21
INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
farming practices can lead to soil deflation and sedimentation
of watercourses.
Excessive emissions of pollution are harmful to ecosystems and
human health. Unchecked run
-
off of agricultural chemicals such
as pesticides and fertilisers can create unlawful incidents and
extensive risk to biodiversity. The disposal and transportation of
hazardous wastes from factories are subject to stringent regulation.
Yield maximisation including innovation
[material issue I]
Achieving good yields through the correct plantation
management practices is core to our business. The ability
to maintain the best yields coupled with careful cost control
and competitive pricing will enable us to remain resilient and
productive. To raise our operational productivity, we strive
towards better precision agronomy within each 30
-
hectare
block to achieve FFB yields of 30 tonnes per hectare. Higher
yields come from innovation in seed breeding, agronomic best
practices, and the careful use of crop protection agents. Getting
these elements right will contribute to a more environmentally
and socially responsible operations upstream.
How we manage these issues
Our
Sustainable Agriculture and Products
Programme drives
the adoption of sustainable practices in crop cultivation and the
operation of refineries and mills. We are committed to the best
industry sustainability practices and standards. Our
Smallholders
Programme, focusing on plasma farmers, also sets out to promote
and certify production practices upstream, with benefits such as
stronger yields and more engaged producers.
As of end December 2014, 332,000 tonnes or 35% of IndoAgri’s
total CPO production were certified to RSPO standards. The Group
also achieved ISPO certification for 45,000 tonnes or 5% of the
total CPO production. CMAA, our sugar operation in Brazil, has
attained Bonsucro certification for 111,000 tonnes of sustainable
sugar cane. This represents 3% of the total sugar cane production.
We are drawing from our experience with international
standards such as RSPO and Bonsucro, and working with the
PISAgro, to develop sustainable farming guidelines for our
other crops. Our factories were assessed and rated at least
‘blue’ against the PROPER criteria, representing compliance
with Indonesia’s environmental regulation.
We appointed RSPO
-
accredited assessors to evaluate the
HCV areas in our oil palm estates, and develop guidelines on
managing and conserving the HCV areas. Our Group policy
prohibits any new planting on peatlands and HCV areas.
Other key initiatives:
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PROPER rating and ISO 14001.
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condensed water.
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refineries.
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and the RSPO and ISPO principles.
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HCV areas for all new development.
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biomass optimisation.
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integrated pest management.
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and farming efficiencies.
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by field.
Our
Growing Responsibly
Programme adds to this effort by
nurturing the capacity and competencies of our employees and
plasma smallholders and encouraging stakeholder engagement.
It provides a policy framework for decision
-
making and good
practices, and outlines key processes for improving corporate
risk management, leadership and governance.
Other key initiatives:
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stakeholders.
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management from subsidiaries.
SUSTAINABLE PRODUCTS
Product quality and safety
[material issue H]
In the food industry, it is important to know precisely where
ingredients come from and how they are produced in order to
establish full traceability. We closely monitor the supply chains
so that our objectives for product quality and safety can be
achieved. Ensuring traceability provides quality assurance to
our customers and deters counterfeit products from entering
the market. We ensure that our product labels accurately
describe the food quality, properties and brand claims.
How we manage this
Our
Safe and Traceable Products
Programme and the
supporting quality assurance processes aim to ensure that all
our products are safe for human consumption. See also the
SUSTAINABLE PALM OIL SOURCING sub
-
section above.
Our products are fortified with minerals and vitamins as
required by legislation. Nutritional value is enhanced for
certain products as an added health benefit to customers, and
for product differentiation.
Our cooking oils are bottled using packaging materials that are
recyclable, in compliance with Indonesia’s policy on Extended
Producer Responsibility (EPR). Our parent, Indofood, is a
member of the Coalition for Sustainable Packaging, which
champions plastic waste management in Indonesia.
Other key initiatives:
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Priok refinery in compliance with Food Safety System
Certification (FSSC) 22000:2010 standard.
