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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.
Our materiality assessment process 2013-2014 aligns with reporting principles expected by GRI and Accountability and 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.
[G4-19, G4-20, G4-21]
To manage and improve performance under the 10 material issues identified, we have developed six programmes to embed sustainability within our internal operational processes and across our supply chains. For each material issue we have set a baseline and the possible targets, 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|
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||Transparancy and disclosure of environmental and social performance information||One-to-one meetings, surveys||Issue sustainability report||Regular briefings|
|Customers and consumers||Product safety and health||Surveys, regular one-to-one meetings, customer support line||Provide certification and nutrition information on product label||Regular meeting
|CPO Suppliers||Product traceability||Surveys, audits, one-to-one meetings||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|
|Governments 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||Loss of biodiversity, environmental rehabilitation, climate change and adoption of good agricultural practices||RSPO meetings, one-to-one meetings, local multistakeholders initiatives||Social impact analysis, and FPIC||Upon request|
|Employees||Employee development, working conditions and OHS||Dialogue with trade unions, grievance procedure, whistle- blowing processes||Invest in employee capability development and OHS programmes||Biennial new CLA|
|Sustainable agricultural practices||Development of platforms for cooperation and socialisation||Provide possible technical support in terms of training||Upon request|
|Local Community||Native customary rights||Regular feedback and awareness meetings, stakeholder forums for complaints, grievance resolution, and other ad hoc engagements||Contribution on education, medical facilities and infrastructure and donations||Annual community development Forum
Per request subject to internal management evaluation
|1.1||Compliance with local legislation|
|1.2||Compliance with RSPO/ISPO/ISO9001 guidelines|
|1.3||Compliance with IndoAgri Code of Conduct|
|2.1||Providing a safe work place for all employees|
|2.2||Traceable, safe and quality products|
|3.1||Rural development through supporting our plasma and third party farmers|
|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|
|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|
|6.1||Following industry best practice and using innovation to contribute to sustainable practices|
|6.3||Achieve long-term economic and financial viability|
|6.4||SOPs in place to support sustainable agriculture practices|