SUSTAINABILITYAT INDOAGRI Programmes direct the Group’s efforts across a range of material sustainability topics. In addition, the sustainability team coordinates the initiatives underlying the achievement of certifications such as ISPO and PROPER. Assessment and reporting Our SAP system and the sustainability information system are used to collate data and monitor progress against the Group’s key sustainability targets. Evaluation is carried out via regular audits, performance trend analysis and stakeholder feedback. SUSTAINABILITY GOVERNANCE IndoAgri’s Board of Directors are actively involved in evaluating the Group’s sustainability risks and opportunities, reviewing the material ESG topics, and overseeing the management and reporting processes. The Board is updated on a quarterly basis through the Audit and Risk Management Committee on relevant sustainability risks and concerns. The CEO steers and updates the Board on the Group’s sustainability performance, and is personally involved in all discussions and correspondences relating to sustainability. The CEO is supported by the management team, an ERM unit, R&D team, as well as sustainability representatives from all business units. The Group’s commitments and procedures around deforestation, land rights, peatland, burning, smallholders and human rights are benchmarked against the ISPO certification standards and international best practices, and covered in our Sustainable Agriculture and Labour Policies. The ISPO certification is a mandatory and legally binding certification system for all oil palm growers in Indonesia. OUR MATERIAL SUSTAINABILITY TOPICS Our sustainability strategy and management approach are designed to drive performance improvements on the economic and ESG topics that are most significant to our operations and stakeholders. We engaged an external consultant to conduct a desktop materiality review in 2020, which saw the introduction of five new material topics as well as refreshed terminology to better reflect the significance of these topics and increase alignment with stakeholders and peers. In 2023, our Sustainability Think Tank and Board reviewed the current set of material topics and determined that they remain relevant to IndoAgri and its stakeholders with the exception of “pandemic resilience” which was removed due to the resumption of business-as-usual. The 14 material topics are: • protection of forests, peatlands and biodiversity; • fire control and haze prevention; • climate change and GHG emissions; • water, waste and effluents; • use of fertilisers, pesticides and chemicals; • responsible business conduct; • community rights and relations; • occupational health and safety; • smallholder engagement and livelihoods; • supply chain traceability and transparency; • sustainability certification; • product quality and safety; • yield resilience and innovation; and • human, child and labour rights. STAKEHOLDER ENGAGEMENT Regular stakeholder dialogues have been integral to the development of our Sustainable Agriculture Policy, the delivery of our commitments, and our success in sustainable palm oil production. Our key stakeholder groups are: employees, customers, investors, government and civil organisations, and local communities. We connect, engage and collaborate with our respective stakeholder groups through different platforms to strengthen mutual interests and establish common goals. For product safety management, the customer engagement initiatives include production audits, public seminars and customer satisfaction surveys. To support our ISPO-certified production targets, we have established processes for regular contact with suppliers, customers, grower cooperatives and government ministries. As our agribusiness operations are vital to the livelihoods of many who live in communities near our plantations, we aim to advance their resilience and socio-economic development. To uphold FPIC, particularly with respect to land acquisition involving local villages, weconduct a Social Impact Assessment to understand community needs before undertaking any new development. We also promote open negotiation and inclusive decision-making with local communities. Our engagement efforts come under our Solidarity Programme, which governs activities ranging fromfire-control awareness to education, health, infrastructure, micro-enterprise, farmer training, culture and humanitarian efforts. The full details of our management approach, materiality assessment, stakeholder engagement, sustainability programmes and performance can be found in our latest Sustainability Report and website. http://www.indofoodagri.com/sustainability-home.html GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION Indofood Agri Resources Ltd 28
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