GLOSSARY & DEFINITIONS
| Biodiversity | This refers to the variety of different living organisms found in a particular region. |
| Biological Oxygen Demand (BOD) | This is the amount of dissolved oxygen that would be needed by micro-organisms to break down all of the organic matter present in a sample of water at a certain temperature over a specific time period. It is frequently used as an indicator of water quality. |
| Book and Claim System (GreenPalm/PalmTrace) | This system enables buyers looking to support the production of RSPO certified palm oil to purchase certificates from RSPO certified palm oil producers. Each certificate represents one metric tonne of RSPO certified CPO or CPKO. GreenPalm was the platform by which certificates were traded until 1 January 2017 when the RSPO's own platform, PalmTrace, took over. |
| BPJS | Indonesian national insurance scheme |
| Carbon Footprint | A carbon footprint measures the total greenhouse gas emissions caused directly and indirectly by a person, organisation, event or product. |
| CCWG | Climate change working group |
| Chandra Widya Edukasi (CWE) | Specialist palm oil polytechnic |
| Chemical Oxygen Demand (COD) | The measure of the capacity of water to consume oxygen during the decomposition of organic matter in the water. |
| CIF | Cost, Insurance and Freight |
| CO2 equivalents (CO2eq) | Emissions of GHGs other than carbon dioxide are converted to tonnes of carbon dioxide equivalent by estimating the amount of gas emitted and multiplying it by its global warming potential. This allows the potential impact on global warming of the GHG emissions associated with a person, organisation or product to be compared even when they comprise different GHGs. |
| COM | Cakra oil mill |
| CPKO | Crude palm kernel oil |
| CPO | Crude palm oil |
| CR | Critically endangered |
| CSR | Corporate and social responsibility |
| DEI | Diversity, equality and inclusion |
| EFB | Empty fruit bunches |
| EN | Endangered |
| ESG | Environmental, Social and Governance |
| EUDR | EU Deforestation Regulation |
| European Union’s Renewable Energy Directive (EU RED) | This directive, which was introduced in 2009, provides the regulatory framework needed to promote the use of renewable energy by EU member states in order to assist the EU to meet its targets for renewable energy consumption. It also lays out a set of sustainability criteria for the production of biofuels, which must be complied with in order for the consumption of biofuels to contribute towards targets for the use of renewable energy. |
| FCA | Financial Conduct Authority |
| FFB | Fresh fruit bunches |
| FOB | Free On Board |
| FRC | Financial Reporting Council |
| Free, Prior and Informed Consent (FPIC) | This is the principle, which is rooted in international human rights law, that a community has the right to give or withhold its consent to a proposed project that may affect land or natural resources that they customarily own, occupy or otherwise use. It necessitates that communities that may be affected are consulted well in advance of a project commencing, provided with sufficient details regarding the nature of the project to make an informed decision, and that consent is granted without coercion or intimidation. |
| FTE | Full time equivalent |
| Global Reporting Initiative (GRI) | The GRI has developed an internationally recognised framework for organisations to report on their economic, environmental and social performance. |
| Greenhouse Gas (GHG) | A gas which traps the sun’s energy in the earth’s atmosphere. Scientific research suggests that increasing levels of GHGs are causing the climate to change in a variety of ways, including increases in global temperature, sea level rise and changing patterns of drought and flooding events. |
| GHG Corporate Standard | GHG Protocol Corporate Accounting and Reporting Standard |
| Hak Guna Usaha (HGU) | Indonesian land title for agricultural purposes |
| High Carbon Stock (HCS) | High Carbon Stock areas are areas where the above ground biomass has a content of more than 35 tonnes of carbon per hectare. The High Carbon Stock approach, and that of certain certification bodies, is a methodology for distinguishing forest areas (>35 tonnes carbon/hectare) for protection which means that these areas cannot be cleared and/or developed for agriculture, forestry, mining or other land uses. |
| High Conservation Values (HCVs) | HCV areas are natural habitats that are considered to support biodiversity, ecosystem functions or socio-cultural values that are considered to be of outstanding significance or critical importance. |
| ISCC | International Sustainability and Carbon Certification |
| ISPO | Indonesian Sustainable Palm Oil |
| IUCN | International Union for Conservation of Nature |
| Izin Lokasi | Indonesian land allocation, subject to completion of titling |
| KCP | Kernel crushing plant |
| KPI | Key performance indicator |
| LTI | Lost Time Incident |
| Mass Balance | A mass balance system allows certified and uncertified palm oil to be mixed at any stage in the supply chain. An accounting system is used to track the proportion of palm oil at each stage in the supply chain which corresponds to the volume of certified palm oil produced. |
| No deforestation, no peat, no exploitation (NDPE) | Policies and procedures to protect HCS forests and HCV areas. |
| OHS | Occupational health and safety |
| PalmGHG | RSPO calculator for estimating and monitoring GHG emissions |
| Plasma | Smallholder plantation scheme |
| PLN (Perusahaan Listrik Negara) | Indonesian state electricity company |
| POM | Perdana oil mill |
| POME | Palm oil mill effluent |
| PPMD | Program Pemberdayaan Masyarakyat Desa (smallholder scheme) |
| PROPER | Pollution Control, Evaluation and Rating |
| REA Kon | REA's conservation department |
| REA Mart | Employee cooperative shops |
| RSPO | Roundtable on Sustainable Palm Oil |
| RTE | Rare, threatened and endangered |
| SBTi | Science Based Targets initiative |
| SEARRP | South East Asian Rainforest Research Partnership |
| SECR | Streamlined energy and carbon reporting |
| SEnSOR | Socially and Environmentally Sustainable Palm oil Research |
| Social Impact Assessment (SIA) | An independent assessment of the socio-economic impact of development activity to measure and mitigate potential negative impacts. |
| SOM | Satria oil mill |
| SPOTT | Sustainable Palm Oil Transparency Toolkit |
| Stakeholders | An individual or group with a legitimate and/or demonstrable interest in, or who is directly affected by, the activities of an organisation and the consequences of those activities. |
| Sustainability | The creation of the environmental, social and economic conditions necessary to enable something to continue for the foreseeable future. |
| TCFD | Taskforce on Climate-related Financial Disclosures |
| WHO | World Health Organisation |
| ZSL | Zoological Society of London |
Calculations
Employee turnover: the employee turnover rate is calculated by dividing the total number of resignations over the course of the year by the average number of employees in each category (e.g. management, permanent staff) at the end of each month during the year.
Lost time incident rates: the lost time incident rate is calculated by dividing the total number of accidents for which the clinic recommended the patient to take one or more calendar day as rest, by the total number of man hours worked (man days x 7 hours) and multiplied by 200,000. This includes fatalities. The data included relates to REAK’s employees only; independent contractors have not been included.
Accident severity rates: the accident severity rate is calculated by dividing the total number of lost days caused by accidents by the total number of accidents for which the clinic recommends one or more day of rest to be taken. Fatalities are not included.
GHG emissions: REA currently uses the latest version (version 4) of the PalmGHG tool, which became mandatory for RSPO members on 1 January 2020, to calculate our carbon footprint. The PalmGHG calculator is free to download from the RSPO website.