SUSTAINABILITY REPORT 2024
CONTENTS 01 CEO Statement 03 2024 at a Glance 04 Our Approach to Sustainability 14 Business Overview 17 Protecting Our Environment 35 Responsible Sourcing 43 Our People 50 Community Relations 55 Product Integrity 61 Appendix ii Indofood Agri Resources Ltd. Sustainability Report 2024
ABOUT INDOAGRI, OUR VISION, MISSION AND VALUES (GRI 2-1) Our Mission To achieve high-yields and maintain low production costs, while continually enhancing our workforce, processes, and technology to ensure the highest quality standards. Our Vision To become a leading integrated agribusiness and recognised as a world-class agricultural research and seed-breeding company. Our Values Discipline forms the foundation of our approach. We operate with integrity, respect our stakeholders, and unite in our pursuit of excellence and ongoing innovation. Indofood Agri Resources Ltd (IndoAgri) is an agribusiness company listed on the Singapore Exchange (SGX) and headquartered in Singapore. In Indonesia, IndoAgri has two operating subsidiaries listed on the Indonesia Stock Exchange (IDX), PT Salim Ivomas Pratama Tbk (PT SIMP) and PT PP London Sumatra Indonesia Tbk (PT Lonsum) which manages strategically located estates and production facilities, primarily cultivating oil palm, followed by sugar cane, rubber, and other crops. In Brazil, IndoAgri holds a 36.21% investment in CMAA and Bússola, which operates three sugar and ethanol mills and owns agricultural land. Our diverse product offerings are complemented by a focus on research and development (R&D) and seed breeding, ensuring the adoption of advanced agricultural practices. We demonstrate our commitment to excellence in manufacturing and marketing through our high-quality, award-winning edible oil brands. For more information on our business, please refer to the section on Business Overview found on pg 14. iii Indofood Agri Resources Ltd. Sustainability Report 2024
OUR POLICY (GRI 2-1) IndoAgri believes that traceable and sustainably produced agricultural products are integral to the long-term success of the company. We approach sustainable agriculture through three interlinked areas of focus: Sustainable Agriculture & Products Sustainable Communities Responsible Employment & Workplace We focus on responsible agricultural practices that aim to minimise environmental impact and enhance biodiversity in our operations, by maintaining strict compliance with relevant laws and regulations, and relevant sustainability certifications. We are committed to engaging with local communities and fostering social responsibility. We aim to respect human rights, promote social well-being, and contribute to the development of sustainable communities through fair practices and community involvement. We strive to provide a fair and safe working environment for our workers (including contract, temporary and casual workers) through adherence to local, national and international labour laws and alignment to human rights practices. Our Sustainable Agriculture Policy (Policy), approved and signed by our Board, serves as the cornerstone of all our sustainability efforts. Key policy commitments to deliver sustainably produced products are: No deforestation; conservation of High Conservation Value (HCV) and High Carbon Stock (HCS) areas No planting on peat regardless of depth No burning Respect for Labour and Human Rights, including Freedom of Association and non-discrimination Free Prior and Informed Consent (FPIC) Our Policy is accessible on our website and applies to all our operations, including our plasma smallholders and other third-party suppliers from whom we source for our factories. Read more online. iv Indofood Agri Resources Ltd. Sustainability Report 2024
OUR SUSTAINABILITY REPORT (GRI 2-3, 2-6) Forest monitoring in Treblasala Estate, Banyuwangi, East Java IndoAgri proudly presents its 13th annual Sustainability Report for the financial year 2024 (FY2024). This report details our performance and progress in relation to our Policy commitments and targets concerning our key material topics for FY2024. It should be read in conjunction with our Annual Report and website, with the relevant links provided within the report. Our report has been prepared in accordance with the Global Reporting Initiative (GRI) 2021 Standards and complies with rules 711A and 711B of the Singapore Exchange Securities Trading (SGX-ST) Listing Manual, as well as the SGX-ST Listing Rules Practice Note 7.6 on Sustainability Reporting. Our decision to adopt the GRI standards and principles reflects our commitment to stakeholder inclusiveness, ensuring that the information we provide is accurate, clear, reliable, and comparable. We are also disclosing in line with the Task Force on Climate-related Financial Disclosures (TCFD) framework. For more details, please see page 28. In response to the mandatory climate reporting requirements from Singapore Exchange Regulation (SGX RegCo), we are actively enhancing our disclosures. In this report, we reference the SASB standards, which provide valuable insights tailored to our sector, allowing us to identify and communicate the most relevant sustainability metrics and risks to our stakeholders. Additionally, we plan to integrate the IFRS S2 climate-related disclosures in future reports, aligning with the regulatory timeline. This strategy will strengthen our accountability in managing climate-related risks and opportunities, ensuring that IndoAgri remains resilient in an ever-changing landscape. Maintaining high standards of accuracy and reliability, IndoAgri has engaged a third-party to provide assurance for this report. The details of the scope of work conducted can be found in the external assurance report on the following page. We welcome your feedback or questions at sustainability@ indofoodagri.com. The GRI Content Index and reports from previous fiscal years are available online. Indofood Agri Resources Ltd. Sustainability Report 2024 v
Inside one of IndoAgri’s certified refineries REPORTING SCOPE The scope of this report covers our most dominant crop, oil palm, which occupies 84% of our total planted area, and our rubber operations, which occupy 6% of our total planted area. There are no significant changes to the size, structure or ownership of our company compared to the previous report. Our financial, employee, community and health & safety data constitute the whole Group (all operations in the scope of this report). Our responsible sourcing and product data include only our downstream refinery operations. Our environmental data includes the following sites in our palm oil and rubber operations: 5out of 5 Refineries, all of which are PROPER-certified/audited) 27out of 27 palm oil mills, all of which are either ISPO or PROPER-certified/audited 63out of 83 plantations, all of which are ISPO-certified/audited 7out of 7 Rubber plantations 3out of 3 Rubber factories vi Indofood Agri Resources Ltd. Sustainability Report 2024
EXTERNAL ASSURANCE REPORT (GRI 2-5) PT. Moores Rowland Indonesia Jl. Sisingamangaraja No. 26 – Jakarta Selatan 12110 - Indonesia Tel: +62 21 720 2605 - Fax: +62 21 720 2606 - www.moores-rowland.com Independent Assurance Statement Report No. 0425/BD/0022/JK To the Management of Indofood Agri Resources Ltd., We were engaged by Indofood Agri Resources Ltd. (‘IndoAgri’) to provide assurance in respect to its Sustainability Report 2024 (‘the Report’). The assurance engagement was conducted by a multidisciplinary team with relevant experience in sustainability reporting. Independence We carried out all our assurance undertakings with independence and autonomy having not been involved in the preparation of any key part of the Report, nor did we provide any services to IndoAgri during 2024 that could conflict with the independence of the assurance engagement. Assurance Standards Our work was carried out in accordance with ISAE3000 ‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’ issued by the International Auditing and Assurance Standards Board. This standard requires that we comply with ethical requirements and plan and perform the assurance engagement to obtain limited assurance. Level of Assurance By designing our evidence-gathering procedures to obtain a limited level of assurance based on ISAE3000, readers of the Report can be confident that all risks or errors have been reduced to a very low level, although not necessarily to zero. Scope of Assurance The scope of our work was restricted to the following selected information: • Product Safety, Quality, and Halal • Climate Change and GHG Emissions • Energy Management • Water Management • Employee Health & Safety and Well-being Responsibility IndoAgri is responsible for the preparation of the Report and all the information and claims therein, which include established sustainability management targets, performance management, data collection, etc. In performing this assurance engagement our responsibility to the management of IndoAgri was solely for the purpose of verifying the statements it has made in relation to its sustainability performance, specifically as described in the selected information, and expressing our opinion on the conclusions reached. Methodology In order to assess the veracity of certain assertions and specified data sets included within the report, as well as the systems and processes used to manage and report them, the following methods were employed during the engagement process: • Review the Report, internal policies, documentation, management and information systems. PT. Moores Rowland Indonesia Jl. Sisingamangaraja No. 26 – Jakarta Selatan 12110 - Indonesia Tel: +62 21 720 2605 - Fax: +62 21 720 2606 - www.moores-rowland.com • Interview relevant staff involved in sustainability-related management and reporting. • Follow data trails to the initial aggregated source in order to check data samples to a greater depth. Limitations Our scope of work was limited to a review of the accuracy and reliability of selected sustainability performance-related information. It was not designed to detect all weaknesses in the internal controls over the preparation and presentation of the Report, as the engagement was not performed continuously throughout the preparation period, and the procedures performed were undertaken on a test basis. Conclusions Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the Report has not been properly prepared and presented, in all material respects. All key assurance findings are included herein, while detailed observations and follow-up recommendations have been submitted to IndoAgri management in a separate report. Jakarta, April 11, 2025 James Kallman Chief Executive Officer Moores Rowland is an international organization specializing in auditing, accounting and outsourcing, tax, legal and advisory, business and human rights services. Moores Rowland is a member of Praxity AISBL, the world's largest Alliance of independent and unaffiliated audit and consultancy companies. With more than 65,000 professionals operating in 120 countries across the globe, each sharing the same values and sense of responsibility, Praxity is served by Moores Rowland in Indonesia, one of the leading sustainability assurance providers. vii Indofood Agri Resources Ltd. Sustainability Report 2024
CEO STATEMENT (GRI 2-22) DEAR STAKEHOLDERS, I am pleased to present IndoAgri’s Sustainability Report for the financial year 2024. This report marks our 13th annual disclosure, reflecting our ongoing commitment to transparency, accountability, and sustainable practices across our operations. This year, we continued to navigate a challenging landscape characterised by evolving regulatory requirements, climaterelated risks, and increased stakeholder expectations. Despite these challenges, we remained committed to our mission of achieving higher yields while maintaining low production costs and enhancing our workforce, processes, and technology to ensure the highest quality standards. To ensure we continue addressing the most crucial topics for both our stakeholders and the company, we conducted a materiality refresh in 2024. This update led to several key changes: we have now identified energy management as a distinct topic, aligning with our increased focus on energy transition and investments in renewable energy technologies; we have placed greater emphasis on talent management in response to growing challenges in hiring and retaining plantation staff; and we have expanded our biodiversity-related disclosures throughout the report. These adjustments reflect our commitment to staying responsive to evolving priorities and challenges in our sustainability reporting. With 2024 marking the end of many of our sustainability targets, we have undertaken a phased approach to reviewing our targets. Our social and governance targets were updated in 2024, with environmental targets to follow in 2025. This ensures our medium-term targets remain ambitious yet realistic. The process aligns our renewed goals with those of our major shareholder, PT Indofood Sukses Makmur Tbk (PT ISM). Throughout the year, we continued to make progress in our environmental protection initiatives. We maintained our commitment to zero deforestation, conservation of HCV and HCS areas, and no planting on peat regardless of depth. We manage almost 25,000 hectares of HCV and 100% of our sites have HCV Management and Rehabilitation plans in place. Demonstrating our commitment to responsible sourcing, 89% of our estates’ production is ISPO certified, along with 22 of 27 mills and 84% of nucleus CPO production. Our Our 13th annual sustainability report on our Environmental, Social and Governance (ESG) performance is guided by a formal materiality process and has been approved by the IndoAgri Board. Land Monitoring using drones in Cipta Graha Estate, Kutai Timur, East Kalimantan 01 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
We continued to provide a safe working environment, with 100% of our sites adhering to the SMK3 management system, including 60 sites with a gold rating. We regret to report two workplace fatalities in 2024: one at an oil palm estate and one in a mill. Following these tragic incidents, we provided support to the affected families and conducted thorough investigations to prevent similar occurrences in the future. We reaffirm that employee safety remains our highest priority, and we are committed to ensuring a safe and secure working environment for all our staff. As we move forward, we remain committed to enhancing our sustainability practices, addressing climate-related risks, and contributing positively to the communities we serve. We will continue to engage with our stakeholders, seek innovative solutions, and uphold the highest standards of environmental and social responsibility. Thank you for your continued support. Sincerely, Mark Julian Wakeford Chief Executive Officer and Executive Director target to achieve ISPO certification across the full extent of our operations by 2024 has been postponed due to new government regulations. We are committed to maintaining our current ISPO certifications and to renewing all our existing certificates. We are prioritising alignment with the new government regulations while continuing our pursuit of achieving 100% ISPO certification across our operations by the end of 2026. Ensuring a transparent and traceable supply chain is a priority for IndoAgri. We have achieved 100% traceability of FFB processed in mills to estates and 100% traceability of CPO and PK processed in refineries and kernel crushers to mills and estates. We achieved a 4% reduction in energy consumption intensity and 2% water intensity reduction in our mills. While these achievements were not mirrored at our refineries, we will continue to focus on improving efficiency and implementing best practices to enhance performance across all our operations. Notably, 99% of the fuel used in our mills is derived from renewable sources, and all milling waste was reused by our estates and mills, demonstrating our commitment to circular economy principles and resource optimisation. Our commitment to community development remains strong. In 2024, we operated 175 clinics, 168 Posyandu, and provided medical services through large teams of doctors, midwives and nurses. Our education initiatives supported 125 daycare centres, 146 schools, and 19 Rumah Pintar, benefiting thousands of children and students in our communities. In partnership with Institut Pertanian Stiper (INSTIPER), we launched a significant scholarship programme to support the education of talented students from underprivileged backgrounds and communities near our operational areas. This programme aims to provide access to higher education in the palm oil industry, covering tuition fees, living expenses, and offering mentorship, monitoring, and internship opportunities. The initiative seeks to develop skilled professionals for the palm oil sector while contributing to the sustainable development of local communities. Our workforce is central to our success. In 2024, we maintained a 4% employee turnover rate with 70% of our permanent operational employees registered with a union. We remain committed to enhancing our sustainability practices, addressing climate-related risks, and contributing positively to the communities we serve. We will continue to engage with our stakeholders, seek innovative solutions, and uphold the highest standards of environmental and social responsibility. 02 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
2024 AT A GLANCE Vertically integrated agribusiness Preventing deforestation BUSINESS AND PEOPLE COMMUNITY ENVIRONMENT hectares of nucleus planted area under oil palm other crops mills refineries rubber processing plants sugar factories 288,649 84% 16% 27 5 5 2 clearance of primary forest, degradation of HCV areas, new planting on peat regardless of depth, or burning hectares of HCV areas identified of sites have HCV Management and Rehabilitation plans Zero 24,936 100% Medical facilities and related data SOURCING AND PRODUCT Food Safety/ Quality Management System ISPO-Certification Supply Chain Traceability and Transparency Quality certified with ISO 9001/ FSSC 22000 of non-raw material suppliers (packaging and ingredients) – audits completed of products and refineries are Halal-certified 100% 100% 100% of all estates’ production ISPO-certified of nucleus CPO production ISPO-certified 89% 84% of FFB processed in mills traceable to estates of CPO processed in refineries traceable to mills of PK processed in kernel crushers traceable to estates 100% 100% 100% refineries completed annual audits on quality assurance 100% Education facilities and related data clinics Posyandu doctors midwives/nurses ambulances 175 168 39 208 24 day care centres day care centre visitors schools teachers students Rumah Pintar Rumah Pintar vistors 125 1,850 146 881 12,702 19 28,380 Workforce representation of our permanent operational employees are registered with a union covered by Company Regulations 70% 30% Energy and water consumption reduction in energy intensity in mills (2020 baseline) increase of energy intensity in refineries (2020 baseline) reduction of water intensity in mills (2020 baseline) increase of water intensity in refineries (2020 baseline) of fuel used in mills from renewable sources of milling waste reused by our estates and mills 4% 26% 2% 33% 99% 100% Labour conditions and safety elimination of Paraquat (since Mar 2018) SMK3 management system sites sites with SMK3 gold rating 100% 100% 60 Child labour registered worker <18 years old No 03 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
OUR APPROACH TO SUSTAINABILITY 05 Governance and Management 05 Sustainability Governance • Board Statement • Whistleblowing Policy and Grievance Mechanism • Risk Management, Business Continuity and Supply Chain Resilience 08 Material Topics and Management 10 Our Approach to Key Sustainability Focus Areas • Environmental Protection • Responsible Sourcing • People • Community Relations • Product Integrity Use of beneficial plants to reduce pesticide consumption at Cipta Graha Estate, East Kutai, East Kalimantan 04 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
Material Topics Goal/Target Update for 2024 Responsible Business Conduct (RBC) Zero cases of bribery and corruption Zero confirmed incidents of bribery and corruption in our operations in 2024 GOVERNANCE AND MANAGEMENT (GRI 2-3, 2-6) We utilise a robust framework of policies, targets, certifications, standards, and programmes to guide our sustainability efforts and effectively manage the risks and opportunities related to our key material topics. By complying with ISPO certification requirements for oil palm and adhering to the specifications set forth in the Indonesian Government’s PROPER environmental standard, we demonstrate our commitment to good governance. Our NDPE commitments are central to this framework, which include our practices to ensure no deforestation, no planting on peatland regardless of depth, no exploitation, and complete avoidance of burning practices. Furthermore, we actively support smallholders and prioritise the safeguarding of land rights and human rights, ensuring that our operations contribute positively to the communities we serve. By engaging both internal and external stakeholders in the implementation of our plans, we actively ensure that our partners and key stakeholders align with our standards and understand the critical importance of their involvement. We systematically track our sustainability data through an SAP enterprise resource planning system, enabling us to effectively monitor our progress against our defined targets. Our management approach undergoes rigorous evaluation through a combination of internal and external audits, in-depth performance trend analyses, and comprehensive stakeholder feedback reviews. Our routine internal audits and monitoring processes strictly adhere to a variety of auditing frameworks and standards, including ISPO, ISO 14001 for Board Statement: The Board of Directors is accountable for overseeing sustainability governance at IndoAgri, which encompasses the assessment and management of climate-related risks. It integrates sustainability and climate considerations into our business strategy, thereby ensuring that these critical factors are not overlooked in our decision-making processes. Additionally, the Board supervises the management and monitoring of our ESG impacts, validation of material topics, as well as the review and approval of the annual sustainability report before its publication. The Sustainability Think Tank (STT), chaired by our CEO, supports the Board in monitoring and managing sustainability issues. During quarterly Board meetings, the STT provides updates on sustainability performance and recent developments, along with decisions made in response to these changes. This includes updates on climate-related risks and opportunities and progress against goals and targets for addressing climate-related issues. The STT is also tasked with conducting an annual review of the material topics and presenting its reporting recommendations to the Board to ensure that these issues remain relevant to our business. The Board carefully considers the information presented at these meetings when making strategic choices or other significant decisions. We adopt the precautionary principle in our management of material ESG topics to avoid adverse effects on the Environmental Management Systems, ISO 45001 for Occupational Health and Safety Management System, and ISO 9001 for Quality Management Systems. These audits provide a thorough examination of all our operations, including our environmental controls, ensuring that we meet relevant government environmental regulations. Sustainability Management SUSTAINABILITY GOVERNANCE (GRI 2-9, 2-12, 2-14) Commitment Mission Policies Code of Conduct Values Action R&D Management systems Certifications Stakeholder engagement Internal collaboration Training Reporting Annual report Sustainability report Website Planning Government policy Corporate business Sustainability programmes Assess to Improve Indicators Targets Evaluation through audit Materiality review 05 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
environment, the economy, and the communities in which we operate, including any potential impacts on human rights. Our Board remains informed of our sustainability performance, including climate-related issues, through updates provided by the STT. Chaired by our CEO, the STT comprises Executive Directors, Chief Operating Officers, the Enterprise Risk Management (ERM) unit, the R&D team, and sustainability representatives from each business unit. Where significant sustainability-related risks and associated concerns are found, they are escalated to our Audit and Risk Management Committee (AC & RMC) on a quarterly basis. The ERM and AC & RMC collaborate to assist the Board in monitoring and reviewing emerging and priority group risks, including those related to climate, as well as risk management strategies and internal controls. To drive sustainable practices, our executives’ compensation is linked to the achievement of specific sustainability targets and performance indicators that align with their areas of responsibility. The STT is tasked with: executing IndoAgri’s climate change strategies, in accordance with its delegated authority; assuming accountability for various metrics, including those related to climate-related performance; assisting the Board with overseeing climate-related performance, which encompasses risk identification, monitoring, and management, as well as the implementation of the Group’s strategy, policies, targets, and goals concerning climate issues, health and safety, and community matters; reviewing relevant frameworks for the identification, management, and reporting of climate risks; and providing recommendations for climate-related key performance metrics to evaluate the performance of the CEO and other Directors. Whistleblowing Policy and Grievance Mechanism (GRI 2-16, 2-25, 2-26, 3-3, 205-1, 205-2) We are committed to fostering ethical conduct and take a firm stance against all forms of corruption; an expectation that also extends to our suppliers. All new employees participate in our mandatory induction training that covers our Code of Conduct, which explicitly prohibits bribery, gratification, and any form of corruption. To increase accessibility and increase awareness, we have made our whistleblowing procedures available in Indonesia’s national language, and to ensure that all employees remain familiar Grievance Mechanism SUBMISSION OF COMPLAINTS RECEPTION OF COMPLAINTS HANDLING OF COMPLAINTS Complaints from Employees For Gender related complaints Gender Committee 1. Verification and follow up by management 2. Mediation and resolution of complaints Company Representatives (Unit Manager, Head Administration, Head Assistant) Complaints from External Parties Community, NGOs, etc Complaints from Internal Employees related to Employment Matters Complaints related to Operational Matters Price determination, land compensation, etc Complaints related to Gender: Discrimination, sexual harassment, violation of women rights Submission of Written Complaints + Supporting documents/proof (if any) to: Complaints related to Social and Environmental Matters 06 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
strong corporate governance practices and well-defined controls. This proactive approach helps us identify, assess, and mitigate potential risks across the company. The ERM team facilitates cross-functional collaboration with risk owners, managers, and internal audit to conduct quarterly risk assessments and evaluate the overall effectiveness of risk control measures. Management has identified corruption as a business risk. In response to this risk, the company has implemented several mitigating controls. This includes the communication of our Code of Conduct to all employees, which encompasses two essential policies: Company Business Ethics and Employee Working Ethics. Any violations of these policies will be considered a breach of employment contract and may lead to disciplinary action. We encourage employees to report any instances of bribery they witness or suspect through the company’s established whistleblowing channels. Our commitment to preventing corruption extends to our vendors and suppliers as well. We conduct comprehensive due diligence on all third-party vendors and suppliers to ensure their compliance with our standards. The AC & RMC holds quarterly meetings with the ERM team and presents quarterly reports to the Board on the company’s risk profile and mitigation strategies. In response to evolving global events and concerns, we continually update our business continuity plans. Our current focus lies in enhancing our strategies to address climate-related risks and developing more comprehensive scenarios for possible future pandemics. Details of our programmes, certifications, management systems, R&D innovation, sustainability governance structure, and stakeholder engagement can be found online. with our anti-corruption policy, we provide annual anticorruption training through our online platform. Our whistleblowing policy enables employees to voice concerns without fear of retaliation, ensuring confidentiality for those who come forward. Further information about our whistleblowing policy is available in our Annual Report. To provide employees and community members with access to the grievance process, we have established both internal and external mechanisms. The process for internal grievances is regularly communicated to employees through email and morning briefings, while the external complaints procedure is shared with village leaders and communities in the areas where we operate. Our internal audit teams conduct periodic evaluation of the input and output of our grievance mechanisms to ensure their effectiveness. All whistle-blowing and grievance reports received by company representatives are reviewed and analysed by the Internal Audit Division and other related divisions. Detailed reports are communicated to the Board during quarterly meetings, ensuring that they remain informed and engaged in addressing any issues. Risk Management, Business Continuity and Supply Chain Resilience We practice close collaboration with our suppliers to proactively identify potential supply disruptions. Close monitoring of government regulations and other restrictions allows us to minimise interruptions in product delivery to our customers. Additionally, we maintain a healthy inventory of our products on e-commerce platforms to ensure their continual availability. The ERM team is responsible for maintaining a robust risk management framework, including the implementation of Anti-bribery banner at the Tanjung Perak refinery, Surabaya, East Java 07 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
Our workers show high-quality oil palm seeds that we produce ourselves at the SAIN development centre, Pekanbaru, Riau MATERIAL TOPICS AND MANAGEMENT (GRI 3-1, 3-2) The STT is tasked with overseeing the monitoring of our material topics, and our Board conducts an annual review of these key issues. This process ensures that the topics remain relevant and aligned with the objectives of our business and the expectations of our stakeholders. In 2024, with the support of an independent consultant, we undertook a comprehensive three-stage review to identify, prioritise, and validate our material topics. 1. Identification of material topics We conducted benchmarking against peers and industry-specific standards using desktop research, comparing the results with previously identified material topics. This process allowed us to pinpoint potential emerging topics while taking into account our sustainability context. 2. Stakeholder engagement and review We considered stakeholders’ concerns and feedback regarding the initial list of potential material topics by conducting a series of interviews with selected individuals. In alignment with the company’s focus on energy transition and investment in renewable energy technologies, we have classified “Energy Management” as a separate material topic, which was previously included under “Climate Change and GHG Emissions”. All topics were reviewed and validated by the STT. 3. Validation The STT presented these 15 material topics to the Board, which then validated the final list for our FY2024 Sustainability Report. 08 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
Our strategy and approach are implemented across six Sustainability Programmes, each aligned with our established policies. These programmes drive our efforts to address our 15 material topics and contribute to 16 of the UN Sustainable Development Goals (SDGs). Sustainability Programmes Corresponding SDGs Material topics governed by or indirectly influenced by the programme Growing Responsibly Sets the policy framework for high standards of corporate governance and professional integrity. •Responsible Business Conduct (RBC) •Product Quality and Safety •Climate Change and GHG Emissions •Energy Management •Water, Waste and Effluents •Use of Fertilisers, Pesticides and Chemicals Sustainable Agriculture and Products Drives the adoption of sustainable practices in crop cultivation and the operation of refineries and mills. •Protection of Forests, Peatland and Biodiversity •Fire Control and Haze Prevention •Climate Change and GHG Emissions •Energy Management •Water, Waste and Effluents •Use of Fertilisers, Pesticides and Chemicals •Occupational Health and Safety (OHS) •Yield Resilience and Innovation Safe and Traceable Products Aims to ensure that all our CPO-derived products are traceable, safe, and beneficial for human consumption. •Supply Chain Traceability and Transparency •Sustainability Certification •Product Quality and Safety •Yield Resilience and Innovation Smallholders Covers our efforts with the plasma and ex-plasma farmers, and supports the Indonesian government’s Nucleus-Plasma scheme through the development of inclusive supply chains. •Smallholder Engagement and Livelihoods •Community Rights and Relations •Water, Waste and Effluents •Use of Fertilisers, Pesticides and Chemicals •Occupational Health and Safety (OHS) •Yield Resilience and Innovation Work and Estate Living Covers aspects relating to safety, health and well-being of our workers and their families, and to human rights. •Human, Child and Labour Rights •Community Rights and Relations •Occupational Health and Safety (OHS) •Yield Resilience and Innovation •Protection of Forests, Peatland and Biodiversity •Fire Control and Haze Prevention •Climate Change and GHG Emissions •Energy Management •Water, Waste and Effluents •Use of Fertilisers, Pesticides and Chemicals Solidarity Seeks to improve the quality of life in the estates through capacity building, education and financial support. •Smallholder Engagement and Livelihoods •Protection of Forests, Peatland and Biodiversity •Fire Control and Haze Prevention •Climate Change and GHG Emissions •Energy Management •Water, Waste and Effluents •Use of Fertilisers, Pesticides and Chemicals •Community Rights and Relations •Occupational Health and Safety (OHS) •Yield Resilience and Innovation •Human, Child and Labour Rights Details on our programmes can be found online. A 09 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
OUR APPROACH TO KEY SUSTAINABILITY FOCUS AREAS Environmental Protection (GRI 3-3) Our dedication to environmental conservation is articulated in our Policy, which has been approved by the Board. This policy outlines our goal to certify all factories to ISO 14001 standards. Recognising our responsibility to minimise negative impacts on the environment, we carefully manage all resources. To protect forests, peatlands, and biodiversity, we regularly assess environmental risks and actively conserve areas designated as HCV and HCS. To ensure accountability and transparency to our stakeholders relating to our agricultural practices, we provide updates on our impact management through our annual sustainability reports. Additionally, we submit a monthly online report concerning our environmental impacts to the Ministry of Environment and Forestry (KLHK). This dedication to regular reporting is outlined in our Policy. Mitigating the devastating effects of forest fires and haze on local and global ecosystems and communities is a critical priority for us. We take a strong, proactive stance by rigorously monitoring hotspots and actively engaging stakeholders in comprehensive fire prevention initiatives. We adopt a responsible approach to resource consumption and waste disposal, ensuring compliance with Indonesian government laws and regulations governing water-related activities. Additionally, we maximise the value of our milling waste by repurposing 100% of it into organic fertiliser and a renewable energy source for our boilers. We are constantly seeking innovative solutions to substitute synthetic chemicals with natural, eco-friendly alternatives, with the goal of Silver Leaf monkey ( Trachypithecus cristatus), one of the protected species in our plantation in Sei Rumbiya, North Sumatra 10 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
reducing reliance on fertilisers, pesticides, and other chemicals in the sustainable cultivation of oil palm. We acknowledge the importance of fostering environmental protection through cooperation and collaboration across the entire value chain. We expect all our suppliers to adhere to our sustainability standards as outlined in our Policy, which is a legal requirement for all our larger suppliers and commodity suppliers, including smallholders. Our ERM framework and whistle-blowing mechanisms are vital in ensuring compliance with relevant environmental regulations and in mitigating associated risks. The climate crisis presents both risks and opportunities to our business. We understand its significant impact on the ecosystems of our plantations, the communities in which we operate, and the stakeholders throughout our agribusiness value chain. To effectively address the risks associated with climate change, such as water scarcity and unpredictable weather patterns, we engage in both mitigation and adaptation actions. Our initiatives include increasing the use of renewable energy, enhancing energy efficiency, and reducing GHG emissions. Our assessment of climate risk exposure aligns with the framework established by the Task Force on Climate-related Financial Disclosures (TCFD), with further details available in the Climate Change and GHG Emissions section on page 25. Responsible Sourcing (GRI 3-3) Our customers value transparency and responsible sourcing throughout our supply chain. Our commercial success is dependent on the trust they place in our products, which is linked to their awareness of the origins of our raw materials. We actively promote best practices among our suppliers, encouraging them to maintain transparency throughout their supply chains and operate responsibly. Regular assessments and audits of our suppliers are conducted to ensure compliance with established standards. To ensure the traceability of every tonne of palm oil, we document the following: Name, parent company, address GeoCoordinates of plantation1 and mill Nucleus or plasma KUD/group farmers profile and data Refinery dispatch number Certification status In the agribusiness sector, compliance with third-party sustainability certifications is essential for implementing best practices and assuring our stakeholders. The ISPO certification, established and mandated by the Indonesian Government, plays a critical role in upholding our policies and commitments. Our target to achieve ISPO certification across our operations by 2024 has been postponed due to new government regulations. We are committed to maintaining our current ISPO certification and to renewing all our existing certificates. We are prioritising alignment with new government regulations while continuing our pursuit of achieving 100% ISPO certification across our operations by the end of 2026. Smallholders are vital to the palm oil industry, representing over 40% of oil palm cultivation in Indonesia. Recognising their contribution, we actively support them through capacitybuilding and training programmes. We collaborate with smallholders to enhance their skills, improve both the quantity and quality of their yield, and assist them in achieving ISPO certification. To reduce the need for converting new land and sustain ongoing commercial success, our R&D efforts focus on refining agronomy techniques while enhancing seed yield and quality. These initiatives not only improve crop resilience in the face of a warming climate but also involve investments in developing seeds that are more resistant to extreme weather conditions. 1 This includes batch barcodes for FFBs from our South Sumatra plasma estates. FFB sorting process in Kencana Sari POM, Lahat, South Sumatra 11 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
People (GRI 3-3) The overall welfare of our employees is essential to our success. We align our commitments to uphold and protect the rights of our workers with Indonesian law, the UN Universal Declaration on Human Rights, and the codes of practice endorsed by the International Labour Organization (ILO) as ratified by the Republic of Indonesia. As outlined in our Policy and Labour Policy, we strive to provide our workers with stable incomes, safe working conditions, and improved job opportunities, while implementing stringent measures at all our sites to prevent forced labour and child labour. All IndoAgri employees receive salaries that exceed the legal minimum wage set in their respective regions, taking into account sector variations, the cost of living in each province, and any applicable collective labour agreements. To ensure a decent living wage, we provide additional benefits such as housing, healthcare, and education to all permanent employees and their families. Furthermore, we support our employees’ rights to collective bargaining, allowing them the opportunity to join and register with their preferred labour unions. We place a strong emphasis on creating a safe and secure environment for our employees. Our comprehensive Occupational Health and Safety (OHS) management system is designed to minimise adverse health impacts and prevent accidents. Every site is equipped with SMK3 (Indonesian OHS standard) management systems and undergoes annual refresher training to ensure compliance with operational standards. Additionally, workers receive daily briefings and training on safety protocols and operating procedures before beginning their shifts. Our Training and Development programmes offer professional growth and career advancement opportunities for our employees, which are essential for retaining existing talent and attracting new talent. By investing in the development of our workforce, we demonstrate our commitment to their personal and professional progress, fostering a positive work environment that encourages loyalty and job satisfaction. This focus on talent development supports the enhancement of employee skills and establishes us as a competitive player in the job market. Community Relations (GRI 3-3) As a leading palm oil company, we recognise our ability to create positive impacts on the lives of individuals living in and around the areas where we operate. We are committed to upholding the rights of our communities, including the FPIC rights of indigenous peoples affected by our operations. Our efforts to build and maintain strong relationships with these stakeholders is intentional, and we actively work to address their needs. Our commitment is in line with our adherence to Indonesian law, the UN Universal Declaration on Human Rights, and the codes of practice endorsed by the ILO and ratified by the Republic of Indonesia. We are dedicated to uplifting local communities by fostering economic development through partnerships with local governments such as our Work and Estate Living Programme and providing access to essential services like healthcare and education. One of our school facilities in Riam Indah Estate, Musi Rawas, South Sumatra 12 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
Quality control laboratory at Lubuk Pakam Refinery, North Sumatra Product Integrity (GRI 3-3) Ensuring product quality and safety is paramount to our business success. Given the extensive use of palm oil in both edible and non-edible products, it is crucial to uphold high standards of product quality and process safety. We accomplish this through food safety management systems and quality assurance protocols implemented at our refineries, as detailed in our Quality Policy and Policy. Our commitment to these standards is reinforced by certifications in various local and international food safety standards, including the Indonesia National Standard (SNI) and ISO 9001/FSSC 22000 for our five refineries. In 2024, we carried out our regular internal audit for all five refineries. The ISO 9001 audits did not identify any significant issues. Our top priorities include ensuring full product traceability to meet customer expectations and complying with regulatory requirements for detailed ingredient and nutritional information. We consistently adhere to all regulations related to food safety, consumer protection, quality, nutrition, labeling, and advertising. All supplied CPO can be traced back to their source milling sites through our batch coding system. Additionally, our products and refineries are certified by recognised Halal certification bodies, including LPPOM MUI, The Assessment Institute for Foods, Drugs, and Cosmetics, and the Indonesian Council of Ulama. 13 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
BUSINESS OVERVIEW INTRODUCTION We operate as a diversified and vertically integrated agribusiness, covering the entire value chain from plantation management and crop production to the processing, refining, branding, and marketing of edible oil products. We run processing facilities dedicated to producing palm oil, rubber, sugar, cocoa, and tea. In Indonesia, our oil palm estates are predominantly situated in rural Sumatra and Kalimantan, while our refineries are primarily located in major cities including Jakarta, Medan, Surabaya, and Bitung. Our plantation R&D centres — Sumatra Bioscience (SumBio) in Bah Lias, North Sumatra, and PT SAIN in Pekanbaru, Riau — are responsible for extensive R&D to improve yield, crop resilience, pest and disease control, estate management practices, among others. These centres leverage renowned breeding populations from Southeast Asia and Africa to develop high-yielding, non-GMO oil palm seeds. The R&D facilities for sugar cane and EOF are based in South Sumatra and Jakarta, respectively. In the Indonesian market, our cooking oils are available under renowned brands such as Bimoli, Bimoli Spesial, and Happy. Additionally, our consumer margarine products are marketed under the Amanda, Palmia, and Royal Palmia brands. The industrial counterparts of these products are branded Amanda, Delima, Malinda, Palmia, Royal Palmia and Simas. Two of our employees in Lubuk Pakam Refinery, Medan, North Sumatra 14 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
OUR OPERATIONS IN INDONESIA (GRI 2-6) At our R&D centres, we engineer more efficient, resilient seeds and planting materials. Our EOF products are used by consumers for daily living and by customers as input for their products. Seed breeding Plantations Mills Refineries Customers & consumers >80% of EOF products serve domestic consumer All our consumer cooking oil brands are fortified with Vitamin A 5 refineries In nucleus and smallholders’ plantations, we grow oil palm, sugar cane, rubber, cocoa and tea in a responsible manner. At our mills, we process FFB into CPO and PK, latex into crumb and sheet rubber, and sugar cane into sugar. At our refineries, we refine CPO into higher value edible oil and fat (EOF) products. 241,208 oil palm 27 palm oil mills 5 (3 crumb and 2 sheet) rubber facilities 2 sugar cane mills 3.4M tonnes of FFB from our nucleus estates, plasma, and third parties milled into 706,000 tonnes of CPO and 167,000 tonnes of PK in FY2024 690,000 tonnes of CPO sold: 94% to IndoAgri refineries, 6% to external parties 7.2M tonnes of FFB per year 33,000 tonnes of crumb and sheet rubber per year 2.2M tonnes of sugar per year 1.7M tonnes of CPO per year >54,000 plasma smallholders 13,583 sugar cane 288,649 nucleus area covering all crops 16,231 rubber 17,627 other crops 91,523 plasma partnership for oil palm and rubber Planted area (hectares) FFB processing capacity Rubber processing capacity Cane crushing capacity CPO processing capacity Partnership 2 R&D centres 15 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
54,271 Workforce Profile 18% female 82% male 95% based in field and processing sites 5% based in head and regional offices 32,703 permanent employees 11,118 short-term employees 10,450 seasonal contract workers By employment type: By gender: By operation: 91% based in Sumatra and Kalimantan 9% based in Java and Sulawesi By region: WORKFORCE PROFILE (GRI 2-7, 2-8) A Legacy of Success: IndoAgri Subsidiary, PT Lonsum, Honoured as Indonesia’s Greatest Living Legend Company 2024 PT Lonsum, a subsidiary of IndoAgri, proudly accepts The Iconomics’ prestigious “Indonesia’s Greatest Living Legend Company 2024” award. This recognition celebrates PT Lonsum’s long history, substantial assets, and robust financial performance, further underscored by its steadfast commitment to sustainable practices. The Iconomics’ assessment highlighted PT Lonsum’s environmentally responsible operations and positive community impact as key factors contributing to its enduring success. This award validates Lonsum’s integrated approach to sustainable business, demonstrating that responsible practices and financial strength are mutually reinforcing, reflecting positively on the entire IndoAgri group. Group Head of Sustainability at PT Lonsum, Muhammad Waras, proudly accepting the prestigious Indonesia Greatest Living Legend Company 2024 award from Iconomics Our Operations in Brazil CMAA crushed 9.3 million tonnes of sugar cane and produced 700,000 tonnes of raw sugar, 368,000 m3 of ethanol, and 400,000 MWh of electricity. Around 2.3 million tonnes of the Brazilian sugar production was Bonsucro-certified, accounting for 46% of the total cane produced by CMAA in 2024. This was a 73% reduction as compared to 2023 due to changes in Bonsucro standards, as sugar cane planted on pasturelands prior to January 2008 is no longer eligible for inclusion. CMAA’s UVT sugar mill and ethanol plant in Brazil Additional employee statistics are provided in the appendix. 16 Sustainability Report 2024 Indofood Agri Resources Ltd. Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
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