and expanded our shelf space. This was in addition to supporting the national programme for affordable cooking oils packaged under the government’s MinyaKita brand for lower-income households. To connect with our B2B customers, we held cooking demonstrations and conducted a roadshow across 34 cities to introduce recipe ideas and showcase the versatility of our industrial margarines and shortening. ADVANCING OUR ESG AND TCFD COMMITMENTS As we continue to navigate our agribusiness landscape, our commitment to ESG principles, and our proactive measures underlying the TCFD, have been resolute. Recognising the climate crisis as both a risk and an opportunity, IndoAgri aspires to understand and mitigate its impact. Today, our strategy for managing climate-related risk factors like water scarcity and unpredictable weather patterns encompasses both mitigation and adaptation. Efforts include improving infrastructure, reducing risks of flooding, enhancing energy efficiency, increasing renewable energy use and reducing greenhouse gas emissions. Our R&D programmes extend to developing seed progenies that are resilient to extreme weather conditions. Although it has been a year since we adopted the TCFD framework, in practice, climate-related risks have long been integral to our enterprise risk management (ERM) processes. In 2023, we expanded our ERM framework to include additional physical and transitional risks, thereby improving our ability to identify, assess, manage and monitor our climate-related risks. The ERM team has been working closely with the research, sustainability and operational teams to embed a risk assessment matrix, where the financial and operational impacts are captured, in our mitigative actions. Furthermore, we have continued to diligently track and address our material issues, ensuring that our sustainability programmes are effectively implemented. Our ISPO-certified production was 493,000 tonnes in 2023, representing 85% of our total nucleus CPO production. In Brazil, CMAA achieved Bonsucro certification for 3.5 million tonnes of sugar cane in 2023, accounting for 73% of its total cane production. LOOKING AHEAD Commodity prices are expected to remain highly volatile amid uncertainties fromweather conditions and geopolitical conflicts. Demand is likely to remain subdued due to weaker economic growth and challengingmacroeconomic factors, such as high inflation and interest rates. Our Plantation Division will maintain its emphasis on costcontrol improvements, pursuing innovations that elevate plantation productivity, and prioritising capital investments in critical areas. Efforts will be supported by optimising our manpower resources, reviewing the financing structure to strengthen our financial position, as well as the ongoing mechanisation and IT initiatives. Our refinery operations FFB loading 9 Annual Report 2023 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION
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