Natural Habitats Impact Report 2021-2022

Natural Habitats

Impact Report 2021/2022

12

Natural Habitats

Impact Report 2021/2022

13

Carbon Organic palm cultivation can help to cut the amount of carbon released into the atmosphere in multiple ways. ▶ The farmers in our supply network have almost 1,000 hectares of conservation area under management as part of their land, most of which is categorized as “tropical forest”. ▷ This area covers 16.7% of total plantations’ land. ▷ These conservation areas are an important source for carbon sequestration – which means removing and storing carbon from the atmosphere. ▶ Reusing organic farm waste, instead of burning it, prevents carbon dioxide being released back into the atmosphere. ▶ The use of farm waste, compost, or organic fertilizer prevents fertilizer derived CO2 emissions. In 2017, we published our first Carbon Footprint Report By the end of 2022, we will publish a report update to monitor our progress. Biodiversity Organic oil palm growers are responsible for preventing pesticide drift and any cross-contamination between conventionally-grown and their organic-grown crops. Buffer zones are put in place on organic farms that neighbor conventional farms to prevent any contamination from prohibited pesticides, herbicides, and fertilizers. Processing practices The processing of our crude palm oil is kept completely separate from any conventional processing. Before any processing takes place, all equipment is completely cleaned and sanitized. Each step after processing takes place in separated supply chains to safeguard the organic integrity of our ingredients and products. All of the ingredients and products made with our palm oil are routinely and randomly tested in an independent lab to ensure there has been no chemical contamination prior to shipment. We take these steps so that our manufacturers and consumers can trust that the Natural Habitats ingredients used in their products are free from chemicals.

Regenerative Organic Certification At Natural Habitats, we will continue to research and support development around intercropping and regenerative organic agriculture, as we believe it holds many environmental, social, and economical benefits.

▶ Since 2009, we have converted 347 plantations with 12,679 hectares of productive oil palms from conventional to organic practices.

Typically used fertilizer input in oil palm cultivation comprise of nitrogen fertilizers (either ammonium nitrate, ammonium sulphate, urea and/or ammonium chloride), phosphate rock, potassium chloride and kieserite. It is estimated that overall CO2 emissions related to the use of the fertilizer mix equals 17.3kg CO2-eq per ton of fresh fruit bunches. As the farmers in our collection network only apply natural compost to fertilize the soil, like emply fruit bunches and palm fronds, based on estimated 2022 total FFB collection numbers, the emission of 1,193,700kg fertilizer derived CO2 emission is prevented. FERTILIZER DERIVED CO2 EMISSIONS

▶ In 2022, we aim to start converting an additional 4,000 hectares.

▶ In 2022, we will start the process of Regenerative Organic Certification (ROC).

▶ By 2025, we aim to have 10,000 hectares of productive oil palm under certification.

▶ We will: ▷ Prepare for our first audit.

Technical and agronomist support Our team provides support and training to farmers that are committed to converting to organic practices. Since 2009, 300 farmers and their 347 plantations have been converted. Every 4-6 weeks, our team of 6 technicians and agronomical advisors visit our farmers to offer training and support. Our current supply network consists of 87 plantations which cover 5,304 hectares of certified oil palms.

▷ Our internal assessment showed that half of the farmers in our collection network already qualify for ROC certification. ▷ Aim to certify 50% of the plantations from our supply network, and start transitioning the other plantations from 2023.

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