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Managing Sustainability Print ThisPrint this page

Sustainability is Integrated into our internal processes and supply chain

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Our strategic approach to sustainability and responsible agribusiness is to establish the material issues, set effective targets and manage the operations according to recognised sustainability standards. Whilst we manage a wide variety of operational matters, we focus our sustainability reporting on 10 key issues that matter most from an internal risk perspective and to our external stakeholders.

What matters most – our materiality assessment

Our materiality assessment process 2013 – 2016 aligns with reporting principles expected by GRI and Accountability; it shows our material aspects 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. Potential risks/opportunities were assessed during a materiality workshop attended by senior management and our Enterprise Risk Management team in June 2013. The prioritisation process was informed by other internal meeting, peer review, engagement with international NGOs as well as social impact assessments at site level. As part of our assessment we reviewed 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 (note, our risk assessment indicates that Genetically Modified Organisms are not a significant area of risk, and animal welfare is not relevant to IndoAgri's operations). Stakeholder engagement through the year provides information for the materiality assessment.

In 2014, we organised another workshop for our management team to review the 2013 materiality assessment and to align it to the GRI G4 Guidelines. It was concluded that the current materiality assessment and ongoing sustainability programmes were relevant and on track. All of our key material issues affect both our internal and external stakeholders.

Senior management and our ERM team re-validated the issues in 2015. Also, senior management discussed high level material issues with investor stakeholders in 2016. This review process was supported by external advice from sustainability consultants. This work endorsed the decision by senior management that the relative importance and emphasis of existing material issues is still valid and correct. All of our key material issues affect both our internal and external stakeholders.

Where material impacts occur

[G4-19, G4-20, G4-21]

To manage and improve performance under the ten material issues identified, our sustainability Programmes seek to embed sustainability in our operations and our supply chains. For each material issue we have set targets. Management and performance are guided by our sustainability policies, principles and commitment.

Key Material Issues Interest Group Geography
A. Carbon management including deforestation Global community including international NGOs and governments International
B. Environmental footprint including PROPER, ISO 14001 Community living around estates, local government and NGOs International
C. Governance including transparency, business integrity and anti-corruption, risk management Investors and NGOs International
D. Land rights including scarce land resources Local community; government and NGOs International
E. Occupational health and safety Local labour organisations and government Indonesia
F. Smallholders including plasma, social conflict resolution Smallholders, NGOs and local government Indonesia
G. Product traceability / Sustainable sourcing including RSPO/ISPO Suppliers and consumers International
H. Product quality and safety Suppliers and consumers International
I. Yield maximisation including innovation Investors, NGOs and government International
J. Human rights NGOs and government International

Engaging with our stakeholders

[G4-24, G4-25, G4-26, G4-27]

In addition to our Sustainability Report 'Stakeholder Engagement' subsection, please see below some further information.

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.

Stakeholders Issues Methods Outcome Frequency
Shareholders investor and bankers Transparency and disclosure of environmental and social performance information Meetings, surveys Updates via sustainability report Regular briefings
Customers and consumers Product safety and health Surveys, regular meetings, customer support line Provide certification and nutrition information on product label Regular meeting
upon request
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 eg 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

Indoagri Sustainability Principles

  • Principle 1
    COMPLIANCE
    1.1 Compliance with local legislation
    1.2 Compliance with RSPO/ISPO/ISO9001 guidelines
    1.3 Compliance with IndoAgri Code of Conduct
  • Principle 2
    Healthy Living
    2.1 Providing a safe work place for all employees
    2.2 Traceable, safe and quality products
  • Principle 3
    Smallholders
    3.1 Rural development through supporting our plasma and third party farmers
  • Principle 4
    ENVIRONMENTAL RESPONSIBILITY & CONSERVATION OF NATURAL RESOURCES & BIODIVERSITY
    4.1 Protection of primary forests, peatland and High Conservation Value (HCV) areas
    4.2 Management: non-hazardous and hazardous waste, and reduce, reuse and recycle concept
    4.3 Reducing our carbon footprint
    4.4 Responsible water management and minimising effluents whilst ensuring safe disposal
  • Principle 5
    RESPECT HUMAN RIGHTS & HAVE RESPONSIBLE CONSIDERATION OF EMPLOYEES & INDIVIDUALS & COMMUNITIES
    5.1 Developing dialogues with our key stakeholders
    5.2 Communities have the right to Free, Prior and Informed Consent
    5.3 Giving back to the community and preserve the culture of indigenous people
    5.4 External disclosure through GRI Guidelines
  • Principle 6
    INNOVATION & CONTINUOUS IMPROVEMENT AFFECTED
    6.1 Following industry best practice and using innovation to contribute to sustainable practices
    6.2 Improving yields
    6.3 Achieve long-term economic and financial viability
    6.4 SOPs in place to support sustainable agriculture practices

Sustainability