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
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