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INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
RESPONSIBLE SOURCES, TRACEABLE PRODUCTS
IndoAgri covers the entire supply chain from seed breeding,
plantations and refining to food production. We make
cooking oil, margarine, shortening and speciality fats for
industrial and consumer markets. In 2014, we implemented
a Palm Oil Sourcing Policy and the Responsible Supplier
Guidelines to help manage the procurement of all CPO
used at our refineries. The majority of our CPO suppliers
have acknowledged these guidelines. We also developed a
strategic partnership with the Sustainable Trade Initiative
(IDH) in 2014 as part of our efforts to achieve a sustainable
supply chain including our smallholders. In 2015, we will
be working with IDH to have our first group of smallholders
RSPO audited.
FIRE PREVENTION ON THE GROUND
We do not tolerate any burning on oil palm plantations
belonging to us, or our suppliers. We have further increased
our vigilance in this area in support of the new Transboundary
Haze Act introduced by the Singapore Government in 2014.
IndoAgri has extended its current fire safety system and
prevention plan in every estate to address fires from hotspots
outside its estate perimeters. A dual
-
ringed fire monitoring
mechanism was implemented so that our estate teams and
the local authorities can respond quickly to fire incidents at
the borders of our plantations. We also identify known fire
-
prone areas, and hotspots around our estates based on daily
satellite feeds published by the Singapore government, and
disseminate the information to the estates for their immediate
action. The details of this monitoring mechanism can be found
on page 47.
REDUCING GREENHOUSE GASES
We recognise that climate change is a material issue for the
agricultural industry as our crops are affected by changes
in weather. In 2014, we joined the RSPO Greenhouse Gas
(GHG) Working Group pilot project and have completed
the measurement of GHG emissions using the RSPO Palm
GHG Calculator at eight of our RSPO
-
certified mills and the
estates that supply them. In this report, we also included the
measurement of emissions from the sea and land transportation
of our CPO from bulking stations to refinery (see page 37).
Starting 2015, we will be extending this initiative across our
operations, including our non
-
RSPO certified mills and estates,
to develop a reduction target.
MONITORING SUSTAINABILITY PROGRESS
To improve how we monitor our key sustainability indicators,
we started to develop a Sustainability Management
Information System (SMIS) in 2014. It uses agronomic data
in the existing SAP system in our units and subsidiaries
across Indonesia. Other data like Occupational Health and
Safety (OHS) are captured through the SMIS web forms.
Once it goes live in Q3 2015, all estates will have access to
it through the intranet and management can keep track of
key sustainability KPIs in real
-
time through the sustainability
dashboard.
OUR PEOPLE AND COMMUNITIES
As shown on page 60, we continued our corporate programme
on cataracts, which has helped 464 people to restore proper
vision to date. In mid 2014, we also started a new cleft lip
initiative that has benefitted eight children so far. As plantation
owners, we provide services and amenities to improve the
safety, hygiene and living conditions of our employees and
their families. This includes healthcare services for all estate
employees and free education for their children. We also
improve the quality of life for the community living on our
estate through capacity building, education and financial
support programmes. We have always emphasised workplace
safety and strived to minimise accidents in our operations.
Despite these efforts, regretably five work
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related fatalities
still occurred in 2014 – three from car accidents and two from
electrocution. We have investigated each incident thoroughly,
and taken steps to prevent recurrence. We believe all accidents
are preventable, and we will work harder to enhance our safety
procedures to achieve zero fatalities.
NEXT STEPS
In the year ahead, we plan to enhance the health and safety
of our employees by introducing new protocols and improving
safety reporting. We will continue to strengthen our sustainability
management to improve our economic, social and environmental
performance, as well as meet the targets we have previously set
and reported on.
APPRECIATION
Overcoming the challenges and reaching our achievements in
this sustainability journey is only possible with the dedication,
support and commitment of many individuals. I take this
opportunity to thank our Board of Directors, my fellow
colleagues, especially the sustainability team and coordinators,
and our operations staff who have answered the challenge to go
the extra mile on this journey. Last but not least, my appreciation
to all the suppliers and smallholders who have engaged with
us as our strategic partners to align with our sustainability
programmes.
Mark Wakeford
Chief Executive Officer
