INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
41.
At the same time, our
Growing Responsibly
Programme
provides the framework for stakeholder engagement and
decision-making on environmental risk management and
governance.
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Material issue:
Product traceability and sustainable sourcing
Smallholders including plasma, social conflict resolution
To produce sustainable products, it is important to know
whether the rawmaterials originate from sustainable sources.
In 2015, about 64%of the CPO ingredients used in our refineries
came from our plantations, while third parties supplied the
remaining requirements. For this reason, we have extended
our sustainability efforts beyond our operations to include our
supply chain where we seek to elevate the standards of food
safety, quality and supply chain responsibility using our scale
of production and smallholder engagement.
The Group adheres to the principles and criteria of the RSPO,
and we continue to expand the number of operations that are
RSPO- and ISPO-certified each year. Our Sustainability Report
explains why we have chosen to benchmark our practices to
RSPO standards, supported by ISPO certification.
Our
Safe and Traceable Products
Programme ensures that all
products from our refineries and mills are traceable. We have
introduced a barcode system to ensure that the seeds bred at
our facilities can be identified and tracked.
We are on track to achieving RSPO and ISPO standards by the
end of 2019 for all the Group’s mills, estates and smallholder
plots. As at December 2015, we have attained RSPO and
ISPO certification for 377,000 tonnes and 180,000 tonnes
respectively, representing 38% and 18% of our total CPO
production in 2015. Additionally, 80% of supply to our refineries
is from CPO suppliers who have been pre-audited against the
IndoAgri Palm Oil Sourcing Policy.
Our
Smallholders
Programme offers an effective platform
to engage and collaborate with our smallholders on the
implementation of RSPO certification. We have a partnership
with the Sustainable Trade Initiative (IDH) since 2014 to train
and guide our smallholders on RSPO compliance. Plasma
and ex-plasma farmers supply about 27% of the total FFB
processed in our mills. The first batch of 159 smallholders
started RSPO certification audit in 2015.
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Material issue:
Product quality and safety
The Group considers food safety to be of paramount
importance. Our Safe and Traceable Products Programme
ensures that all our products are traceable, safe and beneficial
for human consumption through the implementation of food
safety management systems and quality assurance processes.
Our refinery teams also ensure that product labels accurately
describe the nutritional properties and brand claims of our
food products. Our factories and processes are fully compliant
with the regulatory requirements pertaining to food quality and
safety, and our brands and products have continued to garner
customer accolades and industry awards in 2015.
A meeting between Company representatives and smallholders in
South Sumatra
Food Safety System Certification 22000 (FSSC) for Tanjung Priok Refinery
