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INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
Details on these activities, including our key performance
indicators, are published annually in our Sustainability Report.
The report covers IndoAgri’s oil palm plantations and milling
operations in Indonesia, and is prepared in accordance with
the Global Reporting Initiative (GRI) G4 Guidelines (Core level)
and the AA1000 Accountability Principles (2008) of inclusivity,
materiality and responsiveness. It is our aim to progressively
include all plantation crops into the scope of the report.
To download the Group’s latest Sustainability Report, please
visit
.
MANAGING OUR KEY MATERIAL ISSUES
Governance & Integrity
Material Issue:
Transparency, business integrity, anti-corruption, risk
management
We adhere closely to the SGX’s Code of Corporate
Governance 2012, IndoAgri’s Code of Conduct along with
other applicable laws, rules and regulations. Clear reporting
lines for our executives and sustainability teams, a whistle
-
blowing mechanism, and policies on timely and accurate
public disclosures are amongst our governance and integrity
practices. Our corporate governance structure and information
on the Board and committees are detailed on page 49.
Our
Growing Responsibly
Programme sets the framework
for ethical business conduct, and promotes sustainable
farming across our operations. To standardise sustainability
efforts across the Group, we have installed a Sustainability
Management Information System (SMIS) to track performance
outcomes and monitor progress in real time. We have disclosed
our sustainability performance annually since 2013.
Sustainable Palm Oil Sourcing
Material Issues:
Product traceability/Sustainable sourcing including
RSPO/ISPO
Smallholders
To produce sustainable products, it is important to trace
whether the raw materials originate from sustainable sources.
For this purpose, we have extended our sustainability efforts
beyond our operations to include our supply chain. We adhere
to the principles and criteria of the RSPO, which represents
the highest sustainability benchmark for the palm oil industry.
Our aim is to achieve RSPO certification for our nucleus
plantations, including our smallholders’, by 2019.
Our
Safe and Traceable Products
Programme ensures that
products from our refineries and mills are traceable. It also
ensures that CPO, the main ingredient used in our products,
is sustainably sourced. Currently, our plantations supply
approximately 70% of the CPO used in our refineries. In
2014, we initiated a partnership with the Sustainable Trade
Initiative (IDH) to train and guide these smallholders on
RSPO compliance. We also developed the Palm Oil Sourcing
Policy and Responsible Supplier Guidelines to assist our CPO
suppliers to follow our sustainability efforts. The majority of
them have acknowledged our policy and the audits on our
CPO suppliers to ensure compliance with our policy and
guidelines will start in 2015. Other activities included the
implementation of a barcode system to track the shipments
of FFB from our smallholders, as well as authenticate the
oil palm seeds produced at our research and development
centres, SumBio and PT SAIN, based in Bah Lias, North
Sumatra and Pekanbaru, Riau.
Our
Smallholders
Programme focuses on supporting the
nucleus
-
plasma scheme through the development of inclusive
supply chains. During the year, we embarked on a programme
to RSPO
-
certify our plasma and ex
-
plasma holders, and aim to
welcome the first batch of RSPO smallholders in 2015.
Environmental Performance
Material Issues:
Carbon management & deforestation
Environmental footprint
Yield maximisation including innovation
GHG emissions are a major contributor to climate change. They
can adversely impact our ecosystems, air quality, agriculture,
and human and animal health. Our industry relies heavily on
certain climatic conditions, such as rainfall, for healthy growth
of the plantation crops.
The operations in our estates, refineries and mills are
guided by sound environmental management practices.
As an agribusiness, however, issues such as habitat loss,
deforestation, irrigation, soil management, chemical leachate,
and preservation of genetic plant quality are constant
challenges. We recognise that we must adapt the way we do
business, and be innovative with how we conserve our natural
resources.
Our
Sustainable Agriculture and Production
Programme drives
the adoption of sustainable practices in crop cultivation as well
as refinery and milling operations. We benchmark our efforts
MANAGING
SUSTAINABILITY
