2025 SUSTAINABILITY REPORT
CONTENTS 01 CEO STATEMENT 03 2025 AT A GLANCE 04 OUR APPROACH TO SUSTAINABILITY 14 BUSINESS OVERVIEW 18 PROTECTING OUR ENVIRONMENT 37 RESPONSIBLE SOURCING 45 OUR PEOPLE 53 COMMUNITY RELATIONS 60 PRODUCT INTEGRITY 66 APPENDIX ii Sustainability Report 2025 Indofood Agri Resources Ltd.
ABOUT INDOAGRI, OUR VISION, MISSION AND VALUES (GRI 2-1) Indofood Agri Resources Ltd. (IndoAgri) is an agribusiness company listed on the Singapore Exchange (SGX) and headquartered in Singapore. In Indonesia, IndoAgri operates through two subsidiaries listed on the Indonesia Stock Exchange (IDX): PT Salim Ivomas Pratama Tbk (PT SIMP) and PT PP London Sumatra Indonesia Tbk (PT Lonsum). These subsidiaries manage strategically located estates and production facilities, primarily cultivating oil palm, alongside sugar cane, rubber, and other crops. In Brazil, IndoAgri holds 36.21% stakes in both CMAA, which operates three sugar and ethanol mills, and Bussola, which owns agricultural land. Our diverse product portfolio is underpinned by strong research and development (R&D) and seed breeding programs, enabling the adoption of advanced agricultural practices. IndoAgri demonstrates our commitment to quality and responsible production through our award-winning edible oil brands, reflecting excellence in manufacturing and marketing. Across the group, we continuously strive to enhance resource efficiency, improve crop resilience, and reduce environmental impact across our operations. For more information on our business, please refer to the section on Business Overview found on page 14. OUR VISION To be a leading integrated agribusiness and earn global recognition as a world-class agricultural research and seed-breeding company. OUR MISSION To achieve high yields and maintain low production costs, while continually strengthening our workforce, processes, and technology to deliver the highest quality standards. OUR VALUES Discipline forms the foundation of our approach. We act with integrity, respect our stakeholders, and unite in the pursuit of excellence and innovation. AT A GLANCE iii Sustainability Report 2025 Indofood Agri Resources Ltd.
For IndoAgri’s long-term success, it is essential that our agricultural products are traceable and sustainably produced. That requires tracking and verifying every stage of our supply chains – from plantations to processing – to uphold standards and provide accountability. Our approach to sustainable agriculture is built on three interconnected pillars: Sustainable Agriculture & Products Sustainable Communities Responsible Employment & Workplace We prioritise responsible agricultural practices that minimise environmental impact and enhance biodiversity, ensuring strict compliance with applicable laws, regulations, and sustainability certifications. We are committed to building strong relationships with local communities and promoting social responsibility. We strive to respect human rights, enhance social well-being, and support the development of sustainable communities through fair practices and active local engagement. We are dedicated to providing fair and safe working environments for all employees (including contract, temporary, and casual workers) through compliance with local, national, and international labour laws and alignment with recognised human rights standards. OUR POLICY (GRI 2-1) The cornerstone of all our sustainability efforts is our Sustainable Agriculture Policy (Policy), which has been approved and signed by the Board. The Policy’s key commitments to deliver sustainable products are as follows: 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) Available on our website, the Policy applies universally to all our operations, including plasma smallholders and other third-party suppliers from whom we source materials for our factories. Read more online. iv Sustainability Report 2025 Indofood Agri Resources Ltd.
OUR SUSTAINABILITY REPORT (GRI 2-3, 2-6) Rufous-backed Kingfisher (Ceyx erithaca) spotted at Kencana Estate, Rokan Hilir, Riau. A vibrant symbol of wetland biodiversity thriving within the plantation landscape. We are pleased to share our performance and progress against our policy commitments and targets on key material topics for financial year 2025 (FY2025) in IndoAgri’s 14th Sustainability Report. This report was 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 Practice Note 7.6 on Sustainability Reporting. Our adoption of GRI standards and principles reflects our commitment to stakeholder inclusiveness and ensures that the information we provide is accurate, clear, reliable and comparable. We continue to disclose relevant climate-related information aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework (see page 30 for details) and will progressively align to IFRS S2 Climaterelated Disclosures from the International Sustainability Standards Board (ISSB) in line with SGX’s revised timeline for mandatory climate reporting for non-STI constituent listed companies1. Furthermore, this report references the Agricultural Products standard under the Sustainability Accounting Standards Board (SASB) to provide sector-specific guidance on the most relevant sustainability metrics and risks for our stakeholders. This approach reinforces our accountability in managing climate-related risks and opportunities, ensuring IndoAgri remains resilient in a changing environment. To uphold accuracy and reliability, we have engaged an independent third party to assure this report. Details of the assurance scope are provided in the external assurance statement on page vii. For full context, please review this document in conjunction with our Annual Report and website; relevant links to these resources are embedded within this report. We welcome feedback or questions at sustainability@indofoodagri.com. The GRI, TCFD, and SASB Content Indices are collated into a separate document, which is available online along with reports from previous fiscal years. 1 Extended timelines for most climate reporting requirements to support companies - SGX Group v Sustainability Report 2025 Indofood Agri Resources Ltd.
REPORTING SCOPE This report focuses on our primary crops and operations, specifically: Oil Palm, which is our principal crop, accounting for 85% of our total planted area. Rubber, which occupies 5% of our total planted area. There have been no significant changes to the company’s size, structure, or ownership since the previous report. This report encompasses the performance of the entire IndoAgri group for key metrics, including financial, employee, community, and health and safety data. Performance data for responsible sourcing and products is limited to our downstream refinery operations. Environmental data covers the following sites within our palm oil and rubber operations: 5 out of 5 Refineries (all PROPER-certified/audited) 27 out of 27 palm oil mills, all of which are either ISPO or PROPER-certified/audited 63 out of 83 plantations, all of which are ISPO-certified/audited 7 out of 7 Rubber plantations 3 out of 3 Rubber factories The use of drones for plantation land monitoring at Isuy Makmur Estate, West Kutai, East Kalimantan, enabling more efficient and precise field surveillance. vi Sustainability Report 2025 Indofood Agri Resources Ltd.
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. 0426/BD/0053/JK To the Management of Indofood Agri Resources Ltd, We were engaged Indofood Agri Resources Ltd (‘IndoAgri’) to provide assurance in respect to its Sustainability Report 2025 (‘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 2025 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 • Protection of forest and peat land and biodiversity • Water, waste and effluents management • Fire control and haze prevention • Occupational health and safety 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 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. • Examine data samples at depth from their initial aggregated source. 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 14, 2026 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 Sustainability Report 2025 Indofood Agri Resources Ltd.
CEO STATEMENT (GRI 2-22) DEAR STAKEHOLDERS, I am pleased to present IndoAgri’s Sustainability Report for the financial year 2025. This report outlines our progress over the past year and reflects the steps we have taken across our operations to uphold our sustainability commitments and respond to the priorities that are most important to our stakeholders. We continued to uphold our commitments to no deforestation, no peat development, no exploitation and no burning across our operations. During the year, we recorded no primary forest clearance and no degradation of High Conservation Value (HCV) areas. We also updated our biodiversity disclosures in line with revised reporting requirements while advancing several practical conservation efforts. These included establishing a Biodiversity Seed Bank to cultivate native species and initiating a programme to protect Nepenthes pitcher plants by developing suitable micro‑habitats. Fire prevention and response remained a priority. Building on the group‑wide rollout of our mobile hotspot tool in 2024, in 2025 we integrated fire incident reporting into the application to reduce manual reporting and speed up response times. We also constructed 12 additional fire towers and, following the tightening of Indonesia’s plantation fire‑prevention regulations, have implemented the required measures and confirmed full compliance. We also progressed our climate‑related reporting and continue to disclose our climate risks and opportunities in line with TCFD. We are progressively aligning with the additional IFRS S2 requirements in step with the regulatory timeline. Operationally, we recorded a reduction in GHG emission intensity per tonne of palm product, with 98% of fuel used in our palm oil mills originating from renewable sources. At the mill level, energy and water initiatives delivered a 5% reduction in energy intensity and a 4% reduction in water intensity relative to the 2020 baseline. We also began installing on‑site waste‑sorting and temporary storage facilities at worker‑living sites to meet updated waste‑segregation regulations. FFB from our plantation in Sei Rumbia Estate, Labuhanbatu Selatan, North Sumatra. We continued to uphold our commitments to no deforestation, no peat development, no exploitation and no burning across our operations. 01 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
care close to home. We also maintained 19 Rumah Pintar community learning centres, offering early‑learning support, tutoring, and practical skills programmes for children and adults. These facilities complement our day‑care and school support and remain an important touchpoint for health, education, and lifelong learning in the communities around our operations. As we look ahead, I would like to thank all our employees, partners, and stakeholders for their continued support and engagement. This commitment has been central to our progress, and we remain focused on working together to strengthen our sustainability performance and advance the long‑term resilience of our operations. Sincerely, MARK JULIAN WAKEFORD Chief Executive Officer and Executive Director affected by these tragedies. Following the incidents, we carried out full investigations, strengthened the relevant safety measures, and cooperated fully with government audits of our incident records and training procedures. We have supported the families throughout this difficult period, including facilitating dependants’ pensions and relevant compensation. Beyond our sites, we continued community services through Posyandu and Rumah Pintar. In 2025, we supported 167 Posyandu community health posts, helping families access Building on these operational improvements, we continued to test and deploy practical agronomy solutions to strengthen long‑term sustainability performance. Building on these operational improvements, we continued to test and deploy practical agronomy solutions to strengthen long‑term sustainability performance. This included launching an EFB biochar project to improve soil quality and reduce reliance on synthetic fertilisers, and expanding the use of drone sprayers to control bagworm in 5 to 10 year‑old palms, enabling more precise application and improved efficiency. Our support for smallholders remained active. In 2025, we worked with local authorities to provide training and supervision on estate management and harvesting. We also supplied agricultural inputs such as fertiliser and seeds in North Sumatra, supported potato farming and small business opportunities in West Java, and assisted brown sugar producers in East Java. We remain committed to assisting smallholders and independent farmers toward ISPO certification, in alignment with Presidential Regulation No. 16/2025 and the national timeline for mandatory certification. Safety remains central to our operations, and it is with deep regret that we report two work‑related fatalities. We offer our sincere condolences to the families and colleagues 02 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
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 280,975 85% 15% 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 nucleus estates’ production ISPO-certified of nucleus CPO production ISPO-certified 89% 85% 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 community health facilities doctors midwives and nurses ambulances 169 167 53 214 29 day care centres day care centre visitors schools teachers students Rumah Pintar community learning centres Rumah Pintar vistors 132 1,813 120 836 12,937 19 31,781 Workforce representation of our permanent operational employees are registered with a union covered by Company Regulations 63% 37% Energy and water consumption reduction in energy consumption intensity in mills (2020 baseline) increase of energy consumption 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 5% 20% 4% 27% 98% 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 2025 AT A GLANCE 03 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
OUR APPROACH TO SUSTAINABILITY 05 GOVERNANCE AND MANAGEMENT 06 SUSTAINABILITY GOVERNANCE • 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 A barn owl (Tyto alba), a natural predator of rats, used in our estates as part of an integrated, environmentally friendly pest control approach. 04 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
Material Topics Goal/Target Updates for 2025 Responsible Business Conduct (RBC) Zero cases of bribery and corruption No confirmed incidents of bribery and corruption in our operations in 2025. GOVERNANCE AND MANAGEMENT (GRI 2-3, 2-6) Our sustainability efforts are guided by a comprehensive framework of policies, targets, certifications, standards and programs designed to address risks and opportunities tied to our material topics, including (but not limited to) the following areas: • Compliance with ISPO, a mandatory national certification system that ensures all oil palm growers comply with sustainable practices • Adherence to the specifications set out in Indonesia Government’s PROPER environmental standard, which evaluates and rates companies on their environmental performance. • Uphold our commitments to No Deforestation, No Peat, No Exploitation. This means zero deforestation, no peatland development regardless of depth, no exploitation, and a strict no-burning policy. • Support smallholders and safeguard land and human rights, ensuring our operations benefit local communities. To drive implementation, we engage both internal and external stakeholders, aligning our partners with these standards and reinforcing the critical importance of their buy-in and participation. We apply a systematic approach to data tracking through our SAP enterprise resource planning system, enabling us to monitor our sustainability performance and progress against defined targets. Our management approach is rigorously assessed through internal and external audits, trend analysis, and stakeholder feedback. Our routine audits and monitoring processes follow recognised frameworks and standards, including ISPO, ISO 14001 (Environmental Management Systems), ISO 45001 (Occupational Health 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 SUSTAINABILITY MANAGEMENT and Safety), and ISO 9001 (Quality Management). This ensures a thorough review of our operations and environmental controls to comply with these standards and relevant government regulations. Anti-Bribery sign installed at Sungai Bangko Mills, Rokan Hilir, Riau, reinforcing the company’s commitment to integrity and good governance. 05 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
SUSTAINABILITY GOVERNANCE (GRI 2-9, 2-12, 2-14) The Board of Directors holds ultimate responsibility for our sustainability governance, including overseeing climaterelated risk management. Sustainability and climate considerations are embedded into our business strategy to ensure this is central to decision-making. The Board reviews and approves the annual sustainability report, validates material topics, and monitors ESG impacts across the Group. The Sustainability Think Tank (STT) provides updates at the quarterly Board meetings on our sustainability performance, recent developments and actions taken. This includes updates on climate-related risks, opportunities and progress against targets. The committee is responsible for reviewing our material topics each year and makes recommendations to the Board to ensure our sustainability reporting scope remains relevant. Chaired by our CEO, the STT comprises representatives from each of our business units, including Executive Directors, Chief Operating Officers, Enterprise Risk Management (ERM), R&D, and sustainability officers. Information shared at these meetings guides the Board in strategic decision-making. The STT is responsible for: Implementing climate change strategies within its delegated authority and the Group’s strategy, policies, targets, and goals concerning climate issues, health and safety, and community matters Monitoring and assuming accountability for various key metrics, including those tied to climate performance Assisting the Board in overseeing climate-related performance, including monitoring, management and identifying risks Reviewing relevant frameworks for identifying, managing and reporting climate risks Recommending climate-related key performance metrics for evaluating the performance of the CEO and other Directors We apply the precautionary principle while managing our material ESG topics to avoid and prevent negative impacts on the environment, economy and communities in which we operate. This includes any potential impacts on human rights. Where necessary, significant sustainability risks and related concerns are escalated on a quarterly basis to the Audit and Risk Management Committee (AC & RMC). This body works together with the ERM team to help the Board monitor and review emerging and priority risks, including climate-related issues, risk management strategies and internal controls. To ensure accountability, executive compensation is aligned with the achievement of specific sustainability performance indicators that are tailored to drive sustainable practices within each executive’s area of influence. Whistleblowing Policy and Grievance Mechanism (GRI 2-16, 2-25, 2-26, 3-3, 205-1, 205-2) We maintain a strong commitment against all forms of corruption, an expectation that applies equally to our own operations and throughout our supply chain. Every new employee is required to attend our mandatory induction training that covers our Code of Conduct, which explicitly prohibits bribery, inducements, and any form of corrupt practice. Existing employees are also required to complete an annual anti-corruption training, which is delivered through our online platform to ensure employees remain familiar with our policies. IndoAgri maintains a whistle-blowing policy and system with clear channels for employees and interested parties to report any suspected misconduct, including fraud, corruption, and unethical practices. Our protocol guarantees confidentiality and independent analysis and review by the Internal Audit team. It also protects employees from retaliation when raising concerns. Our whistleblowing procedures are available in Indonesia’s national language to improve accessibility, and the policy is circulated across the organisation every six months to maintain awareness. Further details are provided in our Annual Report. We ensure all relevant stakeholders, internal or external, have access to our grievance process via dedicated channels. Employees are informed of the internal grievance process through regular email and morning briefings. For our external stakeholders, the complaints procedure is shared with village leaders and local communities. The effectiveness of the mechanisms is routinely verified through periodic evaluations conducted by our internal audit teams. All whistle-blowing and grievance reports submitted to company representatives are channelled for review and analysis by the Internal Audit Division and other relevant departments. Detailed reports are shared with the Board quarterly, ensuring they stay informed and engaged in resolving any issues. In 2025, the company received five whistle-blowing reports. Four of these reports were fully investigated, with one case relating to misconduct while the other three reports were closed as unproven cases. The remaining one report is still under investigation. 06 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
Risk Management, Business Continuity and Supply Chain Resilience We work in close partnership with our suppliers to proactively anticipate and mitigate potential supply chain disruptions. 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 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 Complaints related to Social and Environmental Matters Company Representatives (Unit Manager, Head Administration, Head Assistant) Submission of Written Complaints + Supporting documents/proof (if any) to: This strategic approach includes the close monitoring of government regulations and other restrictions to minimise interruptions in product delivery to our customers. Additionally, we ensure continuous product availability by maintaining a healthy inventory on e-commerce platforms. Our risk management approach is guided by a robust framework, which our ERM team is responsible for maintaining. Strong governance and clear controls enable proactive risk identification, assessment, and mitigation. Through crossfunctional collaboration with risk owners, managers, and internal audit, the ERM team ensures quarterly risk assessments are conducted, and control measures are evaluated for overall effectiveness. Management recognises corruption as a potential risk that could impact the business. In response to this, the company has implemented several robust mitigating controls. A core component of this effort is the regular communication of our Code of Conduct to all employees, which encompasses two essential policies: Company Business Ethics and Employee Working Ethics. Violations of these policies constitute a breach of the employment contract and may lead to disciplinary action. We also empower employees to report any witnessed or suspected instances of bribery through our established whistleblowing channels. We extend these anti-corruption standards and commitments to our third-party vendors and suppliers and conduct due diligence to ensure their compliance. The AC & RMC facilitates risk review by meeting quarterly with the ERM team and presenting the findings, including risk profiles and mitigation strategies, directly to the Board. To maintain resilience, business continuity plans are regularly updated to reflect global developments, particularly in strengthening strategies for climate-related risks and preparing for future pandemics. Further details on programs, certifications, management systems, R&D, governance, and stakeholder engagement are available online. 07 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
CPO tank filling operations at Isuy Makmur Mill, West Kutai, East Kalimantan, as part of the palm oil production process. MATERIAL TOPICS AND MANAGEMENT (GRI 3-1, 3-2) Our sustainability strategy is directly guided by our material priorities, which are identified, prioritised, and validated through a comprehensive materiality assessment exercise conducted in 2024. This process was supported by an independent consultant to ensure rigor and objectivity. The exercise involved a three-stage methodology. The foundational first stage involved extensive desktop research against industry-specific standards and peer benchmarking. This analysis allowed us to not only confirm existing priorities but also to pinpoint potential emerging issues and ensure the topics remained fully aligned with our unique business context and overall sustainability strategy. Following this, stakeholder engagement and review were conducted through targeted interviews to gather feedback. Finally, the STT reviewed and validated the resulting 15 topics before presenting them to the Board for final validation2. This ongoing oversight is maintained as the STT monitors our material topics and the Board conducts an annual review of these key issues, ensuring their continued relevance and alignment with both our business objectives and stakeholder expectations. We intend to regularly reassess our material issues to ensure they accurately reflect our evolving business strategy and the dynamic expectations of our stakeholders. 2 In the 2024 Materiality Assessment exercise, we have classified “Energy Management” as a separate material topic, which was previously included under “Climate Change and GHG Emissions”, reflecting our strategic focus on energy transition and investment in renewable energy technologies. 08 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
Implemented through six distinct, policy-aligned Sustainability Programs, our strategy drives action across our 15 material topics and supports contributions toward the 16 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 • 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 • 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 • 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 • 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 • Yield Resilience and Innovation • Human, Child and Labour Rights Details on our Programmes can be found online. A 09 Indofood Agri Resources Ltd. Sustainability Report 2025 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 Policy articulates our dedication to environmental conservation. This document, endorsed by the Board, sets the strategic objective for all our factories to achieve the ISO 14001 environmental management standard. We carefully and responsibly manage our interactions with nature and the environment by optimising resource consumption to reduce our overall environmental impact. This approach includes regularly assessing risks and conserving areas of HCV and HCS to protect forests, peatlands, and biodiversity. We provide accountability and transparency to our stakeholders concerning the environmental performance of our agricultural practices through our annual sustainability reports. This commitment is supported by our submission of monthly online reports detailing our environmental impacts to Indonesia’s Ministry of Environment (KLH) and Indonesia’s Ministry of Forestry (KemenHut) to ensure regulatory compliance and supply site-specific data, thereby contributing to national environmental reporting. We recognise that forest fires and haze events are an evident threat within our operations, posing severe consequences for local and global ecosystems and communities. We take a proactive approach to fire and haze prevention by rigorously monitoring hotspots and actively engaging stakeholders to implement comprehensive fire prevention initiatives across our land concessions. We manage resources responsibly by complying with Indonesian water regulations and repurposing 100% of milling waste into organic fertiliser and renewable boiler fuel. A group of Proboscis Monkeys (Nasalis larvatus), a protected species, observed around the Lupak Dalam Estate area, Kapuas Regency, Central Kalimantan. 10 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
We continually innovate to reduce dependency on synthetic chemicals in fertilisers and pesticides in oil palm cultivation and replace them with natural, eco-friendly alternatives. Effective environmental protection requires collaboration across our entire value chain. Therefore, we mandate all suppliers adhere to the sustainability standards outlined in our Policy and utilise our ERM framework and whistleblowing mechanisms to ensure compliance and mitigate risks. This applies to all major suppliers, commodity providers, and smallholders. Beyond adhering to our baseline standards, managing the increasing complexity and severity of the climate crisis is also a key priority given its significant impact on our plantation ecosystems, operating communities, and the entire agribusiness value chain. We have conducted a comprehensive climate risk assessment, which aligns with the framework established by the TCFD (further details on page 30). Recognising our exposure to climate risks such as water scarcity and unpredictable weather patterns, we are actively implementing mitigation and adaptation measures, particularly focusing on increasing renewable energy use, enhancing energy efficiency, and reducing GHG emissions. Responsible Sourcing (GRI 3-3) Our commercial success depends on the trust consumers have in our products. Customers value clear accountability and ethical sourcing across our supply chain, including clear visibility into the origins of our raw materials. We promote best practices among our suppliers by urging them to maintain transparency throughout their own supply chains and to operate responsibly. Additionally, we conduct regular supplier assessments and audits to ensure their compliance with established standards. Our palm oil production follows a standard “nucleus–plasma” model. To ensure the traceability of every tonne of palm oil, we document the following: Name, parent company, address GeoCoordinates of plantation3 and mill Nucleus or plasma Koperasi Unit Desa (KUD)/group farmers profile and data Refinery dispatch number Certification status Compliance with third-party sustainability certifications is critical to implementing best practices and assuring our stakeholders on the integrity of our sourcing practices. Our policies and commitments are underpinned by the ISPO standards, mandated by the Indonesian Government. We are committing to achieve 100% ISPO certification, in alignment with the Government Regulations. Smallholders account for over 40% of Indonesia’s oil palm cultivation. Recognising their crucial role, we provide training and capacity-building initiatives to improve their yields, enhance quality, and help them achieve ISPO certification. To reduce the need for land conversion while achieving long-term profitability, we focus our R&D efforts on enhancing the yield and quality of our seeds and advancing crop management practices. Consequently, these initiatives strengthen crop resilience, including the development of varieties resistant to extreme weather and climate change. Field officers recording FFB harvest data at Kencana Estate, Rokan Hilir, Riau. 3 This includes batch barcodes for FFBs from our South Sumatra plasma estates. 11 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
People (GRI 3-3) Employee welfare is central to our success. We uphold workers’ rights in line with Indonesian law, the UN Universal Declaration of Human Rights, and International Labour Organization’s (ILO) conventions ratified by Indonesia. Our Policy and Labour Policy commit to fair wages, safe working conditions, and equal opportunities, while enforcing strict measures to prevent forced and child labour. All IndoAgri employees earn above regional minimum wages. This factors in sector variations, living costs in each province, and any applicable collective labour agreements. All permanent plantation employees who are not officebased receive housing, healthcare, and education benefits for their families. We also respect the right to collective bargaining and support union membership. The safety and security of our employees is a top priority. We ensure that every site operates under SMK3, which is Indonesia’s occupational health and safety management standard. We also provide annual refresher training, daily safety briefings, and strict compliance protocols to minimise health risks and accidents. Our training and development programs foster professional growth, helping retain talent and attract new employees. By investing in skills and career advancement, we strengthen job satisfaction and position ourselves competitively in the labour market. Community Relations (GRI 3-3) As a leading palm oil company, we recognise our responsibility to create positive impacts for local communities where we operate. We uphold community rights, including the FPIC rights of indigenous peoples affected by our activities and work proactively to address stakeholder needs. Our engagement with the community is guided by the relevant practices established by Indonesian law, the UN Universal Declaration of Human Rights, and ILO conventions ratified by Indonesia. This includes supporting local development through partnerships with government programs such as our Work and Estate Living Programme and by providing access to essential services like healthcare and education. Our plantation staff at Pahu Makmur Estate, West Kutai, East Kalimantan. The handover of pineapple seedlings to residents of Bourtrem Jaya Hamlet, Bangko Lestari Village, Bangko Pusako Sub-district, Rokan Hilir Regency, Riau. 12 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
Quality control inspection conducted at the laboratory of Priok Refinery, Jakarta. Product Integrity (GRI 3-3) Product quality and safety are critical to our success. As our palm oil is incorporated into both edible and non-edible products, we maintain strict standards through food safety management systems and quality assurance protocols at all refineries, as outlined in our Quality Policy and Policy. Our commitment is reinforced through certifications in local and international standards across our five refineries, including the Indonesia National Standard (SNI) and ISO 9001/FSSC 22000. In 2025, we carried out our regular internal audit training for all five refineries. No significant issues were raised during the ISO 9001 audits. We prioritise providing full product traceability to our customers and ensuring compliance with regulations on ingredient and nutritional information. We adhere to all regulatory requirements for food safety, food quality and nutrition, consumer protection, labeling and advertising. All CPO is traceable to its source mill through a batch coding system. Additionally, our products and refineries hold Halal certifications from recognised bodies, including LPPOM MUI, The Assessment Institute for Foods, Drugs, and Cosmetics, and the Indonesian Council of Ulama. 13 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
BUSINESS OVERVIEW INTRODUCTION IndoAgri operates as a diversified, vertically integrated agribusiness spanning the entire value chain. Our operations stretch from plantation management and crop production to processing, refining, branding, and marketing of edible oil products. Our processing facilities produce palm oil, rubber, sugar, cocoa, and tea. Our Indonesian oil palm estates are mainly in rural Sumatra and Kalimantan, while refineries are located in major cities such as Jakarta, Medan, Surabaya and Bitung. We have plantation R&D centres at Sumatra Bioscience (SumBio) in Bah Lias, North Sumatra, and PT SAIN in Pekanbaru, Riau. These focus on improving yield, crop resilience, pest and disease control, and estate management practices. They carefully select oil palm varieties from Southeast Asia and Africa to develop high-yield, non-GMO seeds. Additionally, we have R&D centres for sugarcane and edible oils and fats (EOF) in South Sumatra and Jakarta, respectively. In the Indonesian market, our cooking oils are sold under leading brands such as Bimoli, Bimoli Spesial, and Happy. Consumer margarines are marketed as Amanda, Palmia, and Royal Palmia, Industrial counterparts of these products are branded Amanda, Delima, Malinda, Palmia, Royal Palmia and Simas. Loading FFB onto a transportation vehicle at Kencana Estate, Rokan Hilir, Riau. 14 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
At our R&D Centres, we engineer more efficient, resilient seeds and planting materials, as well as other R&D works. Our EOF products are used by consumers for daily living and by customers as input for their products. R&D CENTRES PLANTATIONS MILLS REFINERIES CUSTOMERS & CONSUMERS >90% of EOF products serve domestic consumer 5 refineries In nucleus and smallholders’ plantations, we grow oil palms, sugar cane, rubber, cocoa and tea in a responsible manner. At our mills, we process FFB into CPO and CPKO, 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. 237,437 oil palm 27 palm oil mills 5 (3 crumb and 2 sheet) rubber processing facilities 2 sugar cane mills 3.5M tonnes of FFB from our nucleus estates, plasma, and third parties milled into 733,000 tonnes of CPO and 166,000 tonnes of PK in FY2025 724,000 tonnes of CPO sold: 82% to IndoAgri refineries, 18% 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 1.9M tonnes of CPO per year >54,000 plasma smallholders 13,719 sugar cane 280,975 nucleus area covering all crops 16,203 rubber 13,616 other crops 91,352 plasma partnership for oil palm and rubber Planted area (hectares) Processing capacity Rubber processing capacity Cane crushing capacity Processing capacity Partnership 4 R&D centres OUR OPERATIONS IN INDONESIA (GRI 2-6) All our consumer cooking oil brands are fortified with Vitamin A 15 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
55,804 WORKFORCE 19% female 81% male 95% based in field and processing sites 5% based in head and regional offices 32,941 permanent employees 12,802 short-term employees 10,061 seasonal contract workers By employment type: By gender: By operation: 90% based in Sumatra and Kalimantan 10% based in Java and Sulawesi By region: WORKFORCE PROFILE (GRI 2-7, 2-8) Additional employee statistics are provided in the appendix. PT Lonsum was honoured with the Katadata ESG Index Award for the third consecutive time, recognising the company’s sustained commitment to initiatives that generate positive environmental outcomes and support resilient, sustainable business systems. The award was presented at the Sustainability Action for the Future Economy (SAFE) 2025 appreciation night, held on 10 September 2025 at Hotel Kempinski, Jakarta. The assessment is based on the Katadata ESG Index, introduced in 2022 and covers eight industry Group Head of Sustainability at PT Lonsum, Muhammad Waras, proudly accepting KataData ESG Award for the 3rd time. sectors. A gender pillar was added to the index in 2025, further broadening its scope. For PT Lonsum and the broader IndoAgri Group, this achievement underscores a long-term commitment to integrating ESG principles into core business strategies and operational practices. The award also reinforces IndoAgri Group’s ongoing efforts to drive responsible, sustainable, and inclusive practices throughout our value chain. IndoAgri Subsidiary, PT Lonsum, Secures Third Katadata ESG Index Award for ESG Excellence 16 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
Our Operations in Brazil In 2025, CMAA processed 8.3 million tonnes of sugar cane, yielding 682,000 tonnes of raw sugar, 266,000 m3 of ethanol, and 378,000 MWh of electricity. Notably, 78% (3.7 million tonnes) of the total cane processed achieved Bonsucro CMAA’s UVT sugar mill and ethanol plant in Brazil. certification. The certified output was 60% higher than in 2024 arising from an integrated technical effort between the Agriculture and Environment teams, leveraging a regulatory update that allowed the inclusion of areas previously classified as degraded pastureland prior to conversion to sugarcane. 17 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
investor.indofoodagri.comRkJQdWJsaXNoZXIy NTkwNzg=