40.
INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
The Sustainability Team works closely with senior
management, the operating units, as well as suppliers and
business partners to champion the Group’s sustainability
programmes and projects. Our CEO and board members
are directly involved in reviewing the progress and direction
of the Group’s sustainability management efforts. Standard
Operating Procedures are put in place to enable all
employees to deliver on the Group’s policy commitments.
To manage the procurement and traceability of our raw
materials, the Group’s Palm Oil Sourcing Policy and a set
of Responsible Supplier Guidelines have been enforced
since 2014.
A centralised Sustainability Management Information System
(SMIS), which utilises real-time data captured from our SAP
system, allows the Sustainability Team to monitor the Group’s
progress against its sustainability targets.
For more information on our Sustainability Policies,
please see
MANAGING OUR KEY MATERIAL ISSUES
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Material issue:
Governance including transparency, business integrity
and anti-corruption, risk management
We adhere closely to the principles and guidelines of the
SGX’s Code of Corporate Governance 2012, the IndoAgri
Code of Conduct as well as other applicable laws, rules and
regulations. To support ethical and accountable business
conduct, our
Growing Responsibly
Programme sets the
policy framework for high standards of corporate governance,
responsibility and professional integrity. Senior management
are directly involved in the supervision of data collection that
goes towards our annual sustainability reporting.
IndoAgri has also been fully supportive of the ongoing drive by
Indonesian and Singaporean authorities in haze management
and responsible farming practices. To date, the Group has not
received any warning or notice of legal proceedings under the
Transboundary Haze Pollution Act in 2015.
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Material issue:
Carbon management and deforestation
Environmental footprint
Yield maximisation
The agriculture industry in Indonesia relies heavily on
certain climatic conditions, such as sufficient rainfall, for
healthy plantation estates. GHG emissions are among the
factors that adversely impact our air quality, ecosystems
and climate. Sustainable practices relating to forestry, peat
lands, agriculture, energy, industry, transportation and
waste management can help to mitigate the risks of climate
change.
Our estates, refineries and mills are guided by sound
environmental management practices. Beyond complying
with local regulations, the Group is motivated to enhance
energy efficiency, increase productivity and be a good steward
of natural resources.
Our industry faces complex environmental issues, including
deforestation, biodiversity, irrigation, soil management,
chemical handling and preservation of genetic plant quality.
To continue achieving good yields, we must be ready to adapt
and change the way we manage the operations.
Our
Sustainable Agriculture and Products
Programme
drives high standards in the adoption of sustainable practices
in crop cultivation, palm oil refining and milling. Our factories
comply with Indonesia’s environmental regulation. As part
of our work on deforestation and habitat loss, we have
appointed RSPO-accredited assessors to evaluate the High
Conservation Value (HCV) areas in our oil palm estates.
We have also introduced guidelines on the management of
HCV areas, and a policy that prohibits any new planting on
peatlands and HCV areas.
Our
Smallholders
Programme contributes to our
environmental efforts through engaging our plasma farmers.
The objective is to enable our smallholders to promote
stronger yields and improved cost control through the sharing
of good agronomic practices and other innovative processes.
MANAGING
SUSTAINABILITY
HCV signboard in the estate as a reminder not to disturb or hunt the
animals, and protect the HCV area.
