ESG Committee Charter

1. BACKGROUND
   
   1. In management's efforts to increase the long term value of the company, this requires a strategic plan that takes advantage of market opportunities and addresses relevant risks while promoting Environmental and Social values.
   2. In his supervisory role, the director, with senior management, is responsible for ensuring that the company's strategy is appropriate, which will provide equitable sustainable results, while minimizing the associated risks. What increasingly implies the application of Environmental and Social Governance (TKL or ESG), in essence ESG It is about the ways in which value can be created or destroyed in a sustainable manner. For example, the promotion of NDPE (No Deforestation, No Peat and No Exploitation) along with Traceability and Carbon Footprint reduction – issues that impact the entire company, generate traction. A more holistic ESG approach not only manages risk, but also through a Sustainability Report that monitors progress, reassures stakeholders, as well as customers, regulators, customers and potential investors.
2. THE OBJECTIVE
   
   1. The objective of the Environmental, Social and Governance Committee of PT Sumber Tani Agung Resources Tbk' ESG Committee is to support the Company's ongoing commitment, through the coordination functions of the departments of Sustainability, health and safety, corporate social responsibility, corporate governance, sustainability, and other public policy issues related to relevant to the company (collectively, “ESG Issues”) by:
      
      1. Promote the importance of internal stakeholder commitment and understanding for effective ESG
      2. In line with the Sustainability Policy, Occupational Health & Safety, and STA Resources' commitment to support the UN Sustainable Development Goals.
   2. Manage issues of global, national and local trends, such as Climate change, as warned in the latest IPCC report. Proactively manage mitigation processes such as circular economy, Covid supply chain and possible social disruption, to name a few key trends
      
      1. Promote inter-departmental integrated planning, budgeting and execution to minimize ESG risks, improve communication, reduce duplication and waste
      2. Ensure fairness to stakeholders as a whole, including the social environment through excellent community relations with profitable CSR programs.
      3. Develop and leverage the synergies generated by ESG:
         
         1. No Deforestation No Peat No Exploitation No Hunting in HCV area.
         2. Reducing the use of chemicals with agronomic regenerative, recycling & reuse of goods that still have economic value.
3. CROSS-FUNCTIONAL MANAGEMENT COMMITTEE
   Serves as a cross-functional management committee of STA Resources, assisting the executive management of the Company in:
   
   1. Establish a general strategy related to ESG Issues ; and actively communicate with the Board of Directors to be taken into account in policy making.
   2. Develop, implement through a standard budget cycle with monitoring and policy initiatives based on the Strategy;
   3. Supervise communications with employees, investors and stakeholders regarding ESG Issues; and,
   4. Through the Sustainability Reporting Process, monitor and assess developments related to ESG matters and increase the Company's understanding of ESG matters.
4. ESG COMMITTEE MEMBERSHIP
   
   1. The President Director of STA Resources approves the membership of the ESG Committee and the general ESG policies and achievements.
   2. The ESG Committee will include a core team assisted by designated officers and employees. ESG committee membership is adjusted to actual needs. This will include but not be limited to relevant and diverse disciplines: ISPO, environment, health and safety, plantations, transportation, processing, waste management, public relations, investor relations, government affairs, corporate governance, finance and IT, human resources , marketing, sales, and communications.
5. ESG COMMITTEE MEMBERSHIP COMPOSITION
   The current composition of the ESG Committee Membership is
   1. Mr. James Laitch (Chairman of the Committee, specialist)
   2. Aswan Hasibuan (Member, Sustainability Head)
   3. Dr. Rizal Fadli (Member, EHS & Konservasi Manejer)
6. MEETINGS OF THE ESG COMMITTEE
   
   1. ESG Committee shall arrange to meet as frequently as deemed necessary or to meet it’s objectives, with no less than twice a year.
   2. The Chairman of the Committee, acting in coordination with the Board of Directors, while consulting other member(s) of the Committee, shall decide on: frequency and duration of meetings of the ESG Committee, so as to:
      
      1. ensure that the Committee is focused on ESG issues more relevant tothe main stakeholders
      2. organize consistent, formal documentation of agenda, relevant minutes of meeting, with delegation of the agreed upon action plans to the respective departments; such documentation shall be kept by Sustainability Department with duplicates to be organized by (Corporate?) Secretary with support from Finance and IT departments
      3. each action plan or annual event, either on going or those projected, which is initiated by the ESG Committee, with estimated expenses of more than IDR 25mio per year, must be delivered and managed through standard budgeting process at respective departments.
7. LINKAGE OF NDPE PRINCIPLES
   ESG stakeholders in the Palm Oil Value Chain are considered an important part by STA Resources through the application of NDPE principles:
   1. No Deforestation – Conservation & High Carbon Survey and residue patch management
   2. Community stakeholder participation, including monitoring of flora, biomass and fauna
   3. Encourage the use of non-timber forest products, without gardening, using fish poisons or hunting
   4. No peatland development
   5. No Exploitation of Local resources. STA Resources CSR activities, Health and education facilities are used for this purpose
8. RELEVATION OF REDUCE REGENERATIVE & RECYCLE PRACTICES
   The application of the “RRR” principle in operational practice, namely:
   1. Reduce – Traceability helps reduce the carbon footprint of transportation activities
   2. Regenerative-Introduction to regenerative farming practices by Utilizing Empty Fruit Bunches to Reduce the use of chemicals
   3. Recycling- Recycling of Liquid Waste (POME) in the Reactor to produce biogas, electricity and fertilizer, while reducing water pollution.