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Our annual Sustainability Report is the product of our work managing sustainability in our palm oil operations.

Our Sustainability Reports align with the Global Reporting Initiative (GRI) Guidelines – the widely known international best practice framework for this type of company reporting.

We set sustainability goals and targets to improve our performance. We focus on material topics as a way to achieve our long-term goals. Reporting is the last stage of a cycle that begins with Commitment and Planning, and which continues with Action and Assessment for improvement. Reporting communicates in a way that stakeholders expect.

Each report is prepared with due regard to fundamental Report Content Principles (such as materiality and stakeholder inclusiveness) and Report Quality of Information Principles (such as timeliness and comparability).

See below for detail on materiality, impact boundaries, engagement supporting reporting, and Report parameters.

To download our sustainability reports, please click below

 

What Matters Most - Our Materiality Assessment

Our materiality assessment process 2013 – 2017 aligns with reporting principles expected by GRI; it shows our material topics and where the relevant impacts occur in our value chain.

We assess the potential impact on (i) the business and (ii) external stakeholders and the environment.

The foundation assessment of potential risks/opportunities was based on research and a senior management workshop ini 2013. Subsequently, the prioritisation process was informed by other internal meetings, customer engagement, peer reviews, media research, engagement with international NGOs as well as social impact assessments at site level. Notwithstanding our transition to GRI Standards, we account for the Additional Guidance shown on p20 of GRI's Food Processing Sector Disclosure guidance. In this regard, our Report presents our Management Approach and performance relating to sourcing.

Stakeholder engagement through the year provides information for the materiality assessment.

In 2014 and 2015 we revisited and updated the foundation assessment. Our senior management re-validated the issues in 2016 in a process supported by external sustainability consultants who endorsed the decision that the relative importance of material issues is still valid.

[GRI 103-1]

Where Material Impacts Occur

All of our key material topics affect both our internal and external stakeholders to varying degrees. The IFAR Board is an ‘Interest Group’ with relevance to all material topics.

Some impacts will be in the past, and our work is to identify the modern day risk and mitigate it, for example deforestation. Some impacts will be quantifiably uncertain, but a precautionary approach is adopted to mitigate the risk, for example child labour.

To manage and improve performance under the ten material topics identified, our sustainability Programmes seek to embed sustainability in our operations and our supply chains. For each material topic we have set targets. Management and performance are guided by our sustainability policies and commitments.

Material Topics
relevant to IFAR Palm Oil operations
Where Impacts Occur
(impacts can be positive or negative)
Involvement with impacts
(caused, contributed, or directly linked)
Interest Groups
(IFAR Board plus...)
A. Deforestation and land management (including peatland, fire control) Growers in Indonesia: nucleus, plasma, ex-plasma, independent / third party
  • caused (in the past)
  • contributed to
  • directly linked with
International NGOs & governments, local communities
B. Environmental impacts and compliance Plantations, mills, refineries (IFAR and third parties); IFAR transport, distribution.
  • directly linked with
Communities living in/around IFAR estates, local government and NGOs
C. Governance (transparency, integrity, anti-corruption, risk) All IFAR-owned operations
  • directly linked with
Investors and NGOs
D. Land rights including scarce land resources Growers in Indonesia: nucleus, plasma, ex-plasma, independent / third party
  • caused
  • contributed to
  • directly linked with
Local community; government and NGOs
E. Occupational health and safety IFAR-owned plantations, seed stations, mills, refineries, transport, distribution
  • directly linked with
Employees of all types, local labour organisations and government
F. Smallholder engagement and livelihoods Small-scale growers in Indonesia: nucleus, plasma, ex-plasma, independent / third party
  • caused
  • contributed to
  • directly linked with
Smallholders, NGOs and local government
G. Product traceability and sustainable sourcing Plantations, mills, refineries (IFAR and third parties)
  • directly linked with
Suppliers, customers, consumers, ISPO, RSPO, accreditors, auditors
H. Product quality and safety Mills, refineries (IFAR and third parties); distribution channels
  • caused
  • contributed to
  • directly linked with
Suppliers and consumers
I. Yield maximisation including innovation Growers in Indonesia: nucleus, plasma, ex-plasma, independent / third party
  • caused
  • contributed to
  • directly linked with
Investors, NGOs and government
J. Human rights Plantations, mills, refineries (IFAR and third parties); IFAR transport, distribution
  • caused
  • contributed to
  • directly linked with
NGOs and government

[GRI 103-1b]

Engaging With Our Stakeholders

[GRI 102-42 to 102-44]

In addition to our Sustainability Report 'Stakeholder Engagement' subsection, further information is provided below.

Our key stakeholder groups are employees, customers, investors, government and civil organisations, and local communities.

We connect, engage and collaborate with them to strengthen our mutual interests and establish common goals.

Stakeholders
Issues
Methods
Outcome
Frequency
Shareholders investor and bankers Transparency and disclosure of environmental and social performance information Meetings, surveys Updates via sustainability report and company presentation Regular meeting upon request
Customers and consumers Product safety and health For new customers: surveys, approach and product trials.

For existing customers: regular visit/ meeting, bakers forum, customer gathering, customer support line

Provide certification and nutrition information on product label.

A mutually beneficial customer relationship

Monthly regular visit, annual bakers forum
CPO Suppliers Product traceability, price, costs Surveys, audits, one-to-one meetings Collaboration on delivering Policy objectives on sustainable and traceable palm oil Annual socialisation and audit meetings
Local Suppliers Local business opportunities, lack of project management skills Technical assistance to local businesses on construction of civil projects Develop local community projects, e.g. mosques By project
Government and Regulators ISPO certification, local laws and regulation Public forums and regular meetings Comply with local and international regulations, taxes and levies Upon request, invitation
Non-Governmental Groups Biodiversity & rehabilitation, climate change, labour rights, good agricultural practices RSPO process meetings, other NGO meetings e.g IDH, local multi-stakeholders initiatives Social impact analysis, collaboration on Policy objectives and FPIC Upon request
Employees Employee development, working conditions and OHS Training sessions, dialogue with unions, grievance/whistle-blowing processes Invest in employee capability development and OHS programmes Biennial Collective Labour Agreement (CLA) renewal
Smallholders (FFB Supplier) Sustainable agricultural practices, yield, income Development of platforms and projects on socialisation, plasma assistants Provide technical support through training Scheduled project meetings
Local Community Customary rights, FPIC, infrastructure, local enterprise opportunity Regular feedback and awareness meetings, forums for grievance & resolution, other ad hoc engagements Contribution on education, medical facilities and infrastructure and donations Annual community development forum Per request subject to internal management evaluation

About IndoAgri Sustainability Report 2017

Our Sustainability Report 2017 has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. The report also complies with requirements of the SGX –ST Listing Rules Practice Note 7.6 Sustainability Reporting Guide. IndoAgri has not commissioned any third-party assurance on this report. We welcome your feedback or questions at sustainability@indofoodagri.com. Previous reports are available online at www.indofoodagri.com.

Please refer to page 53 of Sustainability Report 2017 for the GRI Content Index.

Scope and profile [GRI 102-49]

IndoAgri Sustainability Report 2017 presents our sustainability performance for 2017. The scope of this report covers our most dominant crop, oil palm, which occupies 82% of our total planted area. There is no significant change to the size, structure or ownership of our operations compared to the previous report.

There was no change to the scope of oil palm plantation, mill and refinery operations covered. A Sustainability Management Information System captures the palm oil sustainability data.

Data for responsible sourcing cover:

  • RSPO-certified/audited plantations (39 sites)
  • RSPO-/PROPER-certified mills (17 out of 26)
  • Refineries (4 out of 5).

The scope of palm oil GHG data is expanded to 11 mills and 30 estates.

The financial and employee data refer to the whole Group (all commodity operations). We report restatements from previous reports relating to energy consumption (page 21) and water (page 25) in refineries [GRI 102-48]. One mill ceased operations in April 2017, its replacement was commissioned in May 2017; partial data from the former, decommissioned site are included.

Sustainability