Navigating Sustainability Challenges by Leveraging Technologies and Strategies

Bremen Yong is an experienced sustainability veteran with over a decade of experience in the industry. He began as a manager of trademark and licensing and later handled strategic planning and operations. He has also been the Group Head of Sustainability at PT Bumitama Gunajaya Agro. Currently, Yong is the Director of Sustainability at Apical Group.

In an interview with Agri Business Review APAC, Yong highlights the challenges organizations face in facilitating sustainable development goals. He also shares insights into strategies and technological trends that can resolve these challenges.

Can you elaborate on the role of Apical Group in facilitating the achievement of Sustainable Development Goals?

We are deeply committed to facilitating the achievement of Sustainable Development Goals by making sustainability an integral part of our core business operations. Our primary focus is establishing a robust framework grounded in environmental, social, and governance (ESG) considerations.

The initial phase of our strategy involves identifying key challenges that are aligned with both our business objectives and environmental imperatives. Keeping abreast of the latest industry trends, regulatory requirements for example the EU Anti-Deforestation Regulation as well as upcoming ESG requirements and certifications, is crucial for shaping our approach to sustainability and fulfilling our stakeholders’ needs.

We leverage the Apical Sustainability Implementation Framework (A-SIMPLE Framework) to transform this strategy into actionable plans. This comprehensive structure ensures sustainability considerations are thoroughly integrated into our daily operations and supply chain management.

We defined short-, medium-, and long-term goals while conducting rigorous ESG impact assessments. Open dialog is maintained with various stakeholders, including governments, NGOs, suppliers, and customers. Given the industry's complex nature and stakeholders' varied concerns, implementing our sustainability agenda does come with challenges. However, effective leadership and change management are critical to overcoming these hurdles. 

Our focus on sustainability has enhanced our market offerings and enabled us to meet our ESG commitments effectively. The robust governance mechanisms and strategic partnerships with stakeholders along the supply chain help mitigate risks associated with climate change, business operations, and supply chain vulnerabilities. 

What are the predominant challenges related to sustainability that stakeholders and customers encounter in the agricultural sector?

In the agricultural sector, customers struggle with a range of sustainability challenges, each carrying its own set of complexities and implications. Environmentally, issues like ecosystem degradation, deforestation, and climate change are at the forefront. These issues have also become inextricably linked to human rights and social concerns, intensified by global dynamics and social media.

One notable trend is the rise of eco-consumerism, underscoring the need for companies to adapt and align their product offerings with customer expectations. This adaptation has a direct bearing on corporate reputation, thereby becoming a crucial challenge for enterprises.

Supply chain visibility remains another pressing concern. Customer trust hinges on transparent information about product origin, traceability, and sourcing. Transparency is essential for mitigating potential risks that could impact both supply chains and corporate reputation.

We are deeply committed to facilitating the achievement of Sustainable Development Goals by making sustainability an integral part of our core business operations

Since June 2010, there has been a marked emphasis on complying with No Deforestation, No Peat, No Exploitation (NDPE) requirements. This focus was heightened during the 2020 Consumer Goods Forum, where Non-Governmental Organizations (NGOs) pressured global brands to make environmental and biodiversity commitments. While such obligations are undeniably positive, they introduce variability in compliance levels across supply chains. Companies with the means often align with standards like Roundtable on Sustainable Palm Oil (RSPO) certifications, leaving smaller players needing help with compliance challenges. Monitoring mechanisms and supplier engagements has become indispensable for ensuring continuous transformation across supply chains.

In addition, the industry is witnessing a concerted effort towards achieving deforestation-free supply chains. This trend signifies the urgent need for companies to synchronize their supply chain practices with market and industry norms. Balancing these challenges with emerging opportunities becomes vital. The ultimate objective is the transformation of these challenges into advantageous endeavors through targeted, responsible actions.

Are there any upcoming technologies that can transform the agricultural sector?

The industry widely recognizes the importance of technology in advancing sustainability. These technologies are set to reshape sustainable approaches, with AI holding transformative potential for the agricultural sector.

Blockchain has gained attention for enhancing supply chain traceability and encouraging adoption through tokenization. Satellite monitoring and remote sensing are gaining prominence for their role in increasing agricultural yields and effectively managing supply chain risks.

Material innovations are facilitating the shift towards sustainable energy sources. Ongoing advancements in renewable energy and energy optimization aim to mitigate carbon footprints. The potential of artificial intelligence to revolutionize agriculture by boosting productivity, enhancing risk management, and promoting sustainable practices is on the horizon.

What would be your piece of advice to aspiring professionals seeking to pursue a career in the sector?

Social media often magnify perceptions regarding the palm oil sector, so the representations might need to be completed and biased. For those venturing into roles within palm oil, agriculture, or sustainability, the primary step is to avoid preconceptions and engage deeply, gaining firsthand insight into the industry's mechanisms.

This sector’s sustainability realm is rapidly transforming due to new, revised, and impending standards. Over time, regulations have been significant, moving from heightened commercial risks to standardized practices evidenced by certifications like RSPO, MSPO, and ISPO. The industry has improved a lot, exceeded compliance, and embraced endeavors such as global climate initiatives. Continuous evolution and learning are intrinsic to this domain.

Another advice is to recognize that sustainability can be perceived from multiple perspectives. Some individuals see it as a matter of compliance, seeking certifications for reputation enhancement or risk management. Others view sustainability as a communication strategy to improve a company's image. Understand that sustainability involves genuine actions aligned with appropriate values, where communication mirrors actual accomplishments.