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INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
CEO’S
STATEMENT
DEAR STAKEHOLDERS,
I am pleased to present IndoAgri’s third sustainability report
covering our operations for the financial year of 2014.
Agribusiness and food processing are significant industries
with extensive supply chains. While these provide great
opportunities to create economic wealth and meet food
demands, we recognise that there is a potential for economic,
environmental and social impact resulting from our business,
or that of our suppliers. We acknowledge that our business can
positively affect our relationships with our suppliers, farmers,
employees and local communities.
This is the rationale for choosing to operate in an increasingly
sustainable and traceable manner across our supply chain.
Our business model is dependent on effective involvement
with rural communities and complex supply chains. The way
we manage our resources is in compliance with government
regulations and best practices, and measured against
relevant sustainability standards. What underpins all of this
is a competent workforce that demonstrates a disciplined
approach to sustainability management and responsible
agriculture. This is, after all, what has always underscored
IndoAgri’s business ethos.
We have been involved in initiatives such as cultivating high
-
yielding seedlings to improve land productivity, breeding barn
owls to replace chemical pesticides, enforcing a strict zero
-
burning policy for land clearing and certifying Crude Palm Oil
(CPO) production to RSPO requirements voluntarily.
The world demands oils and fats in ever
-
greater quantities,
driven by population growth, urbanisation and increasing
incomes. As a food producer and plantation owner, it is our
duty and responsibility to supply high quality and safe food,
and to operate in a sustainable manner that protects the
natural environment and the communities with whom we work.
Our strategic approach to sustainability and responsible
agribusiness is to establish the material issues, set effective
targets and manage the operations according to recognised
sustainability standards. Whilst we manage a wide variety
of operational matters, we focus our sustainability reporting
on 10 key issues that matter most from an internal risk
perspective and to our external stakeholders.
By 2019 we target to have all of our sustainable palm oil
production including our plasma smallholders’ certified to
RSPO standards, the highest sustainability benchmark for
the palm oil industry. Our total RSPO
-
certified production is
332,000 tonnes, which is 35% of total CPO produced in 2014.
Our plantations are also audited for Indonesia Sustainable Palm
Oil (ISPO), a mandatory standard for all Indonesian oil palm
plantations. Currently we have 45,000 tonnes, which is 5% of
our 2014 CPO production, certified under ISPO. Additionally,
12 mills and four refineries are audited and rated ‘blue’
and ‘green’ under the government’s PROPER programme,
complying fully with national regulatory standards. The ‘green’
rated factories are recognised for environmental performance
going beyond compliance.
Non
-
palm oil operations are currently not covered in this
report, but we continue to expand sustainability to our other
crops. Companhia Mineira de Açúcar e Álcool Participações
(CMAA), our Brazilian joint venture, has recently successfully
achieved its first Bonsucro certification for 111,000 tonnes
of sustainable sugar cane production, amounting to 3% of
its sugar cane production. Bonsucro is a multi
-
stakeholder
non
-
profit organisation and a globally recognised certification
scheme for the sugar cane sector. We will include more on this
in future reports, including relevant targets.
We also aim to progressively disclose more on the sustainability
management and performance of our other crops, and work
with organisations such as the Cocoa Sustainability Partnership
(CSP) to develop such a framework if a sustainability standard
has not been set for the industry. As an active member of CSP,
the Group refocused in revitalizing and replanting its cocoa
plantation in East Java and North Sulawesi, which has resulted
in productivity improvement.
Our strategic approach
to sustainability
and responsible
agribusiness is to
establish the material
issues, set effective
targets and manage
the operations
according to recognised
sustainability standards.
