PALMOILMAGAZINE, BALI – The agricultural sector plays a dual role in the climate change issue. According to Anita Neville, Chief Sustainability and Communications Officer of Sinar Mas Agribusiness & Food, agriculture and food systems are both “contributors” and “victims” of the ongoing climate crisis.
“As a contributor, agriculture accounts for 30% of global greenhouse gas (GHG) emissions. This is a significant carbon footprint for our planet. However, at the same time, the sector is highly vulnerable to the impacts of climate change and biodiversity loss,” Neville stated during the first day of the 7th International Conference on Oil Palm and Environment (ICOPE) in Bali, attended by Palmoilmagazine.com on Wednesday (12/2/2025).
She added that the increasing Climate Risk Index indicates that many countries in the Asia-Pacific region rank among the 40 most vulnerable to climate change. “Rural communities and farmers are the most affected. In Indonesia, for example, more frequent floods have disrupted supply chains, logistics, and overall productivity,” she explained.
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Neville also highlighted the consistent rise in high temperatures affecting palm pollination and behavior. “We haven’t even begun assessing the impact of extreme heat days on labor productivity and the implications for automation and mechanization in our industry,” she added.
As Chief Sustainability Officer, she is often asked how the company’s sustainability strategy aligns with its business strategy. “My answer is always the same: sustainability is our business strategy. Climate change and biodiversity loss are existential threats to every business worldwide, including in Indonesia. This is a business imperative,” she emphasized.
To address these challenges, Sinar Mas Agribusiness & Food has taken concrete steps. “We have intensified our investigation into our emissions footprint, improved the quality and granularity of the data we collect, and aligned our approach with internationally recognized best practices,” Neville explained.
Using 2022 as the base year, the company mapped its emissions across Scope 1, 2, and 3 throughout 2023 and set targets aligned with the Science Based Targets Initiative (SBTi). “This provides clear direction on how to reduce our carbon footprint,” she stated.
Supply Chain Challenges
Neville revealed that approximately 77% of the company’s carbon footprint comes from Scope 3 emissions, which involve third-party supply chains. “This is a major challenge, but also an opportunity. If 78% of our carbon footprint stems from the supply chain, then our solutions can also benefit our customers, most of whom are global food brands,” she noted.
She pointed out that around 90% of emissions from fast-moving consumer goods (FMCG) brands fall under Scope 3. “This is a shared responsibility. My challenge in addressing Scope 3 is also my customers’ challenge. Our solutions can be their solutions. We are in this together,” Neville stressed.
She affirmed that reducing the carbon footprint is not just a responsibility but also an opportunity to create a competitive advantage. “This is an issue involving the entire supply chain. With the right collaboration, we can develop sustainable and profitable solutions for all stakeholders,” she concluded.
With a strong commitment to sustainability, Sinar Mas Agribusiness & Food aims to set an example for other industries in tackling climate change and biodiversity challenges. (P2)
