Our Sustainability Reports align with the Global Reporting Initiative (GRI) Guidelines – the widely known international best practice framework for this type of company reporting.
We set sustainability goals and targets to improve our performance. We focus on material topics as a way to achieve our long-term goals. Reporting is the last stage of a cycle that begins with Commitment and Planning, and which continues with Action and Assessment for improvement. Reporting communicates in a way that stakeholders expect.
Each report is prepared with due regard to fundamental Report Content Principles (such as materiality and stakeholder inclusiveness) and Report Quality of Information Principles (such as timeliness and comparability).
See below for detail on materiality, impact boundaries, engagement supporting reporting, and Report parameters.
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Our materiality assessment process 2013 – 2017 aligns with reporting principles expected by GRI; it shows our material topics and where the relevant impacts occur in our value chain.
We assess the potential impact on (i) the business and (ii) external stakeholders and the environment.
The foundation assessment of potential risks/opportunities was based on research and a senior management workshop ini 2013. Subsequently, the prioritisation process was informed by other internal meetings, customer engagement, peer reviews, media research, engagement with international NGOs as well as social impact assessments at site level. Notwithstanding our transition to GRI Standards, we account for the Additional Guidance shown on p20 of GRI's Food Processing Sector Disclosure guidance. In this regard, our Report presents our Management Approach and performance relating to sourcing.
Stakeholder engagement through the year provides information for the materiality assessment.
In 2014 and 2015 we revisited and updated the foundation assessment. Our senior management re-validated the issues in 2016 in a process supported by external sustainability consultants who endorsed the decision that the relative importance of material issues is still valid.
All of our key material topics affect both our internal and external stakeholders to varying degrees. The IndoAgri Board is an ‘Interest Group’ with relevance to all material topics.
Some impacts will be in the past, and our work is to identify the modern day risk and mitigate it, for example deforestation. Some impacts will be quantifiably uncertain, but a precautionary approach is adopted to mitigate the risk, for example child labour.
To manage and improve performance under the ten material topics identified, our sustainability Programmes seek to embed sustainability in our operations and our supply chains. For each material topic we have set targets. Management and performance are guided by our sustainability policies and commitments.
relevant to IFAR Palm Oil operations
(impacts can be positive or negative)
(caused, contributed, or directly linked)
(IndoAgri Board plus...)
|A. Deforestation and land management (including peatland, fire control)||Growers in Indonesia: nucleus, plasma, ex-plasma, independent / third party||
||International NGOs & governments, local communities|
|B. Environmental impacts and compliance||Plantations, mills, refineries (IFAR and third parties); IFAR transport, distribution.||
||Communities living in/around IFAR estates, local government and NGOs|
|C. Governance (transparency, integrity, anti-corruption, risk)||All IFAR-owned operations||
||Investors and NGOs|
|D. Land rights including scarce land resources||Growers in Indonesia: nucleus, plasma, ex-plasma, independent / third party||
||Local community; government and NGOs|
|E. Occupational health and safety||IFAR-owned plantations, seed stations, mills, refineries, transport, distribution||
||Employees of all types, local labour organisations and government|
|F. Smallholder engagement and livelihoods||Small-scale growers in Indonesia: nucleus, plasma, ex-plasma, independent / third party||
||Smallholders, NGOs and local government|
|G. Product traceability and sustainable sourcing||Plantations, mills, refineries (IFAR and third parties)||
||Suppliers, customers, consumers, ISPO, accreditors, auditors|
|H. Product quality and safety||Mills, refineries (IFAR and third parties); distribution channels||
||Suppliers and consumers|
|I. Yield maximisation including innovation||Growers in Indonesia: nucleus, plasma, ex-plasma, independent / third party||
||Investors, NGOs and government|
|J. Human rights||Plantations, mills, refineries (IFAR and third parties); IFAR transport, distribution||
||NGOs and government|
[GRI 102-42 to 102-44]
In addition to our Sustainability Report 'Stakeholder Engagement' subsection, further information is provided below.
Our key stakeholder groups are employees, customers, investors, government and civil organisations, and local communities.
We connect, engage and collaborate with them to strengthen our mutual interests and establish common goals.
|Shareholders investor and bankers||Transparency and disclosure of environmental and social performance information||Meetings, surveys||Updates via sustainability report and company presentation||Regular meeting upon request|
|Customers and consumers||Product safety and health||For new customers: surveys, approach and product trials.
For existing customers: regular visit/ meeting, bakers forum, customer gathering, customer support line
|Provide certification and nutrition information on product label.
A mutually beneficial customer relationship
|Monthly regular visit, annual bakers forum|
|CPO Suppliers||Product traceability, price, costs||Surveys, audits, one-to-one meetings||Collaboration on delivering Policy objectives on sustainable and traceable palm oil||Annual socialisation and audit meetings|
|Local Suppliers||Local business opportunities, lack of project management skills||Technical assistance to local businesses on construction of civil projects||Develop local community projects, e.g. mosques||By project|
|Government and Regulators||ISPO certification, local laws and regulation||Public forums and regular meetings||Comply with local and international regulations, taxes and levies||Upon request, invitation|
|Non-Governmental Groups||Biodiversity & rehabilitation, climate change, labour rights, good agricultural practices||RSPO process meetings, other NGO meetings e.g IDH, local multi-stakeholders initiatives||Social impact analysis, collaboration on Policy objectives and FPIC||Upon request|
|Employees||Employee development, working conditions and OHS||Training sessions, dialogue with unions, grievance/whistle-blowing processes||Invest in employee capability development and OHS programmes||Biennial Collective Labour Agreement (CLA) renewal|
|Smallholders (FFB Supplier)||Sustainable agricultural practices, yield, income||Development of platforms and projects on socialisation, plasma assistants||Provide technical support through training||Scheduled project meetings|
|Local Community||Customary rights, FPIC, infrastructure, local enterprise opportunity||Regular feedback and awareness meetings, forums for grievance & resolution, other ad hoc engagements||Contribution on education, medical facilities and infrastructure and donations||Annual community development forum Per request subject to internal management evaluation|
Our Sustainability Report 2018 has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. The report also complies with requirements of the SGX –ST Listing Rules Practice Note 7.6 Sustainability Reporting Guide. IndoAgri has not commissioned any third-party assurance on this report. We welcome your feedback or questions at firstname.lastname@example.org. Previous reports are available online at www.indofoodagri.com.
Please refer to page 55 of Sustainability Report 2018 for the GRI Content Index.
Scope and profile [GRI 102-49]
This report presents our sustainability performance for 2018. The scope of this report covers our most dominant crop, oil palm, which occupies 83% of our total planted area. There is no significant change to the size, structure or ownership of our oil palm operations compared to the previous report. The palm oil sustainability data is captured through our Sustainability Management Information System.
For environmental, health and safety, and responsible sourcing data, the scope of oil palm plantation, mill, and refinery operations covered has expanded. In this report, we include data from our ISPO- or PROPER-certified/ audited plantations and mills (previously only RSPO). These data cover:
ISPO certification is a key tool to help deliver on our Policy goals on deforestation, land rights, peatland, burning, smallholders and human rights.
In 2018, the capacity of our Surabaya edible oil refinery was increased to produce an additional 300,000 tonnes/ annum.
The scope of palm oil GHG data for 2018 includes 11 mills and 30 estates (unchanged from 2017)
The financial and employee data refer to the whole Group (all commodity operations).'
All page references in this section refer to our Sustainability Report 2018.