The Board and senior management of IndoAgri are responsible for enforcing the Group's high standards of corporate governance. This is achieved using business management processes. The aim is to deliver organisational performance, accountability and transparency.
As of 31 December 2016, the Board comprised an independent non-executive director who serves as the Chairman, three independent directors, three executive directors, and two non-executive directors, represented by five Indonesians, three Singaporeans and one British. The Board is assisted in its duties by the Executive Committee, Audit and Risk Management Committee, Nominating Committee and Remuneration Committee. The detailed terms of reference of each committee, disclosures on directors' remuneration and significant policies can be found in the Corporate Governance section of our Annual Report www.indofoodagri.com/ir.html
IndoAgri's Enterprise Risk Management (ERM) framework encompasses all operating and functional units. Systematic and coordinated risk management is delivered under the framework by the ERM Unit, which reports to the Executive Committee and an independent Audit Committee, supported by the Board and senior management of IndoAgri. The Unit ensures the timely and accurate identification, assessment, mitigation, reporting and monitoring of risks that can adversely impact IndoAgri's ability to achieve its business objectives. Our Code of Conduct and our whistle-blowing mechanism complement our ERM.
Since there are various risk issues common to ERM and sustainability management, the Head of the ERM Unit also reports on the effectiveness of sustainability strategies and compliance. "Risk owners" and business unit managers conduct quarterly assessment and reports of current and emerging risks, including sustainability risks. The ERM Unit analyses risk reports and proposes an action plan to address specific issues. Risk reports are then shared with the internal audit team, who validates the findings and actions taken.
IndoAgri's sustainability management information system (SMIS) uses real-time data from our SAP system to help track the Group's progress against its sustainability targets. The Group's sustainability progress and performance can be viewed online using a 'dashboard'. We also track the level of RSPO, ISPO, and PROPER 'readiness' at our operations. This means we can make adjustments to any relevant plans during operations meetings in Jakarta which can then be approved by the Board.
The Sustainability Team works with the R&D team to improve agronomic practices and HCV area development. The Enterprise Risk Management Unit supports the team in matters relating to policy development, strategy formulation and issues resolution.
The Sustainability team reports to the CEO and prepares the agenda for the Sustainability Think Tank, comprising the Board members of the Group and its principal subsidiaries. The Sustainability Think Tank meets regularly to review the progress and direction of the Group's sustainability management efforts.
To lend greater focus to the different geographic areas, the Sustainability Team is sub-divided into regional teams, who report directly to the Group's Sustainability Coordinator in Jakarta.
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