Page 7 - sr_2012.pdf

CEO's statement
As an integrated agribusiness, the sustainability of our operations
is at the core of what we do. I am therefore pleased to present
IndoAgri’s inaugural sustainability report that is based on the
principal of materiality.
We have chosen to adhere to the Sustainability Reporting
Guidelines version 3.1 of the Global Reporting Initiative (GRI).
The GRI framework is recognised and used globally to promote
good corporate governance and transparency. We have submitted
this report to GRI Report Services, who have concluded that this
report fulfils the requirement of Application Level C.
Global challenges such as food security, climate change, nutrition
and sustainability of farmlands have put tremendous pressure on
the agricultural sector to be more proactive in issue resolution and
to be part of the sustainability solution.
The World Economic Forum has developed the New Vision for
Agriculture 20-20-20. The principles are based on a 20% yield
increase, 20% CO2 emission reduction and 20% poverty reduction
every decade. This initiative has been an inspiration for many and
is a chief catalyst in the formation of the Partnership for Indonesia
Sustainable Agriculture (PISAgro) in Indonesia.
To become part of the sustainability solution, IndoAgri is pursuing
a vertically integrated agribusiness model that enables us, through
various sustainability efforts, to create a traceable and sustainable
food value chain “from farm to fork”.
Another important initiative at the global level is the RSPO,
which regulates sustainable management of oil palm and palm
oil processing. The effort has placed the palm oil industry in the
lead of sustainable agriculture. IndoAgri is an active member of
the RSPO. In 2012, 28% of our Crude Palm Oil (CPO) production
has been RSPO-certified. We are committed to have all our current
estates RSPO-certified by 2019.
We adopted the RSPO framework as the blueprint for our
sustainable agricultural practices and invested readily in Research
and Development (R&D), in areas such as improving the yield
of palm oil seeds and applying precision agronomy to manage
the estates. Today, we are one of the world’s top oil palm seed
breeders - enabling greater efficiency and higher yields in the
palm oil industry with our seeds.
Precision agronomy, in combination with advanced Information
Technology (IT) infrastructure and Geographic Information System
(GIS) technology, allows us to narrow yield variance for each
30-hectare block and engineer more specific strategies on fertiliser
recommendation, pest control and disease management. This leads
to maximum yield while maintaining a balanced nutrient input and
output programme for sustainable growth. By increasing yields
per hectare, we are able to address global demands for palm oil
efficiently without compromising sustainable land use.
Besides palm oil, we are taking steps towards sustainable agriculture
for the rest of our crops. We are now a member of the Cocoa
Sustainability Partnership.
We can only be successful by supporting global sustainability
initiatives, developing local partnerships and adopting a transparent
framework of best practices. Towards these ends, we opted to
report our sustainability progress and practices using the GRI
guidelines. We seek to report performance data so that we can
benchmark ourselves against the industry and use this report as
a platform for continued dialogue with our stakeholders.
In 2013, we will continue to invest in RSPO certification. Besides
channelling more resources into R&D and the sustainability teams,
IndoAgri is stepping up on community development programmes
and dialogues with local villagers living around our estates.
I am truly proud to be a part of the sustainability journey. As one of
the largest palm oil producers in Indonesia, IndoAgri has and will
continue to increase yields per hectare in a sustainable manner,
improving the welfare of people living on and around our plantations,
and supporting Indonesia to meet its sustainability targets.
Our sustainability journey is not taken alone. I would like to thank
the Board of Directors for their leadership and guidance, and to
pay special tribute to our 37,201 employees who have worked
hard and rallied behind our sustainability efforts to turn an ideal
into tangible results.
Mark Wakeford
Chief Executive Officer and Executive Director
IndoAgri