When businesses discuss sustainability, carbon emissions often take centre stage. Companies increasingly measure their greenhouse gas emissions, set climate targets, and explore ways to reduce their environmental footprint. However, addressing climate change requires more than reducing emissions alone. Forests play a fundamental role in maintaining the balance of natural ecosystems. They absorb and store carbon, support biodiversity, regulate water cycles, center protect soil, and sustain the livelihoods of millions of people. When forests are degraded or destroyed, these interconnected environmental and social benefits are also threatened. For businesses, forest protection is not simply an environmental concern. It is closely linked to climate resilience, responsible sourcing, supply chain transparency, and long-term business sustainability. Understanding the connection between forests and sustainability is an important step towards building a more comprehensive approach to environmental responsibility. 1. Forests Do More Than Store Carbon Forests are widely recognised for their role in absorbing carbon dioxide from the atmosphere. Through photosynthesis, trees absorb carbon and store it in their trunks, branches, roots, and surrounding soils. This makes forests an important component of global climate regulation. However, their contribution extends far beyond carbon storage. Healthy forests provide habitats for wildlife, maintain soil stability, regulate water flows, and support the natural processes that sustain agriculture and other economic activities. Forest ecosystems also help regulate local temperatures and influence rainfall patterns. When forests are cleared or degraded, these functions can be disrupted. Deforestation can release stored carbon, reduce the capacity of ecosystems to absorb future emissions, and increase pressure on biodiversity and water resources. This is why climate strategies that focus exclusively on emissions reduction may overlook other environmental risks. Forest protection should therefore be considered an integral part of a broader sustainability strategy, alongside decarbonisation, biodiversity conservation, and responsible resource management. 2. Biodiversity Loss Is a Business and Environmental Risk Forests are among the world's most important ecosystems for biodiversity. They provide food, shelter, and breeding grounds for countless species, including plants, animals, fungi, and microorganisms. Forest degradation and habitat loss can disrupt ecological relationships and threaten species survival. These impacts can extend beyond wildlife, affecting the ecosystem services that people and businesses depend on. For example, agricultural production may depend on pollination, healthy soils, reliable water supplies, and natural pest regulation. Changes to surrounding ecosystems can undermine these functions and create additional challenges for farmers and agricultural supply chains. Businesses operating in forestry, agriculture, food production, and commodity trading may be particularly exposed to these risks. Protecting forests and their biodiversity can help maintain ecosystem functions, support more resilient production systems, and reduce the environmental impacts associated with land use. For businesses, this means that biodiversity considerations should not be separated from climate action or supply chain management. They are interconnected elements of a responsible sustainability approach. 3. Forest Protection Strengthens Supply Chain Resilience Deforestation can pose significant challenges for companies that rely on agricultural and forest-based commodities. Palm oil, timber, paper, coffee, cocoa, rubber, and other commodities may be linked to land-use change and deforestation risks, depending on how and where they are produced. As buyers, regulators, investors, and consumers increasingly scrutinize environmental practices, businesses may face growing expectations to demonstrate the origins of their raw materials and how they are produced. Limited visibility into sourcing locations can make it difficult to identify environmental risks, verify supplier information, and demonstrate compliance with applicable requirements. A more transparent supply chain can help businesses identify these risks earlier and make more informed sourcing decisions. Practical measures include: Mapping suppliers and sourcing locations. Improving traceability of raw materials. Assessing deforestation and land-use risks. Strengthening supplier due diligence. Maintaining reliable documentation and verification records. Engaging suppliers and smallholders to improve environmental practices. These measures can help companies improve supply chain visibility and support responsible sourcing. Forest protection is therefore not only about conserving natural ecosystems. It is also about strengthening the resilience and credibility of the supply chains that businesses depend on. 4. The Role of Forest Protection in Climate Resilience Forests contribute to climate resilience by helping regulate water cycles, stabilise soils, and reduce certain environmental risks. Forest vegetation can intercept rainfall, while roots help bind soil and support its structure. Depending on the landscape and local conditions, healthy forest ecosystems can help reduce soil erosion, regulate water flows, and protect watersheds. When forests are degraded, landscapes may become more vulnerable to erosion, sedimentation, and disruptions to water availability. The severity of these impacts depends on factors such as topography, soil characteristics, rainfall intensity, and land management practices. These changes can have consequences for agricultural production, infrastructure, water-dependent industries, and surrounding communities. As extreme weather events and climate-related disruptions become important considerations for businesses, protecting natural ecosystems can be part of a broader climate adaptation strategy. However, forest protection is not a substitute for reducing greenhouse gas emissions. Both actions are necessary to address different dimensions of the climate challenge. Companies should therefore consider forests within their broader environmental risk assessments, alongside emissions reduction, water stewardship, and climate adaptation planning. 5. Deforestation Regulations and Responsible Business Practices Forest protection is also increasingly relevant to international trade and corporate supply chain management. One important example is the European Union Deforestation Regulation (EUDR), which sets requirements for covered commodities and certain derived products placed on the EU market or exported from it. The regulation addresses commodities including cattle, cocoa, coffee, oil palm, rubber, soya, and wood, as well as specified products derived from them. Depending on the applicable requirements, relevant operators and traders may need to demonstrate that covered products meet the regulation's deforestation-free criteria, comply with relevant legislation in the country of production, and are supported by the required due diligence information. For businesses connected to Indonesian agricultural and forestry supply chains, understanding the regulation's scope and applicable implementation dates is important. Preparing for deforestation-related requirements may involve: Identifying products and commodities within the regulation's scope. Mapping relevant suppliers and production locations. Collecting and verifying geolocation information where required. Assessing deforestation and legality risks. Establishing appropriate due diligence procedures. Maintaining supporting information and documentation. It is important to distinguish regulatory compliance from voluntary sustainability certification. Certification can support certain sourcing and assurance processes, but it does not automatically replace the legal obligations applicable under EUDR or other regulations. Beyond compliance, stronger traceability and responsible sourcing practices can help businesses respond to customer expectations and improve their understanding of environmental risks throughout their supply chains. 6. Moving Towards Nature-Positive Business Practices Traditional corporate climate strategies often focus on measuring emissions and reducing carbon intensity. While these actions remain essential, a more comprehensive sustainability approach also considers how business activities affect nature. This is where the concept of nature-positive business becomes relevant. A nature-positive approach seeks to halt and reverse the loss of nature, including biodiversity and ecosystem integrity. In practice, this requires businesses to understand their impacts and dependencies on natural ecosystems and take credible action to address material risks. For companies with land-intensive operations or commodity-based supply chains, this may involve: Assessing nature-related impacts and dependencies Identify how business activities interact with forests, biodiversity, soil, and water resources. Preventing deforestation and ecosystem conversion Establish responsible sourcing policies and appropriate controls to avoid sourcing from prohibited or high-risk areas. Improving supply chain transparency Use traceability systems and supplier assessments to improve visibility over sourcing locations and production practices. Supporting restoration and conservation Where appropriate, work with credible partners and local stakeholders to support ecosystem restoration and forest conservation initiatives. Monitoring and reporting progress Establish measurable indicators and maintain reliable evidence of environmental performance. These actions should be based on credible data, appropriate safeguards, and measurable outcomes rather than broad environmental claims. Nature-positive business practices can help organisations move beyond isolated environmental initiatives towards a more integrated approach to sustainability. 7. What Businesses Can Do to Support Forest Protection Businesses do not need to wait for a major regulatory change to begin addressing deforestation risks. They can start by understanding their environmental impacts and the origins of the materials they use. The following steps provide a practical starting point. Step 1: Identify exposure to deforestation risks Review products, raw materials, sourcing regions, and business activities that may be associated with deforestation or ecosystem conversion. Step 2: Assess suppliers and sourcing locations Gather relevant supplier information and evaluate environmental risks throughout the supply chain. Step 3: Strengthen traceability and documentation Establish systems to record sourcing information, verify relevant claims, and maintain supporting evidence. Step 4: Integrate forest protection into sustainability policies Connect responsible sourcing commitments with procurement procedures, supplier engagement, risk management, and environmental objectives. Step 5: Monitor performance and improve continuously Review supplier data, assess progress against defined objectives, and update risk management measures as circumstances change. The right approach depends on the company's industry, supply chain structure, regulatory exposure, and sustainability priorities. By integrating forest protection into everyday business decisions, companies can take a more proactive approach to managing environmental risks and supporting responsible production. Sustainability Must Go Beyond Carbon Reducing greenhouse gas emissions remains essential to addressing climate change. However, long-term sustainability also depends on protecting the natural ecosystems that support biodiversity, water security, soil health, and human livelihoods. Forests are central to this effort. Protecting them can help mitigate climate change, strengthen ecosystem resilience, and support more responsible supply chains. For businesses, the challenge is to translate these environmental priorities into practical action through better risk assessment, transparent sourcing, effective traceability, and credible sustainability commitments. A comprehensive sustainability strategy should not only ask how much carbon a business emits, but also how its activities affect the natural systems on which its future depends. At Peterson Solutions Indonesia, understanding the relationship between environmental responsibility, supply chain transparency, and evolving sustainability requirements can help businesses take informed steps towards more responsible operations.

Jakarta, 7 October 2026 | Peterson Solutions Indonesia attended the Indonesia International Sustainability Forum (ISF) 2026, held on 6–7 October 2026 at Hotel Indonesia Kempinski Jakarta. The forum brought together government representatives, business leaders, investors, international organisations, experts and other stakeholders to discuss practical solutions and collaboration for sustainable growth. The participation reflects Peterson Solutions Indonesia’s commitment to staying informed about the latest developments in sustainability, climate action, responsible business practices and the transition towards a more resilient and low-carbon economy. Day 1 – Powering Low-Carbon Growth On 6 October 2026, Peterson Solutions Indonesia joined discussions under the theme “Powering Low-Carbon Growth”, focusing on how the low-carbon transition can strengthen economic competitiveness, encourage investment and create long-term value. The programme covered key areas including energy security and resilience, low-carbon industries, and resilient food and nature systems. The sessions explored topics such as energy security in the low-carbon era, green industry as a growth strategy, and the transformation of food systems within planetary boundaries. The thematic discussions also addressed responsible forestry, climate resilience, renewable energy, green power transitions and blue carbon financing. Day 2 – Enabling a Resilient & Liveable Future On 7 October 2026, the forum continued under the theme “Enabling a Resilient & Liveable Future”, focusing on the conditions needed to scale sustainable and inclusive growth. Key areas included water security and resilience, liveable cities and clean mobility, and mobilising finance, innovation and talent. Discussions covered issues including water security, competitive and liveable cities, sustainable infrastructure, climate-resilient development, green industrial policy, circular packaging, clean air, resilient agricultural supply chains and sustainable finance. Through its participation, Peterson Solutions Indonesia gained valuable insights into emerging sustainability trends, policy directions and practical approaches being discussed by stakeholders across Indonesia and internationally. These insights are relevant to the company’s work in supporting organisations in addressing sustainability, responsible supply chains, environmental challenges and evolving market expectations. Peterson Solutions Indonesia’s participation in ISF 2026 demonstrates its commitment to remaining up to date with important sustainability developments and actively engaging with issues that shape the future of responsible business. By continuously following global and national sustainability discussions, Peterson Solutions Indonesia aims to ensure that its knowledge, perspectives and services remain relevant to the evolving needs of its clients and stakeholders.

EUDR for FMCG Companies: Supply Chain Challenges & Readiness From Regulatory Compliance to Supply Chain Readiness The European Union Deforestation Regulation (EUDR) is becoming increasingly important for companies operating global supply chains. For the Fast-Moving Consumer Goods (FMCG) sector, EUDR is not simply an environmental requirement. It can influence how companies select and evaluate suppliers, ensure raw material traceability, manage supply chain data, conduct risk assessments, and ensure that products are ready for the European Union market. With the current implementation date for large and medium-sized companies set for 30 December 2026, FMCG companies need to move beyond simply understanding EUDR and begin building supply chains that are ready to meet due diligence requirements. What Does EUDR Actually Require? There are three key requirements that relevant products must fulfil: EUDR Compliance Requirements 01 | Deforestation-Free: Products must not originate from land that has been subject to deforestation or forest degradation as defined under the regulation. 02 | Legal Production: Commodities must be produced in accordance with the relevant legislation in the country of production. 03 | Due Diligence Statement: Products must be covered by a Due Diligence Statement (DDS) before being placed on the European Union market or exported from the EU. Why Is EUDR Relevant to FMCG Companies? EUDR covers seven key commodities associated with deforestation: Cattle Cocoa Coffee Oil palm Rubber Soya Wood For FMCG companies, these commodities may enter the supply chain through a wide range of raw materials, ingredients, packaging materials and other products. This makes supply chain visibility and traceability increasingly important. Challenges for FMCG Companies in Addressing EUDR One of the key changes introduced by EUDR is the increased need for traceability down to the production location. Companies need to understand the following supply chain: Finished Product → Raw Material → Supplier → Processor/Trader → Production Location The implementation of EUDR presents several challenges for FMCG companies, particularly due to the complexity of their supply chains and the number of parties involved. Key challenges include: Complex Supply Chains FMCG companies typically operate long and complex supply chains involving multiple suppliers, processors, traders and producers. This can make it difficult to trace commodities back to their actual production locations. Limited Traceability Available information often only covers the supplier's name or country of origin. However, EUDR readiness requires greater visibility of the commodity's origin and production location. Geolocation Data The availability of accurate geolocation data is one of the key challenges. Companies need to ensure that production location information is available, accurate and traceable to support the due diligence process. Supplier Readiness The level of readiness can vary significantly between suppliers. Not all suppliers have established traceability systems, adequate documentation or the capability to provide the data required to meet EUDR requirements. Data Quality & Consistency Data collected from different suppliers may vary in format, completeness and quality. Companies therefore need to ensure that supply chain data is consistent, accurate, verifiable and properly documented. Risk Assessment & Mitigation Companies need to assess risks related to deforestation, legal production and their wider supply chains. Where risks or information gaps are identified, appropriate mitigation measures need to be determined and implemented. Cross-Functional Coordination EUDR is not solely the responsibility of the Sustainability team. Successful implementation requires collaboration across Procurement, Supply Chain, Quality, Legal/Compliance, IT/Data, Sustainability and Management to ensure that processes, data and documentation are managed effectively. What Should FMCG Companies Prepare? Companies can begin their EUDR preparation through five key stages: From Compliance to Supply Chain Resilience EUDR presents new challenges for FMCG companies. However, preparing for EUDR can also provide an opportunity to strengthen broader business systems and supply chain resilience. Better Traceability Companies can gain greater visibility of the origin of their raw materials. Better Supplier Management Companies can identify suppliers with gaps in traceability, documentation and data readiness. Better Risk Management Deforestation, legality and supply chain risks can be managed in a more systematic and structured manner. Better Data Quality Supply chain information can become more structured, consistent and verifiable. Better Market Readiness Companies can become better prepared to meet the requirements of customers and markets applying deforestation-related standards. Stronger Sustainability Governance EUDR can be integrated into broader sustainability, responsible sourcing, procurement and risk management systems. Referensi : 2. European Commission - EUDR ImplementationEuropean Commission - EUDR Implementation Resources 3. European Commission - Understanding Due DiligenceEuropean Commission - Understand Due Diligence 4. EUR-Le- Regulation EU) 2023/1115EUR-Le - EUDR Consolidated Regulation 5. European Commission - EUDR Information SystemEuropean Commission - EUDR Information System

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Peterson has a deep understanding of the entire supply chain, starting from agricultural production to raw material processing through to transportation and market distribution of the products. About Us The Full Story At Peterson, we bring deep expertise across the entire supply chain, from agricultural production to market distribution. Our advisory division, Peterson Solutions, provides practical, tailored solutions to help businesses navigate challenges and thrive. We specialise in sustainability, guiding companies to create impactful policies, reduce their environmental footprint, and identify meaningful sustainability claims. Our clients range from multinationals and SMEs to farmers' cooperatives, NGOs, and governments. Understanding and managing social and environmental risks is critical to a successful supply chain. We help identify these risks and offer comprehensive, end-to-end solutions that drive sustainable growth and responsible operations. For the world, for ourselves, for our families. 100 Years and Royal Status Growing Together since 1920 2020 is the year we celebrated Peterson and Control Union completing 100 years of being in business and making a difference in the world. Learn More Johan Maris CEO “We recognize that maintaining the trust and confidence of employees, clients and other stakeholders is crucial to the growth and continued success of our business.” GLOBAL PRESENCE One of Peterson's greatest assets is our network of connected offices in more than 70 countries around the globe. With increased knowledge, a firm set of values and sustainable services, we have grown from our initial operations in the Netherlands and spread out throughout world. Learn More Indonesia Team Thriving! Committed to Delivering Value, Driving Growth, and Creating Lasting Impact

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