Climate Change Data

PT FKS Multi Agro Tbk

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Food security
  • Community welfare
  • Food safety and hygiene
  • Employee engagement
  • Environmental responsibility

Environmental Achievements

  • Reduced CO2 emissions by 36% in 2021 through port handling revitalization
  • Significantly reduced spillage/waste through port handling revitalization and terminal clustering
  • Increased warehouse productivity from 800 tons/day (3 shifts) to 1200 tons/day (1 shift) through efficient operations

Social Achievements

  • Achieved zero accidents in operations
  • More than 90% of employees and their families fully vaccinated against COVID-19
  • Improved employee engagement to 1060 hours/year (310 hours above target)
  • Launched customer appreciation program, Bola Bonanza 2021
  • Commenced construction of Tempe Park, an educational concept park

Governance Achievements

  • Implemented anti-corruption policies and obtained ISO 37001:2016 certification
  • Established a sound system for risk oversight
  • Effective implementation of Good Corporate Governance (GCG)

Climate Goals & Targets

Long-term Goals:
  • Maintain sustainable growth of the Company and its subsidiaries
Medium-term Goals:
  • Continue expansion projects in logistics unit, improve facilities, expand market share, accelerate digitalization projects
Short-term Goals:
  • Increase sales volume by 7.0%-7.5% in 2022

Environmental Challenges

  • Low prices of eggs and chickens impacting independent farmers
  • Fluctuations in feed ingredient prices causing unstable demand
  • Uncertainty in domestic corn harvest and policies on alternative raw materials
  • High logistics costs
  • Competitiveness of Indonesian poultry products
  • COVID-19 pandemic causing supply chain disruptions and uncertainties
Mitigation Strategies
  • Built Integrated Warehouses to improve efficiency and reduce costs
  • Improved risk management to reduce cost of revenue
  • Expanded transportation fleet for port-to-door delivery
  • Implemented strict health protocols and vaccination campaigns
  • Developed automated scheduling system and time monitoring system for efficient warehouse operations
  • Implemented technology-based transportation management system (TMS)

Supply Chain Management

Responsible Procurement
  • Strict supplier selection
  • Supplier code of conduct
  • Environmentally friendly procurement practices
  • Considering welfare of local communities
  • Sourcing sustainability certified soybeans (SSAP)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Options

Certifications: ISO 37001:2016, ISO 9001:2015

UN Sustainable Development Goals

  • Goal 2: Zero Hunger
  • Goal 9: Industry, Innovation and Infrastructure

Company's operations contribute to food security and sustainable agriculture (Goal 2) and building durable infrastructure (Goal 9).

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:6,895,566 kg CO2-eq (Scope 1); 6,472,674 kg CO2-eq (Scope 2)
Scope 1 Emissions:6,895,566 kg CO2-eq
Scope 2 Emissions:6,472,674 kg CO2-eq
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:158.61 TJ
Water Consumption:30,006 m3
Waste Generated:445 metric tons (Non-Hazardous); 33.80 metric tons (Hazardous)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Food Safety and Food Security
  • Healthy, Safe and Comfortable Workplace
  • Environmental Management
  • Community Development

Environmental Achievements

  • Reduced energy consumption by more than 18% at FKS Multi Agro Semarang Branch.
  • Planting of 200 mangrove seedlings in Semarang.
  • Revitalization of ports, increasing loading/unloading speed by 233% and reducing congestion.

Social Achievements

  • Increased agricultural productivity and provided employment opportunities for more than 500 farmers in Jambi through Water Saturated Cultivation.
  • 100% of teachers and students benefited from Higher Thinking Order Skills workshops.
  • Zero workplace fatalities and heavy injuries.

Governance Achievements

  • Conveying the Code of Ethics to 100% of employees.
  • Implementing a whistleblowing policy.
  • Implementing an effective internal audit process.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Global market instability due to global recession and conflicts in Eastern Europe.
  • Irregular arrival of customer trucks, leading to slower loading processes.
Mitigation Strategies
  • Implementing adaptive strategies and sustainable practices (optimizing logistics, upgrading warehouses, building modern infrastructure).
  • Implementing a Delivery Management System (DMS).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Prioritizing suppliers with sustainability certificates.
  • Considering environmental, social, and economic impacts.

Climate-Related Risks & Opportunities

Physical Risks
  • Rising sea levels and storm disasters impacting port infrastructure.
  • Increased risk of damage to stored raw materials due to higher temperatures.
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI 2021 Standards, POJK 51/POJK.03/2017

Certifications: ISO 9001 (one warehouse)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 2 (Zero Hunger)
  • SDG 8 (Decent Work and Economic Growth)

Supporting food security, sustainable agriculture, and providing employment opportunities.

Sustainable Products & Innovation

  • Ready-to-serve tempeh.
  • Soy milk ice cream.
  • Tempeh chips.

Awards & Recognition

  • 48th position in Fortune 100 Indonesia’s Biggest Corporations.
  • PEFINDO rating of 'A'
  • Zero Accident awards for several units.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:12,570 tCO2e/year
Scope 1 Emissions:7,613 tCO2e/year
Scope 2 Emissions:4,957 tCO2e/year
Renewable Energy Share:0.02%
Total Energy Consumption:136,863 GJ/year
Water Consumption:5,773 m3/year
Waste Generated:480.9 tons/year
Carbon Intensity:0.00194 tonCO2eq/ton of product

ESG Focus Areas

  • Food Safety and Food Security
  • Environmental Management
  • Healthy, Safe, and Secure Workplace
  • Community Development

Environmental Achievements

  • Reduced energy consumption by 10.6% (from 153,288 GJ in 2022 to 136,863 GJ in 2023)
  • Reduced water consumption (from 7,885 m3 in 2022 to 5,773 m3 in 2023)
  • Waste reduction (from 478.9 tons in 2022 to 480.9 tons in 2023)
  • Planted 1,500 mangrove seedlings in Maron Beach, Semarang
  • Implemented a Waste Management Program in collaboration with Waste4Change, processing 11,613 kg of waste

Social Achievements

  • Implemented a comprehensive onboarding process for new employees
  • Provided training and development programs for employees, including the Leadership Essentials Acceleration Program (LEAP)
  • Maintained employee wages above the Provincial Minimum Wage
  • Implemented a Performance Appraisal Management System (PMS)
  • Conducted various community development programs such as the Inspirational Teacher Festival, Literacy and Numeracy Olympics, Tempe Park Project, and Tanjung Jabung Timur Project

Governance Achievements

  • Implemented a whistleblowing system (FKS SpeakUp)
  • Obtained ISO 37001:2016 certification for Anti-Bribery Management System
  • Implemented a clear and transparent procedure related to conflicts of interest

Climate Goals & Targets

Environmental Challenges

  • Global economic slowdown impacting sales volume and commodity prices
  • Ensuring product quality and safety
  • Maintaining supply chain resilience
  • Product and service innovation
  • Implementing environmental programs
  • Maintaining a safe and comfortable working environment
  • Implementing community empowerment programs with measurable positive impact
Mitigation Strategies
  • Leveraging business collaborations to attain maximum efficiencies and operational excellence
  • Implementing comprehensive digitalization to integrate operational activities
  • Investing in extending conveyor belt lines at Integrated Warehouses to improve cargodoring performance and minimize food loss
  • Implementing a stringent management system to meet food safety and quality standards
  • Appointing ESG Champions to catalyze the promotion of programs related to the environment
  • Implementing a dynamic risk management system
  • Conducting regular employee training and development programs

Supply Chain Management

Responsible Procurement
  • Prioritizing soybean suppliers with sustainability certificates
  • Encouraging other raw material suppliers to adopt sustainable practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, SEOJK No. 16/SEOJK.04/2021, Sustainable Development Goals (SDGs)

Certifications: ISO 9001:2015 (Quality Management System), ISO 37001:2016 (Anti-Bribery Management System)