 1 (91%), followed by Scope 3 (8%), and then

Scope 2 (1%). Of the total emissions, 98% came

from oil palm operations in Indonesia and Papua

New Guinea. As oil palm operations are considered

SIPEF’s core business, this includes emissions from

head oces in Belgium and Singapore. The main

sources of emissions from the production of palm

oil were POME and land use change, including

cultivation in organic soils.

The remaining 2% of emissions came from banana

operations in Côte d’Ivoire. Scope 3 emissions

accounted for 57% of the emissions from banana

operations, followed by Scope 1 (25%), and then

Scope 2 (18%). The main sources of emissions from

production of bananas were purchased goods and

services, downstream transportation, electricity

use, and fertilisers.

The gross GHG emissions intensity for CPO is 3.24

tonnes of CO

equivalent (tCO

e) per tonne of crude

palm oil and 0.47 tonne tCO

e per tonne of bananas

produced.

122

The connection to the world of sustainable tropical agriculture

 

SIPEF actively manages 35 336 hectares of con-

servation and reserve areas within its production

and management areas. This includes the 12 656

hectares of conservation area in SIPEF Biodiversity

Indonesia (SBI) in the Bengkulu region managed

by the Group. These areas, some of which are des-

ignated as High Conservation Value and/or High

Carbon Stock (HCV-HCSA) sequester carbon while

also contributing to promoting biodiversity.

SIPEF accounts for removals stemming from car

bon sequestration based on the biological growth

of plants within its conservation land management

units, owned or managed by SIPEF according to a

consistent land management plan. The calculation

is based on how much carbon is sequestered per

hectare per year from the growth of these conser-

vation areas. This results in a total of 324 019 tCO

sequestered in 2024. This calculation methodology

is in line with the ISO 14064-1 standard and has

been externally audited.

GROSS GHG EMISSIONS 2024

SCOPE 1 GHG EMISSIONS tCO

e 1 090 257

Gross Scope 1 GHG emissions 1 090 257

Percentage of Scope 1 emissions from regulated emissions trading schemes 0

SCOPE 2 GHG EMISSIONS tCO

e 10 758

Gross location-based Scope 2 GHG emissions 10 758

Gross market-based Scope 2 GHG emissions 10 758

SCOPE 3 GHG EMISSIONS tCO

e 97 160

1: Purchased goods and services 58 889

2: Capital goods 18 884

3. Fuel and energy-related activities 6 822

4: Upstream transportation and distribution 5 857

6: Business travelling 1 876

9: Downstream transportation 4 832

TOTAL GHG EMISSIONS tCO

e 1 198 175

Total GHG emissions (location-based) 1 198 175

Total GHG emissions (market-based) 1 198 175

Biogenic emissions of CO

from the combustion or biodegradation of biomass (tCO

e) 529 807

SIPEF net revenue (KUSD)

443 810

TOTAL GROSS GHG EMISSIONS INTENSITY BASED ON NET REVENUE tCO

e/KUSD

Total gross GHG emissions intensity based on net revenue (location-based) 2.7

Total gross GHG emissions intensity based on net revenue (market-based) 2.7

TOTAL GROSS GHG EMISSIONS BY CROP tCO

e/T PRODUCT

Oil Palm (tCO

e/t CPO) 3.24

Bananas (tCO

e/t bananas) 0.47

:

(1) Please refer to note 7:      for the basis of calculation

123

SIPEF Integrated Annual Report 2024 Sustainability Statement

The GHG emissions associated with carbon remo-

val activities, such as fuel for transportation, are

included when calculating Scope 1 emissions.

There have been no reversals in 2024, and the

removal activity was not converted into carbon

credits nor sold on to other parties on voluntary

market.

Energy

SIPEF's energy consumption for its own operations

is mainly from non-renewable sources (78%), which

reﬂects the fossil fuels used in plantation opera-

tions. Renewable energy, primarily from biomass

combustion in palm oil processing, accounts for

22% of total energy use. SIPEF did not use nuclear

energy in 2024. Under the Regulation (EC) No

1893/2006 of the European Parliament and of the

Council, agriculture is identified as a high climate

impact sector. Accordingly, SIPEF reports its ener-

gy consumption intensity, which amounted to 0.33

MWh per thousand USD of revenue in 2024.

ENERGY CONSUMPTION AND MIX MWh 2024

A. NONRENEWABLE SOURCES

Fuel consumption from coal and coal products 0

Fuel consumption from crude oil and petroleum products 98 999

Fuel consumption from natural gas 647

Fuel consumption from other fossil fuel sources 1 876

Purchased electricity, heat, steam, and cooling from fossil fuel sources 13 172

TOTAL FOSSIL ENERGY CONSUMPTION 114 694

B. RENEWABLE SOURCES

Fuel consumption from renewable sources, including biomass 32 787

Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources 0

Consumption of self-generated non-fuel renewable energy 0

TOTAL RENEWABLE ENERGY CONSUMPTION 32 787

9. Consumption from nuclear sources 0

TOTAL ENERGY CONSUMPTION MWh 147 481

Share of fossil sources in total energy consumption (%) 78%

Share of renewable sources in total energy consumption (%) 22%

Share of consumption from nuclear sources in total energy consumption (%) 0%

SIPEF net revenue (KUSD)

(1)

443 810

Energy intensity based on net revenue (MWh/KUSD) 0.33

:

(1) Please refer to note 7:      for the basis of calculation

124 The connection to the world of sustainable tropical agriculture

Risks and opportunities

Climate change related risks and opportunities

have been identified as part of SIPEF’s double

materiality assessment. This incorporated the

outcomes from separate climate physical risk and

climate transition risk assessments carried out

during 2024, including a qualitative assessment

of the Group’s resilience to different potential

scenarios for a changing climate.

Climate physical risks

The detailed climate physical risk assessment

considered SIPEF's assets across three regions:

North, West and South Sumatra, Indonesia; West

New Britain, Papua New Guinea; and Lagunes,

Côte d’Ivoire. The report considers short-term (1-3

years), medium-term (4-10 years), and long-term

(11-25 years) impacts from 2024.

To address variability among earth system models,

the study utilised two well-established models that

are widely used in climate change reports and sev-

eral climate studies: GFDL-ESM4, developed in

the United States, and MRI-ESM2-0, developed

in Japan.

These models were utilised under two distinct

future climate change scenarios with high and low

levels of warming developed by the IPCC, namely

Shared Socioeconomic Pathways (SSP)1-2.6 and

SSP5-8.5. The chosen future climate scenarios

depict potential future trajectories of socio-eco-

nomic development GHG emissions, inﬂuencing

climate change.

SSP1-2.6 (sustainable development scenario)

envisions a path towards sustainable development,

aiming for zero emissions post-2050. It involves

substantial investments in education and health,

rapid economic growth, and functional institutions,

stabilising the temperature increase at approxi-

mately 1.8°C by the century's end. SSP1 reﬂects a

future that prioritises sustainable practices and

reduces reliance on fossil fuels.

Whereas SSP5-8.5 (high emission scenario) por-

trays an undesirable future where GHG emissions

double by 2050, driving rapid global economic

growth through fossil fuel exploitation and ener-

gy-intensive lifestyles. In this scenario, the average

global temperature is expected to rise by 4.4°C by

2100. SSP5 depicts an economy heavily reliant on

fossil fuels with limited sustainability focus.

The study quantified various climate-related risks

based on input from SIPEF expert growers working

in the field. These risks are categorised as follows:

 Temperature-related: plant heat stress, human

heat stress, heatwaves, or wildfires.

 Wind-related: changing wind patterns,

cyclones, or storms.

 Water-related: interannual variability

of precipitation, seasonal variability of

precipitation, water stress, sea level rise,

drought, or heavy precipitation.

 Soil-related: coastal erosion, soil degradation,

or soil erosion.

125

SIPEF Integrated Annual Report 2024 Sustainability Statement

The study predicted the likelihood that thresholds

for the above hazards would be exceeded under both

scenarios in the short-, medium-, and long-term.

The likelihoods were divided into low, medium,

and high with high being considered significant.

The assessment indicates that coastal ﬂooding is a

climate-related physical risk that may potentially

aect some operations in Papua New Guinea in the

near-term, while river ﬂooding is a risk in the medi-

um-term. In Côte d’Ivoire, heatwaves are predicted

to potentially aect all operations in the long term,

and river ﬂooding is a risk in the medium term.

Climate transition risks

A qualitative assessment of risks and opportunities

related to the climate transition was carried out

using an analysis of published reports that detail

how actions by governments, consumers, and the

oil palm sector could address the climate crisis.

This assessment examined how these factors could

impact SIPEF’s investments in oil palm and banana

operations.

Three climate transition scenarios were analysed

for their potential effects on SIPEF's business

in the short-term (0-3 years), medium-term (by

2030), and long-term (by 2050). These scenarios

were implemented using the open-source Model

of Agricultural Production and its Impact on the

Environment (MAgPIE) (Dietrich et al., 2019)

developed at the Potsdam Institute for Climate

Change (PIK).

The assessment considered three dierent levels of

ambition and their corresponding expected impact

on temperature increase:

 Historical ambition: assumes past practices

and laws continue, with temperatures rising

over 4°C by 2100, including a moratorium on

new palm oil concessions in designated forest

or organic soil areas in Indonesia.

 Modest ambition: assumes greater global action

and ambition but still inadequate, leading to

warming of around 3°C by 2100, with the

imposition of modest GHG emissions costs on

palm oil producers.

 Aggressive ambition: assumes the greatest

global eort, limiting warming to 1.5°C by 2100,

in line with the Paris Agreement. This includes

strong government action in Indonesia, such

as industry-wide NDPE restrictions, peatland

reclamation, and aggressive costs on GHG

emissions imposed.

SIPEF has considered climate-related risks in

the preparation of its financial statements, and

through the financial reporting process, no critical

climate-related assumptions were identified. As a

result, the climate scenarios used in the broader

climate risk assessment are not directly connected

to specific assumptions in the financial statements.

Key medium- and long-term risks and opportuni-

ties for SIPEF include land use restrictions, growth

constraints due to land availability, and carbon

pricing set by external parties, which must be con-

sidered in future business planning for oil palm

and banana operations. Principal opportunities

identified include increased demand for palm oil,

increased land valuation, and emerging carbon

markets to support aorestation, forest restoration,

and conservation, all of which would represent

significant potential financial gains to SIPEF.

126

The connection to the world of sustainable tropical agriculture

Both the physical and climate transition risk assess-

ments have highlighted important opportunities

for SIPEF to enhance its business planning for both

oil palm and banana operations. By conducting

these assessments, SIPEF is proactively strength-

ening its operations and building resilience across

diverse geographical locations and timeframes.

The valuable insights gained are driving strategic

decision-making and adaptation eorts, positioning

SIPEF to eectively navigate future challenges

while securing its assets and supply chain for long-

term success.

Locked-in emissions from assets

SIPEF has committed to no deforestation or new

plantings on peatland (NDPE) since 2015 in order to

reduce emissions from land use change. The Group

is also investing in GHG emissions reduction pro-

grammes, through a variety of strategies including

initiatives focused on promoting a circular economy

and protecting biodiversity and ecosystems. All

new oil palm projects are developed only after

integrated HCV-HCSA assessments have been

conducted, and areas identified for conservation

are monitored and maintained in accordance with

the management plan agreed with relevant stake-

holders. Best management practices will continue

to be implemented on existing cultivated areas and

any new developments will be following SIPEF’s

NDPE policy.

SIPEF acknowledges that GHG emissions associ-

ated with existing assets may present challenges in

meeting its long-term emission reduction targets.

However, by proactively addressing these potential

risks by implementing its policy on no deforestation

or new plantings on peatland NDPE and applying

best practices of managing these areas identified

within its operations, SIPEF is better positioned

to manage transition risks and align with evolving

regulatory and investor expectations.

Current and anticipated effects

In line with its double materiality assessment,

SIPEF has assessed the likelihood of the identified

impacts and risks occurring, together with their

potential financial impacts. SIPEF has assessed that

these impacts and risks are not expected to have a

material financial impact on the Group, including

its financial position, financial performance and

cash ﬂows. Nevertheless, the Group has implement-

ed eective measures to mitigate these risks.

127

SIPEF Integrated Annual Report 2024 Sustainability Statement

Resilience of strategy and business model

SIPEF’s climate risk assessments confirm the

resilience of agriculture rather than compromise

its feasibility, despite the fact that certain climate

challenges may occur. These findings highlight the

importance of integrating climate considerations

into SIPEF’s operations. With proactive adaptation

strategies in place, any challenges can eectively

be managed while maintaining robust production.

SIPEF’s commitment to reducing GHG emissions

and enhancing long-term climate resilience

through research and development on climate

mitigation and adaptation ensures the resilience

of its strategy and business model.

Policies and commitments

SIPEF has enacted various policies, initiatives, and

measures that aim to eectively anticipate risks

and opportunities related to climate change and

in doing so adequately plan for a possible future

impacted by climate change. Some key commit-

ments under SIPEF’s RPP related to climate change

include:

1. Climate change mitigation and energy:

continue and build on existing initiatives to

reduce GHG emissions; and design all new SIPEF

operations (plantations and processing facilities)

to minimise net GHG emissions.

2. Climate change adaptation: regularly assess

the risks and impacts linked with climate

change, to identify concrete solutions that will

enable the Group to manage and adapt to these

risks and impacts. Boost the resilience of future

crops, as a key step in strengthening the capacity

for adaptation to climate change.

To read more information on the development,

governance, and communication of the RPP, please

see ‘General information’.

Integration of sustainability-related performance in incentive schemes

For information on the climate-related consid-

erations related to remuneration of members of

administrative, management, and supervisory

bodies, please see ‘the 'Corporate Governance

Statement'.

(4) No specific reference is made to energy as it is understood to be part of the overall climate change mitigation topic.

128 The connection to the world of sustainable tropical agriculture

Actions, targets, and monitoring

Climate Change Mitigation and Energy

To address impacts identified in relation to climate

change, SIPEF is actively adopting innovation and

good management practices in cultivation and pro-

cessing to avoid or reduce GHG emissions. These

practices include the following:

Land use: SIPEF has completed HCV-HCSA

assessments to identify areas that can be devel-

oped within its own operations, while continuing

to protect and conserve high carbon stock areas

including organic soils identified within SIPEF’s

operations. The Group has also implemented fire

prevention and management measures in its oil

palm operations. In certain instances where land

that communities might otherwise develop is des-

ignated for conservation, SIPEF may mitigate the

impact by purchasing or leasing the property from

local landowners, ensuring they receive financial

benefits.

Methane reduction: Methane capture equipment

will be installed in all SIPEF palm oil mills by

2030. Looking ahead, SIPEF is also exploring the

possibility of harnessing biogas from the methane

capture facilities for the production of bio com-

pressed natural gas (bioCNG), with construction of

the Group’s first bio-CNG plant at Perlabian palm

oil mill in North Sumatra, Indonesia starting in

2025. Comprehensive safety protocols have been

implemented to safeguard the wellbeing of employ-

ees operating biogas plants.

Renewable energy: SIPEF generates renewable

energy from the by-products of milling operations

(fibres and shells) to power operations and employ-

ee compounds using steam turbines. Additionally,

at one of its mills, the Group uses methane capture

from POME and a biogas generator to produce

electricity.

In 2024, SIPEF initiated comprehensive emis-

sions reporting, including Scope 3 emissions, in

accordance with the CSRD. As this is its first year

of full data collection, direct comparisons with

previous years are not yet available, and GHG

emissions reductions for each category have not

been quantified.

Although some legacy projects under the Clean

Development Mechanism protocol generate carbon

credits, these are not incorporated into SIPEF's

oset or carbon costing framework. SIPEF does

not produce or purchase carbon credits, nor does it

implement an internal carbon pricing mechanism

as part of its climate change mitigation strategy.

For more information on target setting, please see

Annex 1.

Climate change adaptation

SIPEF proactively prepares for a range of weather

events, including heatwaves, river ﬂooding, and

coastal ﬂooding, to eectively mitigate risks to its

operations.

 Best management and water regulation

practices: SIPEF employs best management

practices and robust water regulation measures

to minimise the risks of waterlogging, ﬂooding,

and fire during drought conditions. In coastal

regions, SIPEF actively safeguards shorelines

to help prevent ﬂooding. Additionally, SIPEF

continuously enhances water management

and strives to reduce water usage intensity to

eectively address potential water stress across

its operations.

129

SIPEF Integrated Annual Report 2024 Sustainability Statement

 Enhancing crop yield and resilience: through

the work of Verdant Bioscience Pte Ltd, trials

are also being conducted to enhance crop

yield, resistance, and resilience in varying

environmental conditions. This includes

looking at the impacts of rainfall amount and

distribution, soil fertility, microbial diversity,

and moisture holding capacity, as well as

exploring ways to increase the potential of

regenerative agricultural landscapes.

SIPEF is committed to eectively managing the

material impacts and risks identified and has allo-

cated resources across various functions within the

organisation. No significant monetary amounts

of Capex and Opex were required to implement

the actions taken or planned. Please refer to ‘EU

Taxonomy disclosures’ for more information.

Targets and monitoring

SIPEF has been actively working to reduce its cli-

mate impact and adapt to identified climate risks,

and is further strengthening these eorts by setting

the following targets in alignment with its RPP

commitments:

 Installation of methane capture at all palm oil

mills by 2030.

 Site based monitoring of GHG emissions through

direct measurements at all the organic soil

estates by 2028.

 Protection of coastal shorelines and prevention

of flooding through mangrove planting and

coastal buer restoration of 41.5 hectares by

2027 in oil palm operations.

 Regenerative agriculture pilots to be started

with a model to scale up at five sites by 2026 in

oil palm operations.

 Installation of rainwater harvesting system at

all palm oil mills by 2030.

 Installation of water recycling basin at one

banana packing station by 2025.

SIPEF has previously set a target to reduce its Scope

1 and Scope 2 net GHG emissions by 28% by 2030

compared to base year 2021. In 2025, a process

will begin to align this target with the ESRS on a

gross emissions basis and with an updated baseline

calculation using the ISO 14061-1 as a framework

and aligning with the GHG Protocol methodology.

This updated target will be used in the development

of a climate change mitigation transition plan.

In the meantime, SIPEF actively monitors GHG

emissions across its operations. By tracking key

emission sources, the Group is able to assess pro-

gress, identify areas for improvement, and prepare

for future target-setting in line with evolving regu-

latory requirements and stakeholder expectations.

This demonstrates SIPEF’s ongoing commitment

to responsible management of climate-related risks

and impacts.

For more information, please see Annexes 1, 2 and 4.

Please refer to ‘EU Taxonomy disclosures’ for

disclosures on EU Taxonomy.

130

The connection to the world of sustainable tropical agriculture

E2: Pollution

SIPEF is committed to minimising its impact

on natural resources and the environment. The

Group’s Responsible Plantations Policy (RPP) and

Environmental Policy outline this commitment,

which is implemented through a variety of meas-

ures aimed at reducing waste and pollution, and

recycling operational by-products. In the plantation

operations, the Group has a focus on soil health and

integrated pest management (IPM) to keep use of

fertilisers and pesticides to a minimum, and buer

zones are used to protect waterways. For process-

ing, wastewater treatment facilities and regular

testing mitigate the chance of water pollution, while

careful management of biomass combustion in

palm oil mills ensure that air pollution stays within

the required limits. These measures ensure that

the Group meets the relevant local environmental

laws and regulations.

SUMMARY OF KEY CONTENTS

MATERIAL SUSTAIN

ABILITY MATTERS

APPLICABLE POLICIES TARGETS KEY UPDATES

• Pollution of air

• Pollution of

water

• Responsible

Plantations Policy

(RPP)

• Environmental

Policy

• Zero non-conformance

against local regulations

and industry regulations on

smoke density in palm oil

mills.

• Zero non-conformance

against local regulations

and industry regulations on

euent limits in palm oil

mills and packing stations.

• Pollution of air was identified as a new material

topic in the Group’s 2024 double materiality

assessment. All the Group’s palm oil mills are

in compliance with the set limits

• All palm oil mills in Indonesia met the 2024

targets for palm oil mill euent (POME)

discharge. In Papua New Guinea and Côte

d'Ivoire, SIPEF took corrective actions to

address cases where pollution in wastewater

temporarily exceeded limits, ensuring

compliance with legal and certification

standards

POLLUTION OF AIR AND WATER

The double materiality assessment carried out in

2024 identified air and water pollution as mate-

rial topics for the Group. The assessment process

involved consultation with internal operational

experts and was based on the best informa-

tion available, such as environmental impact

assessments and requirements from licensing

requirements. SIPEF conducts regular consul-

tations with aected communities as part of its

licensing and certification processes, to address

concerns about pollution.

131

SIPEF Integrated Annual Report 2024 Sustainability Statement

Impacts

    

 , -

The combustion of palm oil mill by-products, such

as fibres and shells, is a reliable source of renewable

energy for the Group’s operations. However, inad-

equate management can lead to excessive smoke

emissions and the release of particulate matter,

which may pose environmental and health risks.

   

  

 , -

In oil palm and banana plantation operations,

agrochemical usage on both Company and small-

holder estates can contribute to pollution in natural

watercourses and water bodies. Similarly, in palm

oil and banana processing, wastewater discharge

can lead to point-source pollution in these water

bodies. Banana packing stations use water to wash

the fruit before packing for shipment. Palm oil mill

euent (POME) is generated during the oil extrac-

tion process. POME contains suspended organic

matter that may aect water quality if released into

natural waterbodies without treatment.

Risks and opportunities

SIPEF’s double materiality assessment did not

identify any material risks or opportunities related

to pollution of air and water. As a result, there are

no risks or opportunities disclosed in this section,

nor reported current or anticipated eects on the

Group’s business model, value chain, strategy,

or decision-making. Additionally, no eects are

reported on the Company’s financial position,

performance, or cash ﬂows.

Operating and Capital expenditures

None of the actions reported in this section to

manage the impacts previously described required

significant Capex or Opex. Additionally, there were

no major incidents or spills in 2024, and conse-

quently, no related Capex or Opex was incurred

during the reporting period.

(1) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impacts are newly

identified and were not included in these exact forms in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

132 The connection to the world of sustainable tropical agriculture

Resilience of strategy and business model

The resilience of SIPEF’s strategy and business

model is demonstrated through proactive com-

pliance with local regulations and international

standards such as RSPO and Rainforest Alliance.

Continuous monitoring, eective implementation

of corrective actions, and ongoing improvement

initiatives ensure the Group can manage environ-

mental risks eectively, maintaining operational

continuity and stakeholder confidence.

Policies and commitments

SIPEF is guided by its Responsible Plantations

Policy (RPP) and Environmental Policy in

addressing and managing impacts related to air

pollution and water pollution. These policies set

the framework for a broad range of measures

related to minimising pollutants to the environ-

ment, maintaining riparian buer zones to protect

waterways, and meeting relevant environmental

legal requirements.

The Group is committed to allocating adequate

resources for environmental management. To

ensure this is the case, the Group identifies envi

ronmental impacts related to its operations and

ensures eective mitigation is implemented for

normal, abnormal, and emergency situations.

SIPEF’s Environmental Policy applies to all compa-

nies under SIPEF’s management. Implementation

of the Policy is overseen by the group head of sus-

tainability, supported by the heads of each regional

sustainability team, and other relevant depart-

ments at the Group’s operations. While stakeholder

input and socialisation during and following the

Policy's initial development in 2015 were not

documented, these aspects will be reviewed and

documented as part of SIPEF’s upcoming group-

wide policy revision.

Both the Environmental Policy and RPP are avail-

able to all stakeholders on SIPEF’s website. To view

more information on the development, governance,

and communication of the RPP, please see ‘General

information’.

Actions, targets, and monitoring

Pollution of air

Biomass combustion contributes to the genera-

tion of renewable energy at SIPEF’s palm oil mills.

Incomplete combustion and suboptimal oxidation

processes can lead to a higher load of particulates

being released. To mitigate this, SIPEF ensures that

biomass combustion is maintained at an optimal

level to minimise the release of particulates.

Engineering controls are implemented to minimise

smoke density and particulate emissions, includ-

ing the installation of cyclones in smokestacks.

These devices use centrifugal force to separate

solid particles from the gas stream, thereby reduc-

ing the amount of particulates released into the

atmosphere.

133

SIPEF Integrated Annual Report 2024 Sustainability Statement

SIPEF’s palm oil mills are consistently moni-

tored by environmental agencies to ensure they

meet legal requirements including Indonesia’s

Public Disclosure Programme for Environmental

Compliance (PROPER) and industry standards

including the Environmental Code of Practice

in Papua New Guinea. This is in addition to the

third-party sustainability certification audits

carried out annually.

SIPEF follows mandatory requirements in

Indonesia and Papua New Guinea and has set a

target for zero non-conformance with local and

industry regulations on smoke density across all

its palm oil mills to control the pollutants emitted.

In Indonesia, smoke opacity is measured using

monitors that assess the light absorption, reﬂec-

tion, or scattering caused by particulate matter

in a gas stream. The measurement, expressed as

a percentage (0%, clear, to 100%, opaque), must

remain below 30% during normal mill operations,

with external testing conducted twice a year.

In Papua New Guinea, smoke density is measured

using the Ringelmann Index, which compares

smoke density to standardised grey shades. The

Environmental Code of Practice requires smoke

density to remain below Ringelmann 2 (40%) for

no more than 20% of operating time and is reported

to the environmental authority. There are annual

inspections by the government authority to ensure

all relevant permit conditions are met. During

2024, all mills measured met the required limits.

More information on the target set and related data

is available in Annexes 1 and 2.

Pollution of water

 

Across all its operations, SIPEF applies organic

fertilisers such as compost and empty fruit bunch-

es (EFB) as alternatives to inorganic fertilisers

wherever possible. Integrated pest management

(IPM) techniques are applied to minimise the use

of pesticides. These measures help to mitigate water

pollution.

SIPEF’s best practices in agrochemical manage-

ment align with the requirements of both the

Roundtable on Sustainable Palm Oil (RSPO) and

Rainforest Alliance certification programmes.

These programmes emphasise the sustainable and

responsible use of pesticides and agrochemicals in

agricultural practices, prioritising minimal impact

on human health, the environment, and biodiver-

sity. Their core principles include the promotion of

IPM, reducing reliance on harmful chemicals, and

the prohibition or restriction of highly hazardous

pesticides, including those classified by the World

Health Organisation as Class 1A or 1B, or listed

under the Stockholm or Rotterdam Conventions.

SIPEF adheres to these standards, ensuring safer

and more sustainable practices throughout its

operations.

SIPEF’s banana plantations have buffer zones

composed of natural vegetation along natural

watercourses. These buer zones reduce runo

and spray drift, helping to mitigate the risk of water

pollution.

For banana and oil palm cultivation, fallow periods

with leguminous crops are used to help manage

soil health. These periods allow the soil to recover

organic matter and replenish nutrients, while

helping to control pests and diseases. This practice

reduces the need for agrochemicals and leads to

healthier plants, improved sustainability, and a

reduced environmental impact.

134

The connection to the world of sustainable tropical agriculture

SIPEF has not set a specific target to address the

potential material impact identified in relation to

plantation operations, but is consistently applying

best practices, as previously described.

     

SIPEF mitigates environmental impacts by ensur-

ing that all facilities have suitable wastewater

treatment facilities. SIPEF’s palm oil mills and

packing stations monitor the quality of wastewater

discharged through periodic wastewater analysis

conducted by external parties. Results are shared

with the relevant environmental authorities to

prove that wastewater discharged is within the

permissible legal limits. Some palm oil mills apply

POME to the land as an organic fertiliser. This

reduces the risk of water contamination and the

use of inorganic fertiliser.

SIPEF has set a target of zero non-conformance

against local legal requirements for wastewater

discharge in all of its operations. In all cases, cer-

tification requirements are applied when these are

stricter. The key parameters identified and moni-

tored for reporting are biological oxygen demand

(BOD), chemical oxygen demand (COD) and total

suspended solids (TSS), measured in milligrams

per litre. For palm oil mills, monthly sampling

was conducted, while for banana packing stations,

sampling is carried out twice a year.

In 2024, all palm oil mills in Indonesia met the

set targets. However, in Papua New Guinea, there

were six cases where the TSS level exceeded the

required limits, mainly due to high rainfall and

the volcanic eruption in November 2023. The high

rainfall washed volcanic ash into wastewater ponds,

increasing the TSS levels. SIPEF took immediate

action to desilt the ponds when discharge is not

required and continues to maintain a regular

desilting programme to ensure that the quality

of the discharged wastewater remains within the

legal limits.

In Côte d'Ivoire, banana packing stations exceeded

the limits for BOD in three cases, COD in two cases,

and TSS in one case. The levels were aected by

a temporary maintenance issue with the water

purification system. Corrective actions were imple-

mented to improve the maintenance schedule, to

ensure discharged wastewater remained within

legal limits.

2024

PALM OIL MILL/PACKING STATIONS

NUMBER OF CASES EXCEEDED LIMIT

BOD

EXCEEDED LIMITS

COD

EXCEEDED LIMITS

TSS

EXCEEDED LIMITS

Indonesia 0 0 0

Papua New Guinea 0 0 6

Côte d’ Ivoire 3 2 1

135

SIPEF Integrated Annual Report 2024 Sustainability Statement

E3: Water

Water is essential to agriculture, supporting crop

growth, processing, and overall productivity. As

agriculture continues to underpin global food

security, responsible water stewardship presents

a valuable opportunity to enhance resilience, pro-

tect natural resources, and support sustainable

development. By improving efficiency of water

use and safeguarding water quality, the sector can

play a leading role in shaping a more sustainable

future. SIPEF recognises the vital importance of

responsible water management and is committed

to minimising its impact on local ecosystems and

communities.

SUMMARY OF KEY CONTENTS

MATERIAL SUSTAIN

ABILITY MATTERS

APPLICABLE POLICIES TARGETS KEY UPDATES

• Water

consumption

• Water

withdrawals

• Water discharges

• Responsible

Plantations Policy

(RPP)

• Environmental

Policy

• Annual average water

usage intensity per tonne of

fresh fruit bunches (FFB)

processed in palm oil mills

meets eciency targets set

for each location.

• Related targets linked to the

climate change chapter:

• Rainwater harvesting

installation at all mills by

2030.

• Water recycling basin at

one packing station by

2025.

• 2024 marks the first disclosure of SIPEF’s

water consumption aligned with the ESRS,

complementing the existing calculation

methodology

• Water usage intensity targets have been

updated based on the dominant soil types

at each location, covering all palm oil mills

in Papua New Guinea and the Dendymarker

Indah Lestari palm oil mill in Musi Rawas

• The recently commissioned Agro Muara Rupit

palm oil mill has been incorporated into the

water consumption monitoring framework

WATER CONSUMPTION, WITHDRAWALS

AND DISCHARGES

SIPEF’s operations are not located in areas that

WWF’s Water Risk Filter identifies as high risk.

However, given the importance of water resources

to its operations, SIPEF’s double materiality

assessment identified water consumption, including

withdrawal and discharge, as material.

136

The connection to the world of sustainable tropical agriculture

Impacts

 

 , -

Oil palm is a rainfed crop, requiring no irriga-

tion, which naturally reduces pressure on local

water resources. Water is primarily used in palm

oil milling processes, with withdrawals sourced

from ground water and rivers. Banana cultivation

involves greater direct water usage, in both irriga-

tion at plantations and packing stations.

To view information on SIPEF's engagement with

local communities to map key natural resources,

including water, see the dependencies assessment

in 'E4: Biodiversity and ecosystems'.

Risks and opportunities

SIPEF’s double materiality assessment did not

identify any material risks or opportunities

related to water. As a result, there are no risks or

opportunities disclosed in this section, nor report-

ed current or anticipated eects on the Group’s

business model, value chain, strategy, or deci-

sion-making. Additionally, no eects are reported

on the Company’s financial position, performance,

or cash ﬂows.

Operating and capital expenditures

None of the actions reported in this section to

manage the impacts previously described required

significant Capex or Opex.

Resilience of strategy and business model

The resilience of SIPEF’s strategy and business

model is demonstrated by the Group’s proactive

compliance with local regulations and international

standards such as the Roundtable on Sustainable

Palm Oil (RSPO) and the Rainforest Alliance.

Continuous monitoring, eective implementation

of corrective actions, and ongoing improvement

initiatives ensure the Group can manage environ-

mental risks eectively, maintaining operational

continuity and stakeholder confidence.

(1) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

137

SIPEF Integrated Annual Report 2024 Sustainability Statement

Policies and commitments

SIPEF’s approach to water management is ground-

ed in its Environmental Policy and Responsible

Plantations Policy (RPP). The Environmental

Policy commits the Group to preventing pollution

and improving environmental performance by

using resources eciently, including water. It also

emphasises compliance with relevant environmen-

tal regulations and the continuous improvement of

environmental practices.

The RPP further reinforces these principles with

specific commitments to improve water manage-

ment and reduce water usage intensity across oper

ations. It also supports water-related goals through

sustainable land preparation and management,

minimising the use of agrichemicals, reducing

waste and pollution, and maintaining riparian

buer zones to protect waterways.

These commitments guide SIPEF’s actions to

ensure that water resources are used eciently

and responsibly, in support of both operational

sustainability and the protection of surrounding

ecosystems.

Further information regarding SIPEF’s eorts to

prevent water pollution is detailed in 'E2: Pollution'.

To view more information on the development,

governance, and communication of the RPP, please

see ‘General information’.

Actions, targets, and monitoring

The Group’s approach to water management pri-

oritises the preservation of water availability and

quality, not only to support its operations but also

to safeguard the needs of local communities and

ecosystems. Across all plantations and processing

sites, water usage is closely monitored, with contin-

uous eorts to improve eciency and reduce water

usage intensity. Eorts continue to optimise usage

by integrating eciency measures in both field and

processing operations.

Within the Group’s operations, banana cultivation

remains the most water-intensive activity, mainly

due a reliance on irrigation, whereas oil palm is

predominantly a rainfed crop. In Côte d'Ivoire,

irrigation water is sourced from a combination of

rainwater, treated discharge from banana packing

stations stored in on-site dams, and adjacent rivers.

For the packing stations, water is extracted from

wells in accordance with food safety regulations.

After use, 100% of water from the packing process

is either recycled through decantation tanks and

redirected to dams for future irrigation or safely

discharged into rivers.

For SIPEF’s palm oil mills, water is sourced from

rivers, water bores, or other on-site water storage

facilities. Some mills recycle treated Palm Oil Mill

Euent (POME) for land application within the

plantations, while others discharge the treated

euent into rivers or other water bodies in com-

pliance with regulatory standards.

Water consumption

In 2024, the SIPEF Group's total water consump-

tion reached 11 237 154 m across its palm oil mills,

banana plantations, and packing stations, equiva-

lent to 27 341 m per million EUR of net revenue.

Of this total, approximately 92% was attributed to

banana cultivation and processing activities, while

the remaining 8% was related to palm oil process-

ing. Total water consumption was calculated by

subtracting the volume of water discharged from

palm oil mills and packing stations from the total

water withdrawn across palm oil mills, banana

plantations, and packing stations.

138

The connection to the world of sustainable tropical agriculture

In Côte d'Ivoire, accurately quantifying water

uptake by banana plants is challenging as dis-

charge of excess irrigation water is not measur-

able; therefore, it is assumed that 100% of the

water withdrawn for irrigation is fully consumed

within the plantations, resulting in no discharge

from these areas. All other reported volumes were

directly measured using ﬂowmeters installed at the

respective operational sites.

For palm oil processing, a total of 504 545 m of

water was recycled and reused through the land

application of treated POME. This is based on direct

measurement using ﬂowmeters at palm oil mills.

Additionally, 566 972 m of water was stored, based

on the annual capacity of on-site water storage

facilities.

For banana operations, a total of 46 524 m of

water was recycled and reused across the packing

stations and for irrigation within the plantations.

The recycled volume used in the packing stations

was estimated based on the capacity of the recycling

tanks and the number of operational days. The vol-

ume redirected for irrigation corresponds to 100%

of the treated discharge from the relevant packing

stations and is equivalent to the water withdrawal

volume, as measured directly using ﬂowmeters. No

on-site water storage is required for these activities.

Water usage intensity by crop

SIPEF monitors and reports crop-specific water

usage intensity for both banana and palm oil pro-

duction based on water withdrawal.

For palm oil, water usage intensity targets are

measured per tonne of FFB processed at each mill.

These targets are designed to ensure that water e-

ciency is continuously monitored and maintained.

To reﬂect varying environmental conditions and

operational contexts, SIPEF has set water usage

intensity targets for its palm oil mills based on the

predominant soil type at each site. This tailored

approach ensures that water eciency targets are

both practical and environmentally appropriate.

The targets disclosed are voluntary in nature and

are not required by any existing legislation.

Water usage intensity targets will be set for banana

operations once an accurate baseline has been

assessed, particularly in relation to water uptake

within the plantations.

In 2024, the Agro Muara Rupit mill in Indonesia

recorded a water usage intensity of 1.24 m per

tonne of FFB, exceeding its target of ≤1.0 m per

tonne. This was primarily due to the mill commenc-

ing operations in June 2024, and further calibration

is needed before its water usage stabilises within the

target range. All other mills in Indonesia remained

WATER MANAGEMENT 2024

PALM OIL PROCESSING M



1. Water consumption 914 966

2. Water recycled and re-used 504 545

3. Water stored 566 972

BANANA PLANTATIONS AND PACKING STATIONS M



1. Water consumption 10 322 188

2. Water recycled and re-used 46 524

3. Water stored 0

SIPEF GROUP M



Water consumption 11 237 154

Water intensity/net revenue (m

/million EUR) 27 341

139

SIPEF Integrated Annual Report 2024 Sustainability Statement

WATER USAGE INTENSITY TARGET 2024 2023

INDONESIA M

/TONNE FFB PROCESSED

Agro Muara Rupit palm oil mill ≤1 1.24 -

Bukit Maradja palm oil mill ≤1 0.90 0.89

Bunga Tanjung palm oil mill ≤1 0.81 0.50

Dendymarker Indah Lestari palm oil mill ≤1.5 0.95 0.99

Mukomuko palm oil mill ≤1 0.81 0.84

Perlabian palm oil mill ≤1 0.77 0.92

Umbul Mas Wisesa palm oil mill ≤1.5 1.35 1.35

PAPUA NEW GUINEA M

/TONNE FFB PROCESSED

Barema palm oil mill ≤1.3 1.06 0.94

Hargy palm oil mill ≤1.3 1.00 0.90

Navo palm oil mill ≤1.3 1.23 1.56

CÔTE D I'VOIRE M

/TONNE BANANA PRODUCTION

Estates and packing stations No target 212.85 178.12

within target, demonstrating either improved or

consistent eciency. In Papua New Guinea, all mills

operated within their respective water intensity

targets, with values ranging from 1.00 to 1.23 m

per tonne of FFB processed. Most showed slight

improvements compared to 2023, notably the Navo

mill, which reduced its water intensity from 1.56 to

1.23 m per tonne.

In Côte d’Ivoire, water usage intensity for banana

production increased by around 19% in 2024, reach-

ing 212.85 m per tonne compared to 178.12 m per

tonne in 2023. This increase is primarily attributed

to reduced rainfall, drier weather conditions lead-

ing to higher evaporation, and the continuation

of the new planting programme underway at the

Akoudié site.

Additional water-related targets have been set,

including the installation of rainwater harvesting

systems at all palm oil mills and the implementation

of a water recycling basin at one packing station.

These initiatives aim to improve water eciency

and reduce reliance on raw water sources across

the Group’s operations. While the targets set are

not mandatory regulatory requirements, they are

aligned with industry best practices and reﬂect

SIPEF’s commitment to continuous improvement

and responsible water stewardship.

Through the implementation of targeted water

management programmes, the Group continues

to monitor, assess, and optimise water use across

its plantations and processing operations. By

setting site-specific intensity targets, investing in

rainwater harvesting and recycling initiatives, and

aligning practices with industry best standards,

SIPEF aims to minimise its reliance on freshwater

resources while supporting long-term environmen

tal and operational resilience.

140

The connection to the world of sustainable tropical agriculture

E4: Biodiversity and ecosystems

SIPEF operates in regions rich with tropical

forests. This gives the Group a unique position of

responsibility for mitigating biodiversity loss and

significantly reducing climate-related impacts by

decoupling deforestation from agricultural pro-

duction. The Group's commitment to protecting

biodiversity is clearly articulated in its Responsible

Plantations Policy (RPP), which includes a strict

no deforestation and no new development on peat

(NDP) commitment that has been implemented

Group-wide since 2015. SIPEF identifies and avoids

converting high conservation value habitats during

new developments and carefully manages existing

plantations to minimise land degradation, inva-

sive weed proliferation, and negative impacts on

watersheds. These targeted measures help safe-

guard critical ecosystems in the landscapes where

the Group operates, while ensuring compliance

with applicable environmental standards and

regulations.

SUMMARY OF KEY CONTENTS

MATERIAL SUSTAIN

ABILITY MATTERS

APPLICABLE POLICIES TARGETS KEY UPDATES

• Land-use change

• Land

degradation

• Species

population size

• Species global

extinction risk

• Responsible

Plantations Policy

(RPP)

• Environmental

Policy

• Zero incidents of tree cover loss

in own concessions under the

Company’s management control

and supplier areas.

• Zero incidents of fire in own

concessions under the Company’s

management control and supplier

areas.

• By 2030, establish one landscape

level approach to nature positive oil

palm cultivation and community

engagement in Papua New Guinea.

• Restore 256 hectares of degraded

land within the Sipef Biodiversity

Indonesia (SBI) conservation area

by 2024, from baseline year 2021.

• Restore 1 123 hectares of degraded

land within SBI by 2033, from

baseline year 2024.

• No incidents of deforestation were

recorded in SIPEF’s own concessions

under the Company’s management

control and supplier areas in 2024

• As of December 2024, SIPEF manages

15 320 hectares of designated

conservation areas across its

operations in Indonesia, Papua New

Guinea, and Côte d’Ivoire

• SIPEF set a 2030 target to establish

a landscape-level example of nature-

positive oil palm cultivation and

community engagement in Papua New

Guinea

• SIPEF updated its restoration target for

the SBI programme to 1 123 hectares of

degraded land by 2033, building on the

2024 goal of 256 hectares

141

SIPEF Integrated Annual Report 2024 Sustainability Statement

Impacts assessment

The double materiality assessment carried out in

2024 identified land-use change,

land degradation,

species population size, and species global extinc-

tion risk as material sustainability matters for the

Group from the impact materiality perspective.

The assessment was conducted in consultation

with internal operational experts and informed

by the best available data, including a Group-wide

analysis of biodiversity impacts, dependencies,

risks, and opportunities. This analysis incorporated

the results of integrated High Conservation Value

and High Carbon Stock Approach (HCV-HCSA)

assessments, as well as social and environmental

impact assessments conducted across SIPEF’s

operations and supply base to meet licensing and

certification obligations.

The analyses confirm that SIPEF’s operational sites

are not located in or near biodiversity-sensitive

areas. As such, no direct negative impacts on such

areas have been identified. However, the Group has

proactively designated conservation areas based on

HCV-HCSA assessments. These areas are protected

under SIPEF’s NDP commitment and are managed

as part of the Group’s broader eorts to conserve

ecosystems with high biodiversity or carbon value.

Impacts

SIPEF has identified three potential impacts as

material, which are described in this section. These

were determined with reference to historical and

industry-wide developments in palm oil production

in Indonesia and Papua New Guinea, providing a

broader context for understanding the ecological

pressures linked to the sector.

For SIPEF’s banana operations managed by

Plantations J. Eglin SA, land acquisitions have only

involved previously cultivated plantation areas

under historically established lease agreements.

-    

 , -

Expanding agricultural activities without proper

conservation and land-use planning measures leads

to deforestation, habitat loss, and fragmentation,

directly and negatively impacting biodiversity and

ecosystems. These changes contribute to climate

change, water pollution, and soil erosion, and can

also result in the loss of traditional hunting grounds

and sacred sites for local and indigenous commu-

nities. In some areas, they may increase the risk of

landslides and reduce land productivity.

This potential impact is relevant to both SIPEF’s

own operations and the smallholders in its supply

base.

   

- 

 , -

Historical land conversion has contributed to loss

of habitat for numerous important species, with

resulting pressures on population sizes and local

biodiversity. Much of this habitat change occurred

in the past, and many of the remaining ecosystems

(1) Freshwater-use change and sea-use change are not applicable to SIPEF operations.

(2) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impacts are newly

identified and were not included in these exact forms in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

142 The connection to the world of sustainable tropical agriculture

are now fragmented, isolated, and increasingly

vulnerable. These areas continue to face pressure

from population growth and rising demand for land

and natural resources. While the full ecological

consequences remain uncertain, there is a possibil-

ity that further degradation could lead to cascading

biodiversity eects. For this reason, the impact is

considered potential.

   

 , -

The loss and fragmentation of natural habitats can

have long-term consequences for keystone species,

which play a vital role in ecosystem stability.

Risks, dependencies, and opportunities analysis

SIPEF has taken a structured and proactive

approach to identifying and managing biodiversity

and ecosystem-related risks, dependencies, and

opportunities across its operations and those of its

smallholders. This has been primarily achieved by

conducting HCV-HCSA assessments at each estate.

Carried out by a third party, these assessments

follow internationally recognised, peer-reviewed

methodologies that are widely accepted as robust

frameworks for identifying and protecting HCV

areas in industrial agricultural landscapes.

In 2024, SIPEF engaged an external expert to con

solidate the results of its HCV-HCSA assessments

into a comprehensive Group-wide analysis. A core

component of this was the threat and dependency

analysis, which mapped potential impacts of land

use on ecosystem services, evaluating both direct

eects of SIPEF’s operations and pressures from

surrounding land uses and industries.

The analysis considered how key ecosystem ser-

vices, such as water supply, soil health, pollination,

and cultural values, are aected, and how these

changes may impact local communities who

depend on them. This analysis was informed by

participatory mapping conducted during consul-

tations with aected communities as part of the

HCV-HCSA assessment process. This mapping

identified the ecosystem services most important

to communities, including the specific locations of

resources they rely upon.

Another key component of the analysis was a

qualitative review of transition and physical risks,

referencing frameworks such as the Taskforce on

Nature-related Financial Disclosures (TNFD):

 Transition risks assessed include policy and

legal changes, market developments, technology

shifts, and reputational risks.

 Physical risks assessed include drought, pest

and disease outbreaks, fires, and land and soil

degradation.

The assessment was based on a set of forward-look-

ing assumptions, including the potential introduc-

tion of additional taris or environmental levies,

a shift in customer preferences towards more

sustainable and traceable supply chains, and the

continued market demand for deforestation-free

commodities. These were considered across

143

SIPEF Integrated Annual Report 2024 Sustainability Statement

SIPEF’s strategic business planning horizon (ten

years) as well as a full oil palm crop cycle (20years).

The results of the Group-wide assessment, includ-

ing identified dependencies, risks, and opportuni-

ties, provide the context for assessing the resilience

of SIPEF’s business. While no immediate mate-

rial transition, physical, or systemic risks were

identified, the assessment highlighted long-term

operational dependencies on ecosystem services

such as pollination, water regulation, and soil

fertility. These ecosystem services are essential

to the resilience of SIPEF’s operations, as well as

the broader agricultural sector.

An overview of SIPEF’s business model and strategy

can be found in the Company Report.

Risks and opportunities

The following risks and opportunities

were identi-

fied by the broader business risks and opportunities

assessment, and under the financial materiality

lens of the 2024 double materiality assessment.

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Land-use change

(deforestation)

Palm oil is a low-cost, vegetable-based oil

that, in the absence of viable large-scale

substitutes, continues to meet growing

global demand for aordable food. However,

its potential and actual association with

deforestation and biodiversity loss presents a

material risk to SIPEF, as rising expectations

for deforestation-free supply chains among

regulators, buyers, and financial institutions

may aect the Group.

With limited scope for new land develop

ments, companies will need to increase pro-

ductivity on existing plantations by adopting

improved technologies. Advancements in the

development of F

hybrid varieties, nutrition

and soil management, and pest control will

be key to achieving higher yields per hectare.

This transition will require increased

investment, including continued develop

ment of seed technology, but oers long-term

gains in eciency and output.

SIPEF’s approach:

SIPEF addresses deforestation risks by implementing its NDP commitment, robust land use

assessments, monitoring across its operations and supply chain, and targeted conservation

practices. The Group addresses both the risk and opportunity by focusing on yield improvements

on existing plantations through enhanced seed technology, soil management, and pest control.

This strategy supports sustainable production without expanding into new land.

(3) The material risk and opportunity were newly identified in 2024 and were not included in SIPEF’s 2023 business risk assessment in their current

form. Their identification reﬂects the alignment of the assessment with the material sustainability matters listed in Appendix A of ESRS 1.

144 The connection to the world of sustainable tropical agriculture

Current and anticipated effects

In line with its double materiality assessment,

SIPEF has assessed the likelihood of the identified

impacts and risks occurring, together with their

potential financial impacts. SIPEF has assessed that

these impacts and risks are not expected to have a

material financial impact on the Group, including

its financial position, financial performance, and

cash ﬂows. Nevertheless, the Group has implement-

ed eective measures to mitigate these risks.

Resilience of strategy and business model

SIPEF’s NDP and broader environmental steward-

ship commitments are embedded within its strategy

and business model, providing a robust framework

to manage sustainable land-use impacts, risks, and

opportunities, particularly in oil palm operations.

This is operationalised through comprehensive

HCV-HCSA assessments, stakeholder-informed

conservation planning, and targeted site-specific

biodiversity management practices.

The qualitative assessment described previously

identified no immediate material biodiversity-re-

lated physical, transition, or systemic risks to

SIPEF’s business. However, potential future risks

and impacts require continuous monitoring, with

relevant mitigation measures integrated into

the Group’s business plan. The assessment also

highlighted long-term operational dependencies

on ecosystem services, such as pollination, water

regulation, and soil fertility, which are critical

for maintaining business resilience. Addressing

these dependencies aligns with SIPEF’s ongoing

implementation of sustainable land-use and best

management practices, as described throughout

the environmental information section.

Policies and commitments

SIPEF’s biodiversity and ecosystem-related com-

mitments are anchored in two cornerstone policies:

the RPP and RPuP. They define the strategic direc-

tion and minimum standards for responsible land

use, biodiversity conservation, and sustainable

sourcing across all operations and supplier rela-

tionships. Together, these policies comprehensively

address the material impacts, dependencies, and

risks outlined in this section.

The RPP applies to all plantations and operations

managed by SIPEF, regardless of ownership share,

including those located in or near protected or

biodiversity-sensitive areas. It sets out SIPEF’s

Group-wide no deforestation commitment, eective

since 31 December 2015, which prohibits new devel-

opments in HCV areas, HCS forests, peatlands, and

fragile or marginal soils. The policy also arms

SIPEF’s commitment to restoring ecosystems

aected by historical non-compliant land con-

version, in line with the RSPO Remediation and

Compensation Procedure (RaCP).

In addition, the RPP outlines SIPEF’s commitment

to responsible land-use planning based on integrat-

ed HCV-HCSA assessments and environmental

and social impact evaluations; the protection of

ecological and social HCV areas across its opera-

tions; respect for customary land rights through

robust Free, Prior and Informed Consent (FPIC)

145

SIPEF Integrated Annual Report 2024 Sustainability Statement

processes; the implementation of best manage-

ment practices to optimise productivity while

minimising environmental impacts; and a strict

prohibition on hunting and other activities harmful

to biodiversity.

The RPuP extends these principles to all smallhold-

er suppliers. It requires legal proof of land rights,

recognition of legitimate community claims, adher-

ence to NDP commitments, and a ban on the use of

fire for land clearing. Smallholders must also align

with SIPEF’s environmental and social policies and

demonstrate potential for achieving RSPO certifi-

cation in line with the Group’s time-bound plan.

Together, the RPP and RPuP form the foundation

of SIPEF’s biodiversity governance framework,

supporting its commitment to RSPO certification,

full traceability, and responsible sourcing across

its supply chain. In its non-oil palm operations,

the Group adheres to recognised certification pro-

grammes such as Rainforest Alliance, Fairtrade,

and GLOBALG.A.P., ensuring consistent sustain-

ability standards are applied across its operations.

To view more information on the development,

governance, and communication of the RPP and

RPuP, please see ‘General information’.

Actions, targets, and monitoring

SIPEF takes a proactive approach to managing bio-

diversity and ecosystem-related impacts, adopting

a range of measures to address deforestation and

promote biodiversity and habitat conservation. The

Company implements a strict NDP policy across all

operations, supported by integrated HCV-HCSA

assessments to guide responsible land-use plan-

ning. It also applies best management practices,

including sustainable land preparation, soil conser-

vation measures, and integrated pest management

(IPM) to reduce chemical inputs.

These actions have not required significant Capex

or Opex during the financial year.

Sustainable land use

Prior to any new land development, SIPEF conducts

integrated HCV-HCSA assessments, supported

by social and environmental impact assessments

(SEIAs). These are performed by independent,

licensed experts using internationally recognised

methodologies that combine spatial analysis with

field verification to identify areas of high biodiver-

sity, ecosystem service value, cultural significance,

and high carbon stock. As part of this process, the

Company also upholds customary land rights and

applies FPIC to ensure inclusive and sustainable

development.

In previously developed organic soil areas, SIPEF

applies best management practices in line with

RSPO peatland management guidance and local

regulations. This includes RSPO-compliant drain-

ability assessments to evaluate long-term land use

suitability and prevent further degradation.

146

The connection to the world of sustainable tropical agriculture

Community engagement and nature-based solutions

SIPEF engages local and indigenous communities

in its HCV-HCSA and environmental assessments,

ensuring traditional knowledge informs land-use

planning and conservation strategies. This inclusive

approach ensures that traditional knowledge and

cultural practices inform conservation strategies

and that community-identified areas are incorpo-

rated into land-use planning through consultation

and shared decision-making.

The HCV-HCSA approach also promotes nature-

based solutions such as ecosystem restoration,

habitat protection, and the enhancement of key

ecosystem services like carbon sequestration

and water regulation. These eorts contribute to

building more resilient landscapes that can adapt

to environmental change. SIPEF does not use bio-

diversity osets to manage the impacts identified.

Conservation areas within

SIPEF’s concessions

As of 2024, SIPEF manages 15 320 hectares of con-

servation areas across its operations in Indonesia,

Papua New Guinea, and Côte d'Ivoire, as identi-

fied through integrated HCV-HCSA assessments.

These areas encompass identified HCV and HCS

areas within the Group’s concessions, and exclude

the area managed under the SIPEF Biodiversity

Indonesia (SBI) programme. In Indonesia, a net

reduction of 259 hectares was recorded, primarily

due to boundary realignments of land titles in oil

palm estates and former tea operations.

SIPEF continues to strengthen the monitoring

and management of HCV areas and HCS forests

across its concessions. Dedicated monitoring teams

implement HCV-HCS management plans on the

ground and receive ongoing training in conserva-

tion practices. They also engage employees and local

communities, raising awareness of biodiversity

and the importance of protecting HCV and HCS

areas. This approach promotes shared environ-

mental responsibility and supports the long-term

protection of critical ecosystems.

Following an additional internal GIS-led assess-

ment carried out in 2024, SIPEF can confirm it

has not identified any owned, leased, or managed

sites within its operations in Papua New Guinea,

Indonesia, and Côte d’Ivoire that are located in or

near

biodiversity-sensitive areas, such as protected

areas

or key biodiversity areas (KBAs).

CONSERVATION AREAS WITHIN SIPEF

CONCESSIONS BY COUNTRY HECTARES 2024 2023

CONSERVATION AREAS HCV / HCS

Indonesia 9 478 9 737

Papua New Guinea 5 626 5 626

Côte d’Ivoire 216 216

TOTAL 15 320 15 577

(4) Near is defined as within a 500-meter radius.

(5) Based on internal assessment using World Database on Protected Areas and UNESCO World Heritage Sites data.

147

SIPEF Integrated Annual Report 2024 Sustainability Statement

Monitoring of SIPEF’s NDP commitment

Since 2021, SIPEF has implemented a structured

system to monitor compliance with its NDP policy

across its supply base. In 2022, the approach was

enhanced through the engagement of an independ-

ent third-party specialist to oversee monitoring

activities across SIPEF’s own operations and those

of its suppliers in Indonesia and Papua New Guinea.

The system focuses on detecting and verifying land-

use changes within and around concession areas.

This monitoring system integrates historical and

near real-time satellite imagery to detect land cover

changes. The third-party partner issues quarterly

reports detailing any incidents that may contra-

vene the NDP. Each alert undergoes a verification

process to ensure accuracy and guide appropriate

follow-up actions. In 2024, the system covered more

than 157791 hectares: 84% within SIPEF's own

concessions and areas under the SBI programme,

and 16% within supplier areas.

  

SIPEF has set a target to achieve zero deforestation

across both its directly managed concessions and

supplier areas.

The target is in line in line with the Company’s

NDP commitment and reﬂects and supports sus-

tainable land-use practices while helping to prevent

land degradation. Importantly, the NDP extends

beyond SIPEF’s own operations, requiring active

engagement with upstream suppliers to uphold the

commitment and implement best practices.

According to the 2024 monitoring results, no inci-

dents of deforestation or peatland conversion were

recorded within SIPEF’s own estates or among its

smallholders.

Read more about the target and progress made in

Annex 1.

AREAS MONITORED

IN HECTARES 2024

SIPEF OWN CONCESSION SUPPLIERS’ AREAS TOTAL AREAS MONITORED

Total 133 305 24 486 157 791

Historical assessment of NDP compliance

In addition to regular tree cover loss monitoring, a

historical assessment of NDP compliance was con-

ducted by Earthqualizer, evaluating SIPEF’s oper-

ations against industry-wide NDP benchmarks for

the period from 31 December 2015 to 31 December

2023. The review covered land within all of SIPEF’s

estates and smallholder areas. One instance of

liability was identified: 24 hectares of historical

deforestation in Papua New Guinea. SIPEF is pro-

actively engaging in the remediation process for

this area and applying appropriate mechanisms,

reinforcing its commitment to responsible land

stewardship and long-term sustainability.

148

The connection to the world of sustainable tropical agriculture

Fire prevention and management

SIPEF strictly prohibits the use of fire for land

development across all its estates and supplier oper-

ations. Fire prevention is a key priority to protect

employees, local communities, and Company assets.

The Group has established fire risk monitoring

systems in Indonesia and Papua New Guinea,

where fire risks are most prevalent. Each estate

is equipped with trained firefighting teams, water

tank-equipped vehicles, and high-pressure pumps.

Eective water management in organic soils is also

a critical component of SIPEF’s fire prevention

strategy, helping to reduce the risk of hotspots in

sensitive areas.

  

SIPEF has set a target of ensuring there are no

fires on either its directly managed concessions

or supplier areas. It reﬂects the Company’s NDP

commitment and contributes to sustainable land-

use practices and the prevention of land degrada-

tion. Crucially, the NDP extends beyond SIPEF’s

direct operations, requiring active engagement with

upstream suppliers to ensure that they also uphold

NDP commitments and implement best practices.

FIRE MONITORING WITHIN OWN CONCESSIONS

2024 WITHIN OWN CONCESSIONS 2023 WITHIN OWN CONCESSIONS

COUNTRY /

PROVINCE

HOTSPOTS VERIFIED

WITHIN COMPANY’S

CONTROL

AREAS IMPACTED

HECTARES

HOTSPOTS VERIFIED

WITHIN COMPANY’S

CONTROL

AREAS IMPACTED

HECTARES

INDONESIA 6 10.7 39 160.5

North Sumatra 0 0 0 0

Bengkulu 0 0 0 0

South Sumatra 6 10.7 39 160.5

PAPUA NEW GUINEA

1 0.01

0 0

TOTAL 7 10.71 39 160.5

149

SIPEF Integrated Annual Report 2024 Sustainability Statement

In 2024, fire incidents within SIPEF’s own con-

cessions declined significantly, largely due to

milder climatic conditions and a less severe dry

season compared to 2023. The total aected area

dropped sharply from 160.5 hectares in 2023 to just

10.71 hectares in 2024. Most 2024 hotspots were

recorded in South Sumatra (10.7 hectares), with a

minor incident in Papua New Guinea (0.01 hectares)

caused by a house fire. In Indonesia, the majority

of fire events were triggered by fires originating

on adjacent community lands that subsequently

spread into SIPEF-managed areas.

In supplier areas, the number of verified fire

incidents also fell, from 18 in 2023 to 2 in 2024.

However, the total area aected increased from

2.2 to 11 hectares, suggesting greater intensity or

spread per incident. Both incidents occurred within

smallholder-managed areas, with the largest fire

reported in Indonesia. The aected areas are in

the process of rehabilitation.

To support its commitment to sustainable land use,

SIPEF continues to engage with suppliers through

awareness campaigns and capacity-building initi-

atives, reinforcing best practices in fire prevention

and responsible land management.

Sustainable landscape approach

and biodiversity conservation

Beyond site-level measures, SIPEF is advancing

an integrated landscape approach, with a strong

emphasis on restoring and enhancing biodiversity

across its production landscapes. In addition to

protecting HCV and HCS areas identified within

its operations, SIPEF has established dedicated

initiatives like the SBI programme, which supports

forest restoration and community-led stewardship.

Integrated land-use planning in Papua New Guinea

SIPEF is committed to promoting regenerative

landscapes that combine conservation, restoration,

and sustainable land use, guided by respect for land

and community rights and strengthened through

stakeholder collaboration. In line with this vision,

SIPEF is advancing integrated land-use planning

in Papua New Guinea to balance conservation and

responsible development. Based on a detailed HCV-

HCSA assessment completed in 2023, the Group

has identified areas for long-term conservation and

others suitable for sustainable development near

existing smallholder plantations.

As part of this strategy, SIPEF has set a 2024 target

to establish at least one landscape-level example of

nature-positive oil palm cultivation and community

engagement in Papua New Guinea by 2030.

150

The connection to the world of sustainable tropical agriculture

SIPEF Biodiversity Indonesia (SBI)

The SBI programme is a 12 672-hectare ecosystem

restoration initiative located next to Kerinci Seblat

National Park. It focuses on biodiversity protection

and monitoring, including the presence of critically

endangered species such as the Sumatran tiger.

The project also supports active reforestation and

agroforestry.

As of 2024, 286.44 hectares have been restored, and

agroforestry programmes have exceeded engage-

ment targets by supporting 376 farmers to protect

and manage conservation areas. In collaboration

with the Zoological Society of London (ZSL) and

SINTAS, a local NGO in Indonesia, SBI also aims

to strengthen science-based conservation and

monitoring eorts.

SBI BIODIVERSITY MONITORING TARGET BY 2024 2024 2023

Degraded area restored (hectares) 256 286.44 224

Number of agroforestry growers engaged 369 376 376

In line with SIPEF’s broader commitments to

protect and monitor biodiversity, SIPEF has set

a target to restore a cumulative 1 123 hectares of

degraded land within SBI by 2033.

Application of ecological

thresholds in target setting

SIPEF has not yet applied ecological thresholds

or allocated environmental impacts in setting its

conservation and biodiversity targets. Current goals

are internally defined and focus on implementing

sustainable land-use management, maintaining

conservation areas, and advancing biodiversity

projects. These targets are not currently informed

by or aligned with the Kunming-Montreal Global

Biodiversity Framework, the EU Biodiversity

Strategy for 2030, or national biodiversity policies.

Biodiversity osets have also not been used in the

target setting process.

As relevant methodologies and frameworks con-

tinue to evolve, SIPEF will consider aligning with

them where appropriate to support the further

development of its approach to sustainable land

use, landscape management, and biodiversity

conservation.

Relevance of mitigation hierarchy level of the

actions above:

 Targets for zero tree cover loss and zero fire

incidents: Avoidance

 Targets for SBI and Landscape approach:

Avoidance, Restoration, and Rehabilitation

Read more about the targets and progress made

in Annex 1.

151

SIPEF Integrated Annual Report 2024 Sustainability Statement

EU Taxonomy disclosures

SIX ENVIRONMENTAL OBJECTIVES OF THE TAXONOMY

REGULATION

 Climate change mitigation



Climate change adaptation



The sustainable use and protection of water

and marine resources



The transition to a circular economy



Pollution prevention and control



The protection and restoration of

biodiversity and ecosystems

For more information: https://ec.europa.

eu/info/business-economy-euro/bank

ing-and-finance/sustainable-finance/

eu-taxonomy-sustainable-

activities_en

The EU Taxonomy Regulation (EU 2020/852) is a

classification system for environmentally sustaina-

ble economic activities. Developed by the European

Commission, it aims to facilitate sustainable

investment and support the implementation of the

European Green Deal. The Taxonomy Regulation

is a key component of the European Commission's

action plan to redirect capital ﬂows towards sus-

tainable projects and activities. It represents an

important step towards achieving carbon neutrality

by 2050 in line with EU goals, as it establishes clear

definitions and criteria for what is considered to

be sustainable.

Article 8(2) of the EU Taxonomy Regulation

requires non-financial undertakings to disclose

Key Performance Indicators (KPIs) that reﬂect

the proportion of their turnover derived from

environmentally sustainable economic activities,

as well as the proportion of capital (Capex) and

operating expenditure (Opex) linked to assets or

processes associated with such activities, relating

to six environmental objectives:

SIPEF’s eligibility and alignment

As a non-financial parent undertaking, SIPEF has

assessed the Group’s activities as an agro-industrial

entity for the 2024 reporting period, evaluating

them against all Taxonomy-eligible economic

activities outlined in the EU Taxonomy Regulation

and its Delegated Acts

Based on the eligibility

screening utilising NACE codes and a review of

an economic activity description, SIPEF's main

business activities, tropical agriculture (A1.2)

and manufacture of palm oil (C10.4), are consid-

ered taxonomy-non-eligible economic activities.

Throughout the process, SIPEF has taken into

account the following considerations:

 If a NACE-code is broader than the activity

description, the activity description prevails

over the scope of the NACE code.

 If an economic activity doesn’t have a NACE

code but does meet the activity description, it

can qualify as an eligible activity.

 If the NACE code of an economic activity is

not mentioned in the Climate Delegated Act,

but the economic activity corresponds to the

description of the activity, it can qualify as an

eligible activity.

(1) Regulation (EU) 2020/852 as supplemented with Commission Delegated Regulation (EU) 2021/2139, Commission Delegated Regulation (EU)

2021/2178, Commission Delegated Regulation (EU) 2022/1214, Commission Delegated Regulation (EU) 2023/2485 and Commission Delegated

Regulation (EU) 2023/2486.

152 The connection to the world of sustainable tropical agriculture

A limited portion of the reported capital expendi-

tures, operating expenditures, and revenues relates

to planned improvements intended to meet EU

Taxonomy criteria within the prescribed time-

frame (type (c) Capex). These expenditures are

part of SIPEF's transition strategy and represent

climate mitigation investments in biogas plants

(D35.11) and biodiversity conservation (A2). For

2024, the total type (c) Capex for the construction

of the biogas plants amounted to KUSD 2 513, with

KUSD 86 of the Group’s total turnover linked to the

sale of electricity from the biogas plants. The total

type (c) Opex related to the biodiversity programme

amounts to KUSD 180. Given the immateriality of

these amounts relative to total Capex, Opex, and

turnover they do not materially affect SIPEF's

overall Taxonomy alignment KPIs. Nevertheless,

they are included to demonstrate the Group's

commitment to progressive alignment with the

Taxonomy framework.

SIPEF remains committed to reducing greenhouse

gas emissions and managing climate-related risks

and impacts. An overview of the Group’s existing

initiatives with respect to climate change mitiga-

tion and adaptation has been provided in section

E1: Climate change of this report. The complete

Taxonomy tables are available in the Annex 3,

which is an integral part of the Integrated Annual

Report.

PROPORTION OF TAXONOMYELIGIBLE AND TAXONOMYNONELIGIBLE ECONOMIC ACTIVITIES IN TOTAL TURNOVER,

CAPEX, AND OPEX

TOTAL

KUSD

PROPORTION OF TAXONOMY

ELIGIBLE ECONOMIC ACTIVITIES %

PROPORTION OF TAXONOMYNON

ELIGIBLE ECONOMIC ACTIVITIES %

Turnover 443 810 0% 100%

Capital expenditure (Capex) 86 858 2.9% 97.1%

Operating expenditure

(Opex)

48 450 0% 100%

153

SIPEF Integrated Annual Report 2024 Sustainability Statement

NUCLEAR ENERGYRELATED ACTIVITIES

The undertaking carries out, funds, or has exposures to research, development,

demonstration, and deployment of innovative electricity generation facilities that

produce energy from nuclear processes with minimal waste from the fuel cycle.

The undertaking carries out, funds, or has exposures to construction and safe opera

tion of new nuclear installations to produce electricity or process heat, including for

the purposes of district heating or industrial processes such as hydrogen production,

as well as their safety upgrades, using best available technologies.

The undertaking carries out, funds, or has exposures to safe operation of existing

nuclear installations that produce electricity or process heat, including for the

purposes of district heating or industrial processes such as hydrogen production from

nuclear energy, as well as their safety upgrades.

FOSSIL GASRELATED ACTIVITIES

The undertaking carries out, funds, or has exposures to construction or operation of

electricity generation facilities that produce electricity using fossil gaseous fuels.

The undertaking carries out, funds, or has exposures to construction, refurbishment,

and operation of combined heat/cool and power generation facilities using fossil

gaseous fuels.

The undertaking carries out, funds, or has exposures to construction, refurbishment,

and operation of heat generation facilities that produce heat/cool using fossil gaseous

fuels.

Minimum safeguards

SIPEF confirms that it respects the minimum safe-

guards, as elaborated further in the Environmental,

Social, and Governance information sections of this

Sustainability Statement.

Nuclear and fossil gas-related activities

SIPEF has evaluated its operations across the Group

and declares that it does not engage in, fund, or

have exposure to any nuclear or fossil gas-related

activities as defined in the following tables. Please

see SIPEF’s statements on nuclear energy-related

activities and fossil-gas related activities in the

template 1 as introduced by the Complementary

Delegated Act below. Since SIPEF is not per-

forming activities related to nuclear energy and

fossil gas, it does not include templates 2-5 of the

Complementary Delegated Act.

154

The connection to the world of sustainable tropical agriculture

155

SIPEF Integrated Annual Report 2024 Sustainability Statement

Social

information

Millions of people worldwide rely on agriculture

for their livelihoods, while the sector sustains a

growing global population of eight billion. Despite

driving significant socio-economic development,

agriculture has also been linked to human rights

and land-related impacts, particularly in tropical

commodity-producing regions.

SIPEF’s Balanced Growth Strategy emphasises

that sustainable growth depends on being a respon-

sible employer and good community partner. It

also requires responsible practices in sourcing

and production, including fair labour conditions,

respect for human rights, and the delivery of safe,

traceable products to consumers.

Focus area and

sustainability goals

   

 Respecting human, labour, and community

rights, in accordance with local laws and

international frameworks

 Foster long-term relationships, create shared

value, and support the well-being and resilience

of local communities

   

 Support smallholders in their journey towards

improved, sustainable, and certified production

 Support smallholders to earn higher incomes

and have better access to international markets

 Screen and monitor suppliers to ensure

compliance with SIPEF policies

 Full compliance with leading sustainability

standards and certifications

 Maintain 100% traceability for all products

 Implement the highest food safety and quality

standards

156 The connection to the world of sustainable tropical agriculture

S1: Own workforce

As an employer of thousands of people, SIPEF

recognises its responsibility to uphold human and

labour rights across its workforce. The Group is

committed to ensuring fair working conditions in

accordance with local laws and international stand-

ards. Beyond compliance, this commitment extends

to enhancing the well-being of its employees across

operations in Indonesia, Papua New Guinea, and

Côte d'Ivoire. By providing stable employment and

access to healthcare, education, and infrastructure,

SIPEF underscores its support for the agricultural

community and its contribution to sustainable

development.

SUMMARY OF KEY CONTENTS

MATERIAL

SUSTAINABILITY MATTERS

APPLICABLE

POLICIES

TARGETS KEY

UPDATES

• Secure employment

• Child labour

• Forced labour

• Adequate wages

• Freedom of association

• Collective bargaining

• Working time

• Work-life balance

• Health and safety

• Training and skills

development

• Gender equality and

equal pay for work of

equal value

• Diversity

• Measures against

violence and

harassment in the

workplace

• Responsible

Plantations Policy

(RPP)

• Human Rights Policy

• Child Labour Policy

• Forced or Tracked

Labour Policy

• Freedom of

Association Policy

• Occupational Health

and Safety Policy

• Equal Employment

Opportunity Policy

• Protection of

Reproductive Rights

Policy

• Sexual Harassment

Policy

• Submit ten early childhood

schools for registration with

local authorities in Papua

New Guinea by 2025.

• No work-related fatalities

• Reduce LTIFR by 8.5%

in Indonesia, Papua New

Guinea, and Côte d’Ivoire by

2027.

• In 2024, SIPEF employed 24 204

people across six countries, with 68%

on permanent contracts

• Women made up 25% of SIPEF’s

total workforce in 2024, with eorts

underway to expand their participation

in technical and field roles

• LTIFR improved in Papua New Guinea

and Indonesia, but increased slightly in

Cote d'Ivoire

• Over 50 female employees were

trained and employed in ablation and

harvesting roles in North Sumatra and

Bengkulu, roles traditionally held by

men

• 2024 marked SIPEF’s first year of

reporting on gender pay gap, annual

remuneration ratio, and employee

turnover, strengthening transparency

on workforce data

157

SIPEF Integrated Annual Report 2024 Sustainability Statement

SIPEF’S WORKFORCE

In 2024, SIPEF employed a total of 24 204 people,

including both permanent and temporary employ-

ees, across Indonesia, Papua New Guinea, Côte

d'Ivoire, Belgium, Singapore, and Luxembourg.

The majority of the workforce is based in Indonesia

(70%), followed by Papua New Guinea (19%) and

Côte d'Ivoire (11%), while the remainder work in

Belgium, Luxembourg, and Singapore. Women

make up 25% of SIPEF’s total workforce.

Scope of own workforce covered in this section

This section covers all employees in SIPEF’s own

workforce who can be materially impacted by the

Company and its operations. It does not cover

non-employees.

Employees include those on permanent and tem-

porary contracts.

 Permanent: Hired on a contract for an indefinite

period

 Temporary: Employed on a fixed-term contract

that ends upon completion of a specified

duration, task, or event

Non-employees, including contractors, are refer-

enced where applicable in policies or monitoring

procedures but are not included in the scope of

the data. Where material impacts dier between

temporary and permanent employees, this is noted

alongside the impact disclosures.

EMPLOYEES OVERVIEW

25% 75%

24% 31%

Employees by country

(1)

% women in oil palm and banana operationsEmployees by gender

(1)

16 856

Indonesia

23 Belgium

17 Singapore

4 668

Papua

New Guinea

2 640

Côte

d'Ivoire

24 204

Total employees

(1)

(1) Total employee count is based on headcount and includes employees from the Cibuni Tea Estate.

Male: 18 066

Female: 6 138

158 The connection to the world of sustainable tropical agriculture

RESPECTING HUMAN RIGHTS

SIPEF is committed to treating all employees fairly,

protecting their rights, and upholding labour stand-

ards across its operations. The Group complies with

all applicable local laws and aligns with internation-

al frameworks, including the International Labour

Organization’s (ILO) Declaration on Fundamental

Principles and Rights at Work and the United

Nations’ Universal Declaration of Human Rights.

This commitment is reflected in SIPEF’s

Responsible Plantations Policy (RPP) and Human

Rights Policy, as well as in dedicated policies on

child labour, forced or tracked labour, freedom

of association, occupational health and safety,

equal employment opportunity, protection of

reproductive rights, and the prevention of sexual

harassment.

A key element of SIPEF’s RPP is the commitment

to achieving 100% certification across its palm

and banana operations, ensuring compliance with

labour standards, occupational health and safety

requirements, and fair employment practices. The

RSPO Principles and Criteria (P&C) reinforce

SIPEF’s dedication to ethical labour practices by

encompassing the protection of human rights, fair

labour conditions, and the provision of grievance

mechanisms. Additionally, SIPEF complies with

Indonesian Sustainable Palm Oil (ISPO) standards

and, for its banana operations, holds Rainforest

Alliance and Fairtrade certifications, and under-

goes SMETA audits.

To further safeguard human rights, SIPEF pro-

vides a grievance mechanism accessible to all

stakeholders, including employees, their families,

and non-employees.

Read more about SIPEF’s grievance mechanism and

approach to human rights remediation on page 194.

Policies dedicated to respecting human rights in own workforce

SIPEF’s Human Rights Policy and all other afore-

mentioned workforce-related policies apply to all

companies under SIPEF’s management. Depending

on the policy, implementation is overseen by the

human resources heads in each country, or the

regional sustainability team leads, who report

to the executive committee in each country of

operation.

To ensure compliance with local regulations, RSPO

standards for palm oil operations, and Rainforest

Alliance, Fairtrade and SMETA for banana

operations, these policies have been transposed

into country-level policies. While stakeholder

input during their initial development in 2015 was

not documented, they will be reviewed as part of

SIPEF’s upcoming group-wide policy revision,

which will incorporate stakeholder feedback.

Group-level policies are publicly accessible on

SIPEF’s website, while locally adapted versions

are displayed on notice boards at operational sites

and communicated to employees during training

and awareness sessions.

159

SIPEF Integrated Annual Report 2024 Sustainability Statement

RESILIENCE OF STRATEGY AND BUSINESS MODEL

SIPEF’s business model is built on ensuring a stable,

well-supported workforce while maintaining 100%

RSPO certification across its operations and supply

base. Compliance with RSPO labour standards,

occupational health and safety requirements,

and fair employment policies strengthen both

workforce resilience and long-term operational

stability. Investments in training, health and safety,

and labour rights protections contribute to pro-

ductivity, worker retention, and risk mitigation

across SIPEF’s operations in Indonesia, Papua New

Guinea, and Côte d'Ivoire.

Workforce impacts and management approach

Actions, along with policies and relevant commit-

ments related to managing material workforce

impacts, are disclosed alongside the sustainabil-

ity matters presented in this section. In general,

actions taken or planned to manage the impacts

described in this section are based on the results

of internal and external audits, risk assessments,

and grievance mechanisms to ensure appropriate

responses. Dedicated financial and human resourc-

es are allocated to managing these issues.

While this section addresses key material impacts

on the Group’s own workforce, SIPEF’s double

materiality assessment did not identify any

material risks or opportunities. As a result, there

are no risks or opportunities disclosed in this sec-

tion, nor reported current or anticipated eects on

the Group’s business model, value chain, strategy,

or decision-making. Additionally, no eects are

reported on the Company’s financial position,

performance, or cash ﬂows.

Furthermore, no material negative impacts on

workers were identified in relation to transi-

tion plans for reducing environmental impacts.

Consequently, no specific mitigation measures were

required to address such impacts.

160 The connection to the world of sustainable tropical agriculture

SECURE EMPLOYMENT

SIPEF recognises that stable employment is essen-

tial not only for its own workforce but also for the

well-being of the communities surrounding its

operations, particularly in regions where access

to reliable job opportunities is limited. By providing

long-term employment and ensuring benefits and

protections for its temporary employees, SIPEF can

contribute to economic resilience and sustainable

development in the rural or remote areas where

it operates in Indonesia, Papua New Guinea, and

Côte d'Ivoire.

As a driving force behind the company’s activities,

SIPEF’s workforce is also integral to its operations

and success, with their stability and well-being

closely tied to the company’s long-term strategy

and sustainable business model.

Impacts

    

 , -

SIPEF provides employment to over 24 000 employ-

ees in countries and areas with higher unemploy-

ment and poverty rates. Employees hired under

permanent contracts make up a significant portion

of SIPEF’s own workforce. Permanent employees

have more stable and secure incomes, increasing

their and their families’ socio-economic well-being.

This also provides more resilience against external

shocks.

Policies and commitments

The RPP aligns with SIPEF’s Balanced Growth

Strategy, committing the company to responsible

plantation management, employment creation,

and local development. The policy outlines specific

commitments to respecting employees’ rights and

human rights, including adherence to interna-

tional labour standards and the implementation

of fair and ethical employment practices across

all operations.

A key pillar of the RPP is achieving 100% RSPO

certification, which sets clear requirements for

fair wages, safe working conditions, non-dis-

crimination, grievance mechanisms, freedom of

association, and collective bargaining rights, while

also mandating employment benefits that promote

workforce well-being and job security. Similarly,

Rainforest Alliance and Fairtrade certification

uphold internationally recognised standards for

ethical employment practices, fair treatment

of workers, and responsible labour conditions.

Together, these certification programmes ensure

that SIPEF’s palm oil and banana operations meet

rigorous social and labour standards.

To view more information on the development,

governance, and communication of the RPP and

RPuP, please see ‘General information’.

(1) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

161

SIPEF Integrated Annual Report 2024 Sustainability Statement

Employee contract types

SIPEF employs 68% of its workforce under con-

tracts of indeterminate duration (permanent

contracts) and 32% under temporary contracts

across its oil palm and banana operations.

The structures of temporary employment vary

across dierent countries of operation in accord-

ance with the local labour context. However, in

most cases, temporary employees are seasonal

workers in plantations, supporting short-term

activities and peak season demands.

Permanent

contract

68%

Temporary

contract

32%

EMPLOYEES BY CONTRACT TYPE

EMPLOYEES BY CONTRACT TYPE BY GENDER 2024

TYPE FEMALE MALE TOTAL

Permanent 2 872 13 696 16 568

Temporary 3 266 4 370 7 636

TOTAL 6 138 18 066 24 204

162 The connection to the world of sustainable tropical agriculture

Employee turnover

In 2024, a total of 5 162 employees left the organisa-

tion, resulting in an overall employee turnover rate

of 21%, including both permanent and temporary

employees. In Indonesia, the majority of employees

who left did so voluntarily. Since Indonesia has the

largest workforce, this makes voluntary departures

the leading reason at the Group level.

Actions, targets and monitoring

SIPEF ensures that permanent employees across

its operations receive a comprehensive benefits

package, which typically includes social security,

pension, housing, medical coverage, and allowances

for transport, childcare, and education. The specific

benefits vary based on local regulations, company

policies in each country, and the employee’s work

location, whether at an administrative oce or an

operational site.

The Group also implements measures to provide

fair working conditions and benefits for temporary

employees. Where feasible, SIPEF also strives to

transition temporary employees to permanent

positions.

To ensure fair employment conditions and worker

protections, SIPEF complies with RSPO, Rainforest

Alliance, Fairtrade, and SMETA, all of which

set requirements for employment conditions,

written contracts, and fair treatment of workers.

Compliance is verified by internal and external

audits conducted throughout the year.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

Indonesia

At PT Tolan Tiga Indonesia, temporary employees

account for 38% of the workforce. They are hired

under either Perjanjian Kerja Waktu Tertentu

(PKWT), a fixed-term employment contract for sea-

sonal work, projects, or jobs with a defined duration,

or Buruh Harian Lepas (BHL), a daily work agree-

ment for non-permanent or seasonal roles within

the Company. All temporary contracts are covered

under Indonesia’s social security system, Badan

Penyelenggara Jaminan Sosial (BPJS), which pro-

vides health and employment insurance in line

with national regulations. PKWT employees also

receive compensation upon contract completion.

PKWT contracts can be renewed for up to five years

before requiring conversion to permanent status,

which grants indefinite-term employment. SIPEF

is actively working to transition high-performing

temporary employees, particularly in plantations

nearing full development, into permanent roles.

This eort aligns with RSPO requirements and

streamlines workforce administration.

Papua New Guinea

At Hargy Oil Palms Ltd (HOPL), only 1% of

employees are on temporary contracts, primarily

for plantation tasks such as fertiliser application.

Temporary employment ﬂuctuates throughout the

year based on operational needs, with all tempo-

rary workers locally hired. With the exception of

superannuation and housing, temporary employees

receive the same benefits as permanent employees,

including medical coverage and transport support.

163

SIPEF Integrated Annual Report 2024 Sustainability Statement

In accordance with national regulations, any tem-

porary worker who exceeds three months of con-

tinuous employment must be oered a permanent

position. While multiple short-term contracts can

be issued, HOPL aims to limit this to a maximum

of two renewals.

Côte d'Ivoire

At Plantations J. Eglin SA (Plantations J. Eglin),

temporary contracts accounted for 47% of the

total workforce in 2024, marking a significant

increase from 2023. This rise was driven by new

developments in Akoudié and Lumen, where a

higher number of workers were needed for a fixed

term. Temporary employees receive the same

benefits as permanent employees during their

employment, including medical coverage, compa-

ny-funded private health insurance covering 80%

of healthcare costs, and social security through the

national social security system, “Caisse Nationale

de Prévoyance Sociale” (CNPS). The CNPS provides

benefits such as family allowances, retirement pen-

sions, maternity and paternity leave, and coverage

for work-related accidents and disability.

Temporary contracts are typically issued for three

months, with a maximum extension of up to two

years. Eorts to transition temporary employees

to permanent contracts are ongoing.

Targets and monitoring

SIPEF has not set a specific target to enhance

the actual material impact identified in relation

to secure employment for its own workforce.

However, it has set a target to achieve 100% RSPO

certification for SIPEF’s own oil palm estates by

the financial year 2030. SIPEF’s banana operations

are already fully certified.

Read more about this broader target and progress

made in Annex 1 and in ‘Sustainability Standards

and Certification’ in the Company Report.

164 The connection to the world of sustainable tropical agriculture

NO EXPLOITATION

SIPEF has a zero-tolerance policy for all forms

of exploitation, including forced labour, human

tracking, and child labour, across its operations

and supply chain. The Group enforces strict labour

policies and due diligence measures to prevent

exploitative practices, including among temporary

employees and subcontracted labour, where risks

may be higher. Through compliance monitoring,

industry engagement, and responsible employment

practices, SIPEF safeguards the rights, safety, and

dignity of all workers.

Impacts

Child labour

, , 

    

 , -

Child labour can significantly impact children's

physical and psychological health, exposing them

to hazardous work that impedes their education and

leads to lower academic and career achievement.

This can perpetuate a cycle of poverty, limiting eco-

nomic opportunities and contributing to broader

social and economic challenges.

Forced labour

  

 -, ,

    

 , -

Forced labour is a severe human rights violation

that compromises the well-being, safety, freedom,

and dignity of workers. It has been widely recog-

nised that forced labour can be a risk in the palm

oil industry, although the risk tends to be lower in

countries like Indonesia and Papua New Guinea

than other locations like Malaysia. Temporary

employees contracted by third parties are more

exposed to these issues, if due diligence is not in

place.

Given the labour-intensive nature of agriculture

and the palm oil industry, SIPEF recognises that

certain contexts in the countries where it operates

may present heightened risks of child labour or

forced labour, particularly where social and eco-

nomic factors can increase workforce vulnerability.

To mitigate these risks, SIPEF implements moni-

toring eorts and ensures compliance with national

and international labour standards to prevent

exploitation and uphold fair working conditions.

(2) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impacts are newly

identified and were not included in these exact forms in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

165

SIPEF Integrated Annual Report 2024 Sustainability Statement

Policies and commitments

SIPEF is committed to no child labour and forced

labour across its operations and supply chain, in

line with international human rights frameworks

and national regulations. These commitments are

embedded in SIPEF’s RPP, Child Labour Policy, and

Forced or Tracked Labour Policy.

A key pillar of the RPP is achieving 100% RSPO

certification for palm oil operations, and Rainforest

Alliance, Fairtrade, and GLOBALG.A.P. certifi-

cations for banana operations. These standards

explicitly prohibit child and forced labour.

The Group's Child Labour Policy ensures that no

individual under 18 is employed, mandating age

verification during hiring, aligning with national

laws and international agreements such as the ILO

Convention No. 182 on the Worst Forms of Child

Labour (1999), enforcing immediate corrective

actions if violations are identified, and applying

disciplinary measures against policy breaches.

SIPEF’s Forced or Tracked Labour Policy prohib-

its all forms of slavery, forced, or compulsory labour.

Employees involved in such practices face discipli-

nary actions, including dismissal and potential legal

consequences. Business partners must comply with

this policy, with non-compliance leading to contract

termination and possible legal action.

These policies apply to all companies under the

management of SIPEF.

To view more information on the development,

governance, and communication of the RPP, please

see ‘General information’.

Actions, targets, and monitoring

SIPEF enforces strict labour policies, conducts

training and audits, mandates age verification,

and applies due diligence for its own workforce

and subcontracted workers to prevent child and

forced labour risks. These actions are carried out

throughout the year to ensure continuous compli-

ance. In case of violations, immediate corrective

actions, such as contract termination and discipli-

nary measures, are applied, while support is also

provided for aected workers.

The eectiveness of these actions is tracked by

annual external audits, including RSPO certifica-

tion audits for palm oil operations, and Rainforest

Alliance, Fairtrade, and SMETA audits for banana

operations. Additionally, SIPEF’s grievance

mechanism serves as a key tool for monitoring

and addressing compliance issues. The absence

of reported cases from both audit results and the

grievance mechanism demonstrates the eective-

ness of these measures.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

166

The connection to the world of sustainable tropical agriculture

Targets and monitoring

SIPEF has not set specific targets, as it adopts a

zero-incidence approach to child and forced labour.

Its focus remains on strict monitoring and enforce-

ment, as previously described.

Corrective action protocols are also in place in

case incidents are detected. When this occurs,

immediate remedial actions are taken, including:

 Immediate contract termination of wrongfully

employed children

 Disciplinary action against company employees

who wilfully breach the policy

 Termination of agreements with contractors

for non-compliance with SIPEF’s forced labour

policy

SIPEF has set a broader target to achieve 100%

RSPO certification for the Group’s own oil palm

estates by the financial year 2030, reinforcing

adherence to labour standards, including child

labour prevention. SIPEF’s banana operations are

fully certified.

Read more about this broader target and progress

made in Annex 1 and in ‘Sustainability Standards

and Certification’ in the Company Report.

167

SIPEF Integrated Annual Report 2024 Sustainability Statement

ADEQUATE WAGES

Agriculture is a primary source of employment in

many rural areas, making fair wages and decent

working conditions essential for sustaining live-

lihoods and economic security. SIPEF recognises

that adequate compensation is key to the well-being

of employees and their families. Wages that meet

basic financial needs provide access to food,

housing, healthcare, and education, ultimately

improving quality of life.

Impacts

  

    

 , -

In the rural or remote areas where SIPEF operates,

access to stable employment and reliable incomes

may be limited. When wages are inadequate, peo-

ple may struggle to meet their financial needs and

maintain an acceptable standard of living. This

also aects their ability to support their families,

including expenses for children's education, cloth-

ing, food, medical bills, and housing.

SIPEF’s employees are a driving force behind its

success, so the Group is committed to ensuring

wages align with legal requirements and industry

standards, supporting financial stability and sus-

tainable livelihoods. The Group also provides access

to essential services to further support employees

and their families.

Policies and commitments

The RPP outlines SIPEF’s commitment to compli-

ance with RSPO, Rainforest Alliance, and Fairtrade

standards on living wage.

To support industry-wide progress, the RSPO has

established a Living Wage Task Force to develop

decent living wage benchmarks for palm oil-pro-

ducing countries, particularly in regions where no

existing benchmarks are available from the Global

Living Wage Coalition (GLWC). Rainforest Alliance

standards require ongoing wage assessments and

structured improvements, while Fairtrade certifi-

cation mandates fair wages, collective bargaining

rights, and a commitment to closing living wage

gaps where applicable.

Additionally, the RPP outlines SIPEF’s com-

mitment to implementing the Free and Fair

Labour in Palm Oil Production: Principles and

Implementation Guidance, developed by Humanity

United in collaboration with industry stakehold-

ers, which require that a living wage be paid to all

workers based on living costs, commodity prices,

and worker consultations.

To view more information on the development,

governance and communication of the RPP, please

see ‘General information’.

(3) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

168 The connection to the world of sustainable tropical agriculture

Actions, targets, and monitoring

SIPEF meets all local regulations for minimum

wages and complies with RSPO, Rainforest

Alliance, and Fairtrade standards on living wage

requirements and calculations. These standards

follow the GLWC definition and use salary matrices

to identify gaps where no approved benchmark

exists. Related implementation guidance supports

the development of improvement plans to ensure

that existing gaps are closed.

Annual third-party audits are conducted to verify

compliance with the RSPO standard for its palm oil

operations and Rainforest Alliance and Fairtrade

standards for its banana business. As part of its

internal control processes, SIPEF utilises a docu-

mented salary grading system, which is reviewed

annually. SIPEF also audits third party labour

suppliers to assess compliance with minimum wage

laws and relevant regulations.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

EMPLOYEE HOUSING, CLINICS, SCHOOLS AND

CHILDCARE FACILITIES AS OF DECEMBER 2024

12 135

Housing units

Clinics

Schools

Day care facilities

(1) Data is not covered in the scope of CSRD limited assurance carried

out for this Sustainability Statement.

Employee housing, education,

and medical services

Many of SIPEF’s employees live in rural and

remote areas near its oil palm and banana

plantations, where access to basic services

and infrastructure may be limited. To support

its workforce, SIPEF provides housing, clean

water, medical care, and education access

for employees’ children. In Indonesia, free

childcare has been oered since 2017, helping

working families and promoting equal oppor-

tunities for women.

SIPEF’s infrastructure and facilities are also

accessible to local communities, with addi-

tional location-specific initiatives such as food

accessibility programmes. These eorts align

with RSPO, Rainforest Alliance, and Fairtrade

standards, as well as the GLWC’s definition

of a living wage, which includes decent living

conditions, housing, clean water, education,

and healthcare.

169

SIPEF Integrated Annual Report 2024 Sustainability Statement

Advancing living wage and shared responsibility in Côte d’Ivoire

In September 2024, Plantations J. Eglin partic-

ipated in a major industry event in Abidjan on

living wage and shared responsibility in Côte

d’Ivoire’s banana sector. Organised by Afruibana,

a pan-African network of fruit producers and

exporters, the event aimed to establish sector-wide

commitments on living wage. It brought together

unions, producers, retailers, government ocials,

and organisations such as COLEAD, Banana Link,

the ILO, CGECI, and the World Banana Forum.

Plantations J. Eglin’s Azaguié site hosted one of

the field visits, showcasing its operations and social

initiatives supporting workers.

Key outcomes included the signing of a Joint

Working Group Charter with FETBAC, the national

banana workers’ union, to negotiate a sector agree

ment, and a Declaration of Intent supporting fair

wages, pricing, and shared responsibility across the

value chain. As part of its Fairtrade and Rainforest

Alliance certifications, Plantations J. Eglin has also

developed an internal action plan to proactively

align with both standards' principles.

170

The connection to the world of sustainable tropical agriculture

Targets and monitoring

SIPEF has not set a specific target for adequate

wages, as it already meets its established bench-

marks, including minimum wage requirements in

all operating locations, as well as compliance with

certification and industry standards on providing

a decent living wage.

SIPEF has set a broader target to achieve 100%

RSPO certification for its own oil palm estates by

the financial year 2030, while its banana operations

are already fully certified.

Read more about this broader target and progress

made in Annex 1 and in ‘Sustainability standards

and certification’ in the Company Report.

ANNUAL REMUNERATION RATIO BY COUNTRY

COUNTRY CURRENCY 2024 ANNUAL TOTAL REMUNERATION RATIO

Belgium EUR 8.80

Singapore SGD 5.26

Indonesia IDR 187.21

Papua New Guinea PGK 145.27

Côte d’Ivoire XOF 189.74

Annual remuneration ratio

In alignment with ESRS requirements, SIPEF

discloses the annual total remuneration ratio of

the highest paid individual to the median annual

total remuneration of all employees in each country

of operation for the financial year 2024.

The highest paid individual in each country has

been excluded from each median calculation.

Additionally, the data has been calculated without

adjustments for job grades or specific roles and does

not distinguish between administrative and field

functions.

171

SIPEF Integrated Annual Report 2024 Sustainability Statement

FREEDOM OF ASSOCIATION

AND COLLECTIVE BARGAINING

SIPEF believes that social dialogue is important

for creating a constructive working environment

for its employees. The Group respects the right to

freedom of association and collective bargaining.

All workers and contractors across SIPEF’s oper-

ations, permanent or temporary, have the right to

join unions and organise themselves following the

respective legislation of the country of operation.

Impacts

Freedom of association

   

 , -

Freedom of association allows employees to form

trade unions, join existing unions, or engage in

collective bargaining to advocate for their rights

and interests. Without freedom of association,

employees may not have adequate access to ave-

nues where they can voice their concerns, negotiate

better working conditions, or participate in deci-

sion-making processes that aect their livelihoods.

Collective bargaining

  

  

 , -

Collective bargaining agreements often lead to

improved wages and benefits for workers. Collective

bargaining agreements can also facilitate nego-

tiations between employers and trade unions or

workers’ representatives, helping to establish fair

and competitive compensation packages that reﬂect

the contributions and needs of employees.

As a labour-intensive agricultural business, SIPEF’s

plantations and mills rely on strong worker-em-

ployer relationships to maintain productivity and

operational continuity. By upholding the right to

freedom of association and collective bargaining,

SIPEF helps foster open dialogue with its workforce

and empowers employees to advocate for their

rights, supporting fair employment practices, work-

force stability, and long-term business resilience.

(4) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impacts are newly

identified and were not included in these exact forms in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

172 The connection to the world of sustainable tropical agriculture

Policies and commitments

SIPEF has a Freedom of Association Policy and a

Human Rights Policy, which commit the Group to

compliance with applicable national regulations,

the ILO Core Conventions, and the International

Bill of Human Rights.

Under the RPP, SIPEF commits to 100% certifi-

cation across its operations, ensuring compliance

with RSPO, Rainforest Alliance and Fairtrade

standards. All four certification standards protect

workers’ rights to unionise, bargain collectively,

and engage in social dialogue, requiring certificate

holders to respect these rights and actively engage

with worker representatives.

Additionally, the RPP outlines SIPEF’s commitment

to implementing the Free and Fair Labour in Palm

Oil Production: Principles and Implementation

Guidance, which explicitly protects freedom of

association and collective bargaining.

Together, these policies and commitments ensure

that all employees can freely associate, join trade

unions, and engage in collective bargaining without

discrimination or retaliation.

To view more information on the development,

governance, and communication of the RPP, please

see ‘General information’.

Actions, targets, and monitoring

SIPEF upholds the right to freedom of association

and collective bargaining by implementing its pol-

icies and commitments. The Group ensures that

its labour practices do not contribute to negative

impacts by maintaining non-interference policies

in trade union activities, adhering to fair labour

standards, and providing adequate resources and

protections for worker representatives. Compliance

is verified through internal and external audits

conducted throughout the year, ensuring adher-

ence to national laws, regulations, and certification

standards.

In locations where unions are present, SIPEF

engages with union representatives through

structured meetings and open communication

channels to support social dialogue and address

workplace concerns. While not all engagements

result in formal collective bargaining agreements,

they provide a platform for discussing working

conditions, employee rights, and labour policies.

COLLECTIVE BARGAINING AGREEMENT COVERAGE 2024

TYPE OF EMPLOYEES COVERED TOTAL EMPLOYEES PER COUNTRY COVERED %

Indonesia 9 657 16 856 57%

Côte d’Ivoire 2 640 2 640 100%

Belgium 19 23 83%

Singapore 0 17 0%

Papua New Guinea 0 4 668 0%

SIPEF GROUP 12 316 24 204 51%

173

SIPEF Integrated Annual Report 2024 Sustainability Statement

As of 31 December 2023, 51% of SIPEF’s employees

are covered by collective bargaining agreements,

with full coverage in Côte d'Ivoire, 83% in Belgium,

57% in Indonesia, and 0% in Singapore and Papua

New Guinea. Employees not covered by collective

bargaining agreements are instead covered by

contractual agreements.

To further enhance employee participation and

representation, SIPEF is exploring ways to incor-

porate sustainability issues in collective bargaining

discussions and increase resources for worker

representatives and social dialogue mechanisms.

The Group also works to identify barriers to union

participation and, where possible, address them. In

Papua New Guinea, for example, while a union is

available to employees, participation remains low

due to the perceived limited advantages of joining.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

Targets and monitoring

SIPEF has not set specific targets for freedom of

association or collective bargaining, as participa-

tion in these arrangements is voluntary for employ-

ees. Instead, the Group monitors its performance

by tracking the percentage of employees who have

joined unions and are covered by collective bar-

gaining agreements. SIPEF also plans to review

and update its Freedom of Association Policy to

explicitly address collective bargaining and ensure

alignment with best practices.

SIPEF has set a broader target to achieve 100%

RSPO certification for its own oil palm estates by

the financial year 2030, while its banana operations

are already fully certified.

Read more about this broader target and progress

made in Annex 1 and in ‘Sustainability standards

and certification’ in the Company Report.

174 The connection to the world of sustainable tropical agriculture

WORKING TIME AND WORKLIFE BALANCE

Fair working hours and a healthy work-life balance

are essential for fostering a productive and sup-

portive work environment. Eective scheduling

and workload management ensure that employees

can engage in their professional responsibilities

while also having sucient time for rest, personal

well-being, and family life. SIPEF is committed

to implementing structured work schedules and

responsible overtime practices that align with

legal requirements and industry standards, sup-

porting both employee well-being and operational

eciency.

Impacts

Working time

    

   

 , -

Excessive working hours can have negative impacts

on mental and physical health, and on the family

lives of employees. Prolonged periods of excessive

working time can also result in burnouts. Any

resulting exhaustion could also leave employees

more vulnerable to occupational health and safety

risks.

Work-life balance

, ,   

   

 , -

Excessive working hours can leave employees

with limited time for family and personal activ-

ities or social interactions outside of work. This

can contribute to feelings of dissatisfaction, and

negative mental health impacts. Fatigue and stress

from work-life imbalance can also compromise

the health and safety of workers. Tired and over-

worked employees may be more prone to accidents,

injuries, and errors in the workplace, posing risks

to themselves and others.

SIPEF’s plantation, mill, and packing station oper-

ations require structured workforce planning to

maintain productivity while ensuring employee

well-being. The Group’s business model involves

both direct employment and contracted labour,

making responsible working time management

essential to ensuring fair labour conditions.

(5) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impacts are newly

identified and were not included in these exact forms in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

175

SIPEF Integrated Annual Report 2024 Sustainability Statement

Policies and commitments

By implementing its RPP, SIPEF ensures compli-

ance with RSPO, Rainforest Alliance, and Fairtrade,

all of which set requirements for working hours,

overtime, and employment conditions.

The RSPO P&C require that working hours and

employment conditions comply with national legal

regulations. Employers must ensure that contracts

clearly define working hours, overtime conditions,

and rest periods in a language workers understand.

RSPO also prohibits involuntary overtime and

mandates legal compliance on leave entitlements

and other labour rights.

Similarly, Rainforest Alliance and Fairtrade,

standards limit excessive working hours, regulate

overtime, and mandate adequate rest periods. The

Rainforest Alliance specifically restricts regular

working hours to eight per day and 48 per week,

while all three standards require voluntary and

properly compensated overtime. Employers must

also maintain accurate working hour records and

provide paid leave, including annual leave, sick

leave, and maternity leave, with additional pro-

tections for nursing mothers.

The RPP also outlines SIPEF’s commitment to

implementing the Free and Fair Labour in Palm

Oil Production: Principles and Implementation

Guidance, which requires that production targets or

quotas be based on what can be fairly achieved with-

in standard working hours, preventing excessive

workloads and the need for involuntary overtime.

To view more information on the development,

governance, and communication of the RPP, please

see ‘General information’.

Actions, targets, and monitoring

SIPEF enforces designated working hours across its

operations, ensuring that overtime is compensated

when contractual hours are exceeded. Measures

are in place to prevent excessive overtime and to

ensure sucient rest periods, tailored to the spe-

cific regulatory and operational contexts of each

country where SIPEF operates. SIPEF tracks the

eectiveness of these actions through internal and

external audits conducted throughout the year,

ensuring adherence to national laws, regulations,

and the respective certification standards.

In addition, the Group implements initiatives

to support work-life balance for its employees,

including improvements in scheduling practices

and, where possible, increased access to childcare.

These actions have not required significant opera-

tional Capex or Opex. No other significant financial

resources would be applicable.

Indonesia

Overtime in Indonesia is regulated by national

labour laws, which permit a maximum of four hours

per day and 18 hours per week. All overtime work

requires prior approval from the direct supervisor

and the heads of administration, and employees

must submit a formal overtime request before

working beyond standard hours. Employees receive

overtime pay and are entitled to annual leave of 12

days, maternity leave of 12 weeks, sick leave, and

public holidays, in accordance with labour laws.

176

The connection to the world of sustainable tropical agriculture

Papua New Guinea

Under the National Employment Act in Papua

New Guinea, working hours must not exceed 12

hours, except in certain urgent circumstances.

Non-management employees receive compensa-

tion when designated working hours are exceeded.

Employees are entitled to annual leave, maternity

leave, and duty leave. Maternity leave is 12 weeks,

with the option for six weeks to be taken as preg

nancy leave. Annual leave entitlements vary based

on employee grade and level.

Côte d'Ivoire

Plantations J. Eglin complies with national reg-

ulations and leading certification standards on

working hours, overtime, and rest periods. These

standards allow ﬂexibility for extended working

hours during peak seasons, provided legal and rest

requirements are met.

While working hours remain consistent for field

workers, maintaining stable schedules in packing

stations can be challenging, particularly during

peak seasons. To address this, the Company imple-

mented targeted measures in 2024, including spe-

cialised training by its certification body on living

wage, working hours, and overtime, and contract

structures (regular and piece-rate contracts) for

senior management, HR, and site leaders.

Early childhood schools in

Papua New Guinea

HOPL supports early childhood education by facil

itating the registration of community-led schools

for children aged 5–7 in some worker compounds,

where families have identified this as a need. This

initiative enhances access to early education

while respecting cultural preferences regarding

childcare.

Although government schools and care facilities

exist, they are often underfunded. To bridge this

gap, HOPL provides financial support to assist

these early childhood schools, while its commu-

nity engagement department offers guidance

and administrative support to help them meet

registration requirements. By working with local

authorities, HOPL also encourages the development

of formal childcare infrastructure.

177

SIPEF Integrated Annual Report 2024 Sustainability Statement

Additionally, working sessions were conducted to

assess challenges and explore solutions. Based on

these findings, the company’s production and HR

teams are developing a new workforce programme,

scheduled for implementation next year.

Targets and monitoring

SIPEF has set a measurable target in line with its

overarching commitment to being a responsible

and supportive employer.

Target: Submit ten early childhood schools for

registration with local authorities in Papua New

Guinea by 2025.

To set this target, consultations were held with

the human resources and community engagement

departments at HOPL in Papua New Guinea, who

served as workforce and community representa-

tives. Additionally, the regional sustainability team

and regional executive committee were consulted

for feedback and approval.

Further information on the targets is provided in

Annex 1.

  2024

As of 2024, ten early childhood schools have been

established in worker compounds where families

have identified a need. Of these, two schools have

successfully completed registration with local

authorities, while two additional schools have been

submitted for registration.

HOPL’s community engagement department,

which works closely with employee families and

community members who have set up the schools,

is responsible for tracking progress against this

target. The department monitors registration

progress, identifies challenges, and facilitates

engagement with local authorities. Additionally,

lessons learned from this initiative inform ongoing

eorts to improve the process and support future

registrations.

178 The connection to the world of sustainable tropical agriculture

HEALTH AND SAFETY

Protecting the health and safety of workers is a

fundamental priority in the palm oil and banana

industries, where operations rely heavily on manual

work. The nature of fieldwork, the use of machinery

and agrochemicals, and the remote locations of

plantations present inherent risks that require

structured safeguards and preventive measures.

Ensuring that employees operate in a safe and

controlled environment is essential not only for

their well-being and long-term health but also

for maintaining operational stability. SIPEF is

committed to upholding robust health and safety

standards that align with legal requirements, indus-

try best practices, and leading standards, ensuring

that risks or impacts are eectively managed and

mitigated across its operations.

Impacts

 - 

-  

 , -

In the labour-intensive palm oil industry, an

absence of stringent health and safety measures

can lead to serious accidents and injuries, ranging

from short-term impacts to permanent disabil-

ities or even fatalities. Without proper training

and measures in place, workers may apply pesti-

cides and fertilisers without adequate protection,

risking respiratory issues, skin diseases, and other

long-term health eects. Female workers can face

additional risks if exposed to agrochemicals,

especially when pregnant or breastfeeding, and

the physical demands of their work. There is also a

risk of machinery-related incidents, such as those

involving tractors. Moreover, the remote locations

of oil palm farms can delay access to emergency

medical services, exacerbating the severity of any

health incidents.

Policies and commitments

SIPEF’s Occupational Health and Safety Policy

outlines the Group’s commitment to providing

a safe and healthy working environment for

all employees. This policy ensures compliance

with national regulations, international labour

standards, and leading certification frameworks,

focusing on risk prevention, accident reduction,

and continuous improvement in workplace safety.

Key measures include hazard identification, mit

igation strategies, and the allocation of resources

to support Occupational Health and Safety (OHS)

programmes.

Health and safety commitments are further embed-

ded in SIPEF’s RPP, which sets out an overarching

commitment to compliance with RSPO, Rainforest

Alliance, GLOBALG.A.P., and Fairtrade standards.

These frameworks set clear requirements on pro-

tective equipment, agrochemical handling, working

conditions, and emergency response preparedness.

(6) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

179

SIPEF Integrated Annual Report 2024 Sustainability Statement

Actions, targets, and monitoring

All employees at operational locations are covered

by a health and safety management system aligned

with legal requirements and internationally recog-

nised standards. Each operating unit in Indonesia,

Papua New Guinea, and Côte d'Ivoire has a dedi-

cated OHS and environment committee, made up

of worker and management representatives. These

committees are supported by trained safety ocers

who implement site-level safety management plans

and carry out regular monitoring.

In line with its commitment to prevention, SIPEF

conducts annual risk assessments to identify the

real or potential risks linked with its activities.

Based on these findings, OHS plans are developed or

amended, and control measures are implemented.

Training and prevention

SIPEF provides regular, risk-based OHS training

to employees and contracted workers. Training

content and frequency are adapted to job roles

and local contexts. Refresher training is regularly

provided for the various functions in accordance

with health and safety management plans, and

communications are adapted to the local languages

and contexts. Specialist courses, such as defensive

driving or working in confined spaces, are oered

where needed.

All necessary PPE is provided, and medical exam-

inations are oered at least annually, if not more

regularly, for employees working with chemicals.

Pregnant and breastfeeding workers are reassigned

to non-chemical duties. Safety checks, including

PPE compliance, are carried out during daily morn-

ing musters, and supervisors continue to monitor

compliance throughout the workday.

In Indonesia, Papua New Guinea, and Côte d'Ivo-

ire, detailed country-level policies complement

these by prescribing procedures in accordance

with local laws, regulations, and best practices

for the palm oil and banana sectors.

180

The connection to the world of sustainable tropical agriculture

Monitoring and response

All occupational incidents are investigated and

corrective actions taken to avoid recurrence.

Where applicable, remedial steps are implemented

following incidents or risk identification. Health

and safety compliance is ensured through internal

monitoring, aligned with national laws and inter-

national standards, such as ISO 45001, varying

according to the country of operation. Eectiveness

is tracked through internal and third-party audits,

injury data analysis, and input from OHS ocers

and sustainability sta across all sites.

Emergency response plans (ERPs) are in place

for high-risk scenarios such as vehicle accidents,

fire outbreaks, and severe weather. These include

coordinated response teams to address both worker

safety and environmental concerns.

Targets and monitoring

SIPEF tracks Lost Time Injury Frequency Rate

(LTIFR) across all operations, defined as the num-

ber of injuries resulting in lost time per one million

hours worked. The Group has set measurable tar-

gets in line with its overarching commitment to

health and safety, as set out in its OHS Policy.

:

1. Zero work-related fatalities

2. Reduce LTIFR by 8.5% in Indonesia, Papua New

Guinea, and Côte d’Ivoire by 2027.

To set these targets, consultations were held with

the health and safety and human resources depart-

ments, as well as the regional sustainability teams.

Additionally, the regional executive committee

were consulted for feedback and approval.

Further information on the targets is provided in

Annex 1.

  2024

No work-related fatalities or deaths due to work-re-

lated ill health occurred across the Group in 2024.

Indonesia’s LTIFR decreased by 3% (-0.14) in 2024,

due in part to the inclusion of the employees at

SIPEF’s tea operations in the LTIFR calculation.

The top five incidents remained similar to 2023,

with slight shifts in ranking: 1) trac accidents, 2)

bee / wasp stings, 3) debris falling in workers eyes,

4) sharp-object injuries, and 5) palm spines in eyes.

To reduce persistent eye injuries, harvesters will

receive protective visors in 2025.

Clinics and medical services

To ensure prompt response to medical needs, each

operational site is equipped with a clinic staed

by trained personnel, supporting both preventive

health services and emergency care. As of 2024,

SIPEF operates 47 clinics: 28 in Indonesia, 13 in

Papua New Guinea, and six in Côte d’Ivoire. Three

new clinics have become operational in Indonesia

during the reporting year to support the new sites

in South Sumatra. Many clinics are also accessible

to community members.

In Côte d’Ivoire, a medical analysis laboratory next

to the Azaguié clinic provides disease screening

services, particularly for malaria, to employees,

their families, and nearby communities. Funded

by the Fairtrade Fund, this facility was established

based on priorities identified by the fund’s commit-

tee of workers' representatives. It plays a vital role

in enabling early detection and timely treatment.

181

SIPEF Integrated Annual Report 2024 Sustainability Statement

Papua New Guinea recorded a 34% reduction

(-8.57) in LTIFR following the implementation of

standard operating procedures to improve incident

reporting and classification. Injuries are now more

accurately categorised, providing a clearer picture

of severity. Documentation has also improved, with

work-related incident (WRI) forms completed more

consistently and the WRI register more regularly.

In Côte d’Ivoire, LTIFR rose by 25% (+1.53) in

2024, largely driven by a rise in field activities. This

includes a greater volume of manual slashing work

following the phase-out of herbicide application.

LOST TIME INJURY FREQUENCY RATE

COUNTRY BASELINE YEAR TARGET

LTIFR

FY2027

2024 2023

Indonesia 2023 3.97 4.20 4.34

Papua New Guinea 2024 6.24 16.33 24.90

Côte d’Ivoire 2024 6.75 7.66 6.13

Singapore* N/A N/A N/A N/A

Belgium* N/A N/A N/A N/A

* LTIFR is not tracked for Singapore and Belgium, as these locations consist only of administrative oces.

All three countries will work to reduce their LTIFR

by reviewing safety equipment, conducting job

safety analyses (JSAs) to identify accident risks

and assess awareness, and planning targeted

internal trainings. While initially focused on the

five primary drivers of LTIFR, this approach will

gradually be expanded across all sta operations.

Across all operations, health and safety ocers

and site-level committees, which include worker

representatives, play an active role in tracking

progress against LTIFR targets. They also help

identify lessons and improvements through post-in-

cident reviews, JSAs, and the design of training

programmes.

Further data and information on the approach used

to calculate LTIFR is available in Annexes 1 and 4.

182 The connection to the world of sustainable tropical agriculture

TRAINING AND SKILLS DEVELOPMENT

Continuous training and skills development are

essential for ensuring that employees can perform

their roles safely and eectively while also enhanc-

ing their career growth and long-term opportuni-

ties. In industries such as palm oil and bananas,

structured training programmes help mitigate

workplace risks, improve eciency, and support

professional advancement, particularly for women.

SIPEF is committed to providing targeted training

initiatives that strengthen workforce capabilities

and contribute to a safer, more skilled, and resilient

workforce.

Impacts

  , ,

  

 , -

Without training, employees are unable to perform

their duties adequately, develop their expertise, or

progress in their careers. This is a particular risk for

women in the palm oil and banana industries, who

traditionally lack access to training opportunities.

A lack of training also leads to a higher risk of injury

to employees.

Policies and commitments

While SIPEF does not have a Group-level stan-

dalone policy on training and skills development,

this remains a strategic and operational priority

for the Group. Providing structured training is

essential for maintaining a capable workforce,

ensuring business continuity, and supporting safe

and ecient operations. In some locations, coun-

try-level training policies are in place to address

local requirements and specific workforce needs.

As set out in the RPP, the Group is committed to

100% certification across its operations, ensur-

ing compliance with RSPO, Rainforest Alliance,

and Fairtrade standards, all of which include

specific requirements for training and workforce

development.

RSPO Principle 3 requires that all sta, workers,

and contract workers receive appropriate training

through a documented programme that is acces-

sible to all, considers gender-specific needs, and

covers relevant aspects of the RSPO P&C in an

understandable format. Certificate holders must

also maintain training records to ensure compli-

ance and track workforce development.

Similarly, the Rainforest Alliance Sustainable

Agriculture Standard mandates that farms provide

structured training on sustainable practices, health

and safety, and workers’ rights, ensuring accessibil-

ity and proper documentation. Fairtrade standards

also require training programmes that promote

occupational safety, fair employment conditions,

and sustainable agricultural practices.

To view more information on the development,

governance, and communication of the RPP, please

see ‘General information’.

(7) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in its exact form in previous reporting. This assessment has been aligned with the sustainability matters outlined

in Appendix A of ESRS 1.

183

SIPEF Integrated Annual Report 2024 Sustainability Statement

Actions, targets, and monitoring

SIPEF implements various structured training

initiatives across its operations to strengthen

workforce skills, enhance career development,

reduce workplace risks, and ensure compliance

with company policies as well as regulatory and

certification requirements. Training programmes

are tailored to local contexts and workforce needs,

both in terms of content and frequency.

Training and communication materials are devel-

oped in local languages to ensure accessibility for

all employees, contractors, and management. Key

topics include occupational health and safety, work-

ing conditions, human rights, standard operating

procedures, agronomic practices, certification, and

regulatory and policy requirements. These eorts

reinforce compliance, safety, and responsible agri-

cultural practices across the Group.

To monitor effectiveness, SIPEF tracks train-

ing participation rates and employee feedback.

Training impact assessments inform future pro-

gramme development, while one-on-one coaching

between supervisors and team members ensures

continuous learning and performance improve-

ment. These eorts ensure that SIPEF’s training

initiatives not only mitigate workplace risks but

also contribute to long-term workforce resilience

and inclusion.

In 2024, a total of 59 511 hours of training were

delivered across the Group, excluding Singapore,

where training hours were not available. On aver-

age, men received more training hours than women,

largely because the highest number of training

hours are linked to technical field roles, which are

predominantly held by men.

OWN WORKFORCE TRAINING HOURS IN 2024

COUNTRY TRAINING

HOURS

FEMALE

TRAINING

HOURS

MALE

AVERAGE

TRAINING HOURS

FEMALE

AVERAGE

TRAINING HOURS

MALE

Belgium 169 180 10.56 25.71

Indonesia* 5 527 19 810 1.30 1.57

Papua New Guinea 3 718 16 184 3.59 4.46

Côte d’Ivoire 4 320 9 603 5.26 5.28

Singapore* 0 0 0 0

SIPEF GROUP 13 734 45 777 2.24 2.54

* Training hours for Singapore oce and Cibuni Tea Estate are not available for 2024.

Further details on specific training topics for

SIPEF’s own workforce and smallholder suppli-

ers are provided throughout this Sustainability

Statement.

184

The connection to the world of sustainable tropical agriculture

Cadet and apprentice programmes

In Indonesia and Papua New Guinea, SIPEF runs

cadet programmes that train college graduates for

middle-management roles in palm oil operations.

While female participation remains limited, SIPEF

actively encourages women to apply. In 2024, no

new cadets were recruited in Indonesia, as SIPEF

is currently revamping the programme following

the hire of a new training manager.

In Papua New Guinea, HOPL also operates a

well-established apprentice programme focused on

technical fields such as construction and workshop

operations. The programme supports practical

skills development and contributes to building a

more inclusive technical workforce.

Targets and monitoring

SIPEF has not set a specific Group-wide target

for training and skills development, as ambitions

vary depending on the purpose and content of each

programme. Training needs and objectives are tai-

lored by topic, such as health and safety, technical

skills, or management development, which makes

a single overarching target less meaningful. For

example, a Group-wide target has been established

for anti-corruption and anti-bribery training (see:

‘G1: Business conduct’).

SIPEF has also set a broader target to achieve 100%

RSPO certification for SIPEF’s own oil palm estates

by the financial year 2030. RSPO certification

requires documented training on safety, labour

rights, and other standards, making training a

critical part of meeting this goal.

Read more about this broader target and progress

made in Annex 1 and in ‘Sustainability standards

and certification’ in the Company Report.

185

SIPEF Integrated Annual Report 2024 Sustainability Statement

DIVERSITY AND GENDER EQUALITY

SIPEF upholds equal opportunities for all employ-

ees and applies strict non-discrimination principles

across its operations. The Group complies with

equal employment laws while also implementing

measures to reduce gender-related discrimination.

Women play a vital role in the agricultural sector

but often face barriers to advancement and unequal

representation in management. These challenges

are linked to SIPEF’s workforce structure and

operational needs, as plantation roles have histor-

ically been male-dominated. SIPEF acknowledges

these realities and focuses on creating a safer, more

supportive work environment while fostering a

more diverse and inclusive workplace within its

operations.

Impacts

  

   

 , -

The palm oil industry as a whole has traditionally

been male-dominated. This is due to the physical

nature of the work as well as the historical and

cultural contexts of gender roles. This means that

there tends to be a higher percentage of men in

management roles and other activities. In some

oil palm producing countries, women are overrep-

resented in casual employment. Similar trends are

observed in the banana production industry, where

the overall workforce also has a higher proportion

of men than women.

Policies and commitments

SIPEF is committed to upholding equal employ-

ment opportunities and eliminating discrimina-

tion across all its operations. This commitment

is reflected in the Group’s Equal Employment

Opportunity Policy, RPP and Group Code of

Conduct.

The Equal Opportunity Policy ensures compliance

with anti-discrimination and equal employment

laws in the countries where SIPEF operates.

Recruitment and selection processes are based

solely on merit, with all qualified candidates

receiving equal consideration. Likewise, career

advancement and disciplinary actions follow a

non-discriminatory approach. The Group Code

of Conduct explicitly prohibits discrimination

based on race, religion, political belief, gender, age,

national origin, disability, or any other classification

declared to be impermissible by law.

As set out in the RPP, SIPEF is committed to 100%

certification across its operations, ensuring compli-

ance with RSPO, Rainforest Alliance and Fairtrade

standards, which require policies promoting

non-discrimination, gender equality, and diversity.

These standards also mandate specific measures

to support vulnerable or underrepresented groups,

such as the establishment of gender committees,

protections against pregnancy discrimination,

equal pay commitments, and mandatory gender-re-

lated training.

(8) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

186 The connection to the world of sustainable tropical agriculture

Gender and age diversity at SIPEF

As of 31 December 2024, women make up approx-

imately one quarter of SIPEF’s workforce. Female

representation at the board level is highest in

Belgium (36%), Singapore (33%), and Papua New

Guinea (33%), with lower levels in Indonesia (14%)

and no female representation in Côte d’Ivoire. At

the executive committee level, women hold 25%

of positions in Belgium, 13% in both Indonesia

and Papua New Guinea, and 0% in Côte d’Ivoire.

Notably, SIPEF’s managing Director is a woman,

reﬂecting progress in leadership representation at

the highest level of the organisation.

Across all operations, the majority of employees

are between 30 and 50 years old, representing 67%

of the workforce. This indicates a predominantly

mid-career workforce across both plantations and

oce locations.

< 30 years

67%

30 - 50 years

26%

> 50 years

DISTRIBUTION OF EMPLOYEES BY AGE GROUP

Gender pay gap

As of 2024, the gender pay gap varies significantly

across SIPEF’s operations. The highest gaps are

reported in Singapore (62%) and Belgium (52%),

while lower gaps are recorded in Indonesia (12%)

and Papua New Guinea (13%). In Côte d’Ivoire, the

gender pay gap stands at 33%. These figures reﬂect

broader dierences in workforce composition, role

distribution, and seniority levels across countries.

Further data and information on the approach used to calculate gender diversity, age distribution, and the

gender pay gap within SIPEF’s own workforce are available in Annexes 2 and 4.

GENDER PAY GAP IN 2024

COUNTRY CURRENCY 2024 GENDER PAY GAP %

Belgium EUR 52%

Singapore SGD 62%

Indonesia IDR 12%

Papua New Guinea PGK 13%

Côte d’Ivoire XOF 33%

187

SIPEF Integrated Annual Report 2024 Sustainability Statement

Actions, targets, and monitoring

SIPEF implements its anti-discrimination and

equal opportunity policies through awareness-rais-

ing, employee training, and the use of established

grievance mechanisms. These measures are in place

to prevent, identify, and address discrimination.

Breaches of SIPEF’s non-discrimination policy

result in disciplinary action, up to and including

termination, and may lead to legal consequences

where applicable.

To advance diversity and gender equality, gender

committees and equivalents have been established

across the Group’s operating units and the head

oces in each country of operation. The commit-

tees meet on a regular basis to discuss and address,

among other issues, challenges faced by women.

These include topics such as equal employment

opportunities, participation in decision-making,

sexual harassment, reproductive rights, and wom-

en’s health and safety.

SIPEF also supports inclusive professional devel-

opment through initiatives such as upskilling,

apprenticeships, and tertiary education support.

Targeted training programmes in gender-inclusive

skills development and technical fields have sup-

ported greater participation by female employees in

roles traditionally held by men, such as harvesting,

ablation, tractor driving and machinery operation,

and technical trades .

188 The connection to the world of sustainable tropical agriculture

Gender and social issues committees



The gender committee at PT Tolan Tiga Indonesia

assesses and addresses gender-related issues,

advises the board on decision-making, and pro-

vides training to promote understanding of female

employees' rights. It also responds to incidents

related to equal opportunity, reproductive rights,

and sexual harassment within the workplace or

company environment. Each operating unit is sup-

ported by a gender committee contact group, which

acts as a liaison with the local workers’ community

on gender issues.

  

At HOPL, social issues committees identify, and

address concerns raised by employees and local

community members. Each committee includes

female representatives from every department and

follows a term of reference and annual workplan.

 '

At Plantations J. Eglin, gender committees address

a broad range of gender-related concerns, including

promoting equal opportunities for women, wom-

en’s health and safety, and workplace harassment.

They also play an active role in supporting women’s

advancement within the company.

In 2024, the committees in Côte d'Ivoire rolled

out a workplan developed in 2023, which includ-

ed awareness-raising on workplace harassment,

training sta representatives on how to handle

harassment grievances, a Pink October campaign

focused on breast and cervical cancer, and initia-

tives to encourage women to apply for positions of

responsibility. These eorts contributed to several

internal promotions for women. Notably, the com-

pany appointed its first female station manager,

alongside promotions to assistant station manager,

assistant agronomist, and four new supervisory

roles. In addition, one woman became the compa-

ny’s first female tractor driver.

Female harvesters and ablation workers in Indonesia

SIPEF is breaking new ground in workforce diver-

sity by empowering women to take on plantation

roles traditionally held by men, enabling access to

higher-paid labour functions. In North Sumatra

and Bengkulu, over 50 full-time female employees

have been trained and employed to carry out abla

tion and harvesting duties in maturing replanted

oil palm areas. The programme is currently being

rolled out at new sites in South Sumatra.

These eorts reﬂect SIPEF’s commitment to equal

employment opportunities and mark a meaningful

step towards greater gender equality and inclusive

growth in the palm oil industry.

189

SIPEF Integrated Annual Report 2024 Sustainability Statement

Targets and monitoring

SIPEF has not set a specific target in relation to

diversity, gender equality, or equal pay for work of

equal value. At this stage, the Group’s focus is on

implementing its policies eectively, delivering

relevant training, and addressing concerns through

gender and social issues committees. Eectiveness

is tracked through committee feedback and inci-

dent monitoring. In 2024, no incidents of discrim-

ination were reported through SIPEF’s grievance

mechanism.

SIPEF has set a broader target to achieve 100%

RSPO certification for its own oil palm estates by

2030. The Group’s banana operations are already

fully certified. These certification schemes, includ-

ing RSPO, Rainforest Alliance, and Fairtrade, rein-

force SIPEF’s commitments to non-discrimination,

equal opportunity, and gender inclusion.

Read more about the overarching target and the

progress made in Annex 1 and in 'Sustainability

standards and certification’ in the Company Report.

190 The connection to the world of sustainable tropical agriculture

MEASURES AGAINST VIOLENCE

AND HARASSMENT IN THE WORKPLACE

Ensuring a safe and respectful workplace is

essential to protecting the dignity and rights of all

employees. In male-dominated industries like palm

oil and bananas, women can be particularly vul-

nerable to harassment, violence, and exploitation,

both in the workplace and when traveling through

plantations or remote areas. SIPEF is committed to

preventing all forms of workplace harassment and

abuse by implementing strict policies, awareness

programmes, and reporting mechanisms to create

a secure and supportive work environment for all

employees.

Impacts

   

   

 , -

In palm oil and banana-producing regions, women

make up a significant portion of the labour force.

Plantations are often located in remote areas and

can be expansive in size, which can leave women

vulnerable to the risk of sexual or non-sexual

harassment and violence when traveling through

or working on plantations. Additionally, risks may

arise for women during recruitment processes or

employment-related discussions, such as salary

negotiations, or discussions regarding employment

terms and conditions.

While this impact has been identified from an

industry-wide perspective and not as an actual

impact, the company recognises the need for

structured safeguards to ensure prevention and

mitigation, given the operational context of plan-

tation-based employment, workforce composition,

and remote locations.

Policies and commitments

SIPEF’s commitment to a safe, respectful, and

harassment-free workplace is reﬂected in its Sexual

Harassment Policy, RPP, and Code of Conduct, all

of which explicitly prohibit sexual harassment,

abuse, and gender-based violence across the Group’s

operations.

The Sexual Harassment Policy defines such conduct

as unwanted, unwelcome, and oensive, applies

to all genders, and is enforced across all SIPEF-

managed entities. It includes confidential reporting

channels and guarantees protection against retal-

iation. The Code of Conduct complements this by

promoting respectful behaviour and explicitly

banning any form of harassment at work.

There are aligned country-level policies in place in

Indonesia, Papua New Guinea, and Côte d’Ivoire.

In Papua New Guinea, HOPL also implements a

Family Violence Policy to help ensure a safe living

environment for employees and their families resid-

ing in company housing. In line with this policy,

(9) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

191

SIPEF Integrated Annual Report 2024 Sustainability Statement

substantiated cases of domestic violence may result

in counselling, disciplinary measures up to and

including dismissal, and legal action through the

appropriate authorities.

In line with its goal of 100% certification, SIPEF

complies with RSPO, Rainforest Alliance, and

Fairtrade standards, all of which require clear

anti-harassment policies and workplace protec-

tions. For example, RSPO mandates policies on har-

assment and violence, protection of reproductive

rights, and the establishment of gender committees.

These eorts are supported by training, awareness

programmes, and ongoing engagement with union

representatives.

Actions, targets, and monitoring

SIPEF implements targeted measures to help

prevent and address workplace harassment and

violence, in line with Group-level and country-level

policies and local operational contexts. Gender and

social issues committees play a key role in raising

awareness, responding to reported concerns and

incidents, and supporting employees through

structured engagement. In some locations, these

committees also function as grievance bodies for

sexual harassment cases.

SIPEF monitors the issue and the eectiveness of

its measures through feedback from gender and

social issues committees, as well as cases reported

to the HR department and through the grievance

mechanism. The grievance mechanism provides

accessible and confidential channels for both

employees and non-employees to report incidents,

supporting early identification and appropriate

resolution of concerns.

Targets and monitoring

SIPEF has not set specific targets to address the

potential material impact identified in relation

to measures against violence and harassment in

the workplace, as the focus remains on prevention

by raising awareness, monitoring incidents, and

providing support services for aected individu-

als. In 2024, no workplace harassment cases were

reported through SIPEF’s grievance mechanism.

SIPEF has set a broader target to achieve 100%

RSPO certification for its own oil palm estates by

Counselling and medical support

In Papua New Guinea, HOPL provides dedicated

support services for employees and their families

facing domestic violence or other personal chal-

lenges. Two trained counsellors oer guidance on

family-related issues such as domestic violence,

financial stress, and general well-being. Safe spaces

are available for both women and men to raise

concerns, with referrals to the courts made when

necessary. Security and medical sta are often

the first responders and are trained to assist in

such cases, including referrals to the police when

appropriate.

192

The connection to the world of sustainable tropical agriculture

the financial year 2030, while its banana opera-

tions are already fully certified. These certification

schemes reinforce workplace protection stand-

ards, including those addressing harassment and

violence.

Read more about this broader target and progress

made in Annex 1 and in ‘Sustainability standards

and certification’ in the Company Report.

EMPLOYEE ENGAGEMENT

SIPEF engages with its workforce through direct

communication, including structured daily interac-

tions, training initiatives, engagement with union

representatives, and accessible grievance channels.

At the operational sites, morning musters are a key

part of this approach, providing plantation and mill

employees with daily briefings on safety protocols,

operational updates, and company policies while

creating a space for employees to voice concerns

or provide feedback.

Regular training sessions enhance employee

awareness of workplace rights, safety, company

policies, and requirements while also supporting

skill development and professional growth. Annual

appraisals and performance reviews further sup-

port workforce development. SIPEF also maintains

structured engagement with union representatives

by holding scheduled meetings, ensuring that work-

force concerns are addressed at local levels.

The managing director of SIPEF holds overall

responsibility for workforce engagement, with

operational oversight delegated to the head of

human resources in each country. These eorts

are supported by site managers and supervisors,

who facilitate daily briefings and structured feed-

back sessions. Employee input is actively sought

during policy development and revisions to ensure

alignment with both regulatory requirements and

workforce priorities.

To assess the eectiveness of engagement, SIPEF

combines direct communication with ongoing mon-

itoring through its grievance mechanism. Gender

and social issues committees across operations

and head oces also provide a dedicated platform

to discuss challenges such as equal employment

opportunities, decision-making participation, sex-

ual harassment, reproductive rights, and workplace

safety.

SIPEF has not entered into a Global Framework

Agreement or similar agreements related to the

respect of human rights of workers, as these are

not applicable to its current operating framework.

193

SIPEF Integrated Annual Report 2024 Sustainability Statement

GRIEVANCES AND

REMEDIATION

SIPEF’s grievance mechanism oers all stake-

holders, including its workforce, a transparent

and confidential platform to raise concerns or

report incidents related to material impacts. The

mechanism ensures accountability and appropriate

remediation where necessary.

Grievances, also referred to as complaints under the

CSRD, can be submitted in person at the nearest

SIPEF oce, via email, or using an online griev-

ance form. The system also allows for anonymous

reporting and guarantees confidentiality. SIPEF’s

Grievance Policy clearly prohibits retaliation

against individuals who raise concerns. An inves-

tigation team with relevant expertise is assigned

to address and resolve each grievance. All cases

are tracked through the SIPEF Grievance Solution

system to ensure timely and transparent resolution.

To ensure accessibility and eectiveness, SIPEF

promotes awareness of its grievance channels

through employee training sessions, policy publi-

cations, company website updates, notice boards at

workplace facilities, and morning muster sessions.

Following the launch of the revised Grievance

Policy and mechanism in 2024, SIPEF also plans to

periodically assess employee awareness and trust in

the grievance mechanism by using surveys, engage-

ment sessions, and feedback initiatives, allowing

for continuous improvement.

As part of annual certification audits under

schemes such as RSPO, ISPO, Rainforest Alliance,

and Fairtrade, SIPEF is assessed on its grievance

mechanism to ensure it is accessible, eectively

implemented, and capable of providing fair and

timely resolution in line with human rights and

social standards.

194 The connection to the world of sustainable tropical agriculture

SUMMARY OF GRIEVANCES RELATED TO SIPEF’S OWN WORKFORCE

INCIDENT DESCRIPTION REPORTED INCIDENTS

Grievances filed by own workforce through the grievance channels across the Group 20

Severe human rights incidents (forced labour, human tracking, child labour) 0

Incidents of discrimination (including harassment) 0

Severe human rights violations related to UN Guiding Principles and OECD Guidelines 0

Complaints filed to national contact points (NCP) for OECD Multinational Enterprises* 0

Number of severe human rights incidents where the undertaking played a role securing remedy for

those aected

Summary of grievances related to own workforce in 2024

In 2024, 20 grievances were filed by SIPEF’s own

workforce through its grievance channels across

the Group. None of these grievances met the defi-

nitions prescribed by ESRS for severe human rights

incidents, discrimination cases, or severe human

rights violations under the UN Guiding Principles

and OECD Guidelines.

No fines, penalties, or damages (zero USD) were

issued in connection to severe human rights

violations, discrimination, harassment, or work-

force-related incidents. Additionally, no material

fines, penalties, or compensations were imposed

for violations related to social and human rights

factors.

More information on SIPEF’s grievance procedures

and policy, including how grievance data is com-

piled, issues are tracked and how the eectiveness

of the mechanism is monitored, is available in ‘G1:

Business conduct’.

* Only Belgium has an OECD NCP. Singapore, Indonesia, Papua New Guinea, and Côte d’Ivoire do not participate in this initiative, as they are not

OECD country members.

195

SIPEF Integrated Annual Report 2024 Sustainability Statement

S2: Workers in the value chain

Smallholder farmers cultivate approximately 40%

of the land planted with oil palm and produce

around 25–30% of the world's palm oil. The sec-

tor provides a stable income for millions of rural

families and has played a significant role in lifting

many out of poverty. Despite this, many small-

holders experience limited access to resources and

technical support, which can result in lower yields

and limit their opportunities. Smallholders can

also find it challenging to make the investments

needed to meet growing sustainability demands

in international markets, including stricter social

requirements for labour conditions and human

rights compliance.

SIPEF is committed to responsible and inclusive

growth, ensuring smallholder suppliers receive

support, training, and resources to strengthen

productivity, environmental stewardship, and

livelihoods, while mitigating human rights risks.

As a key focus area under the Balanced Growth

Strategy, the Group is expanding its scope in

responsible supply chain management to address

material social impacts in other areas of its value

chain, including health and safety concerns for

its logistics partners in the downstream segment.

SUMMARY OF KEY CONTENTS

VALUE CHAIN

LOCATION

MATERIAL SUSTAINABILI

TY MATTERS

APPLICABLE

POLICIES

TARGETS KEY UPDATES

• Smallholders • Secure employment

• Working time

• Adequate wages

• Health and Safety

• Training and skills

development

• Child Labour

• Diversity

• Gender equality and

equal pay for work of

equal value

• Measures against

violence and

harassment in the

workplace

• Privacy

• Responsible

Purchasing

Policy

(RPuP)

• Responsible

Plantations

Policy (RPP)

• Achieve Roundtable on

Sustainable Palm Oil (RSPO)

certification for all scheme

smallholders supplying PT Agro

Kati Lama, PT Agro Muara

Rupit, and PT Agro Rawas Ulu

by 2030.

• Engage with 19 cooperatives of

independent smallholders in

Indonesia by 2026.

• Training on the updated RPuP

to be provided to 100% of

scheme smallholders in Papua

New Guinea in the financial

year 2026.

• Training on the updated RPuP

to be provided to the board

of cooperatives of 20 non-

RSPO certified independent

smallholder groups in Indonesia

in the financial year 2025.

• As of 2024, 89% of

scheme smallholder

planted areas within

SIPEF’s supply base are

RSPO certified

• In 2024, 527 training

sessions were held in

Papua New Guinea,

reaching 11 476

participants on RSPO

certification and best

practices

• In Indonesia,

29 independent

smallholders attended

22 training sessions

on SIPEF policies,

agronomy, and

compliance, supporting

their RSPO audit

success

Logistics

partners:

• Land

transportation

• Shipping

• Health and Safety • No

standalone

policy

• No targets • No key updates

196 The connection to the world of sustainable tropical agriculture

WORKERS IN SIPEF’S VALUE CHAIN

This section describes the workers in SIPEF’s value

chain who, through the Group’s double material-

ity assessment, have been identified as materially

impacted by its operations. While the primary focus

is on smallholders in SIPEF’s palm oil value chain,

health and safety impacts have also been identified

as material for its logistics partners, including land

transportation and shipping, in both the palm oil

and banana value chains.

SIPEF’s double materiality assessment did not

identify any material risks or opportunities related

to workers in its value chain. Consequently, these

are not covered in this section, and no current or

anticipated eects on the Group’s business model,

strategy, or financial performance are reported.

A full view of SIPEF’s palm oil and banana value

chains is available in the Company Report.

Upstream value chain

Smallholders

The workers materially impacted within SIPEF’s

upstream value chain are predominantly small-

holders who supply fresh fruit bunches (FFB) to

SIPEF’s palm oil operations in Indonesia and Papua

New Guinea. These smallholders play a vital role

in SIPEF’s agricultural supply chain, supplying

16% of the Group’s FFB. Their involvement is also

essential in achieving SIPEF’s commitment to a

100% traceable and RSPO certified supply base.

SIPEF’s banana operations do not engage with

smallholder suppliers.

SIPEF's smallholder programmes

SIPEF has established a number of programmes

that oer a range of support for dierent types of

oil palm smallholders that the Company works

with. The Group’s third-party suppliers are all

smallholders with whom SIPEF has an agreement,

whose production locations are known and mapped,

and who are either already RSPO certified or are

working towards certification within the Group’s

RSPO Time Bound Plan.

The Group also engages with independent small-

holders in Indonesia who are not yet part of its

supply base, aiming to support their inclusion in

SIPEF’s certified sustainable supply chain, where

possible.

197

SIPEF Integrated Annual Report 2024 Sustainability Statement

SCHEME SMALLHOLDERS INDEPENDENT SMALLHOLDERS

INDONESIA INDONESIA

Smallholder

cooperatives

(Koperasi)

1 815 SMALLHOLDERS

Under this plasma programme,

SIPEF works with smallholder

cooperatives, managing the produc

tion areas on behalf of cooperative

members who entrust their land to

SIPEF for cultivation.

Village

smallholders

(Kebun Masyarakat Desa)

50 SMALLHOLDER VILLAGES

Under this plasma programme,

SIPEF works with surrounding

villages to develop small oil palm

blocks, which are fully managed by

the Company.

Independent

smallholders

29 SMALLHOLDERS

These smallholders manage their

own lands, and have the option to

sell to SIPEF, depending on their

commitment and progress towards

RSPO certification.

PAPUA NEW GUINEA

Associated

smallholders

3 646 SMALLHOLDERS

Smallholders own and manage their

lands and production, but due to

their geographic location, they are

linked to SIPEF’s supply chain. They

sell to Hargy Oil Palms Ltd (HOPL)

mills, which are in the vicinity of the

smallholder operations. All HOPL

associated smallholders in Papua

New Guinea are RSPO certified.

Independent

99%

Scheme

5 540

Smallholders

5 511

Scheme

smallholders

34%

Indonesia

66%

Papua New

Guinea

198 The connection to the world of sustainable tropical agriculture

Upstream and downstream value chain

Logistics – land transportation

SIPEF uses both its own fleet and contracted

transport providers to move FFB to mills and to

transport post-mill palm products, including crude

palm oil (CPO), palm kernels (PK), and palm kernel

oil (PKO), to the point of sale.

In the banana supply chain, SIPEF’s subsidiary,

Plantations J. Eglin SA, manages transportation

from packing stations to terminals under Free On

Board terms. From there, SIPEF handles transpor-

tation up to the agreed delivery point, after which

customers take over downstream transport.

Downstream value chain

Logistics – shipping

SIPEF relies on global shipping partners for the

international transport of its bananas and palm

oil products from Papua New Guinea, while palm

oil products from Indonesia are sold to domestic

refiners, who manage their own logistics and dis-

tribution from the point of sale.

199

SIPEF Integrated Annual Report 2024 Sustainability Statement

RESPECTING HUMAN RIGHTS

SIPEF is committed to upholding human rights

within its supply chain by adhering to leading

sustainability standards, including the RSPO and

the Rainforest Alliance. These standards align

with the United Nations Guiding Principles on

Business and Human Rights, the ILO Declaration

on Fundamental Principles and Rights at Work,

and the OECD Guidelines for Multinational

Enterprises. They also incorporate key princi-

ples related to social risk assessment, fair labour

practices, the prohibition of forced, tracked, and

child labour, and the establishment of grievance

mechanisms to ensure transparency, accessibility,

and equitable resolution of grievances and disputes.

SIPEF requires all FFB suppliers, who are exclu-

sively smallholders, to comply with its Responsible

Purchasing Policy (RPuP). This policy serves as its

supplier code of conduct. Additionally, smallhold-

er suppliers must adhere to SIPEF’s Responsible

Plantations Policy (RPP). A core commitment of

both policies is the goal of achieving 100% RSPO

certification. The RPP also explicitly references

international labour and human rights standards,

ensuring alignment with the Universal Declaration

of Human Rights and the ILO Declaration on

Fundamental Principles and Rights at Work.

Engagement with workers in the value chain

SIPEF directly engages with the smallholder sup-

pliers that participate in its programmes through

its dedicated smallholder department in Indonesia

and the smallholder agricultural advisory servic-

es (SHAAS) team in Papua New Guinea. These

teams serve as the first point of contact, regularly

providing technical assistance, training, and com-

prehensive compliance support to help smallhol-

ders achieve or maintain RSPO certification. The

teams are led by smallholder managers, who report

directly to the regional executive committees in

Indonesia and Papua New Guinea.

During training sessions, smallholders can provide

feedback and regularly engage with teams to voice

their needs and concerns. This feedback helps refine

training content, improve engagement practices,

and shape support programmes to better address

smallholder needs, including those more vulnerable

to certain impacts, such as women smallholders.

The effectiveness of SIPEF’s engagement with

smallholders is primarily assessed through the

monitoring activities conducted by SIPEF’s small-

holder teams, and the progress of smallholder

compliance with RSPO and SIPEF’s policies. An

overview of SIPEF’s smallholder monitoring activ-

ities and compliance progress is provided under

‘Secure employment’.

SIPEF is assessing how best to develop its approach

for its logistics partners. As such, engagement on

sustainability-related matters remained limited

in 2024.

200

The connection to the world of sustainable tropical agriculture

Processes for providing or contributing to remedy

To further safeguard human rights, SIPEF has a

well-established grievance mechanism accessible to

all stakeholders, including smallholders, their fam-

ilies, their employees, and workers from SIPEF’s

shipping and logistics partners. This mechanism

allows individuals to raise concerns or report inci-

dents related to any identified material impacts,

ensuring fairness, transparency, accountability,

and appropriate resolution where necessary. The

mechanism also allows for anonymous reporting

and ensures that all grievances are treated confi-

dentially. SIPEF’s Grievance Policy explicitly stip-

ulates protection against retaliation for individuals

using these channels to raise concerns or needs.

Smallholders are informed about SIPEF’s grievance

mechanism during training sessions, ensuring

they can report concerns when needed, using

the channel that is most appropriate for them. In

addition to the main channels, smallholders can

submit grievances via voice note, through grievance

managers at nearby oces, and, in Indonesia, by

calling a dedicated hotline.

An overview of SIPEF’s grievance procedures and

policy, including how issues are tracked and how

the eectiveness of the mechanism is monitored,

is available in ‘G1: Business conduct’.

Independent grievance mechanisms

As a member of the RSPO and a Rainforest Alliance

certificate holder, SIPEF is committed to both cer-

tification programmes’ impartial grievance mecha-

nisms through which cases of non-compliance with

UN and ILO standards can be reported and must be

resolved. These mechanisms provide independent

and transparent processes for addressing human

rights concerns.

In 2024, no cases of severe human rights issues or

non-compliance with the UN Guiding Principles on

Business and Human Rights, the ILO Declaration

on Fundamental Principles and Rights at Work, or

the OECD Guidelines for Multinational Enterprises

involving value chain workers were reported in

SIPEF’s upstream or downstream operations.

201

SIPEF Integrated Annual Report 2024 Sustainability Statement

RESILIENCE OF STRATEGY AND BUSINESS MODEL

SIPEF builds supply chain resilience through long-

term partnerships with smallholders, integrating

certification, training, and responsible sourcing.

Supporting RSPO certification enhances smallhold-

er market access, income stability, and long-term

sustainability while ensuring compliance with

evolving regulations.

To mitigate impacts on workers in its value chain,

SIPEF enforces social and labour standards

across key areas, including fair wages, working

hours, health and safety, child labour prevention,

and gender equality. Targeted training, technical

support, and fair pricing help smallholders meet

sustainability requirements while maintaining

economic security. By embedding these commit-

ments into its sourcing strategy, SIPEF strengthens

supply chain stability and promotes responsible

agricultural practices.

An overview of how SIPEF determines necessary

actions in response to actual or potential material

impacts, including on value chain workers, can be

found in ‘General information’.

DATA AVAILABILITY AND DISCLOSURE

CONSIDERATIONS

While certain sustainability matters have been

identified as material for specific groups in SIPEF’s

value chain, limited data availability from the

relevant value chain actors currently constrains

the Group’s ability to report on associated met-

rics for all the material impacts presented in this

section, including working time, adequate wages,

and health and safety. Where reliable internal data

exists, SIPEF discloses it to ensure transparency.

For topics where data is not yet available, SIPEF is

assessing the feasibility of improved data collection

to enhance future disclosures.

SECURE EMPLOYMENT

Smallholders are vital to palm oil supply chains,

contributing significantly to global production.

However, they often face challenges such as lim-

ited access to resources and markets. They can

also struggle to demonstrate compliance with

increasing market demands, such as more stringent

sustainability requirements.

As part of its commitment to responsible sourcing,

SIPEF actively engages with smallholders through

targeted programmes that promote financial

stability, market access, and sustainable farming

practices. Ensuring secure and stable livelihoods

for smallholders is essential for both the long-term

sustainability of the palm oil sector and the well-be-

ing of rural communities.

202

The connection to the world of sustainable tropical agriculture

(1) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

Impacts

  

 

 , -

Many smallholders are drawn to oil palm cultiva-

tion for its high yield potential, competitive prices,

and year-round harvests. Smallholder participation

in palm oil cultivation enhances livelihood security,

as the continuous harvest cycle, high yields and

strong demand provide a reliable income. By engag-

ing smallholders as suppliers, providing technical

support, and serving as a stable customer, SIPEF

contributes to their financial sustainability.

A key commitment for SIPEF, and a cornerstone of

its sustainability strategy, is the ambition to achieve

100% sustainably certified and traceable products,

including its supply base. Supporting smallholders

in achieving certification, such as RSPO, improves

market access by ensuring that they meet buyer

requirements for sustainably sourced palm oil.

Certification can also provide financial benefits

through price premiums, while the adoption of

sustainable agricultural practices enhances yields

and long-term resilience.

Policies and commitments

A key commitment under SIPEF’s RPP and RPuP,

both of which apply to its smallholder suppliers,

is working towards 100% RSPO certification. The

RSPO Principles & Criteria (P&C) set clear require-

ments to ensure fair and transparent partnerships

with smallholders, supporting secure employment,

improved livelihoods, and inclusion in sustainable

palm oil supply chains.

Principle 5 of the RSPO P&C focuses on smallholder

inclusion, requiring certificate holders to ensure

fair pricing, transparent contracts, access to finan-

cial support, and grievance mechanisms. Under

these requirements, certificate holders must also

implement livelihood improvement programmes,

capacity-building initiatives, and training on pro-

ductivity, quality enhancement, and sustainable

practices to support smallholders.

To view more information on the development,

governance, and communication of the RPP and

RPuP, please see ‘General information’.

203

SIPEF Integrated Annual Report 2024 Sustainability Statement

Actions, targets, and monitoring

SIPEF has established a number of programmes

that oer a range of support for oil palm small-

holders. Through these programmes, the Group

shares best management practices (BMPs), oers

seedlings of the same provenance as SIPEF’s at cost

price, supplies fertiliser and equipment, assists

smallholders in obtaining and maintaining RSPO

certification, and provides agronomic and logistical

support for crop transport.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

Indonesia

  (Koperasi)

Under the smallholder cooperatives programme,

SIPEF’s subsidiary, PT Tolan Tiga Indonesia,

manages the production areas on behalf of the

cooperative members who entrust their land

for managed cultivation, providing them with a

steady income over a 25-year period. The company

develops and plants the land and carries out all

operational inputs and management up to and

including harvesting and crop recovery. A purchase

agreement is set in place for the FFB at market

prices. These cooperative members are given an

advanced monthly payment during the immature

phase, which together with development costs is

recovered as part of the purchase agreement. In

2024, the smallholder cooperatives programme

consisted of 1 815 smallholder members.

 

(Kebun Masyarakat Desa)

SIPEF partners with 50 groups of smallholders

from villages around its Agro Muko operations

through the Kebun Masyarakat Desa (KMD)

programme. Similar to the Koperasi model, PT

Tolan Tiga Indonesia is entrusted with land man-

agement, developing and operating production

areas on behalf of the villages. Income is paid to

elected village leaders for the management of social

benefits, with all payments transparently published

in the local newspaper. PT Tolan Tiga pre-finances

plot development and later purchases production

at market prices, deducting repayments for the

low-interest loan. The programme generates sig-

nificant revenue for village cooperatives and their

social initiatives.

 

Independent smallholders in Indonesia manage

their own land and can choose to sell to SIPEF

based on their commitment and progress toward

RSPO certification. SIPEF currently sources

from a single group of independent smallholders,

Koperasi Serba Usaha Suka Makmur, which has 29

members and covers 60 hectares. The cooperative

supplies the Umbul Mas Wisesa mill in Indonesia,

and has been RSPO-certified since 2017. In 2023, it

became the first SIPEF supplier to achieve RSPO

Independent Smallholder Standard certification.

Papua New Guinea

 

In Papua New Guinea the 3 646 smallholders

supplying SIPEF’s subsidiary, Hargy Oil Palms

Ltd (HOPL), are all ‘associated smallholders’, who

own their own land and take full ownership of the

choice of crop and management decisions. These

smallholders are classified as scheme smallholders

as per the RSPO definition, as they can only sell

to mills within their vicinity and have a standing

arrangement with HOPL’s mills.

204

The connection to the world of sustainable tropical agriculture

HOPL

Hargy Oil Palms Ltd

Local planning

committee

OPIC

Oil Palm Industry

Corporation

OPRA

Oil Palm Research

Association

HOPL works with smallholders both directly and through the Local Planning Committee, which is made up of representatives from OPIC, BOPGA,

OPRA, the East Nakanai Local Level Government (ENLLG), and HOPL.

For more information on OPRA and OPIC: png-data.sprep.org/group/15 // www.pngopra.org

 Hargy Oil Palms Ltd

 Oil Palm Industry Corporation

 Bialla Oil Palm Growers Association

 Oil Palm Research Association

 East Nakanai Local Level

Government

DIRECT SUPPORT:

 Smallholder crop collection

 Road and bridge maintenance

for crop collection

 Interest free loans for tools,

fertiliser, seedlings

 Management, procurement

and supply of fertiliser

 Management of pest control

teams for project areas

OPIC AND OPRA SUPPORT:

 Research and development

 Agronomic services

 Training and education

 Community development projects

HOPL is working closely with these smallhold-

ers to improve their yields by providing support

in the form of training and extension services.

Additionally, investments are being made in

research and development services through col

laboration with a local planning committee.

205

SIPEF Integrated Annual Report 2024 Sustainability Statement

Targets and monitoring

SIPEF has set measurable targets in line with its

Time Bound Plan and commitment under its RPP

and RPuP to achieve 100% RSPO certification for

its entire supply base. The targets set represent key

milestones towards achieving this commitment.



1. Achieve RSPO certification for 100% of the

scheme smallholders supplying PT Agro Kati

Lama, PT Agro Muara Rupit, and PT Agro Rawas

Ulu by 2030.

2. Engage with 19 cooperatives of independent

smallholders in Indonesia, in order to support

them in achieving RSPO group certification by

2026.

In order to set these targets, consultations were

held with the smallholder department in Indonesia

and the SHAAS team in Papua New Guinea, who

served as credible proxies. Additionally, the region-

al sustainability teams and regional executive

committees in each country were consulted for

feedback and approval.

Further information on the targets is provided in

Annex 1.

  2024

As of 2024, 89% of the total scheme smallholder

planted area within SIPEF’s supply base is RSPO

certified.

 In Papua New Guinea, all of the smallholders

working with HOPL and supplying its three mills

have maintained their RSPO certification since

2009.

 In Indonesia, all scheme smallholders supplying

SIPEF have been certified, except for 632

smallholders supplying PT Agro Kati Lama, PT

Agro Muara Rupit, and PT Agro Rawas Ulu in

Musi Rawas.

The independent smallholder group supplying

SIPEF maintained its RSPO certification.

Regarding progress on the second target, the

smallholder department at PT Tolan Tiga Indonesia

engaged with two independent smallholder coop-

eratives in North Sumatra and one in Bengkulu

that are not yet in SIPEF’s supply base. To support

their RSPO certification process, the company has

engaged a consultant to assist with training and

engagement eorts.

RSPO CERTIFICATION STATUS FOR SCHEME

SMALLHOLDERS

21 003

Total planted HA

11%

Non-certified

89%

RSPO

certified

206 The connection to the world of sustainable tropical agriculture



Through its smallholder departments, SIPEF works

with all potential smallholder suppliers through a

stepwise approach that enables them to become

RSPO certified. This approach will consist of sev-

eral components: an expression of interest, GIS

screening criteria, awareness and commitment,

technical requirements, and an established internal

control system.

Smallholders already in SIPEF’s supply base are

monitored through a variety of methods, which

include regular outreach and support, and the

internal control system. The main internal controls

under this system are:

1. Inspections – SIPEF conducts block inspections

to ensure compliance with agronomic standards

and other key requirements, including those

linked with health and safety. The team also

communicates the results to growers and

provides support to address any non-compliance

issues.

2. Training and awareness – SIPEF conducts

regular field-based training sessions to educate

smallholders on agronomy and company policies.

These sessions also provide a platform for

smallholder communities to engage with SIPEF

sta and raise concerns.

3. Internal audits – For smallholders who are

already certified, internal audits are carried

out annually to ensure continued compliance

with the RSPO P&C, Indonesian Sustainable

Palm Oil (ISPO) certification for smallholders

in Indonesia, and SIPEF policies. Corrective

actions are communicated in writing.

4. External audits – Certified smallholders also

undergo annual audits by a certification body

to externally verify compliance with the RSPO

P&C.

When a breach of policies or regulations is found,

the crop is segregated from the certified supply

chain. Breaches against critical criteria, such as

human rights violations, deforestation or new

planting on peat, may also result in suspension until

issues are resolved. Required corrective actions

for non-conformances are communicated through

written notice to the relevant parties. Smallholders

are provided with the support needed to address

the non-conformances, and lift the suspension.

207

SIPEF Integrated Annual Report 2024 Sustainability Statement

WORKING TIME

Regulating working hours is an important aspect

of ethical labour practices in the palm oil sector.

Although oil palm cultivation requires continu-

ous operations, fair labour standards help ensure

that smallholders and their workers have balanced

working conditions.

SIPEF supports industry-wide eorts to prevent

excessive working hours and aligns its smallholder

supply base with national labour laws, industry

standards, and certification requirements.

Impacts

    

   :

 , -

Oil palm is a perennial, labour-intensive crop

that requires continuous operations. Without

proper measures in place, smallholders and their

employees may face excessively long working hours.

Prolonged working hours can negatively impact

mental and physical health, disrupt family life,

and increase vulnerability to occupational health

and safety risks.

Ensuring fair and ethical labour conditions is

critical for SIPEF’s business model, as sustainable

supply chains play a crucial role in maintaining

operational stability and managing reputational

risks. While SIPEF recognises overtime as a con

cern in the industry, the impact has been identified

as potential, as there is limited risk of this occur-

ring within SIPEF’s smallholder supply base. In

Papua New Guinea smallholders operate under a

strict harvesting schedule. In Indonesia, scheme

smallholder areas are under SIPEF’s management

control and operate in compliance with labour laws

and SIPEF’s policies, including RSPO certification

requirements.

Policies and commitments

SIPEF’s RPP and RPuP require smallholders to

adhere to national labour laws, SIPEF policies,

and RSPO certification standards, ensuring fair

and legally compliant working conditions. Under

the RPuP, smallholders must be able to prove that

employment conditions for workers or contract

workers always meet at least legal or industry

minimum standards.

The RSPO P&C further reinforce these commit-

ments by requiring compliance with legal working

hours, overtime regulations, and wage conditions.

Certificate holders must provide transparent

employment contracts detailing compensation,

working conditions, and benefits, ensuring workers

have access to this information in a language they

understand. These commitments help promote

fair labour practices and prevent excessive working

hours, supporting worker well-being and long-term

employment security.

(2) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

208 The connection to the world of sustainable tropical agriculture

Actions, targets, and monitoring

SIPEF’s approach to managing material impacts

linked to working time is primarily focused on

supporting its smallholder suppliers in upholding

the requirements of the RSPO and achieving or

maintaining certification.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

Indonesia

In Indonesia, SIPEF engages with scheme small-

holders whose production areas are managed by

SIPEF and are subject to the same requirements

and monitoring processes as its own operations,

in line with RSPO standards. Additionally, SIPEF

sources from a single group of independent small-

holders, which has been RSPO certified since 2017.

Read more about how SIPEF addresses the poten-

tial impacts in its own operations in 'S1: Own

workforce'.

Papua New Guinea

All smallholders supplying HOPL’s mills in Papua

New Guinea are fully RSPO certified and undergo

annual audits by HOPL and third-party certifica-

tion bodies, and receive ongoing training support.

Training sessions are conducted throughout the

financial year, covering various RSPO require-

ments, including those related to working time

at least once per year. In addition, a structured

harvesting schedule regulates smallholder har-

vesting activities. Smallholders are allocated spe-

cific timeframes and follow the industry standard

of harvesting three hectares per day, ensuring a

balanced workload.

Targets and monitoring

SIPEF has not set a specific target to address the

potential material impact identified in relation to

working time in the context of smallholders and

their employees. However, it has set targets in

relation to achieving 100% RSPO certification of

its supply base by 2030.

Read more about these targets for SIPEF’s small-

holder suppliers and the progress made in Annex 1.

209

SIPEF Integrated Annual Report 2024 Sustainability Statement

ADEQUATE WAGES

While the palm oil industry remains economically

significant, value distribution within supply chains

can be uneven. Smallholders, who play a crucial

role in production, often earn modest incomes

while supporting multiple household members.

This can create financial challenges, particularly

in Indonesia and Papua New Guinea, where many

smallholders rely on palm oil as their primary

source of livelihood.

SIPEF is committed to supporting smallholders

and their workers to access fair compensation

by promoting transparent pricing mechanisms,

sustainability certification, and capacity-building

initiatives. These eorts aim to enhance financial

security and improve long-term income stability

for smallholder households.

Impacts

    

  

 , -

The uneven distribution of value within the palm oil

supply chain can contribute to financial insecurity

for smallholders and their employees, as limited

earnings may result in incomes that do not meet

basic living standards. When income is inadequate,

smallholders, workers, and their families may

struggle to aord essential expenses, increasing

their economic vulnerability. Limited financial

resources can also make it dicult to sustain oper-

ations, adopt sustainability practices, or invest in

productivity improvements.

Fair value distribution is essential for SIPEF’s

business model, as sustainable supply chains sup-

port operational stability and economic resilience.

While SIPEF does not determine income levels for

smallholder employees, it supports smallholders by

providing access to markets and premiums through

certification, training, and agricultural inputs such

as seedlings. Through its business relationships

with scheme and independent smallholders in

Indonesia and Papua New Guinea, SIPEF promotes

RSPO certification and responsible practices to help

smallholders maintain sustainable and financially

viable livelihoods.

Policies and commitments

Under the RPuP, smallholders supplying to SIPEF

must ensure that pay and employment conditions

for workers or contract workers meet at least legal

or industry minimum standards. They must also

confirm adherence to human rights and labour

standards as defined by applicable national laws,

regulations, and SIPEF policies.

A key commitment under both the RPP and RPuP

is achieving and maintaining RSPO certification.

Under the RSPO P&C, certificate holders must

ensure that smallholders receive fair pricing,

transparent payment terms, and financial support

mechanisms, contributing to livelihood security

wand economic inclusion.

(3) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

210 The connection to the world of sustainable tropical agriculture

To read more information on the development,

governance and communication of the RPP and

RPuP, please see ‘General Information’.

Actions, targets, and monitoring

SIPEF’s approach to managing material impacts

related to adequate wages and income focuses on

supporting smallholders to improve yields, ensur-

ing fair pricing and transparent payment terms,

providing capacity building, input and resource

support, and facilitating access to market and

premium opportunities through sustainability

certification.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

Indonesia

In Indonesia, SIPEF supports smallholders through

structured cooperative and village-based pro-

grammes, providing direct management, financial

assistance, and access to quality inputs. These pro-

grammes help enhance productivity and income

security by oering agronomic support, logistical

assistance, and structured pricing mechanisms.

To ensure fair and transparent pricing, SIPEF

applies local FFB pricing formulas that align with

market conditions. Additionally, smallholders

receive advanced monthly payments during the

immature phase of plantation development, allow-

ing them to maintain financial stability before their

crops become productive. These payments, along

with development costs, are gradually recovered

through a structured purchase agreement, ensuring

a sustainable, long-term supply partnership.

Papua New Guinea

In Papua New Guinea, HOPL engages with asso-

ciated smallholders to enhance productivity and

financial stability. The company provides agro-

nomic training, logistical assistance, and RSPO

certification support. Additionally, financial

literacy training is oered to help smallholders

manage income eectively and improve long-term

financial security.

As part of its commitment to fair compensa-

tion, HOPL purchases the FFB at world market

prices in accordance with a government formu-

la. Additionally, the company shares an annual

premium from each shipment with smallholders,

calculated based on total production.

211

SIPEF Integrated Annual Report 2024 Sustainability Statement

Targets and monitoring

SIPEF has not set a specific target to address the

potential material impact identified in relation to

adequate income or wages in the context of small-

holders and their employees. However, it has set

targets in relation to achieving 100% RSPO certi

fication of its supply base by 2030. Gaining RSPO

certification allows smallholders to demonstrate

that they are implementing more sustainable

practices, which can expand market access and

improve incomes.

Read more about these targets for SIPEF’s small-

holder suppliers and the progress made in Annex 1.

CHILD LABOUR

Child labour remains a critical global issue, includ

ing in agricultural supply chains, where economic

pressures and limited education access can con-

tribute to the problem. In smallholder farming,

where businesses are often family-run, children

may engage in labour to support household income

or due to schooling limitations.

While SIPEF prohibits child labour in its oper-

ations, the Company recognises potential risks

within its smallholder supply base, particularly in

Indonesia and Papua New Guinea, where social and

economic factors may increase vulnerability. To

mitigate these risks, SIPEF enforces strict labour

standards, conducts regular monitoring, and works

closely with smallholders to uphold compliance and

promote sustainable livelihoods.

Annual contribution to capacity building and research

SIPEF and the associated smallholders working

with HOPL invest in capacity building and research

initiatives, focused on consistently increasing

smallholder yields over time.

SIPEF's investments are allocated to HOPL’s direct

smallholder support initiatives. The investments

made by the smallholders are channelled into the

Oil Palm Research Association (OPRA), the Oil

Palm Industry Corporation (OPIC) and Bialla Oil

Palm Growers Association (BOPGA). This entitles

the smallholders to access the development services

oered by these organisations, as well as extension

services and research.

212

The connection to the world of sustainable tropical agriculture

Impacts

, , 

    

 , -

Child labour can have severe physical, psychologi-

cal, and socioeconomic consequences for children.

Exposure to hazardous work conditions can lead to

serious health risks, including injuries and mental

stress, impacting their well-being and long-term

development. Beyond the immediate health impli-

cations, child labour disrupts education, preventing

children from accessing learning opportunities

that are essential for long-term career prospects

and economic mobility.

Child labour has broader consequences for the

agricultural sector and national economies,

aecting productivity, innovation, and industry

credibility. A workforce lacking formal education

and skill development can reduce long-term eco-

nomic sustainability. For SIPEF, ensuring a child

labour-free supply chain is essential to maintaining

business sustainability, operational integrity, and

compliance with global labour standards.

Policies and commitments

Under the RPuP, smallholders supplying to SIPEF

must confirm that child labour is prohibited in all

operations of the supply base and that no forms

of forced or tracked labour are used. They must

also adhere to human rights and labour standards

as defined by national laws, SIPEF policies, and

international frameworks.

The RPP also explicitly prohibits child labour and

mandates compliance with the International Bill of

Human Rights, International Labour Organization

(ILO) principles, and the Free and Fair Labour in

Palm Oil Production guidelines. These require-

ments apply across all of SIPEF’s operations and

extend to smallholder suppliers.

Additionally, SIPEF aligns with RSPO certification

requirements, which mandate that smallholders

establish formal policies prohibiting child labour,

conduct age verification checks, and provide clear

communication on child protection to suppliers

and local communities.

(4) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

213

SIPEF Integrated Annual Report 2024 Sustainability Statement

Actions, targets, and monitoring

SIPEF enforces strict monitoring and compliance

measures to prevent child labour within its small-

holder supply base. These include regular audits,

age verification during screening procedures, and

training and awareness programmes. Additionally,

SIPEF’s grievance mechanism is available to all

stakeholders, including smallholders and their

workers, to report concerns related to child labour,

ensuring transparent resolution and accountability.

These measures ensure compliance with SIPEF

policies, national laws, and RSPO requirements.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

Indonesia

SIPEF’s smallholder supply base in Indonesia

consists primarily of scheme smallholders, whose

production areas are managed by PT Tolan Tiga

Indonesia and subject to the same labour standards,

monitoring processes, and RSPO requirements as

its own operations.

PT Tolan Tiga Indonesia sources exclusively from a

single group of RSPO certified independent small-

holders. Compliance with child labour prohibition

is ensured through internal audits, external RSPO

certification audits, and training. For any new

engagements with independent smallholders, age

verification checks are conducted to confirm that all

workers meet the legal working age. Young workers

(above the legal working age but under 18) are only

employed in non-hazardous roles, in line with RSPO

requirements and national laws.

Papua New Guinea

All smallholders supplying HOPL’s mills are

RSPO certified. Block inspections, conducted by

the SHAAS team, assess compliance as part of

broader labour and safety checks. Compliance with

RSPO P&C, SIPEF policies, and HOPL’s local child

labour policy is verified through annual internal

and third-party certification audits. Additionally,

regular training and awareness programmes edu-

cate smallholders on child labour policies, legal

working age requirements, and ethical employment

practices.

Targets and monitoring

SIPEF has not set a specific target within its small-

holder supply base in relation to its no child labour

policy, as the Group already has a zero-tolerance

approach to child labour and its focus remains on

monitoring and ensuring compliance. Corrective

action protocols are also in place to address poten-

tial risks. If potential child labour is detected,

immediate remedial actions are taken, including:

 Age verification to confirm legal working age

compliance.

 Engagement with smallholders to ensure

adherence to child labour policies.

 Possible exclusion from the supply base in cases

of non-compliance.

SIPEF has set a broader target to achieve 100%

RSPO certification of its supply base by 2030, rein-

forcing adherence to labour standards, including

child labour prevention.

Read more about these targets for SIPEF’s small-

holder suppliers and the progress made in Annex

1. For further details on SIPEF’s monitoring and

compliance approach for smallholder suppliers,

see page 207.

214

The connection to the world of sustainable tropical agriculture

HEALTH AND SAFETY

Health and safety are critical considerations in agri-

cultural and logistics supply chains, where phys-

ically demanding work, environmental hazards,

and limited access to medical care can pose risks to

workers. In the palm oil sector, smallholders may be

exposed to occupational hazards such as chemical

use, heavy lifting, and remote working conditions.

In logistics, workers involved in land and maritime

transport face risks linked to road safety, vessel

operations, and extended working hours.

SIPEF is committed to supporting safe working

conditions for its smallholder suppliers and logistics

partners by reinforcing compliance with RSPO

standards, national labour laws, and SIPEF’s poli-

cies. While the Company does not directly manage

these operations, it promotes health and safety

awareness and best practices through supplier

engagement and certification requirements.

Impacts

    

  

 , -

The labour-intensive nature of the palm oil indus-

try presents health and safety risks if adequate

measures are not in place. Smallholders working

without proper training and protective equipment

may suer from serious accidents and injuries,

ranging from short-term impacts to permanent

disabilities or even fatalities. Exposure to pesticides

and fertilisers without sucient protection can

also lead to respiratory issues, skin conditions, and

other chronic health eects.

Female smallholders face additional risks, par-

ticularly during pregnancy or breastfeeding, due

to chemical exposure and the physical demands of

farm work. The remote locations of many oil palm

farms can further delay access to medical care,

increasing the severity of workplace injuries and

health emergencies.

   

  

 , -

In land transportation, workers in Indonesia, Papua

New Guinea, and Côte d'Ivoire may encounter

both occupational and environmental challenges.

Poor road conditions, trac congestion, and long

working hours can contribute to accident risks and

driver fatigue. In some remote areas, drivers may

face additional challenges such as cargo security

concerns and adverse weather conditions like

landslides or ﬂoods.

   

   

 , -

Health and safety are a key concern in maritime

transport, particularly for seafarers working on

long-haul routes and in operational roles such

as deck and engine room crew, where physically

demanding tasks and high-risk environments are

common. Without adequate occupational health

(5) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

215

SIPEF Integrated Annual Report 2024 Sustainability Statement

and safety (OHS) measures, shipping workers

may face hazardous conditions, including noise,

vibration, extreme temperatures, and radiation

exposure. In certain regions, additional risks such

as piracy and vessel loss further heighten safety

concerns.

Health and safety standards across SIPEF’s small-

holder supply base and logistics network are essen-

tial for maintaining business stability, operational

integrity, and compliance with international labour

standards. Smallholders play a critical role in sup-

plying FFB to SIPEF’s mills, and their well-being

directly aects productivity and long-term supply

chain resilience. Similarly, safe working conditions

for logistics providers help ensure the reliable

transport of palm oil products. While SIPEF does

not directly manage these operations, it engages

with suppliers and transport partners to promote

adherence to its policies and requirements on

health and safety.

Policies and commitments

Under the RPuP, smallholders supplying to SIPEF

must ensure that the working environment under

their control is safe and without undue risk to

health. Smallholders must also confirm adherence

to human rights and labour standards, as defined

by applicable national labour laws, regulations,

and SIPEF policies.

A key commitment under both the RPP and RPuP is

achieving and maintaining RSPO certification. The

RSPO P&C require certificate holders to implement

health and safety measures, including the use of

personal protective equipment (PPE) for hazardous

tasks such as pesticide application, machine opera-

tions, land preparation, and harvesting. Certificate

holders must also ensure risk management through

worker training and monitoring.

216 The connection to the world of sustainable tropical agriculture

SIPEF also has a Group-level Occupational Health

and Safety (OHS) Policy, which stipulates that it will

ensure all its employees, its contractors, and their

employees, are made aware of and understand their

individual OHS rights and obligations. This policy

aligns with local laws, international agreements,

and industry standards, ensuring that all workers

within SIPEF’s supply chain operate in safe and

compliant working conditions.

SIPEF requires all of its logistics partners to com-

mit to ensuring that SIPEF’s OHS standards and

legal requirements are met. This is included as

a condition in their contractual agreement with

SIPEF. As part of its 2025–2026 policy review,

SIPEF will assess the potential expansion of its sup-

plier Code of Conduct to further integrate health

and safety requirements across its value chain.

Actions, targets, and monitoring

SIPEF is committed to ensuring safe working

conditions for smallholders supplying its mills by

implementing training and monitoring measures.

These measures are geared towards ensuring health

and safety is practiced in line with RSPO standards,

as well as SIPEF’s RPuP and OHS policies.

SIPEF recognises the importance of safe working

conditions in maintaining operational stability

and supply chain resilience. As such, SIPEF will

continue to work with its logistics partners to

ensure compliance with OHS standards.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

Papua New Guinea

For the associated smallholders in Papua New

Guinea, training is regularly conducted on health

and safety practices throughout the financial year,

covering topics such as proper PPE use, pesticide

application, and the safe handling of fertilisers.

Compliance of health and safety practices is also

monitored regularly through block inspections.

In addition, HOPL carries out pre-checks prior to

any pesticide distribution, ensuring smallholders

have the necessary training, storage facilities, and

personal protective equipment (PPE) before they

obtain pesticides from HOPL. PPE is also provided

upon request, should smallholders not have any

access to their own equipment. Third party certifi-

cation audits against the RSPO standard externally

verify smallholder compliance with SIPEF’s health

and safety requirements.

Indonesia

In Indonesia, SIPEF is supplied primarily by

scheme smallholders whose production areas are

managed by SIPEF. These smallholders are subject

to the same requirements and monitoring processes

as the Group’s own operations, in line with RSPO

and ISPO standards.

For its independent smallholder suppliers, PT Tolan

Tiga Indonesia, carried out similar measures to

the associated smallholder programme in Papua

New Guinea.

217

SIPEF Integrated Annual Report 2024 Sustainability Statement

Targets and monitoring

SIPEF has not set a specific target to address the

potential material impact of health and safety

for smallholders and logistics partners. Instead,

the focus remains on monitoring compliance and

corrective action protocols.

Regular inspections and audits are conducted, with

findings communicated to smallholders. When

health and safety non-compliances are detect-

ed, immediate remedial actions are enforced.

Corrective actions are to be implemented by the

smallholder, with follow-ups from the smallholder

teams to ensure compliance. If corrective actions

are not completed, further measures may be

applied, such as the temporary suspension of FFB

payments or supply.

Additionally, SIPEF has set a broader target to

achieve 100% RSPO certification of its supply base

by 2030, reinforcing adherence to labour standards,

including health and safety.

Read more about these targets for SIPEF’s small-

holder suppliers and the progress made Annex 1.

For further details on SIPEF’s monitoring and

compliance approach for smallholder suppliers,

see page 207.

218 The connection to the world of sustainable tropical agriculture

TRAINING AND SKILLS DEVELOPMENT

SIPEF recognises that training and skills develop-

ment are fundamental to worker safety, produc-

tivity, and the long-term success of smallholders.

Without adequate training, workers face greater

risks of injuries and limited career progression,

while smallholders may struggle to meet sustaina-

bility standards, implement best practices, or access

premium markets. Addressing these challenges

through targeted capacity-building programs,

technical support, and compliance training not

only strengthens SIPEF’s supply chain resilience

but also improves product quality and supports

economic empowerment for smallholders and

workers.

Impacts

  

  ,

, 

 , -

As sustainability certification requirements

become more stringent, oil palm smallholders may

struggle to comply due to limited access to training,

technical assistance, and extension services. A lack

of knowledge on sustainable practices, deforest-

ation policies, and quality standards increases

the risk of non-compliance, which could lead to

exclusion from SIPEF’s supply chain, aecting

smallholder income and SIPEF’s long-term supply

chain stability.

To address the challenges smallholders face with

certification requirements, SIPEF engages with its

smallholder suppliers to provide training, technical

support, and industry collaboration, helping them

build capacity and maintain access to sustainable

markets. As SIPEF depends on RSPO certified

smallholders to meet its sustainability commit

ments, strengthening smallholder compliance also

reinforces the stability of its supply chain.

Policies and commitments

Under the RPP, SIPEF is committed to supporting

smallholder suppliers to achieve certification by

providing technical assistance, extension services,

and training through its smallholder programmes.

The RPuP reinforces this commitment by outlining

SIPEF’s smallholder support programme and ICS,

which includes training and awareness on SIPEF

policies, best management practices, and health and

safety, as well as certification and legal compliance.

These eorts equip smallholders with the necessary

knowledge to meet sustainability standards and

ensure their continued inclusion in SIPEF’s supply

chain.

A key commitment under both the RPP and RPuP

is achieving and maintaining RSPO certification.

RSPO certification requires certificate holders

to support smallholders through certification

facilitation, capacity-building programmes, and

access to sustainability initiatives. This includes

(6) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

219

SIPEF Integrated Annual Report 2024 Sustainability Statement

consulting with smallholders, developing livelihood

improvement programmes, and providing training

on productivity, quality management, and safe

pesticide handling.

Actions, targets, and monitoring

SIPEF conducts an intensive, year-round training

programme for associated smallholders in Papua

New Guinea. Each session focuses on one or two

topics, allowing for in-depth discussions and better

knowledge retention. Multiple meetings are held

in the same area throughout the year, covering

interrelated subjects, with key topics revisited to

reinforce learning.

In 2024, HOPL conducted 527 training sessions,

reaching 11 476 participants on topics such as RSPO

certification, best management practices, fertiliser

application, crop quality, land management, pest

control, chemical requirements, and FFB price

calculations. Training engagement increased, with

77% of smallholder blocks reached at least once in

2024, compared to 70% in 2023.

In Indonesia, SIPEF is primarily supplied by

scheme smallholders, whose production areas

are managed by PT Tolan Tiga Indonesia and

are subject to the same training and compliance

requirements as SIPEF’s own operations, in line

with RSPO standards. SIPEF also works with a sin-

gle group of independent smallholders, consisting

of 29 growers, who received 22 training sessions in

2024. These sessions covered SIPEF policies, best

management practices, health and safety, and legal

compliance, enabling them to successfully pass the

external RSPO audit in 2024.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

Targets and monitoring

Targets have been set with the aim of ensuring that

the latest RPuP, published in August 2024, has been

communicated and understood by both SIPEF’s

smallholder suppliers (scheme smallholders) and

potential suppliers (independent smallholders) to

support them in their journey with certification.



1. Training on the updated RPuP to be provided

to 100% of scheme smallholders in Papua New

Guinea in the financial year 2026.

2. Training on the updated RPuP to be provided

to the board of cooperatives of 20 non-RSPO

certified independent smallholder groups in

Indonesia in the financial year 2025.

Consultations were held with the smallholder

department in Indonesia and the SHAAS team in

Papua New Guinea, who served as credible proxies

for SIPEF’s smallholder suppliers. Additionally, the

regional sustainability teams and regional execu-

tive committees in each country were consulted

for feedback and approval.

Further information on the targets is provided

Annex 1.

    2024

As the targets have been set for the financial years

2025 and 2026, there has been no progress to report

for 2024 with regards to RPuP training. Progress

will be tracked by the smallholder teams through

participation rates and attendance records.

220

The connection to the world of sustainable tropical agriculture

DIVERSITY AND GENDER EQUALITY

SIPEF recognises that diversity, gender equality,

and equal pay for work of equal value remain critical

challenges across its value chain, particularly in

palm oil industry, which has traditionally been

male dominated. Women in these sectors can face

barriers to fair employment, career advancement,

and economic participation, which can result in

restricted access to land and financial resources,

limited decision-making power, and even men-

tal health impacts. Addressing these challenges

presents opportunities for SIPEF to enhance

gender inclusion, improve workforce stability,

and strengthen social sustainability eorts, while

ensuring compliance with international labour

standards and sustainability certifications.

Impacts

  

   

 , -

Women smallholders in the palm oil industry can

face significant challenges, including restricted

access to land and resources due to cultural and

legal barriers that favour men in ownership and

decision-making. They can also bear a dispropor-

tionate burden of unpaid labour, balancing farm

responsibilities with household chores, caregiving,

and community work. This heavy workload can

impact their physical and mental health and limit

opportunities for education and personal develop-

ment. Additionally, gender biases and stereotypes

can restrict their access to training, advancement,

and decision-making power, potentially relegating

them to lower-paid, lower-status roles within the

industry.

SIPEF sources from both independent and scheme

smallholders in Indonesia and from associated

smallholders in Papua New Guinea, were cultural

norms and legal frameworks influence gender

dynamics in agriculture. Although this issue has

been identified from an industry-wide perspec-

tive, there is no concrete evidence of women facing

restricted opportunities in SIPEF’s supply base.

However, the potential impact is significant, as it

could infringe on human rights and access to basic

necessities. While these issues can be addressed

through targeted interventions and gender-sensi-

tive policy reforms, cultural norms and systemic

biases make long-term change challenging.

(7) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

221

SIPEF Integrated Annual Report 2024 Sustainability Statement

Policies and commitments

Under the RPuP and RPP, smallholders supplying

to SIPEF must confirm that any form of discrim-

ination is prohibited, including gender-related

discrimination in employment and pay. These

policies also require adherence to human rights

and labour standards as defined by national laws,

SIPEF policies, and international frameworks,

while mandating the elimination of gender discrim-

ination and the promotion of equal opportunities

in hiring, wages, and working conditions across

SIPEF’s operations and smallholder supply.

Additionally, RSPO certification requirements

mandate that certificate holders implement

publicly available non-discrimination and equal

opportunity policies, ensure fair hiring, training,

and promotion practices, and establish gender

committees to support women’s representation

and workplace inclusion. Certificate holders must

also provide evidence of equal pay for the same

work scope.

Actions, targets, and monitoring

SIPEF’s approach to diversity, gender equality, and

equal pay within its smallholder supply chain is pri-

marily focused on ensuring compliance with RSPO

requirements, national labour laws, and SIPEF

policies. Through certification and structured

monitoring, SIPEF reinforces non-discrimination,

equal employment opportunities, and fair pay.

In addition to compliance eorts, SIPEF imple-

ments some targeted initiatives to strengthen

gender inclusion and economic empowerment.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

Indonesia

In Indonesia, SIPEF’s scheme smallholders are

managed by PT Tolan Tiga Indonesia and are

subject to the same labour standards, monitoring,

and RSPO compliance as SIPEF’s own operations.

Additionally, SIPEF sources from a single group

of RSPO certified independent smallholders, who

have been certified since 2017.

Papua New Guinea

In Papua New Guinea, SIPEF’s subsidiary, HOPL,

implements a dual-card payment system to promote

financial independence for women smallholders and

workers. This system ensures that income earned

from FFB and loose fruit collection is allocated

directly to the individual contributor, reducing

dependency on a single household member.

 Primary card: Assigned to the registered small-

holder, often the male head of the household, but

it can also be the woman of the household. This

card is linked to the smallholder’s account for

FFB delivery payments.

 Secondary card: Issued to women contrib-

uting through loose fruit collection, allowing

payments to be deposited directly into their own

bank accounts, ensuring independent income ac-

cess and reducing financial reliance on spouses.

Additionally, HOPL’s SHAAS team conducts com-

munity-led training sessions on financial literacy,

budgeting, hygiene, and household resource man-

agement, tailored to local needs. In areas where

female community leaders have requested support,

female extension ocers facilitate women-only

meetings to discuss gender-related challenges and

opportunities in agriculture.

222

The connection to the world of sustainable tropical agriculture

Targets and monitoring

SIPEF has not set a specific target to address the

potential material impact identified in relation to

diversity, gender equality, and equal pay for work

of equal value in the context of smallholders.

However, it has set targets in relation to achieving

100% RSPO certification of its supply base by 2030,

which includes requirements on gender equality

and non-discrimination.

Read more about these targets for SIPEF’s small-

holder suppliers and the progress made in Annex 1.

MEASURES AGAINST VIOLENCE AND HARASSMENT IN

THE WORKPLACE

SIPEF recognises that violence and harassment can

occur in smallholder supply chains, particularly

in remote areas where informal work arrange-

ments may limit access to workplace protections

and reporting mechanisms. Women working in

smallholder operations may be more vulnerable to

exploitation, harassment, and abuse in such con-

texts. Addressing these challenges through aware-

ness raising, policies, and reporting mechanisms

presents an opportunity to mitigate or prevent

violence and harassment and reduce associated

potential impacts.

Impacts

   

   

 , -

Gender inequalities in the countries where SIPEF

sources from smallholders can leave women more

vulnerable to exploitation, sexual harassment, and

violence, particularly in remote or isolated oil palm

plantation areas. The lack of protective measures,

reporting mechanisms, and access to legal recourse

exacerbates these risks, contributing to serious

mental health impacts for aected individuals.

SIPEF sources from both independent and scheme

smallholders in Indonesia and from associated

smallholders in Papua New Guinea, where cultural

norms and legal frameworks shape gender dynam-

ics in agriculture and impact workplace conditions.

Although this issue has been identified from an

industry-wide perspective, there is no concrete

evidence of its occurrence within SIPEF’s value

chain. However, given its high severity and the

challenges of post-incident remediation, SIPEF

recognises the need for preventive action. The

Company engages with suppliers through relevant

policies, certification requirements, and training

to promote safe and inclusive workplaces.

(8) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

223

SIPEF Integrated Annual Report 2024 Sustainability Statement

Policies and commitments

Under the RPuP, smallholders supplying to SIPEF

are committed to ensuring a safe working environ-

ment free from undue health risks. They must also

confirm adherence to human rights and labour

standards as defined by applicable national laws,

regulations, and SIPEF policies. A key commitment

under both the RPP and RPuP is achieving and

maintaining RSPO certification. The RSPO P&C

require that a policy to prevent sexual and all other

forms of harassment and violence is implemented

and communicated to all levels of the workforce.

To read more information on the development,

governance and communication of the RPP and

RPuP, please see ‘General Information’.

Actions, targets, and monitoring

SIPEF’s approach to managing material impacts

linked to violence and harassment is primarily

focused on prevention:

 All smallholders supplying SIPEF’s mills in

Papua New Guinea are fully RSPO certified,

undergo audits by SIPEF and third-party

certification bodies annually, and receive

ongoing training support. At least once a year,

this training covers SIPEF’s policy on violence

and harassment, along with awareness-raising

on the issue.

 In Indonesia, SIPEF engages with scheme

smallholders whose production areas are

managed by SIPEF and are subject to the same

requirements and monitoring processes as its

own operations, in line with RSPO standards.

Additionally, SIPEF sources from a single group

of RSPO certified independent smallholders.

 SIPEF’s grievance mechanism is available to

all stakeholders, including smallholders, their

families, and their employees, to raise concerns

or report incidents, including those related to

violence and harassment.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

Read more about how SIPEF addresses the poten-

tial impacts in its own operations in 'S1: Own work-

force'. See ‘G1: Business conduct’ for an overview

of SIPEF’s grievance mechanism.

Targets and monitoring

SIPEF has not set a specific target to address the

potential material impact identified in relation to

measures against violence and harassment in the

workplace in the context of smallholders. However,

it has set targets in relation to achieving 100% RSPO

certification of its supply base by 2030, which

includes requirements on this topic.

Read more about these targets for SIPEF’s small-

holder suppliers and the progress made in Annex 1.

224 The connection to the world of sustainable tropical agriculture

PRIVACY

As supply chain transparency and regulatory

compliance become increasingly important, man-

aging data privacy risks is essential to maintaining

trust and ensuring ethical business practices. In

agricultural supply chains, particularly those

involving smallholders, privacy concerns may arise

when traceability eorts require the collection

and disclosure of location and operational data.

While these measures support sustainability

commitments and legal compliance, they must be

balanced with responsible data management to

protect smallholders’ rights and livelihoods.

Impacts

  

 

 , -

Increasing traceability and monitoring require-

ments in SIPEF’s supply chain, driven by EU reg-

ulations such as the European Union Regulation

on Deforestation-free Products (EUDR), may raise

privacy concerns for smallholders, particularly in

Indonesia, where local regulations and sensitivities

around data protection are more pronounced. If not

managed appropriately, the disclosure of supplier

locations and the expansion of satellite monitoring

could lead to unintended data privacy implications.

These impacts are directly connected to SIPEF’s

business model and strategy, which prioritises sup-

ply chain transparency and regulatory compliance

to meet international sustainability commitments.

As part of its responsible sourcing activities, SIPEF

is involved in data collection, geolocation monitor-

ing, and certification processes, requiring engage-

ment with scheme and independent smallholders to

verify legal compliance and sustainability criteria.

While these eorts help ensure responsible sourc-

ing, they also introduce privacy risks related to

data security, unauthorised access, and poten-

tial smallholder exclusion from supply chains if

non-compliance is detected. To mitigate these risks,

SIPEF integrates data protection measures into its

smallholder data storage and handling procedures

and traceability initiatives, ensuring that small-

holders' rights are safeguarded while maintaining

compliance with evolving regulatory standards.

Policies and commitments

SIPEF upholds strict principles of data protection

and confidentiality, as outlined in the Group’s Code

of Conduct. The Code commits SIPEF to safeguard-

ing all information related to suppliers, clients,

and other business partners from unauthorised

use, disclosure, alteration, or destruction. SIPEF

is further committed to ensuring that data is used

solely for its intended purpose, in full compliance

with legal and internal confidentiality regulations.

To read more information on the development,

governance, and communication of the RPP and

RPuP, please see ‘G1: Business conduct’.

(9) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

225

SIPEF Integrated Annual Report 2024 Sustainability Statement

Actions, targets and monitoring

SIPEF continues to implement data protection

measures to safeguard smallholder information

while ensuring compliance with evolving tracea-

bility requirements.

At its operations in Indonesia and Papua New

Guinea, smallholder files are securely stored with

restricted access in both physical and digital for-

mats. Sensitive data, including land parcel infor-

mation, financial information, and agreements

or MOUs, is maintained within the appropriate

departments at the head oces, with access strict-

ly limited to designated personnel. Additionally,

Company databases storing smallholder informa-

tion are protected with login-restricted access,

ensuring data security and compliance with evolv-

ing traceability requirements.

To support compliance with the EUDR and

strengthen supply chain transparency, SIPEF

upgraded its interactive mapping platform,

GeoSIPEF, in October 2024. The platform enhances

monitoring capabilities while maintaining data pri-

vacy protections for SIPEF’s suppliers by enabling

secure, selective data-sharing with authorised

stakeholders. The new version includes a customer

portal that requires SIPEF customers to log in,

while certain data is only shared upon request.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

A more detailed update on GeoSIPEF can be found

in ‘S4: Consumers and end-users’ and the Company

Report.

Targets and monitoring

SIPEF has not set a specific target to address the

potential material impact identified in relation to

privacy for smallholders, as the focus is primar-

ily on the protocols it has in place to ensure data

privacy for smallholder, as previously described.

226

The connection to the world of sustainable tropical agriculture

S3: Affected Communities

Agriculture plays a vital role in rural development,

supporting livelihoods, job creation, and food

security. However, if not managed sustainably, it

can also disrupt local communities and threaten

access to land and natural resources.

SIPEF is committed to respecting the rights of

communities to land, resources, territories, live-

lihoods, and food security. Its approach is grounded

in the principles of free, prior, and informed consent

(FPIC), the protection of human rights, and the

recognition of indigenous peoples' rights. These

commitments are embedded in the Group’s key

policies and are implemented through formal

assessment and consultation processes to prevent

land disputes and support inclusive development.

A sustainable approach to conducting operations

is also critical for ensuring that activities do not

cause the degradation of natural resources and

ecosystems on which communities depend.

SUMMARY OF KEY CONTENTS

MATERIAL SUSTAINABILI

TY MATTERS

APPLICABLE

POLICIES

TARGETS KEY UPDATES

• FPIC

• Security-related

impacts

• Adequate food

• Responsible

Plantations

Policy (RPP)

• Responsible

Purchasing

Policy

(RPuP)

• Grievance

Policy

• No target. • A dedicated community engagement

department was established in Papua

New Guinea to address local concerns and

strengthen stakeholder relations

• Youth empowerment initiatives were

expanded in Papua New Guinea, including

skills training, legal support for association

registration

• Third-party verification of the social impact

assessments (SIAs) conducted in 2023 began

in 2024, supporting preparations for new

developments

SCOPE OF DISCLOSURE

SIPEF’s palm oil operations in Indonesia and

Papua New Guinea are located in areas where local

communities, including indigenous peoples, are

present. In Côte d’Ivoire, there are no indigenous

communities near SIPEF’s banana operations, and

land acquisitions have only involved previously

cultivated plantation areas under historically estab-

lished lease agreements. While communities are

present nearby, the potential for significant impacts

has been assessed as limited.

The double materiality assessment conducted in

2024 identified material impacts related to FPIC,

security-related impacts, and adequate food, all of

which are most relevant to SIPEF’s operations in

Indonesia and Papua New Guinea. Accordingly, the

scope of this section focuses on the communities

potentially aected in those countries, reﬂecting

both the nature of the identified impacts and the

limited relevance of these issues in the context of

Côte d’Ivoire.

227

SIPEF Integrated Annual Report 2024 Sustainability Statement

The type of communities subject to material

impacts and included in scope are:

 Local communities: Communities living near

or within SIPEF’s operating sites, who may be

aected by operational activities, including in

areas where land ownership conﬂicts could arise.

 Indigenous peoples: Inheritors and

practitioners of unique cultures and ways of

relating to people and the environment, who

retain social, cultural, economic, and political

characteristics distinct from those of the

dominant societies in which they live.

Communities potentially aected by SIPEF’s value

chain are not included in scope, as the most rele-

vant material impacts relate to the Group’s direct

operations. In some locations, smallholders are

also members of local communities, resulting in

an overlap.

RESPECTING COMMUNITY RIGHTS

SIPEF’s approach to respecting the rights of local

communities and indigenous peoples is based on

responsible and inclusive engagement practices,

aligned with international human rights stand-

ards and sustainability frameworks. These include

the Roundtable on Sustainable Palm Oil (RSPO)

Principles & Criteria, the Rainforest Alliance

standard, and relevant international declarations

and conventions, such as the Universal Declaration

of Human Rights, UN Declaration on the Rights of

Indigenous Peoples, and the International Labour

Organization (ILO) Indigenous and Tribal Peoples

Convention (No. 169).

Key commitments to these standards and inter-

national conventions are formalised in SIPEF’s

Responsible Plantations Policy (RPP). This policy

also embeds the principles of FPIC and outlines the

Group’s respect for legal, customary, and user land

rights, especially those of indigenous communities.

Engagement with affected communities

SIPEF engages directly with aected communities

or their legitimate representatives throughout the

lifecycle of its operations. Engagement is tailored to

the local context and includes participatory land-

use planning, community consultations, and griev-

ance processes. Community engagement is led by

regional sustainability teams, with oversight from

the group head of sustainability, who reports to the

executive committee. This structure ensures that

engagement is systematic, context-sensitive, and

informs decision-making at the highest level. As

of March 2024, a separate community engagement

department has also been established by HOPL in

Papua New Guinea to focus on addressing commu-

nity-related issues.

To further uphold community rights and pre-

vent harm, SIPEF also maintains an accessible

grievance mechanism, allowing stakeholders to

raise concerns and seek resolution in a transparent

and respectful manner.

Read more about the grievance channels accessible

to aected communities on pages 236-237.

228

The connection to the world of sustainable tropical agriculture

RESILIENCE OF STRATEGY AND BUSINESS MODEL

Respect for community rights is also embedded in

SIPEF’s strategy and business model. One of the

core focus areas of SIPEF’s strategy is ‘Respecting

employees and communities’, which includes fos-

tering long-term relationships, creating shared

value, and supporting community well-being. This

is implemented through sustainability policies,

alignment with certification standards, and con-

tinuous stakeholder engagement. By working in

this way, SIPEF strengthens its ability to anticipate

and address material risks, such as land-related dis-

putes or operational disruptions, while supporting

long-term resilience for both the business and the

communities it engages with.

Identification and management of impacts,

risks, and opportunities

SIPEF’s double materiality assessment did not

identify any material risks or opportunities. As a

result, there are no risks or opportunities disclosed

in this section, nor reported current or anticipated

eects on the Group’s business model, value chain,

strategy, or decision-making. Additionally, no

eects are reported on the Company’s financial

position, performance, or cash ﬂows.

In general, actions taken or planned to manage

the impacts described in this section are based on

the results of social impact assessments, internal

and external audits, grievance mechanisms, and

feedback from other forms of direct engagement to

ensure appropriate responses. Dedicated financial

and human resources are allocated to managing

these issues.

FREE, PRIOR, AND INFORMED CONSENT FPIC

SIPEF recognises that agricultural development,

including in the palm oil sector, can aect com-

munity rights and access to land. Respecting

these rights begins with obtaining FPIC from

communities that may be aected before any new

development. FPIC is not a one-time event tied to

land transfer but an ongoing process to ensure that

community voices are heard and their feedback

taken on board.

229

SIPEF Integrated Annual Report 2024 Sustainability Statement

Impacts

 , ,  

 , -

Without a robust FPIC process, the expansion

of palm oil plantations in the wider industry has

contributed to land-related disputes, particularly

where customary lands of indigenous peoples

and local communities are involved. A related

challenge is the lack of clearly defined boundaries

for customary land in many palm oil-producing

countries, which can complicate land tenure

recognition. Such disputes may impact traditional

livelihoods and contribute to social tension and

economic vulnerability.

Policies and commitments

SIPEF is committed to ensuring that FPIC is

obtained before any new land development, fol-

lowed by continuous and constructive engagement

with local communities. This commitment is

embedded in both the RPP and the RPuP, which

require that FPIC is applied in SIPEF’s own opera-

tions, and that land ownership is properly secured

in its smallholder supply base.

The RPP also outlines the Group’s goal to achieve

100% RSPO certification. The RSPO P&C include

clear requirements for respecting legal, customary,

and user rights, including the need for participa-

tory land-use planning, access to information,

representation by institutions of the communities'

choosing, and the right to give or withhold consent

prior to land development.

To view more information on the development,

governance, and communication of the RPP and

RPuP, please see ‘General information’.

Actions, targets, and monitoring

Prior to any new development, SIPEF initiates a

structured, participatory, and transparent process

to secure FPIC of local communities, in alignment

with RSPO requirements. This process is designed

to ensure that the Company does not infringe on

land or resource rights, and that individuals have

the right to be represented, to withhold consent,

and to receive compensation where applicable.

Social impact assessments (SIAs) are conducted in

line with RSPO’s New Planting Procedure (NPP),

alongside High Conservation Value and High

Carbon Stock Approach (HCV-HCSA) assessments.

These processes evaluate actual and potential social

impacts and involve community members in the

design of any required mitigation or management

plans. External experts are engaged to carry out

FPIC and SIA processes.

(1) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

230 The connection to the world of sustainable tropical agriculture

Monitoring and oversight of management plans are

conducted with internal checks and third-party

audits led by regional sustainability teams and

certification bodies. In addition to new develop-

ment-related assessments, SIPEF’s regional sus-

tainability teams also engage regularly with local

communities through social impact assessments

and consultations as part of ongoing operational

monitoring. These activities take place at least

annually, or more frequently when concerns arise.

In Papua New Guinea, a dedicated community

engagement department has been established to

address community-related issues.

SIPEF’s grievance mechanism allows local and

indigenous communities to raise concerns related

to land rights or other issues. In the event of land

disputes, participatory mapping is undertaken

to identify the area in question, and the process

includes documentation of compensation agree

ments based on FPIC principles.

Targets and monitoring

SIPEF has not set a specific target for FPIC, as the

priority is on ensuring that the process is imple-

mented consistently and eectively across all new

developments.

SIPEF has set a broader target to achieve 100%

RSPO certification for its own oil palm estates by

2030. As previously stated, the RSPO P&C explic-

itly require respect for legal, customary, and user

rights, including the application of FPIC prior to

land development.

Read more about the overarching target and the

progress made in Annex 1 and in 'Sustainability

standards and certification' in the Company Report.

Social impact assessments in 2024

In 2024, SIPEF continued to conduct SIAs across

its operations to inform management planning and

support ongoing dialogue with local stakeholders.

 Indonesia: At PT Tolan Tiga Indonesia,

these included surveys and interviews with

local communities to assess perceptions of

the company’s impact on employment, local

economies, infrastructure, and the environment.

The assessments are part of ongoing operational

monitoring and inform SIPEF’s social

responsibility management plan for Indonesia.

 Papua New Guinea: In 2023, Hargy Oil Palms

Ltd (HOPL) conducted a comprehensive SIA

as part of its broader integrated HCV-HCSA

assessment, which supports the company’s

ongoing RSPO NPP process. These assessments

covered the company’s estates, smallholders,

and surrounding areas. In 2024, HOPL engaged

with an accredited certification body to initiate

third party verification of the full assessment

package, including the SIAs. This verification,

planned for the second quarter of 2025, is a key

step towards securing RSPO approval for new

developments.

231

SIPEF Integrated Annual Report 2024 Sustainability Statement

SECURITYRELATED IMPACTS

SIPEF recognises that its no deforestation com-

mitment, while playing a critical role in preserving

high conservation value areas, can intersect with

local development needs in complex ways. This

is particularly relevant in Papua New Guinea,

where land use constraints, limited livelihood

alternatives, and generational settlement patterns

have led to increased pressure on land, creating

tensions that may escalate into security-related

risks. Addressing these challenges proactively is

essential to safeguarding both community well-be-

ing and employee safety.

Impacts

    

  

 , -

Company no deforestation commitments can limit

the ability of local communities and smallholders

to develop new land for oil palm cultivation, as

FFB from deforested areas cannot be sold to NDP-

committed companies. In Papua New Guinea, while

not the primary cause, such restrictions can add

to existing challenges. Overcrowding in allocated

land blocks, where multiple generations rely on

the same plots, has led to increasing land pressure

and a growing risk of ownership conﬂicts. These

pressures have contributed to heightened risks

of crime and broader security concerns, aecting

both community members and SIPEF employees.

Policies and commitments

While no policies or commitments have been estab-

lished specifically to address security-related risks

linked to land-use constraints, the RPP includes

broader commitments to supporting communities,

promoting smallholder inclusion, and protecting

the rights of local and indigenous communities.

These principles guide SIPEF’s approach to com-

munity engagement and help inform proactive

efforts to reduce social tensions and promote

inclusive development, particularly in areas where

land pressure and limited economic alternatives

present challenges.

The Group’s commitment to RSPO certification, as

outlined in the RPP and RPuP, further supports this

approach. The RSPO P&C include requirements for

smallholder inclusion, community development

support, respect for land tenure rights, and par-

ticipatory engagement processes.

To view more information on the development,

governance, and communication of the RPP and

RPuP, please see ‘General information’.

(2) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

232 The connection to the world of sustainable tropical agriculture

Actions, targets, and monitoring

To help address the root causes of security-related

risks, SIPEF supports youth empowerment and

livelihood creation initiatives in communities in

Papua New Guinea aected by land-use constraints.

Led by the community engagement department,

youth engagement is a central focus of these eorts.

As part of broader efforts to identify inclusive

land-use opportunities, HOPL’s integrated HCV-

HCSA and SIA assessments conducted in 2023 also

included participatory mapping to help identify

areas that may be suitable for future smallholder

development. The results are currently undergoing

verification, as described in the section on FPIC.

Targets and monitoring

While no specific targets have been set to reduce

security-related impacts, HOPL will continue to

track participation in youth engagement initiatives,

training outcomes, and connections to employment

opportunities as part of its community engagement

strategy in Papua New Guinea. HOPL’s communi-

ty engagement department will also continue to

explore additional ways to support community

development projects, which can help to address

underlying land-related pressures by promoting

inclusive development and livelihood initiatives.

Youth engagement initiatives in Papua New Guinea

HOPL’s youth engagement programme aims to

mobilise and empower local youth to take an active

role in their communities. Groups participate in

service activities such as roadside and cemetery

clean-ups and receive training in financial literacy

and practical topics like herbicide handling to build

life skills and improve employability.

In addition, the community engagement depart-

ment is assisting youth groups with registering as

associations, which enables them to open business

accounts and meet the legal requirements needed

to be engaged for contract work and to receive

payment. Two youth groups have been formally

registered in Kabaya, with three more currently

in development.

Monitoring is carried out through regular field

assessments by the community engagement, sus-

tainability, and smallholder teams in Papua New

Guinea. Feedback from youth group leaders and

community representatives is used to inform and

improve the design of future activities.

233

SIPEF Integrated Annual Report 2024 Sustainability Statement

ADEQUATE FOOD

SIPEF recognises that agricultural activities can

inﬂuence local food security, depending on land

use and availability. The Group is committed to

ensuring both physical and economic access to food

for its workforce and their families, many of whom

are also members of surrounding communities. It

also aims to mitigate any potential negative impacts

by prioritising responsible land development and

appropriate community consultation processes

prior to new developments.

Impacts

  

 

 , -

SIPEF engages in food provision and access initi-

atives for its employees and their families, many

of whom are also part of the surrounding commu-

nities. Food is a basic need and human right, and

ensuring reliable access is essential for people’s

well-being. Such initiatives can also help reduce

the financial burden on households, particularly

in areas where food prices and inﬂation are high.

SIPEF also supports long-term food security by

conducting social and environmental impact

assessments in consultation with local communi-

ties before new development projects begin.

(3) The financial year 2024 marks the first year SIPEF has conducted

a double materiality assessment. As a result, the specified impact

is newly identified and was not included in this exact form in

previous reporting. This assessment has been aligned with the

sustainability matters outlined in Appendix A of ESRS 1.

234 The connection to the world of sustainable tropical agriculture

Policies and commitments

While SIPEF does not have a standalone policy

dedicated solely to food provision or food security,

its RPP encompasses broader commitments to

supporting and protecting the rights of local and

indigenous communities.

Under the RPP, SIPEF is also committed to achiev-

ing 100% RSPO certification across its operations.

The RSPO P&C require companies to consider local

food and water security as integral components

of the FPIC process. This involves conducting

participatory social and environmental impact

assessments and engaging in collaborative land

use planning with local communities to evaluate

all food and water provisioning options, ensur-

ing transparency throughout the land allocation

process.

To view more information on the development,

governance, and communication of the RPP and

RPuP, please see ‘General information’.

Actions, targets, and monitoring

As part of the FPIC process and in alignment

with RSPO requirements, SIPEF carries out

participatory land use planning with local com-

munities prior to new developments. During this

process, food and water provisioning needs are

considered, and key areas for food production

are identified and mapped. All areas important

for providing food gardens are identified and

excluded from any future development plans.

SIPEF also implements a range of initiatives across

its operations to improve access to and aordability

of food for employees, their households, and nearby

communities. These include the direct provision

of food or subsidies, the allocation of gardening

areas, and training to support household-level food

production.

Targets, progress, and monitoring

While no specific targets have been set in relation

to enhancing food access and aordability, SIPEF

ensures compliance with RSPO requirements

related to food security and continues to monitor

food provision initiatives across its operations.

235

SIPEF Integrated Annual Report 2024 Sustainability Statement

Initiatives to increase food accessibility and affordability

In Indonesia, employees and their families

receive up to 47 kg of rice per household per month.

Residential compounds include designated areas

for food gardening, supported with empty fruit

bunches (EFB) from SIPEF mills, which are used

as organic fertiliser.

Under the SIPEF Biodiversity Indonesia (SBI)

programme, SIPEF supports 376 farmers from

nearby communities with technical assistance

and seedlings to establish food gardens and tree

crops. The initiative aims to diversify incomes while

supporting forest protection within SBI’s 12 762

hectares of conservation area.

In Papua New Guinea, where inﬂation remains

high and store-bought food is costly, some planta-

tion compounds provide land for food gardening.

This supports household food access while helping

prevent encroachment into conservation areas.

HOPL has also begun training women in com-

pounds to improve food gardening skills.

In Côte d’Ivoire, all employees are provided a

fixed monthly subsidy for the purchase of rice. In

2024, these subsidies were increased by 36% from

the previous year to accommodate the rising cost

of food in the country.

Across all locations, residential areas have

established local stores or canteens, run by the

employees or their family members. SIPEF supports

these establishments by subsidising the transpor-

tation of goods or oering capital when necessary.

The stores are subject to cost control measures to

ensure prices are kept locally competitive.

ADDRESSING COMMUNITY GRIEVANCES

SIPEF is committed to addressing and remedying

any material negative impacts on aected com-

munities. The Group has established an eective

grievance mechanism, which all stakeholders,

including local and indigenous community mem-

bers, can use to report any incidents of misconduct

or violation of community rights. These can include,

but are not limited to, land disputes and compensa-

tion for the loss of legal, customary, or user rights.

Multiple channels have been established to facil-

itate direct communication and accessibility.

Community members and stakeholders can sub-

mit grievances at any SIPEF oce, via an ocial

online form, or by email. The grievance process

also enables the expression of concerns through

chosen representative institutions, including those

specific to Indigenous communities such as cus-

tomary councils, local NGOs, traditional chiefs, or

committees formed within the communities. This

ensures that all community members, regardless

of their location or literacy level, can voice their

concerns eectively.

236

The connection to the world of sustainable tropical agriculture

To support accessibility, SIPEF ensures that its

grievance procedures are publicly communicat-

ed and available online. Community members

engaged through SIAs, and regular consultations

are informed of the available channels, as required

by the RSPO. The system allows for anonymous

reporting, ensures confidentiality, and includes

explicit protection against retaliation, as outlined

in SIPEF’s Grievance Policy.

In 2024, no severe human rights issues or incidents

connected to aected communities were report-

ed through SIPEF’s grievance mechanism. This

includes cases defined by the ESRS as severe human

rights incidents or violations under the UN Guiding

Principles and OECD Guidelines.

More information on SIPEF’s grievance proce-

dures and policy, including how grievance data

is compiled, how issues are tracked, and how the

eectiveness of the mechanism is monitored, is

available in 'G1: Business conduct'.

237

SIPEF Integrated Annual Report 2024 Sustainability Statement

S4: Consumers and end-users

SIPEF is unique in its leadership as a supplier of

fully traceable, high-quality, low-contaminant palm

oil products and bananas, with a commitment to

achieving 100% sustainability certification. These

attributes help dierentiate SIPEF in certain mar-

kets, and are central to the Group’s mission and

Balanced Growth Strategy. Sustainability certi-

fication and traceability are crucial for providing

customers and consumers with access to quality

information, ensuring transparency, and building

trust. Providing high-quality and low-contaminant

products ensures consumer health and safety.

The Group’s focus on certification, traceability,

quality, and safety is realised through cross-cutting

goals that are important from both a business and

a sustainability perspective.

SUMMARY OF KEY CONTENTS

MATERIAL SUSTAINABILITY

MATTERS

APPLICABLE

POLICIES

TARGETS KEY UPDATES

• Access to (quality)

information

• Responsible

Plantations

Policy (RPP)

• No target. • Maintained 100% traceability for

all palm oil and banana products

• Launched an upgraded version of

GeoSIPEF to enhance traceability

and transparency

• Health and safety • Install washing plants at three

mills by 2026, as part of SIPEF’s

chloride reduction programme.

• Achieve food safety certification

for SIPEF’s ten palm oil mills in

Indonesia and Papua New Guinea

by 2028.

• Commissioned the first crude

palm oil (CPO) washing facility,

successfully delivering the first

shipment of washed CPO with

positive results

• Set a new target to achieve food

safety certification for all palm oil

mills by 2028

238 The connection to the world of sustainable tropical agriculture

CONSUMERS AND ENDUSERS OF SIPEF PRODUCTS

SIPEF’s operations focus on the cultivation of oil

palms and bananas. Palm oil products are sold as

crude palm oil (CPO), palm kernels (PK), and crude

palm kernel oil (CPKO) to refineries and distribu-

tors. These entities further process and refine the

products for industries including food, chemicals,

cosmetics, and biofuels, which ultimately reach

consumers through retailers and supermarkets

worldwide.

In its banana operations, SIPEF manages packag-

ing and transportation but does not sell directly

to consumers. Bananas are sold to ripeners and

distributors, who supply supermarkets and retailers

for consumer purchase.

Although SIPEF’s products are ultimately used in

consumer markets, end-users were not included

in the scope of disclosure because SIPEF does not

manufacture or distribute final consumer goods. Its

role is limited to the upstream supply of raw mate-

rials, which are further processed and incorporated

into consumer products by downstream entities.

As a result, the material impacts identified by

SIPEF’s double materiality assessment and dis-

closed in this section relate primarily to consumers

purchasing products containing palm-derived

ingredients or fresh bananas. These impacts centre

on consumer health and safety, as well as access to

quality information.

For detailed information on how SIPEF’s products

move through the supply chain to reach consumers,

see SIPEF’s palm oil and banana value chains in

the Company Report.

ACCESS TO QUALITY INFORMATION

Reliable and transparent sustainability reporting

is essential for internal decision-making, risk man-

agement, and building trust with customers and

stakeholders. Traceability and clear disclosures

provide SIPEF with valuable insights into its supply

chain and business partners, ensuring compliance

with sustainability commitments and regulatory

requirements.

As SIPEF’s products move through global supply

chains, traceability ensures their sustainability

and enables customers and consumers to make

informed choices. While SIPEF’s direct engagement

is primarily with refiners (for palm oil) and distri-

bution companies (for bananas), its commitment to

producing 100% sustainability certified and fully

traceable products remains a key priority for both

commercial and sustainability objectives.

239

SIPEF Integrated Annual Report 2024 Sustainability Statement

Impacts

     

 

 , -

Traceability is a fundamental principle for sustain-

ability in agricultural commodity supply chains. It

is also essential for ensuring food safety, meeting

consumer demands for transparency, complying

with regulations, and improving supply chain man-

agement and eciency. Without a good traceability

system customers and consumers would not be able

to ascertain that the products they buy are indeed

sourced from certified estates or smallholder pro-

ducers, and therefore whether they contribute to

environmental, social, and economic sustainability.

    

 

 , -

The extent to which SIPEF is transparent about

its operations, sourcing practices, and environ-

mental impact can inﬂuence public discourse, and

the confidence customers and consumers have in

the Group. If SIPEF does not report transparently

it could prevent consumers, investors, activists,

and researchers from having informed discussions

about sustainability, ethics, corporate responsibil-

ity, and the industry’s performance. It could also

prevent customers and consumers from making

informed decisions on the products they buy.

While SIPEF does not sell directly to con-

sumers, it is connected to these potential material

impacts through its business relationships with

refineries, distributors, and other downstream

entities that process and market its palm oil and

banana products. Because these entities rely on

verified sourcing, ensuring full traceability and

sustainability certification at the upstream stage

is critical to maintaining transparency throughout

the supply chain. The eectiveness of traceability

and transparent reporting also directly impacts

SIPEF’s ability to meet regulatory and customer

requirements, manage reputational risks, and

maintain market access.

Risks and opportunities

SIPEF’s double materiality assessment did not

identify any material risks or related opportunities

related to access to quality information.

(1) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impacts are newly

identified and were not included in these exact forms in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

240 The connection to the world of sustainable tropical agriculture

Current and anticipated effects

Since no material risks or opportunities related to

access to quality information were identified, there

are no reported current or anticipated eects on the

Group's business model, value chain, strategy, or

decision-making. Additionally, no financial eects

on the Company’s financial position, performance,

or cash ﬂows are reported.

Resilience of strategy and business model

As part of its dedication to responsible supply chain

management, SIPEF has a long-standing commit-

ment to 100% sustainability certified products,

supported by a fully traceable supply chain. These

priorities are embedded in the Group’s mission and

strategy, and provide customers with assurance

that sustainability requirements are being met.

Through third party audits, compliance checks,

and digital traceability systems, customers and

consumers receive accurate, verifiable informa-

tion about SIPEF’s sustainability performance.

By maintaining this high level of transparency

and accountability, SIPEF not only strengthens

relationships with key stakeholders but also ensures

continued compliance with evolving market regu-

lations and consumer expectations, reinforcing its

competitive position.

Policies and commitments

SIPEF’s Responsible Plantations Policy (RPP)

commits the Group to achieving 100% traceability

and sustainability certification for all palm oil and

banana products. SIPEF also commits to disclosing

shipment origins upon request to customers and

relevant stakeholders.

Under the RPP, SIPEF is also committed to trans-

parent sustainability reporting, including annual

disclosures on the progress of its sustainability

strategy, the RPP, and supporting policies. SIPEF’s

annual reporting focuses on aligning with leading

reporting frameworks, stakeholder expectations,

and regulatory requirements.

For more information on the development, govern-

ance, and communication of the RPP, see ‘General

Information’.

241

SIPEF Integrated Annual Report 2024 Sustainability Statement

Actions, targets, and monitoring

SIPEF’s investment in its traceability systems,

sustainability certifications, and sustainability

reporting demonstrate the Group’s commitment

to traceability and sustainability. These actions

have not required significant operational Capex

or Opex. No other significant financial resources

would be applicable.

Palm oil traceability

In 2024, SIPEF maintained 100% traceability

for its palm oil products.

All volumes sold were traceable to their place of

production, either a SIPEF-managed estate or a

mapped smallholder plot.

As a certified member of the RSPO, SIPEF is

required to use the RSPO traceability system,

which includes a digital sustainability platform

for tracking certified product volumes. The RSPO

applies dierent supply chain models - Identity

Preserved (IP), Segregated (SG), and Mass Balance

(MB) - which define the level of segregation between

certified and non-certified products as they move

through the supply chain. The highest level of trace-

ability is the IP model, where certified products

remain completely separate from non-certified ones

throughout the supply chain. The SG model also

maintains physical separation from non-certified

products but allows mixing of certified products

from dierent sources. The MB model permits mix-

ing, provided that the volume of certified products

sold does not exceed the certified input.

In 2024, nine of SIPEF’s ten mills were RSPO certi-

fied, with eight operating under the IP supply chain

model. One mill, Dendymarker Indah Lestari in

South Sumatra, operates under the MB model as a

portion of its supply base is currently undergoing

the RSPO certification process. A new mill, Agro

Muara Rupit in South Sumatra, became operational

in July 2024 and has initiated preparations for

certification. The aim is to complete certification

for this mill and any remaining uncertified supply

base of Dendymarker Indah Lestari by 2030, in line

with SIPEF’s RSPO Time Bound Plan.

SIPEF’s palm oil mills source exclusively from

Company-owned plantations and from small-

holders whose production locations are known

and mapped. As such, while some of Dendymarker

Indah Lestari’s supply base is not yet certified, all

of it is fully traceable.

Additionally, SIPEF’s two kernel crushing plants

managed by Hargy Oil Palms Ltd (HOPL) in Papua

New Guinea are RSPO certified under the SG supply

chain model, with all supply bases fully mapped.

Banana traceability

In 2024, SIPEF maintained 100% traceability

for all banana volumes sold.

All banana plantations and packing stations at

Plantations J. Eglin SA (Plantations J. Eglin),

SIPEF's subsidiary in Côte d'Ivoire, are certified

under the IP supply chain model in accordance with

Rainforest Alliance certification requirements.

The company also holds full certification under

GLOBALG.A.P. and Fairtrade, ensuring compli-

ance with the traceability requirements of these

standards.

242

The connection to the world of sustainable tropical agriculture

GeoSIPEF: Enhancing transparency and compliance

To provide further traceability assurance to its

palm oil customers and consumers, SIPEF provides

detailed traceability data through its online inter-

active mapping platform, GeoSIPEF. The platform

displays production locations, sustainability cer-

tified volumes, and monitoring layers for fire and

deforestation incidents.

In October 2024, SIPEF launched an upgraded

version of GeoSIPEF with new features, including

a dedicated customer portal that oers advanced

traceability insights, while ensuring data privacy

and security. The portal enables customers to

track their purchased volumes from plot to mill

to shipment securely, safeguarding sensitive supply

chain information. The update also enhances geo-

spatial mapping for monitoring sourcing areas and

integrates automated compliance management to

streamline certification processes. These improve-

ments align with the latest EU Deforestation

Regulation (EUDR) requirements, ensuring SIPEF

remains at the forefront of supply chain transpar

ency and regulatory compliance.

243

SIPEF Integrated Annual Report 2024 Sustainability Statement

Transparency in reporting

SIPEF reports annually on its sustainability

progress, striving to enhance transparency and

align its disclosures with evolving sustainability

standards. In 2024, the Group improved its sus-

tainability reporting to meet the requirements

of the EU Corporate Sustainability Reporting

Directive (CSRD) and the related European

Sustainability Reporting Standards (ESRS). The

2024 Sustainability Statement underwent external

limited assurance, enhancing the credibility and

accuracy of the disclosed information.

SIPEF also participates in sustainability ratings

and benchmarks relevant to its operations, lever-

aging these assessments to identify improvement

areas, support strategic decision-making, and pro-

gressively strengthen its transparency practices.

In 2024, SIPEF improved its scores across several

sustainability benchmarks, reflecting ongoing

progress toward its transparency objectives.

Benchmark scores in 2024

Sustainability ratings and benchmarks provide

valuable insights into SIPEF’s performance on

sustainability reporting relative to its peers, while

supporting strategic decision-making internally.

Targets and monitoring

SIPEF has not set specific targets to address the

potential material impacts identified regarding con-

sumer and end-user access to quality information.

The Group has already achieved full traceability of

its supply chain, and aims to maintain this status

while enhancing transparency for stakeholders

through digital traceability systems and verifica-

tion. Additionally, SIPEF continues to improve its

sustainability reporting transparency by aligning

disclosures with rating criteria and benchmarks

and complying with emerging regulations and

reporting standards, such as the EUDR and CSRD.

SIPEF has set a target to achieve 100% RSPO cer-

tification of its palm oil supply base by 2030, which

has implications for the verification of traceable

palm oil volumes, as previously explained under

‘Palm oil traceability’.

Read more about the targets and progress made in

the Company Report and in Annex 1.

244

The connection to the world of sustainable tropical agriculture

BENCHMARK SCORES IN 2024

Ranked 14th out of 100 palm oil companies in 2024, with a

score of 88.8%. This is a slight score decrease of 0.1% from

2023.

Developed by the Zoological Society of London (ZSL), the

Sustainability Policy Transparency Toolkit (SPOTT) scores

palm oil, tropical forestry, and natural rubber companies

annually against over 100 sector specific ESG indicators to

benchmark their progress over time.

 www.spott.org/palm-oil/

Ranked 4th out of 350 companies in 2023; score 65.9%, a

score increase of 10% from 2023.*

Forest 500 identifies and ranks the most inﬂuential com

panies and financial institutions in forest risk commodity

supply chains.

 forest500.org/rankings/companies

* The 2024 score has not yet been released.

Forests

submission score in 2024:

B (Management)

Climate Change

submission score in 2024:

C (Awareness)

Forests

2024

CDP

Climate Change

2024

14th

out of 100 palm

oil companies

SPOTT

Sustainability Policy Transparency Toolkit

Forest 500

4th

out of 350

companies

CDP is a not-for-profit charity that runs the global disclo-

sure system for investors, companies, cities, states and

regions to manage their environmental impacts.

 www.cdp.net

245

SIPEF Integrated Annual Report 2024 Sustainability Statement

HEALTH AND SAFETY OF CONSUMERS

Ensuring the health and safety of consumers is a

fundamental priority in the food industry. Food

safety and quality begin at the agricultural pro-

duction level, with product quality, safe handling,

contaminant control, and residue management

playing a critical role. While SIPEF’s products

undergo further processing, distribution, and

regulatory checks before reaching end markets,

the Company remains committed to maintaining

product integrity from the start.

As a responsible producer, SIPEF prioritises

stringent safety, hygiene, quality-enhancement

and sustainability measures to prevent health

risks, maintain nutritional value, and ensure

compliance with regulatory standards. SIPEF also

actively innovates within the palm oil industry to

minimise contaminants at source and prevent their

transformation in the downstream refining process.

Impacts

Palm oil

     

 , -

 At the refining stage of palm oil, high

temperatures can lead to the formation of

compounds such as 3-monochloropropane-

1,2-diol (3-MCPD) and Glycidyl Esters (GE).

3-MCPD is considered a contaminant because

high consumption of the compound may lead

to potential health concerns, especially among

younger age groups. High levels of GEs in food

are genotoxic and carcinogenic and therefore

have the potential to affect the health of

consumers. The main precursor to a higher risk

of 3-MCPD and GE formation in the refining

process is the level of chloride in CPO.

 Due to the hydraulic oils used in machines,

adhesives, printer inks, and packaging materials,

mineral oil hydrocarbons, such as mineral oil

saturated hydrocarbons (MOSH) and mineral

oil aromatic hydrocarbons (MOAH) can enter

palm oil at dierent stages, including cultivation,

processing, storage, or transportation. These

components raise health concerns. MOSH can

accumulate in the liver and lymphoid system,

leading to inflammation, while MOAH is

potentially carcinogenic.

Given SIPEF’s upstream position and the multiple

intermediaries involved before products reach

consumers, the Company’s direct control over

the downstream health impacts linked with con-

taminants is limited. Nevertheless, SIPEF actively

prioritises strict quality controls to minimise these

contamination risks at the earliest possible stages

within its operational scope.

(2) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impacts are newly

identified and were not included in these exact forms in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

246 The connection to the world of sustainable tropical agriculture

Bananas

   

  

 , -

Bananas contain fibre, potassium, folate, and anti-

oxidants, such as vitamin C, all of which support

heart health. A 2017 review found that people who

follow a high fibre diet have a lower risk of cardi-

ovascular disease than those on a low fibre diet.

Bananas are also aordable and can be grown all

year round, making them an excellent source of

easily accessible nutrition, globally.

    

 , -

The consumption of bananas can have negative

health impacts if the fruits are contaminated with

pesticide residues. These can include chronic health

issues. Long-term exposure to certain pesticide

residues can contribute to serious health problems

such as cancer, hormone disruption, and neuro-

logical issues.

SIPEF’s banana operations involve selling directly

to ripening and distribution centres, from which

products are delivered to retailers and ultimately

purchased by consumers. As this distribution struc-

ture places SIPEF closer to consumers compared

to its palm oil products, ensuring product safety

and minimising pesticide residues aligns directly

with the Company’s strategy and business model,

as well as consumer health expectations.

Risks and opportunities

Without strong quality control measures and

regulatory alignment, SIPEF could face finan-

cial, operational, and reputational risks related

to consumer health and safety, while proactive

investment in product integrity and traceability

presents opportunities for market dierentiation

and compliance leadership.

The following risks and opportunities

were iden-

tified by SIPEF’s double materiality assessment.

(3) All risks are newly identified, with the exception of 'Product defects' and 'Product liability,' which have been derived from SIPEF’s previous

annual business risk assessment, conducted and approved by the audit committee and board of directors in 2023. These risks have been updated

with additional descriptions and aligned with the sustainability matters prescribed by Appendix A of ESRS 1.

247

SIPEF Integrated Annual Report 2024 Sustainability Statement

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Product defects In the context of SIPEF, this risk pertains

to the possibility of defects in the quality or

safety of palm oil products, including issues

related to processing, contamination, or

adherence to industry standards. Product

defects can result in product recalls, legal

claims, and damage to SIPEF's reputation.

Within SIPEF, opportunities exist in

establishing quality assurance protocols,

engaging with certification programmes for

sustainable and safe production practices,

and actively seeking customer feedback

for continuous improvement. Proactively

managing product quality can enhance

customer satisfaction and protect SIPEF's

brand reputation.

SIPEF’s approach:

Ensuring the highest quality and safety standards for its palm oil products is a core priority for

SIPEF.

The Company implements robust quality assurance protocols from plantation management to

processing and final product delivery. By adhering to internationally recognised food safety and

sustainability certification standards, SIPEF makes sure that its products meet industry and

regulatory requirements.

To minimise the risk of contamination and defects, SIPEF invests in advanced processing tech

nologies that enhance product integrity and reduce impurities, including CPO washing facilities

for chloride removal. Beyond technical improvements, SIPEF actively engages with customers

and industry stakeholders to refine its quality management systems.

Product liability In the context of SIPEF, the risk of product

liability pertains to the possibility of palm

oil products causing harm or not meeting

safety and quality standards. This could

result in legal claims from consumers,

regulatory fines, and damage to SIPEF's

reputation as a responsible and reliable

supplier of palm oil products.

Within SIPEF, opportunities exist in imple

menting traceability systems for products,

participating in industry initiatives for

responsible production, and engaging with

consumers through educational campaigns

on the safety and quality of palm oil.

Proactively addressing product liability risks

can enhance consumer trust and protect

SIPEF's brand reputation.

SIPEF’s approach:

SIPEF prioritises high safety and quality standards to minimise product liability risks. The

Company complies with international food safety and sustainability standards, reducing the risk

of product recalls, legal claims, or regulatory penalties.

To strengthen risk mitigation, SIPEF implements a robust traceability system, which assures its

customers and other stakeholders that all of its agricultural products can be traced back to certi

fied, responsibly managed sources. SIPEF also invests in contaminant reduction, including CPO

washing processes to minimise chloride levels, as well as the control and reduction of MOSH and

MOAH. By integrating traceability, certification, and quality control, SIPEF reinforces consumer

trust and safeguards its reputation as a reliable supplier.

248 The connection to the world of sustainable tropical agriculture

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

EU Market

restrictions on

palm oil

New legislation (e.g. EU RED II legislation)

could make it more dicult for palm

oil companies to export CPO to the EU,

resulting in lower commodity prices due to

reduced demand. This would mainly have an

eect on SIPEF’s subsidiary, HOPL, in Papua

New Guinea. In Indonesia, the produced

palm oil is sold mostly in Indonesia itself. If

SIPEF would not be able to sell the palm oil

produced in Papua New Guinea to customers

in EU countries, this would result in labour

losses. Further, as the demand for palm

oil decreased this could result in a lower

global commodity price for palm oil. This

would have a negative impact on the Group's

profitability, resulting in less cash for capex

investments, a decrease in share price, and

potential labour loss, or the need for large

investments to replace the palm trees for

another plant (such as bananas).

Maintaining high sustainability standards

that are aligned with new EU legislation will

ensure that SIPEF can continue to sell to the

EU. SIPEF is already working towards 100%

RSPO certification, meaning that there is an

opportunity to ensure that any gaps between

RSPO requirements and new EU legislation

can be detected and remedied. At the same

time, it will be important to work closely

with the EU to ensure that legislation aligns

with RSPO requirements.

SIPEF’s approach:

SIPEF mitigates the risks of EU market restrictions by ensuring its palm oil production meets

the highest sustainability and traceability standards. With a 100% RSPO certification target, the

Company is well-positioned to comply with evolving EU regulations, including EU RED II and

the EUDR. By aligning its policies and practices with these standards, SIPEF mitigates the risk of

losing access to the EU market, particularly for its operations in Papua New Guinea, which relies

heavily on European demand.

To maintain compliance and secure market access, SIPEF conducts regular gap assessments

between RSPO requirements and new EU legislation, ensuring any discrepancies are identified

and addressed. The Company also invests in enhancing its traceability systems, including

GeoSIPEF, to provide verifiable proof of sustainable sourcing, a key requirement under the

EUDR. Furthermore, SIPEF is actively engaging with EU policymakers, industry associations,

and certification bodies to advocate for an approach that recognises RSPO certified palm oil as

meeting EU sustainability criteria.

By maintaining high sustainability standards, strengthening traceability, and engaging with

policymakers, SIPEF safeguards its market position, profitability, and workforce stability in the

face of EU market restrictions on palm oil.

249

SIPEF Integrated Annual Report 2024 Sustainability Statement

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Palm oil restric-

tions in markets

outside the EU

New legislation could result in SIPEF no

longer being able to sell its palm oil in other

markets outside the EU. This could result

in decreased demand, aecting the palm oil

industry's revenue and profitability.

Embracing and investing in research and

development for sustainable and innovative

palm oil products can be an opportunity for

SIPEF.

Exploring markets for biofuels, specialty

oils, or other value-added products derived

from palm oil can mitigate the impact of

potential substitutes.

SIPEF’s approach:

To address the risk of palm oil restrictions in markets outside the EU, SIPEF is actively diversify

ing its product oerings and enhancing sustainability eorts.

As global regulatory frameworks evolve, SIPEF ensures that its palm oil production aligns with

the highest environmental, social, and governance (ESG) standards, strengthening its position in

markets that prioritise sustainability and traceability.

A key part of this strategy is continued investment in research and development (R&D) to create

high-quality, innovative palm oil products. SIPEF is already implementing low-contaminant

production processes, such as CPO washing to reduce chloride, making its products more attrac

tive for premium food and cosmetic applications. Additionally, SIPEF is assessing the potential

for palm oil milling by-products to be used in biofuels and specialty oils, reducing reliance

on traditional commodity markets. This strategy ensures that SIPEF will still be a preferred

supplier, both in the EU as well as outside the EU, in the case of regulatory changes restricting

access to markets.

Strengthening market diversification and supply chain ﬂexibility ensures that SIPEF can navigate

global regulatory changes while maintaining profitability and long-term growth.

250 The connection to the world of sustainable tropical agriculture

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Reputation

damage

A widespread rejection of palm oil due to

environmental, social, or health concerns

could harm the reputation of companies

associated with the palm oil supply chain,

including SIPEF.

No material opportunities identified.

SIPEF’s approach:

SIPEF mitigates these reputational risks by positioning itself as a leader in sustainable,

high-quality palm oil production. With a commitment to 100% RSPO certification, including for

its smallholder suppliers, SIPEF ensures that all its palm oil is produced in line with the highest

sustainability standards. By extending certification eorts to smallholder suppliers, SIPEF

reinforces its dedication to responsible sourcing and strengthens trust with consumers, regula

tors, and industry stakeholders.

Innovation and technology-driven transparency also play a key role mitigating these risks.

Through RSPO certification and tools like GeoSIPEF, the Company can demonstrate that it main

tains full traceability of its palm oil supply chain, allowing customers and regulators to verify

compliance with its no deforestation, no peat, and no exploitation (NDPE) policies. Furthermore,

SIPEF continues to invest in processing improvements, such as CPO washing facilities, to address

health and safety concerns in premium markets.

As public scrutiny of palm oil remains high, SIPEF actively engages with industry associations,

policymakers, and sustainability initiatives to advocate for responsible palm oil production.

By maintaining full compliance with global sustainability standards, leveraging innovation for

transparency, and reinforcing its market position as a trusted supplier of more sustainable palm

oil, SIPEF ensures that it remains resilient against industry-wide reputational challenges.

Contaminant

detecting

technology

Improved technologies are detecting more

contaminants in palm oil products that have

health implications. This is putting addi

tional requirements on oil producers with

regards to implementing additional quality

control technologies.

SIPEF has opportunities to continue to

invest in projects that improve its palm oil

quality with close coordination with its

customers.

SIPEF’s approach:

SIPEF proactively addresses the increasing scrutiny on contaminants in palm oil by investing in

advanced quality control processes and technologies and strengthening its collaboration with

customers to meet evolving industry standards.

Recognising the heightened focus on compounds and contaminants such as 3-MCPD, GE, and

MOSH and MOAH, SIPEF has implemented processing improvements to reduce the risk of

their formation in downstream processes. One key initiative is the development of CPO washing

technology, which significantly reduces chloride content, a precursor to 3-MCPD formation

during the refining process. This innovation ensures SIPEF’s palm oil meets the strict food safety

limits set by European and global food safety authorities.

By maintaining an open dialogue with customers and regulatory bodies, SIPEF ensures that its

quality control measures align with the latest safety requirements and market expectations.

Continuous investment in contaminant detection, mitigation strategies, and processing innova

tion reinforces SIPEF’s position as a supplier of premium, low-contaminant, and fully traceable

palm oil products, safeguarding both regulatory compliance and consumer confidence.

251

SIPEF Integrated Annual Report 2024 Sustainability Statement

Current and anticipated effects

In line with its double materiality assessment,

SIPEF has assessed the likelihood of the identified

impacts and risks occurring, together with their

potential financial impacts. SIPEF has assessed that

these impacts and risks are not expected to have a

material financial impact on the Group, including

its financial position, financial performance, and

cash ﬂows. Nevertheless, the Group has implement-

ed eective measures to mitigate these risks.

Resilience of strategy and business model

Ensuring consumer health and safety strengthens

the resilience of SIPEF’s strategy and business

model by safeguarding market access, brand

reputation, and long-term competitiveness. The

Group’s strategic focus on maintaining robust

traceability systems, stringent safety and quali-

ty standards, and comprehensive sustainability

certifications directly supports its ability to meet

evolving consumer expectations and regulatory

requirements. By proactively addressing potential

risks related to contamination or pesticide residues

through rigorous traceability controls and contin-

uous improvement in food safety practices, SIPEF

enhances trust with customers and end-consumers.

Policies and commitments

While SIPEF does not have a standalone policy on

consumer health and safety, ensuring the safety

and quality of its palm oil products and bananas

remains a strategic and commercial priority.

The Group is committed to full compliance with

legal and regulatory standards, ensuring that all

products meet the strict food safety regulations of

their destination markets. SIPEF’s approach is not

only driven by regulatory obligations but also by its

ambition to position itself ahead of competitors in

supplying premium-quality, low-contaminant CPO.

Actions, targets, and monitoring

SIPEF reinforces its commitment to consumer

health and safety through rigorous product safe-

ty controls, certification, and advanced quality

assurance processes across its palm oil and banana

operations. As part of this commitment, SIPEF

adheres strictly to internationally recognised

food safety management systems and complies

with all relevant regulatory frameworks in its

destination markets. No significant Capex or Opex

were required to implement related actions during

the financial year. No other significant financial

resources would be applicable.

Further details on actions and projects linked with

consumer health and safety are presented on the

following page, and in the Company Report.

252

The connection to the world of sustainable tropical agriculture

Palm oil

  3- 

  

In 2023, SIPEF initiated eorts to reduce chlo-

ride levels in CPO by investing in dedicated CPO

washing facilities. The first washing facility was

commissioned at an Indonesian mill in 2024.

Standard operating procedures (SOPs), internal

testing protocols, and chloride measurement capa-

bilities were developed for the mill. SIPEF engaged

with selected refining customers in testing and

externally validating results, sharing data, and col-

laboratively striving for continuous improvement.

The first shipment of washed CPO was delivered

with positive results, placing SIPEF in a leading

position to produce CPO with a significantly lower

chloride level compared to industry peers. In 2025,

SIPEF will continue expanding its CPO washing

capacities to meet customer demands for premi-

um-quality, low-chloride CPO.

  

   

SIPEF has made significant investments in quality

enhancement initiatives for palm oil products. The

Group has completed the conversion of all mill

machinery to H1 food-grade lubricants, which are

free from potentially harmful mineral oil saturated

hydrocarbons (MOSH) and mineral oil aromatic

hydrocarbons (MOAH). The conversion started in

2022 at SIPEF’s three mills in Papua New Guinea

and was completed across its mills in Indonesia by

the close of 2023.

Additionally, a comprehensive programme was

implemented to refurbish, upgrade, or replace

machinery with a clear focus on contamination

prevention, robust maintenance, and operational

best practices. In collaboration with customers,

SIPEF established a regime for monthly sampling

of CPO to test MOSH and MOAH levels against

standard requirements.

Throughout 2024, all CPO produced showed a

significant reduction in MOSH and MOAH con-

tamination, positioning SIPEF’s CPO as superior

in quality compared to the industry average. While

no ocial limits have been set, SIPEF follows EFSA

guidance values to establish internal benchmarks.

Bananas

  



SIPEF strictly complies with maximum residue

levels (MRLs) for pesticide residues established

by the United Kingdom (UK) and European Union

(EU) regulations. The European Food Safety

Authority (EFSA) and UK regulatory bodies set

MRL standards for food products, including banan-

as, assessing safety based on toxicity data for over

1 000 agricultural pesticides.

Bananas supplied by SIPEF are cultivated using

approved pesticides, strictly adhering to MRL

requirements set by Rainforest Alliance and

GLOBALG.A.P. certification, destination mar-

kets, and customer specifications. SIPEF uses the

Foodexpert platform to provide transparent pesti-

cide management, submitting its plant protection

products list (PPPL) for compliance verification

against UK and EU MRL regulations. Approved

PPPLs and residue analysis reports are regularly

shared with customers and downstream retailers.

253

SIPEF Integrated Annual Report 2024 Sustainability Statement

    

SIPEF’s fruit department conducts regular sim-

ulations at Plantations J. Eglin, testing response

readiness against hypothetical food safety or

non-conformity incidents, such as the detection

of foreign objects or consumer-reported health

concerns. These tests evaluate the robustness,

timeliness, and functionality of SIPEF’s traceability

system. Simulated incidents are thoroughly traced

to their origin, treatment methods, and involved

personnel, ensuring internal and customer com-

munication is completed within 24 hours.

Additionally, multiple residue analyses were con-

ducted across estates in 2024 to verify compliance

with UK and EU MRL standards and customer

specifications. No food safety or quality incidents

were reported, confirming the effectiveness of

SIPEF’s preventive and detection mechanisms and

enabling the consistent delivery of high-quality,

low-contaminant bananas.

Targets and monitoring

SIPEF has set measurable targets in line with

SIPEF’s commitment to producing high-quality,

sustainable, and traceable agricultural products.



1. Install washing facilities at three mills by

2026, as part of SIPEF’s chloride reduction

programme.

2. Achieve food safety certification for SIPEF’s

ten palm oil mills in Indonesia and Papua New

Guinea by 2028.

Consultations were held with SIPEF’s regional

sustainability teams and regional executive com-

mittees for the setting and approval of both targets,

with additional input from the engineering and

marketing departments for the first target. While

consumers were not directly consulted in target

setting, the Group has closely collaborated with

refining customers in the implementation and

monitoring of the chloride reduction programme.

SIPEF will continue to monitor the progress of

both targets. The chloride reduction programme is

being tracked through the ongoing measurement

of chloride levels in CPO, as outlined earlier. Set in

2024, preparations for the food safety certification

target have recently commenced, and a monitoring

framework will be developed as implementation

progresses.

Further information on the targets is provided in

the Annex 1.

254

The connection to the world of sustainable tropical agriculture

ENGAGEMENT WITH CONSUMERS

As an upstream producer, SIPEF does not engage

directly with consumers in its palm oil and banana

value chains. However, the Group strictly adheres

to all applicable regulatory requirements set by

destination markets and authorities, including the

European Food Safety Authority (EFSA). SIPEF

engages continuously throughout the year with

its immediate customers, including refiners in

the palm oil segment and ripeners and retailers in

the banana business. This engagement takes place

through face-to-face meetings and ongoing dia-

logue, allowing the Company to respond eectively

to consumer-related concerns raised by customers.

These include proactive initiatives addressing con-

tamination risks such as those linked with 3-MCPD,

MOSH, and MOAH, which are key concerns in the

EU edible oils sector.

The marketing department, led by the chief com-

mercial ocer, is responsible for engagement in the

palm oil segment, while the fruits department, led

by the fruits department manager, manages engage-

ment in the banana business. These departments

ensure that customer insights inform SIPEF’s qual-

ity management approach and market compliance

strategies.

A general description of sustainability governance,

along with an overview of how SIPEF determines

necessary actions in response to actual or poten-

tial material impacts, can be found in ‘General

Information’.

GRIEVANCES AND REMEDIATION

SIPEF’s grievance mechanism allows all stake-

holders, including consumers, to raise concerns or

report incidents related to any identified material

impacts, ensuring accountability and enabling

appropriate remediation if needed. The mecha-

nism allows individuals to voice their grievances

directly to SIPEF online via email or an online

grievance form available on the Company web-

site. The grievance mechanism also provides the

option for anonymous reporting and ensures that

all submissions are handled with strict confiden-

tially. SIPEF’s Grievance Policy explicitly stipulates

protection against retaliation for individuals using

these channels to raise concerns or needs. SIPEF

has not yet evaluated consumer awareness of or

trust in its grievance process as an eective channel

for expressing and resolving their concerns.

More information on SIPEF’s grievance procedures

and policy, including how issues are tracked and

how the eectiveness of the mechanism is moni-

tored, is available in ‘G1: Business conduct’.

255

SIPEF Integrated Annual Report 2024 Sustainability Statement

Governance

information

Good governance is essential for ethical and sus-

tainable business practices across all industries.

It ensures transparency, accountability, and com-

pliance, enabling responsible decision-making and

long-term resilience.

For SIPEF, conducting business with integrity is

central to its Balanced Growth Strategy, building

stakeholder confidence, and supporting sustainable

development in the tropical agricultural sector.

Focus area and

sustainability goals:

  

 Foster a culture of ethical conduct amongst

management, sta, and contractors.

 Implement systems and processes to ensure the

practice of ethical conduct.

 Maintain robust policies, procedures, and

measures to address any risks, including those

associated with bribery or corruption.

256 The connection to the world of sustainable tropical agriculture

G1: Business conduct

SIPEF’s approach to good business conduct is

founded on full respect for laws and regulations,

as well as ethical principles and standards.

Good business conduct starts with good corporate

governance. SIPEF upholds strong corporate gov-

ernance by applying, amongst others, the principles

of the 2020 Belgian Corporate Governance Code

(the Code). The principles of the Code are reﬂect-

ed in SIPEF’s Corporate Governance Charter,

its Remuneration Policy, and the Group Code of

Conduct, which set out norms and expectations

for responsible and ethical management, and gov-

ernance best practices.

SUMMARY OF KEY CONTENTS

MATERIAL SUSTAINABILITY

MATTERS

APPLICABLE

POLICIES

TARGETS KEY UPDATES

• Corporate culture • Code of Conduct

• Anti-Corruption

and Anti-Bribery

Policy

• Grievance Policy

• No target. • A comprehensive policy review is

planned for 2025–2026, including

a revision of the Group Code of

Conduct in 2025

• New Anti-Corruption and Anti-

Bribery Policy released and rolled

out via training

• New grievance mechanism

procedure, Grievance Policy, and IT

solution launched.

• Achieved 100% training completion

for 478 employees in at-risk

functions across all operational

locations

• No recorded convictions or fines for

corruption and bribery in 2024

• Corruption and bribery

• Prevention and

detection including

training

• Incidents

• Annual training carried out for

100% of employees in functions-at-

risk within own operations.

• Protection of

whistleblowers

• No target.

257

SIPEF Integrated Annual Report 2024 Sustainability Statement

CORPORATE CULTURE

A strong corporate culture is shaped by shared

norms, values, and behaviours that define how a

company operates. With a presence across dierent

continents and a diverse workforce, SIPEF strives

to uphold shared values and a common working

culture, while respecting this diversity.

These principles are outlined in the SIPEF group

Code of Conduct, and supported by other Group-

and country-level policies and procedures covering

human rights, child labour, forced or tracked

labour, occupational health and safety, equal

employment opportunity, and sexual harassment.

SIPEF’s Group Code of Conduct has, since 2020,

formalised the minimum set of norms and stand-

ards that must be observed and complied with

by all its executives, employees, consultants and

contractors. As a publicly available document, it

also provides transparency on how SIPEF con-

ducts its business. The Code of Conduct outlines

SIPEF’s commitment to complying with all relevant

national and international laws and clarifies its

zero-tolerance stance on bribery and corruption,

whistleblowing, grievance handling, and the pro-

hibition of executives and sta from using Group

facilities or working hours for personal business.

Additionally, the seven Guiding Principles of

SIPEF’s Balanced Growth Strategy provides a

framework for the Group’s vision for company

culture. They emphasise reliability, long-term

decision-making, continuous improvement, sus-

tainable growth, environmental protection and

restoration, employee and community support,

and value creation for all, serving as a foundation

for responsible business practices.

Impacts

     ,

,    

 , -

SIPEF recognises the importance of fostering a

company culture that is experienced by its employ-

ees, contractors, local communities, and other key

stakeholders as supportive, fair, and just. Without

standardised policies, procedures, and measures to

communicate and uphold SIPEF’s values at all lev-

els, the Company’s ability to maintain a supportive,

safe, fair, and ethical working environment could

be aected. This, in turn, could impact employee

trust, mental and physical well-being, safety, and

security.

Awareness of this potential impact is particularly

important given the size of SIPEF’s workforce, the

nature of its operations as a tropical agricultural

producer, and its presence across various countries

with diverse cultures, languages, and customs.

Furthermore, as SIPEF’s strategy and business

model are centred on producing traceable and

sustainably certified palm oil, maintaining high

standards of business conduct is fundamental to

these eorts.

(1) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

identified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

258 The connection to the world of sustainable tropical agriculture

Risks and opportunities

Without a well-embedded company culture that

fosters a shared approach to workplace conduct

and interactions, SIPEF could face significant risks

to its financial stability and the long-term viability

of its operations.

The following risks and opportunities

relating to

corporate governance have been identified from a

pre-mitigation perspective through SIPEF’s double

materiality assessment.

(2) All identified risks, except for 'Environmental Damage Claims' and 'Reputation & Stakeholder Activism,' are derived from SIPEF’s previous

annual business risk assessment, conducted and approved by the audit committee and board of directors in 2023. These risks have been updated

with additional descriptions and aligned with the sustainability matters prescribed by Appendix A of ESRS 1.

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Director

liability

Directors not being fully informed of their

liabilities and standards risks governance

issues.

Regular training programmes and transpar

ent communication can enhance deci-

sion-making, boost reputation, attract green

investments, and lower financing costs.

SIPEF’s approach:

To mitigate the risk of directors not being fully informed of their liabilities and governance

standards, SIPEF has implemented a structured corporate governance framework that ensures

continuous education, awareness, and compliance.

This includes regular training and awareness updates, transparent reporting, and communica

tion between the board of directors, the executive committee, and the sustainability teams. This

makes sure that everyone is regularly briefed on key risks, regulatory changes, and best practices.

Furthermore, the board of directors includes members with strong sustainability and governance

expertise, ensuring well-informed decision-making in alignment with SIPEF’s Balanced Growth

Strategy. SIPEF’s governance structure also incorporates board committees that oversee specific

areas, including sustainability risks and compliance.

By proactively addressing governance risks, SIPEF strengthens its corporate reputation, enhanc

es stakeholder confidence, and ensures responsible business conduct.

259

SIPEF Integrated Annual Report 2024 Sustainability Statement

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Tax evasion issues Non-compliance with tax laws leads to legal,

financial, and reputational risks.

Establishing a robust tax compliance

programme and conducting training ensures

ethical operations and avoids financial and

legal repercussions.

SIPEF’s approach:

To mitigate the risks of potential non-compliance with tax laws, SIPEF has established a strong

governance framework that ensures full transparency, regulatory compliance, and ethical

financial management.

SIPEF fully complies with all local and international tax laws in the jurisdictions where it

operates. The Company’s finance and legal teams continuously monitor tax obligations to ensure

accurate and timely filings, minimising legal and financial risks. The Group has implemented

internal tax policies and controls to prevent non-compliance and tax evasion risks. Regular tax

audits and reviews are conducted to identify and rectify any discrepancies proactively. SIPEF

conducts regular training programmes for its finance teams and key decision-makers to ensure

they stay updated on tax regulations, reporting requirements, and ethical standards. SIPEF

collaborates with external tax advisors and auditors to maintain best practices in tax governance.

By embedding strong tax compliance measures and ethical financial governance, SIPEF enhances

stakeholder confidence, protects its reputation, and minimises financial and legal risks, ultimate

ly fostering long-term business stability and investment appeal.

Misreporting Risk of financial reporting errors, omissions,

or fraud impacting compliance and trust.

Advanced reporting systems, ethical train

ing, and external audits enhance credibility

and safeguard trust in financial statements.

SIPEF’s approach:

To mitigate the risk of financial reporting errors, omissions, or fraud, SIPEF has established

a financial governance framework that ensures accuracy, transparency, and compliance in all

financial disclosures.

SIPEF enforces strict financial reporting protocols, aligning with International Financial

Reporting Standards (IFRS) and local regulatory requirements. The Group has adopted digital

reporting tools and integrated financial management systems to enhance data accuracy,

automation, and traceability. SIPEF’s financial statements undergo regular external audits by

independent, internationally recognised auditing firms to validate accuracy and compliance.

Additionally, the audit committee, a subcommittee of the board of directors, oversees financial

governance and risk management. SIPEF promotes a culture of integrity and accountability by

conducting regular training on ethical financial practices for employees handling financial data.

A whistleblower mechanism is in place to allow employees to report concerns related to fraud,

financial misreporting, or ethical breaches confidentially and without retaliation.

By ensuring transparent, accurate, and ethical financial reporting, SIPEF strengthens stake

holder confidence, meets compliance obligations, and safeguards its reputation, reinforcing trust

among investors, regulators, and financial partners.

260 The connection to the world of sustainable tropical agriculture

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Lack of

liquidity to

finance expansion

programme

Insucient financial resources to fund

expansion projects, impeding growth.

Developing comprehensive financial

strategies and contingency plans ensure

SIPEF’s readiness to capitalise on growth

opportunities.

SIPEF’s approach:

To mitigate the risk of insucient liquidity to finance expansion projects, SIPEF has implement

ed a proactive financial strategy that ensures strong capital management, financial stability, and

access to diverse funding sources.

SIPEF maintains rigorous financial planning and forecasting processes to ensure a healthy

liquidity position. The Company closely monitors operational cash ﬂows, capital expenditures,

and debt levels to optimise financial ﬂexibility. SIPEF ensures multiple funding sources, includ

ing long-term credit facilities, reinvested earnings, and strategic partnerships. The Company

maintains strong relationships with financial institutions and investors, ensuring access to

capital when required. SIPEF has established liquidity contingency plans, including stress testing

financial scenarios to assess potential funding gaps. This ensures the Group is well-prepared

to navigate economic downturns or unexpected financial constraints. Expansion projects are

strategically phased to align with available resources and market conditions. Additionally, the

Company optimises operational eciency to reduce costs and enhance profitability, ensuring

sustainable growth.

By implementing financial strategies and maintaining a disciplined approach to liquidity

management, SIPEF ensures it remains well-positioned to fund expansion projects, seize growth

opportunities, and maintain financial resilience.

Underinsurance

of various risks

Inadequate insurance coverage exposing the

Company to unforeseen financial setbacks.

Robust risk management and regular

insurance reassessments mitigate potential

financial losses and ensure stability.

SIPEF’s approach:

To mitigate the risk of inadequate insurance coverage, SIPEF has implemented a risk manage

ment strategy that ensures sucient protection against financial setbacks caused by unforeseen

events.

The Company conducts periodic risk assessments to evaluate emerging threats and adjusts

its insurance portfolio accordingly. This ensures that SIPEF’s coverage aligns with changing

regulatory requirements and operational risks. SIPEF integrates risk mitigation strategies such

as disaster preparedness plans, infrastructure reinforcements, and operational redundancies

to minimise exposure. Where feasible, SIPEF explores self-insurance mechanisms or financial

reserves to supplement external coverage.

261

SIPEF Integrated Annual Report 2024 Sustainability Statement

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Antitrust Risk of engaging in anti-competitive practic-

es, leading to regulatory penalties.

Regular antitrust assessments and compli

ance monitoring promote ethical practices

and minimise legal risks.

SIPEF’s approach:

To mitigate the risk of anti-competitive practices and ensure compliance with competition laws

and fair market regulations, SIPEF has implemented a strong corporate governance framework

and business ethics policies that promote transparent and lawful business operations.

The Company integrates antitrust risk assessments into its legal and compliance strategy,

ensuring continuous monitoring of business transactions and agreements. SIPEF conducts

regular antitrust training for employees, management, and key decision-makers to ensure

awareness of competition law risks and ethical business conduct. Employees involved in sales,

procurement, and strategic partnerships receive specialised training to recognise and avoid

anti-competitive behaviours. SIPEF has established robust internal monitoring mechanisms,

including compliance audits, legal reviews, and whistleblower reporting channels, to detect and

prevent anti-competitive practices. The audit committee and legal compliance team oversee

compliance eorts and ensure early identification of potential antitrust risks. SIPEF’s good

business conduct framework ensures that ethical behaviour and integrity are embedded in

corporate policies, stakeholder interactions, and decision-making processes. The Company has

a zero-tolerance policy for anti-competitive behaviour, reinforced by its Code of Conduct and

Responsible Purchasing Policy.

By proactively addressing antitrust risks through compliance monitoring, training, and ethical

business practices, SIPEF minimises legal risks, fosters trust among stakeholders, and strength

ens its reputation as a responsible and fair market participant.

262 The connection to the world of sustainable tropical agriculture

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Environmental

damage claims

Potential environmental risks from

deforestation, biodiversity loss, or pollution.

Adopting sustainable practices, obtaining

certifications, and engaging stakeholders

enhance trust and mitigate risks related to

environmental claims.

SIPEF’s approach:

To mitigate the risk of environmental damage claims arising from deforestation, biodiversity loss,

pollution, or regulatory non-compliance, SIPEF has implemented an environmental stewardship

strategy. This ensures that the Company’s agricultural activities align with sustainability best

practices, international certification standards, and legal requirements.

SIPEF adheres to a no deforestation, no peat, no exploitation (NDPE) policy, ensuring that all

agricultural developments comply with strict land use and conservation guidelines. SIPEF

ensures 100% of its palm oil operations are RSPO compliant and maintains Rainforest Alliance

and Fairtrade certifications for bananas, demonstrating compliance with global environmental

standards. SIPEF has set a GHG emission reduction target of 28% by 2030 and actively invests

in methane capture facilities, renewable energy, and waste management systems. The Company

integrates best management practices to minimise pollution, including the use of organic

fertilisers, water conservation strategies, and waste recycling programmes. SIPEF engages with

local communities, NGOs, and regulators to ensure environmental risk mitigation aligns with

stakeholder expectations. Regular environmental impact assessments and audits are conducted

to proactively identify risks and prevent environmental damage claims. The Company maintains

a public grievance mechanism, allowing stakeholders to raise environmental concerns, which are

addressed through transparent reporting and corrective actions.

By adopting rigorous environmental policies, sustainability certifications, and stakeholder

engagement initiatives, SIPEF eectively mitigates the risk of environmental damage claims,

enhances regulatory compliance, and strengthens investor and community trust.

263

SIPEF Integrated Annual Report 2024 Sustainability Statement

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Reputation and

Stakeholder

activism

Risks from shareholder activism or public

campaigns aecting policies or board

composition.

Transparent environmental, social and

governance (ESG) policies, proactive

communication, and certification position

SIPEF as a sustainability leader, aligning

with stakeholder expectations.

SIPEF’s approach:

To mitigate risks associated with reputation and stakeholder activism, SIPEF has established

a proactive sustainability and stakeholder engagement strategy that ensures transparency,

accountability, and alignment with investor and public expectations.

SIPEF integrates ESG factors into its Balanced Growth Strategy, ensuring that sustainability is

embedded in decision-making. The Company maintains clear sustainability policies, including

NDPE commitments, human rights protections, and RSPO, Fairtrade, and Rainforest Alliance

certifications, which reinforce SIPEF’s responsible business conduct. Governance is strength

ened by the presence of independent directors with sustainability expertise. SIPEF engages with

shareholders, NGOs, local communities, and policymakers through regular ESG disclosures,

investor briefings, and sustainability reporting. The Company ensures open communication

channels with stakeholders, providing timely responses to concerns and maintaining a public

grievance mechanism for environmental and social issues.

Participation in sustainability indices and benchmarks (e.g., SPOTT, CDP) enhances SIPEF’s

credibility and transparency. SIPEF’s palm oil is compliant with RSPO certification, ensuring

compliance with the highest sustainability standards. The Company actively supports smallhold

ers in achieving certification, reinforcing SIPEF’s role in responsible supply chain management.

SIPEF aligns with EU Deforestation Regulation (EUDR) and CSRD reporting, ensuring com

pliance with evolving ESG regulatory frameworks. Social and environmental due diligence is

conducted before new developments, reducing the likelihood of reputational risks linked to land

use, community relations, or supply chain controversies.

By maintaining transparent ESG policies, strong governance, stakeholder engagement, and

sustainability certifications, SIPEF positions itself as a leader in sustainable agriculture, reducing

risks related to shareholder activism and reputational challenges, while enhancing investor and

public trust.

264 The connection to the world of sustainable tropical agriculture

Current and anticipated effects

In line with its double materiality assessment,

SIPEF has assessed the likelihood of the identified

impacts and risks occurring, together with their

potential financial impacts. SIPEF has assessed

these impacts and risks are not expected to have

a material financial impact on the SIPEF group,

including its financial position, financial perfor-

mance and cash ﬂows. Nevertheless, the Group

has implemented eective measures to mitigate

these risks.

Resilience of strategy and business model

SIPEF maintains close and regular contact between

its leadership and operational teams in Indonesia,

Papua New Guinea, and Côte d’Ivoire. While oper-

ating across diverse regions, the Group ensures

a unified approach to governance and ethical

standards, balancing consistency with respect

for local cultures and practices. This approach

reinforces SIPEF’s resilience by enabling proactive

risk identification and swift response to ethical,

operational, and compliance challenges.

Policies and commitments

SIPEF’s Code of Conduct ensures that all SIPEF

executives, employees, consultants, and contractors

are committed to acting with integrity, conducting

business responsibly, and adhering to all applicable

laws in each jurisdiction. It establishes guidelines

for maintaining a respectful workplace, fostering

team spirit, and building professional, transparent

relationships with clients and suppliers. It also

prohibits conflicts of interest, insider trading,

bribery, and the improper use of corporate funds.

At the same time, it promotes corporate social

responsibility, including environmental protec-

tion, anti-discrimination, and the safeguarding

of human rights. Additionally, it covers data pro-

tection and confidential information, ensuring

compliance with relevant laws and regulations.

Accountability of implementation

and dissemination

At the Group level, the executive committee is

responsible for oversight of implementation of the

Code of Conduct. The Group’s legal counsel pro-

vides support to ensure it is regularly updated and

communicated to all employees and that relevant

personnel receive adequate training to understand

and apply it eectively. At the subsidiary level, the

legal departments and internal audit departments

are accountable for aligning their respective com-

pany codes with the Group Code of Conduct. They

also ensure its eective dissemination, adoption,

and implementation.

265

SIPEF Integrated Annual Report 2024 Sustainability Statement

Consideration of key stakeholder

interests in policy development

SIPEF is committed to ensuring that its business

activities are conducted fairly and with integrity, as

outlined in its Code of Conduct. The Group fosters

an environment where employees and stakehold-

ers are encouraged to engage in open dialogue,

report concerns, and contribute to the continuous

improvement of governance practices.

In line with its internal policy procedure, SIPEF

integrates stakeholder feedback, regulatory

requirements, and international best practices

when formulating and updating policies. The Group

Code of Conduct is scheduled for revision in the

first half of 2025, with the Group’s legal counsel

leading eorts to identify areas for improvement

and ensure ongoing compliance with evolving reg-

ulations, industry standards, and best practices. As

part of this process, benchmarking assessments

may be conducted, external experts consulted,

and revisions reviewed by country directors, rel-

evant department heads, and the SIPEF executive

committee before final approval by the board of

directors.

Communication and socialisation

SIPEF recognises the importance of eectively

communicating and socialising its Code of Conduct,

along with all related codes, policies, and legal

requirements, to build and reinforce its company

culture. The Group ensures that these documents,

including governance frameworks, are readily avail-

able to all aected stakeholders. Internally, they are

disseminated via email to employees and through

training sessions for relevant sta. Contractors

are also informed of the expectations set forth and

are encouraged to align with the Group’s ethical

standards.

A comprehensive Code of Conduct review is planned

for 2025–2026 to align with the latest standards

and evolving business needs. As such, no Code of

Conduct training sessions were conducted in 2024.

Training activities will be scheduled following the

publication of the revised Code of Conduct.

SIPEF’s Code of Conduct is accessible to all stake-

holders on the Group’s Company website: Corporate

governance - SIPEF

Third-party standards and initiatives

Through the implementation of the Code of

Conduct, SIPEF commits to respecting applica-

ble national laws and internationally recognised

frameworks that align with ethical business

practices.

In addition, SIPEF also pursues 100% certification

under standards such as RSPO, Rainforest Alliance,

Fairtrade, and GLOBALG.A.P. Many of these stand-

ards require certified companies to have an ethical

conduct policy and a system to monitor compliance.

While SIPEF’s governance mechanisms, including

its Code of Conduct and grievance mechanism,

align with these broader expectations, they do not

in themselves constitute a commitment to uphold

these standards.

266

The connection to the world of sustainable tropical agriculture

Actions, targets, and monitoring

SIPEF implements regular training programmes,

leadership engagement, and the Group-wide dis-

semination of its Code of Conduct and policies

across its global operations. As a comprehensive

Group-wide policies review is planned for 2025-

2026, no other specific actions were taken in 2024

to address the identified potential impact and risks.

The forthcoming review aims to update, integrate,

and streamline existing policies at both Group and

country levels.

Targets and monitoring

While SIPEF has no specific target for corporate

culture, it proactively promotes continuous align-

ment between its values and evolving business

practices through robust evaluation mechanisms,

including an annual review by board of directors

of the Code of Conduct and related compliance

matters. SIPEF’s grievance mechanism further

supports the Group in monitoring and evaluating

the implementation of its policies, commitments,

and corporate culture requirements, including

those outlined in the Code of Conduct. This oper-

ates eectively at both the Group and entity level,

capturing and addressing any reported actual or

potential breaches. Read more about the grievance

procedure, including ambition achieved with the

procedure in 2024 and the indicators used to eval-

uate the progress on pages 274-276.

SIPEF group Code of Conduct revision in 2025

In the third quarter of 2024, a policies review

workstream was established to plan and coordinate

a Group-wide review aimed at updating SIPEF’s

Group policies. The goal is to enhance alignment

across policies, as well as with the Group’s ESG

priorities, values, and the latest legislative require-

ments of the EU and the countries in which SIPEF

operates.

SIPEF’s Group Code of Conduct will undergo

revision in the first half of 2025. Thereafter, its

subsidiaries in Indonesia, Papua New Guinea, and

Côte d'Ivoire will align their country-level Codes of

Conduct with the Group Code’s minimum stand-

ards and requirements, while ensuring compliance

with national legal frameworks. Starting in the

second half of 2025, communication, dissemina-

tion, socialisation, and training on the revised

Codes of Conduct will take place to ensure eective

adoption.

267

SIPEF Integrated Annual Report 2024 Sustainability Statement

CORRUPTION AND BRIBERY

Corruption and bribery undermine fair competi-

tion, erode trust, and pose significant financial and

reputational risks to businesses and society. SIPEF

is committed to maintaining a transparent and fair

business environment, ensuring that management,

employees, and non-employees uphold the highest

ethical standards.

To reinforce this commitment, the Group imple-

ments strict compliance measures, robust control

mechanisms, targeted training, and leadership

oversight to prevent and address corruption risks. A

strong anti-corruption and anti-bribery framework,

supported by an eective grievance mechanism,

risk prevention measures, and continuous moni-

toring, ensures adherence to legal requirements

and promotes responsible business conduct.

Impacts

Prevention and detection including training

   

   

 , -

Effective prevention, detection, and training

mechanisms on corruption and bribery ensure

that employees can recognise corruption in its

various forms and understand the protocols to

follow when encountering such situations. Without

proper training and functioning prevention meas-

ures, employees may unknowingly face unlawful

situations or lack the necessary tools to respond

appropriately.

Incidents

   

   

 , -

Corruption and bribery can have immediate and

severe consequences for employees, business part-

ners, aected communities, local authorities, and

customers. Acts such as fraud, extortion, collusion,

and money laundering, as well as giving or receiving

money or other advantages to gain undue inﬂuence,

are dishonest, illegal, and violate SIPEF’s ethics,

culture, and policies. When incidents of corruption

and bribery are substantiated, employees and busi-

ness partners may find themselves in compromising

or unlawful situations, leading to dismissal, legal

action, and reputational damage.

SIPEF operates in Indonesia, Papua New Guinea,

and Côte d’Ivoire, where its business activities and

workforce are primarily based. Like many agri-

cultural companies in these regions, SIPEF faces

complex regulatory and operational challenges.

Dierences in institutional frameworks, regulatory

enforcement, and governance structures may create

varying levels of exposure to corruption-related

risks in business operations and supply chains. In

certain areas, informal economic activities and

socio-economic conditions may also increase vul-

nerabilities to corruption and bribery. This requires

enhanced compliance measures, due diligence

processes, and engagement with local stakeholders.

SIPEF recognises these challenges and remains

committed to implementing robust anti-corrup-

tion policies, strengthening internal controls, and

promoting ethical business practices across its

operations and business relationships.

(3) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impacts are newly

identified and were not included in these exact forms in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

268 The connection to the world of sustainable tropical agriculture

(4) All identified risks are derived from SIPEF’s previous annual business risk assessment, conducted and approved by the audit committee and

board of directors in 2023. These risks have been updated with additional descriptions and aligned with the sustainability matters prescribed by

Appendix A of ESRS 1.

Risks and opportunities

Both SIPEF’s long-term reputation and financial

health could be significantly impacted by any con-

firmed incidents of bribery or corruption.

The following risks and opportunities

have

been identified from a pre-mitigation perspective

through SIPEF’s double materiality assessment,

in relation to the sustainability matter ‘Incidents’.

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Document

falsification

Falsified documents may lead to legal dis-

putes, regulatory penalties, and reputational

damage. Integrity issues in land acquisition,

environmental impact assessments, and

compliance certifications.

Enhancing document integrity through

advanced document management systems,

secure verification methods, internal audits,

and transparency measures to ensure

compliance.

SIPEF’s approach:

To mitigate risks related to document falsification, SIPEF has implemented strict governance,

verification processes, and digital security measures to ensure compliance and transparency.

SIPEF enforces strict internal controls for financial records, land acquisitions, environmental

impact assessments, and certification compliance. Regular internal and external audits ensure

document authenticity and regulatory alignment. Employees receive regular training on fraud

prevention and ethical reporting standards. A confidential whistleblower channel enables

reporting of irregularities without retaliation. SIPEF engages independent auditors and certifica

tion bodies for verification of compliance-related documents. SIPEF’s full traceability and public

disclosure of sustainability certifications reinforce integrity.

By prioritising document security, compliance, and ethical oversight, SIPEF minimises legal

risks, enhances regulatory trust, and upholds its reputation for responsible business practices.

269

SIPEF Integrated Annual Report 2024 Sustainability Statement

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Bribery Risk of direct or indirect involvement in

bribery, leading to legal investigations,

fines, and reputational harm, impacting

relationships with stakeholders and business

partners.

Fostering a culture of ethical behaviour,

implementing robust internal controls, and

collaborating with industry organisations to

adopt best practices in preventing bribery.

SIPEF’s approach:

SIPEF upholds a zero-tolerance policy on bribery, ensuring that all business activities adhere to

the highest ethical standards.

The Company has implemented a robust anti-bribery framework that includes strict internal

controls, regular compliance training, and transparent reporting mechanisms. SIPEF clearly

communicates its Code of Conduct, which explicitly prohibits bribery in any form, whether direct

or indirect. Internal audits and third-party assessments further strengthen accountability, iden

tifying potential risks before they escalate into legal or reputational issues. To foster a culture of

integrity, SIPEF conducts regular training programmes to raise awareness about bribery risks

and reinforce ethical decision-making at all levels of the organisation. Employees are encouraged

to report any suspicious activities through a confidential whistleblower mechanism, ensuring

concerns are addressed swiftly and without retaliation. Additionally, the Company actively

collaborates with industry organisations and regulatory bodies to align with global best practices

in anti-corruption compliance.

By integrating these measures, SIPEF minimises legal risks, protects stakeholder trust, and

reinforces its commitment to ethical and responsible business practices.

270 The connection to the world of sustainable tropical agriculture

RISKS AND OPPORTUNITIES

CATEGORY RISK DESCRIPTION OPPORTUNITY DESCRIPTION

Corruption Possibility of corruption within SIPEF or

in external interactions, including bribery,

embezzlement, or other illicit activities,

which could harm SIPEF's reputation and

lead to legal and operational consequences.

Promoting a culture of integrity and

accountability, engaging in third-party due

diligence, and ensuring strict compliance

with anti-corruption laws to maintain stake

holder trust and ethical business practices.

SIPEF’s approach:

SIPEF is committed to maintaining the highest standards of integrity and accountability, actively

working to prevent corruption in both internal operations and external business interactions.

The Company enforces a strict anti-corruption policy, ensuring full compliance with interna

tional and local anti-bribery and anti-corruption laws. Through internal controls, financial

transparency measures, and third-party due diligence, SIPEF safeguards its operations against

risks such as bribery, embezzlement, and unethical business conduct. Regular internal audits

and external reviews further reinforce compliance and detect any irregularities before they pose

a threat to the Company’s reputation or legal standing. To strengthen its ethical culture, SIPEF

provides ongoing anti-corruption training for employees and management, equipping them with

the knowledge to recognise and respond to potential risks. A whistleblower mechanism is in

place, oering a secure and confidential channel for reporting misconduct, ensuring concerns are

addressed without retaliation. Moreover, SIPEF collaborates with regulatory bodies, industry

organisations, and certification agencies to uphold best practices in corporate governance.

By embedding strict anti-corruption safeguards into its business operations, SIPEF reinforces

stakeholder confidence, maintains regulatory compliance, and ensures long-term business

sustainability for the Company.

Computer crime

and theft

Vulnerability to cybercrime due to reliance

on digital infrastructure, risking financial

information compromise, supply chain

disruption, and theft of proprietary agricul

tural technologies.

Strengthening cybersecurity posture

through investment in advanced cyber

security technologies, employee training

programmes, and robust incident response

plans to protect digital assets and operation

al continuity.

SIPEF’s approach:

Recognising the increasing risks associated with cybercrime and digital theft, SIPEF has

implemented a cybersecurity strategy to protect its financial data, proprietary agricultural

technologies, and critical business operations.

The Company continuously invests in cybersecurity technologies, including firewall protections,

encryption protocols, multi-factor authentication, and intrusion detection systems, to safeguard

its digital infrastructure from external threats. Penetration testing and security audits ensure

that vulnerabilities are identified and addressed proactively, minimising the risk of data breaches

and cyberattacks. In addition to technological defences, SIPEF prioritises employee awareness

and training, ensuring that sta at all levels are equipped to recognise and prevent cyber threats

such as phishing, malware, and unauthorised data access. Strict access controls and data gov

ernance policies further reduce exposure by ensuring that only authorised personnel can handle

sensitive information. To enhance resilience, SIPEF has also established incident response and

business continuity plans, enabling rapid containment and recovery in the event of a cyberattack.

By embedding cybersecurity best practices into its operations, SIPEF protects its digital assets,

ensures supply chain security, and reinforces stakeholder trust in its ability to operate securely

and sustainably in an increasingly digitalised world.

271

SIPEF Integrated Annual Report 2024 Sustainability Statement

Under the sustainability matter ‘Prevention and

detection including training’, the assessment did

not evaluate any risks as material, nor did it identify

any related opportunities.

Current and anticipated effects

In line with its double materiality assessment,

SIPEF has reviewed the likelihood of the identified

impacts and risks occurring, together with their

potential financial impacts. SIPEF has assessed that

these impacts and risks are not expected to have

a material financial impact on the SIPEF Group,

including its financial position, financial perfor-

mance and cash ﬂows. Nevertheless, the Group

has implemented eective measures to mitigate

these risks.

Resilience of strategy and business model

SIPEF continues to strengthen its anti-corrup-

tion and anti-bribery framework by integrating

enhanced compliance measures, rigorous internal

controls, employee and contractor training pro-

grammes, and ongoing risk assessments. As part

of its business model, the Company adheres to sus-

tainability standards and regulatory requirements,

which mandate the implementation of measures

and systems that promote ethical conduct. These

proactive strategies reduce exposure to corrup-

tion-related risks, safeguard market access, and

uphold ethical business practices across the value

chain.

Policies and commitments

SIPEF’s Anti-Corruption and Anti-Bribery (ACAB)

Policy sets a clear framework to uphold ethical

business practices and reinforce strong corporate

governance. It mandates strict procedures for iden-

tifying, reporting, and addressing violations while

ensuring whistleblower protection and enforcing

non-retaliation measures. The policy also defines

corruption, bribery, fraud, and other key terms,

providing a standardised interpretation across all

entities.

The Grievance Policy complements these eorts

by oering a structured, impartial mechanism for

employees, contractors, and external stakeholders

to raise concerns. It ensures grievances are handled

confidentially and fairly, following a clear escala-

tion process from local resolution to Group-level

intervention when necessary. The policy guarantees

whistleblower anonymity, protection against retal-

iation, and mandatory record-keeping, reinforcing

SIPEF’s commitment to accountability and ethical

conduct.

272

The connection to the world of sustainable tropical agriculture

Both the ACAB Policy and the Grievance Policy

apply to all SIPEF employees, contractors, and sub-

sidiaries. Additionally, the ACAB Policy extends to

suppliers of goods and services, while the Grievance

Policy also applies to any stakeholder who wishes to

submit grievances related to SIPEF or its perceived

impacts.

Interoperability between these policies and SIPEF’s

Code of Conduct ensures consistency in addressing

ethical concerns and misconduct. An overview of

the Code of Conduct is provided in the sub-section

‘Corporate culture’ on pages 265-266.

Accountability of implementation

and dissemination

At the Group level, the executive committee is

the most senior level responsible for oversight

of implementation of both the ACAB Policy and

Grievance Policy. The owner of both these policies

is SIPEF’s legal counsel ESG, who is responsible

for coordinating with country-level teams to set

up training sessions. These sessions aim to ensure

consistent communication and understanding of

the policies while facilitating their integration

into each country of operation. At the country

level, designated policy owners are responsible

for ensuring implementation and alignment of their

respective country-level policies and procedures

with the Group-level policies.

Consideration of key stakeholder

interests in policy development

Between 2023 and 2024, SIPEF conducted a

comprehensive review of the ACAB Policy and

Grievance Policy to enhance their eectiveness

and refine related processes and procedures for

consistent implementation across all operational

countries.

To identify gaps and opportunities for improve-

ment, SIPEF’s legal counsel ESG led workstreams

engaging country-level internal audit, sustaina-

bility, and human resources teams, as well as

representatives from regional management and

other key departments.

SIPEF also consulted a social expert from an

Indonesia-based NGO to provide recommendations

for improving the Group Grievance Policy and its

reporting and handling procedures at the country

level. Additionally, it reviewed requirements from

RSPO, Rainforest Alliance, and other relevant

standards the Company follows, related to griev-

ance procedures and whistleblower protection.

Through this iterative and inclusive consultation

process, SIPEF assessed Group-level and coun-

try-specific challenges, and determined how the

Group-level policies and procedures could be updat-

ed to address gaps and align with best practices.

The ACAB Policy was also updated to align with

the United Nations Convention Against Corruption

(2003) and the Council of Europe’s Criminal Law

Convention on Corruption (1999), ensuring com-

pliance with international standards.

The process resulted in revised and updated

Group-level policies, both of which were reviewed

by SIPEF’s executive committee and approved by

the board in June 2024.

Communication and socialisation

SIPEF’s ACAB Policy and Grievance Policy

have been made readily available to all aected

stakeholders. In the third quarter of 2024, SIPEF

launched the revised policies, as well as its updat-

ed grievance procedure, through dedicated focus

sessions, as well as in-person or online training

programmes. Coordinated by SIPEF’s legal counsel

273

SIPEF Integrated Annual Report 2024 Sustainability Statement

ESG, these sessions brought together the global

sustainability team and key country-level rep-

resentatives, including members from regional

sustainability teams, local internal audit depart-

ments, the regional executive committee, and

other relevant departments. The sessions aimed

to facilitate a comprehensive understanding of the

updated policies and promote alignment across

SIPEF’s operations.

Contractors have also been informed of the expec-

tations set forth in the updated policies.

The policies are accessible to all stakeholders on the

Group’s website: SIPEF Corporate Policies - SIPEF

Third-party standards and initiatives

SIPEF is committed to 100% RSPO and Rainforest

Alliance certification, both of which require the

implementation of a documented system for dealing

with complaints and grievances, as well as a policy

on ethical conduct and whistleblower protection.

While SIPEF’s Grievance Policy and ACAB Policy

align with the expectations of the certification

requirements, they do not in themselves constitute

a commitment to uphold the standards.

Actions, targets, and monitoring

Prevention and detection

To enhance its capacity to prevent, detect, and

address corruption-related risks, SIPEF works

to ensure that employees, contractors, and other

stakeholders across its value chain, including NGOs,

local communities, and authorities, can report

actual or suspected incidents through its griev-

ance mechanism. SIPEF also conducts training and

awareness programmes to equip its employees with

the knowledge and skills to recognise and respond

to dierent forms of bribery and corruption. In

addition, the Company maintains robust controls

and oversight, with internal audit regularly con-

ducting audits and investigations as required.

These actions have not required significant Capex

or Opex. No other significant financial resources

would be applicable.

   2024

In 2023-2024, SIPEF undertook a comprehensive

review of its grievance mechanism to enhance its

eectiveness at both the Group and country levels.

This review aimed to identify and address any gaps

in grievance reporting and handling procedures.

As part of this initiative, a new Group-level policy

was developed, approved, and rolled out across all

SIPEF operations, including those in Indonesia,

Côte d’Ivoire, Papua New Guinea, as well as in

the oces in Belgium and Singapore. The updat-

ed policy establishes clear minimum standards

and requirements, ensuring consistency and

accountability across all locations. It also intro-

duced the newly streamlined grievance-handling

procedure designed to improve response times and

transparency. Additionally, an internal IT service

management platform, SIPEF Grievance Solution,

was developed to facilitate grievance reporting and

management, enabling more ecient monitoring

and fostering greater transparency, consistency

and accountability across the Group.

The updated grievance procedure was launched

together with the policy and the new platform in

June 2024.

274

The connection to the world of sustainable tropical agriculture

Overview of grievance procedure

SIPEF’s grievance mechanism is designed to be

accessible, transparent, and impartial, ensuring

that all employees, contractors, and stakeholders

can report concerns. The process follows a struc-

tured approach:

GRIEVANCE

SUBMISSION

GRIEVANCE

REVIEW AND

INVESTIGATION

DECISION AND

RESOLUTION

MONITORING AND

OVERSIGHT

Grievance submission: Employees and exter-

nal stakeholders can report grievances through

multiple channels, including a dedicated email

(grievances@sipef.com), a grievances form avail-

able on SIPEF’s website, and the SIPEF Grievance

Solution.

Recognising that many workers in plantations, mills,

and packing stations have limited access to technolo-

gy, SIPEF has also implemented additional measures

to ensure grievance reporting remains fully acces-

sible, regardless of location or technological access:

• Designated grievance managers, including

RSPO ocers, safety ocers, and internal audit

department sta members, serve as entry points

for employees to report grievances in person.

Grievance managers ensure that all concerns

submitted to them are formally recorded in the

SIPEF Grievance Solution for proper follow-up.

• Notice boards in key locations display SIPEF’s

policies and grievance procedures, providing

clear guidance on how to submit a grievance.

Grievance review and investigation: once

a grievance is submitted, a grievance committee is

assembled to conduct an independent investigation

and ensure a fair and objective resolution. The

committee is composed of subject matter experts

rather than individuals directly involved in the

grievance or those with potential conﬂicts of inter-

est. Experts are selected based on their knowledge

and impartiality to ensure an objective evaluation.

Decision and resolution: based on findings, the

committee proposes a resolution, which is reviewed

and approved in line with SIPEF’s Grievance Policy

and ethical standards.

Monitoring and oversight: for monitoring

and oversight, grievances are systematically

categorised and analysed by topic, including land

disputes, labour concerns, human rights matters,

and environmental issues. They are also organised

by geographic location, identifying the specific

plantation and country involved. The managing

director, group head of sustainability, and legal

counsel ESG oversee grievance management at the

Group level, while country-level teams handle case

documentation, investigation, and compliance.

Grievances received from NGOs or those deemed

significant are published on the Grievances

Dashboard on SIPEF’s company website. The

dashboard provides updates on case status, includ-

ing details on whether and how cases have been

resolved.

Grievance received by grievance manager, assembly

of grievance committee and investigation.

(5) For a general description of the roles of the SIPEF board of directors and executive committee, which apply to business conduct matters as well

as other sustainability topics, please see ‘General Information’. The expertise of both the board and executive committee is disclosed in the

Corporate Governance Statement.

275

SIPEF Integrated Annual Report 2024 Sustainability Statement

Launch of SIPEF Grievance Solution

With SIPEF’s Grievance Policy update in 2024,

eorts and investments were made to improve and

enhance the eectiveness of SIPEF’s grievance

mechanism. A key development was the SIPEF

Grievance Solution, a dedicated software tool

developed in collaboration with the IT department.

Built on a third-party IT service management

platform, the tool was extensively customised to

meet SIPEF’s specific needs and ensure seamless

integration across operations.

After its official deployment in June 2024, the

platform was gradually rolled out across SIPEF’s

operations, with the second half of the year serving

as a transition period. During this time, country

teams were trained in using the system and began

uploading and managing grievances under the

improved and streamlined process.

The SIPEF Grievance Solution centralises all

grievance reporting channels, including website

forms, grievance emails, digital submissions, and

country-level reports. It provides a user-friendly

interface, allowing employees and stakeholders to

submit grievances easily, with the option to remain

anonymous. By streamlining reporting, follow-up,

and resolution processes, the system ensures that

all grievances, both internal and external, are

addressed promptly, independently, and objectively.

Oversight and monitoring are managed at both

the Group and country levels, with access appro-

priately restricted to employees handling griev-

ances to maintain confidentiality and compliance.

Grievance managers can track cases, coordinate

investigations, and monitor progress in real time,

improving response times and ensuring ecient

case management across the Group. Additionally,

the SIPEF Grievance Solution follows a structured

framework aligned with the Grievance Policy,

ensuring impartiality by assigning cases based on

predefined protocols.

Using the data gathered from the SIPEF Grievance

Solution, a comparative analysis will be done to

identify key risk trends. As implementation evolves,

SIPEF will proactively identify and apply necessary

adjustments to the software and associated pro-

cesses to better accommodate user needs. Entities

will receive ongoing support and be encouraged to

share learnings as they refine and implement the

system at their locations.

276

The connection to the world of sustainable tropical agriculture

   2024

In 2024, SIPEF implemented a comprehensive

training programme on its ACAB Policy, coor

dinated by the legal counsel ESG. The training

covered policy definitions, detection and reporting

of corruption, whistleblowing procedures, trans-

parency in political engagements, anti-competitive

behaviour, and case exercises. Content was adapted

for each country to reﬂect local risks, high-risk

functions, and applicable penalties under national

laws.

To ensure targeted compliance, SIPEF required

all subsidiaries to identify 'functions at risk', refer-

ring to any employee whose roles exposes them

to corruption and bribery risks. In developing

this list, SIPEF used the definition from ESRS as

a reference and collaborated with the internal audit

and legal departments across its subsidiaries. The

identification process was based on an assessment

of employees’ roles, responsibilities, and their

associated risk exposure to corruption and bribery.

In the third quarter of 2024, prioritised employees

in these roles received in-depth anti-corruption and

anti-bribery training. Members of SIPEF’s execu-

tive committee, assessed as the most at-risk due

to their decision-making authority and oversight

responsibilities, also participated in the training.

Given the geographical context of SIPEF’s opera-

tions, where computer-based training infrastruc

ture is not consistently available, training was

primarily delivered in person. When possible, it was

conducted online. Each session was documented

with an attendance list to verify completion. No

employees identified as holding at-risk functions

were on long-term leave in 2024.

During the third and fourth quarter of 2024, SIPEF

also conducted specialised training for designated

grievance managers. Participants included sta

from internal audit and human resources, as well

as RSPO ocers, safety ocers, and legal counsel.

  

SIPEF has set a measurable target to strengthen

its anti-corruption and anti-bribery framework

by ensuring that all employees in functions-at-risk

within its own operations receive annual training.

This target aligns with SIPEF’s policy objectives of

promoting transparency, ethical business conduct,

and regulatory compliance across its operations.

Target: Annual training to be carried out for

all of employees in functions-at-risk within own

operations.

Baseline value and year: The target is recurring

annually, with a starting baseline of zero at the

beginning of each financial year. No interim targets

or milestones have been set.

Stakeholder consultation: The internal audit

departments, regional sustainability teams, region-

al executive committees, and other relevant teams

across SIPEF’s operations were consulted in setting

this target.

Methodologies and assumptions: SIPEF’s legal

counsel ESG has engaged and coordinated with

legal and internal audit teams in each country of

operation to determine the list of functions-at-

risk employees. Training will be focused on these

employees.

Adjustments: This is a newly set target in 2024.

277

SIPEF Integrated Annual Report 2024 Sustainability Statement

ANTICORRUPTION AND ANTIBRIBERY TRAINING ATRISK FUNCTIONS OTHER OWN WORKERS*

TRAINING COVERAGE

Total 478 68

DELIVERY METHOD AND DURATION ON AVERAGE

In-person or online training 2.5h 2.5h

FREQUENCY

How often the training is required Annually Annually

TOPICS COVERED

Definition of corruption x x

Policy x x

Procedures on suspicion / detection of corruption x x

Relevant laws and penalties x x

Other x x

* Other own workers may include managers and administrative, management, and supervisory bodies.

    2024

SIPEF remains committed to achieving 100%

annual training completion for employees in func-

tions-at-risk within its own operations. Progress is

tracked through participation rates and attendance

records.

During the 2024 financial year, 100% of employees

in at-risk functions received training, totalling 478

individuals. Training formats varied by location. In

Belgium and Singapore, employees who could not

attend in person participated in online sessions.

In Indonesia, employees who missed scheduled

training attended follow-up sessions.

Incidents

In 2024, SIPEF recorded zero convictions and zero

USD in fines or financial penalties for violations of

anti-corruption or anti-bribery laws across its oper-

ations in Belgium, Singapore, Papua New Guinea,

Côte d'Ivoire, and Indonesia. The Company remains

committed to preventing, detecting, and addressing

corruption risks through strict compliance meas-

ures and ongoing monitoring.

  ,

,  

SIPEF has established comprehensive procedures

to prevent, detect, and address corruption and

bribery. These include:

 Mandatory anti-corruption and anti-bribery

training for all employees in functions-at-risk

(see pages 277-278).

 Internal monitoring mechanisms such as regular

compliance audits and whistleblowing channels

(see pages 279-281).

 Clear reporting pathways through the SIPEF

Grievance Solution for employees and external

stakeholders to report concerns confidentially

(see pages 275-276).

278

The connection to the world of sustainable tropical agriculture

  

 

To ensure consistency and fairness in addressing

breaches, SIPEF follows a structured process for

determining appropriate actions. When a suspected

violation is identified, an internal investigation is

conducted in accordance with company policies

and applicable legal frameworks in each country.

In cases of breaches, the severity of the violation

may result in contract termination, in line with

SIPEF’s ACAB Policy.

  

SIPEF has not set a specific target to address the

material impact identified in relation to incidents

of corruption and bribery, as its approach is geared

towards prevention, detection and training. To

view relevant actions and targets, see sub-section

‘Prevention and detection’.

PROTECTION OF WHISTLEBLOWERS

An eective whistleblowing system is essential

for upholding integrity, accountability, and trans-

parency within an organisation. Employees and

stakeholders must be able to report misconduct

safely and confidentially, without fear of retaliation.

A trusted and accessible reporting system not only

helps identify and mitigate misconduct but also

strengthens trust among employees, contractors,

and business partners. By safeguarding whistle-

blowers from retaliation and ensuring concerns

are handled with diligence and impartiality, SIPEF

upholds its commitment to fairness, transparency,

and responsible corporate governance.

Impacts

    

   

 

 , -

SIPEF recognises the potential negative impacts of

insucient whistleblower protection. Individuals

who witness misconduct, but fear retaliation may

find themselves in compromising situations due

to the absence or poor implementation of a whis-

tleblowing system. Legitimate concerns may go

unaddressed, misconduct may persist, and indi-

viduals may be exposed to unlawful situations.

This can lead to psychological stress, anxiety, and

an overall decline in their well-being. In severe

cases, whistleblowers without protection may face

threats, harassment, unfair dismissal, or even per-

sonal safety risks and serious legal consequences.

(6) The financial year 2024 marks the first year SIPEF has conducted a double materiality assessment. As a result, the specified impact is newly

specified and was not included in this exact form in previous reporting. This assessment has been aligned with the sustainability matters

outlined in Appendix A of ESRS 1.

279

SIPEF Integrated Annual Report 2024 Sustainability Statement

Ultimately, the absence of a robust whistleblowing

system undermines trust, well-being, and confi-

dence among all stakeholders.

SIPEF’s plantations, processing, and packing

sites are located in Indonesia, Papua New Guinea,

and Côte d’Ivoire. In these regions, perceptions

of institutional eectiveness and trust in formal

reporting channels may vary, making it especially

important to ensure that all stakeholders feel safe

and supported when reporting actual or potential

misconduct.

To address these challenges, SIPEF is committed

to implementing and strengthening measures to

protect whistleblowers, ensuring they can report

concerns without fear of reprisal. This aligns

with SIPEF’s Balanced Growth Strategy, which

prioritises good business conduct through robust

systems and processes that uphold ethical practices.

Key principles such as anonymity, fair treatment,

and due process are integral to the Company’s

whistleblower protection framework.

Risks and opportunities

While an inadequate whistleblowing system can

pose risks to any company’s operations, repu-

tation, and long-term sustainability, SIPEF’s

double materiality assessment did not evaluate

any risks as material, nor did it identify any related

opportunities.

Current and anticipated effects

Since no material risks or opportunities related to

whistleblower protection were identified, there are

no reported current or anticipated eects on the

Group's business model, value chain, strategy, or

decision-making. Additionally, no financial eects

on the Company’s financial position, performance,

or cash ﬂows are reported.

Resilience of strategy and business model

As part of its business model, the Company adheres

to regulatory requirements and sustainability

standards, which mandate the implementation of

measures and systems that promote ethical con-

duct. These proactive strategies reduce exposure to

corruption-related risks, safeguard market access,

and uphold ethical business practices across the

value chain.

280

The connection to the world of sustainable tropical agriculture

Policies and commitments

SIPEF is committed to whistleblower protection, as

specified in its ACAB Policy and Code of Conduct.

Under this commitment, SIPEF guarantees the

confidentiality and protection of the whistleblower

from all forms of threats, victimisation, reprisals,

intimidation, discrimination, or harassment from

any party. Any form of retaliation, penalties, or

discrimination against whistleblowers, reported

parties, or anyone participating in an investigation

is prohibited. SIPEF’s ACAB Policy also stipulates

that SIPEF reserves the right to take appropriate

action against anyone who retaliates or threatens

retaliation against whistleblowers who have sub-

mitted reports in accordance with the policy.

The Group’s Code of Conduct further expands on

these protections by outlining specific reporting

channels available to whistleblowers. The Code also

acknowledges that while confidential reporting is

encouraged, anonymous reporting is also possible.

Under SIPEF’s Grievance Policy, the Group is com-

mitted to ensuring all employees and stakeholders

have a structured, transparent, and impartial

process for raising and resolving grievances,

including reports on ethical misconduct. As part

of this process, those submitting grievances also

have the option to remain anonymous.

Read more about SIPEF’s Grievance and ACAB

Policies in ‘Corruption and bribery’ section on

pages 272-274. The Code of Conduct is covered in

the section ‘Corporate culture’ on pages 265-266.

Actions, targets and monitoring

SIPEF has established a grievance mechanism,

which allows any stakeholder to report misconduct

confidentially or anonymously, without fear of

reprisal. As outlined in SIPEF’s Code of Conduct,

whistleblowers also have direct access to the SIPEF

compliance ocer, the chairman of the audit com-

mittee, and the chairman of the board of directors.

All reported concerns regarding ethical misconduct

are thoroughly investigated, and corrective actions

are taken when necessary. Individuals found

responsible for fraud or malpractice, whether as

oenders or accomplices, are subject to penalties

proportional to the severity of their actions.

Targets and monitoring

SIPEF has not set a specific target to address the

potential material impact identified in relation

to whistleblowing but relies on other evaluation

mechanisms. SIPEF’s grievance mechanism sup-

ports the Group in monitoring and evaluating the

implementation of its policies and commitments

related to whistleblowing, including those outlined

in the Code of Conduct. This applies at both the

Group and entity levels and captures reported

actual or potential breaches.

Read more about the grievance procedure, includ-

ing ambition achieved with the procedure in 2024

and the indicators used to evaluate progress on

pages 274-276.

281

SIPEF Integrated Annual Report 2024 Sustainability Statement

282 The connection to the world of sustainable tropical agriculture

Corporate Governance

Statement

283

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

1. General

This corporate governance statement comprises

factual information with regard to the good govern-

ance of the SIPEF holdings for the 2024 financial

year and the subsequent period until the meeting

of the board of directors of 15 April 2025.

The Company has a strong corporate governance

structure focused on responsible business, proper

management, and the implementation of

The Group’s good governance guidelines are sum-

marised, among other things, in the Corporate

Governance Charter, the Remuneration Policy

and the Code of Conduct, that includes the ethics

policy, to promote and support responsible and

ethical behaviour. Collectively, these policies set

out the Group’s commitment to ethical business

conduct and corporate governance best practices.

BASIC ELEMENTS OF SIPEF’S CORPORATE GOVERNANCE

Corporate Governance

Charter

The Corporate Governance Charter (Charter) defines the structure, powers and oper-

ations of the Company’s governing bodies, and the obligations of the members of the

board of directors and of the Company’s various committees. It also contains the rules of

conduct applicable to the Company’s executives and sta when they carry out transac

tions involving SIPEF financial instruments. The Charter was approved for the first time

by the board of directors in 2005 and is regularly updated in line with the evolution of the

applicable regulations and good corporate governance practices. It was last amended on

15 April 2025. This amendment primarily updated the Charter to bring it in line with a

number of regulatory developments resulting from the law of 27 March 2024 regarding

the digitalisation of justice, regulation (EU) 2024/2809 (the "Listing Act Regulation") and

the law of 2 December 2024 transposing the CSRD. The amended version of the Charter

can be consulted on the website (www.sipef.com).

Remuneration Policy The Remuneration Policy outlines the various components of the remuneration of the

directors, the managing director, and the other members of the executive committee. It

contains the criteria and methods for calculating this remuneration. It aims to (i) attract,

reward and retain the necessary talent; (ii) achieve the Company’s strategic objectives;

and (iii) promote sustainable value creation.

Code of Conduct The Code of Conduct sets out the principles of conduct regarding responsible and ethical

behaviour for all sta, including consultants and contractors of SIPEF. It states that

SIPEF is committed to transparency, combating bribery and corruption, compliance with

all relevant international and national laws, and the prohibition of using Group facilities

or working hours for personal business. SIPEF has also implemented the Code of Conduct

in all countries where it operates.

284 The connection to the world of sustainable tropical agriculture

Moreover, SIPEF applies the principles of the

Belgian Corporate Governance Code 2020 (the

‘Code’), which it uses as a reference code. The Code

is available on the website of the Belgian Corporate

Governance Committee.

 www.corporategovernancecommittee.be

SIPEF’s corporate governance deviates from a

limited number of recommendations of the Code:

 Remuneration of the non-executive

Directors

Pursuant to Article 7.6 of the Code, non-

executive board members should receive part

of their remuneration in the form of shares in

the Company, which must be held for at least

one year after the end of their term of oce and a

minimum of three years after their award. This

requirement is designed to align non-executive

directors with the perspective of a long-term

shareholder. However, non-executive directors

are entrusted with representing the interests of

all stakeholders, not solely those of shareholders.

Furthermore, SIPEF’s activities and strategy

are inherently driven by a long-term vision.

The Company is therefore of the opinion that

it is unnecessary to extend such a vision to the

remuneration policy.

 Remuneration of the Executive Committee

Pursuant to Article 7.9 of the Code, the board

of directors should set a minimum threshold of

shares to be held by the members of the executive

committee. No such minimum is imposed, as the

members of the executive committee are always

driven by a long-term vision that is inextricably

bound up with the agro-industrial activities

of the SIPEF-group. These activities can only

be evaluated in the long term, as evidenced

by the strategy and business model of SIPEF.

Moreover, the remuneration of the members of

the executive committee is already linked to the

Company’s performance through the variable

remuneration and the granting of share options,

which remain valid for a period of ten years.

 Composition of the Nomination Committee

Pursuant to Article 4.19 of the Code, the majority

of the members of the nomination committee

should be independent non-executive directors.

At SIPEF, the full board of directors serves as

nomination committee. The Company is of

the opinion that the whole board, rather than

a smaller nomination committee, is best suited

to preparing and managing the composition

and succession planning of the board and

its committees. Moreover, the board’s size

does not hamper efficient deliberation and

decision-making.

285

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

2. Corporate Governance

Structure on 31 December 2024

A strong corporate governance policy is made

possible by a clear governance structure, which

defines the role of the highest management bodies.

This strong corporate governance policy is also

the result of SIPEF’s stable shareholder structure,

characterised by the presence of two reference

shareholders, i.e. Ackermans & van Haaren (AvH)

and the Bracht Group (see ‘Shareholder structure’

on page 328).

Despite this shareholder structure, no single

director or group of directors exercises a dominant

inﬂuence over the board’s operation.

Board of directors

Executive committee

Nomination committee

Remuneration

committee

Managing

director

Audit

commitee

286 The connection to the world of sustainable tropical agriculture

EXECUTIVE /

INDEPENDENT

MEMBER

MEETINGS OF

THE BOARD OF

DIRECTORS

ATTENDANCE

AUDIT

COMMITTEE

REMUNERATION

COMMITTEE

NOMINATION

COMMITTEE

EXECUTIVE

COMMITTEE

TERM OF

OFFICE

MEMBERS

ATTENDANCE

MEMBERS

ATTENDANCE

MEMBERS

ATTENDANCE

MEMBERS

NUMBER OF MEETINGS IN 2024 6 4 3 4

Luc Bertrand chairman 2023-2025 6/6 chairman 4/4

François Van Hoydonck

(managing director until 1

September 2024)

director 2023-2027 6/6 member 4/4

Petra Meekers

(executive director from

12 June 2024, managing

director from 1

September 2024)

managing

director

2024-2028 executive 3/3

(1)

member 2/2

(1)

chairman

Tom Bamelis director 2022-2026 6/6 chairman 4/4 member 4/4

Priscilla Bracht director 2022-2026 6/6 member 4/4

Alexandre Delen director 2022-2026 6/6 member 4/4

Antoine Friling director 2023-2027 6/6 member 4/4 chairman 3/3 member 4/4

Gaëtan Hannecart director 2024-2028 6/6 member 4/4

Yu-Leng Khor director 2021-2025 independent 6/6 member 3/3 member 4/4

Giulia Stellari director 2023-2027 independent 6/6 member 3/3 member 4/4

Nicholas Thompson director 2023-2027 independent 6/6 member 4/4 member 4/4

Charles De Wulf

(until 1 April 2024)

manager

estates

department

member

Thomas Hildenbrand manager

fruit

department

member

Robbert Kessels chief

commercial

ocer

member

Bart Cambré chief

financial

ocer

member

The term in which directors have a seat on the committees coincides with the term of their directorship.

(1) Attendance calculated from the ordinary general meeting of 12 June 2024 and based on the meetings during her directorship.

287

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

1. BOARD OF DIRECTORS

1. Role

The Company has adopted a one-tier governance

structure, consisting of the board of directors,

which acts a collegial body and is authorised to

perform all acts that are necessary or useful to

achieve the object of the Company, except for those

for which the general meeting is authorised by law.

The board of directors pursues sustainable value

creation by the Company, by setting the Company’s

strategy, putting in place eective, responsible and

ethical leadership and monitoring the Company’s

performance. As a general rule, the board of direc-

tors is responsible for the general management of

the Company and for the supervision of the daily

management, which is the responsibility of the

executive committee.

The responsibilities of the board of directors are

further detailed in the Company’s articles of asso-

ciation and Charter.

2. General rules governing the composition

The Company’s board of directors must consist of at

least three members, at least half of which shall be

non-executive directors and at least three of which

shall be independent. Moreover, at least one-third

of the directors must be of a dierent gender than

the remaining directors.

The composition of the board of directors must

ensure efficient decision-making while also

comprising members with diverse backgrounds,

expertise and skills. Its size must moreover allow

the board to accommodate changes in composition

without disrupting operations.

Directors are appointed by the general meeting for

a maximum term of four years and may be reap-

pointed. They may be terminated at any time by

the general meeting. The board of directors elects a

chairman from among its non-executive members.

The rules governing the composition of the board

of directors are further detailed in the Company’s

articles of association and Charter.

3. Composition on 31 December 2024

On 31 December 2024, the board of directors was

composed of the following 11 members:

288

The connection to the world of sustainable tropical agriculture

Luc Bertrand

chairman

Tom Bamelis

director

Antoine Friling

director

Nicholas Thompson

independent director

Giulia Stellari

independent director

Petra Meekers

managing director

Priscilla Bracht

director

Alexandre Delen

director

Yu-Leng Khor

independent director

François Van Hoydonck

director

Gaëtan Hannecart

director

The curricula vitae of the directors are available on the Company website:

 www.sipef.com/hq/about-sipef/board-management/

289

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

Term of office Age profile

(1)

Gender diversity Independent directors

(2)

45%27%

18%

27%

36%

27%

36% 64% 27% 73 %

< 5 years: 5

5 - 9 years: 2

10 - 14 years: 0

15 - 20 years: 3

> 20 years: 1

40 - 49 years: 3

50 - 59 years: 3

60 - 70 years: 4

> 70 years: 1

Male: 7

Female: 4

Dependent: 8

Independent: 3

(1) The age limit is set at 70 years, but, in the interest of the Company, the board of directors can request a director to continue his or her mandate

after the age of 70 years.

(2) These directors fulfil all independence criteria stated in Article 7:87§1 of the Companies Code and in Principle 3 of the Code.

290 The connection to the world of sustainable tropical agriculture

5. Diversity

POLICY APPLICATION

The board can only deliberate and make decisions eciently

when the number of members is limited, and the appropriate

diversity is present on the board.

The Company applies various criteria when appointing

directors: experience, knowledge, training, age, gender and

nationality.

The board also gives special attention to the complementary

competencies of its members, which are often associated with

the diverse backgrounds of the directors.

The Company also endeavours to protect the interests of all

stakeholders through the presence of independent directors.

SIPEF does not tolerate any form of discrimination.

The background and professional experience of the members

are very diversified within the board. They extend over the

agricultural, biochemical, financial, manufacturing, marketing

and IT sectors. Sustainability being a key aspect of all activities

of the SIPEF group, the Company ensures that the necessary

expertise in this area is also present in the board.

At 31 December 2024, five nationalities were represented by

the members of the board: Belgian, British, Dutch, Italian and

Malaysian.

Women have sat on the SIPEF’s board of directors for many

years. Priscilla Bracht was the first female director, appointed

in 2004, followed by Sophie Lammerant-Velge in 2011. In 2017,

the number of female directors increased to three, when Petra

Meekers was co-opted to replace Antoine de Spoelberch. In

2021, Petra Meekers transitioned from the board to the exec

utive committee and was succeeded by a new female director,

Yu-Leng Khor. In 2023, Sophie Lammerant-Velge's left the

board and was succeeded by Giulia Stellari as new female

director. Throughout this period, three of the ten directors

have consistently been women. With the appointment of Petra

Meekers as executive and subsequently managing director, the

number of women on SIPEF’s board of directors increased to

four out of eleven as from 12 June 2024.

SIPEF also aspires to have a sucient number of independent

directors on its board of directors. At the end of 2024, three of

the eleven directors were independent.

4. Changes to the composition of the board of directors in 2024

François Van Hoydonck retired as managing

director of the Company on 1 September 2024,

transitioning to non-executive director.

Following decisions of the board of directors on 16

April 2024 and the ordinary general meeting on 12

June 2024, Petra Meekers (already a member of the

executive committee as ‘chief operating ocer Asia-

Pacific’) was appointed as executive director of the

board as of 12 June 2024, in view of her transition to

managing director (and chairman of the executive

committee) on 1 September 2024 in succession of

François Van Hoydonck.

The ordinary general meeting of 12 June 2024

also renewed the mandate of Gaëtan Hannecart

as non-executive director for a term of four years.

Renewal of directorships in 2025

The mandates of Luc Bertrand and Yu-Leng Khor

expire at the ordinary general meeting of 11 June

2025. The board of directors will propose to the

ordinary general meeting to renew the mandate

of (i) Luc Bertrand as non-executive director for

a term of one year and (ii) Yu-Leng Khor as inde-

pendent director for a term of four years.

291

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

6. Directorships in other listed companies

The Code limits the number of directorships that

a director is permitted to hold in listed companies

to a maximum of five.

As of 31 December 2024, the following directors

hold directorships in listed companies other than

SIPEF:

Luc Bertrand:

 Ackermans & van Haaren NV

 Aannemingsmaatschappij CFE Group NV

 DEME Group NV

Tom Bamelis:

 DEME Group NV

Gaëtan Hannecart:

 Financière de Tubize NV

7. Activity report

General rules governing the functioning

of the board of directors

The board of directors meets at least six times a

year and whenever the interest of the Company

demands it or when requested by at least two

directors.

The board of directors can validly deliberate if the

majority of its members are present or represented

at the meeting. Decisions are validly adopted by

simple majority of the votes. In the event of a tie,

the chairman has a casting vote.

The rules governing the functioning of the board

of directors are further detailed in the Company’s

articles of association and Charter.

Meetings of the board of directors in 2024

The Company’s board of directors met six times

in 2024.

At the meetings in February and August, the board

of directors established the annual and semi-annual

financial statements and dealt with respective press

releases. The meeting in September deliberated on

the Group strategy and material ESG topics.

Each meeting of the board of directors receives a

report drawn up by the executive committee on the

development of the activities of the various sub-

sidiaries. Moreover, sustainability briefing papers

are submitted to every board meeting, covering

critical sustainability topics, such as certification,

biodiversity projects, preparation for sustainability

reporting frameworks (including the EU Corporate

Sustainability Reporting Directive (CSRD) and

the European Sustainability Reporting Standards

(ESRS), implementation of the European Union

Deforestation Regulation (EUDR)), occupation

health and safety (OHS) reporting, and regulatory

and jurisprudential developments.

In addition, the board dealt with the following spe-

cific subjects, among others, at its various meetings:

 future strategy of SIPEF, including value

creation and supply chain opportunities for the

Group;

 short-term budgets and long-term business plans

for the Group;

 risk analysis, internal audit and internal control

within the Group;

 double materiality assessment of business and

sustainability risks and impacts in accordance

with CSRD and ESRS;

292

The connection to the world of sustainable tropical agriculture

 remuneration of directors and executive

committee members;

 succession planning within the Group;

 integrated annual report 2023, including the

remuneration report;

 organising and convening the ordinary general

meeting of 12 June 2024;

 2024 management option plan;

 GHG emissions 2024;

 review and approval of various policies, including

the Grievance Policy, Anti-Corruption and Anti-

Bribery Policy, Responsible Plantations Policy

and Responsible Purchase Policy;

 various corporate governance topics;

 ongoing implementation of the new Enterprise

Resource Planning (ERP) software in the Group.

8. Assessment

The Company has a rigorous and transparent pro-

cedure for evaluating its governance, including the

following assessments:

 Governance structure review: At least once

every five years, the board of directors reviews

whether the chosen governance structure

remains appropriate. If deemed no longer

suitable, the board proposes a new governance

structure to the general meeting. In 2020,

the board of directors confirmed the one-tier

governance structure as the most appropriate

for the Company, as reﬂected in the articles of

association adopted that year.

 Board and committee assessments: At

least every three years, the board of directors

– potentially assisted by external experts –

evaluates its size, composition and functioning,

and that of its committees, as well as its

performance. The latest assessment took place

in August and September 2024, concluding

that the current composition and functioning

of the board and its committees are appropriate

to the Company’s needs and that the board’s

performance was rated positively overall.

 Evaluation relationship board of directors-

executive committee: Every year, the non-

executive directors review the relationship

between the board of directors and executive

committee, in the absence of the managing

director. The evaluation in August 2024

confirmed transparent and good relationship

between the executive committee and the board

of directors.

 Director evaluation: At the end of a director’s

term, the board of directors – acting as

nomination committee and in the absence of

the director concerned – assesses that director’s

attendance, individual contribution to the

functioning, deliberation and decision-making

of the board, and alignment with evolving

circumstances.

The board acts on the outcomes of these assess-

ments, taking appropriate measures, including

proposing new appointments, reconsidering

re-appointments or other adjustments deemed

appropriate for the eective operation of the board

of directors.

293

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

2. EXECUTIVE COMMITTEE

1. Role

The executive committee is a collegial body to

which the board of directors has delegated the daily

management. It has the appropriate operational

freedom and resources to perform its responsibil-

ities properly. In practice, the committee prepares

all decisions of the board of directors and ensures

all decisions made are implemented.

The executive committee reports to the board of

directors on the performance of its responsibilities

throughout the year.

The responsibilities of the executive committee

are further detailed in the Company’s articles of

association and Charter.

2. General rules governing the composition

The executive committee is chaired by the manag-

ing director, Petra Meekers.

The board of directors appoints and dismisses

the members of the executive committee. They

are in principle appointed for an indefinite term.

This ensures continuity in the functioning of the

executive committee.

The board of directors endeavours to limit the

membership of the executive committee to ensure

ecient deliberation and decision-making while

ensuring that it comprises individuals of integrity

with diverse expertise in management, finance

and law, possessing the necessary knowledge and

complementary skills to fulfil their duties properly.

The rules governing the composition of the

executive committee are further detailed in the

Company’s articles of association and Charter.

3. Composition on 31 December 2024

On 31 December 2024, the executive committee was

composed of the following four members:

294

The connection to the world of sustainable tropical agriculture

Petra Meekers

managing director

chairman of the executive

committee

Robbert Kessels

chief commercial officer

Bart Cambré

chief financial officer

Thomas Hildenbrand

fruit department manager

The curricula vitae of the members of the executive committee

are available on the Company website:

 www.sipef.com/hq/about-sipef/board-management/

Term of office

(1)

Age profile

(2)

Gender diversity

75% 25% 25% 25%

50%

25% 75%

< 4 years: 1

4 - 10 years: 3

40 - 49 years: 1

50 - 59 years: 2

60 - 65 years: 1

Male: 3

Female: 1

(1) The executive committee was established in 2014.

(2) The age limit is set at 65 years, but, in the interest of the Company, the board of directors can request a member of the executive committee to

continue his or her mandate after the age of 65 years.

295

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

296 The connection to the world of sustainable tropical agriculture

4. Changes to the composition of the executive committee in 2024

In 2024, the composition of the executive commit-

tee underwent significant changes, reducing from

six to four members.

Bart Cambré joined the executive committee as

chief financial ocer as of 1 January 2024, suc-

ceeding Johan Nelis.

As of 1 April 2024, Charles De Wulf stepped down

from the executive committee to assume the role of

general manager of Plantations J. Eglin SA, taking

over responsibility for the banana business in Côte

d'Ivoire.

Additionally, François Van Hoydonck retired as

managing director and chairman of the executive

committee of the Company on 1 September 2024,

transitioning to non-executive director.

Following decisions of the board of directors on 16

April 2024 and the ordinary general meeting on 12

June 2024, Petra Meekers, already a member of the

executive committee as ‘chief operating ocer Asia-

Pacific’, was appointed as executive director of the

board as of 12 June 2024, in view of her transition to

managing director and chairman of the executive

committee on 1 September 2024 in succession of

François Van Hoydonck.

5. Diversity

POLICY APPLICATION

The Diversity Policy, on which basis the composition of the

board of directors is determined, also applies to the executive

committee. A balanced and varied composition is all the more

important for the committee, which must be composed of a

limited number of people with the knowledge and experience

to be able to handle all aspects of the Company’s activities.

When appointing the members of the executive committee, the

Company is primarily focused on the experience, knowledge

and training of the candidates to ensure sucient complemen

tary competence is present.

Age, gender and nationality are other criteria that are consid

ered. They guarantee diverse ways of thinking and acting.

No form of discrimination is tolerated.

All members of the executive committee have their own spe

cific competence in various fields, being agrarian management,

sustainability, commercial and administrative management,

finance, legal and IT. Where necessary, the members have the

required experience in countries where SIPEF is active or in

countries in tropical and subtropical regions.

There are three dierent nationalities in the committee:

French, Dutch and Belgian.

SIPEF is committed to gender diversity at all levels of the

Company, with women holding key positions both in Belgium

and abroad. This commitment was rearmed in 2021 with

the appointment of Petra Meekers to the executive committee

and further strengthened with her appointment as managing

director and chairman of the executive committee as of 1

September 2024.

297

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

6. Activity report

General rules governing the functioning

of the executive committee

As a general rule, the executive committee meets

weekly and whenever needed for urgent decisions.

It may validly deliberate when a majority of its

members are present or represented at the meeting.

Decisions are validly adopted by a simple majority

of the votes.

The rules governing the functioning of the

executive committee are further detailed in the

Company’s articles of association and Charter.

Meetings of the executive

committee in 2024

In practice, the executive committee prepares all

decisions of the board of directors and ensures

all decisions made are implemented. Each year,

the committee prepares the individual and

consolidated financial statements, as well as the

quarterly figures of the Group. It also designs the

press releases to be published. It establishes the

short-term budgets and long-term business plans

that are submitted to the board for approval. It also

prepares the necessary sensitivity analyses as part

of the strategic plan as well as for the annual budget,

in order to assess the appropriate risk profile of the

decisions to be made. It follows the operational,

financial and sustainability developments of the

Group and makes related presentations for the

board of directors. It formulates proposals con-

cerning the future strategy.

Moreover, the executive committee regularly

reviews SIPEF’s sustainability progress and per-

formance, receiving ongoing reports from the group

head of sustainability. These reports cover various

ESG topics and updates, including certification pro-

gress, SIPEF’s GHG calculations, fire and tree cover

loss monitoring, and health and safety metrics.

Specifically, in 2024, the committee considered,

among other things:

 proposals on innovation and value chain

opportunities for the SIPEF group;

 ongoing implementation of the new Enterprise

Resource Planning (ERP) software;

 critical sustainability topics, including

certification, biodiversity projects, EUDR

implementation, OHS monitoring and reporting,

fire and tree loss monitoring;

 calculation and evaluation of the Group's

greenhouse gas emissions (GHG);

 preparation of double materiality analysis and

assessment of business and sustainability risks

and impacts in accordance with CSRD and ESRS;

 various draft texts, including those of the

half-year report and of the second and third

integrated annual report, including the

remuneration report;

 review and draft texts of various policies,

including the Grievance Policy, Anti-Corruption

and Anti-Bribery Policy, Responsible Plantations

Policy and Responsible Purchase Policy;

 approving a Group Policy Procedure;

 national, international, and European legislative

initiatives on sustainability and their impact on

the Group.

298

The connection to the world of sustainable tropical agriculture

7. Assessment

The Company has a rigorous and transparent pro-

cedure for evaluating its governance, including the

following assessments:

 Executive committee evaluation: The

remuneration committee assesses the

composition, operation and performance of

the executive committee. Each year, together

with the managing director, it evaluates the

contribution of each member of the executive

committee to the development of the Group’s

activities and results. The managing director,

as chairman of the executive committee, does

not participate in the evaluation of his or her

own performance.

 Evaluation relationship board of directors-

executive committee: Every year, the non-

executive directors review the relationship

between the board of directors and executive

committee, in the absence of the managing

director. The evaluation in August 2024

confirmed transparent and good relationship

between the executive committee and the board

of directors.

 Ongoing performance review: Throughout

the year, the board of directors evaluates the

executive committee based on its work and

preparations for the board.

The board acts on the outcomes of these assess-

ments, taking appropriate measures, including

proposing new appointments, reconsidering re-ap-

pointments or other adjustments deemed appro-

priate for the eective operation of the executive

committee.

299

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

3. COMMITTEES OF THE BOARD OF DIRECTORS

1. Audit committee

Role

The audit committee supports the board of direc-

tors in the fulfilment of its monitoring responsi-

bilities for the purposes of control in the widest

sense, including the risks. The audit committee’s

supervisory mandate and related reporting obli-

gations apply to the Company and all subsidiaries

belonging to the Group.

The audit committee regularly reports to the board

of directors on the execution of its duties, and at a

minimum, when the board prepares the individual

and consolidated financial statements and related

financial and sustainability reporting.

The specific responsibilities of the audit committee

are further detailed in the Charter.

General rules governing the composition

The audit committee is composed of at least three

members, all of whom are non-executive directors.

At least one member is an independent director and

at least one has accounting and auditing expertise.

Moreover, the members collectively have expertise

in the Company’s field of activities.

The board of directors appoints the members of

the audit committee from among its directors for a

term not exceeding their (remaining) directorship

term. The audit committee designates one of its

members as chairman, who cannot simultaneously

be chairman of the board of directors.

The rules governing the composition of the audit

committee are further detailed in the Charter.

Composition on 31 December 2024

On 31 December 2024, the audit committee was

composed of the following three members:

Tom Bamelis

chairman

Nicholas Thompson

member

Antoine Friling

member

The curricula vitae of the members of the audit committee are available on the Company website:

 www.sipef.com/hq/about-sipef/board-management/

300 The connection to the world of sustainable tropical agriculture

Changes to the composition of

the audit committee in 2025

At its meeting in November 2024, the board of

directors appointed Giulia Stellari, independent

director, as a member of the audit committee eec-

tive 1 January 2025. With extensive experience in

sustainability within the industrial agricultural

sector, the board considers her well-qualified

to support the audit committee in fulfilling its

enhanced responsibilities under the CSRD.

Activity report

   

    

The audit committee meets at least four times a

year and whenever it deems it necessary to prop-

erly perform its duties. The rules governing the

functioning of the audit committee are further

detailed in the Charter.

      2024

In February and August 2024, the audit commit-

tee’s primary focus was on analysing the annual

and semi-annual financial statements and the press

release relating to these statements. The meeting in

November 2024 focussed on the double materiality

assessment of business and sustainability risks and

impacts in accordance with CSRD and ESRS. At

each of these meetings, the auditor presented the

results of the audit of these statements.

In addition, the following were also explained and

discussed during the various meetings:

 various accounting topics and processing;

 financial covenant on the long-term loan and its

evolution;

 existing risks and their classification;

 corporate tax strategy;

 reports of the internal audit committees of the

various subsidiaries;

 evaluation of the auditor's relationship with

management and the finance department.

The external auditor attended all the meetings of

the audit committee in 2024.

The meetings of the audit committee were also

attended by the Company’s managing director and

chief financial ocer. Moreover, a representative

of the reference shareholder, AvH, attended all

meetings in 2024.

The internal auditors of the Company’s operational

subsidiaries did not attend the meetings of the

audit committee. The managing director and chief

financial ocer held meetings with the local inter-

nal audit managers in Indonesia and Papua New

Guinea, in the course of the financial year 2024.

Age profile Gender diversity Independent directors

67% 33%

100%

67% 33%

50 - 59 years: 1

60 - 70 years: 2

Independent

(1)

: 1

Other: 2

Male: 3

Female: 0

(1) These directors fulfil all independence criteria stated in Article 7:87§1 of the Companies Code and in Principle 3 of the Code.

301

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

2. Remuneration committee

Role

The remuneration committee advises the board

of directors regarding the remuneration of the

members of the board of directors and the exec-

utive committee. The specific responsibilities of

the remuneration committee are further detailed

in the Charter.

General rules governing the composition

The remuneration committee is composed of at

least three members, all of whom are non-executive

directors and the majority of which are independent

directors. Moreover, the members of the remuner-

ation committee dispose of the required expertise

in remuneration policy.

The board of directors appoints the members of the

remuneration committee from among its directors

for a term not exceeding their (remaining) direc-

torship term. The chairman of remuneration com

mittee is also designated by the board of directors.

The rules governing the composition of the remu-

neration committee are further detailed in the

Charter.

Composition on 31 December 2024

On 31 December 2024, the remuneration committee

was composed of the following three members:

Antoine Friling

chairman

Giulia Stellari

member

Yu-Leng Khor

member

The curricula vitae of the members of the remuneration committee are available on the Company website:

 www.sipef.com/hq/about-sipef/board-management/

302 The connection to the world of sustainable tropical agriculture

Activity report

  

   

 

The remuneration committee meets at least twice

a year and whenever it deems it necessary to prop-

erly perform its duties. The rules governing the

functioning of the remuneration committee are

further detailed in the Charter.

    

 2024

In 2024, the remuneration committee considered

the following issues:

 benchmarking of the compensation of the

Group's expatriates, managers and directors;

 setting of the fixed remuneration of managers

and directors;

 determination of the Group's bonus pool;

 individual assessment of management and

proposal of variable remuneration payable in

2024;

 remuneration policy and draft of remuneration

report;

 evaluating and updating succession planning;

 draft of the share option plan 2024 for the

Group's managers.

The managing director also attended the meetings

of the remuneration committee. Moreover, a repre-

sentative of each of the reference shareholders, AvH

and the Bracht Group, was present at all meetings

in 2024.

Age profile Gender diversity Independent directors

33% 33%

33%

67% 33%

33% 67%

40 to 49 years: 1

50 - 59 years: 1

60 - 70 years: 1

Independent

(1)

: 2

Other: 1

Male: 1

Female: 2

(1) These directors fulfil all independence criteria stated in Article 7:87§1 of the Companies Code and in Principle 3 of the Code.

303

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

3. Nomination committee

Role

The board of directors, in its capacity as nomination

committee, strives to organise an objective and

professional appointment process. The specific

responsibilities of the nomination committee are

further detailed in the Charter.

Composition

The nomination committee is composed of all

members of the board of directors and is chaired

by the chairman of the board of directors. The rules

governing the composition of the nomination com-

mittee are further detailed in the Charter.

Activity report

  

   

 

The board of directors, in its capacity as nomination

committee, meets at least twice a year and when-

ever it deems it necessary to properly perform its

duties. The rules governing the functioning of the

nomination committee are further detailed in the

Charter.

   

  2024

In 2024, the board of directors, in its capacity of

nomination committee, considered the following

issues:

 interaction between the board of directors and

the executive committee, in the absence of the

managing director;

 renewal of mandates a non-executive directors;

 renewal of the mandate of the external auditor;

 appointment of an audit committee member;

 appointment of a new managing director;

 appointment of a company secretary and

compliance ocer.

4. Assessment of the committees of the board of directors

The Company has a rigorous and transparent

procedure for evaluating its governance. This

includes, at least every three years, an evaluation

by the board of directors – potentially assisted

by external experts – of its size, composition and

functioning, and that of its committees, as well as

its performance. The latest assessment took place

in August and September 2024, concluding that

the current composition and functioning of the

board and its committees are appropriate to the

Company’s needs.

304

The connection to the world of sustainable tropical agriculture

3. Remuneration Report

1. INTRODUCTION

The present Remuneration Report has been

prepared in accordance with Article 3:6, §3 of

the Companies Code, as amended by the law

of 28 April 2020, enacting into Belgian law the

European Union (EU) directive encouraging long-

term shareholder engagement. It also reﬂects the

Remuneration Policy that was approved by the gen-

eral meeting of 9 June 2021 with a majority of 95.8%

of the votes. The detailed text of the Remuneration

Policy is published on the Company website.

 www.sipef.com

The Remuneration Report provides a comprehen-

sive overview of all aspects of the remuneration,

including all benefits in whatever form that were

awarded, to the non-executive directors, the

managing director and the other members of the

executive committee during the financial year

2024. It contains a detailed presentation of the

remuneration of every member of the executive

committee, the collegiate body that is responsible

for daily management.

In November 2023, the board of directors decided

to limit the increase in the fixed remuneration of

the members of the executive committee, including

the managing director, for 2024 to the adjustment

based on the contractual consumer index. This

decision followed a benchmarking exercise, which

indicated that the fixed remuneration was generally

in line with the benchmark average.

All members of the executive committee received

variable remuneration in 2024, determined based

on the 2023 recurring consolidated result and the

management's performance during that year.

These performances were marked by significant

developments and operations, as outlined in the

section ‘Highlights of 2023’ (see Integrated Annual

Report 2023, pages 10-13). The significant events,

results of 2024, as well as sustainability KPIs, will

be decisive for the variable remuneration of the

executive management, to be paid in 2025.

In 2024, the composition of the executive com-

mittee underwent significant changes, reducing

from six to four members. Bart Cambré joined

the executive committee as chief financial ocer

as from 1 January 2024, succeeding Johan Nelis.

Charles De Wulf stepped down as a member of the

Company’s executive committee to assume the

role of general manager of the subsidiary in Côte

d’Ivoire, Plantations J. Elgin SA, eective 1 April

2024. Additionally, François Van Hoydonck retired

as managing director and chairman of the executive

committee of the Company on 1 September 2024,

transitioning to non-executive director. Petra

Meekers, already a member of the executive com-

mittee as ‘chief operating ocer Asia-Pacific’, was

appointed as executive director of the board as of 12

June 2024, in view of her taking over as managing

director and chairman of the executive committee

as of 1 September 2024. The impact of these changes

on their remuneration is detailed below.

Except for Petra Meekers' appointment as man-

aging director, there were no major changes to

the composition of the board of directors with

an impact on the remuneration of the members.

However, as of 1 January 2024, directors' emolu-

ments were increased following a benchmarking

exercise against comparable companies, which

indicated that the remuneration of SIPEF’s direc-

tors was generally lower than market practice.

These amended emoluments will be submitted for

ratification to the ordinary general meeting as part

of the approval of the 2024 remuneration report.

The remuneration of the members and chairmen of

the audit committee and remuneration committee

remained unchanged as they were found to be gen-

erally in line with the benchmark average.

305

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

2. TOTAL REMUNERATION

OF THE DIRECTORS

The directors receive a fixed remuneration that

is not linked to the results. This remuneration

consists of the emoluments for the meetings of the

board of directors and, where applicable, remuner-

ation for membership of a given committee.

In 2024, the directors received the following

remuneration:

ON AN ANNUAL BASIS PER PERSON MEMBER CHAIRMAN

Board of directors EUR 40 000 EUR 120 000

Audit committee EUR 7 500 EUR 9 750

Remuneration committee EUR 4 000 EUR 5 200

BOARD OF

DIRECTORS

AUDIT

COMMITTEE

REMUNERATION

COMMITTEE TOTAL

IN KEUR 2023 2024 2023 2024 2023 2024 2023 2024

Luc Bertrand 90.00 120.00 0.00 0.00 0.00 0.00 90.00 120.00

Petra Meekers (from 12 June 2024) 0.00 20.00 0.00 0.00 0.00 0.00 0.00 20.00

François Van Hoydonck 35.00 40.00 0.00 0.00 0.00 0.00 35.00 40.00

Tom Bamelis 35.00 40.00 9.75 9.75 0.00 0.00 44.75 49.75

Priscilla Bracht 35.00 40.00 0.00 0.00 0.00 0.00 35.00 40.00

Alexandre Delen 35.00 40.00 0.00 0.00 0.00 0.00 35.00 40.00

Antoine Friling 35.00 40.00 3.75 7.50 5.20 5.20 43.95 52.70

Gaëtan Hannecart 35.00 40.00 0.00 0.00 0.00 0.00 35.00 40.00

Yu-Leng Khor 35.00 40.00 0.00 0.00 4.00 4.00 39.00 44.00

Sophie Lammerant-Velge (until 14 June 2023) 17.50 0.00 3.75 0.00 2.00 0.00 23.25 0.00

Giulia Stellari (from 14 June 2023) 17.50 40.00 0.00 0.00 2.00 4.00 19.50 44.00

Nicholas Thompson 35.00 40.00 7.50 7.50 0.00 0.00 42.50 47.50

TOTAL 405.00 500.00 24.75 24.75 13.20 13.20 442.95 537.95

The outgoing and incoming directors are remunerated in accordance with the number of months they

served as director in the financial year.

The non-executive directors do not receive any variable remuneration or options. Neither is part of their

remuneration paid out in the form of shares of the Company. They benefit from director liability insurance.

306 The connection to the world of sustainable tropical agriculture

3. TOTAL REMUNERATION OF THE MEMBERS OF THE

EXECUTIVE COMMITTEE

The members of the executive committee, consist

ing of the managing director and other managers of

the Company, receive fixed remuneration, variable

remuneration and, possibly, share options.

The Company has not set any minimum number

of shares that must be held by the members of the

executive management. No shares were awarded to

the members of the executive committee in 2024.

2024

IN KEUR PM FVH BC CDW TH RK JN TOTAL %

Board remuneration 20 40 0 0 0 0 0 60 1.5%

Fixed remuneration 767 365 319 78 308 358 0 2 195 54.8%

Variable remuneration 239 365 66 177 164 166 200 1 377 34.3%

Pension contributions 48 167 46 12 43 0 0 316 7.9%

Other 5 12 6 3 11 24 0 61 1.5%

SUBTOTAL 1 079 949 437 270 526 548 200 4 009 100.0%

Market value vested share option (begin exercise period)

(1)

0 0 0 0 0 0 0 0

TOTAL REMUNERATION 1 079 949 437 270 526 548 200 4 009

Subtotal 100% 100% 100% 100% 100% 100% n/a 100%

Fixed 78% 62% 85% 34% 69% 70% n/a 66%

Variable 22% 38% 15% 66% 31% 30% n/a 34%

2023

IN KEUR PM FVH BC CDW TH RK JN TOTAL %

Board remuneration 0 35 0 0 0 0 0 35 0.6%

Fixed remuneration 689 537 0 308 300 354 401 2 589 47.0%

Variable remuneration 0 815 0 320 330 403 494 2 362 42.9%

Pension contributions 11 251 0 46 43 0 46 397 7.2%

Other 56 20 0 9 12 24 7 128 2.3%

SUBTOTAL 756 1 658 0 683 685 781 948 5 511 100.0%

Market value vested share option (begin exercise period)

(1)

0 50 0 17 17 17 17 118

TOTAL REMUNERATION 756 1 708 0 700 702 798 965 5 629

Subtotal 100% 100% n/a 100% 100% 100% 100% 100%

Fixed 100% 51% n/a 53% 52% 48% 48% 57%

Variable 0% 49% n/a 47% 48% 52% 52% 43%

(1) For more details on the respective option plans (respectively, SOP 2021 and SOP 2020) see below.

307

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

Johan Nelis stepped down as chief financial ocer

and left the executive committee as of 1 January

2024, with Bart Cambré succeeding him in this role

from the same date. In 2024, Johan Nelis received

variable remuneration for his performance as a

member of the Executive Committee during the

2023 financial year. Additionally, he received a

fixed fee for consultation services provided to the

Company during a six-month transition period.

Additionally, in 2024, Bart Cambré received var-

iable remuneration in his capacity as a member

of sta.

The managing director receives emoluments

for participating in the meetings of the board of

directors and, additionally, a fixed and variable

remuneration for his executive duties.

1. Fixed remuneration

The members of the executive committee receive a

fixed remuneration and benefit from group insur-

ance with fixed contributions. This comprises a

supplementary pension, as well as disability and

life insurance. In addition, the Company has

taken out hospitalisation insurance and assistance

insurance with global cover for every member.

Management also benefits from a company car

and meal vouchers.

2. Variable remuneration

The total amount of the variable remuneration paid

to both the sta and the members of the executive

committee from the SIPEF Headquarters cannot

be more than 2% of the consolidated recurring

result before tax, share of the Group. The maximum

amount of the variable short-term remuneration in

cash of each member of the executive committee

is set at two times the fixed remuneration of this

member.

The ultimate individual amount of the variable

remuneration awarded to each of the members is

set in a discretionary manner (based on financial

and non-financial criteria) by the board of directors,

on the proposal of the remuneration committee.

This committee makes a proposal based on the

various components of the profit of the financial

year and the contribution of each member of the

executive committee to its achievement. In doing

so, the remuneration committee is guided, among

others, by objectively measurable criteria, set in

advance and applied for a period of one financial

year.

The linking of the variable remuneration to perfor

mance in one financial year – rather than perfor-

mance criteria over two or three financial years as

laid down by law – is justified by the volatility of the

results of the agro-industrial activities, particularly

the palm oil market, the performance of which is

linked to the price of agricultural raw materials.

It is therefore logical that the remuneration of

the sta and management, like the shareholder

dividend, changes with the volatility of the Group.

The Company strictly applies this reasoning every

year. This means that if the Group incurs a loss in

a given year, no variable remuneration or dividend

308 The connection to the world of sustainable tropical agriculture

is paid the following year to the members of the

executive committee and the shareholders respec-

tively. This was the case in 2020, when no variable

remuneration and dividend were paid due to the

loss in 2019.

Setting the variable remuneration on the basis

of performance in one financial year does not

undermine the long-term vision of the executive

management. This vision is inextricably bound

up with the agro-industrial activities of the SIPEF

group, which can only be evaluated in the long term,

as evidenced by the strategy of SIPEF.

Moreover, the board of directors did not award

any special bonuses to any members for specific

accomplishments in 2024.

Besides the short-term variable remuneration, the

members of the executive committee receive no

long-term variable remuneration in cash.

3. Clawback

All members of the executive committee have

signed a clawback clause. This means that the

Company is entitled to demand variable net remu-

neration is returned if it was awarded on the basis

of incorrect financial data.

The Company did not trigger this clawback clause

in 2024.

4. Consistency between remuneration and remuneration

policy and application of the performance criteria

The total remuneration of the directors and the

members of the executive committee is completely

in line with the remuneration policy and is calcu-

lated and applied in a transparent way.

The fixed remuneration of the members of the

board of directors and the executive committee is

benchmarked on an annual basis against market

practice and is, therefore, considered to be in line

with the market.

The variable remuneration is linked to the annual

results of the Group, which depend directly on the

volatile prices of agricultural raw materials.

The Company notifies its shareholders, manage-

ment, employees and all other stakeholders on a

continual basis, and in a proper and transparent

way, about developments with regard to the activi-

ties, sustainability, performance and corporate gov-

ernance of the Group. Since 2020, this transparency

has been provided in even more detail in this report,

with regard to the remuneration of the members of

the executive committee. Clear communication and

transparency are the cornerstones of satisfaction,

keep people motivated and contribute to good long-

term performance. This way, sta and management

remain motivated and dedicated to achieving the

long-term goals the Group has set.

309

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

5. Share option plan

Share options have been oered to members of the

executive committee every financial year since

2011. The share options offered in the SIPEF

Share Option Plan 2024 have the following

characteristics:

 Type: existing Company share options (i.e. one

option grants the holder the right to subscribe

to one Company share, with the same rights as

the other existing Company shares).

 Time of the oer: mid-November.

 Exercise price: the lower of (i) the closing price

of the share preceding the date of the oer, and

(ii) the average closing price of the share during

30 days preceding the date of the oer.

 Term of the plan: 10 years.

 Exercise term: from 1 January of the year

following the third anniversary of the grant,

up to and including the end of the tenth year

after the date of the oer.

 No performance criteria have been set for the

granting or exercise of share options.

Options granted to the members of

the executive committee in 2024

On 14 November 2024, options were granted by

the Company to the members of the executive

committee. These options were accepted by the

beneficiaries as follows:

Another 6 000 options were granted to general

managers of the foreign subsidiaries.

The options granted in 2024 have the following

characteristics:

 Exercise price: EUR 56.88

 Expiry date: 13 November 2034

 Exercise period: At any time from 1 January 2028

up to and including 13 November 2034

NUMBER

Petra Meekers 6 000

Bart Cambré 2 000

Thomas Hildenbrand 2 000

Robbert Kessels 2 000

TOTAL 12 000

BREAKDOWN OF THE SIPEF STOCK OPTION PLAN SOP VESTED NOT VESTED

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Oer 18/11/14 28/11/15 07/12/16 23/11/17 20/11/18 23/11/19 19/11/20 18/11/21 17/11/22 15/11/23 14/11/24

Vesting 18/11/17 28/11/18 07/12/19 23/11/20 20/11/21 23/11/22 19/11/23 18/11/24 17/11/25 15/11/26 14/11/27

Exercise period begin: 01/01/18 01/01/19 01/01/20 01/01/21 01/01/22 01/01/23 01/01/24 01/01/25 01/01/26 01/01/27 01/01/28

Exercise period end:

(1)

17/11/24 27/11/25 06/12/26 22/11/27 19/11/28 22/11/29 18/11/30 17/11/31 16/11/32 14/11/33 13/11/34

Exercise price (in EUR) 54.71 49.15 53.09 62.87 51.58 45.61 44.59 58.31 57.70 52.70 56.88

Market price begin exercise period

(in EUR)

62.80 48.80 54.80 43.20 56.90 58.90 53.00 56.80

(1) latest exercise date

310 The connection to the world of sustainable tropical agriculture

FRANÇOIS VAN HOYDONCK

MEMBER OF THE EXECUTIVE COMMITTEE UNTIL 1 SEPTEMBER 2024 VESTED NOT VESTED

SOP 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL

Oer not yet vested 0 0 0 0 0 0 0 0 6 000 6 000 0 12 000

Vested before end of 2024 6 000 6 000 6 000 6 000 6 000 6 000 6 000 6 000 0 0 0 48 000

Exercised in 2024 -6 000 0 0 0 0 0 0 0 0 0 0 -6 000

Expired in 2024 0 0 0 0 0 0 0 0 0 0 0 0

Total share options at the end of the year 0 6 000 6 000 6 000 6 000 6 000 6 000 6 000 6 000 6 000 0 54 000

Vested at exercise price (in EUR) 267 540 349 860

Vested at market price (in EUR) 318 000 340 800

Latent capital gain at vesting date (in EUR) 50 460 0

PETRA MEEKERS VESTED NOT VESTED

SOP 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL

Oer not yet vested 0 0 0 0 0 0 0 0 0 2 000 6 000 8 000

Vested before end of 2024 0 0 0 0 0 0 0 0 0 0 0 0

Exercised in 2024 0 0 0 0 0 0 0 0 0 0 0 0

Expired in 2024 0 0 0 0 0 0 0 0 0 0 0 0

Total share options at the end of the year 0 0 0 0 0 0 0 0 0 2 000 6 000 8 000

Vested at exercise price (in EUR) 0 0

Vested at market price (in EUR) 0 0

Latent capital gain at vesting date (in EUR) 0 0

BART CAMBRÉ VESTED NOT VESTED

SOP 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL

Oer not yet vested 0 0 0 0 0 0 0 0 0 0 2 000 2 000

Vested before end of 2024 0 0 0 0 0 0 0 0 0 0 0 0

Exercised in 2024 0 0 0 0 0 0 0 0 0 0 0 0

Expired in 2024 0 0 0 0 0 0 0 0 0 0 0 0

Total share options at the end of the year 0 0 0 0 0 0 0 0 0 0 2 000 2 000

Vested at exercise price (in EUR) 0 0

Vested at market price (in EUR) 0 0

Latent capital gain at vesting date (in EUR) 0 0

Fluctuations in the financial year 2024

311

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

CHARLES DE WULF MEMBER OF THE EXECUTIVE COMMITTEE UNTIL 1 APRIL 2024 VESTED NOT VESTED

SOP 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL

Oer not yet vested 0 0 0 0 0 0 0 0 2 000 2 000 0 4 000

Vested before end of 2024 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 0 0 0 16 000

Exercised in 2024 0 0 0 0 0 0 0 0 0 0 0 0

Expired in 2024 -2 000 0 0 0 0 0 0 0 0 0 0 -2 000

Total share options at the end of the year 0 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 0 18 000

Vested at exercise price (in EUR) 89 180 116 620

Vested at market price (in EUR) 106 000 113 600

Latent capital gain at vesting date (in EUR) 16 820 0

THOMAS HILDENBRAND VESTED NOT VESTED

SOP 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL

Oer not yet vested 0 0 0 0 0 0 0 0 2 000 2 000 2 000 6 000

Vested before end of 2024 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 0 0 0 16 000

Exercised in 2024 -2 000 0 0 0 0 0 0 0 0 0 0 -2 000

Expired in 2024 0 0 0 0 0 0 0 0 0 0 0 0

Total share options at the end of the year 0 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 20 000

Vested at exercise price (in EUR) 89 180 116 620

Vested at market price (in EUR) 106 000 113 600

Latent capital gain at vesting date (in EUR) 16 820 0

ROBBERT KESSELS VESTED NOT VESTED

SOP 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL

Oer not yet vested 0 0 0 0 0 0 0 0 2 000 2 000 2 000 6 000

Vested before end of 2024 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 0 0 0 16 000

Exercised in 2024 -2 000 0 0 0 0 0 0 0 0 0 0 -2 000

Expired in 2024 0 0 0 0 0 0 0 0 0 0 0 0

Total share options at the end of the year 0 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 2 000 20 000

Vested at exercise price (in EUR) 89 180 116 620

Vested at market price (in EUR) 106 000 113 600

Latent capital gain at vesting date (in EUR) 16 820 0

312 The connection to the world of sustainable tropical agriculture

In 2024, three members of the executive committee

together exercised 10 000 options of the 20 000

options from the 2014 share option plan that were

granted to the beneficiaries. From the remaining

10 000 options of that plan, which were granted to

general managers of subsidiaries, 4 000 options

were exercised by the beneficiaries in 2024, and

the remaining 2 700 options were already exercised

before 2024.

A total of 3 300 options from the 2014 option plan

were not exercised before 18 November 2024,

the expiry date. More specifically, 2 000 options

expired in 2024, and 1 300 options had already

lapsed in the years before 2024 on the departure

of general managers of subsidiaries.

Additionally, in 2024, 2 000 options from the 2015

option plan, 2 000 options from 2016 option plan

and 2 000 options from the 2018 option plan were

also exercised by managers of subsidiaries.

6. Deviations from the remuneration policy in 2024

In 2024, remuneration was awarded to the directors

and the members of the executive committee in

compliance with the remuneration policy.

313

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

A YEARLY CHANGE IN REMUNERATION IN PERCENTAGE

2020 2021

VARIANCE

2022

VARIANCE

2023

VARIANCE

2024

VARIANCE

Total board remuneration

(1)

(in KEUR) 359 359 0% 443 23% 443 0% 538 21%

Total fixed remuneration excom

(in KEUR) 1 967 2 424 23% 2 901 20% 3 154 9% 2 632 -17%

Total variable remuneration excom

(in KEUR) 0 272 n/a 1 463 n/a 2 362 61% 1 377 -42%

B YEARLY CHANGE IN THE PERFORMANCE OF THE COMPANY

2020 2021

VARIANCE

2022

VARIANCE

2023

VARIANCE

2024

VARIANCE

CPO market price

(in USD/tonne CIF Rotterdam)

715 1 195 67% 1 345 13% 964 -28% 1 084 12%

Produced CPO volumes (in tonnes) 329 284 384 187 17% 403 927 5% 391 215 -3% 362 404 -7%

Result, share of the Group (recurring)

(in KUSD)

14 122 82 746 486% 108 157 31% 72 735 -33% 71 913 -1%

C YEARLY CHANGE IN THE AVERAGE REMUNERATION OF THE EMPLOYEES

2020 2021

VARIANCE

2022

VARIANCE

2023

VARIANCE

2024

VARIANCE

Average fixed remuneration employees

SIPEF HQ

(4)

(in KEUR/month)

4 832 5 165 7% 4 913 -5% 5 452 11% 5 735 5%

Average variable remuneration employees

SIPEF HQ

(5)

(in KEUR/year)

0 4 955 n/a 23 613 377% 38 213 62% 19 923 -48%

D RATIO HIGHEST/LOWEST REMUNERATION FTE

2020 2021 2022 2023 2024

Ratio total fixed remuneration highest member excom and lowest employee HQ

(6)

9.2 9.1 15.6 15.1 12.2

(1) Remuneration as included under 2 Total remuneration of the directors

(2) Fixed remuneration as included under 3 Total remuneration of the members of the executive committee

(3) Variable remuneration as included under 3 Total remuneration of the members of the executive committee

(4) Average gross salary (full-time equivalent) in January of the respective year

(5) Average variable remuneration (full-time equivalent) paid

(6) Total fixed cost highest individual remuneration of the executive committee/total fixed cost (full-time equivalent) lowest employee remuneration HQ

7. Comparative information on changes to the remuneration

and the performance of the Company over a period of 5 years

– Ratio between highest and lowest remuneration of SIPEF

314 The connection to the world of sustainable tropical agriculture

8. Information on the general meeting votes on

the remuneration policy and report

The current remuneration policy was approved

with a majority of 95.8% of votes by the general

meeting of 9 June 2021. It was applied for the first

time to the 2021 financial year.

The remuneration report for the 2023 financial year

was welcomed by the ordinary general meeting of 12

June 2024. The current remuneration report for the

2024 financial year will be submitted for approval

to the ordinary general meeting on 11 June 2025.

9. Revision of the Remuneration Policy

Under applicable law, the Remuneration Policy

is subject to shareholder approval at least every

four years, The current Remuneration Policy was

approved by the ordinary general meeting of 9 June

2021 and therefore valid until 31 December 2024.

The board of directors – upon the proposal of

the remuneration committee – has reviewed and

revised the Remuneration Policy, which will be

submitted for approval to the ordinary general

meeting on 11 June 2025.

The revised Remuneration Policy builds upon the

old policy framework by reinforcing sustainability,

long-term value creation, and governance trans-

parency. The most notable change is the explicit

introduction of environmental, social and govern-

ance (ESG) based performance criteria. The key

updates to the remuneration policy include:

 The revised Remuneration Policy emphasises

sustainability and long-term value creation,

explicitly linking executive remuneration to

ESG-objectives.

 The variable remuneration for members of the

executive committee (including the managing

director) will be linked for 20% to ESG-based

non-financial KPIs. The inclusion of ESG KPIs

in the non-financial performance metrics is

in compliance with the Companies Code and

the CSRD. It also reinforces SIPEF’s balanced

growth strategy.

 The ESG KPIs will be set annually by the board of

directors upon the proposal of the remuneration

committee. This approach ensures that ESG

objectives remain dynamic, relevant, and aligned

with the Company’s evolving sustainability

strategy, while maintaining oversight and

accountability at the highest governance level.

 80% of the STI remains linked to the financial

objective of SIPEF’s consolidated recurring

result before tax (group share).

The 80% financial – 20% non-financial (ESG)

parameter allocation aims to ensure an appropriate

balance in the performance metrics applicable to

the executive committee’s variable remuneration.

This structure provides sucient weight to ESG

KPIs, reinforcing SIPEF’s commitment to sustain-

able and responsible business practices.

The principle that no variable remuneration will

be paid to members of the executive committee if

the Group incurs a loss in a given year will remain

in place.

Subject to the approval of the ordinary general

meeting on 11 June 2025, the revised Remuneration

Policy will apply as of 1 January 2025 until 31

December 2028.

315

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

4. External and internal audit

1. External audit

The ordinary general meeting of 12 June 2024

renewed the appointment of EY Bedrijfsrevisoren

BV, represented by Christoph Oris, as external audi-

tor of SIPEF for a term of three years. The annual

remuneration for this mandate was set at USD 120

196, excluding indexation and VAT. This follows

their initial appointment for a term of three years

by the ordinary general meeting of 9 June 2021.

In addition, subject to the transposition of the

CSRD into Belgian law – which was completed

by the Law of 2 December 2024, published in the

Belgian legal journal on 20 December 2024 – the

ordinary general meeting of 12 June 2024 also

entrusted the external auditor, with providing

assurance on the consolidated sustainability

information for a term of three years. Pending the

Belgian transposition law, the annual remuneration

for this assignment would be agreed upon between

the Company and the external auditor, and subse

quently submitted for ratification to the ordinary

general meeting of 11 June 2025.

The external auditor conducts the audit of SIPEF’s

individual and consolidated financial statements

and provides assurance on the consolidated sus-

tainability information. He reports to the audit

committee and the board of directors at least twice

a year.

For the 2024 financial year, the remuneration of the

external auditor for the audit of SIPEF’s individual

and consolidated financial statements of SIPEF

amounts to USD 125 000 and the remuneration for

the assurance on the consolidated sustainability

information amounts to USD 140 673. The remu-

neration for non-audit services in 2024 total USD 0.

The total cost of the external control of the financial

statements of the SIPEF group by the EY network

for the 2024 financial year amounts to USD 729089.

The fees paid for advice from the same external

auditor and related companies amounts to USD 0.

Full details of fees paid to EY can be found in Note

33 to the Financial Statements.

2. Internal audit

Internal audit departments have been set up in the

SIPEF group’s operations in Indonesia and Papua

New Guinea. These departments report at least four

times per year to the local audit committees, which

review the internal audit reports and subsequently

submit their findings to SIPEF’s audit committee.

As of 2024, a similar internal audit department has

also been set up in Côte d'Ivoire.

At SIPEF’s head oce in Belgium and its Singapore

subsidiary, internal audits are conducted by a group

controller, who reports annually to SIPEF’s audit

committee.

316

The connection to the world of sustainable tropical agriculture

5. Report in connection with internal

control and risk management systems

The SIPEF board of directors is responsible for

assessing the inherent risks of the Group and the

eectiveness of internal control.

SIPEF’s internal control systems were set up in

accordance with the Belgian legal requirements

for risk management and internal control, the

principles stated in the 2020 Belgian Corporate

Governance Code, the EU Corporate Sustainability

Reporting Directive (CSRD), and are organised

on the basis of the Committee of Sponsoring

Organizations of the Treadway Commission

(COSO) model.

An analysis conducted at Group level forms the

basis of the internal control and risk management

system, an important pillar of which is the reli-

ability of the financial reporting, sustainability

reporting and the communication process.

1. Control environment

The board of directors has set up two internal

committees, the audit committee and the remuner-

ation committee, and collectively functions as the

nomination committee. Moreover, it has delegated

the daily management of the Company to the exec

utive committee. The role and responsibilities of

these bodies are further detailed in the Company’s

articles of association and Charter.

The Group is divided into a number of depart-

ments. Each department has specific functions and

each person in that department has a specific job

description. The required level of education and/

or experience is established for each job and duty.

There is a well-defined policy for delegating powers.

The SIPEF board of directors has also drawn up

the necessary policies, including a Responsible

Plantations Policy (RPP) and a Responsible

Purchase Policy (RPuP), which apply to all

plantation activities and raw materials, as well

as a Grievance Policy and Anti-Corruption and

Anti-Bribery Policy which apply within the entire

Group. It reviews these policies every year to adapt

them to the latest legal, social and environmental

standards.

To facilitate and encourage further growth, in the

day-to-day management of its activities SIPEF

pursues clear sustainable regulations that are

stricter than the legal requirements of the coun-

tries in which the Company does business. That

undertaking is documented by certificates and

generally accepted standards.

The internal control exercised by SIPEF moni-

tors compliance with all prescribed procedures,

guidelines, and rules to protect the assets, sta,

and activities of the Group, and optimise their

management.

Since 2024, SIPEF has also fully established a cohe-

sive sustainability impacts, risk and opportunities

assessment approach and reporting system in com-

pliance with CSRD, involving cross-departmental

collaboration and continuous refinement based

on identified impacts, risks and opportunities.

The Group applies internal and external controls

to minimise errors, improving data quality, and

ensuring compliance with evolving sustainability

regulations. Detailed information on this can be

found in the Sustainability Statement.

317

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

The corporate structure, corporate philosophy,

and management style of the SIPEF group can be

generally described as ‘ﬂat’. This is explained by

the limited number of decision channels in the

hierarchy. This and the low sta turnover increase

the social control in the Company.

Lastly, SIPEF monitors the strict application of the

rules set down in its Corporate Governance Charter

and Code of Conduct to ensure that the directors,

all persons discharging managerial responsibilities

and the sta of the Group act honestly and ethically,

and in accordance with the applicable rules and

principles of good governance.

2. Risk analysis and control activities

Every year, the board of directors approves SIPEF’s

strategic plan, which sets out the Group’s strategic,

operational, financial, sustainability, fiscal and legal

objectives. To ensure the appropriate management

of internal or external risks that could inﬂuence

the achievement of these objectives, each year, the

board identifies and classifies these risks based on

the audit committee’s annual risk assessment. With

the introduction of the CSRD, in and as of 2024, an

integrated impacts, risk and opportunities mate-

riality assessment process has been set up by the

board of directors, whereby the risk review is a part

of a double materiality assessment, going beyond

external risk monitoring. This double materiality

assessment consists of a ‘financial materiality’

review (an outside-in perspective), similar to the

risk review implemented within SIPEF since 2009,

and an ‘impact materiality’ review (an inside-out

perspective). Detailed information on the dou-

ble materiality assessment can be found in the

Sustainability Statement.

Required actions prescribed by the board of direc-

tors are followed up by SIPEF’s management to

ensure the appropriate mitigation, management

and monitoring procedures are being carried out

by the relevant departments in the Group.

Based on the 2024 analysis performed, the follow-

ing tables present the impacts, risks and oppor

tunities assessed to be material for SIPEF’s own

operations and its value chain:

318

The connection to the world of sustainable tropical agriculture

TOPICS MATERIAL IMPACTS MATERIAL RISKS AND OPPORTUNITIES

CLIMATE CHANGE

Climate change mitigation GHG emissions

No material risks or

opportunities identified

Energy Non-renewable energy sources

Climate change adaptation Not applicable from impact materiality

perspective

• Climate physical risks

• Coastal ﬂooding

• River ﬂooding

• Heatwaves

POLLUTION

Pollution of air Black smoke from milling operations

No material risks or

opportunities identified

Pollution of water Fresh water pollution and water source

contamination

WATER AND MARINE RESOURCES

Water consumption Water consumption

No material risks or

opportunities identified

Water withdrawals See specific impact listed under 'Water

consumption’

Water discharges See specific impact listed under 'Water

consumption’

BIODIVERSITY AND ECOSYSTEMS

Land-use change, fresh water-use Land-use change (deforestation) Deforestation for oil palm trees

Land degradation Land degradation

No material risks or

opportunities identified

Species population size Habitat loss from historical land-use

change

Species global extinction risk Impact on keystone species

Own operations

319

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

TOPICS MATERIAL IMPACTS MATERIAL RISKS AND OPPORTUNITIES

OWN WORKFORCE

Secure employment Stability and security of income

(Positive impact)

No material risks or

opportunities identified

Child labour Physical, psychological, and socioeco

nomic impacts of child labour

Forced labour Human rights violations compromising

well-being, safety, freedom and dignity of

workers

Adequate wages Inadequate wages lower ability to meet

basic needs

Freedom of association, the existence

of works councils and the information,

consultation and participation rights of

workers

Limiting empowerment of workers

Collective bargaining, including rate of

workers covered by collective agreements

Improved wages and benefits for workers

(Positive impact)

Working time Mental and physical health impacts from

excessive working hours

Work-life balance Fatigue, stress and lack of quality time

with family

Health and safety Serious medium-term and long-term

health impacts

Training and skills development Inhibition of skills, business and career

development

Diversity Restricted opportunities and inequality

for women employees

Gender equality and equal pay for work of

equal value

See specific impact listed under ‘Diversity’

Measures against violence and harass

ment in the workplace

Increased vulnerability of women to

exploitation and abuse

320 The connection to the world of sustainable tropical agriculture

TOPICS MATERIAL IMPACTS MATERIAL RISKS AND OPPORTUNITIES

OWN WORKFORCE

Security-related impacts Restricted land use due to no deforesta-

tion policy

No material risks or

opportunities identifiedFree, prior, and informed consent Land ownership, conﬂicts and disputes

Adequate Food Supporting food access and aordability

BUSINESS CONDUCT

Corporate culture Impact on ability to provide supportive,

fair and ethical working environment

• Director liability

• Tax evasion issues

• Misreporting

• Lack of liquidity to finance expansion

programme

• Underinsurance of various risks

• Antitrust

• Environmental damage claims

• Reputation and Stakeholder activism

Corruption and bribery

• Prevention and detection including

training

• Incidents

• Employees and other stakeholders

subjected to unlawful situations

• Employees placed in compromising

situations with legal consequences

• Document falsification

• Bribery

• Corruption

• Computer crime and theft

Protection of whistle-blowers Impacts of the absence or poor implemen

tation of a whistleblowing system

No material risks or opportunities

identified

321

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

TOPICS MATERIAL IMPACTS VALUE CHAIN ACTORS MATERIAL RISKS AND OPPORTUNITIES

CLIMATE CHANGE

Climate change

mitigation

GHG emissions Smallholders; Machinery,

equipment and tools

suppliers; Agrochemicals

suppliers; Logistics - Land

transportation; Logistics

– Shipping; Logistics -

Storage facilities

No material risks or

opportunities identified

Climate change

adaptation

• Addressing climate

change through R&D

• Addressing no

deforestation through

R&D

R&D partner / Seedling

Suppliers

POLLUTION

Pollution of water Fresh water pollution

and water source

contamination

Smallholders

No material risks or

opportunities identified

BIODIVERSITY AND ECOSYSTEMS

Land-use change, fresh

water-use

Land-use change

Smallholders; R&D part

ner / Seedling Suppliers

No material risks or

opportunities identified

Land degradation Land degradation

WORKERS IN THE VALUE CHAIN

Secure employment Increased livelihood

security for smallholders

(Positive impact)

Smallholders

No material risks or

opportunities identified

Adequate wages Inadequate income and

unfair value distribution

for smallholders

Smallholders

Working time Mental and physical

health impacts from

excessive working hours

Smallholders

Child labour Physical, psychological,

and socioeconomic

impacts of child labour

Smallholders

Value chain

322 The connection to the world of sustainable tropical agriculture

TOPICS MATERIAL IMPACTS VALUE CHAIN ACTORS MATERIAL RISKS AND OPPORTUNITIES

Health and safety • Health and safety

impacts for oil palm

smallholders

• Health and safety

impacts in land

transportation

• Health and safety

impacts in the shipping

industry

Smallholders; Logistics

- Land transportation;

Logistics – Shipping

No material risks or

opportunities identified

Training and skills

development

Increased requirements

and accessibility of

training, knowledge, tools

Smallholders

Diversity Restricted opportunities

and inequality for women

smallholders

Smallholders

Gender equality and

equal pay for work of

equal value

See specific impact listed

under ‘Diversity’ Smallholders

Measures against

violence and harassment

in the workplace

Increased vulnerability of

women to exploitation and

abuse

Smallholders

Privacy Increasing traceability

and monitoring activities

Smallholders

CONSUMERS AND ENDUSERS

Access to (quality)

information

• Impacts of a lack of

supply chain traceability

• Impacts of a lack of

transparent reporting

Consumers

No material risks or

opportunities identified

Health and safety • Health impacts for palm

oil consumers

• Positive health impact of

nutrients in bananas

• Negative health impacts

of residues

• Product defects

• Product liability

• EU market restrictions on palm oil

• Palm oil restrictions in markets outside

the EU

• Reputation damage

• Contaminant detecting technology

323

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

All of the above topics were first determined as

material from an impact perspective. The financial

material topics were then determined as:

1. Climate change: climate change adaptation

2. Biodiversity and ecosystems: direct impact

drivers of biodiversity loss

3. Consumers and end- users: personal safety of

consumers and/or end users

4. Business conduct: corporate culture

5. Corruption and bribery: incidents

These topics are therefore material from both the

impact and financial points of view.

Detailed descriptions of the specific material

impacts, risks, and opportunities, along with their

relevance in the context of SIPEF, and all informa-

tion required under the ESRS 2 disclosure require-

ment, are provided in the environmental, social

and governance sections of the ‘Sustainability

Statement’.

3. Information and communication

A set of internal and external operational and finan-

cial reports ensures the appropriate information

can be made available at the appropriate levels on

a periodic basis (daily, weekly, monthly, quarterly,

every six months or annually) so that the assigned

responsibilities can be duly taken.

4. Supervision and monitoring

It is the responsibility of every employee to report

potential failings in the internal control to the

appropriate person.

In addition, the internal audit departments at the

operating units in Indonesia and in Papua New

Guinea, are responsible for the constant super

vision of the eectiveness and compliance of the

existing internal control in their respective activ-

ities. They propose the appropriate adjustments

based on their findings. A local audit committee

discusses the internal audit department reports at

least quarterly. A summary of the most recent find-

ings is submitted quarterly to the audit committee

of SIPEF. As of 2024, an internal audit department

has been set up in in Côte d'Ivoire and the activities

there are subject to the same monitoring procedure.

At SIPEF Headquarters, where no separate internal

audit department exists, one of SIPEF's group con-

trollers conducts an internal audit of the Company's

operations and reports annually to the SIPEF

audit committee. The subsidiary in Singapore is

also subject to an annual internal audit by a group

controller of SIPEF.

In addition, the financial statements of every Group

subsidiary are checked by an external auditor at

least every year. Any remarks ensuing from this

external audit are submitted to the board of

directors in the form of a management letter. No

major failures in the internal control have been

established during the year.

324

The connection to the world of sustainable tropical agriculture

5. Internal control and risk management

systems related to financial reporting

The process for drawing up financial reports is led

by the corporate finance department, under the

direct supervision of the CFO and is organised as

follows:

 A schedule is drawn up based on the imposed

(internal and external) deadlines. This is given

to every reporting entity and the external auditor

at the start of the year. The external deadlines

are also published on the Company’s website.

 The first step in the annual reporting cycle is

drawing up a budget for the following year. This

is done in the period September to November,

and is submitted to the board of directors for

approval in November. The strategic options in

this budget also fit in with the long-term plan

strategy that is updated and approved by the

board of directors annually. Sensitivity analyses

for the strategic plan and the annual budget are

drawn up to be able to make the right risk profile

for the decisions to be made.

 The monthly financial reporting comprises

an analysis of the volumes of initial stock,

production, sales and end stock; the operational

result and a summary of the other items on

the income statement, i.e. financial result and

tax, a balance sheet and cash flow analysis.

The accounting policies used for the monthly

reporting are identical to those used for

the legal consolidation under International

Financial Reporting Standards (IFRS). The

monthly figures are compared with the budget

and the same period a year earlier for each

reporting entity, and significant dierences are

investigated. The corporate finance department

consolidates these (summary) operational and

financial figures (in functional currency) on a

monthly basis to the reporting currency (USD),

and checks once again that they are consistent

with the budget or the previous period. The

consolidated monthly reporting is submitted

to the managing director and the executive

committee.

 The board of directors receives this report on

a periodic basis, i.e. 3, 6, 9 and 12 months, in

preparation for the board meeting. This report is

accompanied by a memorandum with a detailed

description of the operational and financial

trends of the preceding quarter.

 In the event of exceptional events, the board of

directors is also notified immediately.

 An external audit verifies the individual financial

statements and the technical consolidation at

the end of June (limited assurance) and the end

of December (full assurance). The audit of the

subsidiaries is done based on the audit scope as

decided by the external auditor and presented

to the audit committee of the SIPEF group. The

consolidated IFRS financial statements are then

submitted to the audit committee for review.

Based on the advice of the audit committee,

the board of directors gives its opinion on the

correctness of the consolidated figures before

publishing the financial statements on the

market.

 An interim management report is published

twice a year, after the first and after the third

quarter, stating the trends in production

volumes, global market prices and any changes

in the pipeline.

 The corporate finance department is responsible

for monitoring any amendments to IFRS

reporting standards and implementing these

amendments in the Group.

The monthly management reports and the legal

consolidation are done in separate consolidation

software with data input from SIPEF’s subsidiaries.

Appropriate care is also given to anti-virus and

security applications, uninterrupted backups and

steps to ensure the continuity of the service.

325

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

6. Rules of conduct concerning

conﬂicts of interest

The Charter describes the policy with regard to

transactions between the Company or one of its

aliated companies and a member of the board

of directors or the executive committee, or an

associated person, that could entail a conﬂict of

interest, within the meaning of the Companies

Code or otherwise. It also states the legal proce-

dures that are laid down in Articles 7:96 and 7:97

of the Companies Code.

In 2024, transactions giving rise to a conﬂict of

interests within the meaning of Article 7:96 of the

Companies Code were reported to the board of

directors of 13 February 2024 and 13 November

2024. The legal procedure provided for by this

article was applied to the related decisions of the

board. The Company’s external auditor was given

the minutes of the meeting in which these board

decisions were made. Excerpts of the minutes relat-

ing to the decisions in question are reproduced in

full below:

   

 13  2024

“The Chairman of the Remuneration Committee,

Antoine Friling, summarises the advice of the

Committee as follows: […]

The individual evaluation of the members of the

Executive Committee was discussed in length.

As this item concerns part of his remuneration,

François Van Hoydonck, managing director, states

that there is a conﬂict of interest on his behalf. Article

7:96 of the Belgian Companies Code is therefore appli-

cable. Petra Meekers, COO APAC, is also concerned

by this decision. Therefore, they both leave temporally

the meeting.

The Directors take notice of the evaluation and the

variable remuneration proposed by the Remuneration

Committee for François Van Hoydonck and Petra

Meekers for the year 2023. They confirm the recom-

mendation of the Remuneration Committee.

François Van Hoydonck and Petra Meekers enter the

meeting room again.”

   

 13  2024

“A. Friling, as chairman of the Remuneration

Committee, summarises the recommendations of the

Remuneration Committee to the Board of Directors

as follows: […]

Prior to the deliberation and decision on the 2024

share option plan, P. Meekers, as Managing Director,

declares that, in accordance with Article 7:96 of the

Companies and Associations Code, she has a direct

personal interest of a financial nature in the proposed

decision, as she is a potential beneficiary of the share

option plan under discussion. In compliance with the

applicable procedure, she leaves the meeting and

refrains from participating in the deliberation and

voting on this item.

The Board acknowledges this declaration and pro-

ceeds with the deliberation and decision on the share

option plan in the absence of P. Meekers.

The Board further instructs the Company Secretary

to include this declaration in the minutes of the

meeting and to ensure the necessary disclosure in

the Company’s annual report, in accordance with

the applicable legal and regulatory requirements.

The Remuneration Committee has conducted a

thorough review of the Company’s share option plan

and in line with established governance principles,

326 The connection to the world of sustainable tropical agriculture

regulatory requirements, and market practices. The

Committee recommends the continued oering of

share options to executive management as a long-

term incentive mechanism, independent of short-term

financial results, aimed at enhancing shareholder

value and ensuring executive retention. The 2024

share option plan shall be structured in line with the

historical oering, ensuring continuity and alignment

with past grants.

The 2024 share option plan shall be oered to the

members of the Executive Committee and the coun-

try directors, with the inclusion of C. De Wulf (as

General Manager of Plantations J. Eglin since 1 April

2024) and the replacement of F. Van Hoydonck by P.

Meekers (as Managing Director of the Company since

1 September 2024). The key terms of the proposed

grant are as follows:

• Option Term: 10 years, with a vesting period of 3

years and an exercise period of 7 years.

• Exercise Price: Determined as the lower of the

average closing price of the share during 30 days

preceding the date of the oer or the last closing

price of the share prior to the date of the offer

(expected to range between EUR 56.5 and EUR

57.5 per share).

• Exercise Period: All year round, except during the

legally defined closed periods.

The Committee recommends maintaining the

following rules governing the treatment of unex-

ercised share options in the event of termination of

employment:

• Death, retirement, or disability: Full rights to the

granted options shall remain, including the full

10-year exercise period.

• Dismissal for urgent cause: Immediate forfeiture

of all unexercised options.

• Standard dismissal: Full retention of all granted

options and exercise rights.

• Voluntary resignation: Vested options may be

exercised for a maximum period of one year

following departure.

The Committee notes that SIPEF currently holds

161 000 own shares, acquired at an average price

of EUR 53.56 per share. To fully cover the 2024

share option plan, the Company will need between

15 000 and 18 000 additional shares, depending on

the exercise of options under the 2014 plan, which

expires on 17 November 2024. The Committee

therefore recommends that management ensures

that the Company buys back the necessary shares

in the market following the expiration of the 2014

plan, ensuring full coverage with no major future

cash outﬂows for the Company.

Following the recommendation of the Remuneration

Committee, the Board of Directors, having thoroughly

reviewed the proposed 2024 share option plan and,

after due deliberation, unanimously approves its

implementation in accordance with the proposed

terms and conditions.

Furthermore, the Board grants full authority to

B. Cambré, Chief Financial Ocer, to execute, on

behalf of the Company, the buyback of 15 000 to 18

000 own shares, ensuring full coverage of the 2024

share option plan, in compliance with all applicable

legal and regulatory requirements.

Following the Board’s deliberation and decision

on this matter, P. Meekers rejoins the meeting and

resumes participation in the discussions on the

remaining agenda items.”

There were no other conﬂicts of interest in 2024.

327

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

7. Policy concerning

financial transactions

The board of directors has drawn up and set down

the rules of conduct that the directors, employees

and self-employed sta of SIPEF must comply with

in financial transactions with Company stock and

its policy to prevent market abuse drafted and

written down in chapter 5 of the Charter.

8. Shareholder structure

SIPEF’s shareholder structure is characterised by

the presence of two reference shareholders, AvH

and Group Bracht, comprising Priscilla, Theodora

and Victoria Bracht and their respective companies

(Cabra P, Cabra T and Cabra V) as well as Cabra NV.

These parties act together in mutual consultation

under a shareholder agreement originally conclud-

ed in 2007 for a 15-year term, which was amended

and renewed for a further 15 years on 3 March 2017.

This shareholder agreement aims to create a stable

shareholding structure for the Company, promoting

the balanced development and profitable growth

of SIPEF and its subsidiaries. Among other provi-

sions, it includes voting arrangements regarding

the appointment of directors and arrangements

regarding share transfers.

Shareholder structure on 31 December 2024

SIPEF’s shareholder structure, as known on 31

December 2024, was as follows:

SHAREHOLDER NUMBER OF SHARES %

Ackermans & van Haaren NV 4 347 709 41.10%

Group Bracht 1 303 032 12.32%

SIPEF (treasury shares)

(1)

162 016 1.53%

Free ﬂoat 4 766 571 45.06%

TOTAL 10 579 328 100.00%

(1) Shares acquired to cover stock option plans and as part of the share buyback programme approved by the board of directors.

328 The connection to the world of sustainable tropical agriculture

9. Events after the balance sheet date

Post balance sheet date, the purchaser sent a ter-

mination letter regarding the sale and purchase

agreement of PT Melania. SIPEF group has contest-

ed the legal validity of this termination letter. After

considering the above, the fair value of the asset

held of sale of PT Melania has been decreased by a

total of KUSD 6 394, which was already recognised

in the results of the 2024 financial year.

Transparency notification

On 26 February 2025, the Company received a

notification from AvH, from which it appeared

that, on 24 February 2025, AvH had crossed the

55% voting rights threshold in SIPEF. This devel-

opment resulted from various acquisitions of SIPEF

shares by AvH between the previous notification of

8 December 2023 and the threshold crossing date.

Following these acquisitions, AvH, together with

Group Bracht, holds 55.02% of the voting rights

in SIPEF, of which 41.24% is directly held by AvH

12.32% is directly held by Group Bracht, and an

additional 1.47% of voting rights is attached to

treasury shares held by the Company.

The relevant details of the this transparency noti-

fication are published on the Company’s website.

 www.sipef.com/hq/investors/shareholders-information/

 shareholders-structure/

    

  

   

   

 5%    .

329

SIPEF Integrated Annual Report 2024 Corporate Governance Statement

Financial

Statements

330 The connection to the world of sustainable tropical agriculture

331

SIPEF Integrated Annual Report 2024

Financial Statements

SIPEF on

the stock market

Stock market listing

The SIPEF shares are listed on the continuous

market of Euronext Brussels (share code: SIP, ISIN

code: BE0003898187).

Stock market data on the SIPEF share

2022

32%

30%

31%

30%

31%

32%

33%

23%

22%

24%

21%

25%

20172005 2006 2007 20092008 2010 2011 2012 2013 2014 2015 2016 2018 2020 2021 2023 2024

0.30

0.40

0.80

1.10

1.50

1.70

1.25

0.60

1.25

1.60

0.55

0.35

2.00

3.00

2.00

2019

15%

20%

25%

30%

35%

10%

0.50

1.00

1.50

2.00

2.50

3.00

3.50

0.00

Gross dividend (in EUR) Pay-out ratio (in%)

EVOLUTION OF THE DIVIDEND AND PAYOUT RATIO

EVOLUTION OF STOCK MARKET DATA OF THE SIPEF SHARE

IN EUR 2024 2023 2022 2021 2020

Highest stock price of the year 58.80 62.30 70.80 60.80 56.70

Lowest stock price of the year 48.40 51.30 52.70 43.85 38.00

Closing stock price per 31/12 56.80 53.00 58.90 56.90 43.20

Market capitalization per 31/12 (KEUR) 600 906 560 704 623 122 601 964 457 027

Number of shares per 31/12 10 579 328 10 579 328 10 579 328 10 579 328 10 579 328

Average number of shares traded per trading day 2 362 2 151 5 441 5 277 5 956

Average turnover per trading day (KEUR) 130 122 338 263 274

332 The connection to the world of sustainable tropical agriculture

 

It is SIPEF's intention to continue with the policy

of paying out a dividend of approximately 30% of

the recurring profit from the previous financial

year and reinvesting the balance in the further

growth of the Company.

  

 

The periodical and occasional information

relating to the Company and to the Group will

be published before opening hours of the stock

exchange.

In accordance with the applicable legal require-

ments, each major event that could aect the

Company’s and the Group’s result is the subject

of a separate press release.

 

The main paying agent is Bank Degroof

Petercam.

 

The website (www.sipef.com) plays an increas-

ingly important role in SIPEF financial com-

munication. Therefore, a substantial part of

the corporate website is reserved for investor

relations.

ANALYSTS COVERING SIPEF

Bank Degroof Petercam Frank Claassen

KBC Securities Michiel Declercq

FINANCIAL CALENDAR

17 April 2025 Quarterly information Q1

11 June 2025 Ordinary general meeting

14 August 2025 Half-yearly financial report

16 October 2025 Quarterly information Q3

February 2026 Annual announcement

333

SIPEF Integrated Annual Report 2024

Financial Statements

Financial

statements

Comments on the consolidated financial statements. . . . . . .335

Consolidated balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .341

Consolidated income statement . . . . . . . . . . . . . . . . . . . . . . . . . . 343

Statement of consolidated comprehensive income . . . . . . . . 344

Consolidated cash ﬂow statement . . . . . . . . . . . . . . . . . . . . . . . . . 345

Statement of changes in consolidated equity . . . . . . . . . . . . . . 346

Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .347

1 - Identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .347

2 - Statement of compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . .347

3 - Accounting policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .347

4 - Use of accounting estimates and judgements . . . . . . . .353

5 - Group companies / consolidation scope . . . . . . . . . . . . 354

6 - Exchange rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .355

7 - Operational result and segment information . . . . . . . .355

8 - Goodwill and other intangible assets . . . . . . . . . . . . . . . 360

9 - Biological assets - bearer plants . . . . . . . . . . . . . . . . . . . . .362

10 - Other property, plant & equipment . . . . . . . . . . . . . . . . .363

11 - Receivables > 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366

12 - Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366

13 - Biological assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366

14 - Other current receivables and other

current payables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .367

15 - Shareholders’ equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .368

16 - Non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . .369

17 - Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .370

18 - Pension liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .370

19 - Net financial assets/(liabilities) . . . . . . . . . . . . . . . . . . . .372

20 - Other operating income/(charges) . . . . . . . . . . . . . . . . .373

21 - Financial result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .374

22 - Share based payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .374

23 - Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .376

24 - Investments in associates and joint ventures. . . . . . .378

25 - Change in net working capital . . . . . . . . . . . . . . . . . . . . . .379

26 - Financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .379

27 - Leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .385

28 - Rights and commitments

not reﬂected in the balance sheet. . . . . . . . . . . . . . . . . . .386

29 - Related party transactions . . . . . . . . . . . . . . . . . . . . . . . . .387

30 - Business combinations,

acquisitions and divestures. . . . . . . . . . . . . . . . . . . . . . . . .387

31 - Earnings per share (basic and diluted) . . . . . . . . . . . . .388

32 - Events after the balance sheet date. . . . . . . . . . . . . . . . .389

33 - Services provided by the auditor

and related fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .389

ESEF information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .389

Statutory auditor's report on the audit of the

consolidated financial statements. . . . . . . . . . . . . . . . . . . . . . . . . 390

Statutory auditor's report on other legal

and regulatory requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .396

Parent company summarised statutory accounts . . . . . . . . . 400

Condensed balance sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .401

Condensed income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402

Appropriation account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402

334 The connection to the world of sustainable tropical agriculture

COMMENTS ON THE CONSOLIDATED

FINANCIAL STATEMENTS

The consolidated financial statements for fiscal

year 2024 have been prepared in accordance with

International Financial Reporting Standards

(IFRS). These consolidated financial statements

(chapter “Financial statements”) are part of the

integrated annual report and should be read togeth-

er with the other chapters of the integrated annual

report, including the non-financial information

included in:

 Chapter 1. “Company report”

 Chapter 2. “Sustainability statement”

 Chapter 3. “Corporate governance statement”

 Annex 1 to 5

335

SIPEF Integrated Annual Report 2024

Financial Statements

IN KUSD 31/12/2024 31/12/2023

Inventories 46 135 47 179

Biological assets 13 547 11 122

Trade receivables 47 353 29 876

Other receivables 32 859 49 490

Current tax receivables 7 547 6 925

Derivatives (assets) 0 780

Other current assets 1 950 1 953

Trade payables -28 512 -25 243

Advances received -3 934 -3 411

Other payables -20 373 -15 832

Income taxes -6 605 -10 605

Derivatives (liabilities) -1 053 0

Other current liabilities -11 226 -16 870

NET CURRENT ASSETS, NET OF CASH 77 688 75 362

Balance sheet

The total assets of the SIPEF group have increased

to KUSD 1 122 372. The Group’s Net Financial

Position (NFP) concluded at KUSD -18 087, an

increase of KUSD 13 331. The increase is due to

the repayment of the long-term loan and lower

capital expenditures of KUSD 86 858 versus KUSD

106 985 in 2023, primarily allocated to the South

Sumatra expansion and mill upgrading programs.

The major movements in the balance sheet over the

course of 2024 should be seen as a consequence

of the positive results and strategy of the Group,

resulting in expanding assets, supported primarily

by an increase in equity.

The increase in ‘biological assets – bearer plants’

and ‘other property plant & equipment’ by KUSD

26897 during 2024 was mainly due to investments

in intangible and tangible fixed assets (KUSD

86858) exceeding depreciation (KUSD 55 846).

The ‘receivables over one year’ increased by KUSD

11 352 mainly due to a reclassification of the loan

to our associate Verdant Bioscience Pte Ltd (KUSD

11688) from short-term to long-term, due to the

granting of loans to smallholders in South Sumatra

to finance their new plantings (KUSD 4 282) and

oset by the reclassification of the expected small-

holders’ repayments in 2025 to the short-term

receivables (KUSD -5 240).

'Net current assets, net of cash' has remained stable

compared to last year. The main posts and changes

can be broken down into the following movements:

 Total inventories have remained stable, however

there are opposing factors. The number of

tonnes of crude palm oil (CPO) stock at the end

of December 2024 was 31.4% lower compared

to December 2023. However, the CPO stock was

valued at a higher cost as a consequence of the

higher world market prices. This has resulted

in a total KUSD 1 044 decrease in stock value

of finished goods compared to the year-end of

2023.

336

The connection to the world of sustainable tropical agriculture

IN KUSD 31/12/2024 31/12/2023

Other investments and deposits 1 1

Cash and cash equivalents 19 880 11 549

Financial liabilities > 1 year 0 0

Leasing liabilities > 1 year -1 448 -1 974

Current portion of amounts payable > 1 year 0 -18 000

Financial liabilities -35 894 -22 319

Leasing liabilities < 1 year -626 -675

NET FINANCIAL POSITION 18 087 31 418

 The methodology used to measure the fair

value of the biological assets did not change

compared to 2023. The total of the biological

assets has increased by KUSD 2 425, mostly

due to an increase in biological assets of palm

oil following higher palm oil prices and higher

productions both in Indonesia and Hargy Oil

Palms Ltd, whose productions are recovering

in the beginning of 2025 compared to last year.

 Trade receivables have increased by KUSD

17477 following higher sales at year-end. Most

of the trade receivables relate to the export sales

from Hargy Oil Palms Ltd. The increase is also

attributable to two shipments in December,

resulting in a higher outstanding amount

recorded in accounts receivable. This contrasts

with the previous year, when the shipment was

postponed to the new year, leading to a lower

receivables position at year-end.

 The other receivables decreased by KUSD

16 631 primarily due to the reclassification

of the abovementioned loan to our associate

Verdant Bioscience Pte Ltd of KUSD 11 688.

The remaining decrease is primarily due to a

decrease in VAT receivable of KUSD 5 853 in

Hargy Oil Palms Ltd, following an offset of

receivable VAT against payable current income

taxes.

 The net tax position (current tax receivable and

income tax payable) is now stabilising, from a

net tax payable of KUSD 3 680 on 31 December

2023 to a net tax receivable of KUSD 942 on 31

December 2024. In 2024, the tax prepayments in

Indonesia are based on the 2023 results, most of

which were slightly lower than the 2024 results

of the Indonesian subsidiaries and also partly on

the exceptional high result of 2022. Taxes paid

during 2024 (KUSD 31 625) were only slightly

higher than the current income tax charge of

the year (KUSD 27 077).

The assets held for sale of KUSD 7 126 concerned

the estimated net sales value of the part of PT

Melania, owned by the Group, until all conditions

for a final sale are met.

Net deferred tax liability has remained stable from

KUSD 37 240 at the end of 2023 to KUSD 36 212

at the end of 2024, and is primarily related to the

accelerated fiscal depreciations in Hargy Oil Palms

Ltd.

The ‘net financial position’ increased by KUSD

13 331 and amounted to KUSD -18 087 at the end

of 2024. The long-term loan has been completely

repaid at the end of 2024.

337

SIPEF Integrated Annual Report 2024

Financial Statements

Result

The Group's total 'revenue’ amounted to KUSD

443810 as per 31 December 2024 and has remained

stable compared to December 2023.

The palm segment's revenue dropped (KUSD 9 110),

mainly as a result of the reduced CPO productions

(-7.4%) offset by an increased CPO/PK(O) unit

selling price in 2024 compared to 2023. The 2024

CPO ex-mill gate unit selling price was USD 816

per tonne for Indonesia (2023: USD 739 per tonne),

USD 964 per tonne for Papua New Guinea (2023:

USD 988 per tonne) and USD 867 per tonne for the

Group (2023: USD 830 per tonne).

Banana segment revenue expressed in euro, the

functional currency, rose by 32.6 % mainly due

to an increase in the average unit selling price

(+5.4%) and a rise in volumes produced and sold

(+24.6%) due to the maturing of the new expansions

in Lumen and Akoudié.

The total 'cost of sales' declined by KUSD 7 770

or 2.6% in 2024 in comparison with last year. The

main reasons for this decrease were:

 Operating costs for the own palm plantations

and mills decreased by KUSD 7 288 or 4.1%.

This was mainly due to lower fertiliser costs

and harvesting costs as a consequence of the

lower production volumes and the devaluation

of the IDR against the USD which is beneficial

for the estate operating costs. These decreases

were oset by the further maturing of the South

Sumatra plantations, resulting in an increase of

total estate operating and processing costs for

the South Sumatra plantations by KUSD 4 121.

Processing costs declined due to the decrease of

inﬂow of crops (-4.5%) compared to prior year.

 Decrease in third-party purchases of FFBs

in Hargy Oil Palms Ltd decreased by KUSD

2868 or 9.3%, largely due to a decrease in FFB

productions (-13.1%) following the volcanic

eruption at the end of 2023, oset by a higher

purchase price of FFB, of which the price is

related to CPO-prices.

 Disposals in the first half of 2024 of the

remaining rubber assets in Agro Muko and

Bandar Sumatra which resulted in an increase of

KUSD 2 213 in the cost of sales compared to last

year. The final disposal of the remaining rubber

assets marks the end of the rubber activities

within the SIPEF group as all these areas will

be converted to oil palm.

 Increase in operating costs in the banana

activities in Plantations J. Eglin SA which

increased by KUSD 5 157 following the

expansions in Lumen and Akoudié.

The 'changes in the fair value of biological assets’

concerned the eects of valuing the hanging fruits

at their fair value (IAS41R).

Gross profit increased from KUSD 149 673 at the

end of 2023 to KUSD 159 606 at the end of 2024,

an increase of 6.6%.

Palm segment’s gross profit increased by KUSD

7142 to KUSD 156 774, mainly due to higher CPO,

PK and CPKO selling prices but oset by the overall

lower productions. The average realised net ex-mill

gate CPO price of USD 867 per tonne was 4.6%

higher than that of USD 830 per tonne last year.

The gross profit of the banana and horticulture

activities rose from KUSD 4 357 to KUSD 5 799,

because of an increase in selling prices (+5.4%)

and a rise in volumes produced resulting from the

expansion of planted areas (+24.6%).

The average ex-mill gate unit cost for mature oil

palm plantations increased slightly (+3.3%) in 2024

compared with 2023, mainly due to decreased pro-

ductions compared to last year, but also due to the

increasing relative productions in South Sumatra,

338 The connection to the world of sustainable tropical agriculture

which is still for the most part in a young phase

with a higher cost of production compared to the

mature areas.

The average ex-mill gate cost for the mature banana

plantations over the same period, expressed in

euro, the functional currency, decreased by 6.7%,

following the increased productions in the new

expansion area which are starting to reach mature

production cycles.

'General and administrative expenses' increased

in comparison with last year, mainly as a result of

the further deployment of the Singapore branch

oce to centralise the internal IT services of the

Group and general inﬂation.

The other operating income/expenses have

decreased from KUSD 4 509 in 2023 to KUSD -7051

in 2024. The operating expenses of this year consist

mostly of the fair value adjustment on the sale of

PT Melania of KUSD -6 394 and the disposal of

biological assets – bearer plants following early

replant in PT UMW of KUSD -1 361. The amount of

KUSD 4 509 of 2023 contained the reversal of the

historical impairment on PT Citra Sawit Mandiri

after the final HGU was obtained (KUSD 2 801).

The ’operating result’ amounts to KUSD 104 105

compared with KUSD 107 978 last year.

‘Financial income’ of KUSD 1 589 includes primar-

ily interests from receivables on smallholders in

South Sumatra for a total of KUSD 1 250.

‘Financial costs’ of KUSD 2 953 were mainly related

to interests on short-term financing (KUSD 2 554)

and the discounting on smallholder receivables

(KUSD 399).

The end of 2024 was marked by volatile exchange

rates whereby the USD strengthened against

most other currencies, especially towards year-

end. The negative 'exchange dierences’ (KUSD

5 277) mainly concerned the eect of the hedged

2024 dividend as well as the hedging of the 2025

expected dividend payable in euro, the eect of

devaluation of the PGK against the USD on the tax

and VAT receivables in Papua New Guinea, and the

exchange impact on the revaluation of smallholders’

receivables and pension provision denominated in

IDR in Indonesia.

The ‘result before tax’ amounts to KUSD 97 464

for 2024, compared with KUSD 108 817 at the end

of 2023.

The eective tax rate amounted to 26.5%. This

is slightly higher than the theoretical tax rate of

25.6%. The ‘tax expense’ (KUSD 25 851) includes

the reversal on the impairment of deferred tax

assets for fiscal losses (KUSD 677), the usual disal-

lowed expenses of about KUSD 773, non-deductible

interest charges due to the thin cap law in Indonesia

(KUSD 358) and finally the non-tax-deductible

fair value adjustment on the sale of PT Melania for

KUSD 1 407. As Hargy Oil Palms Ltd is still recov-

ering from the eects of the volcanic eruption, no

dividend was paid and therefore no withholding

taxes have been recorded.

The 'share of profit and loss of associated compa-

nies and joint ventures' (KUSD -1 366) included

the limited negative contribution of the research

activities centralised at PT Timbang Deli Indonesia

and Verdant Bioscience Pte Ltd.

The ‘result for the period’ 2024 was KUSD 70 247,

a decline by 8.0% against last year.

Net profit, share of the Group, amounted to KUSD

65 838 (USD 6.33 per share) against KUSD 72 735

(USD 6.99 per share) last year.

339

SIPEF Integrated Annual Report 2024

Financial Statements

Cash ﬂow

Despite the decrease in operating result, 'cash ﬂow

from operating activities before change in net work-

ing capital' slightly increased from KUSD 162769

as of 31 December 2023, to KUSD 162 900 on 31

December 2024.

Depreciations at KUSD 55 846 are higher than last

year (KUSD 52 724) due to the increased capex

and the accelerated depreciation of the remaining

rubber assets.

The changes in fair value of biological assets (KUSD

-6 238) includes the changes in the fair value in

accordance with IAS 41 (KUSD 2 425), as well as

the non-cash eect in the valuation of the palm oil

stock at year end (KUSD 3 813).

The variation of the working capital of KUSD 1 768

mainly relates to the decrease in other receivables

and an increase in trade payables and other payables,

offset by an increase in trade receivables and a

decrease in other current liabilities.

Tax prepayments in Indonesia and Papua New

Guinea, under local prevailing rules, are based on

last year’s results. In Indonesia, a small part was

still prepaid on the (very high) results of 2022.

These are the main reasons why the taxes paid

(KUSD -31 625) are still higher than the current

income tax of the year (KUSD 27 077).

The 'acquisitions intangible and tangible assets'

(KUSD -86 858) related to the usual replacement

investments in the existing operations and in

the new developments in South Sumatra (KUSD

-32317). Besides further development of planted

areas and associated infrastructure such as houses

and roads, investments in South Sumatra, in par-

ticular, were also made for the completion of the

Agro Muara Rupit mill with a processing capacity,

in the first phase of 45 tonnes of FFB per hour. This

mill has become operational in June 2024 and has

since then started the production of palm oil. Other

major capex items concern additional trucks in

Hargy Oil Palms Ltd (KUSD 10 008), cost related

to renewal and acquisition of land titles (KUSD

8 196), further expansion in Plantations J. Eglin

SA (KUSD 2903) and the additional oil palm (re)

planting mainly relating to the conversion from

rubber to palm oil in PT Bandar Sumatra and PT

Agro Muko (KUSD 11 037). Additional loans (KUSD

-4 282) were also made during the year to surround-

ing smallholders in South Sumatra and Bengkulu.

The ’proceeds from sales of property, plant and

equipment (KUSD 571) related to the sale of minor

property, plant and equipment. The ‘proceeds from

sales of financial assets' (KUSD -4 179) relate to

the cash paid to fulfil the conditions for the sale of

PT Melania, mostly relating to the payment of the

remaining pension provisions and the necessary

cash to operate the tea plantation.

'Free cash ﬂow' for the year 2024 amounted to

KUSD 38 295, compared with KUSD 5 813 for the

same period last year.

The ‘cash ﬂow from financing activities' (KUSD

-29965) mainly include buy-back and sale transac-

tions on treasury shares (net KUSD 1 055), repay-

ments of long-term financing (KUSD -18 000 for the

final tranche of the long-term loan and KUSD -924

relating to leasing debts), an increase of short-term

financing (net KUSD 13 525), last year dividend

payment to SIPEF shareholders (KUSD -22 434)

and dividend payments to minority shareholders

(KUSD -2 150).

340

The connection to the world of sustainable tropical agriculture

IN KUSD NOTE 2024 2023

Non-current assets 945 975 907 847

Intangible assets 8 119 138

Goodwill 8 104 782 104 782

Biological assets - bearer plants 9 320 851 326 656

Other property, plant & equipment 10 457 720 425 018

Investments in associates and joint ventures 24 331 1 697

Financial assets 112 112

Other financial assets 112 112

Receivables > 1 year 45 581 34 229

Other receivables 11 45 581 34 229

Deferred tax assets 23 16 478 15 214

Current assets 176 396 172 395

Inventories 12 46 135 47 179

Biological assets 13 13 547 11 122

Trade and other receivables 80 212 79 366

Trade receivables 26 47 353 29 876

Other receivables 14 32 859 49 490

Current tax receivables 23 7 547 6 925

Investments 1 1

Other investments and deposits 19 1 1

Derivatives 26 0 780

Cash and cash equivalents 19 19 880 11 549

Other current assets 1 950 1 953

Assets held for sale 30 7 126 13 520

TOTAL ASSETS

1 122 372 1 080 242

CONSOLIDATED BALANCE SHEET

341

SIPEF Integrated Annual Report 2024

Financial Statements

IN KUSD NOTE 2024 2023

Total equity 935 782 888 819

Shareholders' equity 15 898 427 853 777

Issued capital 44 734 44 734

Share premium 107 970 107 970

Treasury shares (-) - 10 633 -11 681

Reserves 767 754 723 733

Translation dierences - 11 396 -10 978

Non-controlling interests 16 37 355 35 042

Non-current liabilities 78 368 78 466

Provisions > 1 year 427 524

Provisions 17 427 524

Deferred tax liabilities 23 52 690 52 454

Leasing liabilities > 1 year 27 1 448 1 974

Pension liabilities 18 23 803 23 515

Current liabilities 108 222 112 957

Trade and other liabilities < 1 year 59 424 55 093

Trade payables 26 28 512 25 243

Advances received 26 3 934 3 411

Other payables 14 20 373 15 832

Income taxes 23 6 605 10 605

Financial liabilities < 1 year 36 519 40 994

Current portion of amounts payable after one year 19 0 18 000

Financial liabilities 19 35 894 22 319

Leasing liabilities < 1 year 27 626 675

Derivatives 26 1 053 0

Other current liabilities 11 226 16 870

TOTAL EQUITY AND LIABILITIES

1 122 372 1 080 242

342 The connection to the world of sustainable tropical agriculture

IN KUSD NOTE 2024 2023

Revenue 7 443 810 443 886

Cost of sales 7 -286 630 -294 400

Changes in fair value of biological assets 7 2 425 186

Gross profit 159 606 149 673

General and administrative expenses 7 -48 450 -46 204

Other operating income/(expenses) 20 -7 051 4 509

Operating result 104 105 107 978

Financial income 1 589 1 809

Financial expenses -2 953 -2 079

Exchange dierences -5 277 1 108

Financial result 21 -6 640 839

Result before tax 97 464 108 817

Tax expense 23 -25 851 -31 128

Result after tax 71 613 77 689

Share of results of associated companies and joint ventures 24 -1 366 -1 335

Result from continuing operations 70 247 76 354

Result from discontinued operations 0 0

Result for the period 70 247 76 354

Attributable to:

- Non-controlling interests 16 4 409 3 619

- Equity holders of the parent 65 838 72 735

CONSOLIDATED INCOME STATEMENT

EARNINGS PER SHARE IN USD NOTE 2024 2023

FROM CONTINUING OPERATIONS

Weighted average shares outstanding 30 10 405 284 10 403 105

Basic operating result per share 30 10.00 10.38

Basic earnings per share 30 6.33 6.99

Diluted earnings per share 30 6.32 6.98

Cash ﬂow from operating activities after tax 30 12.79 11.79

343

SIPEF Integrated Annual Report 2024

Financial Statements

IN KUSD NOTE 2024 2023

Profit for the period 70 247 76 354

Other comprehensive income:

Items that may be reclassified to profit and loss in subsequent periods

- Exchange dierences on translating foreign operations 15 - 418 268

- Cash ﬂow hedges - fair value result for the period 26 - 495 - 855

- Income tax eect (cash ﬂow hedges) 26 124 214

Items that will not be reclassified to profit and loss in subsequent periods

- Defined Benefit Plans - IAS 19 18 1 085 - 512

- Income tax eect - 239 113

Total other comprehensive income for the year 57 - 773

Other comprehensive income attributable to:

- Non-controlling interests 54 - 14

- Equity holders of the parent 3 - 759

Total comprehensive income for the year 70 305 75 581

Total comprehensive income attributable to:

- Non-controlling interests 4 463 3 606

- Equity holders of the parent 65 842 71 975

STATEMENT OF CONSOLIDATED

COMPREHENSIVE INCOME

344 The connection to the world of sustainable tropical agriculture

CONSOLIDATED CASH FLOW STATEMENT

IN KUSD NOTE 2024 2023

OPERATING ACTIVITIES

Profit before tax 97 464 108 817

Adjusted for:

Depreciation 8,9,10 55 846 52 724

Movement in provisions 17 1 990 2 300

Stock options 201 163

Unrealized exchange result 2 032 0

Changes in fair value of biological assets -6 238 - 186

Other non-cash results - 69 -2 963

Hedge reserves and financial derivatives 26 1 338 3

Financial income and expenses 1 364 270

(Gain)/loss on disposal of property, plant and equipment 8,9 2 578 1 641

Change in fair value of asset held for sale 6 394 0

Cash ﬂow from operating activities before change in net working capital 25 162 900 162 768

Change in net working capital 25 1 768 16 080

Cash ﬂow from operating activities after change in net working capital a 164 668 178 848

Income taxes paid b 23 -31 625 -56 216

Cash ﬂow from operating activities c=a+b 133 043 122 632

INVESTING ACTIVITIES

Acquisition intangible assets 8 - 40 - 9

Acquisition biological assets 9 -31 666 -32 556

Acquisition property, plant & equipment 10 -55 152 -74 421

Financing plasma advances 11 -4 282 -7 799

Proceeds from sale of property, plant & equipment 571 889

Proceeds from sale of financial assets 11,29 -4 179 -2 924

Cash ﬂow from investing activities (b) d -94 747 -116 819

Free cash ﬂow (a+b) e= c+d 38 295 5 813

FINANCING ACTIVITIES

Equity transactions with non-controlling parties 0 - 415

Proceeds of treasury shares 22 - 118 - 701

Repayment of treasury shares 22 1 173 608

Repayment in long-term financial borrowings 19 -18 924 -18 528

Proceeds in long-term financial borrowings 19 398 182

Repayment short-term financial borrowings 19 - 50 - 590

Proceeds short-term financial borrowings 19 13 575 17 671

Last year's dividend paid during this book year -22 434 -33 765

Dividends paid by subsidiaries to minorities 16 -2 150 -2 796

Interest received - paid -1 435 - 285

Cash ﬂow from financing activities f -29 965 -38 619

Net increase in investments, cash and cash equivalents g=e+f 19 8 331 -32 806

Investments and cash and cash equivalents (opening balance) 19 11 550 44 356

Eect of exchange rate ﬂuctuations on cash and cash equivalents 19 0 0

Investments and cash and cash equivalents (closing balance) 19 19 880 11 550

Of which: 19

Other investments and deposits 19 1 1

Cash and cash equivalents 19 19 880 11 549

345

SIPEF Integrated Annual Report 2024

Financial Statements

STATEMENT OF CHANGES

IN CONSOLIDATED EQUITY

IN KUSD

ISSUED

CAPITAL

SIPEF

PREMIUM

SIPEF

TREASURY

DEFINED

BENEFIT

PLANS IAS19

CONSOLI

DATED

RESERVES

TRANSLATION

DIFFERENCES

SHARE

HOLDER

EQUITY

NON

CONTROLLING

INTERESTS

TOTAL

EQUITY

JANUARY 1, 2024 44 734 107 970 -11 681 -5 510 729 243 -10 978 853 777 35 042 888 819

Result for the period 65 838 65 838 4 409 70 247

Other comprehensive income 792 - 371 - 418 3 54 57

Total comprehensive income 0 0 0 792 65 467 - 418 65 841 4 464 70 305

Last year's dividend paid -22 434 -22 434 -2 150 -24 584

Other (note 22) 1 048 194 1 242 1 242

DECEMBER 31, 2024 44 734 107 970 -10 633 -4 718 772 471 -11 396 898 427 37 355 935 782

JANUARY 1, 2023 44 734 107 970 -11 588 -5 124 693 057 -11 246 817 803 32 342 850 144

Result for the period 72 735 72 735 3 619 76 354

Other comprehensive income - 386 - 642 268 - 759 - 14 - 773

Total comprehensive income 0 0 0 - 386 72 093 268 71 975 3 606 75 581

Last year's dividend paid -33 765 -33 765 -2 796 -36 560

Equity transactions with

non-controlling parties -2 305 -2 305 1 890 - 415

Other (note 22) - 93 163 70 70

DECEMBER 31, 2023 44 734 107 970 -11 681 -5 510 729 243 -10 978 853 777 35 042 888 819

346 The connection to the world of sustainable tropical agriculture

Notes

1. IDENTIFICATION

SIPEF (the ‘company’) is a limited liability company

(‘naamloze vennootschap’ / ’société anonyme’) incorporated

in Belgium and registered at 2900 Schoten, Calesbergdreef 5.

The consolidated financial statements for the year ended 31

December 2024 comprise SIPEF and its subsidiaries

(together referred to as ‘SIPEF group’ or ‘the Group’).

Comparative figures are for the financial year 2023.

The consolidated financial statements have been established

by the board of directors on 11 February 2025. The events

after the reporting period were updated and approved for

issue by the directors on April 15, 2025. These financial

statements will be presented to the shareholders at the

general meeting of June 11, 2025. A list of the directors and

the statutory auditor, as well as a description of the principal

activities of the Group, are included in the chapters “Corporate

governance statement” and “SIPEF’s operations” of the

integrated report.

2. STATEMENT OF COMPLIANCE

The consolidated financial statements have been prepared in

accordance with the IFRS accounting standards which have

been adopted by the European Union (EU-IFRS) as per 31

December 2024.

The following standards or interpretations are applicable for

the annual period beginning on 1 January 2024:

• Amendment to IAS 1 - non-current liabilities with

covenants and classification of liabilities as current or

non-current (deferred).

• Amendment to IFRS 16 - Leases on sale and leaseback

• Amendment to IAS 7 and IFRS 7 – Disclosure supplier

finance

These changes did not have a significant impact on the equity

or net result of the Group.

The Group did not elect for early application of the following

new standards and interpretations which were issued at the

date of approval of these financial statements but were not yet

effective on the balance sheet date:

• Amendments to IAS 21 - Lack of Exchangeability,

effective January 1, 2025

• Amendment to IFRS 9 and IFRS 7 - Classification and

Measurement of Financial Instruments, effective

January 1, 2026

• Amendments to IFRS 1 - First-time Adoption of

International Financial Reporting Standards, effective

January 1, 2026

• Amendments to IFRS 7 - Financial Instruments:

Disclosures and its accompanying Guidance on

implementing IFRS 7, effective January 1, 2026

• Amendments to IFRS 9 - Financial Instruments,

effective January 1, 2026

• Amendments to IFRS 10 - Consolidated Financial

Statements, effective January 1, 2026

• Amendments to IAS 7 - Statement of Cash Flow,

effective January 1, 2026

• IFRS 18, ‘Presentation and Disclosure in Financial

Statements’, effective January 1, 2027

• IFRS 19, ‘Subsidiaries without Public Accountability:

Disclosures’, effective January 1, 2027

At present, the Group does not expect the initial adoption of

these standards and interpretations to have a material effect

on the Group's financial statements.

3. ACCOUNTING POLICIES

Basis of preparation

Starting in 2007, the consolidated financial statements are

presented in US dollar (until 2006 this was done in euro),

rounded off to the nearest thousand (KUSD). This modification

is the result of the changed policy with regard to the liquidity

and debt management since the end of 2006, whereby the

functional currency of the majority of the subsidiaries has been

changed from the local currency to the US dollar.

The consolidated financial statements are prepared on the

historical cost basis except that the following assets and

liabilities are stated at their fair value: investments in equity

instruments measured at FVOCI, financial derivative

instruments and biological produce.

The accounting policies have been consistently applied

throughout the Group and are consistent with those used in

the previous year.

Consolidation principles

Subsidiaries

Subsidiaries are those enterprises controlled by the company.

An investor controls an investee if and only if the investor has

all of the following elements, in accordance with IFRS 10:

• Power over the investee, i.e. the investor has existing

rights that give it the ability to direct the relevant activities;

• Exposure, or rights, to variable returns from its

involvement with the investee; and

• The ability to use its power over the investee to affect the

amount of the investor’s returns.

The financial statements of subsidiaries are included in the

consolidated financial statements from the date that control

effectively commences until the date that control effectively

ceases (or a date nearby).



347

SIPEF Integrated Annual Report 2024

Financial Statements

Associates

Associates are those enterprises in which the Group has

significant influence, but not control, over the financial and

operating policies. The consolidated financial statements

include the Group's share of the total recognized gains and

losses of associates on an equity accounting basis, from the

date that significant influence effectively commences until the

date that significant influence effectively ceases (or a date

nearby). When the Group’s share of losses exceeds the

carrying amount of the associate, the carrying amount is

reduced to nil and recognition of further losses is discontinued

except to the extent that the Group has incurred obligations in

respect of the associate.

Transactions eliminated on consolidation

All intra-group balances and transactions, and any unrealized

gains arising on intra-group transactions, are eliminated for

companies included using the full consolidation method in

preparing the consolidated financial statements.

Unrealized losses are eliminated in the same way as

unrealized gains except that they are only eliminated to the

extent that there is no evidence of impairment.

Foreign currency

Foreign currency transactions

In the individual Group companies, transactions in foreign

currencies are translated at the exchange rate ruling at the

date of the transaction. Monetary assets and liabilities

denominated in foreign currencies are translated at the

exchange rate ruling at the balance sheet date. Foreign

exchange differences arising on translation are recognized in

the income statement. Non-monetary assets and liabilities

denominated in foreign currencies are translated at the foreign

exchange rate ruling at the date of the transaction.

Financial statements of foreign operations

Functional currency: items included in financial statements of

each entity in the Group are measured using the currency that

best reflects the economic substance of the underlying events

and circumstances relevant to that entity (the functional

currency). Starting from 2007, the consolidated financial

statements are presented in USD, this is the functional

currency of the majority of the Group companies.

To consolidate the Group and each of its subsidiaries, the

financial statements of the individual entities are translated as

follows:

• Assets and liabilities at the closing rate;

• Income statements at the average exchange rate for the

year;

• The components of shareholders’ equity at the historical

exchange rate.

Exchange differences arising on translation for consolidation

are recognised in other comprehensive income under

“Exchange differences on translating foreign operations”.

When a foreign entity is sold, such exchange differences are

recognized in the income statement as part of the gain or loss

on sale.

Goodwill and fair value adjustments arising on the acquisition

of a foreign entity are treated as local currency assets and

liabilities of the foreign entity and are translated at the closing

rate.

Biological assets

The biological asset of palm oil is defined as the oil contained

in the palm fruit, so that the fair value of this distinct asset can

be estimated reliably.

SIPEF group has opted to measure biological assets of rubber

at fair value at the point of harvest in accordance with IAS

41.32 and not to measure it at fair value as it grows less costs

to sell, as it is of the opinion that all parameters used in any

alternative fair value measurement (future productions,

determination of the start of the life cycle, cost allocation,…)

are clearly unreliable. As a consequence, all alternative fair

value measurements are also considered clearly unreliable.

The biological assets of bananas are measured at fair value

as it grows less costs to sell, taking into account that all the

parameters for the fair value calculation are available and

reliable.

A gain or loss arising on initial recognition of a biological asset

at fair value less estimated point of sale costs and from the

change in fair value less estimated point of sale costs of a

biological asset is included in net profit or loss in the period in

which it arises.

At the time of harvest, fresh fruit bunches and bananas are

measured at their fair value less costs to sell and transferred

to inventories.

Goodwill

Goodwill represents the excess of the cost of the business

combination over the Group’s interest in the net fair value of

the identifiable assets, liabilities and contingent liabilities

acquired in a business combination. Goodwill is not amortized

but reviewed for impairment at least annually. For the purpose

of testing goodwill for impairment, goodwill is allocated to

operating companies which is the lowest level at which the

goodwill is monitored for internal management purposes (i.e.

cash flow generating unit). Any impairment is immediately

recognized in the income statement and is not subsequently

reversed.

Negative goodwill represents the excess of the Group’s

interest in the fair value of the net identifiable assets acquired

over the cost of acquisition. Negative goodwill is immediately

recognized in the income statement.

Intangible assets

Intangible assets include computer software and various

licenses. Intangible assets are capitalized and amortized

using the straight-line method over their useful life.

Property, plant and equipment

Property, plant and equipment, including investment property

and bearer plants, are stated at cost less accumulated

depreciation and any accumulated impairment losses.

Borrowing costs attributable to the construction or production

of qualifying assets are capitalized. Expenses for the repair of

property, plant and equipment are usually charged against

income when incurred.

Property held for sale, if any, is stated at the lower of

amortized cost and fair value less selling charges.

In accordance with the amendments to IAS 16 and IAS 41,

bearer plants are stated at cost less accumulated depreciation

348 The connection to the world of sustainable tropical agriculture

and any accumulated impairment losses. All costs relating to

the maintenance of the bearer plants, including fertilisation, is

capitalised as long as the bearer plants are immature.

Depreciation commences when the bearer plants have

become mature and the production of biological assets starts.

Depreciation is calculated using the straight-line method

based on the estimated useful lives of the related assets:

Buildings 5 to 30 years

Infrastructure 5 to 25 years

Installations and machinery 5 to 30 years

Vehicles 3 to 20 years

Office equipment and furniture 5 to 10 years

Other property, plant and equipment 2 to 20 years

Bearer plants 20 to 25 years

Land and ‘construction in progress’ are not amortized.

The Group presents the cost of land rights as a part of

property, plant & equipment, consistently with practices in the

industry and with relevant guidance in that respect. The land

rights have indefinite useful life. In addition, the Group closely

monitors the situation of each land title in terms of renewal and

only depreciates its land rights if there is an indication that the

land title might not be renewed. The renewal costs of land

rights are also recognized as land rights and are amortized

over the term of the renewal. Furthermore, the land rights are

part of the yearly impairment testing.

Leases

Assets, representing the right to use the underlying leased

asset, are capitalized as property, plant and equipment at

cost, comprising the amount of the initial measurement of

lease liability, any lease payments made at or before the

commencement date less any lease incentives received, any

initial direct costs and restoration costs. The corresponding

lease liabilities, representing the net present value of the lease

payments, are recognized as long-term or current liabilities

depending on the period in which they are due. Leased assets

and liabilities are recognized for all leases with a term of more

than 12 months, unless the underlying asset is of low value.

The lease payments are discounted using the lessee’s

incremental borrowing rate, being the rate that the lessee

would have to pay to borrow the funds necessary to obtain an

asset of similar value in a similar economic environment with

similar terms and conditions. The interest rate implicit in the

lease could not be determined. All cash flows relating to the

leases are included in the increase/decrease of the short term

or long-term financial borrowings (financing activities) in the

cash flow statement.

Lease interest is charged to the income statement as an

interest expense.

Leased assets are depreciated, using straight-line

depreciation over the lease term, including the period of

renewable options, in case it is probable that the option will be

exercised.

Lessee accounting

Due to the nature of the Group’s business whereby the

operations are primarily taking place in relatively remote

areas, the Group owns most of the assets used. Therefore,

there is only a limited amount of leases which qualify for lease

accounting. The three main categories consist of:

Office rental

Considering that most of the office rentals are long-term

leases, the main areas management actions are required:

• Determining the lease term;

• Calculating the incremental borrowing rate.

Company cars

Company cars in Belgium meet the definition of a lease and

therefore the same approach as office rentals will be applied.



Papua-New-Guinea land rights

In the Group’s subsidiary Hargy Oil Palms Ltd in Papua-New-

Guinea, a part of the land rights includes a fixed annual rental

payment for the usufruct of the land, as well as a variable

royalty depending on the production levels of the year

measured in tonnes FFB. The annual fixed rental payment

meets the definition of a lease, whereby the lease term of

asset has been determined as the average lifespan of an oil

palm (25 years).

Lessor accounting

The Group has no contracts that could lead to lessor

accounting.

Impairment of assets

Property, plant and equipment (including bearer plants) and

other non-current assets are reviewed for impairment losses

whenever events or changes in circumstances indicate that

the carrying amount may be higher than the recoverable

amount. An impairment loss is recognized for the amount by

which the carrying amount of the asset exceeds its

recoverable amount, which is the higher of an asset’s net

selling price and its value in use. For the purpose of assessing

an impairment, assets are grouped at the lowest levels for

which there are separately identifiable cash flows. If the

impairment is no longer justified in future periods due to a

recovery in assets’ fair value or value in use, the impairment

reserve is reversed.

Financial instruments

Classification and measurement of financial instruments

Financial assets and financial liabilities are recognised when

a Group entity becomes a party to the contractual provisions

of the instrument.

Financial assets and financial liabilities are initially measured

at fair value. Transaction costs that are directly attributable to

the acquisition or issue of financial assets and financial

liabilities (other than financial assets and financial liabilities at

fair value through profit or loss) are added to or deducted from

the fair value of the financial assets or financial liabilities, as

appropriate, on initial recognition. Transaction costs directly

attributable to the acquisition of financial assets or financial

liabilities at fair value through profit or loss are recognised

immediately in profit or loss.

The financial assets include the investments in equity

instruments designated at fair value through other

comprehensive income, loans to related parties, receivables

including trade receivables and other receivables, derivative

financial instruments, financial assets at fair value through

profit or loss, cash and cash equivalents. The acquisitions and

349

SIPEF Integrated Annual Report 2024

Financial Statements

sales of financial assets are recognised at the transaction

date.

Financial assets – debt instruments

All recognised financial assets are subsequently measured in

their entirety at either amortised cost or fair value, depending

on the classification of the financial assets. Debt instruments

that meet the following conditions are subsequently measured

at amortised cost:

• The financial asset is held within a business model whose

objective is to hold financial assets in order to collect

contractual cash flows; and

• The contractual terms of the financial asset give rise on

specified dates to cash flows that are solely payments of

principal and interest on the principal amount

outstanding.

Debt instruments include:

• Receivables measured at amortised cost;

• Trade receivables measured at amortised cost;

• Cash and cash equivalents, and;

• Other investments and deposits.

Financial assets – investments in equity instruments

On initial recognition, the Group made an irrevocable election

(on an instrument-by-instrument basis) to designate

investments in equity instruments as at FVOCI. Investments

in equity instruments at FVOCI are initially measured at fair

value plus transaction costs. Subsequently, they are

measured at fair value with gains and losses arising from

changes in fair value recognised in other comprehensive

income and accumulated in the investment’s revaluation

reserve. The cumulative gain or loss will not be reclassified to

profit or loss on disposal of the equity investments, instead,

they will be transferred to retained earnings.

Amortised cost and effective interest method

The effective interest method is a method of calculating the

amortised cost of a debt instrument and of allocating interest

income over the relevant period.

For financial instruments other than purchased or originated

credit-impaired financial assets, the effective interest rate is

the rate that exactly discounts estimated future cash receipts

(including all fees and points paid or received that form an

integral part of the effective interest rate, transaction costs and

other premiums or discounts) excluding expected credit

losses, through the expected life of the debt instrument, or,

where appropriate, a shorter period, to the gross carrying

amount of the debt instrument on initial recognition.

The amortised cost of a financial asset is the amount at which

the financial asset is measured at initial recognition minus the

principal repayments, plus the cumulative amortization using

the effective interest method of any difference between that

initial amount and the maturity amount, adjusted for any loss

allowance. On the other hand, the gross carrying amount of a

financial asset is the amortised cost of a financial asset before

adjusting for any loss allowance.

Derivatives

The Group uses financial derivative instruments primarily to

manage its exposure to interest rate and foreign currency risks

arising from operational, financing and investment activities.

The Group applies hedge accounting under IFRS 9 –

"Financial Instruments".

Derivative instruments are valued at fair value at initial

recognition. The changes in fair value are reported in the

income statement unless these instruments are part of

hedging transactions, in which event the timing of the

recognition in profit or loss depends on the nature of the hedge

relationship. The Group designates certain derivatives as

hedging instruments in respect interest rate risk in cash flow

hedges. Derivatives related to the foreign currency risk are not

documented in a hedging relationship.

At the inception of the hedge relationship, the Group

documents the relationship between the hedging instrument

and the hedged item along with its risk management

objectives and its strategy for undertaking various hedge

transactions.

Furthermore, at the inception of the hedge and on an ongoing

basis, the Group documents whether the hedging instrument

is effective in offsetting changes in fair values or cash flows of

the hedged item attributable to the hedged risk, which is when

the hedging relationships meet all the following hedge

effectiveness requirements:

• There is an economic relationship between the hedged

item and the hedging instrument;

• The effect of credit risk does not dominate the value

changes that result from that economic relationship; and

• The hedge ratio of the hedging relationship is the same

as that resulting from the quantity of the hedged item that

the Group actually hedges and the quantity of the

hedging instrument that the entity actually uses to hedge

that quantity of hedged item.

If a hedging relationship ceases to meet the hedge

effectiveness requirement relating to the hedge ratio but the

risk management objective for that designated hedging

relationship remains the same, the Group adjusts the hedge

ratio of the hedging relationship (i. e. rebalances the hedge)

so that it meets the qualifying criteria again.

The value fluctuations of a derivative financial instrument that

complies with the strict conditions for recognition as a cash

flow hedge are recorded in other comprehensive income for

the effective part. The ineffective part is recorded directly in

the profit and loss account. The hedging results are recorded

out of other comprehensive income into the profit and loss

account at the moment the hedged transaction influences the

result.

A derivative with a positive fair value is recorded as a financial

asset, while a derivative with a negative fair value is recorded

as a financial liability. A derivate is presented as current or

non-current depending on the expected expiration date of the

financial instrument.

Impairment of financial assets

In relation to the impairment of financial assets an expected

credit loss model is applied. The expected credit loss model

requires the Group to account for expected credit losses and

changes in those expected credit losses at each reporting

date to reflect changes in credit risk since initial recognition of

the financial assets. Specifically, the following assets are

included in the scope for impairment assessment for the

Group:

350 The connection to the world of sustainable tropical agriculture

1) trade receivables;

2) non-current receivables and loans to related parties;

3) cash and cash equivalents.

IFRS 9 requires the Group to record expected credit losses on

all of its debt securities, loans and trade receivables, either on

a 12-month or lifetime basis. The Group has applied the

simplified approach and records lifetime expected losses on

all trade receivables.

IFRS 9 requires the Group to measure the loss allowance for

a financial instrument at an amount equal to the lifetime

expected credit losses if the credit risk on that financial

instrument has increased significantly since initial recognition.

On the other hand, if the credit risk on a financial instrument

has not increased significantly since initial recognition, the

Group is required to measure the loss allowance for that

financial instrument at an amount equal to 12 month expected

credit losses.

For long term receivables, IFRS 9 provides a choice to

measure expected credit losses applying lifetime or a general

(3 stages of expected credit loss assessment) expected credit

losses model. The Group selected the general model. All bank

balances are assessed for expected credit losses as well.

Financial liabilities

All financial liabilities of the Group are subsequently measured

at amortised cost using the effective interest method.

The Group derecognises financial liabilities when, and only

when, the Group’s obligations are discharged, cancelled or

they expire. The difference between the carrying amount of

the financial liability derecognised and the consideration paid

and payable, including any non-cash assets transferred or

liabilities assumed, is recognised in profit or loss.

Receivables and payables

The Group initially measures an amount receivable and

payable at fair value. For the amount receivables, the

transaction price is deemed to be equal to the fair value.

Subsequently, these amount receivables are carried at

amortized cost using the effective interest method less any

allowance for expected credit losses. For amounts payable,

the transaction price is deemed to be equal to the fair value.

Subsequently, these amount payables are carried at

amortized cost using the effective interest method. Amounts

receivable and payable in a currency other than the functional

currency of the subsidiary are translated at the prevailing

Group exchange rates on the balance sheet date.

Cash and cash equivalents

Cash and cash equivalents are measured at their amortised

value and include cash and deposits with an original maturity

of less than three months. Negative cash balances are

recorded as liabilities.



Other investments and deposits

Investments are measured at their amortized value and

include short term deposits with an original maturity of three

months or more or other short-term monetary investments that

are readily convertible into a known amount of cash and with

an insignificant risk of change in value.

Interest-bearing borrowings

Interest-bearing borrowings are measured at amortised cost

price. Borrowings are initially recognized as proceeds

received, net of transaction costs. Any difference between

cost and redemption value is recognized in the income

statement using the effective interest method.

Inventories

Inventories are valued at the lower of cost or net realizable

value.

At the time of harvest, agricultural produces are measured at

fair value less costs to sell and transferred to inventories.

Costs incurred in growing the agricultural produces, including

any applicable harvest costs, are recognised as part of cost of

sales.

Inventories are written down on a case-by-case basis if the

estimated net realizable value declines below the carrying

amount of the inventories. Net realizable value is the

estimated selling price less the estimated costs necessary to

make the sale. When the reason for a write-down of the

inventories has ceased to exist, the write-down is reversed.

Assets held for sale

The Group classifies non-current assets and disposal groups

as held for sale, if their carrying amounts will be recovered

principally through a sale transaction rather than through

continuing use. Non-current assets and disposal groups

classified as assets held for sale are measured at the lower of

their carrying amount and fair value less costs to sell. Costs to

sell are the incremental costs directly attributable to the

disposal of an asset (disposal group-, excluding finance costs

and income tax expenses).

The criteria for held for sale classification is regarded as met

only when the sale is highly probable, and the asset or

disposal group is available for immediate sale in its present

condition. Actions required to complete the sale should

indicate that it is unlikely that significant changes to the sale

will be made or that the decision to sell will be withdrawn.

Management must be committed to the plant to sell the asset

and the sale expected to be completed within one year from

the date of the classification.

PP&E and intangible assets are not depreciated or amortised

once classified as held for sale. Assets and liabilities classified

as held for sale are presented separately as current items in

the statement of financial position.

Discontinued operations are excluded from the results of

continuing operations and are presented as a single amount

as profit or loss after tax from discontinued operations in the

consolidated income statement.

Shareholders’ equity

Dividends of the parent company payable on ordinary shares

are only recognized as a liability in the period in which they

are approved.

Costs incurred with respect to the issuance of equity

instruments are recorded as a deduction in equity.

351

SIPEF Integrated Annual Report 2024

Financial Statements

Non-controlling interest

Non-controlling interests include a proportion of the fair value

of identifiable assets and liabilities recognized upon

acquisition of a subsidiary, together with the appropriate

proportion of subsequent profits and losses.

In the income statement, the minority share in the company’s

profit or loss is separated from the consolidated result of the

Group.

Treasury shares

Own equity instruments that are reacquired (treasury shares)

are recognised at cost and deducted from equity. No gain or

loss is recognised in profit or loss on the purchase, sale, issue

or cancellation of the Group’s own equity instruments. Any

difference between the carrying amount and the

consideration, if reissued, is recognised in the share premium.

Provisions

Provisions are recognized when the Group has a present legal

or constructive obligation as a result of past events, when it is

probable that an outflow of resources will be required to settle

the obligation and when a reliable estimate of the amount can

be made.

Pensions and other post-employment benefits

Group companies have various pension schemes in

accordance with the local conditions and practices in the

countries they operate in.

1. Defined benefit plans

The defined benefit plans are generally un-funded but fully

provisioned for using the ‘projected unit credit’- method. This

provision represents the present value of the defined benefit

obligation. The actuarial gains and losses are recognized in

Other Comprehensive Income.

2. Defined contribution plans

The Group pays contributions to publicly or privately

administered insurance plans. Since the Group is obliged to

make additional payments if the average return on the

employer’s contribution and on the employees’ contributions

is not attained, those plans should be treated as “defined

benefit plans” in accordance with IAS 19.

Share based payment

Stock option plans exist within the SIPEF group, giving

beneficiaries the right to buy SIPEF shares at a predefined

price. This price is determined at the time when the options

are granted and it is based on the market price or the intrinsic

value.

The performance of the beneficiary is measured (at the

moment of granting) on the basis of the fair value of the

granted options and warrants and recognized in profit and loss

when the services are rendered during the vesting period.

Revenue recognition

The SIPEF group’s core activity is the sale of goods. SIPEF

group recognises revenue at the moment the control over the

asset is transferred to the customer. The goods sold are

transported by ship and recognized as revenue as soon as the

goods are loaded onto the ship. Revenue recognition occurs

at the moment when the goods are loaded onto the ship.

Revenue is recorded at this point in time for all contracts within

the SIPEF group. The payment terms depend on the delivery

terms of the contract and can vary between prepayment, cash

against documents and 45 days after handover of the bill of

lading. Deliveries are at a fixed price. For each contract there

is only one performance obligation which needs to be fulfilled:

the delivery of the goods.

The Group has no material incremental costs of obtaining a

contract which would fulfil the capitalization criteria as defined

by IFRS 15.

Cost of sales

Cost of sales includes all costs associated with harvest,

transformation and transport. Purchases are recognized net

of cash discounts and other supplier discounts and

allowances.

General and administrative expenses

General and administrative expenses include expenses of the

marketing and financial department and general management

expenses.

Income taxes

Income tax on the profit or loss for the year comprises current

and deferred tax. Income tax is recognized in the income

statement except to the extent that it relates to items

recognized directly to equity, in which case it is recognized in

equity.

Current tax is the expected tax payable on the taxable income

for the year, using tax rates enacted or substantially enacted

at the balance sheet date, and any adjustment to tax payable

in respect of previous years.

Deferred tax liabilities and assets are recognized for

temporary differences between the carrying amount in the

balance sheet and the tax bases of assets and liabilities and

are subsequently adjusted to reflect changes in tax rates

expected to be in effect when the temporary differences

reverse. Deferred tax assets are included in the consolidated

accounts only to the extent that their realization is probable in

the foreseeable future.



352 The connection to the world of sustainable tropical agriculture

4. USE OF ACCOUNTING ESTIMATES AND

JUDGEMENTS

The preparation of the consolidated financial statements in

conformity with IFRS requires the Group to use accounting

estimates and judgements and make assumptions that may

affect the reported amounts of assets and liabilities at the date

of the balance sheets and reported amounts of revenue and

expense during the reporting periods. Actual results could

differ from those estimates.

Below, we present an overview of the most important

judgements applicable in the annual report.

• Judging that land rights will not be amortized unless there

is an indication that the land title might not be renewed:

The main areas in which estimates are used are:

• Deferred tax assets (note 23);

• Impairment of assets (goodwill impairment – note 8);

• Determination of the estimated costs related to the sale

of PT Melania.

The key estimates used in the calculation of deferred tax

assets and impairment of assets (goodwill impairment) testing

rely on making an estimate on commodity prices over a longer

period. By nature, the commodity prices used in such

estimates are volatile and will therefore in reality be different

from the estimated amounts. There is no unique independent

variable on which a relevant sensitivity can be done on the

calculation of the deferred tax assets. We refer to note 8 for

the goodwill impairment testing.

The determination of the net selling price of PT Melania

includes an estimate of the costs related to the sale as agreed

in the Conditional Sale and purchase agreement (CSPA). The

main estimates made include:

• The timing and the cost of renewing the permanent

concession rights (HGU)

• The compensation for the accumulated social rights of

the employed personnel, who will presumably be taken

over almost entirely by Shamrock Group.

No other accounting judgments have been identified for the

year ended December 31, 2024.



353

SIPEF Integrated Annual Report 2024

Financial Statements

5. GROUP COMPANIES / CONSOLIDATION SCOPE

The ultimate parent of the Group, SIPEF NV, Schoten/Belgium, is the parent company of the following significant subsidiaries:



% of Location % of control interest Consolidated companies (full consolidation) PT Tolan Tiga Indonesia Medan / Indonesia 95.00 95.00 PT Eastern Sumatra Indonesia Medan / Indonesia 95.00 90.25 PT Kerasaan Indonesia Medan / Indonesia 57.00 54.15 PT Bandar Sumatra Indonesia Medan / Indonesia 95.00 90.25 PT Mukomuko Agro Sejahtera Medan / Indonesia 95.00 85.74 PT Umbul Mas Wisesa Medan / Indonesia 95.00 95.00 PT Citra Sawit Mandiri Medan / Indonesia 95.00 95.00 PT Toton Usaha Mandiri Medan / Indonesia 95.00 95.00 PT Agro Rawas Ulu Medan / Indonesia 100.00 100.00 PT Agro Kati Lama Medan / Indonesia 100.00 100.00 PT Agro Muara Rupit Medan / Indonesia 100.00 100.00 Hargy Oil Palms Ltd Bialla / Papua N.G. 100.00 100.00 Plantations J. Eglin SA Azaguié / Côte d'Ivoire 100.00 100.00 Jabelmalux SA Luxembourg / G.D. Luxemburg 100.00 100.00 Sipef Singapore Singapore / Republic of Singapore 100.00 100.00 PT Agro Muko Medan / Indonesia 100.00 95.05 PT Dendymarker Indah Lestari Medan / Indonesia 100.00 95.05 Associates and joint ventures (equity method) Verdant Bioscience Pte Ltd Singapore / Republic of Singapore 38.00 38.00 PT Timbang Deli Indonesia Medan / Indonesia 38.00 36.10 PT Melania Indonesia (asset held for sale) Medan / Indonesia 55.00 52.25 Companies not included Horikiki Development Cy Ltd Honiara / Solomon Islands 90.80 90.80

The Group consists of Sipef NV and a total of 21 investees. Of these 21 investees, 17 are fully consolidated and 2 are accounted for

under the equity method, 1 has been accounted for as an asset held for sale, while 1 other investee does not meet the criteria of

significance.

In accordance with the concept of materiality, companies which are insignificant, have not been included in the consolidation scope.

They are measured at cost and tested for impairment on an annual basis, which is considered a good proxy of their fair value.



SIPEF has signed a conditional sale and purchase agreement (CSPA) with Shamrock Group (SG) on the sale of 100% of the share

capital of its Indonesian subsidiary, PT Melania. In a first phase, 40% was sold so that the SIPEF group now owns only 55% of the

share capital. However, upon signing of the CSPA, SIPEF has lost full control of PT Melania. Subsequently, PT Melania has been

accounted for as an asset held for sale as from 30 April 2021. The assets and liabilities of PT Melania have been measured at fair

value. The original net selling price amounted to KUSD 23 353, however post balance, a termination letter regarding the conditional

sale and purchase agreement was received from the purchaser. This resulted in a decrease of the fair value of the asset held for sale

with KUSD -6 394 bringing the total net selling price to KUSD 16 959. The SIPEF group has contested the legal validity of this

termination letter.

As of 30 April 2021, the results of PT Melania are no longer included in the consolidated profit and loss of the SIPEF group as PT

Melania is classified as an asset held for sale and therefore not included in note 24 ‘Investments in associates and joint ventures’.

There are no restrictions to realise assets and settle liabilities of subsidiaries.



354 The connection to the world of sustainable tropical agriculture

6. EXCHANGE RATES

As a result of a revised liquidity- and debt management as from the end of 2006 the functional currency in the majority of the

subsidiaries has been changed to US dollar as from January 1, 2007. The following subsidiary has a different functional currency:

Plantations J. Eglin SA euro (EUR)

The exchange rates below have been used to convert the balance sheets and the results of these entities into US dollar (this is the

currency in which the Group presents its results).

Closing rate Average rate 2024 2023 2024 2023 EUR 0.9627 0.9060 0.9262 0.9237

7. OPERATIONAL RESULT AND SEGMENT INFORMATION

SIPEF's activities can be classified into segments based on the type of product. SIPEF has the following segments:

• Palm: Includes all palm products, including palm oil (CPO), palm kernels (PK) and palm kernel oil (CPKO), both in Indonesia and

Papua New Guinea.

• Rubber: Includes all different types of rubber produced in Indonesia and sold by the SIPEF group:

- Standard Indonesia Rubber (SIR)

- Scraps and Lumps

• Tea: Includes the cut, tear, curl (CTC) tea produced by PT Melania in Indonesia and which the SIPEF group buys and sells.

• Bananas and horticulture: Includes all sales of bananas and horticulture originating from Côte d’Ivoire.

• Corporate: Mainly includes management fees received from non-group companies, commissions charged on sea freight and other

commissions which are not covered by the sales contract.

Seasonality is applicable to the Group's operating segments. However, opposite trends exist across the different operating segments

and production sites. The banana segment experiences a production peak, with an associated stock build-up, in the period January

to April, aligned with demand in Europe. On the other hand, the palm oil segment has a 45%/55% ratio, with 45 percent of production

realized during the first half of the year and 55 percent during the second half.

Because of seasonality, production volumes may affect the Group's results during the peak season and lead to higher stocks being

held. The above seasonality has an impact on the Group's working capital and net financial position. Both are actively managed and

closely monitored.

The overview of segments below is based on the SIPEF group’s internal management reporting. The executive committee is the chief

operating decision maker. The most important difference with IFRS consolidation is:

• Instead of revenue the gross margin per segment is used as the starting point.

• The fair value adjustment on the assets held for sale (PT Melania) is included in a separate line instead of other operating

income/(expenses)

 

355

SIPEF Integrated Annual Report 2024

Financial Statements

In KUSD 2024 2023 Gross margin per product Palm 156 774 149 632 Rubber -5 006 -5 861 Tea 118 139 Bananas and horticulture 5 799 4 357 Corporate 1 922 1 405 Total gross margin 159 606 149 673 General and administrative expenses -48 450 -46 204 Other operating income/(expenses) - 657 4 509 Financial income/(cost) -1 364 - 270 Exchange differences -5 277 1 108 Result before tax 103 858 108 817 Tax expense -25 851 -31 128 Effective tax rate -24.9% -28.6% Result after tax 78 007 77 689 Share of results of associated companies -1 366 -1 335 Result for the period (recurring) 76 641 76 354 Fair value adjustment on sale PT Melania -6 394 0 Result for the period (non-recurring) 70 247 76 354



Below we present the segment information per product and per geographical region in accordance with the IFRS profit and loss

accounts. The segment result is revenue minus expense that is directly attributable to the segment and the relevant portion of income

and expense that can be allocated on a reasonable basis to the segment.

Gross profit by product

Changes in the 2024 - KUSD Revenue Cost of sales Gross profit % of total fair value Palm 396 270 -242 377 2 881 156 774 98.2 Rubber 129 -5 135 0 -5 006 -3.1 Tea 2 611 -2 493 0 118 0.1 Bananas and horticulture 42 878 -36 624 - 456 5 799 3.6 Corporate 1 922 0 0 1 922 1.2 Total 443 810 -286 629 2 425 159 606 100.0

Changes in the 2023 - KUSD Revenue Cost of sales Gross profit % of total fair value Palm 405 380 -253 962 -1 785 149 632 100.1 Rubber 1 487 -7 348 0 -5 861 -1.9 Tea 3 060 -2 921 0 139 0.1 Bananas and horticulture 32 555 -30 169 1 971 4 357 1.0 Corporate 1 405 0 0 1 405 0.6 Total 443 886 -294 400 186 149 673 100.0

The Group's total 'revenue’ amounted to KUSD 443 810 as per 31 December 2024 and has remained stable compared to 31

December 2023.

The palm segment's revenue dropped (KUSD -9 110), mainly as a result of the reduced CPO productions (-7.4%) offset by an

increased CPO/PK(O) unit selling price in 2024 compared to 2023. The 2024 CPO ex-mill gate unit selling price was USD 816 per

tonne for Indonesia (2023: USD 739 per tonne), USD 964 per tonne for Papua New Guinea (2023: USD 988 per tonne) and USD

867 per tonne for the Group (2023: USD 830 per tonne).

356 The connection to the world of sustainable tropical agriculture

The negative rubber margin of KUSD -5 135 is related to the disposal of the remaining rubber assets in PT Agro Muko and PT

Bandar Sumatra. The final disposal of the remaining rubber assets marks the end of the rubber activities within the SIPEF group as

all these areas will be converted to oil palm.

Banana segment revenue expressed in euro, the functional currency, rose by 32.6 % mainly due to an increase in the average unit

selling price (+5.4%) and a rise in volumes produced and sold (+24.6%) due to the maturing of the new expansions in Lumen and

Akoudié.

The total 'cost of sales' declined by KUSD 7 770 or 2.6% in 2024 in comparison with last year. The main reasons for this decrease

were:

- Operating costs for the own palm plantations and mills decreased by KUSD 7 288 or 4.1%. This was mainly due to lower

fertiliser costs and harvesting costs as a consequence of the lower production volumes and the devaluation of the IDR against

the USD which is beneficial for the estate operating costs. These decreases were offset by the further maturing of the South

Sumatra plantations, resulting in an increase of total estate operating and processing costs for the South Sumatra plantations

by KUSD 4 121. Processing costs declined due to the decrease of inflow of crops (-4.5%) compared to prior year.

- A decrease in third-party purchases of FFBs mainly in Hargy Oil Palms Ltd where FFB purchases decreased by KUSD 2 868

or 9.3%, largely due to a decrease in FFB productions (-13.1%) following the volcanic eruption at the end of 2023, offset by a

higher purchase price of FFB, of which the price is related to CPO-prices.

- An increase in operating costs in the banana activities in Plantations J. Eglin SA which increased by KUSD 5 157 following the

expansions in Lumen and Akoudié.

The 'changes in the fair value of biological assets’ concerned the effects of valuing the hanging fruits at their fair value (IAS41R).

Gross profit increased from KUSD 149 673 at the end of 2023 to KUSD 159 606 at the end of 2024, an increase of 6.6%

Palm segment’s gross profit increased by KUSD 7 142 to KUSD 156 774, mainly due to higher CPO, PK and CPKO selling prices

but offset by the overall lower productions. The average realised net ex-mill gate CPO price of USD 867 per tonne was 4.6% higher

than that of USD 830 per tonne last year.

The gross profit of the banana and horticulture activities rose from KUSD 4 357 to KUSD 5 799, because of an increase in selling

prices (+5.4%) and a rise in volumes produced resulting from the expansion of planted areas (+24.6%).

Gross profit by geographical region



Changes in 2024 - KUSD Revenue Cost of sales Other income Gross profit % of total the fair value Indonesia 242 897 -143 211 715 2 424 102 824 64.4 Papua New Guinea 156 114 -106 794 0 457 49 777 31.2 Côte d'Ivoire 42 878 -36 624 0 - 456 5 799 3.6 Europe 1 207 0 0 0 1 207 0.8 Total 443 096 -286 629 715 2 425 159 606 100.0

Changes in 2023 - KUSD Revenue Cost of sales Other income Gross profit % of total the fair value Indonesia 225 360 -153 088 779 - 728 72 322 48.3 Papua New Guinea 184 567 -111 143 0 -1 056 72 367 48.4 Côte d'Ivoire 32 555 -30 169 0 1 971 4 357 2.9 Europe 626 0 0 0 626 0.4 Total 443 107 -294 400 779 186 149 673 100.0

Total cost of sales can be split up in the following categories:

1. Estate charges – includes all charges relating to the field work to produce the base agricultural products (i.e. fresh fruit bunches,

latex, bananas, horticulture);

2. Processing charges – includes all charges relating to the processing of the base agricultural products to the finished agricultural

commodities (i.e. palm oil, palm kernel oil, …);

3. FFB/CPO purchases – includes all purchases from third parties (smallholders) or associates;

4. Stock movement – includes the variance in stock;

5. Changes in fair value – includes the changes in the fair value of the biological assets of palm oil and bananas;

6. Sales charges – includes all direct costs attributable to the sales of the year (i.e. transport charges, palm oil export tax/levy, ...);

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Financial Statements

7. General and administrative expenses – includes all costs related to the overall organisation (i.e. general management, financial

department, marketing, internal audit, sustainability, etc.).

In KUSD 2024 2023 Estate charges 176 326 178 489 Processing charges 33 595 34 456 FFB/CPO purchases 41 206 42 651 Stock movement finished products -2 225 2 536 Changes in fair value 2 425 186 Sales charges 32 877 35 895 Cost of sales 284 205 294 214 General and administrative expenses 48 450 46 204 Total cost of sales and general and administrative expenses 332 655 340 417

Estate charges have decreased compared to last year due to opposing effects:

• Lower fertilizer costs in 2024;

• Lower harvesting costs in 2024 due to the decrease in FFB production;

• Lower local transporting costs in Hargy Oil Palms Ltd;

• The devaluation of the PGK and IDR against the USD which is beneficial for the unit cost prices;

• Compensated by the additional mature hectares in the Musi Rawas region, whereby estate charges are now increasing annually;

• Compensated by the additional mature hectares in Plantations J. Eglin SA;

• Compensated by a general increase in costs due to inflation.

The processing charges decreased slightly compared to last year due to the lower volumes of processed FFBs in 2024 (-4.5%).

Purchases of FFB/CPO decreased by KUSD 1 445 due to opposing effects:

- A decrease in purchases of FFB from third parties at Hargy Oil Palms Ltd (KUSD -2 868) largely due to the lower crop volumes

from smallholders (-13.1%) which are still recovering from the impact of the volcanic eruption in November 2023;

- An increase in purchase of FFB from third parties in South Sumatra (KUSD 2 300) the areas start to mature (+24.4%).

Stock levels are lower than last year (-31.4%) but valued at higher unit stock values due to overall higher CPO, PK and CPKO

prices.

For more information on the ‘changes in fair value’ we refer to note 13.



Sales charges have decreased due to the lower transportation and freight prices on the world market in 2024 compared to 2023.

Total depreciation amounts to KUSD 55 846. Most of the depreciation was included in the estate and processing charges (KUSD

50 255). In addition, a total of KUSD 4 154 of depreciation charges is recorded in the ‘General and administrative expenses’ and

KUSD 1 436 in ‘other operating income/(expenses)’.

'General and administrative expenses' increased in comparison with last year, mainly as a result of the further deployment of Sipef

Singapore Pte Ltd to centralise the internal IT services of the Group and general inflation.

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358 The connection to the world of sustainable tropical agriculture

Revenue by location of the debtors

In KUSD 2024 2023 Indonesia 226 234 228 348 Switzerland 162 790 152 279 United Kingdom 19 022 14 613 France 14 834 9 646 Belgium 7 529 12 653 Ireland 5 478 2 990 Côte d'Ivoire 4 797 4 875 The Netherlands 734 12 884 Malaysia 673 126 United Arab. Emirates 588 697 China 533 513 Singapore 290 336 Spain 192 2 230 Pakistan 62 393 Afghanistan 45 985 Other 10 101 Germany 0 216 Total 443 810 443 886

The revenue of the Group is realised against a relatively small number of first-class buyers: per product about 90% of the revenue

from contracts with customers is realized with a maximum of 10 clients. For additional information, we refer to note 26 – financial

instruments.

Segment information – geographical information

2024 In KUSD Indonesia PNG Côte d'Ivoire Europe Singapore Total Intangible assets 0 0 0 119 0 119 Goodwill 104 782 0 0 0 0 104 782 Biological assets 244 606 75 769 476 0 0 320 851 Other property, plant & equipment 318 810 125 609 12 274 557 471 457 720 Investments in associates and joint ventures (note 24) -2 173 0 0 0 2 504 331 Other financial assets 46 0 51 15 0 112 Receivables > 1 year 33 893 0 0 11 688 0 45 581 Deferred tax assets 14 068 0 891 1 518 0 16 478 Total non-current assets 714 034 201 377 13 692 13 897 2 975 945 975 % of total 75.48% 21.29% 1.45% 1.47% 0.31% 100.00%

2023 In KUSD Indonesia PNG Côte d'Ivoire Europe Singapore Total Intangible assets 0 0 0 138 0 138 Goodwill 104 782 0 0 0 0 104 782 Biological assets 246 770 79 182 705 0 0 326 656 Other property, plant & equipment 292 988 119 050 11 572 594 813 425 018 Investments in associates and joint ventures (note 24) -1 426 0 0 0 3 123 1 697 Other financial assets 46 0 51 15 0 112 Receivables > 1 year 34 229 0 0 0 0 34 229 Deferred tax assets 12 691 0 910 1 613 0 15 214 Total non-current assets 690 081 198 232 13 238 2 360 3 937 907 847 % of total 76.01% 21.84% 1.46% 0.26% 0.43% 100.00%

The assets of Indonesia and PNG relate 100% to the palm segment in 2024. The assets of Côte d’Ivoire relate 100% to the bananas.

The assets of Singapore relate primarily to Verdant Bioscience Pte Ltd conducting research into and developing high-yielding seeds.

The assets of Europe do not relate specifically to one product segment.

359

SIPEF Integrated Annual Report 2024

Financial Statements

8. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill impairment analysis

Goodwill is the positive difference between the acquisition price of a subsidiary, associated company or joint venture and the share

of the Group in the fair value of the identifiable assets and liabilities of the acquired entity on the acquisition date. Under standard

IFRS 3 – Business Combinations, goodwill is not amortized, but rather tested for impairment.

Goodwill and intangible fixed assets are tested annually by management to see whether they have been exposed to impairment in

accordance with the accounting policies in note 3 (regardless of whether there are indications of impairment).

To be able to assess the necessity of an impairment, the goodwill is allocated to a cash-generating unit (CGU). A cash-generating

unit is the smallest identifiable group that generates cash that is to a large degree independent of the inflow of cash from other assets

or groups of assets. This cash-generating unit is analysed on each balance sheet date to determine whether the carrying value of the

goodwill can be fully recovered. If the realizable value of the cash-generating unit is lower in the long term than the carrying value, an

impairment is recognized on the income statement in the amount of this difference.

In the SIPEF model, the cash-generating unit is compared with the total underlying asset related to the palm oil segment as of 31

December 2024. This consists of the following items:

Assets (in KUSD) 2024 Biological assets – bearer plants 320 375 Other fixed assets 445 446 Goodwill 104 782 Current assets – current liabilities 28 344 Total 898 947

The SIPEF group has defined the “cash-generating unit” as the operational palm oil segment. It consists of all cash flows from the

palm oil activities of all plantations in Indonesia and Papua New Guinea. The cash flows from the sale of rubber, tea and bananas are

not included here, as the goodwill has been allocated exclusively to the whole of the palm oil segment.

The recoverable value of the cash-generating units to which goodwill is allocated was determined by means of a calculation using a

discounted cash flow model. The starting point is the operational plans of the Group, which look a decade ahead (to 2034) and have

been approved by the board of directors. In this model, the macro-economic parameters, such as palm oil price and inflation, are

deemed constant for each year. The constant palm oil price used in the model (USD 842/tonne) is management's best estimate of

the long-term palm oil price expressed as CIF Rotterdam.

2024 2023 Intangible Intangible In KUSD Goodwill Goodwill assets assets Gross carrying amount at January 1 104 782 737 104 782 767 Acquisitions 0 40 0 9 Sales and disposals 0 0 0 - 39 Transfers 0 0 0 0 Translation differences 0 0 0 0 Gross carrying amount at December 31 104 782 776 104 782 737 Accumulated amortization and impairment losses at January 1 0 - 599 0 - 541 Depreciations 0 - 59 0 - 97 Sales and disposals 0 0 0 39 Transfers 0 0 0 0 Remeasurement 0 0 0 0 Accumulated amortization and impairment losses at December 31 0 - 658 0 - 599 Net carrying amount January 1 104 782 138 104 782 226 Net carrying amount December 31 104 782 119 104 782 138

360 The connection to the world of sustainable tropical agriculture

The average palm oil price used in the goodwill impairment amounts to USD 842/tonne, whereas the spot price per 31 December

2024 amounted to USD 1 265/tonne.

In the model, the growth of sales is the same as the normal improvement of the production volumes due to the maturity of the palm

trees of the various subsidiaries. Any improvement in the future EBITDA margins in the model is a normal consequence of the same

improvement in production volumes.

The current model was established with a weighted average cost of capital (after tax) of 10.82% and utilises the local tax rates of

22%-30%, depending on the countries in the which the cash flows are generated. The terminal value in the discounted cash flow

model is based on perpetual growth of 2% in accordance with the Gordon growth model. In the model, we use a sensitivity analysis

for various palm oil prices and various weighted average costs of capital (WACC):

Palm oil price (CIF Rotterdam) Scenario 1 USD 792/tonne CIF Rotterdam Scenario 2 (base case) USD 842/tonne CIF Rotterdam Scenario 3 USD 892/tonne CIF Rotterdam

WACC Scenario 1 9.82% Scenario 2 (base case) 10.82% Scenario 3 11.82%

Summary assumptions of 2024:

PO / WACC 9.82% 10.82% 11.82% USD 792/tonne CIF Rotterdam Scenario 1 Scenario 4 Scenario 7 USD 842/tonne CIF Rotterdam Scenario 2 Scenario 5 (base case) Scenario 8 USD 892/tonne CIF Rotterdam Scenario 3 Scenario 6 Scenario 9

Summary assumptions of 2023:

PO / WACC 9.31% 10.31% 11.31% USD 770/tonne CIF Rotterdam Scenario 1 Scenario 4 Scenario 7 USD 820/tonne CIF Rotterdam Scenario 2 Scenario 5 (base case) Scenario 8 USD 870/tonne CIF Rotterdam Scenario 3 Scenario 6 Scenario 9

The increase of the WACC compared to previous year is primarily due to an increase in the risk-free-rate (10-year US government

bond).

For the sensitivity analysis, the price is increased and decreased by USD 50/tonne. The WACC is increased and decreased with one

percent. A sensitivity matrix is shown below for the total discounted cash flow for various palm oil prices and various weighted average

costs of capital (WACC).

Sensitivity matrix per 31 December 2024 WACC/PO price (in KUSD) 9.82% 10.82% 11.82% USD 792/tonne CIF Rotterdam 858 831 755 832 673 837 USD 842/tonne CIF Rotterdam 1 068 798 941 509 840 154 USD 892/tonne CIF Rotterdam 1 231 889 1 085 762 969 390 Value of underlying assets 898 947 898 947 898 947

The headroom is the difference between the total discounted cash flows and the value of the underlying asset:

Headroom (in KUSD) 9.82% 10.82% 11.82% USD 792/tonne CIF Rotterdam - 40 117 - 143 115 - 225 110 USD 842/tonne CIF Rotterdam 169 851 42 561 - 58 794 USD 892/tonne CIF Rotterdam 332 941 186 815 70 443

Green = base scenario

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SIPEF Integrated Annual Report 2024

Financial Statements

We also calculate the breakeven palm oil price based on the various WACCs.

Breakeven price 9.82% 10.82% 11.82% USD/tonne 801 $/tonne 829 $/tonne 859 $/tonne

Management is of the opinion that the assumptions used in the calculation of the value in use as described above give the bes t

estimates of future development. The sensitivity analysis shows that goodwill is in most of the cases fully recoverable. As a result,

management is of the opinion that there is no indication of any impairment. Future sales prices continue to be difficult to predict over

a long period of time and will be continuously monitored in the future.

9. BIOLOGICAL ASSETS – BEARER PLANTS

Movement schedule biological assets - bearer plants

The balance sheet movements in biological assets – bearer plants can be summarized as follows:

In KUSD 2024 2023 Gross carrying amount at January 1 460 656 439 851 Acquisitions 31 666 32 556 Sales and disposals - 16 606 - 9 897 Transfers - 12 886 - 1 923 Translation differences - 128 70 Gross carrying amount at December 31 462 702 460 656 Accumulated depreciation and impairment losses at January 1 - 134 000 - 123 136 Depreciation - 21 689 - 21 382 Sales and disposals 13 745 10 566 Transfers 0 0 Translation differences 94 - 48 Accumulated depreciation and impairment losses at December 31 - 141 850 - 134 000 Net carrying amount January 1 326 656 316 715 Net carrying amount December 31 320 851 326 656

The disposal of biological assets are mainly related to the disposal of the remaining rubber assets in PT Agro Muko and PT Bandar

Sumatra. The final disposal of the remaining rubber assets marks the end of the rubber activities within the SIPEF group as all these

areas will be converted to oil palm.



362 The connection to the world of sustainable tropical agriculture

10. OTHER PROPERTY, PLANT AND EQUIPMENT

2024 Office Land, Installations equipment, In Land In KUSD buildings and and Vehicles Leasing Total furniture progress rights infrastructure machinery and others Gross carrying amount at January 1 236 759 207 245 83 316 38 396 4 707 16 250 154 689 741 362 Acquisitions 15 984 7 430 13 423 3 432 176 6 177 8 530 55 152 Sales and disposals - 5 687 - 7 819 - 2 781 - 520 0 0 - 249 -17 057 Transfers 8 909 8 133 532 217 0 - 5 973 1 068 12 886 Other 0 0 0 0 0 536 0 536 Translation differences - 1 192 - 284 - 181 - 98 0 - 45 - 19 - 1 818 Gross carrying amount December 31 254 773 214 704 94 309 41 427 4 883 16 946 164 019 791 061 Accumulated depreciation and impairment losses at January 1 - 98 479 - 131 016 - 57 059 - 24 778 - 2 158 0 - 2 855 - 316 345 Depreciation - 11 413 - 11 003 - 7 984 - 2 893 - 630 0 - 173 - 34 098 Sales and disposals 4 924 7 880 2 712 501 0 0 0 16 017 Transfers 151 0 0 0 0 0 -151 0 Other 0 0 0 3 0 0 0 3 Translation differences 705 172 122 68 0 0 14 1 081 Accumulated depreciation and impairment losses at December 31 - 104 113 - 133 968 - 62 209 - 27 099 - 2 789 0 - 3 165 - 333 342 Net carrying amount January 1 138 279 76 229 26 258 13 618 2 549 16 250 151 834 425 018 Net carrying amount December 31 150 661 80 737 32 100 14 328 2 094 16 946 160 854 457 720

The total of the investments in tangible assets (KUSD 55 152) relates to the usual replacement investments in the existing operations

and in the new developments in South Sumatra (KUSD 20 633). In addition, to the further expansion of the planted areas and the

associated infrastructure such as houses and roads, investments are being made of the renewal of the truck fleet in Hargy Oil Palms

Ltd (KUSD 10 090 in 2024). The remaining assets in progress mainly relate to the continued investments in the immature planted

areas, which will be transferred to the bearer plants upon their coming to maturity.

The transfers (KUSD 12 886) are mainly related to the commissioning of the AMR palm oil mill in June 2024 which has been reclassed

from construction in progress to installation and machinery.

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SIPEF Integrated Annual Report 2024

Financial Statements

2023 Office Land, Installations equipment, In Land In KUSD buildings and and Vehicles Leasing Total furniture progress rights infrastructure machinery and others Gross carrying amount at January 1 220 362 199 873 74 240 36 070 4 373 7 735 139 143 681 795 Acquisitions 11 656 13 102 14 785 4 092 334 16 954 13 497 74 421 Sales and disposals - 1 270 - 7 311 - 6 538 - 2 490 0 - 3 002 0 - 20 610 Transfers 5 050 1 417 525 447 0 - 5 509 - 7 1 923 Other 376 19 212 230 0 0 2 047 2 884 Translation differences 585 144 91 48 0 73 8 948 Gross carrying amount December 31 236 759 207 245 83 316 38 396 4 707 16 250 154 689 741 362 Accumulated depreciation and impairment losses at January 1 - 88 987 - 126 587 - 57 384 - 24 479 - 1 588 0 - 2 841 - 301 866 Depreciation - 10 136 - 11 758 - 6 053 - 2 720 - 571 0 - 7 - 31 245 Sales and disposals 1 030 7 432 6 484 2 464 0 0 0 17 411 Transfers 0 0 0 0 0 0 0 0 Other - 19 - 10 - 46 - 7 0 0 0 - 83 Translation differences - 366 - 93 - 60 - 35 0 0 - 7 - 562 Accumulated depreciation and impairment losses at December 31 - 98 479 - 131 016 - 57 059 - 24 778 - 2 158 0 - 2 855 - 316 345 Net carrying amount January 1 131 374 73 287 16 856 11 591 2 785 7 735 136 302 379 930 Net carrying amount December 31 138 280 76 229 26 258 13 618 2 549 16 250 151 834 425 018

The total of the investments in tangible assets (KUSD 74 421) in 2023 relates to the usual replacement investments in the existing

operations and in the new developments in South Sumatra (KUSD 40 114). In addition, to the further expansion of the planted areas

and the associated infrastructure such as houses and roads, investments are being made in South Sumatra in particular in the

construction of the Agro Muara Rupit mill (KUSD 13 630 up to December 2023) with a processing capacity, in the first phase, of 45

tonnes of FFB per hour. The remaining assets in progress mainly relate to the continued investments in the immature areas, which

will be transferred to the bearer plants upon their coming to maturity.



364 The connection to the world of sustainable tropical agriculture

Below is a table with the proprietary rights on which the plantations of the SIPEF group are established: Hectares Type Maturity Crop PT Tolan Tiga Indonesia 6 042 Concession 2023* Oil palm PT Tolan Tiga Indonesia 2 437 Concession 2024* Oil palm PT Eastern Sumatra Indonesia 3 178 Concession 2023* Oil palm PT Kerasaan Indonesia 2 362 Concession 2023* Oil palm PT Bandar Sumatra Indonesia 1 413 Concession 2024* Oil palm PT Toton Usaha Mandiri 1 199 Concession 2046 Oil palm PT Agro Muko 2 256 Concession 2044 Oil palm PT Agro Muko 2 423 Concession 2045 Oil palm PT Agro Muko 315 Concession 2031 Oil palm PT Agro Muko 1 410 Concession 2028 Oil palm PT Agro Muko 2 711 Concession 2028 Oil palm PT Agro Muko 7 437 Concession 2044 Oil palm PT Agro Muko 2 171 Concession 2047 Oil palm PT Agro Muko 1 515 Concession 2022* Oil palm PT Agro Muko 2 100 Concession 2047 Oil Palm PT Agro Muko 232 Concession 2056 Oil palm PT Umbul Mas Wisea 4 397 Concession 2048 Oil palm PT Umbul Mas Wisea 2 071 Concession 2048 Oil palm PT Umbul Mas Wisea 679 Concession 2049 Oil palm PT Umbul Mas Wisea 462 Concession 2049 Oil palm PT Umbul Mas Wisea 155 Concession 2049 Oil palm PT Dendymarker Indah Lestari 13 705 Concession 2028 Oil palm PT Mukomuko Agro Sejahtera 1 705 Concession 2053 Oil palm PT Mukomuko Agro Sejahtera (STGE) 370 Concession 2024* Oil palm PT Mukomuko Agro Sejahtera (BKDE) 1 513 Concession 2057 Oil palm PT Citra Sawit Mandiri 1 640 Concession 2058 Oil palm PT Citra Sawit Mandiri 5 Concession 2059 Oil palm PT Citra Sawit Mandiri 169 Concession 2059 Oil palm PT Timbang Deli Indonesia 972 Concession 2023* Rubber and oil palm Hargy Oil Palms Limited 128 Concession 2075 Oil palm Hargy Oil Palms Limited 2 972 Concession 2076 Oil palm Hargy Oil Palms Limited 16 Concession 2077 Oil palm Hargy Oil Palms Limited 7 Concession 2079 Oil palm Hargy Oil Palms Limited 6 460 Concession 2082 Oil palm Hargy Oil Palms Limited 2 900 Concession 2101 Oil palm Hargy Oil Palms Limited 0 Concession 2102 Oil palm Hargy Oil Palms Limited 332 Concession 2106 Oil palm Hargy Oil Palms Limited 1 Concession 2110 Oil palm Hargy Oil Palms Limited 18 Concession 2113 Oil palm Hargy Oil Palms Limited 246 Concession 2117 Oil palm Plantations J. Eglin SA 1 021 Freehold n/a Bananas Plantations J. Eglin SA 743 Provisional concession n/a Bananas Plantations J. Eglin SA 817 Provisional concession n/a Bananas Total 82 704 PT Agro Rawas Ulu 5 233 In negotiation - Oil palm PT Agro Kati Lama 7 584 In negotiation - Oil palm PT Agro Kati Lama 3 090 In negotiation - Oil palm PT Agro Muara Rupit 4 841 In negotiation - Oil palm PT Agro Muara Rupit 7 574 In negotiation - Oil palm PT Agro Muara Rupit 5 706 In negotiation - Oil palm PT Agro Muara Rupit 983 In negotiation - Oil palm Total 35 011 * All documentation for the renewal of the land rights which matured in 2022, 2023 and 2024 has been delivered in time to the relevant authorities. The authorities are in the process of reviewing and approving. There is no indication that these land rights will not be renewed.

In addition, our subsidiary Hargy Oil Palms Ltd has a total of 7 247 hectares of surveyed area (of which 4 076 hectares planted) on

subleased land, with renewal dates between 2036 and 2044.

365

SIPEF Integrated Annual Report 2024

Financial Statements

11. RECEIVABLES > 1 YEAR

In KUSD 2024 2023 Receivables > 1 year 45 581 34 229

In KUSD 2024 2023 Smallholders receivable 33 893 34 229 Other 11 688 0 Total 45 581 34 229

The ‘receivables over one year’ consists out of loans to smallholders in South Sumatra to finance the development of their new

plantings and the loan to Verdant Bioscience Singapore Ltd.

The smallholder receivables will be gradually repaid from the moment the smallholders become a going concern plantation (i.e.

mature) whereby proceeds of the FFB sales will be partly used to repay the loan.

Smallholder receivables are divided into interest bearing and non-interest bearing. The non-interest-bearing smallholder receivables

are discounted upon recognition. The total discounting cost up to December 31, 2024, amounts to KUSD 2 526 with a cost of KUSD

399 for 2024. The total unwinding of the discount amounts to a gain of KUSD 113 for 2024.

The Group has calculated the expected credit loss in accordance with IFRS 9 and has done an impairment test on the outstanding

smallholders’ receivables which showed no basis for impairment based on the long-term repayment plans.

The repayment of the smallholders’ loans will be determined largely by the plasma fruit production and world palm oil prices over the

next years and is also dependent on the terms and conditions of the plasma scheme. Therefore, it is not possible to predict the exact

timing of repayment. The Group currently has a total short-term plasma receivable of KUSD 5 241 – included in the current other

receivables - and a long-term discounted smallholder receivable of KUSD 33 893.

The long-term loan to our associate Verdant Bioscience Singapore Ltd was reclassified from other short-term receivables to long-

term receivables in 2024. The long-term loan is used to finance the research into and developing high-yielding seeds

12. INVENTORIES

Analysis of inventories:

In KUSD 2024 2023 Raw materials and supplies 27 031 24 681 Finished goods 19 103 22 498 Total 46 135 47 179

The remaining stock of raw materials and supplies has increased with KUSD 2 350 in comparison to prior year. This is mainly related

to timing of fertilizer purchases which was higher per December 2024.

The decrease in finished goods is mainly due to the lower quantity of CPO stock at year-end compared to prior year (27 010 tonnes

in 2023 vs 18 536 tonnes in 2024) but partly offset by an increased CPO price at year-end (1 265 USD/tonne in 2024 compared to

940 USD/tonne in 2023). The combined effect results in a lower overall stock value.

13. BIOLOGICAL ASSETS

The total biological assets at the end of the year are presented below:

In KUSD 2024 2023 Biological assets - palm oil 7 560 4 679 Biological assets - bananas 5 988 6 443 Total 13 547 11 122

The biological asset of palm oil is defined as the oil contained in the palm fruit. When the palm fruit contains oil, then this distinct asset

is recognised and the fair value is estimated based on:

• The estimated quantity of oil that is available in the palm fruit;

• The estimated sales price of palm oil at the time of closing;

• The estimated cost to harvest and process the palm fruit;

• The estimated sales charges (transport, export tax, …).

366 The connection to the world of sustainable tropical agriculture

Different scientific studies have shown that the oil in the palm oil fruit develops exponentially in approximately 4 weeks. The estimated

quantity of oil in the palm oil fruit is therefore determined based on harvest of 4 weeks after the time of closing. In the calculation of

the estimated quantity of available oil, the weighted importance of the harvest decreases step-by-step per week, in order to

approximate the quantity of oil at the time of closing as well as possible. The margin from processing is excluded from the calculation

of biological assets. The fair value of the biological assets calculated at the closing value on the 31st of December 2024 is based on

level 2 data input.

At 31 December 2024, the total biological assets of palm oil amounted to KUSD 7 560 compared to KUSD 4 679 at 31 December

2023.

Impact of the estimated quantity of available oil -10% Carrying amount +10% Carrying value of the biological assets - palm oil 6 804 7 560 8 316 Gross Impact income statement (before tax) - 756 756

The estimated sales price and the estimated costs and charges are the actual sales prices and costs at the time of closing. The results

from the change of the fair value of the palm fruit are included in ‘changes in fair value of biological assets’. The increase compared

to prior year is mainly related to improved projected FFB productions in January 2025 compared to January 2024 which is used as

basis for the valuation of the biological assets.

The biological assets at the end of December also contain the consumable biological assets of bananas of our subsidiary Plantations

J. Eglin SA. The biological assets of bananas are defined as the banana bunches which will be harvested in 3 months, weighted at

their pro-rata for each remaining harvesting month. At 3 months before harvest, a reliable flower count is done, which is used to

determine the estimated biological assets. The net selling price to value the biological assets is determined as the current market

prices reduced by the remaining costs to sell the biological assets. The balance of 2024 amounted to KUSD 5 988 (2023: KUSD 6

443 and has remained stable compared to prior year as the expansion in Akoudié and Lumen are as good as finalized.

Impact of the estimated quantity of available bananas -10% Carrying amount +10% Carrying value of the biological assets - bananas 5 389 5 988 6 586 Gross Impact income statement (before tax) - 599 599

There are no restrictions, pledges or commitments in relation to the biological assets of the Group.

14. OTHER CURRENT RECEIVABLES AND OTHER CURRENT PAYABLES

The ‘other receivables’ have decreased with KUSD 16 631 from KUSD 49 490 in 2023 to KUSD 32 859 in 2024. The other receivables

mainly consist of VAT receivables in the various entities, a current account with PT Melania as it is classified as ‘asset held for sale’

and the smallholder receivables in Hargy Oil Palms Ltd.

The main reasons for the decrease in ‘other receivables’ is the reclassification of the current account with Verdant Bioscience

Singapore PTE Ltd (KUSD -10 054) from short-term to long-term receivables, a GST settlement in Hargy Oil Palms Ltd where the

VAT has been offset with the current income tax payable in 2024 (KUSD - 5 737), some VAT settlements in our Indonesian subsidiaries

(KUSD -107) and an increase in expected repayments from the smallholders (KUSD 2 167) in 2025. The remaining movements

consist of various smaller items in the different subsidiaries mainly related to VAT.

The Group has calculated the expected credit loss in accordance with IFRS 9 and determined it to be immaterial.

The ‘other payables’ (KUSD 20 373 in 2024 and KUSD 15 832 in 2023) mainly concern social obligations (salaries to be paid,

provisions for holiday pay and bonus) and other non-trade related payables. The increase, in comparison to prior year, is primarily

due to the expenses related to the implementation of the new ERP project.

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367

SIPEF Integrated Annual Report 2024

Financial Statements

15. SHAREHOLDERS’ EQUITY

Capital stock and share premium

The issued capital of the company as at December 31, 2024, amounts to KUSD 44 734, represented by 10 579 328 fully paid ordinary

shares without nominal value.

2024 2023 Number of shares 10 579 328 10 579 328

In KUSD 2024 2023 Capital 44 734 44 734 Share premium 107 970 107 970 Total 152 704 152 704

2024 2023 2024 2023 KUSD KUSD KEUR KEUR Treasury shares - opening balance 11 681 11 588 9 641 9 549 Acquisition/sale treasury shares -1 048 93 -958 92 Treasury shares - ending balance 10 633 11 681 8 684 9 641

Since the start of the share buyback program on 22 September 2011, SIPEF has a total of 162 016 own shares for an amount of

KEUR 8 684, corresponding to 1.5314% of the total shares outstanding, as cover for a share option plan for the management. For

additional information see note 22.

Authorised capital

The extraordinary general meeting of shareholders on June 14, 2023, authorised the board of directors to increase the capital in one

or more operations by an amount of KUSD 44 734 over a period of 5 years after the publication of the renewal.

Shareholder structure

The company has received following shareholders declarations:

Acting in concert Number of shares Date*** Denominator % Ackermans & Van Haaren NV* 4 518 213 03/03/2025 10 579 328 42.708 Cabra NV** 1 001 032 03/03/2025 10 579 328 9.462 Cabra P** 100 000 03/03/2025 10 579 328 0.945 Cabra T** 100 000 03/03/2025 10 579 328 0.945 Cabra V** 100 000 03/03/2025 10 579 328 0.945 Theodora Bracht** 2 000 03/03/2025 10 579 328 0.019 Priscilla Bracht** 0 03/03/2025 10 579 328 0.000 Victoria Bracht** 0 03/03/2025 10 579 328 0.000 Total votes acting in concert 5 821 245 55.024 * Including 155 512 own shares ** Group Bracht *** Latest transparency declaration

Translation differences

Translation differences consists of all the differences related to the translation of the financial statements of our subsidiaries for which

the functional currency is different from the presentation currency of the Group (USD). The deviation from last year is due to the

movement of the USD versus the EUR (KUSD 418).

In KUSD 2024 2023 Opening balance at January 1 -10 978 -11 246 Movement, full consolidation -418 268 Ending balance at December 31 -11 396 -10 978

Dividends

On February 11, 2025, a dividend of maximum KEUR 21 159 (EUR 2.00 gross per ordinary share) has been proposed by the board

of directors but has not yet been approved by the annual general meeting of shareholders of SIPEF and is therefore not provided for

in the financial statements as at December 31, 2024.

368 The connection to the world of sustainable tropical agriculture

Capital management

The capital structure of the Group is based on the financial strategy as defined by the board of directors. Summarized, this strategy

consists of an expansion policy while respecting a very limited debt ratio. The management puts forward yearly the plan for approval

by the board of directors.

Chain of control

1. Chain of control above Ackermans & Van Haaren NV

I. Ackermans & Van Haaren NV is directly controlled by Scaldis Invest NV, a company incorporated under Belgian law.

II. Scaldis Invest NV is directly controlled by Belfimas NV, a company incorporated under Belgian law.

III. Belfimas NV is directly controlled by Celfloor SA, a company incorporated under Luxembourg law.

IV. Celfloor SA is directly controlled by Apodia International Holding BV, a company incorporated under Dutch law.

V. Apodia International Holding BV is directly controlled by Palamount SA, a company incorporated under Luxembourg law.

VI. Palamount SA is directly controlled by Stichting administratiekantoor “Het Torentje”, incorporated under Dutch law.

VII. Stichting Administratiekantoor “Het Torentje” is the ultimate controlling shareholder.

2. Chain of control above Cabra NV

Priscilla Bracht, Theodora Bracht and Victoria Bracht exercise joint control over Cabra NV.

3. Chain of control above Cabra P NV, Cabra T NV and Cabra V NV

Cabra P NV, Cabra T NV and Cabra V NV are controlled by, respectively, Priscilla Bracht, Theodora Bracht and Victoria Bracht.

4. Chain of control above SIPEF

Ackermans & van Haaren NV and Group Bracht jointly exercise control over SIPEF.

16. NON-CONTROLLING INTERESTS

The table below presents the non-controlling interests per company, as well as their share of the equity and the profit of the year.

2024 2023 Share of Share of % Non-% Non-Share of the profit Share of the profit In KUSD controlling controlling the equity of the the equity of the interests interests year year PT Tolan Tiga Indonesia 5.00 23 599 620 5.00 22 834 824 PT Eastern Sumatra Indonesia 9.75 8 337 824 9.75 7 507 696 PT Kerasaan Indonesia 45.85 3 960 1 676 45.85 4 553 1 344 PT Bandar Sumatra Indonesia 9.75 842 - 28 9.75 868 - 148 PT Melania Indonesia 2.75 235 0 2.75 235 0 PT Mukomuko Agro Sejahtera 14.26 - 621 - 98 14.26 - 524 - 75 PT Umbul Mas Wisesa 5.00 340 235 5.00 94 158 PT Citra Sawit Mandiri 5.00 1 66 5.00 - 66 112 PT Toton Usaha Mandiri 5.00 346 64 5.00 279 40 PT Agro Rawas Ulu 0.00 0 0 0.00 0 0 PT Agro Kati Lama 0.00 0 0 0.00 0 0 PT Agro Muara Rupit 0.00 - 1 0 0.00 - 1 0 PT Agro Muko 4.95 2 936 937 4.95 1 996 738 PT Dendymarker Indah Lestari 4.95 -2 619 113 4.95 -2 733 - 68 Jabelmalux SA 0.00 - 1 0 0.00 - 1 0 Total 37 355 4 409 35 042 3 619

The non-controlling interest's share of the property, plant and equipment (including biological assets - bearer plants) amounts to

KUSD 24 004 in 2024 (2023: KUSD 23 347). There were no changes in non-controlling interests within the SIPEF Group in 2024.

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Financial Statements

The movements of the year can be summarized as follows:

In KUSD 2024 2023 At the end of the preceding period 35 042 32 342 Profit for the period attributable to non-controlling interests 4 409 3 619 Remeasurement gain/(loss) on Defined Benefit Plans 54 - 14 Distributed dividends -2 151 -2 796 Equity transactions with non-controlling parties 0 1 890 At the end of the period 37 355 35 042

The distributed dividends to non-controlling interests consist of:

In KUSD 2024 2023 PT Kerasaan Indonesia 2 150 2 795 Jabelmalux SA 1 1 Total 2 151 2 796

The dividend from PT Kerasaan and Jabelmalux SA has been declared and paid in 2024.

There are no limitations to the transfer of funds. The non-controlling interests have no rights to use the assets of the Group or to repay

the liabilities of the subsidiaries. The non-controlling interests do not have significant protective rights. There are no restrictions to

realise assets and settle liabilities of subsidiaries.

17. PROVISIONS

In KUSD 2024 2023 Provision 427 524

The provisions are entirely related to VAT disputes in Indonesia. During 2024, there have been a number of court cases which were

settled mainly in SIPEF’s favour. It is difficult to make an estimate of the settlement time of the dispute. The remaining provisions is

estimated based on the ratio of the settled court cases in favour of SIPEF compared to the total court cases remaining.

18. PENSION LIABILITIES

Defined benefit plans

Pension liabilities mainly represent defined benefit plans in Indonesia. These pension plans, set up in order to pay a lump sum amount

at the time of retirement, are not financed with a third party. The total number of employees affected by the pension plan amounts to

10 881. The pension plan is payable to an employee at the age of 55 or after 30 years of seniority, whichever comes first.

Since the pension plan is adjusted by future salary increases and discount rates, the pension plan is exposed to Indonesia's future

salary expectations, as well as Indonesia's inflation and interest rate risk. Furthermore, the pension plan is payable in Indonesian

Rupiah, exposing it to a currency risk. We refer to note 26 for further details concerning the currency risk of the Group. As the pension

plan is unfunded, there is no risk relating to a return on plan assets.

The following reconciliation summarizes the variation of total pension liabilities between 2023 and 2024:

Pension Translation In KUSD 2023 Payment Exchange 2024 cost difference Indonesia 22 471 2 885 -1 344 -1 161 0 22 850 Côte d'Ivoire 1 044 81 - 111 0 - 62 953 Total 23 515 2 966 -1 455 -1 161 - 62 23 803

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370 The connection to the world of sustainable tropical agriculture

The following assumptions are used in the pension calculation of Indonesia:

2024 2023 Discount rate 7.00% 7.00% Future salary increases 5.00% 5.00% 55 years or 30 years of 55 years or 30 years of Assumed retirement age seniority seniority

Pension liabilities in Indonesia have changed as follows:

In KUSD 2024 2023 Opening 22 471 19 801 Service cost 2 307 2 056 Interest cost 1 431 1 445 Benefits paid -1 344 -1 450 Actuarial gains and losses - 853 239 Exchange differences -1 161 379 Closing 22 850 22 471

Actuarial gains and losses consist of the following components:

In KUSD 2024 2023 Experience adjustments - 300 - 752 Changes in assumptions used - 553 991 Total actuarial gains and losses - 853 239

The actuarial gains and losses included in the above table contain the largest part of the total actuarial gains and losses included in

the other comprehensive income.

The amounts relating to the pension cost of Indonesia are as follows:

In KUSD 2024 2023 Service cost 2 307 - 116 Interest cost 1 431 1 366 Pension cost 3 738 1 250 Actuarial gains and losses recorded in Other Comprehensive Income - 853 126 Total pension cost 2 886 1 375

These costs are included under the headings cost of sales and general and administrative expenses of the income statement.

Estimated benefit payments cumulates to KUSD 1 442 in 2025.

Sensitivity of the variation of the discount rate and of the future salary increase

Values as appearing in the balance sheet are sensitive to changes in the actual discount rate compared to the discount rate used.

The same applies to changes in the actual future salary increase compared to the future salary increase used in the calculation. For

our Indonesian entities, simulations were made to calculate the impact of a 1% increase or decrease of both parameters on the

pension provision, resulting in the following effects:

Impact of the change in discount rate

In KUSD +1% Carrying amount -1% Pension liability of the Indonesian subsidiaries 20 870 22 850 25 060 Gross impact on the comprehensive income 1 980 -2 210

Impact of the change in future salary increase

In KUSD +1% Carrying amount -1% Pension liability of the Indonesian subsidiaries 25 184 22 850 24 965 Gross impact on the comprehensive income -2 334 2 115

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SIPEF Integrated Annual Report 2024

Financial Statements

Defined contribution plans

The Group pays contributions to publicly or privately administered insurance plans. Since the Group is obliged to make additional

payments if the average return on the employer’s contribution and on the employees’ contributions is not attained, those plans should

be treated as “defined benefit plans” in accordance with IAS 19.

The liability is based on an analysis of the plans and the limited difference between the legally guaranteed minimum returns and the

interest guaranteed by the insurance company, the Group has concluded that the application of the PUC method would have an

immaterial impact. The total accumulated reserves amount to KUSD 1 537 by the end of December 2024 (2023: KUSD 2 152)

compared to the total minimum guaranteed reserves of KUSD 1 237 at 31 December 2024 (2023: KUSD 1 827).

Contributions paid regarding the defined contribution plans amount to KUSD 442 (2023: KUSD 493). SIPEF is not responsible for the

minimum guaranteed return on the contributions paid for the members of the executive committee (KUSD 367).

19. NET FINANCIAL ASSETS/(LIABILITIES)

Net financial assets/(liabilities) (non-GAAP measure) can be analysed as follows:

In KUSD 2024 2023 Financial liabilities < 1 year - credit institutions -35 894 -22 319 Financial liabilities > 1 year (incl. derivatives) 0 0 Current portion of amounts payable after one year 0 -18 000 Investments and deposits 1 1 Cash and cash equivalents 19 880 11 549 Lease liability -2 073 -2 649 Net financial assets/(liabilities) -18 087 -31 418

Analysis of net financial assets/(liabilities) 2024 per currency:

In KUSD EUR USD Others Total Short-term financial obligations -5 194 -30 700 0 -35 894 Other investments and deposits 0 1 0 1 Cash and cash equivalents 1 972 17 550 358 19 880 Financial liabilities > 1 year 0 0 0 0 Lease liability - 335 0 -1 739 -2 073 Total 2024 -3 557 -13 149 -1 381 -18 087 Total 2023 -4 721 -27 917 1 220 -31 418

The ‘short-term financial obligations’ relate to the commercial papers for a total amount of KUSD 5 194. This financial obligation has

been completely hedged at an average rate of EUR 1 = USD 1.0960. Further, the short-term financial obligations are related to a

straight loan of KUSD 30 700.

There are no ‘financial liabilities > 1 year’ per 31 December 2024 as the last part of the long-term loan was completely repaid in 2024.

There are no loan covenants applicable.

Reconciliation of the ‘net financial assets/(liabilities)’ and cash flow:

In KUSD 2024 2023 Net financial position at the beginning of the period -31 418 122 Repayment in long-term borrowings 18 924 18 528 Proceeds in long-term borrowings - 398 - 182 Repayment in short-term financial obligations 50 590 Proceeds in short-term financial obligations -13 575 -17 671 Net movement in cash and cash equivalents 8 331 -32 806 Net financial assets/(liabilities) at the end of the period -18 087 -31 418

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372 The connection to the world of sustainable tropical agriculture

Reconciliation of the total financial liabilities:

In KUSD 2024 2023 Financial liabilities at the beginning of the period 42 968 44 233 Repayment in long-term borrowings -18 924 -18 528 Proceeds in long-term borrowings 398 182 Repayment in short-term financial obligations - 50 - 590 Proceeds in short-term financial obligations 13 575 17 671 Financial liabilities at the end of the period 37 967 42 968

20. OTHER OPERATING INCOME/(EXPENSES)

The ‘other operating income/(expenses)’ can be detailed as follows:

2024 2023 Equity Non-Equity Non-In KUSD holders of controlling Total holders of controlling Total the parent interests the parent interests VAT claim Indonesia 103 24 127 485 26 510 Fair value adjustment of PT Melania -6 074 - 320 -6 394 0 0 0 Disposal biological assets – replant PT UMW -1 293 - 68 -1 361 0 0 0 Reversal impairment PT Citra Sawit Mandiri 0 0 0 2 661 140 2 801 Impairment UMW biopellet project - 149 - 8 - 157 -1 140 - 60 -1 200 Rental income tank storage capacity 201 10 211 588 31 619 Other income/(expenses) 497 26 523 1 689 89 1 778 Other operating income/(expenses) -6 716 - 335 -7 051 4 284 225 4 509

The other income/ expenses mainly consist out of:

• The movement in the provision for the Indonesian VAT claims (KUSD +127) mainly in favour of SIPEF;

• The fair value adjustment on the sale of PT Melania (KUSD -6 394), we refer to note 30;

• The disposal of the remaining net book value of the biological assets related to the replanting program in PT UMW (KUSD

-1 361);

• The impairment of the remaining net book value of the ‘bio pellet project’ next to the mill of PT UMW (KUSD -157);

• The tank rental income generated by rentals of tank storage capacity (KUSD +221);

• The remaining amount is related to stock adjustments for obsolete stock, warehouse sales to smallholders in Papua New

Guinea and other smaller immaterial items.

In last year, the main items in the other operating income/expenses were related to the reversal on the historical impairment (KUSD

+2 801) in PT Citra Sawit Mandiri as the HGU was obtained and the impairment of the ‘bio pellet project’ next to the mill PT Umbul

Mas Wisesa (KUSD -1 200).

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Financial Statements

21. FINANCIAL RESULT

The financial income concerns the interests received on current accounts with non-consolidated companies and on temporary excess

cash, as well as the income resulting from the unwinding of the discounting of the ‘receivables > 1 year’. The financial expenses

concern the interests on long term and short-term borrowings as well as bank charges, the discounting of the long-term smallholders

receivables and other financial expenses.

In KUSD 2024 2023 Interests received 1 476 1 764 Unwinding of the discounting 113 45 Discounting of receivables > 1 year -399 -402 Financial expenses -2 553 -1 677 Exchange result -3 938 1 112 Financial result derivatives -1 338 -3 Financial result -6 640 839

The increase in financial expenses is mainly related due to the higher interest rates on the short term loans which take a higher

portion in the overall loan composition of the Group as the long term loan, which was hedged against a lower interest rate, has been

repaid. The exchange and financial results of derivates are mainly related due to the forex cover of the EUR dividend and the

devaluation of the EUR, PGK and IDR net outstanding receivable positions against the USD dollar compared to prior year.

22. SHARE BASED PAYMENT

Number of Number of Number of options Grant date Opening balance Ending Balance options granted options exercised expired 2014 16 000 -14 000 -2 000 0 2015 18 000 -2 000 16 000 2016 18 000 -2 000 16 000 2017 18 000 18 000 2018 20 000 -2 000 18 000 2019 18 000 18 000 2020 18 000 18 000 2021 16 000 16 000 2022 18 000 18 000 2023 20 000 20 000 2024 0 18 000 18 000 Balance 180 000 18 000 -20 000 -2 000 176 000

2024 2023 Weighted Weighted Number of average Number of average share options exercise price share options exercise price (in EUR) (in EUR) January 1 180 000 52.9 184 000 53.2 Granted during the year 18 000 56.9 20 000 52.7 Forfeitures of rights and expiries during the year -2 000 54.7 -13 558 54.8 Exercised during the year -20 000 53.7 -10 442 55.3 December 31 176 000 53.2 180 000 52.9 Exercisable at December 31 120 000 126 000

Options outstanding Options Exercisable Weighted Weighted Weighted Number of average average Number average Range of exercise prices (EUR) outstanding remaining contractual exercisable exercise life (years) price price 44.59 – 45.61 36 000 5.5 45.1 36 000 45.1 49.15 – 53.09 70 000 4.2 51.7 50 000 51.3 56.88 – 57.70 36 000 8.9 57.3 0 N/A 58.31 – 62.87 34 000 4.9 60.7 34 000 60.7 176 000 120 000

374 The connection to the world of sustainable tropical agriculture

SIPEF's stock option plan, which was approved in November 2011, is intended to provide long term motivation for the members of

the executive committee and general directors of the foreign subsidiaries whose activities are essential to the success of the Group.

The options give them the right to acquire a corresponding number of SIPEF shares.

The remuneration committee is responsible for monitoring this plan and selecting the beneficiaries. The options are provided free of

charge and their exercise period is 10 years.

IFRS 2 has been applied to the stock options. The total value of the outstanding options 2015 - 2024 (valued at the fair value at the

moment of granting), amounts to KUSD 1 505 and is calculated based on an adjusted Black & Scholes model of which the main

characteristics are as follows:

Share Estimated Black & Dividend Interest Grant date price (in Volatility expected Scholes Value yield rate EUR) lifetime (in EUR) 2011 58.00 2.50% 38.29 3.59% 5.00 18.37 2012 58.50 2.50% 37.55 0.90% 5.00 15.07 2013 57.70 2.50% 29.69 1.36% 5.00 12.72 2014 47.68 2.50% 24.83 0.15% 5.00 5.34 2015 52.77 2.50% 22.29 0.07% 5.00 8.03 2016 60.49 3.00% 19.40 -0.37% 5.00 8.38 2017 62.80 3.00% 18.88 -0.12% 5.00 5.57 2018 48.80 3.00% 18.60 -0.03% 5.00 3.54 2019 54.80 3.00% 19.56 -0.32% 5.00 8.12 2020 43.20 3.00% 23.35 -0.66% 5.00 4.57 2021 56.90 3.00% 24.14 -0.33% 5.00 6.74 2022 58.90 3.00% 25.86 2.82% 5.00 11.73 2023 53.00 3.00% 25.97 2.25% 5.00 9.78 2024 56.80 3.00% 24.95 2.47% 5.00 10.15

In 2024, 18 000 new stock options were granted with an exercise price of EUR 56.9 per share. The fair value when granted was fixed

at KUSD 190 and will be recorded in the profit and loss accounts over the vesting period of 3 years (2025-2027). The total cost of the

stock options included in the income statement is KUSD 201 in 2024 (2023: KUSD 163). To cover the outstanding option liability,

SIPEF has a total of 162 016 treasury shares in portfolio. The share buyback program will continue in 2025 until the number of treasury

shares covers the number of outstanding options.

Average Number of Total purchase Total purchase purchase price shares price (in KEUR) price (in KUSD) (in EUR) Opening balance 31/12/2023 180 000 53.6 9 641 11 681 Acquisition of treasury shares 2 016 56.4 114 118 Disposal of treasury shares -20 000 53.6 -1 072 -1 166 Ending balance 31/12/2024 162 016 53.6 8 683 10 633

The extraordinary general meeting of shareholders on June 14, 2023, authorised the board of directors to purchase own shares of

SIPEF if deemed necessary over a period of 5 years after the publication of the renewal.

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SIPEF Integrated Annual Report 2024

Financial Statements

23. INCOME TAXES

The reconciliation between the tax expenses and tax at local applicable tax rates is as follows:

In KUSD 2024 2023 Profit before tax 97 464 108 817 Tax at the applicable local rates -23 990 -28 251 Average applicable tax rate -24.61% -25.96% Non-taxable result reversal historical impairment CSM 0 616 Permanent differences -1 131 - 935 Losses of the year for which no DTA is recognised - 81 0 Profits of the year for which no DTA is recognised 0 571 Impairment losses recognised on DTA recognised in previous years -1 157 -3 566 Reversal of impairment losses on DTA recognised in previous years 1 914 437 Fair value adjustment sale PT Melania -1 407 0 Tax expense -25 851 -31 128 Average effective tax rate -26.52% -28.61%

The non-taxable result in PT Citra Sawit Mandiri in prior year relates to the reversal of the historical impairment recorded in PT Citra

Sawit Mandiri. The permanent differences consist mainly of disallowed expenses for tax purposes and are slightly higher than last

year due to higher permanently rejected expenses. The fair value adjustment on the asset held for sale of PT Melania (KUSD -6 394)

is a non-deductible tax expense and amounts to KUSD 1 407.

We received from the Indonesian tax authorities the formal approval, which starting from financial year 2014 our Indonesian affiliates

are allowed to lodge their tax declaration in USD. From the tax authorities in Papua New Guinea the SIPEF group got permission to

prepare the tax declaration based on USD accounts from 2015 onwards. For SIPEF NV and Jabelmalux SA a similar authorisation

has been obtained with effect from the financial year 2016.

Deferred tax liabilities and assets are offset per taxable entity which leads to the following split between deferred tax assets and

deferred tax liabilities:

In KUSD 2024 2023 Deferred tax assets 16 478 15 214 Deferred tax liabilities -52 690 -52 454 Net deferred taxes -36 212 -37 240

The movements in net deferred taxes (assets - liabilities) are:

In KUSD 2024 2023 Opening balance -37 240 -34 034 Variation (- expense) / (+ income) through income statement 1 228 2 043 Tax impact of IAS 19 through comprehensive income - 268 124 Tax impact hedge accounting via OCI 124 214 Impact accelerated fiscal depreciations HOPL 0 -5 614 Other - 56 27 Closing balance -36 212 -37 240

Deferred taxes in the income statement are the result of:

In KUSD 2024 2023 Addition/(utilization) of tax losses brought forward 1 356 -1 091 Origin/(reversal) of temporary differences - IAS 41 revaluation -1 279 521 Origin/(reversal) of temporary differences - fixed assets 1 053 2 685 Origin/(reversal) of temporary differences - pension provision 411 463 Origin/(reversal) of temporary differences - other - 314 - 536 Total 1 228 2 043

Total deferred tax assets are not entirely recognized in the balance sheet. The breakdown of total recognized and unrecognized

deferred taxes is as follows:

376 The connection to the world of sustainable tropical agriculture

2024 In KUSD Total Not recorded Recorded Biological assets -2 161 0 -2 161Property, plant and equipment, including bearer plants -46 729 0 -46 729Inventories -5 797 0 -5 797Pension provision 5 016 0 5 016 Tax losses 14 763 4 115 10 648 Others 2 811 0 2 811 Total -32 0974 115 -36 212

he majority of the unrecognized deferred tax assets at the end of 2024 are located at the companies of the South Sumatra group

(KUSD 3 268) and the Tolan Tiga group (KUSD 847). The set-up of and the adjustments to the deferred tax assets are based on the

most recently available long-term business plans.

The total tax losses (recognized and unrecognized) have the following maturity structure:

2024 In KUSD Total Not recorded Recorded 1 year 21 731 11 336 10 395 2 years 13 505 5 486 8 020 3 years 9 236 833 8 403 4 years 9 211 682 8 528 5 years 4 528 368 4 160 Unlimited 7 837 0 7 837 Total 66 048 18 705 47 343

n Indonesia and Papua New Guinea, the Group made advance payments of taxes in accordance with local legislation. These were

partly based on the results of 2023, which were in line with the results in 2024, and partly on the record results of 2022 which were

significantly higher than the results of 2024. Therefore, the prepayments of taxes of KUSD 31 625 were higher the taxes to be paid

of KUSD 27 077.

In KUSD 2024 2023 Taxes to receive 7 547 6 925 Taxes to pay -6 605-10 605Net taxes to receive/ (to pay) 941 -3 681

In KUSD 2024 2023 Net taxes to receive/ (to pay) at the beginning of the period -3 681-32 340Transfer 74 5 614 Taxes to pay -27 077-33 171Paid taxes 31 625 56 216 Net taxes to receive/ (to pay) at the end of the period 941 -3 681

axes paid as presented in the consolidated cash flow statement are detailed as follows:

In KUSD 2024 2023 Tax expense -25 851-31 128Deferred tax -1 226-2 043Current taxes -27 077-33 171Variation prepaid taxes -622-5 825Variation payable taxes -3 926-17 221Paid taxes -31 625-56 216

here are no material unrecorded uncertain tax positions within the SIPEF group. SIPEF is exempted from Pillar 2.

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SIPEF Integrated Annual Report 2024

Financial Statements

24. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

The SIPEF group has the following percentage of control and percentage of interest in the associates:

Entity Location % of control % of interest Verdant Bioscience Pte Ltd Singapore / Republic of Singapore 38.00 38.00 PT Timbang Deli Indonesia Medan / Indonesia 38.00 36.10

An associate is an entity over which the Group has significant influence. A joint venture is a joint arrangement whereby the parties

that have joint control of the arrangement have rights to the net assets of the arrangement. The Group has no joint ventures.

The investments in associates consist of Verdant Bioscience Singapore Pte Ltd and PT Timbang Deli, both active in tropical

agriculture.

Verdant Bioscience Pte Ltd (VBS) is a company located in Singapore. As of 1 January 2014, the Group holds a 38% interest in VBS.

The company is a cooperation between Ackermans & Van Haaren (42%), SIPEF NV (38%), PT Dharma Satya Nusantara (10%) and

BioSing Pte (10%) with the objective of conducting research into and developing high-yielding seeds with a view to commercializing

them.

The Group holds via Verdant Bioscience Pte Ltd a 36.10% participation in PT Timbang Deli, a company located on the island of

Sumatra in Indonesia. PT Timbang Deli is engaged in cultivation of palm oil and provides the practical operation of the Group's

research activities. Following the Share Swap agreement with Verdant Bioscience Pte Ltd the SIPEF group contributed 95% of the

total number of shares of PT Timbang Deli to Verdant Bioscience Pte Ltd.

The total section ‘investments in associates and joint ventures’ can be summarized as follows:

In KUSD 2024 2023 Verdant Bioscience Pte Ltd 2 504 3 123 PT Timbang Deli Indonesia -2 173 -1 426 Total 331 1 697

The total section ‘Share of profit/loss of an associate and joint venture’ can be summarized as follows:

In KUSD 2024 2023 Verdant Bioscience Pte Ltd - 619 - 678 PT Timbang Deli Indonesia - 747 - 657 Total result -1 366 -1 335

Below we present the condensed statements of financial position of the associated companies. These are prepared in accordance

with IFRS and are before intercompany eliminations and excluding goodwill.



Verdant Bioscience Pte Ltd PT Timbang Deli In KUSD 2024 2023 2024 2023 Biological assets 0 0 2 995 3 249 Other non-current assets 23 793 23 835 6 080 5 650 Current assets 16 926 14 527 1 162 987 Cash and cash equivalents 93 108 324 255 Total assets 40 812 38 470 10 560 10 141 Non-current liabilities - 8 - 14 1 302 1 371 Long term financial debts 0 0 0 0 Current liabilities 28 072 24 105 17 513 14 957 Short term financial debts 0 0 0 0 Equity 12 749 14 379 -8 255 -6 187 Total equity and liabilities 40 812 38 470 10 560 10 141

The associates had no contingent liabilities or capital commitments as at 31 December 2024 and 2023.

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378 The connection to the world of sustainable tropical agriculture

Below we present the condensed income statements of the associated companies. These are prepared in accordance with IFRS and

are before intercompany eliminations and excluding goodwill.

Verdant Bioscience Pte Ltd PT Timbang Deli In KUSD 2024 2023 2024 2023 Inclusion in the consolidation: 38.00% 38.00% 36.10% 36.10% Revenue 0 0 4 743 5 315 Depreciation 51 50 913 813 Interest income 668 203 3 3 Interest charges 0 0 - 668 - 203 Total comprehensive income -1 630 -1 784 -2 068 -1 820 Share in the consolidation - 619 - 678 - 747 - 657 Total share of the group - 619 - 678 - 747 - 657 Total share minorities 0 0 0 0 Total - 619 - 678 - 747 - 657



Reconciliation of the associated companies

The below tables are prepared in accordance based on the IFRS financial statements as included in the consolidation, in accordance

with the accounting policies of the SIPEF group, before goodwill allocation.

Verdant Bioscience Pte Ltd PT Timbang Deli In KUSD 2024 2023 2024 2023 Equity without goodwill 12 749 14 379 -8 255 -6 187 Share of the group 4 845 5 464 -2 980 -2 233 Goodwill 0 0 807 807 Equity elimination PT Timbang Deli -2 340 -2 340 0 0 Total 2 504 3 123 -2 173 -1 426

Dividends received from associated companies

During the year no dividends were received from associated companies. 

There are no restrictions on the transfers of funds to the Group.

25. CHANGE IN NET WORKING CAPITAL

Cash flow from operating activities remained in line with last year and went from KUSD 162 768 in 2023 to KUSD 162 900 in 2024.

The net working capital includes inventories, trade receivables and other current receivables, netted with trade payables and other

current liabilities.

The variation of the working capital of KUSD 1 768 mainly relates to the increase in trade/other receivables and trade/other payables,

and a decrease in other current liabilities related to reversal of provisions for invoices to be received.

The above-mentioned use of working capital concerned the usual temporary movements.

26. FINANCIAL INSTRUMENTS

Exposure to fluctuations in the market price of core products, currencies, environmental changes, agricultural activity, interest rates

and credit risk arises in the normal course of the Group’s business. Financial derivative instruments are used to a limited extend to

reduce the exposure to fluctuations in foreign exchange rates and interest rates.

Fluctuations in the market price of core products

Structural risk

SIPEF group is exposed to structural price risks of their core products. The risk is primarily related to palm oil and palm kernel oil and

to a lesser extent to bananas. A change of the palm oil price of USD 10 CIF per tonne has an impact of about KUSD 3 134 (without

considering the impact of the current export tax and export levies in Indonesia) on result after tax. This risk is assumed to be a

business risk.

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SIPEF Integrated Annual Report 2024

Financial Statements

Transactional risk

The Group faces transactional price risks on products sold. The transactional risk is the risk that the price of products purchased from

third parties fluctuates between the time the price is fixed with a customer and the time the transaction is settled. This risk is assumed

to be a business risk.

Currency risk

Most of the subsidiaries are using the US dollar as functional currency. The Group’s currency risk can be split into three distinct

categories: structural, transactional and translational:

Structural risk

Most of the Group’s revenues are denominated in USD, while all the operations are located outside the USD zone (particularly in

Indonesia, Papua New Guinea, Côte d’Ivoire and Europe). Any change in the USD against the local currency will therefore have a

considerable impact on the operating result of the company. Most of these risks are considered to be a business risk.

Transactional risk

The Group is also subject to transactional risks in respect of currencies, i.e. the risk of currency exchange rates fluctuating between

the time the price is fixed with a customer, supplier or financial institution and the time the transaction is settled. This risk, with the

exception of naturally covered positions, is not covered since most receivables and payables have a short settlement term.

The pension liabilities in Indonesia are important long-term liabilities that are fully payable in IDR. A devaluation or revaluation of 10%

of the IDR versus the USD has the following effect on the income statement:

In KUSD IDR Dev 10% Book value IDR Rev 10% Pension liabilities in Indonesia 21 161 23 277 25 863 Gross impact income statement 2 116 -2 586

The pension liability in Indonesia consists of KUSD 22 850 from fully consolidated subsidiaries and of KUSD 427 from equity

consolidated companies (PT Timbang Deli).

The long-term receivables on the Indonesian smallholders are important long-term assets that are fully payable in IDR. A devaluation

or revaluation of 10% of the IDR versus the USD has the following effect on the income statement:

In KUSD IDR Dev 10% Book value IDR Rev 10% Smallholder receivables* 37 873 41 661 46 290 Gross impact income statement -3 787 4 629 *Non-discounted total smallholders receivable

On February 11, 2025, the board of directors has proposed the payment of a dividend of maximum KEUR 21 159 (EUR 2.00 gross

per ordinary share). In line with the Group’s liquidity and currency policy, the exchange risk was covered in 4 forward exchange

contracts for the sale of KUSD 20 713 for KEUR 19 000 (average exchange rate of 1.0902) before year-end.

Sensitivity analysis

With regard to the cover of the dividend for the end of the year a devaluation or revaluation of 10% of the EUR versus the USD has

the following effect on the profit and loss account:

In KUSD EUR Dev 10% Closing rate EUR Rev 10% Dividend 17 942 19 736 21 929 Gross Impact income statement -1 794 2 193

Translational risk

The SIPEF group is an international company and has operations which do not use the USD as their reporting currency. When such

results are consolidated into the Group’s accounts the translated amount is exposed to variations in the value of such local results

are consolidated into the Group’s accounts the translated amount is exposed to variations in the value of such local currencies against

the USD. SIPEF group does not hedge against such risk (see accounting policies).

As from 1

of January 2007 onwards, the functional currency of most of our activities is the same as the presentation currency, this

risk has been largely restricted.

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380 The connection to the world of sustainable tropical agriculture

Interest rate risk

The Group’s exposure to changes in interest rates relates to the Group’s financial debt obligations. At the end of December 2024, the

Group’s net financial assets/(liabilities) amounted to KUSD -18 087 (2023: KUSD -31 418), of which KUSD 36 519 short-term financial

liabilities (2023: KUSD 40 994) and KUSD 19 880 net short-term cash and cash equivalents (2023: KUSD 11 549).

The ‘financial liabilities > 1 year’ (incl. derivatives) amount to KUSD 1 448 (2023: KUSD 1 974).

Considering that only the 'short-term obligations - credit institutions’ (KUSD 5 194, refer to note 19) are of a current nature with variable

interest rates, we believe a 0.5% change in interest rate will not have a material impact.

Available funds are invested in short-term deposits.

Environmental risk

The Group manages key environmental-related risks that are linked with land use and conservation through its group-wide

commitment to ‘no deforestation’ and ‘no new development in peat areas’ (NDP). The scope of this commitment includes SIPEF’s

smallholder suppliers. SIPEF is using a third-party monitoring platform to ensure effective implementation of this NDP policy. In

addition, climate-related risks are being assessed in consultation with experts, with a focus on climate change mitigation (GHG

emissions), climate physical risk and climate transition risk, as part of its work to develop and finalise the Group’s climate change

mitigation and adaptation strategy.

The production volumes, the turnover and margins realised by SIPEF are influenced by climatic conditions such as rainfall, sunshine,

temperature and humidity. The potential physical impact of climate change is uncertain and may vary by region and product. SIPEF

monitors water tables to design systems to deal with water retention, maintains buffer zones and invests in fire prevention / monitoring.

With the growing concern over sustainability, tighter rules may be imposed on companies. SIPEF’s palm oil plantations adhere to the

RSPO standards and comply with the RSPO principles and criteria. If SIPEF is unable to continue to meet stricter requirements, it

may lose its certification, or this may be suspended.

Agricultural activity risk

The primary financial risk associated with the Group’s agricultural activity occurs due to the length of time between expending cash

on capital expenditures, the purchase or planting and maintenance of the core products and on harvesting and producing the products,

and ultimately receiving cash from the sale of the core products to third parties. The Group’s strategy to manage this financial risk is

to actively review and manage its working capital requirement. In addition, the Group maintains credit facilities at a level sufficient to

fund its working capital during the period between cash expenditure and cash inflow. At 31 December 2024, the Group has unused

credit facilities in the form of short-term loans of KUSD 84 808.

Credit risk

Credit risk is the risk that one party will fail to discharge an obligation and cause the other party to incur a loss. This credit risk can be

split into a commercial and a financial credit risk. With regard to the commercial credit risk management has established a credit

policy and the exposure to this credit risk is monitored on a continuous basis.

In practice a difference is made between:

In KUSD 2024 2023 Receivables from the sale of palm oil 43 339 26 617 Receivables from the sale of bananas and plants 4 013 3 259 Total 47 353 29 876

The credit risk for the first category is rather limited as these sales are for the most part immediately paid against presentation of

documents. Moreover, it concerns a relatively small number of first-class buyers: per product about 90% of the revenue from contracts

with customers is realized with a maximum of 10 clients. For palm oil, there is one client who represents over 30% of the total sales.

Contrary to the first category the credit risk for the receivables from the sales of bananas and horticulture is higher.

For both categories, there is a weekly monitoring of the open balances due and a proactive system of reminders. Impairments are

applied as soon as total or partial payments are seen as unlikely. The elements that are taken into account for these appraisals are

the lengths of the delay in payment and the creditworthiness of the client.



381

SIPEF Integrated Annual Report 2024

Financial Statements

The receivables from the sales of bananas and horticulture have the following due date schedule:

In KUSD 2024 2023 Not yet due 2 313 2 115 Due < 30 days 1 650 736 Due between 30 and 60 days 48 391 Due between 60 and 90 days 0 0 Due > 90 days 2 16 Total 4 013 3 259

During 2024 and 2023, no material impairment on receivables was recorded in the income statement.

The Group applied the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance

for all trade receivables based on historical losses. The Group analysed the impact of IFRS 9 and concluded there is no mater ial

impact on the bad debt reserve booked. The Group also assessed whether the historic pattern would change materially in the future

and expects no significant impact.

Liquidity risk

A material and structural shortage in our cash flow would damage both our creditworthiness as well as the trust of investors and would

restrict the capacity of the Group to attract fresh capital. The operational cash flow provides the means to finance the financial

obligations and to increase shareholder value. The Group manages the liquidity risk by evaluating the short term and long-term cash

flows. The SIPEF group maintains an access to the capital market through short- and long-term debt programs.

The following table gives the contractually determined (not-discounted) cash flows resulting from liabilities at balance sheet date:

Carrying Contractual Less than More than 2024 - In KUSD 1-2 years 2-3 years 3-4 years amount cash flows 1 year 5 years Financial obligations > 1 year (incl. derivatives) 0 0 0 0 0 0 0 Leasing liabilities > 1 year 1 448 -2 537 - 29 - 603 - 451 - 150 -1 303 Advances received > 1 year 0 0 0 0 0 0 0 Trade & other liabilities < 1 year Trade payables 28 512 -28 512 -28 512 0 0 0 0 Advances received 3 934 -3 934 -3 934 0 0 0 0 Financial liabilities < 1 year Current portion of amounts payable > 1 year 0 0 0 0 0 0 0 Financial liabilities 35 894 -36 079 -36 079 0 0 0 0 Leasing liabilities < 1 year 626 - 665 - 665 0 0 0 0 Derivatives 1 053 -1 053 -1 053 0 0 0 0 Other current liabilities 0 0 0 0 0 0 0 Total liabilities 71 465 -72 779 -70 272 - 603 - 451 - 150 -1 303

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382 The connection to the world of sustainable tropical agriculture

Carrying Contractual Less than More than 2023 - In KUSD 1-2 years 2-3 years 3-4 years amount cash flows 1 year 5 years Financial obligations > 1 year (incl. derivatives) 0 0 0 0 0 0 0 Leasing liabilities > 1 year 1 974 -3 389 - 57 - 695 - 601 - 443 -1 593 Advances received > 1 year 0 0 0 0 0 0 0 Trade & other liabilities < 1 year Trade payables 25 243 -25 243 -25 243 0 0 0 0 Advances received 3 411 -3 411 -3 411 0 0 0 0 Financial liabilities < 1 year Current portion of amounts payable > 1 year 18 000 -18 327 -18 327 0 0 0 0 Financial liabilities 22 319 -22 519 -22 519 0 0 0 0 Leasing liabilities < 1 year 675 - 718 - 718 Derivatives 0 0 0 0 0 0 0 Other current liabilities 0 0 0 0 0 0 0 Total liabilities 71 623 -73 607 -70 275 - 695 - 601 - 443 -1 593

In order to limit the financial credit risk, SIPEF has spread its more important activities over a small number of banking groups with a

first-class rating for creditworthiness. The current maximum credit lines available amount to KUSD 122 775 (2023: KUSD 142 074).

In 2024, same as in previous years, there were no infringements on the conditions stated in the credit agreements nor were there any

shortcomings in repayments.

Financial instruments measured at fair value in the statement of financial position

Companies within the Group may use financial instruments for risk management purposes. Specifically, these are instruments

principally intended to manage the risks associated with fluctuating interest and exchange rates. The counterparties in the related

transactions are exclusively first-ranked banks.

Derivative instruments are measured at fair value at initial recognition. The changes in fair value are reported in the income statement

unless these instruments are part of hedging transactions.

Fair values of derivatives are:

In KUSD 2024 2023 Interest rate swaps 0 495 Forward exchange transactions -1 053 285 Fair value (+ = asset; - = liability) -1 053 780

In accordance with IFRS 13, financial instruments are grouped into 3 levels based on the degree to which the fair value is observable:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the

measurement date;

• Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly

or indirectly;

• Level 3 inputs are unobservable inputs for the asset or liability.

As the long-term loan was completely repaid in 2024, the interest rate swap is no longer applicable.

The notional amount from the forward exchange transactions amounts to KUSD 25 907. The forward exchange contracts are not

documented in a hedging relationship and accordingly, all changes in fair value are recorded in the financial result.

The fair value of the forward exchange contracts calculated at the closing value at 31 December 2024 were also incorporated in level



383

SIPEF Integrated Annual Report 2024

Financial Statements

Financial instruments per category

The following table presents the financial instruments per category as per end 2024 and end 2023: Carrying IFRS 9 Fair value 2024 - In KUSD Fair value amount category hierarchy Financial assets Other investments 112 AC 112 Level 2 Receivables > 1 year Other receivables 45 581 AC 45 581 Level 2 Total non-current financial assets 45 693 45 693 Trade and other receivables Trade receivables 47 353 AC 47 353 Level 2 Other receivables 32 859 AC 32 859 Level 2 Investments Other investments and deposits 1 AC 1 Level 2 Cash and cash equivalents 19 880 AC 19 880 Level 2 Derivatives 0 FVTPL 0 Level 2 Hedge Derivatives 0 accounting 0 Level 2 Total current financial assets 100 092 100 092 Trade and other obligations > 1 year 0 AC 0 Level 2 Financial obligations > 1 year (incl. derivatives) 0 AC 0 Level 2 Leasing liabilities > 1 year 1 448 AC 1 448 Level 2 Advances received > 1 year 0 AC 0 Level 2 Total non-current financial liabilities 1 448 1 448 Trade & other obligations < 1 year Trade payables 28 512 AC 28 512 Level 2 Other payables 20 373 AC 20 373 Level 2 Advances received 3 934 AC 3 934 Level 2 Financial obligations < 1 year Current portion of amounts payable > 1 year 0 AC 0 Level 2 Financial obligations 35 894 AC 35 894 Level 2 Leasing liabilities < 1 year 626 AC 626 Level 2 Derivatives 1 053 FVTPL 1 053 Level 2 Hedge Derivatives 0 accounting 0 Level 2 Total current financial liabilities 90 391 90 391



384 The connection to the world of sustainable tropical agriculture

Carrying IFRS 9 Fair value 2023 - In KUSD Fair value amount category hierarchy Financial assets Other investments 112 AC 112 Level 2 Receivables > 1 year Other receivables 34 229 AC 34 229 Level 2 Total non-current financial assets 34 341 34 341 Trade and other receivables Trade receivables 29 876 AC 29 876 Level 2 Other receivables 49 490 AC 49 490 Level 2 Investments 0 Other investments and deposits 1 AC 1 Level 2 Cash and cash equivalents 11 549 AC 11 549 Level 2 Derivatives 285 FVTPL 285 Level 2 Hedge Derivatives 495 accounting 0 Level 2 Total current financial assets 91 696 91 201 Trade and other obligations > 1 year 0 AC 0 Level 2 Financial obligations > 1 year (incl. derivatives) 0 AC 0 Level 2 Leasing liabilities > 1 year 1 974 AC 1 974 Level 2 Advances received > 1 year 0 AC 0 Level 2 Total non-current financial liabilities 1 974 1 974 Trade & other obligations < 1 year Trade payables 25 243 AC 25 243 Level 2 Other payables 15 832 AC 15 832 Level 2 Advances received 3 411 AC 3 411 Level 2 Financial obligations < 1 year Current portion of amounts payable > 1 year 18 000 AC 18 000 Level 2 Financial obligations 22 319 AC 22 319 Level 2 Leasing liabilities < 1 year 675 AC 675 Level 2 Derivatives 0 FVTPL 0 Level 2 Hedge Derivatives 0 accounting 0 Level 2 Total current financial liabilities 85 481 85 481

For an overview of the identified risks within the Group, including those identified in the Double Materiality Assessment, we refer to

the ‘Corporate Governance Statement’.

27. LEASING

The Group leases office space, land rights and vehicles under a number of lease agreements with a lease term of one year or more.

The rent of the office buildings concerns the monthly rental payments for the offices in Indonesia and Singapore. The rent of the

offices and ancillary parking space in Belgium has not been included in the leases due to the short-term exemption. For the land

rights, the subject of the lease concerns the usufruct of certain land wherefore a fixed annual rental amount is paid. The remaining

land rights in PNG have a duration of 99 years for which no rental amount is paid. These assets will be depreciated over a period of

20 years in line with the lifespan of an oil palm. The vehicles concern the limited number of car leases within the Group.

The future operating lease commitments under these non-cancellable leases are due as follows:

In KUSD 2024 2023 Current lease liabilities 626 675 Non-current lease liabilities 1 448 1 974 Total lease liability as at 31 December 2 073 2 649



385

SIPEF Integrated Annual Report 2024

Financial Statements

The movement during the year of the lease liability can be summarised as follows:

In KUSD 2024 2023 Lease commitments disclosed as at 1 January 2 649 2 910 Acquisitions 174 337 Financial costs/(income) 190 220 Lease repayments - 799 - 792 Exchange result - 140 - 27 Lease liability recognised as at 31 December 2 073 2 649

The lease repayments are included in the decrease in long term (KUSD 675) and short term (KUSD 124) financial borrowings in the

cash flow.

The right-of-use assets can be classified as follows:

Movement (in KUSD) 2024 2023 Total right-of-use assets as at 1 January 2 549 2 785 Acquisition 176 334 Depreciation -630 - 571 Total right-of-use assets as at 31 December 2 094 2 549

Land rights Office rent Car rent Total Total right-of-use assets as at 31 December 2023 822 1 428 299 2 549 Total right-of-use assets as at 31 December 2024 776 977 341 2 094

The total depreciation of the right-of-use assets until 31 December 2024 amounts to KUSD 630 and the financial expenses to

KUSD 190. Of the depreciation, KUSD 44 was recorded in the cost of sales of the palm segment of Hargy Oil Palms Ltd and KUSD

586 in the ‘general and administrative expenses’. There are no material expenses related to short term and low value leases. There

are no material extension options not included in the calculation.

28. RIGHTS AND COMMITMENTS NOT REFLECTED IN THE BALANCE SHEET

Guarantees

No guarantees have been issued in 2024 by third parties as security for the company’s account and no guarantees have been issued

to a third party for the account of subsidiaries.

Significant litigation

Nil.

Forward sales

The commitments for the delivery of goods (palm products and bananas) after the year end fall within the normal delivery period of

about 3 months from date of sale. Those sales are not considered as forward sales.

Conditional Sale and Purchase Agreement ("CSPA") PT Melania

In 2021, SIPEF signed a conditional sale and purchase agreement with Shamrock Group (SG) on the sale of 100% of the share

capital of its Indonesian subsidiary, PT Melania. The most important condition consists of the renewal of the land rights of both rubber

and tea activities. Failure to satisfy to the conditions included in the CSPA could result in a (partial) reallocation of the transferred

shares.



386 The connection to the world of sustainable tropical agriculture

29. RELATED PARTY TRANSACTIONS

Transactions with directors and members of the executive committee

Key management personnel are defined as the directors and the Group’s management committee. The table below shows an

overview of total remuneration received:

In KUSD 2024 2023 Directors' fees 581 480 Fixed fees 2 369 2 803 Variable fees 1 487 2 557 Post-employment benefits 341 429 Other 4 139 Market value vested stock option (on vesting date) 66 127 Total 4 848 6 535

The amounts are paid in EUR. The amount paid in 2024 amounts to KEUR 4 487 (2023: KEUR 6 036). The decrease of KEUR 1 549

is mainly a consequence of the lower variable fee paid in 2024 compared to 2023.

Starting from the financial year 2007, fixed fees shall be paid to the members of the board of directors, the audit committee and the

remuneration committee.

Related party transactions are considered immaterial, except for the rental agreement since 1985 between Cabra NV and SIPEF

covering the offices and ancillary parking space at Castle Calesberg in Schoten. The annual rent, adjusted for inflation, amounts to

KUSD 233 (2023: KUSD 220) and KUSD 94 (2023: KUSD 89) is invoiced for SIPEF’s share of maintenance of the buildings, parking

space and park area.

SIPEF's relations with board members and management committee members are covered in detail in the “Corporate Governance

statement” section.

Other related party transactions

Transactions with related companies are mainly trade transactions and are priced at arms’ length. The revenue and expenses related

to these transactions are immaterial to the consolidated financial statements as a whole.

Transactions with group companies

Balances and transactions between the Group and its subsidiaries which are related parties of the Group have been eliminated in the

consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed

below.

The following table represents the total of the transactions that have occurred during the financial year between the Group and the

joint venture PT Timbang Deli and Verdant Bioscience Pte Ltd at 100%:

Verdant Bioscience Pte Ltd PT Timbang Deli In KUSD 2024 2023 2024 2023 Total sales during the financial year 0 0 0 0 Total purchases during the financial year 0 0 2 055 2 117 Total receivables as per 31 December 11 688 10 056 47 12 Total payables as per 31 December 300 300 189 128

30. BUSINESS COMBINATIONS, ACQUISITIONS AND DIVESTURES

In 2021, SIPEF signed a conditional sale and purchase agreement with Shamrock Group (SG) on the sale of 100% of the share

capital of its Indonesian subsidiary, PT Melania. SG is an Indonesian group that runs several rubber plantations and factories, and

specialises in the production and sale of latex gloves. Before the transaction, SIPEF controlled 95% of PT Melania through its

Indonesian 95% subsidiary, PT Tolan Tiga. The remaining 5% is owned by an Indonesian pension fund.

As a reminder, PT Melania owned half of the Group’s Indonesian rubber operations in Sumatra back in 2021 and the entire tea

operations in Java. Initially, 40% of the shares was sold for a payment of USD 19 million. After this first stage the Shamrock Group

took over the management of the rubber activities. The second tranche of 60% of the shares (of which 55% are held by SIPEF) will

be transferred no later than 2024 for USD 17 million, after the renewal of the permanent land rights (HGU) for the whole of the rubber

and tea business. The gross transaction price for 100% of the shares is USD 36 million.

The land titles for the tea operations in Java have been successfully renewed. However, the renewal of the land titles for the rubber

estates in Sumatra is still pending. As a result, the transfer of the remaining shares could not yet take place. Post balance sheet, the

387

SIPEF Integrated Annual Report 2024

Financial Statements

purchaser sent a termination letter regarding the conditional sale and purchase agreement. The SIPEF group has contested the legal

validity of this termination letter. Considering the above, the fair value of the asset held for sale of PT Melania has been decreased

by a total of KUSD 6 394. Consequently, the total capital gain realized on the sale amounts to KUSD 5 246, compared to the originally

recorded capital gain of KUSD 11 640 in 2021.

As at 31 December 2023, an amount of KUSD 8 456 had already been paid for expenses related to the SPA. In 2024, an additional

KUSD 4 179 was paid. This relates to the cash paid to fulfil the conditions for the sale of PT Melania, mostly relating to the payment

of the remaining pension provisions and the necessary cash to operate the tea plantation. This brings the total amount disbursed to

KUSD 12 635 as at 31 December 2024. The advance which was already received at CD 1 (KUSD 9 147) has been fully utlised in

2024.

The final net sales price and potential capital gain on the sale of PT Melania will largely depend on the timing and cost of the renewal

of the permanent concession rights (HGU), as well as the compensation for the accrued social rights of the employed per sonnel,

which will be almost entirely taken over. The Group also remains responsible for financing the tea activities until the final transfer of

the shares. The capital gain on the sale of PT Melania may be revised in the future depending on a reassessment of these cost

estimates.

SIPEF has made a best estimate of the costs related to the sale of PT Melania. Below we present the calculation of the net selling

price:

In KUSD

2024

2023

Total consideration to be received

36 000

Estimated costs related to the sale

-18 149

-11 418

Net sales price (100% of the shares)

17 851

24 582

Net sales price for 95%

16 959

23 353

Of which:

40% of the shares

9 833

55% of the shares

7 126

13 520

31. EARNINGS PER SHARE (BASIC AND DILUTED)

From continuing and discontinued operations 2024 2023 Basic earnings per share Basic earnings per share - calculation (USD) 6.33 6.99 Basic earnings per share is calculated as follows: Numerator: net result for the period attributable to ordinary shareholders (KUSD) 65 838 72 735 Denominator: the weighted average number of ordinary shares outstanding 10 405 284 10 403 105 The weighted average number of ordinary shares outstanding is calculated as follows: Number of ordinary shares outstanding at January 1 10 399 328 10 400 395 Effect of shares issued / share buyback programs 5 956 2 710 Effect of the capital increase 0 0 The weighted average number of ordinary shares outstanding at December 31 10 405 284 10 403 105 Diluted earnings per share Diluted earnings per share - calculation (USD) 6.32 6.98 The diluted earnings per share is calculated as follows: Numerator: net result for the period attributable to ordinary shareholders (KUSD) 65 838 72 735 Denominator: the weighted average number of dilutive ordinary shares outstanding 10 415 312 10 417 254 The weighted average number of dilutive ordinary shares outstanding is calculated as follows: The weighted average number of ordinary shares outstanding at December 31 10 405 284 10 403 105 Effect of stock options on issue 10 028 14 149 The weighted average number of dilutive ordinary shares outstanding at December 31 10 415 312 10 417 254

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388 The connection to the world of sustainable tropical agriculture

32. EVENTS AFTER THE BALANCE SHEET DATE

Post balance sheet, the purchaser sent a termination letter regarding the conditional sale and purchase agreement of PT Melania.

SIPEF group has contested the legal validity of this termination letter. After considering the above, the fair value of the asset held of

sale of PT Melania has been decreased by a total of KUSD 6 394, which was already recognised in the results of the 2024 financial

year.



33. SERVICES PROVIDED BY THE AUDITOR AND RELATED FEES

The statutory auditor of the SIPEF group is Ernst & Young Bedrijfsrevisoren BV represented by Christoph Oris. The fees for the annual

report of SIPEF were approved by the general meeting after review and approval of the audit committee and by the board of directors.

These fees correspond to an amount of KUSD 266 in 2024 (2023: KUSD 130). The increase is due to the additional fee of KUSD 131

related to limited review of the CSRD reporting for the Group. EY has provided services for KUSD 729 in 2024 (2023: KUSD 597), of

which KUSD 0 (2023: KUSD 0) are for non-audit services.



ESEF information

ESEF INFORMATION

Homepage of reporting entity

www.sipef.com

LEI code of reporting entity 549300NN3PC8KDD43S24

Name of reporting entity or other means of identification

SIPEF

Domicile of entity

Belgium

Legal form of entity

Naamloze vennootschap

Country of incorporation

Belgium

Address of entity's registered oce

Calesbergdreef 5, 2900 Schoten, Belgium

Principal place of business

Indonesia, Papua New Guinea and Côte d’Ivoire

Description of nature of entity's operations and principal activities

Tropical agriculture

Name of parent entity

SIPEF

Name of ultimate parent of group

SIPEF

Explanation of change in name of reporting entity or other

means of identification from end of preceding reporting period

No change in name of reporting entity

Length of life of limited life entity

Period covered by financial statements

389

SIPEF Integrated Annual Report 2024

Financial Statements

Statutory auditor’s report on consolidated financial statements

390 The connection to the world of sustainable tropical agriculture

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









 

 









 





 































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









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









► 

 





 



► 





 



► 









► 







► 

 



► 

 

 







► 





 





























391

SIPEF Integrated Annual Report 2024

Financial Statements









 

















Summary of the procedures performed

►









►











►













►











►







►











Gain on sale transaction PT Melania

Description of the key audit matter







































































 









Summary of the procedures performed

►







►







►

























392 The connection to the world of sustainable tropical agriculture







 

►











Responsibilities of the Board of Directors

for the preparation of the Consolidated

Financial Statements











































Our responsibilities for the audit of the

Consolidated Financial Statements

































































► 



























► 













► 











► 



















393

SIPEF Integrated Annual Report 2024

Financial Statements







 





















►































































 





Report on other legal and regulatory requirements

  



























 















































 



























394 The connection to the world of sustainable tropical agriculture







 















 





















































►

























395

SIPEF Integrated Annual Report 2024

Financial Statements

Statutory auditor’s report on other legal and regulatory requirements

Besloten vennootschap

Société à responsabilité limitée.

RPR Brussel – RPM Bruxelles – T.V.A. - B.T.W. BE 0446.334.711 – IBAN N° BE71 2100 9059 0069

*handelend in naam van een vennootschap/agissant au nom d’une société

A member firm of Ernst & Young Global Limited

396 The connection to the world of sustainable tropical agriculture

































Other matters













Responsibilities of the Board of Directors in

relation to the preparation of sustainability

information

















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







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

























 



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













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



3:32/2 





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













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













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













Inherent limitations in preparing the

sustainability statement



























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397

SIPEF Integrated Annual Report 2024

Financial Statements





Statutory Auditor's responsibilities in

relation with the limited assurance

engagement on the sustainability

information

















































 







































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













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













►



















►







►



















Summary of the work performed









































398 The connection to the world of sustainable tropical agriculture

399

SIPEF Integrated Annual Report 2024

Financial Statements

Parent company summarised statutory accounts

The annual accounts of SIPEF are given below in summarized form. In accordance with the Belgian Code on Companies, the annual

accounts of SIPEF, together with the management report and the auditor’s report will be deposited with the National Bank of Belgium.

These documents may also be obtained on request from:

SIPEF, Calesbergdreef 5, B-2900 Schoten

Only the consolidated annual financial statements as set forth in the preceding pages present a true and fair view of the financial

position and performance of the SIPEF Group.

The statutory auditor’s report is unqualified and certifies that the annual accounts of SIPEF NV give a true and fair view of the

company's net equity and financial position as of 31 December 2024 and of its results for the year then ended, in accordance with the

financial reporting framework applicable in Belgium.

The balance sheet total of the company as per 31 December 2024 amounts to KUSD 410 970 compared to KUSD 412 045 in previous

year.

The ‘financial assets - receivables from affiliated companies’ have increased with KUSD 6 519 mainly due to reclassification of the

loan to our associate Verdant Bioscience Pte Ltd (KUSD 10 054) from short-term to long-term. The ‘amounts receivable within one

year’ have decreased by KUSD 6 210 due to reclassification of the loan to our associate Verdant Bioscience Pte Ltd

(KUSD -10 054) from short-term to long-term, repayments from the subsidiaries (KUSD -6 202) and offset by a higher trade

receivable balance per year-end (KUSD 10 446).

On the liabilities side, the increase of KUSD 15 186 in ‘amounts payable within one year’ is related to:

- A decrease due the repayment of the last part of the long-term financial loan of KUSD -18 000.

- An increase in short-term financial debt of KUSD 13 575 because the long-term financial debt were replaced by short-term

financial debts.

- An increase in trade payables with KUSD 21 997 due to a higher outstanding position with Hargy Oil Palms at year-end

- A decrease in the other amounts payable within one year mainly due to a lower dividend payable (KUSD -2 127) per year-

end.

The equity of SIPEF before profit appropriation amounts to KUSD 283 760, which corresponds to USD 26.82 per share.

The individual results of SIPEF are large determined by dividends and financial income from interests received on intragroup current

accounts. As SIPEF does not directly hold all of the Group’s participating interest, the consolidated result of the Group is a more

accurate reflection of the underlying economic development.

The statutory profit for the year 2024 amounts to KUSD 6 791 compared to a profit of KUSD 10 806 in the previous year.

On February 11, 2025, a dividend of maximum KEUR 21 159 (EUR 2.00 gross per ordinary share) has been recommended by the

board of directors. After deduction of the withholding tax (30%), the net dividend will amount to EUR 1.40 per share. Since the treasury

shares are not entitled to a dividend in accordance with Article 7:217 §3 of the Code of Companies and Associations, the total dividend

amount depends on the number of treasury shares for account of SIPEF, on June 11, 2025 at 11.59 pm CET (i.e. the day be-fore the

ex-date). The board of directors proposes to be authorised accordingly to enter the final total dividend amount (and the resulting

change) in the statutory financial statements. The maximum proposed total amount is KEUR 21 159. If the annual general meeting

approves this dividend proposal, the dividend will be payable from July 2, 2025.

Taking into account the number of treasury shares held on the date of establishment of the annual report (162 016 shares), the board

of directors proposes to allocate the result (in KUSD) as follows:

• Profit carried forward from previous year: KUSD 108 472

• Profit of the year: KUSD 6 791

• Total available for appropriation: KUSD 115 263

• Addition to the legal reserve: KUSD 0

• Addition to the other reserves: KUSD 0

• Dividend: KUSD -21 642

• Result to be carried forward: KUSD 93 618



400 The connection to the world of sustainable tropical agriculture

Condensed balance sheet

(after appropriation)



In KUSD

2024

2023

Assets

Fixed assets

348 048

341 590

Formation expenses

Intangible assets

119

138

Tangible assets

215

257

Financial assets

347 714

341 196

Current assets

62 922

70 454

Amounts receivable after more than one year

Stocks and contracts in progress

1 329

1 233

Amounts receivable within one year

49 074

55 284

Investments

9 617

11 153

Cash at bank and in hand

2 624

2 167

Other current assets

278

618

Total assets

410 970

412 045

Liabilities

Equity

262 118

276 973

Capital

44 734

Share premium account

107 970

Reserves

15 797

15 796

Profit/ (loss) carried forward

93 618

108 472

Provisions and deferred taxation

Provisions for liabilities and charges

Creditors

148 853

135 072

Amounts payable after more than one year

Amounts payable within one year

148 799

133 609

Accrued charges and deferred income

1 463

Total liabilities

410 970

412 045



401

SIPEF Integrated Annual Report 2024

Financial Statements

Condensed income statement



In KUSD

2024

2023

Operating income

233 514

234 096

Operating charges

- 231 171

- 229 832

Operating result

2 342

4 264

Financial income

14 183

11 463

Financial expenses

- 8 553

- 2 294

Financial result

5 629

9 169

Result for the period before taxes

7 972

13 433

Income taxes

- 1 181

- 2 628

Result for the period

6 791

10 806

Appropriation account

In KUSD

2024

2023

Profit/ (loss) to be appropriated

115 263

131 429

Profit / (loss) for the period available for appropriation

6 791

10 806

Profit / (loss) brought forward

108 472

120 623

Appropriation account

115 260

131 429

Transfers to legal reserve

Transfers to other reserves

Result to be carried forward

93 618

108 472

Dividends

21 642

22 957

Remuneration to directors

402 The connection to the world of sustainable tropical agriculture

403

SIPEF Integrated Annual Report 2024

Financial Statements

404 The connection to the world of sustainable tropical agriculture

Annexes

405

SIPEF Integrated Annual Report 2024 Annex

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI 1 Climate

change

miti

gation,

Energy

1.1 Methane capture:

Install methane

capture at all

mills. **

5 Set in

FY2024

10 Mills 2030 IDN

PNG

New target

1.2 Site based

monitoring of

GHG emissions

through direct

measurements

at all organic soil

estates. **

0 Set in

FY2024

3 Estates 2028 IDN New target

1.3 28% reduction net

emissions inten

sity from 2021

baseline. (Scope 1

& 2) for OP.

To be

revised

Set in

FY2021

28 % 2030 IDN

PNG

On track

To start revision

in FY2025

KPI 2 Climate

change

adaptation

1.4 Protection of

coastal shorelines

and prevention of

ﬂooding through

mangrove planting

and coastal buer

restoration

0 Set in

FY2021

6.5

Hectares

2027* PNG On track

Ongoing active

mangrove

planting within

the coastal

buer zone. 796

seedlings planted

in 2024.

Hectares

2027* IDN On track

Assisted natural

regeneration in

progress. 581

seedlings were

planted within

the coastal buer

zone in 2024.

Annex 1 – Sustainability targets

and achievements

ENVIRONMENTAL INFORMATION

Focus area: Environmental stewardship

Goals: GHG emissions reduction and long-term climate resilience

Approach: To implement a comprehensive climate transition plan that integrates sustainable energy

practices, circular economy principles, optimised land use, and water resource management, while

protecting biodiversity and fostering a sustainable, low-carbon future for the oil palm industry.

(1) Note: The target was set prior to this reporting period and is not included in the scope of the CSRD limited assurance conducted for this

Sustainability Statement. It will be revised in 2025 to align with the requirements of the ESRS.

406 The connection to the world of sustainable tropical agriculture

*    2023

**     2024

Focus area: Environmental stewardship

Goal: Minimise impacts on natural resources and the environment

Approach: To safeguard natural resources through optimised land use, ecient water management,

waste and pollution reduction, and the re-use of by-products

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI 2 Climate

change

adaptation

1.5 5 regenerative

agriculture pilots

started with a

model to scale

up. **

0 Set in

FY2024

5 Pilots 2026 IDN

PNG

New target

1.6 Installation of

rainwater harvest

ing system at all

palm oil mills. **

0 Set in

FY2024

10 Mills 2030 IDN

PNG

New target

1.7 Installation of

water recycling

basin at one

banana packing

station.**

0 Set in

FY2024

1 Packing

station

2025 CIV New target

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI 3 Air

pollutant

released**

1.8 Zero non-con

formance against

local regulations

and industry

regulation on

smoke density in

palm oil mills.**

Note: Required by

legislation.

Not

applica

ble

Set in

FY2024

0 Case

Annual

IDN

PNG

New target

407

SIPEF Integrated Annual Report 2024 Annex

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI 4

Waste-

water

discharged

1.9 Zero non-con-

formance against

local regulations

and industry

regulation on

euent limits in

palm oil mills and

packing stations.*

Note: Required by

legislation.

Not

applica

ble

Set in

FY2020

0 case

Annual

IDN

PNG

CIV

Not achieved

3 mills exceeded

TSS limits in

PNG

See section

‘E2: Pollution’

for more

information

KPI 5 Water

usage

1.10 Annual average

of water usage

intensity per tonne

of FFB processed

in palm oil mills

meets eciency

targets set for each

location.*

PNG

HPOM........≤1.3

NPOM........≤1.3

BPOM ........≤1.3

idn

BMPOM ........≤ 1

MMPOM .......≤1

BTPOM ........≤ 1

DILPOM .....≤ 1.5

PLPOM.........≤ 1

UMWPOM . . .≤ 1.5

AMRPOM ......≤ 1

Not

applica

ble

Set in

FY2020

target

per

each

mill

water/

tonne

FFB

pro

cessed

Annual

IDN

PNG

Not achieved

1 mill exceeded

target in IDN

See section ‘E3:

Water’ for more

information

408 The connection to the world of sustainable tropical agriculture

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI 6 Land

use

change,

Land

degra

dation

1.11 Fire: Zero

incidents of

fire in own con

cessions under

the Company’s

management

control and

supplier areas.

Not

appli

cable

Set in

FY2020

0 case

Annual

IDN

PNG

Not achieved

Cases of fire:

• Within own

concessions: Seven

fire incidents were

confirmed in Indonesia,

where the origins were

linked to community

lands that have not been

compensated and fall

outside SIPEF’s direct

control. In some cases,

the fires caused minor

impacts to SIPEF’s

planted areas. One

additional case was

confirmed in Papua New

Guinea, where a house

accidentally caught fire.

• Supplier areas:

Two fire incidents

were confirmed in

smallholder areas in

Indonesia and Papua

New Guinea. These areas

are not part of SIPEF’s

sourcing base, and any

adverse impacts are

currently undergoing

rehabilitation.

See section ‘E4:

Biodiversity and ecosys

tems’ for more information

1.12 Deforestation:

Zero incidents

of deforestation

in own con

cessions under

the Company’s

management

control and

supplier areas.

Not

appli

cable

Set in

FY2020

0 case

Annual

IDN

PNG

Achieved

No incidents recorded of

deforestation

See section ‘E4:

Biodiversity and ecosys

tems’ for more information

Focus area: Environmental stewardship

Goal: Sustainable land use and biodiversity conservation, including no deforestation and no new devel-

opments on peat

Approach: To promote and support the development of regenerative landscapes through conservation,

restoration regenerative practices, respect for land and community rights, and partnerships with key

stakeholders.

Relevance of mitigation hierarchy level

Target 1.11 & 1.12: Avoidance

Target 1.13, 1.14, 1.15: Avoidance, Restoration and Rehabilitation

*    2023

**     2024

409

SIPEF Integrated Annual Report 2024 Annex

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI 7 Species

protec

tion,

Land

degra

dation

1.13 Landscape level

approaches

to oil palm

cultivation:

Establish one

landscape level

approach to

nature positive

oil palm

cultivation and

community

engagement

in Papua New

Guinea. **

Not

appli

cable

Set in

FY2024

1 site 2030 PNG New target

1.14 Restore 256

hectares of

degraded land

within SBI from

baseline year

2021.

0 Set in

FY2021

256 hec

tares

2024 IDN

Achieved

286.44 hectares were

restored, exceeding the

target by 30.44 hectares.

See section ‘E4:

Biodiversity and ecosys

tems’ for more information

1.15 Restore 1 123

hectares of

degraded land

within SBI,

with baseline

starting from

FY2024. **

0 Set in

FY2024

1 123 hec-

tares

2033 IDN

New target

410 The connection to the world of sustainable tropical agriculture

SOCIAL INFORMATION

Focus area: Respecting employees and communities

Goal: Respect human, labour, and community rights, in accordance with local laws and international

frameworks

Approach: To uphold workers' rights, ensure fair labour practices, and maintain a safe and respectful

workplace free from discrimination, violence, and exploitation, and empowering employees through

continuous development.

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI 8 Work-life

balance

1.16 10 childhood

schools submitted

for registration

with the local

authorities in

PNG. **

0 Set in

FY2024

10 schools 2025 PNG New target

KPI 9 Health and

safety

1.17 No work-related

fatalities.

Not

applica

ble

Annual 0 case

Annual

IDN

PNG

CIV

Achieved

No fatalities

recorded

1.18 Reduce LTIFR by

8.5%*

4.34

FY2023

3.97 rate 2027 IDN On track

See section ‘S1:

Own workforce’

for more

information

6.82

FY2024

6.24 rate 2027 PNG

7.38

FY2024

6.75 rate 2027 CIV

*    2023

**     2024

411

SIPEF Integrated Annual Report 2024 Annex

Focus area: Responsible supply chain management

Goal:

• Support smallholders in their journey towards improved, sustainable, and certified production

• Support smallholders to earn higher incomes and have better access to international markets

• Screen and monitor suppliers to ensure compliance with SIPEF policies

Approach: To enhance the livelihoods of smallholders by providing access to sustainable farming practices

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI

Smallholders'

engagements

1.19 Training on RPuP to

be provided to scheme

smallholders. **

0 Set in

FY2024

100 % 2026 PNG New

target

1.20 Training on updated

RPuP to be provided

to independent

smallholders.

20 non-RSPO certified

independent

smallholder groups’

board of cooperatives

(Koperasi) to be

trained. **

0 Set in

FY2024

20 Board

coop

era-

tives

2025 IDN

New

target

1.21

Certification for

scheme smallholders:

RSPO certification for

suppliers of PT Agro

Kati Lama, PT Agro

Muara Rupit and PT

Agro Rawas Ulu.

0 Set in

FY2022

100 % 2030* IDN On track

Ongoing

prepara

tion for

certification

1.22

Certification

for Independent

smallholders:

Engage with 19

cooperatives of inde

pendent smallholders

to achieve RSPO group

certification. **

0 Set in

FY2024

Coope-

ratives

2026 IDN

New

target

412 The connection to the world of sustainable tropical agriculture

Focus area: High-quality, sustainable, traceable, certified products

Goal:

• Full compliance with leading sustainability standards and certifications

• Maintain 100% traceability for all products

• Implement the highest food safety and quality standards

Approach: Supplying high-quality, sustainable, traceable and certified products, which is key for SIPEF

to dierentiate itself from others and diversify into targeted markets.

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI

Food

safety

1.23 Achieve food safety

certification for all

ten palm oil mills in

Indonesia and Papua

New Guinea. **

0 Set in

FY2024

10 mills 2028 IDN

PNG

New target

1.24 Chloride reduction

programme:

Installation of CPO

washing plants at

three mills. **

0 Set in

FY2024

3 mills 2026 IDN

PNG

New target

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI

Corruption

and

bribery

1.25 Annual training to be

carried out for func

tions-at-risk within

own operations. **

0 Set in

FY2024

100 %

Annual

IDN

PNG

CIV

BEL

SGP

New target

GOVERNANCE INFORMATION

Focus area: Good business conduct

Goal:

• Foster a culture of ethical conduct amongst management, sta, and contractors

• Implementing systems and processes to ensure the practice of ethical conduct

• Maintain robust policies, procedures and measures to address any risks, including those associated

with bribery or corruption

Approach: To maintain trust and promote ethical behaviour by ensuring compliance with all legal and

regulatory requirements

*    2023

**     2024

413

SIPEF Integrated Annual Report 2024 Annex

CERTIFICATION

Methodologies to define targets

Several rounds of consultations were organised

by the Global Sustainability Team with regional

teams in Indonesia, Papua New Guinea, and Côte

d’Ivoire. These involved both the sustainability

teams, regional executive committees and other

relevant departments, depending on the topic, to

gather input and approval for the development of

KPIs and targets.

The proposed KPIs and targets were then presented

to the SIPEF executive committee for review, and

were then subsequently submitted to the SIPEF

audit committee and board of directors for final

approval. They were defined based on SIPEF’s

sustainability ambitions, applicable industry and

legal standards (as referenced in the table above),

and the expertise of internal specialists. No signifi-

cant assumptions were used in defining the targets.

For GHG emissions, targets were informed by sci-

ence-based guidance, while other environmental

targets were based on internal expertise and best

industry practices.

For sustainability matters where targets have not

yet been set, SIPEF aims to conduct baseline assess-

ments and establish targets where relevant. In the

meantime, performance continues to be monitored

in accordance with corporate policies, certification

requirements, and applicable legal obligations.

Changes in the targets set

 

Environmental [8]: Target #1.1, 1,2, 1.5,1.6,1.7,

1.8,1.13,1.15

Social [6]: Target #1.16, 1.19,1.20,1.22, 1.23, 1.24

Governance [1]: Target #1.25

 

Revisions were made based on consultations assess-

ing the achievability and relevance of previously

set targets.

Environmental [3]

• Target #1.4: Updated target year (improved

achievability)

• Target #1.9: Expanded scope to include packing

stations

• Target #1.10: Adjusted intensity to align with

soil types of supply bases where mills operate

Social [2]

• Target #1.18: Updated baseline value, base year,

target value, and target year to reflect more

accurate, up-to-date statistics

• Target #1.21: Updated target year (achievability),

pending completion of the HGU process

Certification [1]

• Target #1.26: Updated target year (achievability),

pending HGU process

NO. KPI TARGET

BASELINE

VALUE

BASE

YEAR

TARGET

VALUE

TARGET

UNIT

TARGET

YEAR

COUNTRY STATUS 2024

KPI

Certification 1.26 Achieving 100%

RSPO certifica

tion for SIPEF’s

own oil palm

estates.

Not

applica

ble

FY2021 100 % 2030* IDN

PNG

75% of RSPO

certified own

planted areas

achieved

414 The connection to the world of sustainable tropical agriculture

415

SIPEF Integrated Annual Report 2024 Annex

Annex 2 – Base Data

ABOUT SIPEF

Group production (in tonnes - excluding PT Melania)

FRESH FRUIT BUNCHES PRODUCED YTD 2024 YTD 2023 % CHANGE

OWN

Indonesia 1 069 984 1 049 691 1.93%

Tolan Tiga group 282 262 282 821 -0.20%

Umbul Mas Wisesa group 180 246 186 328 -3.26%

Agro Muko group 343 696 362 376 -5.16%

South Sumatra group 263 780 218 165 20.91%

Papua New Guinea 284 785 367 340 -22.47%

Hargy Oil Palms Ltd 284 785 367 340 -22.47%

TOTAL OWN 1 354 769 1 417 031 4.39%

OUTGROWERS

Indonesia 63 841 60 848 4.92%

Tolan Tiga group 8 011 10 304 -22.25%

Umbul Mas Wisesa group 878 812 8.12%

Agro Muko group 14 693 17 356 -15.34%

South Sumatra group 40 260 32 377 24.35%

Papua New Guinea 201 965 232 414 -13.10%

Hargy Oil Palms Ltd 201 965 232 414 -13.10%

TOTAL OUTGROWERS 265 807 293 262 9.36%

TOTAL FRESH FRUIT BUNCHES PRODUCED 1 620 575 1 710 292 5.25%

FRESH FRUIT BUNCHES SOLD YTD 2024 YTD 2023 % CHANGE

Indonesia 27 261 42 588 -35.99%

Tolan Tiga group 307 2 631 -88.32%

Umbul Mas Wisesa group 25 073 34 467 -27.26%

Agro Muko group 1 881 5 490 -65.73%

South Sumatra group 0 0

TOTAL FRESH FRUIT BUNCHES SOLD 27 261 42 588 35.99%

416 The connection to the world of sustainable tropical agriculture

OIL EXTRACTION RATE YTD 2024 YTD 2023 % CHANGE

Indonesia 22.4% 22.9% -2.07%

Tolan Tiga group 22.5% 22.7% -0.51%

Umbul Mas Wisesa group 21.8% 22.9% -4.92%

Agro Muko group 22.3% 23.0% -2.96%

South Sumatra group 22.7% 22.9% -1.05%

Papua New Guinea 23.5% 24.5% -3.99%

Hargy Oil Palms Ltd 23.5% 24.5% -3.99%

TOTAL OIL EXTRACTION RATE 22.7% 23.5% 3.04%

FRESH FRUIT BUNCHES PROCESSED YTD 2024 YTD 2023 % CHANGE

Indonesia 1 106 564 1 067 951 3.62%

Tolan Tiga group 289 966 290 494 -0.18%

Umbul Mas Wisesa group 156 051 152 673 2.21%

Agro Muko group 356 507 374 241 -4.74%

South Sumatra group 304 040 250 543 21.35%

Papua New Guinea 486 750 599 755 -18.84%

Hargy Oil Palms Ltd 486 750 599 755 -18.84%

TOTAL FRESH FRUIT BUNCHES PROCESSED 1 593 314 1 667 704 4.46%

417

SIPEF Integrated Annual Report 2024 Annex

PALM KERNELS YTD 2024 YTD 2023 % CHANGE

OWN

Indonesia 47 926 46 579 2.89%

Tolan Tiga group 15 742 15 912 -1.07%

Umbul Mas Wisesa group 6 771 6 388 5.99%

Agro Muko group 15 547 15 792 -1.55%

South Sumatra group 9 866 8 487 16.25%

TOTAL OWN 47 926 46 579 2.89%

OUTGROWERS

Indonesia 2 459 2 353 4.52%

Tolan Tiga group 383 385 -0.27%

Umbul Mas Wisesa group 34 28 21.31%

Agro Muko group 638 755 -15.49%

South Sumatra group 1 404 1 186 18.42%

TOTAL OUTGROWERS 2 459 2 353 4.52%

TOTAL PALM KERNELS 50 385 48 932 2.97%

PALM OIL YTD 2024 YTD 2023 % CHANGE

OWN

Indonesia 234 094 231 569 1.09%

Tolan Tiga group 63 551 64 044 -0.77%

Umbul Mas Wisesa group 33 827 34 832 -2.89%

Agro Muko group 76 658 82 490 -7.07%

South Sumatra group 60 058 50 202 19.63%

Papua New Guinea 67 125 90 060 -25.47%

Hargy Oil Palms Ltd 67 125 90 060 -25.47%

TOTAL OWN 301 220 321 629 6.35%

OUTGROWERS

Indonesia 13 948 12 883 8.27%

Tolan Tiga group 1 814 1 773 2.27%

Umbul Mas Wisesa group 172 152 13.04%

Agro Muko group 3 015 3 695 -18.40%

South Sumatra group 8 948 7 263 23.20%

Papua New Guinea 47 236 56 703 -16.69%

Hargy Oil Palms Ltd 47 236 56 703 -16.69%

TOTAL OUTGROWERS 61 185 69 586 12.07%

TOTAL PALM OIL 362 404 391 215 7.36%

418 The connection to the world of sustainable tropical agriculture

PALM KERNEL OIL YTD 2024 YTD 2023 % CHANGE

Papua New Guinea 9 478 12 411 -23.63%

Hargy Oil Palms Ltd - Own 5 584 7 690 -27.39%

Hargy Oil Palms Ltd - Outgrowers 3 895 4 721 -17.50%

TOTAL PALM KERNEL OIL 9 478 12 411 23.63%

RUBBER YTD 2024 YTD 2023 % CHANGE

OWN

Indonesia 59 827 -92.87%

Tolan Tiga group 0 151 -100.00%

Agro Muko 59 676 -91.27%

TOTAL OWN 59 827 92.87%

OUTGROWERS

Indonesia 0 141 -100.00%

Tolan Tiga group 0 141 -100.00%

TOTAL OUTGROWERS 0 141 100.00%

TOTAL RUBBER 59 968 93.90%

BANANAS YTD 2024 YTD 2023 % CHANGE

Côte d'Ivoire 51 038 40 976 24.56%

Azaguié 9 922 11 701 -15.20%

Agboville 8 938 8 004 11.66%

Motobé 6 165 6 424 -4.04%

Lumen 19 389 12 676 52.96%

Akoudié 6 624 2 171 205.10%

TOTAL BANANAS 51 038 40 976 24.56%

419

SIPEF Integrated Annual Report 2024 Annex

2024 2023

MATURE IMMATURE PLANTED MATURE IMMATURE PLANTED

OIL PALMS 68 879 16 622 85 500 67 222 14 949 82 171

Indonesia 56 434 15 517 71 951 54 917 13 705 68 621

Tolan Tiga group 10 915 3 193 14 107 11 455 2 496 13 950

PT Tolan Tiga 6 981 1 052 8 033 6 960 1 075 8 035

PT Eastern Sumatra 2 273 636 2 910 2 500 593 3 093

PT Kerasaan 1 661 488 2 149 1 994 327 2 322

PT Bandar Sumatra 0 1 016 1 016 0 500 500

Umbul Mas Wisesa group 9 242 658 9 899 9 924 0 9 924

PT Umbul Mas Wisesa 6 389 658 7 046 7 043 0 7 043

PT Toton Usaha Mandiri 1 135 0 1 135 1 135 0 1 135

PT Citra Sawit Mandiri 1 718 0 1 718 1 746 0 1 746

Agro Muko group 17 401 5 609 23 010 17 484 4 066 21 549

PT Agro Muko 15 022 4 670 19 692 14 995 3 474 18 469

PT Mukomuko Agro Sejahtera 2 379 939 3 318 2 489 592 3 081

South Sumatra group 18 876 6 058 24 934 16 054 7 143 23 197

PT Agro Kati Lama 4 270 963 5 233 4 022 779 4 801

PT Agro Muara Rupit 5 395 4 079 9 474 4 980 3 371 8 352

PT Agro Rawas Ulu 2 534 218 2 752 2 405 205 2 610

PT Dendymarker Indah Lestari 6 677 799 7 475 4 646 2 788 7 434

Papua New Guinea 12 445 1 105 13 550 12 305 1 244 13 550

Hargy Oil Palms Ltd 12 445 1 105 13 550 12 305 1 244 13 550

RUBBER 0 0 0 1 901 0 1 901

Indonesia 0 0 0 1 901 0 1 901

Tolan Tiga group 0 0 0 649 0 649

PT Bandar Sumatra 0 0 0 649 0 649

Agro Muko group 0 0 0 1 251 0 1 251

PT Agro Muko 0 0 0 1 251 0 1 251

BANANAS 1 257 0 1 257 1 229 0 1 229

Côte d'Ivoire 1 257 0 1 257 1 229 0 1 229

Plantations J. Eglin SA 1 257 0 1 257 1 229 0 1 229

PINEAPPLE FLOWERS 0 0 0 29 0 29

Côte d'Ivoire 0 0 0 29 0 29

Plantations J. Eglin SA 0 0 0 29 0 29

TOTAL 70 136 16 622 86 756 70 381 14 949 85 330

Planted Area (in hectares)

Total planted area of consolidated companies

excluding PT Timbang Deli and PT Melania.

420

The connection to the world of sustainable tropical agriculture

TOTAL

BENEFICIAL INTEREST

 %

SHARE OF

THE GROUP

OIL PALMS 85 500 94.15% 80 500

Indonesia 71 951 93.05% 66 951

Tolan Tiga group 14 107 80.96% 11 421

PT Tolan Tiga 8 033 95.00% 7 631

PT Eastern Sumatra 2 910 90.25% 2 626

PT Kerasaan 2 149 54.15% 1 164

PT Bandar Sumatra 1 016 90.25% 917

Umbul Mas Wisesa group 9 899 95.00% 9 404

PT Umbul Mas Wisesa 7 046 95.00% 6 694

PT Toton Usaha Mandiri 1 135 95.00% 1 078

PT Citra Sawit Mandiri 1 718 95.00% 1 632

Agro Muko group 23 010 93.71% 21 562

PT Agro Muko 19 692 95.05% 18 717

PT Mukomuko Agro Sejahtera 3 318 85.74% 2 845

South Sumatra group 24 934 98.51% 24 564

PT Agro Kati Lama 5 233 100.00% 5 233

PT Agro Muara Rupit 9 474 100.00% 9 474

PT Agro Rawas Ulu 2 752 100.00% 2 752

PT Dendymarker Indah Lestari 7 475 95.05% 7 105

Papua New Guinea 13 550 100.00% 13 550

Hargy Oil Palms Ltd 13 550 100.00% 13 550

RUBBER 0 0.00% 0

Indonesia 0 0.00% 0

Tolan Tiga group 0 0.00% 0

PT Bandar Sumatra 0 90.25% 0

Agro Muko group 0 0.00% 0

PT Agro Muko 0 90.25% 0

BANANAS 1 257 100.00% 1 257

Côte d'Ivoire 1 257 100.00% 1 257

Plantations J. Eglin SA 1 257 100.00% 1 257

PINEAPPLE FLOWERS 0 0.00% 0

Côte d'Ivoire 0 0.00% 0

Plantations J. Eglin SA 0 0.00% 0

TOTAL

86 756 94.24%

81 757

Planted Area (in hectares)

(1)

Total planted area of consolidated companies

(share of the Group) excluding PT Timbang Deli

and PT Melania.

(1) Actual planted hectares

421

SIPEF Integrated Annual Report 2024 Annex

Age Profile (in hectares)

OIL PALMS

YEAR TOLAN TIGA

GROUP

UMBUL MAS

WISESA GROUP

AGRO MUKO

GROUP

SOUTH SUMATRA

GROUP

HARGY OIL

PALMS

TOTAL

2024 1 280 658 2 256 1 796 597 6 586

2023 1 265 0 2 300 2 077 369 6 012

2022 647 0 1 052 2 021 875 4 596

2021 597 0 1 066 2 801 673 5 136

2020 0 0 114 3 003 63 3 180

2019 278 0 1 519 2 919 335 5 051

2018 303 0 1 067 2 536 547 4 452

2017 397 45 971 2 730 596 4 740

2016 327 180 396 2 597 219 3 720

2015 678 67 1 071 1 423 741 3 980

2014 709 0 1 012 778 1 386 3 886

2013 431 0 1 240 253 947 2 872

2012 748 202 1 504 0 1 628 4 082

2011 736 604 26 0 811 2 177

2010 625 1 411 347 0 619 3 002

2009 103 1 632 536 0 294 2 564

2008 396 1 823 223 0 239 2 681

2007 300 2 064 233 0 1 557 4 154

2006 508 280 779 0 896 2 463

2005 489 910 516 0 157 2 072

2004 116 0 730 0 0 846

2003 694 0 120 0 0 814

2002 233 0 63 0 0 296

2001 296 0 549 0 0 845

2000 302 0 725 0 0 1 027

1999 370 0 1 153 0 0 1 523

Before 1999 1 278 23 1 442 0 0 2 743

14 107 9 899 23 010 24 934 13 550 85 500

AVERAGE AGE 11.83 14.55 10.49 4.80 10.24 9.48

422 The connection to the world of sustainable tropical agriculture

2024 2023 2022 2021 2020

ACTIVITIES

Total own production of consolidated

companies (in tonnes)

palm oil 301 220 321 629 329 090 316 740 271 472

rubber 59 968 1 923 3 182 5 300

bananas 51 038 40 976 32 270 32 200 31 158

Average market price (USD/tonne) palm oil* 1 084 964 1 345 1 195 715

palm oil** 906 833 1 124 1 001 822

rubber*** 2 227 1 577 1 810 2 071 1 728

bananas**** 807 830 762 616 628

Own FFB production (in tonnes/ha) Indonesia 18.96 19.11 19.67 19.86 18.74

Papua New Guinea 22.88 29.85 33.43 28.51 21.16

Palm oil extraction rate (in %) Indonesia 22.42% 22.89% 23.09% 22.99% 22.79%

Papua New Guinea 23.50% 24.47% 25.33% 25.58% 24.64%

STOCK EXCHANGE SHARE PRICE IN EUR

Maximum 58.80 62.30 70.80 60.80 56.70

Minimum 48.40 51.30 52.70 43.85 38.00

Closing 31/12 56.80 53.00 58.90 56.90 43.20

Stock Exchange capitalisation at 31/12 (in KEUR) 600 906 560 704 623 122 601 964 457 027

RESULTS IN KUSD

Turnover 443 810 443 886 527 460 416 053 274 027

Gross profit 159 606 149 673 221 031 169 218 62 357

Operating result 104 105 107 978 178 312 139 416 30 778

Share of the group in the result 65 838 72 735 108 157 93 749 14 122

Cash ﬂow from operating activities after taxes 133 043 122 632 165 295 160 311 73 262

Free cash ﬂow 38 295 5 813 79 511 112 270 21 299

BALANCE SHEET IN KUSD

Operating fixed assets

(1)

778 571 751 674 696 645 667 267 670 637

Shareholders' equity 898 427 853 777 817 803 727 329 638 688

Net financial assets (+)/obligations (-) - 18 087 - 31 418 122 - 49 192 - 151 165

Investments in intangible and operating fixed assets

(1)

86 858 106 985 79 294 68 692 51 763

DATA PER SHARE IN USD

Number of shares 10 579 328 10 579 328 10 579 328 10 579 328 10 579 328

Number of own shares 162 016 180 000 178 933 178 000 160 000

Equity 86.24 82.10 78.63 69.93 61.30

Basic earnings per share

(2)

6.33 6.99 10.40 9.00 1.36

Cash ﬂow from operating activities after taxes

(2)

12.79 11.79 15.89 15.39 7.03

Free cash ﬂow

(2)

3.68 0.56 7.64 10.78 2.04

(1) Operating fixed assets = biological assets - bearer plants, other property, plant & equipment and investment property

(2) Denominator 2024 = weighted average number of shares issued (10 405 284 shares)

* Oilworld price data

** Bursa Malaysia Derivatives Exchange price data

*** World bank commodity price data

****CIRAD price data (in EUR)

Evolution of key data

over 5 years

423

SIPEF Integrated Annual Report 2024 Annex

SUSTAINABILITY CERTIFICATIONS

1. Sustainability standards and certification

PALM OIL OPERATIONS NUMBER OF MILLS AND KERNEL CRUSHING PLANTS 2024 2023

INDONESIA

RSPO & ISPO certified mills – Identity Preserved 5 5

RSPO & ISPO certified mills – Mass Balance 1 1

Uncertified mill ¹ 1 0

PAPUA NEW GUINEA

RSPO certified mills – Identity Preserved 3 3

RSPO certified kernel crushing plants – Segregation 2 2

:

(1) New palm oil mill in South Sumatra in 2024.

STANDARDS & CERTIFICATIONS

NUMBER OF CERTIFICATES PRODUCT 2024 2023

RSPO: Roundtable on Sustainable Palm Oil Palm oil 8 8

ISCC: International Sustainability and Carbon Certification Palm oil 4 4

ISPO: Indonesian Sustainable Palm Oil Palm oil 8 8

ISO 14001:2015 Palm oil 1 1

ISO 9001:2015 Palm oil 1 1

GLOBALG. A.P. Bananas 2 2

Rainforest Alliance² Bananas 2 3

Fairtrade Bananas 2 2

Sedex Bananas 1 1

TOTAL 29 30

:

(1) This data is not covered in the scope of CSRD limited assurance.

(2) Excluded certificate from tea operation from 2024 onwards.

2. RSPO and ISPO certification progress: palm

oil mills and kernel crushing plants

424 The connection to the world of sustainable tropical agriculture

3. RSPO certified area of oil palm operations

4. RSPO certified FFB volumes received in oil palm operations

OIL PALM OPERATIONS HECTARES 2024 2023

SIPEF GROUP

RSPO certified planted area – own plantations¹ 64 357 62 522

RSPO certified planted area – scheme smallholders 18 634 18 639

RSPO certified planted area – independent smallholders 60 60

TOTAL RSPO CERTIFIED PLANTED AREA 83 051 81 221

INDONESIA

RSPO certified planted area – own plantations² 50 808 48 972

RSPO certified planted area – scheme smallholders 3 827 3 832

RSPO certified planted area – independent smallholders 60 60

RSPO CERTIFIED PLANTED AREA 54 695 52 865

PAPUA NEW GUINEA

RSPO certified planted area – own plantations 13 550 13 550

RSPO certified planted area – scheme smallholders 14 807 14 807

RSPO CERTIFIED PLANTED AREA 28 356 28 356

:

(1) IAR2023 error corrected.

(2) The higher RSPO certified own planted area in Indonesia, was contributed by the new RSPO certified production unit in North Sumatra (CSM).

OIL PALM OPERATIONS TONNES 2024 2023

SIPEF GROUP

RSPO certified FFB – own plantations 1 181 902 1 219 857

RSPO certified FFB – scheme smallholders 229 540 252 378

RSPO certified FFB – independent smallholders 806 679

RSPO certified FFB – outgrower 7 703 7 672

TOTAL RSPO CERTIFIED FFB 1 419 950 1 480 586

INDONESIA

RSPO certified FFB – own plantations 897 117 852 517

RSPO certified FFB – scheme smallholders 27 574 19 964

RSPO certified FFB – independent smallholders 806 679

RSPO certified FFB – outgrower 7 703 7 672

RSPO CERTIFIED FFB 933 200 880 832

PAPUA NEW GUINEA

RSPO certified FFB – own plantations 284 785 367 340

RSPO certified FFB – scheme smallholders 201 965 232 414

RSPO CERTIFIED FFB 486 750 599 754

425

SIPEF Integrated Annual Report 2024 Annex

PALM OIL OPERATIONS TONNES 2024 2023

RSPO CERTIFIED CPO 314 924 348 297

Indonesia 200 563 201 534

Papua New Guinea 114 362 146 763

RSPO CERTIFIED PK 67 054 72 938

Indonesia 42 911 41 708

Papua New Guinea 24 143 31 230

RSPO CERTIFIED PKO 9 478 12 412

Indonesia 0 0

Papua New Guinea 9 478 12 412

ENERGY CONSUMPTION MWH 2024

SIPEF GROUP

A. NONRENEWABLE SOURCES MWh

1. Fuel consumption from coal and coal products 0

2. Fuel consumption from crude oil and petroleum products 98 999

3. Fuel consumption from natural gas 647

4. Fuel consumption from other fossil fuel sources 1 876

5. Purchased electricity, heat, steam and cooling from fossil fuel sources 13 172

TOTAL FOSSIL ENERGY CONSUMPTION 114 694

B. RENEWABLE SOURCES MWh

6. Fuel consumption for renewable sources, including biomass 32 787

7. Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources 0

8. The consumption of self-generated non-fuel renewable energy 0

TOTAL RENEWABLE ENERGY CONSUMPTION 32 787

9. Consumption from nuclear sources 0

TOTAL ENERGY CONSUMPTION MWh 147 481

Share of fossil sources in total energy consumption (%) 78%

Share of renewable sources in total energy consumption (%) 22%

Share of consumption from nuclear sources in total energy consumption (%) 0%

SIPEF net revenue (KUSD) ¹ 443 810

Energy intensity based on net revenue (MWh/KUSD) 0.33

:

(1) Refer to note 7:     .

5. RSPO certified CPO, PK, PKO volumes of oil palm operations

ENVIRONMENTAL INFORMATION

6. Energy: Total energy consumption

426 The connection to the world of sustainable tropical agriculture

GROSS GHG EMISSIONS 2024

SCOPE 1 GHG EMISSIONS tCO

e

Gross Scope 1 GHG emissions 1 090 257

Percentage of Scope 1 from regulated emissions trading schemes 0

SCOPE 2 GHG EMISSIONS tCO

e

Gross location-based Scope 2 GHG emissions 10 758

Gross market-based Scope 2 GHG emissions 10 758

SCOPE 3 GHG EMISSIONS tCO

e

1. Purchased goods and services 58 889

2. Capital goods 18 884

3. Fuel and energy-related activities 6 822

4. Upstream transportation and distribution 5 857

6. Business travelling 1 876

9. Downstream transportation 4 832

TOTAL GHG EMISSIONS tCO

e

Total GHG emissions (location-based)

1 198 175

Total GHG emissions (market-based)

1 198 175

BIOGENIC EMISSIONS OF CO

FROM THE COMBUSTION OR BIODEGRADATION OF BIOMASS tCO

e

529 807

SIPEF NET REVENUE KUSD¹

443 810

TOTAL GROSS GHG EMISSIONS INTENSITY BASED ON NET REVENUE tCO

e/KUSD

Total gross GHG emissions intensity based on net revenue (location-based) 2.7

Total gross GHG emissions intensity based on net revenue (market-based) 2.7

TOTAL GROSS GHG EMISSIONS BY CROP tCO

e/TONNE PRODUCT

Oil Palm (tCO

e/t CPO) 3.24

Bananas (tCO

e/t bananas) 0.47

:

(1) Refer to note 7:     .

GHG REMOVALS 2024

TOTAL GHG REMOVALS FROM OWN OPERATIONS tCO

e 324 019

7. Gross GHG emissions Scopes 1,2,3

8. GHG removals

427

SIPEF Integrated Annual Report 2024 Annex

9. Wastewater discharged quality

10. Air emission monitoring in palm oil mills

2024

PALM OIL MILL

POME

DISCHARGE DESTINATION

LEGAL

LIMITS BOD

MG/L

LEGAL

LIMITS COD

MG/L

LEGAL

LIMITS TSS

MG/L

BOD

EXCEEDED

LIMITS

COD

EXCEEDED

LIMITS

TSS

EXCEEDED

LIMITS

INDONESIA

Agro Muara Rupit Discharge into water body 100 350 250 0 0 0

Bunga Tanjung Discharge into water body 100 350 250 0 0 0

Mukomuko Discharge into water body 100 350 250 0 0 0

Dendymarker Indah Lestari Discharge into water body 100 350 250 0 0 0

Umbul Mas Wisesa Discharge into water body 100 350 250 0 0 0

Bukit Maradja Land application and use for

compost

5 000 N/A N/A 0 N/A N/A

Perlabian Land Application 5 000 N/A N/A 0 N/A N/A

PAPUA NEW GUINEA

Hargy Discharge into water body 100 N/A 500 0 0 1

Barema Land Application 4 000 N/A 1 000 0 0 2

Navo Land Application 4 000 N/A 1 000 0 0 3

CÔTE D I'VOIRE

Agboville Dam 150 500 50 0 0 0

Azaguié 2 Dam 150 500 50 0 0 0

Akoudié River 150 500 50 0 0 0

Azaguié 1 River 150 500 50 0 0 1

Lumen 1 River 150 500 50 1 1 0

Lumen 2 River 150 500 50 1 1 0

Motobé River 150 500 50 1 0 0

PALM OIL MILL LEGAL LIMIT 2024 EXCEEDED LIMITS

INDONESIA

Agro Muara Rupit Opacity <30% 0

Bunga Tanjung Opacity <30% 0

Mukomuko Opacity <30% 0

Dendymarker Indah Lestari Opacity <30% 0

Umbul Mas Wisesa Opacity <30% 0

Bukit Maradja Opacity <30% 0

Perlabian Opacity <30% 0

PAPUA NEW GUINEA

Hargy

< Ringelmann 2 (40%) opacity for more than 20% of the operating time

Barema 0

Navo 0

428 The connection to the world of sustainable tropical agriculture

11. Water management

12. Water usage intensity in palm oil mills

and banana operations by product

WATER MANAGEMENT 2024

PALM OIL PROCESSING m



Water consumption 914 966

Water recycled and re-used 504 545

Water stored 566 972

BANANA PLANTATIONS AND PACKING STATIONS m



Water consumption 10 322 188

Water recycled and re-used 46 524

Water stored 0

SIPEF GROUP m



Water consumption 11 237 154

Total net revenue (Million EUR) ¹ 411

Total water consumption intensity/net revenue (m

/million EUR) 27 341

:

(1) Refer to note 7:     

WATER USAGE INTENSITY TARGET 2024 2023

INDONESIA m

/TONNE FFB PROCESSED

Agro Muara Rupit palm oil mill ≤1 1.24 -

Bukit Maradja palm oil mill ≤1 0.90 0.89

Bunga Tanjung palm oil mill ≤1 0.81 0.50

Dendymarker Indah Lestari palm oil mill ≤1.5 0.95 0.99

Mukomuko palm oil mill ≤1 0.81 0.84

Perlabian palm oil mill ≤1 0.77 0.92

Umbul Mas Wisesa palm oil mill ≤1.5 1.35 1.35

PAPUA NEW GUINEA m

/TONNE FFB PROCESSED

Barema palm oil mill ≤1.3 1.06 0.94

Hargy palm oil mill ≤1.3 1.00 0.90

Navo palm oil mill ≤1.3 1.23 1.56

CÔTE D I'VOIRE m

/TONNE BANANA PRODUCTION

Estates and Packing Stations No target 212.85 178.12

429

SIPEF Integrated Annual Report 2024 Annex

15. Tree cover loss monitoring in own

concession and within supplier’s areas

COUNTRY/PROVINCE 2023

WITHIN COMPANY’S CONTROL WITHIN SUPPLIER’S AREAS

VERIFIED INCIDENTS

WITHIN COMPANY’S

CONTROL

AREAS IMPACTED

IN HECTARES

VERIFIED INCIDENTS

WITHIN SUPPLIER’S

AREAS

AREA IMPACTED

IN HECTARES

INDONESIA 1 6.6 0 0

North Sumatra 0 0 0 0

Bengkulu 0 0 0 0

South Sumatra 1 6.6 0 0

PAPUA NEW GUINEA 0 0 0 0

TOTAL 1 6.6 0 0

COUNTRY/PROVINCE 2024

WITHIN COMPANY’S CONTROL WITHIN SUPPLIER’S AREAS

VERIFIED INCIDENTS

WITHIN COMPANY’S

CONTROL

AREAS IMPACTED

IN HECTARES

VERIFIED INCIDENTS

WITHIN SUPPLIER’S

AREAS

AREA IMPACTED

IN HECTARES

INDONESIA 0 0 0 0

North Sumatra 0 0 0 0

Bengkulu 0 0 0 0

South Sumatra 0 0 0 0

PAPUA NEW GUINEA 0 0 0 0

TOTAL 0 0 0 0

13. Protection of own conservation areas

14. Monitoring of tree cover loss

AREAS MONITORED IN HECTARES 2024

SIPEF OWN CONCESSION SUPPLIERS’ AREAS TOTAL AREAS MONITORED

TOTAL 133 305 24 486 157 791

WITHIN SIPEF CONCESSIONS BY COUNTRY IN HECTARES 2024 2023

CONSERVATION AREAS HCV, HCS

Indonesia 9 478 9 737

Papua New Guinea 5 626 5 626

Côte d’Ivoire 216 216

TOTAL 15 320 15 577

430 The connection to the world of sustainable tropical agriculture

16. Monitoring of fire within own concessions

COUNTRY/PROVINCE 2024 2023

WITHIN OWN CONCESSIONS WITHIN OWN CONCESSIONS

HOTSPOTS VERIFIED

WITHIN COMPANY’S

CONTROL

AREAS IMPACTED

IN HECTARES

HOTSPOTS VERIFIED

WITHIN COMPANY’S

CONTROL

AREAS IMPACTED

IN HECTARES

INDONESIA 6 10.7 39 160.5

North Sumatra 0 0.0 0 0

Bengkulu 0 0.0 0 0

South Sumatra 6 10.7 39 160.5

PAPUA NEW GUINEA 1 0.01 0 0

TOTAL 7 10.71 39 160.5

18. SIPEF Biodiversity Indonesia

19. Coastal restoration programme

17. Fire Monitoring within supplier areas

COUNTRY/PROVINCE 2024 2023

WITHIN SUPPLIER AREAS WITHIN SUPPLIER AREAS

HOTSPOTS AREAS IMPACTED

IN HECTARES

HOTSPOTS AREAS IMPACTED

IN HECTARES

INDONESIA 1 10 4 0

North Sumatra 0 0 4 0

Bengkulu 0 0 0 0

South Sumatra 1 10 0 0

PAPUA NEW GUINEA 1 1 14 2.2

TOTAL 2 11 18 2.2

SBI BIODIVERSITY MONITORING AS AT 31 DECEMBER UNIT TARGET BY 2024 2024 2023

Degraded area restored hectares 256 286.44 224

Number of agroforestry growers engaged # of individuals 369 376 376

COUNTRY UNIT TARGET BY 2027 COASTAL RESTORATION 2024

Indonesia hectares 35 35 hectares of coastal buer will

be restored

Assisted natural regeneration in progress.

581 seedlings were planted within the

coastal buer zone in 2024.

Papua New Guinea hectares 6.5 Complete the planting of

mangrove of 6.5 hectares

Ongoing active mangrove planting within

the coastal buer zone. 796 seedlings

planted in 2024.

431

SIPEF Integrated Annual Report 2024 Annex

SOCIAL INFORMATION

20. Employees by gender

GENDER 2024 2023

Male 18 066 17 212

Female 6 138 5 846

Other 0 Not reported

Not Reported 0 Not reported

TOTAL 24 204 23 057

COUNTRY 2024 2023

Belgium 23 24

Côte d’Ivoire 2 640 2 483

Indonesia 16 856 15 547

Papua New Guinea 4 668 4 989

Singapore 17 14

TOTAL 24 204 23 057

CONTRACT TYPE 2024

FEMALE MALE OTHER NOT REPORTED TOTAL

SIPEF GROUP

Permanent 2 872 13 696 0 0 16 568

Temporary 3 266 4 370 0 0 7 636

TOTAL EMPLOYEES 6 138 18 066 0 0 24 204

21. Employees by country

22. Employees by contract type by gender per country

23. Employees turnover

SIPEF GROUP 2024

Total employees’ turnover 5 162

RATE OF EMPLOYEE TURNOVER 21%

432 The connection to the world of sustainable tropical agriculture

24. Employees by gender, per crop

25. Employees by contract type per crop

26. Collective bargaining coverage¹

CROP

2024 2023

FEMALE MALE TOTAL FEMALE MALE TOTAL

Oil Palm 4 616 14 981 19 597

No full breakdown provided in IAR2023,

total female and male in 2023 provided

for reference.

Bananas 822 1 818 2 640

Tea 678 1 249 1 927

Headquarter¹ 22 18 40

TOTAL 6 138 18 066 24 204 5 846 17 212 23 057

:

(1) Singapore and Belgium oces.

2024 2023

CROP PERMANENT TEMPORARY TOTAL PERMANENT

LONG TERM

CONTRACT TEMPORARY TOTAL

Oil Palm 14 016 5 581 19 597 13 575 3 993 839 18 407

Bananas 1 411 1 229 2 640 2 332 0 118 2 450

Tea 1 101 826 1 927

Not reported in IAR2023

Headquarter¹ 40 0 40

TOTAL 16 568 7 636 24 204 15 907 3 993 957 20 857

:

(1) Singapore and Belgium oces.

2024

COUNTRY COVERED TOTAL EMPLOYEES COVERED %

Indonesia 9 657 16 856 57%

Côte d’Ivoire 2 640 2 640 100%

Belgium 19 23 83%

Singapore 0 17 0%

Papua New Guinea 0 4 668 0%

SIPEF GROUP 12 316 24 204 51%

:

(1) Others that are not covered by collective bargaining agreements are covered by contractual agreements.

433

SIPEF Integrated Annual Report 2024 Annex

27. Gender diversity of board of directors per country

28. Gender diversity of executive committee members per country

29. Distribution of employees by age group

30. Amenities provided

2024

COUNTRY FEMALE MALE TOTAL FEMALE % MALE %

Belgium 4 7 11 36% 64%

Indonesia 1 6 7 14% 86%

Singapore 1 2 3 33% 67%

Papua New Guinea 1 2 3 33% 67%

Côte d’Ivoire 0 5 5 0% 100%

2024

COUNTRY FEMALE MALE TOTAL FEMALE % MALE %

Belgium 1 3 4 25% 75%

Indonesia 3 20 23 13% 87%

Papua New Guinea 1 7 8 12.5% 87.5%

Côte d’Ivoire 0 4 4 0% 100%

Singapore No executive committee

2024

COUNTRY < 30 YEARS 30  50 YEARS > 50 YEARS TOTAL

Belgium 2 14 7 23

Indonesia 4 266 11 441 1 149 16 856

Papua New Guinea 1 053 3 245 370 4 668

Côte d’Ivoire 887 1 556 197 2 640

Singapore 0 12 5 17

TOTAL 6 208 16 268 1 728 24 204

AMENITIES PROVIDED¹ UNIT 2024 2023

Housing # unit of house 12 135 11 828

Schools established by SIPEF² # school 50 45

Clinics provided by SIPEF³ # clinic 47 45

Day care facilities provided by SIPEF

# day care 43 42

:

(1) This data is not covered in the scope of CSRD limited assurance.

(2) In 2024, five new schools built in Indonesia.

(3) In 2024, one clinic in Côte d’Ivoire, built in 2023, is still not operational and is therefore excluded from the total clinic count. Meanwhile, three new clinics

opened in Indonesia.

(4) In 2024, a new daycare was established in Côte d’Ivoire.

434 The connection to the world of sustainable tropical agriculture

31. Training hours

32. Safety data and Lost Time Injury Frequency Rate (LTIFR)

33. Gender pay gap

2024

COUNTRY

TRAINING HOURS

FEMALE

TRAINING HOURS

MALE

AVERAGE TRAINING

HOURS FEMALE

AVERAGE TRAINING

HOURS MALE

Belgium 169 180 10.56 25.71

Indonesia 5 527 19 810 1.30 1.57

Papua New Guinea 3 718 16 184 3.59 4.46

Côte d’Ivoire 4 320 9 603 5.26 5.28

Singapore ¹ 0 0 0 0

TOTAL 13 734 45 777 2.24 2.54

:

(1) Training hours for Singapore oce and Cibuni Tea Estate are not available for 2024.

2024

COUNTRY

UNIT

CÔTE

D’IVOIRE INDONESIA

PAPUA NEW

GUINEA SIPEF GROUP

Fatalities - work-related accidents # cases - - - -

Lost time injury - work-related accidents # cases 53 135 189 377

Lost work days - work-related accidents # days 179 826 456 1461

Total hours worked # hours 6 919 968 32 052 804 11 572 704 50 545 476

COUNTRY¹ BASELINE YEAR TARGET LTIFR FY2027 2024 2023

Côte d’Ivoire 2024 6.75 7.66 6.13

Papua New Guinea 2024 6.24 16.33 24.90

Indonesia 2023 3.97 4.20 4.34

Singapore

Not available

Belgium

:

(1) Safety data and LTIFR are not tracked for Singapore and Belgium, as these locations consist only of administrative oces.

COUNTRY CURRENCY 2024 GENDER PAY GAP %

Belgium EUR 52%

Singapore SGD 62%

Indonesia IDR 12%

Papua New Guinea PGK 13%

Côte d’Ivoire XOF 33%

435

SIPEF Integrated Annual Report 2024 Annex

34. Remuneration ratio

COUNTRY CURRENCY 2024 ANNUAL TOTAL REMUNERATION RATIO

Belgium EUR 8.80

Singapore SGD 5.26

Indonesia IDR 187.21

Papua New Guinea PGK 145.27

Côte d’Ivoire XOF 189.74

35. Incidents of discrimination including harassment

36. Incidents of severe human rights

2024

COUNTRY

# WORKRELATED INCIDENTS OF

DISCRIMINATION AND HARASSMENT

REPORTED NUMBER OF CASES

AMOUNT OF FINES, PENALTIES,

AND COMPENSATION USD

SIPEF group 0 0

2024

COUNTRY

INCIDENTS OF SEVERE HUMAN RIGHTS

NUMBER OF CASES

AMOUNT OF FINES, PENALTIES,

AND COMPENSATION USD

SIPEF group 0 0

2024 2023

SMALLHOLDER

PROGRAMMES

NUMBER

OF SMALL

HOLDERS

NUMBER

OF RSPO

CERTIFIED

SMALL

HOLDERS

PLANTED

AREA

HECTARES

RSPO

CERTIFIED

PLANTED

AREA

HECTARES

NUMBER

OF SMALL

HOLDERS

NUMBER

OF RSPO

CERTIFIED

SMALL

HOLDERS

PLANTED

AREA

HECTARES

RSPO

CERTIFIED

PLANTED

AREA

HECTARES

SIPEF scheme smallholders

5 511 4 879 21 003 18 634 5 510 4 878 21 059 18 639

INDONESIA 1 865 1 233 6 196 3 827 1 864 1 232 6 253 3 832

Smallholder cooperative

(Koperasi)

1 815 1 183 5 611 3 243 1 814 1 182 5 666 3 245

Village smallholders

(Kebun Masyarakat Desa)

50 50 585 585 50 50 587 587

PAPUA NEW GUINEA 3 646 3 646 14 807 14 807 3 646 3 646 14 807 14 807

Associated smallholders 3 646 3 646 14 807 14 807 3 646 3 646 14 807 14 807

:

(1) The number of village smallholders has been updated to follow the group-based classification instead of individual counts.

37. Workers in the value chain: scheme smallholders’ programme

436 The connection to the world of sustainable tropical agriculture

2024 2023

SMALLHOLDER

PROGRAMMES

NUMBER

SMALLHOLDERS

NUMBER OF

RSPO CERTIFIED

SMALLHOLDERS

RSPO CERTIFIED

PLANTED AREA

HECTARES

NUMBER OF

SMALLHOLDERS

NUMBER OF

RSPO CERTIFIED

SMALLHOLDERS

RSPO CERTIFIED

PLANTED AREA

HECTARES

SIPEF’S INDEPENDENT SMALLHOLDERS SUPPLYING TO SIPEF¹

INDONESIA

Independent smallholders

29 29 60 29 30 60

:

(1) The scope of the independent smallholders is updated to those who are supplying to SIPEF palm oil mills only.

38. Workers in the value chain: independent smallholders’ programme

GOVERNANCE

39. ACAB training

ACAB TRAINING ATRISK FUNCTIONS OTHER OWN WORKERS¹

TRAINING COVERAGE

Total employees received training 478 68

DELIVERY METHOD AND DURATION

Average hours of in-person and online training 2.5 2.5

FREQUENCY

How often the training is required Annually Annually

TOPICS COVERED

Definition of corruption x x

Policy x x

Procedures on suspicion/ detection of corruption x x

Relevant laws and penalties x x

Other x x

:

(1) Other own workers may include managers and administrative, management and supervisory body.

ACAB INCIDENTS

NUMBER OF

CONVICTIONS

AMOUNT OF FINES FOR

VIOLATION

ANY ACTIONS TAKEN TO ADDRESS BREACHES

IN PROCEDURES AND STANDARDS OF

ANTICORRUPTION AND ANTIBRIBERY

SIPEF group 0 0 None

40. Corruption and Bribery Incidents

437

SIPEF Integrated Annual Report 2024 Annex

Annex 3

EU Taxonomy - Accounting policies

The assessment of the Taxonomy-eligibility and

Taxonomy-non-eligibility of SIPEF’s Turnover, Capex,

and Opex was carried out in accordance with the

specifications and definitions set out in Annex I of the

Art. 8 Delegated Act. The accounting policies utilised

in this process are described as follows:

Capex KPI

The Capex KPI is defined as Taxonomy-eligible

Capex (numerator) divided by the Group’s total

Capex (denominator). Regarding the numerator,

an explanation is provided below.

Total Capex consists of additions to tangible

and intangible fixed assets during the financial

year, before depreciation, amortisation, and any

re-measurements, including those resulting from

revaluations and impairments, as well as excluding

changes in fair value. It includes additions to fixed

assets (IAS 16), intangible assets (IAS 38) and right-

of-use assets (IFRS 16). Additions resulting from

business combinations are also included (but this

is not applicable in 2024). Goodwill is not includ-

ed in Capex as it is not defined as an intangible

asset in accordance with IAS 38. Further details

on the accounting policies regarding the Group’s

Capex can be found in the consolidated financial

statements.

Reconciliation

The Group’s total Capex can be reconciled to the

consolidated financial statements as the total of

acquisition of intangible assets, acquisition of bio-

logical assets and acquisition of property, plant and

equipment in the consolidated cash ﬂow.

Turnover KPI

The proportion of Taxonomy-eligible economic

activities in the Group’s total turnover has been

calculated as the part of net turnover derived from

products and services associated with Taxonomy-

eligible economic activities (numerator) divided by

the net turnover (denominator). The denominator

of the turnover KPI is based on the Group’s con-

solidated net turnover in accordance with IAS 1

.82(a). Further details on the Group’s accounting

policies regarding the Group’s consolidated net

turnover, can be found in the consolidated financial

statements.

With regard to the numerator, SIPEF has not iden-

tified any Taxonomy-eligible activities as explained

above.

Reconciliation

The Group’s consolidated net turnover can be rec-

onciled to the consolidated financial statements,

in the income statement (Financial Statements

– ‘revenue’).

438

The connection to the world of sustainable tropical agriculture

Opex KPI

The Opex KPI is defined as Taxonomy-eligible Opex

(numerator) divided by the total Opex (denomina-

tor). Regarding the numerator, an explanation is

provided below.

Total Opex consists of direct non-capitalised costs

that relate to research and development, building

renovation measures, short-term lease, mainte-

nance and repair, and any other direct expenditures

relating to the day-to-day servicing of assets of

property, plant and equipment.

This includes:

 Research and development expenditure, which

is not applicable to the SIPEF group. Although

the SIPEF group does have research and

development expenditures concentrated in its

minority subsidiaries Verdant Bioscience Pte Ltd

and PT Timbang Deli, which are included in the

consolidation as equity consolidated companies

and are not included in the Opex calculation.

 The volume of non-capitalised leases, which

was determined in accordance with IFRS 16

and includes expenses for short-term leases and

low-value leases. Further information can be

found in the note on leasing of the consolidated

financial statements.

 Maintenance and repair and other direct

expenditures relating to the day-to-day servicing

of assets of property, plant and equipment and

biological assets (bearer plants). These were

determined based on the maintenance and

repair costs allocated to the respective assets.

The maintenance of the biological assets

- bearer plants contain all costs related to

keeping the biological assets (bearer plants) in

a good productive state. Primary examples of

this include all expenses linked with fertiliser

application, pruning, pest and disease control.

The related cost items can be found in various line

items in the Group’s income statement, including

the cost of sales (maintenance of operational PP&E

and biological assets – bearer plants) and general

and administrative expenses (such as maintenance

of IT systems), if applicable.

In general, these costs include labour costs, costs

for services, and material costs for daily servicing as

well as for regular and unplanned maintenance and

repair measures. These costs are directly allocated

to property, plant and equipment.

As the SIPEF group has not identified Taxonomy-

eligible economic activities, the Group does not

record Capex/Opex-related assets or processes that

are associated with Taxonomy-eligible economic

activities in the numerator of the Capex KPI and

the Opex.

439

SIPEF Integrated Annual Report 2024 Annex

FINANCIAL YEAR 2024 SUBSTANTIAL CONTRIBUTION CRITERIA DNSH CRITERIA DOES NOT SIGNIFICANTLY HARM

ECONOMIC ACTIVITIES

1

CODE

2

TURNOVER

3

PROPORTION OF

TURNOVER, YEAR N

4

CLIMATE CHANGE

MITIGATION

5

CLIMATE CHANGE

ADAPTATION

6

WATER

7

POLLUTION

8

CIRCULAR

ECONOMY

9

BIODIVERSITY

10

CLIMATE CHANGE

MITIGATION

11

CLIMATE CHANGE

ADAPTATION

12

WATER

13

POLLUTION

14

CIRCULAR

ECONOMY

15

BIODIVERSITY

16

MINIMUM

SAFEGUARD

17

PROPORTION OF

TAXONOMYALIGNED

A.1. OR ELIGIBLE

A.2. TURNOVER,

YEAR N1

18

CATEGORY

ENABLING

ACTIVITY

19

CATEGORY

TRANSITIONAL

ACTIVITY

20

USD % Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T

A. TAXONOMYELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

N/A 0 0% N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A N/A 0% - -

Turnover of environmentally sustainable activities

(Taxonomy-aligned) (A.1.)

0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% - -

Of which Enabling 0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% E -

Of which Transitional 0 0% 0% - - - - - N/A N/A N/A N/A N/A N/A N/A 0% - T

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL

Electricity generation from bioenergy CCM 4.8 85 832 0% EL N/EL N/EL N/EL N/EL N/EL

- - - - - - - 0% - -

Turnover of Taxonomy- eligible but not

environmentally sustainable activities (not

Taxonomy-aligned activities) (A.2.)

85 832 0% 0% 0% 0% 0% 0% 0%

- - - - - - - 0% - -

A. TURNOVER OF TAXONOMY ELIGIBLE

ACTIVITIES A.1+A.2

85 832 0% 0% 0% 0% 0% 0% 0%        0%  

B. TURNOVER OF TAXONOMYNONELIGIBLE

ACTIVITIES

443 724 505 100%

TOTAL A+B 443 810 377 100%

PROPORTION OF TURNOVER/

TOTAL TURNOVER PER OBJECTIVE

TAXONOMYALIGNED

PER OBJECTIVE

TAXONOMYELIGIBLE

PER OBJECTIVE

Climate Change Mitigation (CCM)

0% 0%

Climate Change Adaptation (CCA)

0% 0%

Water and Marine Resources (WTR)

0% 0%

Pollution Prevention and Control (PPC)

0% 0%

Circular Economy (CE)

0% 0%

Biodiversity and Ecosystems (BIO)

0% 0%

Turnover

Y: Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective

N: No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective

EL: Eligible, Taxonomy-eligible activity for the relevant environmental objective

N/EL: Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective

440 The connection to the world of sustainable tropical agriculture

FINANCIAL YEAR 2024 SUBSTANTIAL CONTRIBUTION CRITERIA DNSH CRITERIA DOES NOT SIGNIFICANTLY HARM

ECONOMIC ACTIVITIES

1

CODE

2

TURNOVER

3

PROPORTION OF

TURNOVER, YEAR N

4

CLIMATE CHANGE

MITIGATION

5

CLIMATE CHANGE

ADAPTATION

6

WATER

7

POLLUTION

8

CIRCULAR

ECONOMY

9

BIODIVERSITY

10

CLIMATE CHANGE

MITIGATION

11

CLIMATE CHANGE

ADAPTATION

12

WATER

13

POLLUTION

14

CIRCULAR

ECONOMY

15

BIODIVERSITY

16

MINIMUM

SAFEGUARD

17

PROPORTION OF

TAXONOMYALIGNED

A.1. OR ELIGIBLE

A.2. TURNOVER,

YEAR N1

18

CATEGORY

ENABLING

ACTIVITY

19

CATEGORY

TRANSITIONAL

ACTIVITY

20

USD % Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T

A. TAXONOMYELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

N/A 0 0% N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A N/A 0% - -

Turnover of environmentally sustainable activities

(Taxonomy-aligned) (A.1.)

0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% - -

Of which Enabling 0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% E -

Of which Transitional 0 0% 0% - - - - - N/A N/A N/A N/A N/A N/A N/A 0% - T

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL

Electricity generation from bioenergy CCM 4.8 85 832 0% EL N/EL N/EL N/EL N/EL N/EL

- - - - - - - 0% - -

Turnover of Taxonomy- eligible but not

environmentally sustainable activities (not

Taxonomy-aligned activities) (A.2.)

85 832 0% 0% 0% 0% 0% 0% 0%

- - - - - - - 0% - -

A. TURNOVER OF TAXONOMY ELIGIBLE

ACTIVITIES A.1+A.2

85 832 0% 0% 0% 0% 0% 0% 0%        0%  

B. TURNOVER OF TAXONOMYNONELIGIBLE

ACTIVITIES

443 724 505 100%

TOTAL A+B 443 810 377 100%

441

SIPEF Integrated Annual Report 2024 Annex

Capital Expenditure (Capex)

PROPORTION OF CAPEX/

TOTAL CAPEX PER OBJECTIVE

TAXONOMYALIGNED

PER OBJECTIVE

TAXONOMYELIGIBLE

PER OBJECTIVE

Climate Change Mitigation (CCM)

0% 2.9%

Climate Change Adaptation (CCA)

0% 0%

Water and Marine Resources (WTR)

0% 0%

Pollution Prevention and Control (PPC)

0% 0%

Circular Economy (CE)

0% 0%

Biodiversity and Ecosystems (BIO)

0% 0%

FINANCIAL YEAR 2024 SUBSTANTIAL CONTRIBUTION CRITERIA DNSH CRITERIA DOES NOT SIGNIFICANTLY HARM

ECONOMIC ACTIVITIES

1

CODE

2

CAPEX

3

PROPORTION OF

CAPEX, YEAR N

4

CLIMATE CHANGE

MITIGATION

5

CLIMATE CHANGE

ADAPTATION

6

WATER

7

POLLUTION

8

CIRCULAR

ECONOMY

9

BIODIVERSITY

10

CLIMATE CHANGE

MITIGATION

11

CLIMATE CHANGE

ADAPTATION

12

WATER

13

POLLUTION

14

CIRCULAR

ECONOMY

15

BIODIVERSITY

16

MINIMUM

SAFEGUARD

17

PROPORTION OF

TAXONOMYALIGNED

A.1. OR ELIGIBLE

A.2. CAPEX,

YEAR N1

18

CATEGORY

ENABLING

ACTIVITY

19

CATEGORY

TRANSITIONAL

ACTIVITY

20

USD % Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T

A. TAXONOMYELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

N/A 0 0% N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A N/A 0% - -

Capex of environmentally sustainable activities

(Taxonomy-aligned) (A.1.)

0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% - -

Of which Enabling 0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% E -

Of which Transitional 0 0% 0% - - - - - N/A N/A N/A N/A N/A N/A N/A 0% - T

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL

Electricity generation from bioenergy CCM 4.8 2 513 010 2.9% EL N/EL N/EL N/EL N/EL N/EL

- - - - - - - 0% - -

Capex of Taxonomy- eligible but not environmentally

sustainable activities (not Taxonomy-aligned

activities) (A.2.)

2 513 010 2.9% 2.9% 0% 0% 0% 0% 0%

- - - - - - - 0% - -

A. CAPEX OF TAXONOMY ELIGIBLE ACTIVITIES

A.1+A.2

2 513 010 2.9% 2.9% 0% 0% 0% 0% 0%        0%  

B. CAPEX OF TAXONOMYNONELIGIBLE

ACTIVITIES

84 344 644 97.1%

TOTAL A+B 86 857 654 100%

Y: Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective

N: No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective

EL: Eligible, Taxonomy-eligible activity for the relevant environmental objective

N/EL: Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective

442 The connection to the world of sustainable tropical agriculture

FINANCIAL YEAR 2024 SUBSTANTIAL CONTRIBUTION CRITERIA DNSH CRITERIA DOES NOT SIGNIFICANTLY HARM

ECONOMIC ACTIVITIES

1

CODE

2

CAPEX

3

PROPORTION OF

CAPEX, YEAR N

4

CLIMATE CHANGE

MITIGATION

5

CLIMATE CHANGE

ADAPTATION

6

WATER

7

POLLUTION

8

CIRCULAR

ECONOMY

9

BIODIVERSITY

10

CLIMATE CHANGE

MITIGATION

11

CLIMATE CHANGE

ADAPTATION

12

WATER

13

POLLUTION

14

CIRCULAR

ECONOMY

15

BIODIVERSITY

16

MINIMUM

SAFEGUARD

17

PROPORTION OF

TAXONOMYALIGNED

A.1. OR ELIGIBLE

A.2. CAPEX,

YEAR N1

18

CATEGORY

ENABLING

ACTIVITY

19

CATEGORY

TRANSITIONAL

ACTIVITY

20

USD % Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T

A. TAXONOMYELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

N/A 0 0% N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A N/A 0% - -

Capex of environmentally sustainable activities

(Taxonomy-aligned) (A.1.)

0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% - -

Of which Enabling 0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% E -

Of which Transitional 0 0% 0% - - - - - N/A N/A N/A N/A N/A N/A N/A 0% - T

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL

Electricity generation from bioenergy CCM 4.8 2 513 010 2.9% EL N/EL N/EL N/EL N/EL N/EL

- - - - - - - 0% - -

Capex of Taxonomy- eligible but not environmentally

sustainable activities (not Taxonomy-aligned

activities) (A.2.)

2 513 010 2.9% 2.9% 0% 0% 0% 0% 0%

- - - - - - - 0% - -

A. CAPEX OF TAXONOMY ELIGIBLE ACTIVITIES

A.1+A.2

2 513 010 2.9% 2.9% 0% 0% 0% 0% 0%        0%  

B. CAPEX OF TAXONOMYNONELIGIBLE

ACTIVITIES

84 344 644 97.1%

TOTAL A+B 86 857 654 100%

443

SIPEF Integrated Annual Report 2024 Annex

Operating Expenditure (Opex)

PROPORTION OF OPEX/

TOTAL OPEX PER OBJECTIVE

TAXONOMYALIGNED

PER OBJECTIVE

TAXONOMYELIGIBLE

PER OBJECTIVE

Climate Change Mitigation (CCM)

0% 0%

Climate Change Adaptation (CCA)

0% 0%

Water and Marine Resources (WTR)

0% 0%

Pollution Prevention and Control (PPC)

0% 0%

Circular Economy (CE)

0% 0%

Biodiversity and Ecosystems (BIO)

0% 0%

FINANCIAL YEAR 2024 SUBSTANTIAL CONTRIBUTION CRITERIA DNSH CRITERIA DOES NOT SIGNIFICANTLY HARM

ECONOMIC ACTIVITIES

1

CODE

2

OPEX

3

PROPORTION OF

OPEX, YEAR N

4

CLIMATE CHANGE

MITIGATION

5

CLIMATE CHANGE

ADAPTATION

6

WATER

7

POLLUTION

8

CIRCULAR

ECONOMY

9

BIODIVERSITY

10

CLIMATE CHANGE

MITIGATION

11

CLIMATE CHANGE

ADAPTATION

12

WATER

13

POLLUTION

14

CIRCULAR

ECONOMY

15

BIODIVERSITY

16

MINIMUM

SAFEGUARD

17

PROPORTION OF

TAXONOMYALIGNED

A.1. OR ELIGIBLE

A.2. OPEX,

YEAR N1

18

CATEGORY

ENABLING

ACTIVITY

19

CATEGORY

TRANSITIONAL

ACTIVITY

20

USD % Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T

A. TAXONOMYELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

N/A 0 0% N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A N/A 0% - -

Opex of environmentally sustainable activities

(Taxonomy-aligned) (A.1.)

0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% - -

Of which Enabling 0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% E -

Of which Transitional 0 0% 0% - - - - - N/A N/A N/A N/A N/A N/A N/A 0% - T

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL

N/A 0 0% N/A N/A N/A N/A N/A N/A

- - - - - - - 0% - -

Opex of Taxonomy- eligible but not environmentally

sustainable activities (not Taxonomy-aligned

activities) (A.2.)

0 0% 0% 0% 0% 0% 0% 0%

- - - - - - - 0% - -

A. OPEX OF TAXONOMY ELIGIBLE ACTIVITIES

A.1+A.2

0 0% 0% 0% 0% 0% 0% 0%        0%  

B. OPEX OF TAXONOMYNONELIGIBLE

ACTIVITIES

48 449 962 100%

TOTAL A+B 48 449 962 100%

Y: Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective

N: No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective

EL: Eligible, Taxonomy-eligible activity for the relevant environmental objective

N/EL: Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective

444 The connection to the world of sustainable tropical agriculture

FINANCIAL YEAR 2024 SUBSTANTIAL CONTRIBUTION CRITERIA DNSH CRITERIA DOES NOT SIGNIFICANTLY HARM

ECONOMIC ACTIVITIES

1

CODE

2

OPEX

3

PROPORTION OF

OPEX, YEAR N

4

CLIMATE CHANGE

MITIGATION

5

CLIMATE CHANGE

ADAPTATION

6

WATER

7

POLLUTION

8

CIRCULAR

ECONOMY

9

BIODIVERSITY

10

CLIMATE CHANGE

MITIGATION

11

CLIMATE CHANGE

ADAPTATION

12

WATER

13

POLLUTION

14

CIRCULAR

ECONOMY

15

BIODIVERSITY

16

MINIMUM

SAFEGUARD

17

PROPORTION OF

TAXONOMYALIGNED

A.1. OR ELIGIBLE

A.2. OPEX,

YEAR N1

18

CATEGORY

ENABLING

ACTIVITY

19

CATEGORY

TRANSITIONAL

ACTIVITY

20

USD % Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y;N;

N/EL

Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T

A. TAXONOMYELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

N/A 0 0% N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A N/A 0% - -

Opex of environmentally sustainable activities

(Taxonomy-aligned) (A.1.)

0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% - -

Of which Enabling 0 0% 0% 0% 0% 0% 0% 0% N/A N/A N/A N/A N/A N/A N/A 0% E -

Of which Transitional 0 0% 0% - - - - - N/A N/A N/A N/A N/A N/A N/A 0% - T

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL

N/A 0 0% N/A N/A N/A N/A N/A N/A

- - - - - - - 0% - -

Opex of Taxonomy- eligible but not environmentally

sustainable activities (not Taxonomy-aligned

activities) (A.2.)

0 0% 0% 0% 0% 0% 0% 0%

- - - - - - - 0% - -

A. OPEX OF TAXONOMY ELIGIBLE ACTIVITIES

A.1+A.2

0 0% 0% 0% 0% 0% 0% 0%        0%  

B. OPEX OF TAXONOMYNONELIGIBLE

ACTIVITIES

48 449 962 100%

TOTAL A+B 48 449 962 100%

445

SIPEF Integrated Annual Report 2024 Annex

Annex 4 – General basis

for preparation of the

Sustainability Statement

This report has been prepared in accordance with the

Corporate Sustainability Reporting Directive (CSRD),

following the requirements set out by the European

Sustainability Reporting Standards (ESRS) issued by

the European Commission, and covers SIPEF’s sustain-

ability performance for the period of 1 January to 31

December 2024.

Sustainability data methodologies overview

Sustainability data is collected from SIPEF’s oper-

ating units and oces across Indonesia, Papua New

Guinea, Côte d’Ivoire, Belgium, and Singapore.

Where precise data is unavailable, reasonable

assumptions, estimates, and management judgment

have been applied, which may introduce a degree of

uncertainty. Most data is based on internal records

and primary sources. Details on methodologies,

assumptions, and uncertainties are provided along-

side the relevant disclosures and further elaborated

in Annexes 1 and 2.

No metrics included in this report have been vali-

dated by an external body other than the appointed

assurance provider. SIPEF is committed to contin-

uously improving the quality and transparency of

its sustainability reporting to provide a true and

fair view of its impacts and performance.

  

At SIPEF, value chain estimations are applied to

Scope 3 GHG emissions. For more information,

please refer to the E1: Climate change section of

this report.

Information on intellectual property

SIPEF group has not used the option to omit infor-

mation corresponding to intellectual property. No

information on intellectual property, know-how,

or the results of innovation was omitted in the

Sustainability statement.

Information on matters in the

course of negotiation

SIPEF did not apply the exemption from disclosing

impending developments or matters in course of

negotiation, as provided for in Articles 19a(3) and

29a(3) of Directive 2013/34/EU.

446

The connection to the world of sustainable tropical agriculture

    

SIPEF acknowledges that Scope 3 GHG emissions

are subject to a high level of measurement uncer-

tainty due to the complexity of value chain emis-

sions and limited access to reliable upstream and

downstream data. To address this, SIPEF applies

the following estimation methods:

 Activity-based estimation using emission factors

from internationally recognised sources such

as the IPCC and EPA, where activity data is

available.

 Where detailed activity data is not accessible,

spend-based methods are used, relying on

financial data to estimate emissions.

 Materiality thresholds are applied to determine

which Scope 3 categories are included,

particularly where emissions are likely to

be immaterial or data is highly uncertain or

unverifiable.

For more information, please refer to the E1:

Climate change section of this report.

  

Any changes in the preparation or presentation of

sustainability information, or corrections of report-

ing errors from prior periods, are clearly addressed

alongside the relevant disclosure requirements and

detailed in Annexes 1 and 2.

NO. TOPIC METRIC METHODOLOGIES AND ASSUMPTIONS

1. Certification RSPO, ISPO Certification figures are based on the active RSPO and ISPO certification status as of

December 2024. They include the classification of supply chain models in accordance

with RSPO definitions (i.e., Identity Preserved, Segregation, and Mass Balance). Planted

areas are determined from the hectarage statement for the same reporting period.

The volumes of RSPO-certified Fresh Fruit Bunches (FFB) and certified products—

including Crude Palm Oil (CPO), Palm Kernel (PK), and Palm Kernel Oil (PKO)—are

calculated using actual production data as of December 2024.

2. Climate Energy SIPEF’s energy use in its own operations contributes to its Scope 1 and Scope 2

emissions, and includes energy from both non-renewable sources (such as fossil fuels

and electricity) and renewable sources (such as biomass). In palm oil mills, biomass

combustion involves the use of by-product materials such as fibre, shell, and wood as fuel

sources.

Energy intensity (MWh/KUSD) is calculated by dividing total energy consumption by

net revenue (in thousand USD).

447

SIPEF Integrated Annual Report 2024 Annex

NO. TOPIC METRIC METHODOLOGIES AND ASSUMPTIONS

3. Climate GHG gross

emissions

Scope 1:

Direct emissions originating from SIPEF-owned and managed plantations, mills,

packing stations, and oces. These emissions result from land use change, palm oil mill

euent (POME), and the use of various inputs, including fertilisers, fuels, chemicals,

lubricants, and refrigerants.

Scope 2:

Indirect emissions from the energy purchased externally from the national grid

according to the Group’s location-based approach. The Group currently reports Scope 2

emissions using the location-based method, and uses this as a proxy to estimate mar

ket-based emissions.

Scope 3:

Indirect emissions from upstream and downstream activities within SIPEF’s value

chain. These are reported under the following categories: Category 1 – Purchased

goods and services, Category 2 – Capital goods, Category 3 – Fuel- and energy-related

activities, Category 4 – Upstream transportation and distribution, Category 6 – Business

travel, Category 9 – Downstream transportation and distribution. Categories 1, 2, and

6 are calculated using a spend-based approach, while Categories 3, 4, and 9 are based on

activity-based emissions calculations.

As part of SIPEF’s Scope 3 GHG inventory assessment, the following categories have

been excluded from current reporting. These exclusions are based on an evaluation of

materiality, data availability, operational control, and business relevance.

• Excluded due to immaterial impact on total emissions: Category 5 - Waste generated in

operations, Category 7 - Employee commuting and Category 15 – Investments.

• Excluded due to lack of visibility and control over product use. These categories relate

to emissions from downstream activities, where SIPEF has no visibility or inﬂuence

over how sold intermediate products are processed, used, or disposed of. Given the

wide range of potential applications, each with dierent emissions profiles, accurate

estimation is currently unfeasible: Category 10 - Processing of sold products, Category

11- Use of sold products and Category 12 - End-of-life treatment of sold products.

• Excluded due to non-relevance to SIPEF’s business activities: Category 8 - Upstream

leased assets, Category 13 - Downstream leased assets, Category 14 – Franchises.

GHG emissions intensity

• Per net revenue: Total GHG emissions expressed as tonnes of CO equivalent per

thousand USD of net revenue (tCOe/KUSD).

• Per product: Total GHG emissions per unit of product (e.g. per tonne of palm oil,

bananas), showing the carbon footprint of each product.

4. GHG removals Carbon removals from conservation and reserve areas are calculated based on plant

growth and annual sequestration per hectare.

5. Climate change

adaptation

Coastal restoration programmes in Indonesia and Papua New Guinea are implemented

to address potential water-related risks by restoring coastal buer zones within SIPEF’s

own operations.

448 The connection to the world of sustainable tropical agriculture

NO. TOPIC METRIC METHODOLOGIES AND ASSUMPTIONS

6. Pollution Water discharged Water quality is monitored via Biological Oxygen Demand (BOD), Chemical Oxygen

Demand (COD), and Total Suspended Solids (TSS), measured in milligrams per litre

(mg/L). Sampling is carried out at mills on a monthly basis, and at banana packing

stations twice yearly, with testing conducted by an external laboratory.

7. Air emissions Indonesia mills use opacity monitoring (≤30%), and the mills in Papua New Guinea use

the Ringelmann Index (≤2 for ≤20% of time). Parameters are verified through regular

external and government inspections.

8. Water Water

management

Banana production has the highest water use due to irrigation requirements, whereas

oil palm cultivation primarily relies on rainfall. In Côte d'Ivoire, water sources include

rainfall, rivers, dams, and wells. Water from banana packing stations is either reused

for irrigation or safely discharged. In 2024, due to the diculty of accurately measuring

water use by banana plants, all water withdrawn is considered fully consumed.

Palm oil mills source water from rivers or boreholes, and some facilities reuse treated

POME or discharge it in compliance with regulatory requirements.

Water consumption is calculated as the dierence between total water withdrawal and

discharge. Water use per product is expressed as water withdrawal per tonne of FFB or

bananas.

9. Biodiversity Conservation areas Conservation areas are identified through external HCV-HCSA (or similar) assessments

and are protected as part of SIPEF’s NDP commitment.

10. Tree cover loss

monitoring

An external partner is engaged to monitor the implementation of SIPEF’s NDP policy

across its own concessions and supplier areas, providing quarterly updates. Impacted

areas are identified through alert systems and are verified by local teams through

on-the-ground investigations.

11. Fire monitoring Fire alerts from RSPO are monitored across SIPEF’s own concessions and supplier areas.

Impacted areas are confirmed through on-the-ground investigations conducted by local

teams.

12. SBI Degraded area restored refers to the total hectares of forest rehabilitated, while

agroforestry growers engaged represents the number of community farmers actively

collaborating with SIPEF.

13. Own

Workforce

Number of

employees

Headcount is reported as of 31 December 2024 and is further disaggregated by country,

gender, contract type, and crop. There is no cross-reference available between the

reported headcount and the figures in the financial statements.

14. Employment type There are two types of employment contracts:

• Permanent: An employment contract for an indefinite period.

• Temporary: An employment contract for a fixed period that ends either when the

specified time expires or when a particular task or event is completed (e.g., project

completion or the return of a replaced employee).

15. Employee turnover Total number of employees who have left SIPEF during the reporting period voluntarily,

due to dismissal, retirement, or death. The percentage of turnover is calculated based on

total turnover divided by the total number of employees as at 31 December 2024.

16. Collective

bargaining

Collective bargaining coverage includes employees whom SIPEF is required to cover

under local regulations. Through their unions, employees negotiate with the Company

on matters such as pay, benefits, working hours, leave, and safety. The coverage percent

age is calculated as the number of employees covered as of 31 December 2024, divided by

the total number of employees at that time.

449

SIPEF Integrated Annual Report 2024 Annex

NO. TOPIC METRIC METHODOLOGIES AND ASSUMPTIONS

17. Own

Workforce

Diversity:

Top management

At SIPEF, top management includes the board of directors and executive committee

members (in all countries except Singapore).

18. Diversity: Age The age diversity of all employees is calculated as of 31 December 2024, based on each

employee’s date of birth. Employees are categorised into the following age groups: below

30 years old, between 30 and 50 years old (inclusive), above 50 years old.

19. Training Total training hours are recorded and used to calculate the average training hours by

gender, based on the total number of male and female employees with active status as of

31 December 2024.

20. Safety: Lost Time

Injury (LTI)

A Lost Time Injury (LTI) is a work-related accident or injury that prevents an employee

from doing their regular job. It must be confirmed by a medical certificate to be ocially

recorded.

21. Safety: Lost Work

Day

Lost work days from an LTI are counted starting from the next working day after the

incident occurred during working hours.

22. Safety: Total hours

worked

Hours worked is the estimated total number of hours employees worked during the

reporting period, including paid leave like annual leave and public holidays. It is based on

the legal working hours in each country and calculated using:

Hours worked = Headcount × Weeks per month × Hours per week

23. Lost time injury

frequency rate

(LTIFR)

This calculation is performed per country, based on data from the reporting year, and

expresses the number of LTIs per one million hours worked. It is calculated using the

following formula: LTIFR = (Total number of LTIs/Total hours worked) x 1 000 000

24. Gender pay gap The percentage of gender pay gap is calculated using the following formula:

(Average gross pay of male employees – Average gross pay of female employees) / Average

gross pay level male employees x 100

25. Remuneration ratio The remuneration ratio compares the annual pay of the highest-paid individual to the

median pay of all other employees in each country, excluding the highest-paid individual.

Total pay includes salary, bonuses, and regular financial benefits. It is calculated using:

Remuneration Ratio = Highest annual pay / Median annual pay of other employees

26. Incidents and

complaints

All grievances received are documented through SIPEF’s Grievance Solution system.

Each case is reviewed and categorised based on its nature and severity, including

incidents related to: discrimination, harassment and severe human rights violations, if

any are identified. No cases were identified in the 2024 reporting period.

27. Workers in

value chain

Smallholders’

programmes

The number of smallholders is based on SIPEF’s ocial list in Indonesia and Papua

New Guinea. The RSPO-certified smallholders are those registered under valid RSPO

certificates. Total and certified planted areas are based on hectarage statement as of

December 2024.

28. Good

business

conduct

ACAB training The number of training sessions attended is reported at Group level, covering both

at-risk functions and other own workers for the 2024 reporting period.

29. Corruption and

bribery incidents

All grievances are recorded using SIPEF’s Grievance Solution system and are reviewed

and categorised by type and severity. This includes cases related to corruption and

bribery, if identified. Any convicted cases, if they occur, will be included in the reporting

scope. No cases were identified in the 2024 reporting period.

450 The connection to the world of sustainable tropical agriculture

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ADDITIONAL

INFORMATION

REFERENCE TO

DATAPOINTS

FROM

OTHER EU

LEGISLATIONS

ESRS 2  GENERAL DISCLOSURES

BP-1 General basis for prepara-

tion of the Sustainability

Statement

Sustainability Statement

- General information;

Annex 4

88-89,

446-450

BP-2 Disclosure in relation to

specific circumstances

Sustainability Statement

- General information;

Annex 4; Annex 5

88-89,

446-450,

451-462

Where relevant,

specific circumstances

in accordance with BP-2

DRs have been reported

alongside topic and data

disclosures throughout

the Environmental,

Social and Governance

information sections

of the Sustainability

Statement

GOV-1 The role of the adminis

trative, management and

supervisory bodies

Sustainability Statement

- General information;

Corporate Governance

Statement; Company

report

34-35,

100-104,

286-304

(1), (2)

Annex 5 – ESRS disclosure

requirements index and

incorporation by reference

The following table lists all ESRS Disclosure

Requirements (DRs) from ESRS 2 and the nine

topical standards identified as material to SIPEF,

covering a total of 45 sustainability matters. The

DRs under ESRS E5 – Circular Economy – have

been omitted in full, as this topic was assessed as

not material.

The table also explains any omissions or “not

applicable” DRs and data points within the nine

topical standards. For each applicable DR, the

table indicates where the information is report-

ed in the Integrated Annual Report—namely,

the Sustainability Statement, Company Report,

Corporate Governance Statement, Financial

Statements, or Annexes.

Where DRs are addressed outside the Sustainability

Statement, they are incorporated by reference,

with precise details provided in the table on the

corresponding section title and page number(s)

in the Integrated Annual Report. In cases of omis-

sion or non-applicability, this is brieﬂy explained

under the “Additional Information” column. The

table also references relevant data points from

other EU legislation: (1) SFDR, (2) Pillar 3, (3)

Benchmark Regulation, and (4) EU Climate Law.

Where relevant, the use of other sustainability

reporting standards or frameworks is also noted

and explained within the table.

451

SIPEF Integrated Annual Report 2024 Annex

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GOV-2 Information provided to

and sustainability matters

addressed by the under

taking's administrative,

management and supervi

sory bodies

Sustainability Statement

- General information;

Corporate Governance

Statement

101-102,

292-203,

298

GOV-3 Integration of sustainabil

ity-related performance in

incentives schemes

Corporate Governance

Statement

308-309,

315

GOV-4 Statement on sustainabili

ty due diligence

Sustainability Statement -

General information

108-109 (1)

GOV-5 Risk management and

internal controls over

sustainability reporting

Sustainability Statement -

General information

110-111

SBM-1 Strategy, business model

and value chain

(products, markets, employ-

ees, revenue, strategy,

business model, value chain)

Company Report 18-19, 26-45 (1), (2), (3)

SBM-1 Strategy, business model

and value chain

(banned products, ESRS

sectors, fossil fuel, chemical,

controversial weapons,

tobacco)

Company Report 37 Omitted: SIPEF does

not produce any prod

ucts that are banned

in certain markets,

nor is SIPEF active

in fossil fuel sectors,

chemicals production,

controversial weapons,

or the cultivation and

production of tobacco

SBM-1 Strategy, business model

and value chain

(strategy, sustainability

goals, )

Sustainability Statement

- General information;

Company Report

26-33,

40-41,

46-61,

90-93, 118,

156, 256

SBM-2 Interests and views of

stakeholders

Sustainability Statement -

General information

111-117

SBM-3 Material, impacts, risk and

opportunities and their

interaction with strategy

and business model

Sustainability Statement;

Corporate Governance

Statement

119-151,

157-255,

257-281,

318-324

SBM-3 is reported in the

environmental, social

and governance sections

of the statement, along

side topical and data

disclosures for each

sustainability matter

material to SIPEF

IRO-1 Description of the process

to identify and assess

material, impact, risks and

opportunities

Sustainability Statement -

General information

94-99

IRO-2 Disclosure requirements

in ESRS covered by

the undertaking's

Sustainability statements

Sustainability Statement;

Annex 5

97, 451-462

452 The connection to the world of sustainable tropical agriculture

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ESRS E1  CLIMATE CHANGE

E1.GOV-3 Integration of sustainabil-

ity-related performance in

incentive schemes

Corporate Governance

Statement

315

E1-1 Transition plan for climate

change mitigation

Sustainability Statement -

E1: Climate change

119, 130 Omitted: not available,

as this is the first year

of gross GHG emissions

reporting. Prior to

2024, only net emissions

were calculated,

and the disclosed

target was based on net

values. Recalculation

of historical data

and development of

gross-based targets are

underway.

(2), (3), (4)

E1.SBM-3 Material impacts, risks and

opportunities and their

interaction with strategy

and business model related

to climate change

Sustainability Statement -

E1: Climate change

120-128 Sustainability matters:

climate change miti

gation, energy, climate

change adaptation

E1.IRO-1 Description of the

processes to identify and

assess material climate-re

lated impacts, risks and

opportunities

Sustainability Statement -

E1: Climate change

120, 125-127

E1-2 Policies related to climate

change mitigation and

adaptation

Sustainability Statement -

E1: Climate change

128

E1.MDR-P Policies to manage

material impacts, risks and

opportunities related to

climate change

Sustainability Statement -

E1: Climate change

128

E1-3 Actions and resources in

relation to climate change

policies

Sustainability Statement

- E1: Climate change; EU

Taxonomy disclosures

129-130,

152-154

E1.MDR-A Actions and resources

related to climate change

mitigation and adaptation

Sustainability Statement -

E1: Climate change

129-130

E1-4 Targets related to climate

change mitigation and

adaptation

Sustainability Statement -

E1: Climate change

119, 129-130 Omitted: not available,

as this is the first year

of gross GHG emissions

reporting. Prior to

2024, only net emissions

were calculated,

and the disclosed

target was based on net

values. Recalculation

of historical data

and development of

gross-based targets are

underway.

453

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E1.MDR-T Targets related to climate

change mitigation and

adaptation

Sustainability Statement -

E1: Climate change; Annex

119, 129-130,

406-407

E1-5 Energy consumption and

mix

Sustainability Statement -

E1: Climate change; Annex

124, 426 (1)

E1-6 Gross Scopes 1, 2, 3 and

Total GHG emissions

Sustainability Statement -

E1: Climate change; Annex

2; Annex 4

120-124,

427,

446-450

(1), (2), (3)

ESRS E2  POLLUTION

E2.IRO-1 Description of the

processes to identify and

assess material pollu

tion-related impacts, risks

and opportunities

Sustainability Statement -

E2: Pollution

132-133 Note: no material

pollution-related risks

or opportunities were

identified by SIPEF

and are therefore not

disclosed.

Sustainability matters:

pollution of air,

pollution of water

E2-1

Policies related to pollution

Sustainability Statement -

E2: Pollution

133

E2.MDR-P Policies to manage its

material impacts, risks and

opportunities related to

pollution

Sustainability Statement -

E2: Pollution

133

E2-2 Actions and resources

related to pollution

Sustainability Statement -

E2: Pollution

133-135

E2.MDR-A Action plans and resources

to manage material

impacts, risks, and

opportunities related to

pollution

Sustainability Statement -

E2: Pollution

133-135

E2-3 Targets related to pollution Sustainability Statement -

E2: Pollution; Annex 1

131, 133-135,

407-408

E2.MDR-T Tracking eectiveness

of policies and actions

through targets

Sustainability Statement -

E2: Pollution; Annex 1

131, 133-135,

407-408

E2-4 Pollution of air, water and

soil

Omitted N/A Not applicable: SIPEF’s

operations are located

outside of the EU.

Regulation (EC) No

166/2006, which estab

lished the European

Pollutant Release and

Transfer Register, does

not apply.

E2-5 Substances of concern and

substances of very high

concern

Omitted N/A Not material: substanc

es of concern and very

high concern were not

identified as material in

SIPEF’s assessment.

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E2-6 Anticipated financial

eects from material

pollution-related risks and

opportunities

Sustainability Statement -

E2: Pollution

132 No material pollu

tion-related risks and

opportunities identified,

and no material

incidents and deposits

expected to have neg

ative financial eects.

Phase-in for E2-6: 40c,

39a, 39b, 39c, 41.

ESRS E3  WATER RESOURCES

E3.IRO-1 Description of the process-

es to identify and assess

material water and marine

resources-related impacts,

risks and opportunities

Sustainability Statement -

E3: Water

137 Note: no material

water-related risks

or opportunities were

identified by SIPEF

and are therefore not

disclosed.

Sustainability matters:

water consumption,

water withdrawals,

water discharges

E3-1 Policies related to water

and marine resources

Sustainability Statement -

E3: Water

138 (1)

E3.MDR-P Policies to manage

material impacts, risks

and opportunities related

to water and marine

resources

Sustainability Statement -

E3: Water

138

E3-2 Actions and resources

related to water and

marine resources

Sustainability Statement -

E3: Water

138-140 Note: marine resources

are not applicable to

SIPEF’s operations and

were not identified as

material.

E3.MDR-A Action plans and resources

to manage material

impacts, risks, and oppor

tunities related water and

marine resources

Sustainability Statement -

E3: Water

138-140

E3-3 Targets related to water

and marine resources

Sustainability Statement -

E3: Water; Annex 1

131, 139-140,

408

E3.MDR-T Targets set to manage

material impacts, risks and

opportunities

Sustainability Statement -

E3: Water; Annex 1

131, 139-140,

408

E3-4 Water consumption Sustainability Statement -

E3: Water

138-139 (1)

E3-5 Anticipated financial

eects from water and

marine resources-re

lated impacts, risks and

opportunities

Sustainability Statement -

E3: Water

137 Phase-in for E3-5: 33a,

33b, 33c

455

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ESRS E4  BIODIVERSITY AND ECOSYSTEMS

E4.SBM-3 Material impacts, risks and

opportunities and their

interaction with strategy

and business model related

to climate change

Sustainability Statement

- E4: Biodiversity and

ecosystems

142-145 Sustainability Matters:

Land-use change, Land

degradation, Species

population size, Species

global extinction risk

E4.IRO-1 Description of processes

to identify and assess

material biodiversity and

ecosystem-related impacts,

risks, dependencies and

opportunities

Sustainability Statement

- E4: Biodiversity and

ecosystems

142-145

E4-1 Transition plan and con

sideration of biodiversity

and ecosystems in strategy

and business model

Sustainability Statement

- E4: Biodiversity and

ecosystems

145

E4-2 Policies related to biodiver

sity and ecosystems

Sustainability Statement

- E4: Biodiversity and

ecosystems

145 (1)

E4.MDR-P Policies to manage

its material impacts,

risks and opportunities

related to biodiversity and

ecosystems

Sustainability Statement

- E4: Biodiversity and

ecosystems

145

E4-3 Actions and resources

related to biodiversity and

ecosystems

Sustainability Statement

- E4: Biodiversity and

ecosystems

146-151 Partially omitted:

SIPEF does not use

biodiversity osets in its

action plan

E4.MDR-A Action plans and

resources to manage

material impacts, risks,

and opportunities

related to biodiversity and

ecosystems

Sustainability Statement

- E4: Biodiversity and

ecosystems

146-151

E4-4 Targets related to biodiver

sity and ecosystems

Sustainability Statement

- E4: Biodiversity and

ecosystems; Annex 1

141, 148-151,

409-410

Partially omitted:

SIPEF does not apply

ecological thresholds

as per ESRS E4-4

definitions. Therefore

32a (i,ii,iii) and 32b are

omitted.

E4. MDR-T Targets set to manage

material impacts, risks and

opportunities

Sustainability Statement

- E4: Biodiversity and

ecosystems ; Annex 1

141, 148-151,

409-410

E4-5 Impact metrics related to

biodiversity and ecosys

tems change

Sustainability Statement

- E4: Biodiversity and

ecosystems

146-151

E4-6 Anticipated financial

eects from material

biodiversity and ecosys

tem-related risks and

opportunities

Sustainability Statement

- E4: Biodiversity and

ecosystems

145 Phase-in for E4-6: 45a,

45b, 45c

456 The connection to the world of sustainable tropical agriculture

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ESRS S1  OWN WORKFORCE

S1.SBM-3 Material impacts, risks and

opportunities and their

interaction with strategy

and business model related

to consumers and end

users

Sustainability Statement -

S1: Own workforce

161-192 Note: no material own

workforce-related risks

or opportunities were

identified by SIPEF

and are therefore not

disclosed.

Sustainability matters:

secure employment,

no exploitation (child

labour, forced labour),

adequate wages,

freedom of association,

collective bargaining,

working time, work-life

balance, health and

safety, training and

skills development,

gender equality and

equal pay for work of

equal value, diversity,

measures against vio

lence and harassment in

the workplace

S1-1 Policies related to Own

workforce

Sustainability Statement -

S1: Own workforce

161, 166, 168,

173, 176, 179,

183, 186,

191-192

S1.MDR-P Policies to manage

material impacts, risks and

opportunities related to

workers in the value chain

Sustainability Statement -

S1: Own workforce

161, 166, 168,

173, 176, 179,

183, 186,

191-192

S1-2 Processes for engaging

with Own workforce and

workers’ representatives

about impacts

Sustainability Statement -

S1: Own workforce

193

S1-3 Processes to remediate

negative impacts and chan

nels for Own workforce to

raise concerns

Sustainability Statement -

S1: Own workforce

194-195 (1)

S1-4 Taking action on material

impacts on Own work

force, and approaches to

managing material risks

and pursuing material

opportunities related

to Own workforce, and

eectiveness of those

actions

Sustainability Statement -

S1: Own workforce

161-192

457

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LEGISLATIONS

S1.MDR-A Action plans and resources

to manage its material

impacts, risks, and

opportunities related to its

Own workforce

Sustainability Statement -

S1: Own workforce

161-192

S1-5 Targets related to

managing material

negative impacts, advanc

ing positive impacts, and

managing material risks

and opportunities

Sustainability Statement -

S1: Own workforce; Annex

157, 164, 167,

171, 174, 178,

181-182, 185,

190, 192, 411

S1.MDR-T Targets set to manage

material impacts, risks and

opportunities related to

Own workforce

Sustainability Statement -

S1: Own workforce; Annex

157, 164, 167,

171, 174, 178,

181-182, 185,

190, 192, 411

S1-6 Characteristics of the

undertaking’s employees

Sustainability Statement -

S1: Own workforce; Annex

158,

432-437

S1-7 Characteristics of non-em

ployees in the undertak-

ing’s Own workforce

Omitted N/A Phase-in for S1-7: 55a,

55b (I,ii), 55c, 57

S1-8 Collective bargaining cov

erage and social dialogue

Sustainability Statement -

S1: Own workforce; Annex

172-174,

432-437

Partially omitted:

phase-in for S1-8: AR 70

S1-9 Diversity metrics Sustainability Statement -

S1: Own workforce; Annex

2; Annex 4

187, 432-

437, 450

S1-10 Adequate wages Sustainability Statement -

S1: Own workforce

168-171 Partially omitted: All

employees are paid

adequate wage, in

line with applicable

benchmarks

S1-11 Social protection Omitted N/A Phase-in for S1-11: 74a,

74b, 74c, 74d, 74e, 75, 76

S1-12 Persons with disabilities Omitted N/A Not material: employ

ment and inclusion of

persons with disabilities

was not identified as

material

S1-13 Training and skills

development metrics

Sustainability Statement -

S1: Own workforce; Annex

184,

432-437

Partially omitted:

Phase-in for S1-13: AR

77, AR78

S1-14 Health and safety metrics Sustainability Statement -

S1: Own workforce; Annex

181-182,

432-437

Partially omitted:

phase-in for S1-14: 88d,

88e

(1)

S1-15 Work-life balance metrics Omitted N/A Phase-in for S1-15: 93a,

93b, 94

S1-16 Remuneration metrics

(pay gap and total

remuneration)

Sustainability Statement -

S1: Own workforce; Annex

171, 187,

432-437

(1), (3)

S1-17 Incidents, complaints

and severe human rights

impacts

Sustainability Statement -

S1: Own workforce; Annex

195,

432-437

(1)

458 The connection to the world of sustainable tropical agriculture

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ESRS S2  WORKERS IN THE VALUE CHAIN

S2.SBM-3 Material impacts, risks and

opportunities and their

interaction with strategy

and business model related

to workers in the value

chain

Sustainability Statement

- S2: Workers in the value

chain

197-225 Note: no material risks

or opportunities related

to workers in the value

chain were identified by

SIPEF and are therefore

not disclosed.

Sustainability matters:

secure employment,

working time, adequate

wages, child labour,

health and safety,

training and skills

development, diversity,

gender equality and

equal pay, measures

against violence and

harassment in the

workplace, privacy

S2-1 Policies related to value

chain workers

Sustainability Statement

- S2: Workers in the value

chain

203, 208,

210-211,

213, 216-217,

219, 222,

224, 225

(1)

S2.MDR-P Policies to manage

material impacts, risks and

opportunities related to

workers in the value chain

Sustainability Statement

- S2: Workers in the value

chain

203, 208,

210-211,

213, 216-217,

219, 222,

224, 225

S2-2 Processes for engaging

with value chain workers

about impacts

Sustainability Statement

- S2: Workers in the value

chain

200

S2-3 Processes to remediate

negative impacts and

channels for value chain

workers to raise concerns

Sustainability Statement

- S2: Workers in the value

chain

201

S2-4 Taking action on material

impacts on value chain

workers, and approaches

to managing material risks

and pursuing material

opportunities related to

value chain workers, and

eectiveness of those

actions

Sustainability Statement

- S2: Workers in the value

chain

197-226

S2.MDR-A Action plans and resources

to manage its material

impacts, risks, and

opportunities related to

value chain workers

Sustainability Statement

- S2: Workers in the value

chain

197-226

459

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INFORMATION

REFERENCE TO

DATAPOINTS

FROM

OTHER EU

LEGISLATIONS

S2-5 Targets related to man-

aging material negative

impacts, advancing

positive impacts, and

managing material risks

and opportunities

Sustainability Statement

- S2: Workers in the value

chain; Annex 1

196, 206-

207, 209,

212, 214,

218, 220,

223, 224,

226, 408

S2.MDR-T Targets set to manage

material impacts, risks and

opportunities related to

value chain workers

Sustainability Statement

- S2: Workers in the value

chain; Annex 1

196, 206-

207, 209,

212, 214,

218, 220,

223, 224,

226, 408

ESRS S3  AFFECTED COMMUNITIES

S3.SBM-3 Material impacts, risks and

opportunities and their

interaction with strategy

and business model related

to aected communities

Sustainability Statement -

S3: Aected communities

227-243 Note: no material risks

or opportunities related

to aected communities

were identified by

SIPEF and are therefore

not disclosed.

Sustainability

matters: Free, prior,

and informed consent

(FPIC), security-related

impacts, adequate food

S3-1 Policies related to aected

communities

Sustainability Statement -

S3: Aected communities

230, 232,

235

(1)

S3.MDR-P Policies to manage

material impacts, risks and

opportunities related to

aected communities

Sustainability Statement -

S3: Aected communities

230, 232,

235

S3-2 Processes for engaging

with aected communities

about impacts

Sustainability Statement -

S3: Aected communities

228

S3-3 Processes to remediate

negative impacts and

channels for aected

communities to raise

concerns

Sustainability Statement -

S3: Aected communities

236-237

S3-4 Taking action on material

impacts on aected com

munities, and approaches

to managing material risks

and pursuing material

opportunities related to

aected communities,

and eectiveness of those

actions

Sustainability Statement -

S3: Aected communities

230-231,

233, 235,

236

S3.MDR-A Action plans and resources

to manage its material

impacts, risks, and

opportunities related to

value chain workers

Sustainability Statement -

S3: Aected communities

230-231,

233, 235,

236

460 The connection to the world of sustainable tropical agriculture

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FROM

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LEGISLATIONS

S3-5 Targets related to man-

aging material negative

impacts, advancing

positive impacts, and

managing material risks

and opportunities

Sustainability Statement -

S3: Aected communities

227, 231,

233, 236

Omitted: targets have

not yet been set for

materal impacts related

to aected communities

S3.MDR-T Targets set to manage

material impacts, risks and

opportunities related to

value chain workers

Sustainability Statement -

S3: Aected communities

227, 231,

233, 236

Omitted: targets have

not yet been set for

materal impacts related

to aected communities

ESRS S4  CONSUMERS AND ENDUSERS

S3.SBM-3 Material impacts, risks and

opportunities and their

interaction with strategy

and business model related

to consumers and end

users

Sustainability Statement

- S4: Consumers and

end-users

239-252 Note: scope excludes

end-users as SIPEF

supplies raw materials,

and does not manufac

ture or distribute final

consumer goods

Sustainability matters:

access to (quality)

information, health and

safety (consumers)

S4-1 Policies related to consum

ers and end-users

Sustainability Statement

- S4: Consumers and

end-users

241, 252 (1)

S4.MDR-P Policies to manage

material impacts, risks and

opportunities related to

consumers and end-users

Sustainability Statement

- S4: Consumers and

end-users

241, 252

S4-2 Processes for engaging

with consumers and

end-users about impacts

Sustainability Statement

- S4: Consumers and

end-users

255

S4-3 Processes to remediate

negative impacts and

channels for consumers

and end-users to raise

concerns

Sustainability Statement

- S4: Consumers and

end-users

255

S4-4 Taking action on material

impacts on consumers and

end- users, and approaches

to managing material risks

and pursuing material

opportunities related to

consumers and end-users,

and eectiveness of those

actions

Sustainability Statement

- S4: Consumers and

end-users

242-245,

252-254

(1)

S4.MDR-A Action plans and resources

to manage its material

impacts, risks, and

opportunities related to

consumers and end-users

Sustainability Statement

- S4: Consumers and

end-users

242-245,

252-254

461

SIPEF Integrated Annual Report 2024 Annex

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INFORMATION

REFERENCE TO

DATAPOINTS

FROM

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LEGISLATIONS

S4-5 Targets related to man-

aging material negative

impacts, advancing

positive impacts, and

managing material

risks and opportunities

Sustainability Statement

- S4: Consumers and

end-users; Annex 1

238, 244,

254, 413

S4.MDR-T Targets set to manage

material impacts, risks and

opportunities related to

consumers and end-users

Sustainability Statement

- S4: Consumers and

end-users; Annex 1

238, 244,

254, 413

ESRS G1 BUSINESS CONDUCT

G1.GOV-1 The role of the adminis-

trative, management and

supervisory bodies

Sustainability Statement

- General information; G1:

Business conduct

34-35, 100-

104, 265,

273, 275,

277, 281,

286-304

SBM-3 Material impacts, risks and

opportunities and their

interaction with strategy

and business model

Sustainability Statement -

G1: Business conduct

258-280 Sustainability matters:

corporate culture,

corruption and bribery

(prevention and detec

tion including training,

incidents), protection of

whistleblowers

G1-1 Business conduct policies

and corporate culture

Sustainability Statement -

G1: Business conduct

265-266,

272-274, 281

(1)

G1.MDR-P Policies in place to manage

its material impacts, risks

and opportunities related

to business conduct and

corporate culture

Sustainability Statement -

G1: Business conduct

265-266,

272-274, 281

G1-2 Management of relation-

ships with suppliers

Omitted N/A Not material: manage

ment of relationships

with suppliers was

was not identified as

material.

G1-3 Prevention and detection

of corruption and bribery

Sustainability Statement -

G1: Business conduct

274-275,

278

G1.MDR-A Action plans and resources

to manage its material

impacts, risks, and

opportunities related to

corruption and bribery

Sustainability Statement -

G1: Business conduct

258-281

G1-4 Incidents of corruption or

bribery

Sustainability Statement

- G1: Business conduct;

Annex 2

278-279,

437

(1), (3)

G1-5 Political inﬂuence and

lobbying activities

Omitted N/A Not material: political

inﬂuence and lobbying

activities was assessed

as not applicable, and

not material.

G1-6 Payment practices Omitted N/A Not material: payment

practices was assessed

as not applicable, and

not material.

462 The connection to the world of sustainable tropical agriculture

Other information

about the Company

Ter m

The Company exists for an indefinite term.

Capital

Subscribed capital

SIPEF has been granted ocial approval from the

Federal Public Service (FPS) Economy, as from 1

January 2016, to keep its accounts and draw up its

financial statements in US dollars, the functional

currency of SIPEF.

At 31 December 2024, the fully paid-up registered

capital was USD 44 733 752.04. It is represented by

10 579 328 shares without nominal value.

All shares representing the capital have the same

rights.

Each share gives the right to one vote. SIPEF has

issued no other categories of shares, such as shares

without voting rights or preferential shares.

Authorised capital

The extraordinary general meeting of 14 June

2023 passed a resolution to extend by five years the

authorisation granted to the board of directors to

increase the capital of USD 44 733 752.04 on one or

more occasions, according to the terms stipulated

in the Articles of Association.

That authorisation is valid for a period of five years,

from 24 July 2023, the date of publication in the

Appendices to the “Belgisch Staatsblad”, up to and

including 23 July 2028.

The extraordinary general meeting of 14 June 2023

decided that, if the Company receives an announce-

ment from the Financial Services and Markets

Authority (FSMA) that it has been informed of a

public bid to acquire the shares of the Company,

in accordance with article 7:202 §2, 2° of the

Companies Code, the board of directors can only

use its authorisation with regard to the authorised

capital, if this notification is made no later than

three years after the date of the extraordinary

general meeting that renewed the authorisation

in question, being from 14 June 2023 up to and

including 13 June 2026.

At 31 December 2024, the fully authorised capital

was USD 44 733 752.04.

Based on this amount, no more than 10 579 328

new shares can be issued.

463

SIPEF Integrated Annual Report 2024 Other information about the Company

Treasury shares

The extraordinary general meeting of 14 June 2023

renewed for a period of five years the authorisa-

tion given to the board of directors, as a result of

which the board, with due consideration for the

legal provisions, may obtain a maximum number

of 2115865 own shares being 20% of the issued

capital, according to the modalities specified in

the Articles of Association.

That authorisation is valid for a period of five years,

from 24 July 2023, the date of publication in the

Appendices to the Belgisch Staatsblad, up to and

including 23 July 2028.

This extraordinary general meeting also renewed

the authorisation granted to the board of directors

to obtain own shares, if this purchase is necessary

to avoid an imminent serious disadvantage for the

Company. That authorisation is valid for a period of

three years, from 24 July 2023, the date of publica-

tion in the Appendices to the Belgisch Staatsblad,

up to and including 23 July 2026.

The purchase and sale of own shares in 2024 are

described in Note 22 of this integrated annual

report.

At 31 December 2024, SIPEF owns 162 016 treasury

shares (1.53% of the total number of outstanding

shares) which are reserved for the exercise of grant-

ed and not yet exercised options.

Documents available

to the public

Access to the information for the

shareholders and website

SIPEF has a website where shareholders can access

all information on the Company.

 www.sipef.com

This website is regularly updated and contains the

information required under the Royal Decree of

14 November 2007 on the obligations of issuers

of financial instruments admitted to trading on a

regulated market and the Companies Code.

Among other things, the website contains the

financial statements and annual reports, all press

releases published by the Company, and all useful

and necessary information on the general meetings

and the participation of the shareholders in these

meetings, particularly the conditions provided by

the Articles of Association for the convening of the

(ordinary and extraordinary) general meetings of

the shareholders.

Lastly, the results of the votes and the minutes

of the general meetings are also published on the

website.

464

The connection to the world of sustainable tropical agriculture

Places where documents accessible

to the public can be consulted

The coordinated Articles of Association of the

Company can be inspected at the Registry of the

Commercial Court in Antwerp, at the Company’s

registered oce and on its website.

 www.sipef.com/hq/investors/shareholders-information/

corporate-governance

The annual financial statements are deposited with

the National Bank of Belgium and can be consulted

on the website of SIPEF.

The resolutions concerning the appointment and

the removal of the members of the executive bodies

of the Company are published in the Appendices to

the Belgisch Staatsblad.

The financial notices of the Company are published

in the financial press. The other documents avail-

able for public inspection can be consulted at the

Company’s registered oce.

The annual report of the Company is sent every

year to registered shareholders and to everyone

who has expressed a wish to receive the report. It

is available free of charge at the registered oce.

The annual reports of the three most recent finan-

cial years and all other documents mentioned in

this paragraph can be consulted on the Company’s

website.

465

SIPEF Integrated Annual Report 2024 Other information about the Company

General

Glossary

3-MCPD Monochloropropane-1,2-diol (3-MCPD) -- 3-Mono-

chloropropane-1,2-diol is a common contaminant formed

in heat-processed fat-containing foods from glycerol or acyl

glycerides in the presence of chloride ions. 3-MCPDE are the

esters formed during the same process.

Bialla Oil Palm Grower Association (BOPGA) -- An association that

supports smallholders, out-growers in oil palm-growing regions.

Biochemical oxygen demand (BOD) -- The amount of oxygen

needed by bacteria and microorganisms in an anaerobic envi-

ronment to decompose organic matter. Testing for BOD is done

to assess the amount of organic matter in water.

Bio-CNG -- Compressed natural gas produced from biogas, used

as a cleaner energy alternative.

Bursa Malaysia Derivatives Exchange (MDEX) -- The Palm oil

quote at the Malaysian Derivatives Exchange (MDEX) is the

global leader in price discovery for palm oil. This will be the

leading pricing mechanism to determine prices locally as well as

overseas. To convert a MDEX quote to a CIF European port one

will add the prevailing export tax as well as the corresponding

sea freight cost.

CDP -- CDP is a not-for-profit charity that runs the global disclosure

system for investors, companies, cities, states and regions to

manage their environmental impacts.

Chemical oxygen demand (COD) -- The amount of oxygen that

can be consumed by reactions in a given volume of a solution,

that measures oxidisable contaminants in surface water and

wastewater.

Circular economy -- A model of production and consumption to

minimise waste and maximise resource eciency by keeping

materials, products, and resources in use for as long as possible.

Climate change adaptation -- Actions taken to adjust to the cur-

rent or expected eects of climate change, reducing risks and

enhancing resilience. This includes measures like improving

infrastructure, adopting sustainable agriculture, and devel

oping early warning systems.

Climate change mitigation -- Eorts to reduce or prevent green-

house gas emissions to limit global warming. This includes

actions like increasing energy eciency, transitioning to renew-

able energy, enhancing carbon sequestration, and adopting

sustainable practices.

Code of conduct -- The SIPEF Code of Conduct contains the

defined set of rules, principles, values and expectations for

employees, set out by SIPEF for the Group to achieve responsible

behaviour and integrity.

Collective Bargaining Agreements (CBA) -- Collective Bargaining

Agreements are legal contracts that regulate the terms and

conditions of employees at work.

Corporate governance -- The organisation and processes of the

managing bodies that define the strategy and monitor its

implementation.

Corporate Sustainability Reporting Directive (CSRD) -- The

CSRD is a European Union legislation that amends the exist-

ing Non-Financial Reporting Directive (NFRD), modernising

and strengthening the requirements regarding the social and

environmental information that companies falling within its

scope must report on an annual basis. It also mandates audit

(assurance) to ensure the accuracy and reliability of reported

data.

Cost, Insurance, and Freight (CIF) Rotterdam -- Cost, Insurance

and Freight is the selling price to cover all costs including

insurance and freight up to the port of destination, which is

Rotterdam in this case. The buyer will pay for the goods deliv-

ered in Rotterdam. The CIF Rotterdam price is a worldwide

reference in the palm oil market.

Crude Palm Kernel Oil (CPKO) -- Crude Palm Kernel Oil is an edible

plant oil derived from the kernel of the oil palm.

Crude Palm Oil (CPO) -- Crude Palm Oil is an edible oil which is

extracted from the pulp of the fruit of the oil palm.

Do No Significant Harm (DNSH) -- A principle requiring that any

economic activity or investment supporting one environmental

objective must not cause significant harm to other environmen-

tal objectives. This concept, known as "Do No Significant Harm"

(DNSH), is a key criterion in the EU Taxonomy for classifying

an activity as ‘green’, ensuring that environmental benefits in

one area do not come at the expense of others.

Double Materiality (DM) -- A reporting principle that considers

both the impact of sustainability matters on a company’s finan-

cial performance (financial materiality) and the company’s

impacts on people and the environment (impact materiality).

Required under the CSRD, it guides companies in identifying

material impacts, risks, and opportunities for sustainability

reporting.

466 The connection to the world of sustainable tropical agriculture

Emergency Response plan (ERP) -- A formalised strategy outlining

the steps and responsibilities in case of critical incidents like

accidents, fires, or natural disasters.

Empty fruit bunches (EFB) -- Empty fruit bunches are the fibrous

remains of fresh fruit bunches (FFB) after the fruit has been

removed for palm oil pressing.

Environmental Impact Assessment (EIA) -- A process used to

assess the potential environmental eects of a proposed project.

Conducting an EIA is a requirement under the Roundtable

on Sustainable Palm Oil (RSPO) Principles & Criteria (P&C).

EU Taxonomy -- EU Taxonomy is the regulation that determines

which investments can be classified as ‘green’ and which

contribute to the realisation of the EU Green Deal. The clas-

sification is based on technical screening criteria (TSC) and

minimum criteria for the avoidance of significant harm (‘DNSH’

or 'Do No Significant Harm’).

European Sustainability Reporting Standards (ESRS) -- The ESRS

set out the ocial sustainability reporting requirements that

EU companies falling in scope of the CSRD must follow.

European Union Deforestation Regulation (EUDR) -- A regula-

tion introduced by the European Union aimed at preventing

deforestation and forest degradation linked to products sold

in the EU market. It requires companies to ensure that certain

commodities are not sourced from land that was deforested

or degraded.

Ex-mill gate selling price -- The price at which crude palm oil is sold

directly from the mill, excluding transport and additional costs.

Hybrid (Oil Palm) -- First generation hybrid varieties designed

for higher yield and resilience.

Financial Materiality -- Refers to sustainability-related risks and

opportunities that could impact a company's financial perfor-

mance, position, or cash ﬂows, inﬂuencing investor decisions

under CSRD and ESRS.

Forest 500 -- Forest 500 identifies the 350 companies and 150

financial institutions with the greatest exposure to tropical

deforestation risk, and annually assesses them on the strength

and implementation of their deforestation and human rights

commitments.

Free Fatty Acids (FFA) -- Free Fatty Acids are found in palm oil,

as in all oils. The major FFA in palm oil are palmitic and oleic.

Crude palm oil quality and price are dependent on the FFA

content at time of shipping.

Free On Board (FOB) -- Free on Board is the selling price indicating

that the seller pays for the transportation of the goods to the

port of shipment plus loading costs. The buyer pays, in addition

to the goods, the cost of freight, insurance, unloading and

transportation from the port of arrival to the final destination.

Free, Prior and Informed Consent (FPIC) -- Free, prior and

informed consent is a specific right that pertains to indige-

nous peoples and local communities and is recognised in the

United Nations Declaration on the Rights of Indigenous Peoples

(UNDRIP). It allows indigenous peoples and local communities

with demonstrable user rights over an area to give or withhold

consent to a project that may aect them or their territories.

Fresh Fruit Bunches (FFB) -- Fresh Fruit Bunches are the palm

fruits that grow in bunches on the oil palm, and the raw material

to be transported to a palm oil mill for processing. The mill

process extracts the palm oil from the ﬂesh of each individual

piece of fruit on the bunch.

GeoSIPEF -- SIPEF’s digital platform for tracking production loca-

tions, certified product volumes, and environmental monitoring.

GHG Protocol -- Framework used globally for measuring and

managing greenhouse gas emissions.

GLOBALG.A.P. -- This is a worldwide recognised farm certification

program that translates consumer requirements into Good

Agricultural Practices among multiple retailers and their

suppliers.

Glycidyl Esters (GE) -- Glycidyl esters are contaminants formed

during food production and preparation at high temperature.

Greenhouse gas emissions - scope 1 -- Direct greenhouse gas (GHG)

emissions from sources owned or controlled by a company.

Greenhouse gas emissions - scope 2 -- Indirect greenhouse gas

(GHG) emissions from the consumption of purchased energy.

Greenhouse gas emissions – scope 3 -- Indirect emissions from

upstream and downstream activities within the company’s

value chain.

Greenhouse Gases (GHG) -- Greenhouse gases are gases present in

and/or emitted into the Earth's atmosphere, including among

others, carbon dioxide and methane, that contribute to the

greenhouse eect and can lead to changes in temperature.

H1 Food-Grade lubricants -- Lubricants that are safe for incidental

food contact in processing machinery.

467

SIPEF Integrated Annual Report 2024 Glossary

Hak Guna Usaha (HGU) -- Hak Guna Usaha is a cultivation licence

issued by the Indonesian Government.

High Carbon Stock Approach (HCSA) -- The High Carbon Stock

Approach is a methodology that distinguishes forest areas for

protection from degraded lands, with low carbon and biodi-

versity values that may be developed. The methodology was

developed with the aim of ensuring a widely accepted practical,

transparent, robust and scientifically credible approach to

implement commitments to halt deforestation in the tropics,

while ensuring the rights and livelihoods of local peoples are

respected.

High Conservation Value (HCV) -- The High Conservation Value

concept was originally developed by the Forest Stewardship

Council (FSC) in 1999 for use in forest management certi-

fication. In 2005, the HCV Network (HCVN, formally HCV

Resource Network) was established, and the scope was widened

from 'HCV Forest' to 'HCV Area'. It is now a keystone principle

of sustainability standards for palm oil, soy, sugar, biofuels and

carbon, as well as being widely used for landscape mapping,

conservation and natural resource planning and advocacy.

Human Rights Due Diligence (HRDD) -- A process used to iden-

tify, prevent, mitigate, and account for human rights risks and

impacts in their operations and value chains.

Identity Preserved (IP) -- A supply chain model in which RSPO-

certified palm oil remains physically segregated from non-cer-

tified palm oil at every stage, ensuring full traceability to a

specific certified mill and its supply base.

Impact Materiality -- Assesses environmental and social impacts.

Under CSRD and ESRS, a matter is material if it is relevant to

stakeholders based on its scale, scope, or likelihood, regardless

of financial impact.

Indonesia Sustainable Palm Oil (ISPO) -- The Indonesian

Sustainable Palm Oil system is a policy adopted by the Ministry

of Agriculture on behalf of the Indonesian Government. The

aims are to improve the competitiveness of Indonesian palm

oil in the global market; reduce GHG emissions; draw attention

to environmental issues and also lead the ISPO GHG Working

Group. The ISPO Commission and the GHG Working Group

have worked together to formulate the calculation guidelines

for palm oil plantations in Indonesia. These guidelines will be

used as a reference and be incorporated by the Government

into the latest ISPO standard.

Integrated landscape approach -- A collaborative, multi-stakehold-

er strategy designed to reconcile competing land uses and pro-

mote sustainable outcomes within a defined geographical area,

by balancing environmental, social, and economic objectives.

Integrated Pest Management (IPM) -- Integrated Pest Management

is an ecosystem approach to crop production that combines

dierent management strategies and practices to grow healthy

crops and minimise the use of pesticides.

International Sustainability and Carbon Certification (ISCC) --

International Sustainability and Carbon Certification is an

independent certification scheme designed to demonstrate

that biomass and bioenergy, and other biomass-based products

used as ingredients by the feed, food and chemical industries,

comply with requirements related to sustainability and GHG

emissions. The scheme aims to reduce GHG emissions; ensure

that biomass is not produced on land with high carbon stock or

high biodiversity; ensure the application of good agricultural

practices related to soil, water and air; and finally, ensure

respect for human, labour and land rights.

Inti -- The nucleus estate of a plantation company in Indonesia

is referred to as inti. They are stated as ‘own’ in the Group

production figures.

ISO 14064-1 -- An international standard that provides guidelines

for quantifying, monitoring, reporting, and verifying green-

house gas (GHG) emissions and removals at the organizational

level.

ISO14001 -- An international standard that sets out the criteria

for an eective environmental management system.

Key performance indicators (KPIs) -- Measurable values that

indicate how eectively the organization is achieving specific

objectives.

Lost Time Injury Frequency Rate (LTIFR) -- Safety performance

metric used to measure the frequency of workplace injuries

that result in lost workdays due to injury.

Mass Balance (MB) -- A supply chain model that permits the blend-

ing of RSPO-certified and non-certified palm oil, as long as the

volume of certified palm oil sold corresponds to the volume

purchased.

Maximum Residue Levels (MRLs) -- Regulatory limits on pesticide

residues allowed in food products.

Mineral Oil Aromatic Hydrocarbons (MOAH) -- A group of mineral

oil compounds that contain aromatic rings, including mono- and

poly-aromatic hydrocarbons. May pose health risks, such as

potential carcinogenic eects.

Mineral Oil Saturated Hydrocarbons (MOSH) -- A group of mineral

oil compounds made up of saturated hydrocarbons, such as

alkanes and cycloalkanes, which are often used in packaging and

industrial products. Can accumulate in the liver and lymphoid

system, leading to inﬂammation.

468 The connection to the world of sustainable tropical agriculture

NACE codes -- A European industry standard classification system

used to categorize economic activities.

No Deforestation, No Peat, No Exploitation (NDPE) -- A sustaina-

bility commitment in the palm oil and other commodity sectors

aimed at eliminating deforestation, peatland development, and

exploitation of people and communities from supply chains.

NDPE policies require producers to conserve natural forests,

avoid planting on peat soils of any depth, and respect human

rights, including the rights of workers, Indigenous peoples,

and local communities.

Occupational Health and Safety (OHS) -- Standards, practices,

and systems put in place to ensure the well-being, health, and

safety of workers across palm oil operations.

Oil Palm Growers Association (OPIC) -- An association that sup-

ports smallholders and out-growers in oil palm-growing regions.

Oil Palm Research Association (OPRA) -- An association that

delivers extension services and research and development

support to smallholders.

Organisation for Economic Co-operation and Development

(OECD) -- The Organisation for Economic Co-operation

and Development is an international organization that works

to promote policies that improve the economic and social

well-being of people.

Palm Kernel (PK) -- The Palm Kernel is the edible seed of the oil

palm fruit.

Palm Kernel Oil (PKO) -- Palm Kernel Oil is an edible vegetable oil

derived from the kernel of the oil palm fruit.

Palm Oil Mill Euent (POME) -- Palm Oil Mill Euent is waste-

water generated from palm oil milling activities. With its high

organic content, POME is a source with great potential for biogas

production and/or composting.

Perjanijan Kerja Waktu Tertentu (PKWT) -- Perjanjian Kerja Waktu

Tertentu (Bahasa Indonesia: Provision of Work, Time Certain;

labour agreement) refers to long-term renewable contracts.

Personal Protective Equipment (PPE) -- Equipment worn to min-

imise exposure to workplace hazards, such as gloves, goggles,

helmets, and masks.

Plasma -- Cooperative programs for plantation development

in Indonesia oblige oil palm plantation companies by law to

assist individual farmers to develop their agricultural land

and manage oil palm planted areas, called 'plasma' areas. Their

production is stated as ‘outgrowers’ in the Group production

figures.

PROPER -- An initiative by Indonesia’s Ministry of Environment

and Forestry that serves as the country’s environmental per-

formance rating program for industries, aimed at improving

corporate environmental practices.

Rainforest Alliance -- The Rainforest Alliance is an international

non-profit organisation working at the intersection of business,

agriculture and forestry to make responsible business the

new normal, and awarding certifications. It is an alliance of

companies, farmers, foresters, communities and consumers

committed to creating a world where people and nature thrive

in harmony.

Regenerative agriculture -- Sustainable farming approach focused

on improving soil health, biodiversity, water cycles, and carbon

sequestration while maintaining or increasing agricultural

productivity.

Remediation and Compensation Procedure (RaCP) -- A set of

rules and steps that companies must follow if they have cleared

land in violation of sustainability standards (like RSPO rules).

Responsible Plantations Policy (RPP) -- The Group’s highest-level

sustainability policy, which defines the guidelines for SIPEF’s

management of new developments, as well as continuous

improvement in the management of existing plantations.

Responsible Purchasing Policy (RPuP) -- The Policy guides the

Group’s responsible sourcing requirements for engaging with

third-party FFB suppliers (restricted to smallholders), and

sets out criteria for working with them towards certification.

Risk management -- Risk management is the structured handling

of risks (by audit & control, procedures, manuals, committees,

etc.).

Roundtable on Sustainable Palm Oil (RSPO) -- RSPO is a non-profit

global certification scheme that unites stakeholders from the

palm oil industry: palm oil producers, processors or traders,

consumer goods manufacturers, retailers, banks/investors,

and environmental and social NGOs, to develop and implement

global standards for sustainable palm oil. A set of environmental

and social criteria has been developed, with which companies

must comply in order to produce Certified Sustainable Palm

Oil (CSPO). When properly applied, these criteria can help to

minimise the negative impacts of palm oil cultivation on the

environment and communities in palm oil producing regions.

The RSPO members have committed to produce, source and/

or use sustainable palm oil certified by the RSPO.

469

SIPEF Integrated Annual Report 2024 Glossary

RSPO New Planting Procedure (NPP) -- The RSPO New Planting

Procedure was introduced with the aim of providing a frame-

work for the responsible development of new land for oil palm

cultivation. The NPP includes a set of assessments and verifi-

cation activities carried out by both growers and certification

bodies before any new oil palm development commences.

The assessments ensure that new oil palm plantings will not

negatively impact primary forest, High Conservation Value

(HCV) areas, High Carbon Stock (HCS), fragile and marginal

soil, or local peoples’ lands. A successful NPP ensures that all

indicators of the RSPO Principles and Criteria (P&C), related

to new developments, are being implemented.

Segregated (SG) -- A supply chain model where RSPO certified

palm oil products are kept separate from non-certified palm oil

throughout the supply chain, while permitting the mixing of

certified products from dierent certified sources.

Social Impact Assessment (SIA) -- Systematic process of identify-

ing, evaluating, and managing the positive and negative social

eects, both intended and unintended, of planned interventions

such as policies, programs, or projects, and any resulting social

changes caused by those intervention.

Standard Operating Procedures (SOP) -- Standard Operating

Procedures are step-by-step instructions compiled by an

organisation or company on how a process works, in order to

help employees carry out routine operations.

Sustainability Policy Transparency Toolkit (SPOTT) -- The

Sustainability Policy Transparency Toolkit is a free, online

platform supporting sustainable commodity production and

trade. By tracking transparency, SPOTT incentivises the

implementation of corporate best practice. SPOTT assesses

commodity producers and traders on their public disclosure

regarding their organisation, policies and practices related to

environmental, social and governance issues.

Total suspended solids (TSS) -- The dry weight of suspended

particles in a sample of water that can be trapped by a filter.

Value Chain -- The full lifecycle of a product, including supply

and distribution.

Zoological Society of London (ZSL) -- Zoological Society of London

is a science-driven conservation charity, working to restore

wildlife in the United Kingdom and around the world.

IFRS terminology

AC -- Amortised Cost (AC) is one of the three classification cate-

gories for financial assets under IFRS 9.

Associated companies -- Entities in which SIPEF has a significant

inﬂuence and that are processed using the equity-method.

Biological assets - bearer plants -- The bearer plants (palm and

rubber trees, banana plants, ...) on which the biological produce

grows.

Biological assets - agricultural produce -- The harvested product

coming from biological assets - bearer plants.

CGU -- Cash Generating Unit or Cash ﬂow Generating Unit

Capital expenditure -- Cash paid for the acquisition of tangible

and intangible assets presented in cash ﬂows from investing

activities, and cash paid on the lease liabilities (excluding

interests paid), presented in cash ﬂows from financing activities.

Earnings per share basic -- Net result for the period (Group share)

/ Average outstanding shares over the period.

Earnings per share diluted -- Net result for the period (Group

share)/ [Average number of outstanding shares over the period

- own shares + (number of possible new shares that have to

be issued within the framework of the existing outstanding

stock options plans x dilution eect of the stock option plans)].

FVOCI -- Fair Value through Other Comprehensive Income

(FVOCI) is one of the three classification categories for financial

assets under IFRS 9.

FVPL -- Fair Value through Profit or Loss (FVPL) is one of the

three classification categories for financial assets under IFRS 9.

GAAP -- The Generally Accepted Accounting Principles (GAAP)

are a set of accounting rules, standards, and procedures issued

and frequently revised by the Financial Accounting Standards

Board (FASB).

IAS -- International Accounting Standards

470 The connection to the world of sustainable tropical agriculture

IFRS -- International Financial Reporting Standards are a set

of accounting rules adopted by the European Union for the

financial statements of public companies that are intended

to make them consistent, transparent, and easily comparable

around the world. The IFRS are issued by the London-based

Accounting Standards Board (IASB) and address record keep-

ing, account reporting, and other aspects of financial reporting.

Since 2005, all publicly listed companies within the European

Union need to comply with these standards in their external

financial reporting.

Investments -- Investments is the amount paid for the acquisition

of ‘intangible assets’ and ‘property, plant and equipment’.

Reference is made to the consolidated cash ﬂow from investing

activities.

IRS -- Interest Rate Swap

Joint Control -- Joint control is the contractually agreed sharing

of control of an arrangement, which exists only when decisions

about the relevant activities require unanimous consent of the

parties sharing control.

Joint ventures -- Entities that are controlled jointly. These compa-

nies are consolidated following the equity method.

KUSD -- Rounded o of financial figures to the nearest thousand

in United States dollar.

Level 1 -- Level 1 inputs are quoted prices (unadjusted) in active

markets for identical assets or liabilities that the entity can

access at the measurement date.

Level 2 -- Level 2 inputs are inputs other than quoted prices includ-

ed within level 1 that are observable for the asset or liability

either directly or indirectly.

Level 3 -- Level 3 inputs are unobservable inputs for the asset or

liability.

Management report -- The management reporting of the group

is a monthly internal reporting of the economic figures of the

group companies, (jointly) controlled by SIPEF. The economic

figures consist of both financial - and performance figures. The

presentation of the figures is done by operational segment.

Materiality -- Organisations are faced with a wide range of topics

on which they could report. The relevant topics are those that

may reasonably be considered important for reﬂecting the

organisation’s economic, environmental, and social impacts,

or inﬂuencing the decisions of stakeholders, and therefore

potentially merit inclusion in an annual report. Materiality is

the threshold at which topics become suciently important

that they should be reported.

Net financial position/debt -- Cash and cash equivalents + other

investments and deposits - interest bearing financial debts at

more than one year - interest bearing financial debts within

the maximum of one year -. It is a key measure of the strength

of the Group’s financial position and is widely used by credit

rating agencies.

OCI -- Other Comprehensive Income. Revenues, expenses, gains,

and losses that are excluded from net income on the income

statement.

Segment -- A segment is an aggregation of operating activity lines to

report on. More information about the dierent SIPEF segments

and their nature can be found in the financial statements of this

Integrated Annual Report.

SPA -- Sale and Purchase Agreement

Subsidiaries -- Fully consolidated entities under SIPEF control.

USD -- The United States dollar is the legal tender currency of the

United States, and also serves as a global reserve currency in

international trade and financial markets.

WACC -- Weighted Average Cost of Capital

Financial performance measures

EBITDA -- Earnings Before Interest and Taxes, Depreciation, and

Amortisation. EBIT + depreciation and additional impairments/

increases on assets.

Working capital -- Inventories + trade receivables + other receiva-

bles + recoverable taxes - trade payables - payables taxes - other

payables.

471

SIPEF Integrated Annual Report 2024 Glossary

Responsible

persons

Responsibility for

the financial information

Petra Meekers

managing director

Bart Cambré

chief financial ocer

Declaration of the persons responsible

for the financial statements and

for the management report

Luc Bertrand, chairman and Petra Meekers, man-

aging director declare that, to their knowledge:

 the consolidated financial statements for the

financial year ended on 31 December 2024 were

drawn up in accordance with the ‘International

Financial Reporting Standards’ (IFRS) and

provide an accurate picture of the consolidated

financial position and the consolidated results of

the SIPEF group and its subsidiary companies

that are included in the consolidation.

 the financial report provides an accurate

overview of the main events and transactions

with aliated parties, which occurred during

the financial year 2024 and their eects on the

financial position, as well as a description of

the main risks and uncertainties for the SIPEF

group.

Statutory Auditor

EY Bedrijfsrevisoren BV

Represented by

Christoph Oris,

Borsbeeksebrug 26

2600 Antwerpen (Berchem)

Belgium

472

The connection to the world of sustainable tropical agriculture

For further

information

SIPEF

Kasteel Calesberg

Calesbergdreef 5

2900 Schoten

Belgium

RPR: Antwerpen

VAT: BE 0404 491 285

Website: www.sipef.com

For more information about SIPEF:

Tel.: +32 3 641 97 00

Dit Geïntegreerd Jaarverslag is ook verkrijgbaar

in het Nederlands.

Translation: this Integrated Annual Report is

available in Dutch and English. The Dutch version

is the original; the other language version is a free

translation. We have made every reasonable eort

to avoid any discrepancies between the dierent

language versions. However, should such discrep-

ancies exist, the Dutch version will take precedence.

The ocial Integrated Annual Report of the SIPEF

group in ESEF format can be found on the SIPEF

website, under the section ‘investors’. All other

formats are considered to be unocial versions of

the Integrated Annual Report.

Concept and realisation: Focus advertising

Photography:

Portraits of the chairman, the members of the

board of directors and the members of the exec-

Printed in Belgium by: Inni Group

473

SIPEF Integrated Annual Report 2024

474 The connection to the world of sustainable tropical agriculture