CLIMATE CHANGE AND GHG EMISSIONS (GRI 3-3) Climate change poses an urgent and escalating threat to ecosystems, communities, and future generations. As a leading agribusiness, we recognise its profound implications for our operations and the sector at large. Rising temperatures are driving severe forest fires and prolonged droughts, while intensified rainfall is causing frequent floods. This jeopardises agricultural stability and increases the vulnerability of dependent communities. To address these risks, we have completed a comprehensive climate vulnerability assessment aligned with the TCFD framework. A summary of identified risks is provided on page 30. Adapting to climate change Our most immediate climate-related challenge is the rising frequency of heavy rainfall and flooding in lowland plantation areas. Floods contaminate water sources, disrupt clean water delivery, and can damage plantation infrastructure and operations. This can delay the collection and transportation of FFB. To mitigate such risks, we rely on forecasts from Indonesia’s Meteorology, Climatology and Geophysics Agency (BMKG) for our planning efforts. We conduct detailed topographic mapping to strengthen flood-prone areas. Preventive measures include upgrading drainage systems, improving road access during wet seasons, and strengthening fire protection in dry periods. transportation of FFB, nitrous oxide from fertilisers, and chemical usage in plantations and mills. Total emissions from mills and estate operations (GHG emission intensity per tonne of palm product) experienced a 1% reduction from 2024 to 2025. This decrease is largely attributed to increased production. To manage methane emissions from POME, we adopted aerated bunker composters, achieving up to an 80% reduction in emissions compared to traditional anaerobic composting methods. We plan to install more aerated bunker composters in other mills to further reduce our emissions. Riparian areas in one of our estates in South Sumatra. GREENHOUSE GAS (GHG) EMISSIONS (GRI 3-3) While developing strategies to adapt to climate change, we equally recognise our responsibility to contribute to mitigation, given agriculture’s significant role in global emissions. Peatlands represent a major source of our emissions footprint, accounting for 83%, due to the location of several estates in peat regions. The majority of these emissions come from naturally occurring low-level methane, not from peat disturbances. Other contributors include methane released from palm oil mill effluent (POME), fuel use in mills, 27 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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