SUSTAINABILITY AT INDOAGRI IndoAgri remains committed to enhancing the maturity of our sustainable business practices. As a plantation operator, we recognise the responsibility to actively address our ESG risk factors while meeting the global demand for sustainable palm oil production. Our focus on sustainable operations is driven by R&D, continuous innovation and productivity enhancements. We also prioritise employee safety and well-being, and provide meaningful livelihoods for local communities through employment, responsible land management and economic contributions. Guided by our Sustainable Agriculture Policy, we ensure responsible operations and traceable produce. The key Policy commitments are as follows: • No Deforestation; • No Planting on Peat, Regardless of Depth; • No Burning; • Preservation of High Conservation Value and High Carbon Stock Areas; • Respect for Labour and Human Rights, including Freedom of Association and Non-Discrimination; and • Free, Prior and Informed Consent (FPIC). Acknowledging the agribusiness sector’s vulnerability to climate change, we have steadily aligned our activities with the TCFD recommendations since 2022. Our enhanced enterprise risk management (ERM) framework now includes additional climate-related physical and transition risks. Through close collaboration between our ERM, research, sustainability and operational teams, we have developed a comprehensive risk assessment matrix covering both financial and operational impacts. This has improved our ability to effectively identify, assess, manage and monitor challenges, particularly physical risks like flooding, water shortages and fires. SUSTAINABILITY HIGHLIGHTS IN 2024 • Certified CPO in Indonesia – 481,000 tonnes of ISPO-certified CPO, representing 84% of total nucleus CPO production. • Certified Sugar Cane in Brazil – 2.3 million tonnes of Bonsucro-certified production, representing 46% of CMAA’s own sugarcane production. • Occupational Health and Safety – Zero paraquat use since 2018; – 100% of sites certified to SMK3 occupational health and safety (OHS) management system, with 60 sites achieving the SMK3 Gold award; – 11 sites with zero accident awards from the Ministry of Labour; – 17% decrease in rate of recordable work-related injuries; and – Two work-related fatalities (one at an oil palm estate and one at a palm oil mill). • Worker Welfare – Compliance with minimum wage and employment contract regulations for full-time and seasonal workers; and – No registered worker below 18 years of age. • Energy and Water Consumption (2020 baseline) – 4% reduction in energy intensity in mills; – 26% increase in energy intensity in refineries;* – 2% reduction in water intensity in mills; – 33% increase in water intensity in refineries;* – 99% of fuel used in mills from renewable sources; and – 100% of milling waste reused by estates and mills. • Smallholders – Four KUDs have obtained ISPO certification, with six currently undergoing the audit process. KEY SUSTAINABILITY TARGETS • Palm oil production (estates and mills): Achieve ISPO certification by end of 2026. • Palm oil refineries: Source all CPO supplies in accordance with our Sustainable Agriculture Policy and achieve ISPO-certification by end of 2026. • Zero fatality. SUSTAINABILITY MANAGEMENT The Sustainable Agriculture Policy applies to all operational units, including plasma smallholders and third-party CPO suppliers. It outlines the strategies for accountable and traceable supply chains, human rights, prevention of deforestation, ESG risk assessment and management, and stakeholder engagement. Our Labour Policy further protects the rights of those working in and living around our estates. This Policy is applicable to all employees, including plasma smallholders and third parties who supply to our factories and refineries. All suppliers are encouraged to make similar commitments in their own operations to align with our Policy. 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 * 2024 energy and water intensity per tonne of material produced at our refineries increased against the 2020 baseline due to fluctuations in the quality of raw materials and additional processing performed at one refinery. Group Overview Financials Other information Sustainability and Governance Operation and Financial Review 24 Indofood Agri Resources Ltd.
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